International Journal of Social Science Research (IJSSR) eISSN: 2710-6276 | Vol. 5 No. 1 [March 2023]
Journal website: http://myjms.mohe.gov.my/index.php/ijssr
ROLE OF TRUST AND RELATIONSHIP ENHANCE RETAIL HALAL SUPPLY CHAIN PRACTICES AND CUSTOMERS’ PERCEPTION OF HALAL COMPLIANCE
Anizah Zainuddin1*, Sarah Irdina Ridzwan2 and Sarah Batrisyia Ridzwan3
1 2 Faculty of Business and Management, Universiti Teknologi MARA Kampus Puncak Alam, Kuala Selangor, MALAYSIA
3 Faculty of Dentistry, Universiti Kebangsaan Malaysia, Campus Kuala Lumpur, Kuala Lumpur, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 18 January 2023 Revised date : 18 February 2023 Accepted date : 28 February 2023 Published date : 7 March 2023 To cite this document:
Zainuddin, A., Ridzwan, S. I., &
Ridzwan, S. B. (2023).ROLE OF TRUST AND RELATIONSHIP ENHANCE RETAIL HALAL SUPPLY CHAIN PRACTICES AND CUSTOMERS’ PERCEPTION OF HALAL COMPLIANCE.
International Journal of Social Science Research, 5(1), 122-135.
Abstract: An assessment of the role of trust on the relationship between retail halal supply chain practices and perceptions of halal compliance, is important to designate a store as truly dedicated halal store. As such, this study evaluates the role of trust involving the store management and customer. In this study, trust is evaluated based on the emotion element. In the context of this study, it is a feeling that accord success for a halal grocery store. It is critical that trust is shown by both the store management and the customer. This is because the success of a dedicated halal grocery store depends on the relationship and trust shown by both the parties, namely store management and customers. This is not easy to achieve due to the following complications.
When the retail halal supply chain practices are difficult to monitor over processes that are difficult to evaluate and certify, customers have to rely on other elements as a guide for their purchases. For the purpose of this study, structured questionnaires were distributed to 489 dedicated halal grocery store customers in selected areas. The sample was extracted by using purposive sampling technique. The variables examined included trust, retail halal control points, and perceptions of halal compliance. Using a five -point Likert scale, the results revealed that the practice of halal control points and perceptions of halal compliance can be influenced by customer trust. This result can be applied to all types of stores, not limited to halal dedicated grocery stores alone. However, most importantly the result has enhanced our understanding of how retail halal supply
1. Introduction
Due to today’s retail businesses facing big challenges from the external environment, such condition requires prompt actions from within the organization. These include attitude change, improvisation, and anticipatory responses. All these should be the result of a faster cycle of knowledge creation. As profitability is the bottom line of businesses, customers must be their focus. Hence, creating customer value and improving customer service management must be the core business. Customers want value for the money they spent, say, holidaying in a hotel.
They demand good view from the hotel, the unit is on the lower floors and the facilities in the room are in tip top condition. So, this means, the hotel guests want more than a room. Above all, customers want to be treated well. This means that customers, whatever their needs and wants, must not be treated superficially. In other words, retail managers must know their customers closely. As such, forward-thinking managers are seriously concerned with how can knowledge be made to move freely, how can it be controlled and managed, along with technology (Riaz & Chaudry, 2004). When it comes to knowledge about product awareness, consumer attitude, organization efficiency and problem-solving capabilities, there are sure to be issues that retail managers need to monitor thoroughly (Noordin et al., 2014). For example, the retail supply chainis dependent on knowledge that come from diverse areas such as planning, manufacturing, warehousing, and distribution (Hafie & Othman, 2006). Obviously, there are issues in each of the above areas. In recent years, for example, the function of retail halal supply chain towards retail grocery operations in the retail sector has been suspected to contain issues (Zainuddin et al, 2022, 2021, Zainuddin, A. & S. M. Shariff, 2016). This concern has prompted the conduct of this study which is to examine the role of trust on the relationship between retail halal supply chain practises and halal compliance. On the bright side, this study contributes to widen the retail halal supply chain research involving Islamic countries. Halal compliance by retail halal supply chain is important during the actual purchase of products and services offered by retailers. At the end of the day, this study makes two specific contributions to the current knowledge. First, this study will reveal the effects of retail halal supply chain practises on the activity of influencing customers’ perceptions towards halal compliance, and secondly to determine the role of trust on the relationship between retail halal supply chain practices and perceptions of halal compliance.
