Digital Technology 4.0 on Halal Supply Chain: A Systematic Review

Abstract

Background: The halal supply chain is a focused type of supply chain that ensures halal products throughout the entire process, from upstream to downstream. This paper aims to identify the innovative digital technology 4.0 utilized within the halal supply chain and understand its impact on firm performance, both financial and non-financial. Methods: A systematic review methodology was employed on the academic database of Scopus, resulting in 70 articles. We analyze the included articles with two main aspects that are of concern in this research, namely what technology is used in certain parts of the supply chain (procurement, manufacturing, distribution, and/or logistics), as well as the impact on firm performance (financial and/or non-financial); Results: Our findings reveal that the technologies widely used include blockchain technology, halal financial technology, and halal traceability system (RFID, IoT). Conclusions: Innovative digital technology has been implemented in the halal supply chain and has affected the firm’s performance both financially and non-financially. Future research is suggested to focus on investigations regarding holistic technology integration, quantitative analysis to measure the specific financial performance of firms adopting digital technologies, and the feasibility and importance of technology adoption for Small and Medium Enterprises (SMEs) in the halal industry.

1. Introduction

The halal supply chain, as defined in the literature, pertains to the effective oversight of the movement of materials, information, and capital to guarantee that products adhere to halal (permissible) standards throughout the entire production process, from farm to fork [1]. This approach underscores the importance of stakeholder coordination and collaboration to enhance supply chain performance and generate value, all while upholding halal principles across the entire chain [2]. Halal supply chain is also called halal logistics in several studies (e.g., [3,4,5]), so these terms are used interchangeably. The fundamental significance of the halal supply chain lies in its role as a cornerstone, wherein the prevention of direct contact with forbidden elements, management of contamination risks, and alignment with the perceptions of Muslim consumers are pivotal aspects [6]. These objectives set the halal supply chain apart from the conventional or standard supply chain, establishing it as a distinctive and crucial component.

The significance of the halal supply chain is underscored by the vast market for halal products, particularly in Muslim-majority countries. The primary target audience for halal products, necessitating the implementation of a halal supply chain, is the global Muslim population of 1.6 billion individuals, concentrated mainly in Asia, the Middle East, and Africa. The global halal market currently exceeds two trillion U.S. dollars and is anticipated to grow to 2.8 trillion U.S. dollars in the future [7]. As of 2021, Islamic finance dominated the halal industry with a market share of 51.6%, showcasing the success of the sector in implementing the halal supply chain. Following closely was the halal food industry, holding 31.46% of the global halal market share [8]. These statistics highlight the increasing importance of the halal supply chain, attracting attention and interest from both industry practitioners and researchers.

Research within the scope of the halal supply chain interacts with several dominant perspectives, such as supply chain management, certification, and marketing. In relation to marketing, previous research highlights the need for figurative understanding and halal brand elements for organizations [9]. Furthermore, in supply chain management, researchers [10] emphasize the opportunities and challenges in halal logistics, showing the importance of developing existing research in this area [10]. In addition, the adoption of the technology-organization-environment (TOE) framework is proposed for the development of the Halal warehouse adoption model, underlining the importance of integrating technology, organization, and environmental factors in the halal supply chain [11].

The use of innovative technologies has been widely employed in the field of supply chain management, including the concept of smart supply chain management, which offers unprecedented opportunities for cost reduction and efficiency improvement through intelligent decision-making and automation capabilities [12]. Additionally, the application of decision support systems and intelligent systems can overcome the challenges of unpredictable demand and rapidly changing market trends in the textile and apparel industry supply chain [13]. From a wood supply chain perspective, the use of Discrete Event Simulation (DES) can facilitate testing alternative strategies and provide decision support for tactical and operational planning [14,15]. Furthermore, innovative digital technology is crucial to enhance the efficiency and effectiveness of company activities, including in their supply chain [16,17,18], more specifically in the halal supply chain.

Prior studies have highlighted digital technology’s role in improving transparency, integrity, and certification processes in the halal industry, thereby establishing international best practices alongside mainstream food industry sectors. Information technology has been identified as a factor that can improve performance and efficiency and expand supply chain networks in the context of HSC management [19]. Additionally, the adoption of halal warehousing has been found to be significantly influenced by technological factors, emphasizing the importance of compatibility and perceived benefits [20].

