The effect of supply chain digitalization and supply chain risk management on Malaysian halal MSMEs' performance

Abstract

This study aims to examine the impact of supply chain digitalization (SCD) and supply chain risk management (SCRM) on the performance of micro, small, and medium enterprises (MSMEs) involved in Halal industry. Questionnaires consisting of four parts are developed based on previous studies and items are rated using 5-point Likert scale. Overall, 97 responses are collected through survey among MSMEs in Malaysia using convenience sampling technique. Multiple regression analysis is utilized to test the hypotheses. The findings reveal that 80.7% of the variance in firm performance could be explained by SCD and SCRM. In addition, SCD and SCRM have significant positive effect on firm performance at the significance level of 0.05. The findings imply that MSMEs could focus on introducing and expanding digitalization adoption in their business. Moreover, they should apply risk management to anticipate and prepare mitigations plan for business survival. This study is one of the first attempt to investigate the effect of SCD, SCRM and firm performance in the context of Halal industry.