2. Interrelations between Trust, Retail Halal Supply Chains Practices and Perceptions of Halal Compliance
Trust is of central importance in a relationship (Wilson, 1995) as it involves one person’s expectations of another to behave in a certain way (Deutsch, 1958; Schurr and Ozanne, 1985).
Additionally, Moorman et al. (1993) defined trust as the willingness to rely on an exchange partner with whom one has the confidence. In the context of marketing literature, Orth and Green, (2009) and Moorman et al., (1993) are consistent on stating that trust is a critical variable in a relationship. Next, Morgan & Hunt (1994) in their business-related literature chain practices can influence the perceptions of halal compliance by customers, ending with a win-win situation by both the store management and customers.
Keywords: trust, retail halal supply chain, practice, halal compliance, dedicated halal grocery store.
believed that the concept of trust varies widely depending on the domain of a specific study.
Additionally, they stated that the exchange party while fulfilling its obligations at the same time feel motivated to derive mutually beneficial gains and prevent hurting the relationship.
Trust is actually an antecedent of stable and collaborative relationship in a business environment. It is considered an important element of consumer perception towards brands and companies (Aaker, 1997). In this relation, Reichhled & Schefter (2000) explained that to gain loyalty, organizations must first gain their customer’s trust. Moreover, researchers have established that trust is essential for building and maintaining long-term relationships (Rousseau et al., 1998; Singh & Sirdeshmukh, 2000). Additionally, Grabner-Kraeuter (2002) and Yousafzai et al., (2003) specified that in the case of business-to-consumer services, lack of trust is the prime reason for not buying. This occurs when the information provided by the retailer is doubtful for reasons of inaccurate or incomplete. This situation causes doubts in the consumer’s mind that the retailer is engaging in harmful opportunistic behaviours.
Subsequently, this will affect their trust on the retailer (Lio et al., 2006; McKnight et al., 1998).
Hence, Grabner-Kraeuter (2002) and Yoon (2002) defined trust as an essential factor in initiating and developing any business exchanges and relationships.
Retail Halal Supply Chain needs to involve a process as required by the Quran, that is, one that is permitted, allowed, lawful or legal in dealing. Its antonym is haram (forbidden, unlawful or illegal). These terms are commonly used for food products, meat products, cosmetics, personal care products, pharmaceuticals, food ingredients, and food contact materials (Department of Standards Malaysia, 2010). Some things are clearly halal or haram, while some others are not clear as to haram or halal (Sariwati & Ahmad, 2015). As such, further information is needed to categorise them as halal or haram. Such items are often referred to as mashbooh, which means doubtful or questionable. Generally, in Islam, every food is considered halal unless it is specifically prohibited in the Qur’an or the Hadith. Meanwhile, halal foods are those that are free from any substances that Muslims are prohibited from consuming. According to the Islamic law (or Shariah), those which are processed, made, produced, manufactured and/or stored using utensils, equipment and/or machinery are safe to consume provided they have been cleansed according to the Islamic law (Zulfakar et al., 2014). Accordingly, to ensure that all retail chain processes are in accordance with halal practice guidelines, retailers must comply with the process (HRSCP) elements, such as inputs, processes, controls and outputs as depicted in Table 1. This has been recommended by the Department of Standards Malaysia (2010), which is the halal assurance pipeline (retailing).
Table 1: Process
Process Definition
Inputs Inputs for practices are categorized as man (workers, people), machines (equipment, machines and appliances), materials (raw materials, inventories), methods (procedures), management (employers and staff), management information system (operating system and ICT), money (funding and financing), and management of environment and technology.
Processes Retail halal supply chain processes encompass all inbound and outbound transportation services, including containers and equipment’s (modes of transportation; placement, stacking and storage conditions); dispatch, receiving, handling and distribution activities with clear process flow diagrams for tracking and traceability purposes in line with shariah compliance.
Controls The shariah -based controls are to ensure shariah compliance as in the Islamic laws. The technical controls are to ensure integrity in terms of the technical aspects of managing the retail logistics processes and activities.
Outputs The halal outputs in the retail supply chain and logistics services are rest assured of shariah compliance when the halal inputs, halal processes and halal controls are in-place. Documented evidence and demonstrated compliance with shariah-based work practices required upon the management and workers in the organization.
