Modelling the adoption of halal warehousing services among halal pharmaceutical and cosmetic manufacturers

Abdul Hafaz Ngah, Ramayah Thurasamy, Norzalita Abdul Aziz, Mohd Helmi Ali, Mohd Imran Khan

Research output: Contribution to journalArticle

Abstract

Halal warehousing services were invented by logistics providers in Malaysia to preserve the quality of halal-certified products. Nevertheless, in Malaysia, the acceptance of halal warehousing services has been relatively underwhelming. This research identifies the factors that influence pharmaceutical and cosmetics manufacturers when considering whether to use halal warehousing services. A purposive sampling method was used to collect data from 97 halal manufacturers in Malaysia. Also, structural equation modelling with Smart PLS was applied to investigate the relationship between the latent constructs. The findings show that cost and customer pressure are significant factors that influence the decision of whether to adopt halal warehousing or not. In contrast, supplier availability and organisational readiness are not substantial factors and do not significantly influence the adoption of halal warehousing. The top management attitude moderates the positive relationship between customer pressure and the intention to adopt halal warehousing. The findings provide useful information and give a fuller perspective of the factors that influence the decisions of pharmaceutical and cosmetics companies when deciding whether to use halal warehousing. Furthermore, this study provides recommendations to enhance the adoption of halal logistics by service providers and government.

Original languageEnglish
Pages (from-to)103-116
Number of pages14
JournalJournal of Sustainability Science and Management
Volume14
Issue number6
Publication statusPublished - 1 Jan 2019

Fingerprint

warehousing
cosmetics
Cosmetics
pharmaceutical
Drug products
Logistics
drug
modeling
logistics
Malaysia
Availability
Sampling
customer
Costs
Industry
services
sampling
supplier
service provider
cost

Keywords

  • Halal cosmetics
  • Halal pharmaceutical
  • Halal warehousing
  • TOE framework

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Pollution
  • Management, Monitoring, Policy and Law

Cite this

Modelling the adoption of halal warehousing services among halal pharmaceutical and cosmetic manufacturers. / Ngah, Abdul Hafaz; Thurasamy, Ramayah; Aziz, Norzalita Abdul; Ali, Mohd Helmi; Khan, Mohd Imran.

In: Journal of Sustainability Science and Management, Vol. 14, No. 6, 01.01.2019, p. 103-116.

Research output: Contribution to journalArticle

Ngah, Abdul Hafaz ; Thurasamy, Ramayah ; Aziz, Norzalita Abdul ; Ali, Mohd Helmi ; Khan, Mohd Imran. / Modelling the adoption of halal warehousing services among halal pharmaceutical and cosmetic manufacturers. In: Journal of Sustainability Science and Management. 2019 ; Vol. 14, No. 6. pp. 103-116.
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