Blockchain in Halal Supply Chains: A Structural Model on SME Performance using Smart PLS

The integration of blockchain technology in the halal supply chain offers a transformative solution to address long-standing challenges in transparency, traceability, and regulatory compliance. Despite its great potential, there is limited research on the impact of blockchain adoption on halal compliance, supply chain resilience, and company performance, especially among halal-certified SMEs. The study fills the gap by applying a quantitative approach using structural equation modeling to test the relationship between variables. The results show that blockchain adoption significantly improves supply chain resilience which then contributes to improved company performance. In contrast, the direct effect of halal compliance on company performance was not found to be significant. The indicates that while the implementation of halal compliance is critical to maintaining product integrity and consumer confidence, the benefits are realized more indirectly through improved operational mechanisms and supply chain halal resilience than through directly visible performance improvements. In addition, there are several challenges in implementing the technology such as high start-up costs and the need for specialized training, which also affect the results obtained. The study provides empirical evidence of the strategic value of blockchain in strengthening supply chain operations in the halal sector and provides practical insights for SMEs and policymakers to leverage digital transformation to improve consumer confidence and competitiveness in the global halal market. Future research is needed to strengthen the validity of the proposed model, particularly in regard to halal compliance and company performance.