*Adopted from Department of Standards Malaysia (2010). MS 2400-3:2010 (P): Halal Assurance Pipeline – Part 3: Management System Requirements for Retailing, Malaysia
In the context of Malaysian Halal food operations, past studies have focused on different issues which derive various arguments. However, none of them are related to Halalan-Toyyiban retail supply chain and customer service. Noordin et al. (2009) and Shafie and Othman (2006) in particular, highlighted the lack of assistance and collaboration among authorities, and conflict among authorities (governing bodies and state government), as well as slow certification processes, that is, inefficiency in the Halal certification process. Next, Talib et al. (2008) revealed that processing and handling as well as insecurity about halal food quality, have been the many types of obstacles faced by retail customers. Ballou (2007), for example, explained logo authenticity is vital for food status and handling. Abdul et al. (2009) revealed that food quality trust and confidence, shariah compliance warehouses, shariah compliance transportation, and shariah compliance equipment and service have become major consumer interests. It appears that none of the above studies has connection with the effects of halal supply chain practices, perceptions of halal compliance, and the role of trust. This could probably be due to difficulties on obtaining data that deals with the above stated issues.
Studies that concern the perception of halal compliance are rare. Most studies involving halal usually concentrate on consumer perception on say, halal products, halal food, knowledge, religion, image, and intention to visit the store. The findings that came from those studies mostly showed that halal perception is usually influenced by attitude, behavior control, subjective and halal norms (Zainuddin et al, 2022, 2021; Norazah Mohd Suki & Brother Sulaiman Abang Salleh 2015; Farah Raihana Ismail & Kauthar Nasiruddin, 2014; Abdul Aziz, Y. and Chok, N.V., 2013; Ahmad Azrin, A. 2011). The above beliefs led us into hypothesizing the following:
H1: Retail halal supply chain practices has significant effect on perceptions of halal compliance.
H2: Retail halal supply chain practices has significant effect on trust.
H3: Trust has a significant effect on perceptions of halal compliance.
H4: Trust mediates the relationship between retail halal supply chain practices and perceptions of halal compliance.
3. Methodology and Findings
This study being correlational in nature, was conducted using cross-sectional analysis or transversal study. The population of interest to researcher comprises 500 retail shoppers who reside in three major cities in the Klang Valley. The sampling frame is not available; hence the non- probability sampling, that is, purposive sampling was utilised to extract the sample from the population. A total of 489 respondents participated in the study which represented 97.8%
of the response rate. The instrument used was the survey questionnaire. The items were identified from the focus group which was conducted prior to the present study. The items were based on the conceptualization of the “Department of Standards Malaysia (2010), MS 2400- 3:2010 (P): Halal Assurance Pipeline – Part 3: Management System Requirements for Retailing, Malaysia”.
Of the questionnaire, the retail halal supply chain practices contained 19 items which measured inputs (6 items), processes (6 items), controls (4 items) and outputs (3 items). The Cronbach’s alpha measure was highly reliable at 0.90. Next, the perceptions of halal compliance variable were measured by using the principles of expectancy disconfirmation theory. The scale contained 15 items which assessed the overall consumer feelings in relation to halal compliance, at the selected dedicated halal store. The Cronbach’s alpha of the measurement was also highly reliable at 0.94. The study employed the five-point Likert scale which gauged the responses. Next, data analysis revealed that 489 responses were equal in terms of gender, male and female respondents (Table 2).
Table 2: Demographic Profile
Characteristics N %
Gender
Male 240 49.1
Female 249 50.9
Race
Malay 225 46.0
Chinese 166 33.9
Indian 98 20.1
Age
Below 25 years 62 12.7
26 to 35 years 122 25.0
36 to 45 years 185 37.8
46 to 55 years 56 and above
112 8
22.9 1.6 Marital Status
Married 314 64.2
Single 175 35.8
Academic Qualification
Diploma 124 25.4
Advanced Diploma / Bachelor’s Degree
210 42.9
Postgraduate / Professional Qualification
155 31.7
Occupation
Government Employee 159 32.5
Private Employee 224 45.8
Self-employed 106 21.7
Monthly income
Under RM3,000 54 11.0
RM3,001 to RM7,000 180 36.8
RM7,001 to RM11,000 171 35.0
RM11,001 and above 84 17.2
Visit Supermarket
About twice a week 291 59.5
About once a month 198 40.5
3.1 Factor Analysis
In order to identify the underlying structure or dimensions in the variables used in this study, the principal component factor analyses with varimax rotation were employed. This was because factor analysis is capable of distinguishing whether a common factor or more than a single factor is present in the responses to the items. The distinction enables us to understand the underlying structure in the data matrix, to identify the most parsimonious set of variables, and to establish the goodness of measures for hypothesis testing (Hair et al., 2006). In assessing the validity of the retail halal supply chain practices (HRSCP), the principal components factor analysis was conducted. Initially, 21 items were used with the scale that have different number of items for four dimensions. The results revealed that only 19 items formed four structures that were equivalent to the original structures that have inputs of 6 items, processes 6 items, controls 4 items and outputs 3 items (Table 3). The KMO measure of sampling adequacy for the retail halal supply chain practices scale was 0.906. This indicated that the items were interrelated. Next, Bartlett’s Test of Sphericity indicated a significant value (approx. chi-
square 2954.129, p < 0.01) informing of the significance of the correlation matrix and appropriacy for the factor analysis. In addition, the individual MSA value ranged from 0.633 to 0.922 demonstrating that the data matrix was suitable to be factor analysed. Finally, the results of factor analysis with varimax rotation indicated the existence of four factors with initial eigenvalues greater than one, which explained 79% of the total variance.
