China’s Halal Food Industry: The Link Between Knowledge Management Capacity, Supply Chain Practices, and Company Performance
Authors: Usmanova Kamila , Wang Daoping , Sumarliah Eli , Mousa Kawthar , S Maiga Safiatou 
Published: July 2021

Aim/Purpose: The study attempts to analyse the influences of knowledge management capacity on company performance and supply chain practices. It also examines whether supply chain practices significantly and positively impact company performance.

Background: Knowledge management capacity is an essential tactical resource that enables the integration and coordination among supply chain stakeholders, but research examining the link between knowledge management capacity and supply chain practices and their impacts on company performance remains scarce.

Methodology: The study uses correlation analysis and factor analysis to confirm the theoretical framework’s validity and structural equation modelling to test hypotheses. The data are obtained from 115 halal food firms in China (with a response rate of 82.7%).

Contribution: This study’s findings contribute to the Social Capital Theory by presenting the impacts of different supply chain practices on company performance. The findings also suggest the impact of intangible resources on enhancing company performance, contributing to the Resource-based View Theory. These results are a crucial contribution to both academicians and corporate managers working in the Halal food industry. Managers can apply these findings to discover and adopt knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance.

Findings: This study is an initial effort that provides empirical evidence regarding the relationships among supply chain, knowledge management, and company performance from the perspective of China’s halal food industry. The results prove that knowledge management capacity is the supply chains’ primary success determinant and influencer. Besides, knowledge management capacity positively influences company performance, and supply chain practices directly influence company performance.

Recommendations for Practitioners: Managers can apply these study findings to determine and increase knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance.

Recommendation for Researchers: The study presents a new theoretical framework and empirical evidence for surveying halal food businesses in China.

Impact on Society: These results are a significant contribution to the research field and industry focusing on halal foods.

Future Research: First, this research focuses only on halal food businesses in China; thus, it is essential to re-examine the hypothesized relations between the constructs in other Chinese business segments and regions. Next, the effect of variables and practices on the theorized framework should be taken into account and examined in other industries and nations.