Table 3: Principal Component Factor Analyses for Retail Halal Supply Chain Practices (HRSCP) Component
1 2 3 4
Ip3 .879
Ip4 .870
Ip2 .834
Ip1 .805
Ip6 .784
Ip7 .754
Pc1 .845
Pc3 .794
Pc5 .684
Pc4 .665
Pc6 .632
Pc7 .601
Cr5 .811
Cr4 .802
Cr3 .800
Cr1 .750
Op3 .725
Op1 .710
Op2 .701
% Variance explained
27.854 22.411 19.230 9.812
MSA .633-.922
KMO .906
Bartlett’s Test of
Sphericity Approx. Chi- Square
2954.129
Df 171
Sig .000
The first factor comprised six items that have loadings ranged from 0.754 to 0.879. This factor mainly embraces inputs to the retail halal supply chain practices; hence the retainment of the original name. One item was removed due to high cross loadings or it loaded differently from the original conceptualization. The second factor was extracted with factor loadings ranging from 0.601 to 0.845. This factor consisted of six items which reflected the whole process of the retail halal supply chain practices. Consequently, the original name was also retained.
Next, two items were removed due to high cross loadings or it loaded differently from the original conceptualization. The third factor, which reflected the controls of the retail halal supply chain practices, comprised of four items with factor loadings ranging ranged from 0.750 to 0.811. Consequently, the original name of the third factor was retained. One item was removed due to high cross loadings or it loaded differently from the original conceptualization. Finally, the fourth factor which contained three items with factor loadings
ranging from 0.701 to 0.725, was related to the outputs of the retail halal supply chain practices. Consequently, the name output was maintained. In determining the unidimensionality of the perceptions of halal compliance variable, the principal component factor analyses were also performed. The results are displayed in Table 4.
Table 4: Principal Component Factor Analyses highlighting the Perceptions of Halal Compliance Component
1
EHC 1 .875
EHC 2 .851
EHC 3 .732
EHC 5 .728
EHC 6 .717
EHC 7 .700
EHC 8 .694
EHC 11 .831
EHC 12 .742
EHC 13 .750
EHC 14 .817
EHC 15 .801
% Variance explained
59.917
MSA .891 - .935
KMO .919
Bartlett’s Test of Sphericity
Approx. Chi-Square 1205.206
Df 45
Sig .000
The KMO measure of sampling adequacy for the perceptions of halal compliance in general scale was 0.919 which indicated the interrelationships of the items. Bartlett’s Test of Sphericity indicated a significant value (approx. chi-square 1205.206, p < 0.01), showing the significance of the correlation matrix and thje appropriacy for factor analysis. Nonetheless, the individual MSA value which ranged from 0.891 to 0.935 demonstrated that the data matrix was suitable to be factor analysed. Finally, the results of factor analysis with varimax rotation indicated the existence of one factor with initial eigen values greater than one, which explained 60% of the total variance. The findings revealed the existence of one factor with 12 items. The remaining three items were removed due to high cross loadings or they loaded differently from the original conceptualization.
3.2 Reliability and Correlation Analysis of the Retail Halal Supply Chain Practices and the Perceptions of Halal Compliance
The reliability analysis results indicated that the measure which gauged the intended variables has high internal consistency, and stability with Cronbach Alpha values ranging from 0.715 for
‘input’ to 0.951 for process of the retail supply chain. Meanwhile, the results of the correlation analysis indicated that all the variables were highly correlated with each other. The highly correlated variables meant that significant relationships among them should be highly considered when explaining about the phenomenon of interest. Additionally, significant correlations were also observed between the independent variables or retail halal supply chain practices. The lowest correlation occurred between ‘inputs’ to the retail halal supply chain
practices and the ‘controls’ of the retail supply chain (r =0.015, p >0.05). On the other hand, the highest correlation occurred between ‘controls’ of the retail halal supply chain practices and the outputs of the retail supply chain (r =0.755, p >0.01). These significant correlations indicated convergent validity of the independent variables. Apart from these. significant correlations were also observed occurring between independent variables and the dependent variable. The lowest correlation occurred between ‘inputs’ to the retail halal supply chain practices and the perceptions of halal compliance (r=0.245, p<0.01), and the highest correlation was found between ‘processes’ of the retail halal supply chain practices and perceptions of halal compliance (r=0.651, p<0.01). These significant correlations indicated synchronized validity of the measures (see Table 5).
Table 5: The Reliability and Correlation Analysis
V M SD 1 2 3 4 5
I 4.11 .89 (.715)
P 4.03 .88 .198** (.951)
C 3.89 .87 .015* .755** (.856)
O 3.75 .85 .142* .771** .708** (.698)
HC 3.95 .79 .245** .651** .466** .387** (.908) Notes: **. Correlation is significant at the 0.01 level (1-tailed); *Correlation is significant at the 0.05 level (1-tailed); N=489
3.3 Regression Analysis of Retail Halal Supply Chain Practices and the Perceptions of Halal Compliance
A regression analysis was performed to determine the influence of retail halal supply chain practices (which included inputs, processes, controls and outputs) on the perceptions of halal compliance of the selected retail supermarket. The finding showed R2 of 0.695, indicating that 69.5% of the variance was explained by Retail Halal Supply Chain Practices (F=37.954, p=0.000). Specifically looking at the contribution of the individual independent variable, namely inputs (β =0.355, p<0.05), processes (β =0.478, p<0.01), controls (β =0.487, p<0.01) and outputs (β =0.521, p<0.01), are have significant influence on the perception of halal compliance. With these results, H1 (retail halal supply chain practices have significant effect on perceptions of halal compliance was supported. (See Table 6).
Table 6: The Regression Analysis
Variables The Perceptions of Halal Compliance Standardized Beta Coefficients
Inputs .355*
Processes .478**
Controls .487**
Outputs .521**
R .885
R2 .695
F Value 37.954
Sig. F Value .000
Durbin Watson 1.712
Notes: **Correlation is significant at the 0.01 level (1-tailed);
*Correlation is significant at the 0.05 level (1-tailed); N=489
3.4 Reliability and Correlation Analysis of Retail Halal Supply Chain Practices and Trust The reliability analysis results indicated that the measure which gauged the intended variables has high internal consistency, and stability with Cronbach Alpha values ranging from 0.698 to 0.951. The relationship between retail halal supply chain practices along with the mediator were investigated by using the Pearson correlation coefficient. The output confirmed the results of the Pearson correlation that all retail halal supply chain practices dimensions were positively correlated with trust (r =0.514, p >0.01). Based on these results, H2 was supported, that is, retail halal supply chain practices have significant effect on trust. Table 7 shows the results of retail halal supply chain practices as against trust.
Table 7: The Reliability and Correlation Analysis
V M SD 1 2 3 4 5
I 4.11 .89 (.715)
P 4.03 .88 .198** (.951)
C 3.89 .87 .015* .755** (.856)
O 3.75 .85 .142* .771** .708** (.698)
TR 4.62 .75 .257** .621** .411** .514** (.666)
Notes: **Correlation was significant at the 0.01 level (1-tailed); *Correlation is significant at the 0.05 level (1- tailed); N=489
3.5 Reliability and Correlation Analysis of Trust and the Perceptions of Halal Compliance The reliability analysis results indicated that the measure which gauged the intended variables has high internal consistency, and stability with Cronbach Alpha values which was 0.666.
Meanwhile, the results from Pearson correlation confirmed that trust was positively correlated with the perception of halal compliance (r = .548, p = < .001). Based on these results, H3 was accepted, such that trust has a significant effect on the perception of halal compliance.
Table 8 shows the results of trust against the perception of halal compliance.
Table 8: The Reliability and Correlation Analysis
V M SD 1 2 3 4 5
TR 4.62 .75 (.666)
HC 3.95 .79 .548** (.908)
Notes: **. Correlation was significant at the 0.01 level (1-tailed);
*Correlation was significant at the 0.05 level (1-tailed); N=489
3.6 Trust as a Mediator between Retail Halal Supply Chain Practices and the Perceptions of Halal Compliance
The overall fit of the model was illustrated in Figure 1. The overall evaluation of the fit was based on multiple indicators. These multiple indicators suggested that the model fitted the data at a minimum level, justifying further interpretations. The normed-fit index (NFI) and non- normed-fit index (NNFI) were 0.79 and 0.85 respectively. The comparative fit index (CFI) was 0.85. Accordingly, H4 was accepted, that is, trust works as a mediator between retail halal supply chain practices and the perceptions of halal compliance.
TRUST
.514 .548
Retail Halal Supply Chain Practices
Perception of Halal Compliance
0.387
x2= 632.31(457df, p<0.01), GFI=0.65, NFI=0.79, NNFI=0.85 CFI=0.85 Arrow indicates significant paths
Figure 1: The Role of Trust
4. Managerial Implications
The halal outputs factor utilized in the study comprised documented evidences and demonstrated compliance of shariah-based work practices adhered to by the management and workers, in the dedicated halal store. The findings indicated that generally customers believe in the implementation of retail halal supply chain practices so long as there is confirmable evidence. This represents the perception of halal compliance in a dedicated halal store. This means that having a proper compliance-based documentation in place is a preventive measure to avoid any controversy or dispute with the regulatory bodies and the customers. Hence, it is important to note that maintaining relevant retail halal supply chain practices is done by regularly updating for changes in facts and circumstances related to the retail halal supply chain activities. If the relevant facts and circumstances changed, maintenance activities would need to be undertaken by the management concerned.
Dedicated halal store retailers should continue to adapt to the changing consumer demands, industry issues and regulations affecting their businesses. Some retail grocers are expanding their market share while some others are narrowing to specialty formats. There are even some that do both. All of them, regardless, are facing increased competition and high expectations for freshness, convenience and transparency. To date, emerging trends are important as that can enable the dedicated halal store retailer to evolve in the areas of food integrity, food safety, and food waste. As grocers focus more on “farm to table” freshness, the result will be an increased importance being placed on collecting and utilizing data related to the safety and integrity of the foods they offer. This effort is taken apart from just monitoring food temperature during or after shipping.
A dedicated halal store retailer will need to engage more closely with their suppliers and partners as this is important in ensuring data integrity throughout the chain of custody for food.
Consequently, this will result in achieving customer trust in their operations. In addition, evidence from past studies (Zainuddin et al, 2020) revealed that control comes as a second factor in predicting excellent customer service management in the retail supermarkets. Control
as utilized in this study refers to the management of the retail supermarkets. They should strictly abide by the Islamic laws as this can ensure integrity in the operations.
Process, on the other hand, involves all inbound and outbound transportation services. It also includes the nature and description of containers and equipment; modes of transportation;
placement, stacking and storage conditions; dispatch, receiving, handling and distribution activities with clear process flow diagrams to track shariah compliance movements. Hence, with processes, managers seek to maximize the reliability and efficiency of distribution networks while minimizing transportation and storage costs. By understanding the differences and correlation between HRSCP in both the inbound and outbound logistics can provide insights into developing a comprehensive Halal compliance supply-chain management.
Finally, the halal inputs factor in HRSCP refers to the proper infrastructure being placed in the dedicated halal store of the retailer. As large format stores become even larger and small format stores become more specialized, supermarket retailers take the opportunity to reinvest in the new and/or consolidated infrastructures. The reduction in infrastructure costs will provide retailers with the advantage of increased profitability, thus transferring lower prices to customers. When this happens, the increase in demand will require a greater need for improved equipment operations and maintenance. In order to eliminate unnecessary maintenance costs, such as refrigerant leaks, lighting and food service equipment, it is believed that HRSCP can be used as a system that controls and monitors the unnecessary costs. As the system captures systematic data, leading supermarket chains will be able to derive useful information such as that which can help to identify areas that can reduce costs and improve overall business efficiency. As such, a dedicated halal store management that embraces the HRSCP system can possibly emerge as an industry leader in the future.
Lastly, in its attempt to attain a halal compliance status, a dedicated halal store retailer is encouraged to implement the HRSCP system. Apart from the advantage of the system and to achieve best overall results, the management of the halal store should strive for the attainment of customer trust in its entire operations. This is important as the results showed that customer trust has been the justification for the practice of retail halal supply chain and an important element included in the perception of halal compliance.
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