There is a gap in the relationship between technology development and the supply chain of halal products. However, some of the literature has acknowledged the use of technology, such as digital tools in the halal supply chain [21] and sustainable halal supply chain using blockchain technology [22]. Therefore, we decided to conduct a systematic literature review on the topic.

Moreover, previous studies have emphasized the importance of technological advancements in ensuring halal integrity, certification, and auditing of food products, especially in the context of global supply chains (e.g., [23]). Additionally, the adoption of digital technology has been linked to the potential improvement of halal supply chain effectiveness, although it may impact efficiency [24]. The potential of halal logistics schemes as an innovation in the supply chain has been positively acknowledged, particularly in Southeast Asia [25]. However, previous research mainly focused on identifying technology adoption in the halal supply chain and discussed various technologies to enhance the halal supply chain. To our observation, there is a lack of comprehensive research on innovative digital technology in the halal supply chain and its impact on firm performance in both financial and non-financial aspects. Therefore, this study adds to the gap in the literature by systematically reviewing studies on innovative digital technology 4.0 in the halal supply chain and their relationship with firm performance.

Prior studies have attempted to review halal supply chain research but have been absent in explaining the innovative digital technologies in the halal supply chain and their connection with firm performance. For instance, an earlier bibliometric review study indicates a growing focus on halal supply chain research since 2016, predominantly led by Malaysian university researchers with a predominant emphasis on food-related studies [26]. However, those studies are still general and do not focus on specific topics such as innovative digital technology. Besides, previous review works identified five themes of the halal supply chain: control assurance, success factor criteria, distribution and production, halal supply chain support, and process engagement [27]. Those studies employed Google Scholar in the search processes, which could have limitations in terms of quality assessment. Another review work attempted to identify the role of the government in the promotion of halal logistics, including financial incentives, regulation, taxation, guidance, and encouragement, as well as education and provision of labor infrastructure [28]. Furthermore, on the food supply chain, five research clusters were documented using bibliometric analysis: food supply chain, halal supply chain, halal lifestyle, supply chain integration, and halal logistics [29]. Finally, previous researchers using a bibliometric approach documented five research topic clusters on studies of traceability systems in halal procurement: traceability, halal supply chain, food supply chain, halal logistics, and halal lifestyle [30].

More specifically, in a systematic literature review research, the halal supply chain presents both opportunities and challenges. The supply chain encompasses activities such as halal warehousing, transportation, sourcing, and logistics services [31]. The critical success factors of conventional supply chains can be applied to the halal supply chain, emphasizing the need for a comprehensive understanding of the factors contributing to its success [28]. Furthermore, the vulnerability of the halal supply chain to contamination is influenced by product characteristics and market requirements, necessitating control and assurance activities to maintain its integrity [2]. The implementation of halal logistics practices has been found to positively impact supply chain performance, highlighting the importance of readiness and stakeholder influence in ensuring successful implementation [32]. Additionally, the study of halal logistics constraints contributes to the growing body of literature in this area, enriching the understanding of halal logistics [32]. Previous research focuses more fundamentally on the halal supply chain. Our study is among the first to discuss the practice of innovative digital technology 4.0, which impacts firm performance in the context of halal supply chains from the existing academic literature.

In this study, two research questions are posed: (1) What innovative digital technology 4.0 is implemented in the halal supply chain, and (2) How does the implementation of innovative digital technology 4.0 impact firm performance? This study contributes to the literature and practical sides in the following ways. Theoretically, our study is among the first to explore innovative digital technology in the halal supply chain and firm performance. Thus, the study is expected to add to the knowledge by extending the halal supply chain study in relation to recent technological advancement and the company’s performance. Practically, this study is expected to inform firms, either large or small-medium enterprises (SMEs), about the appropriate technologies that can be utilized to enhance their halal supply chain.

This paper is structured as follows. The next section outlines the methodology employed in this paper. Following that, the results and discussion of the study are presented. The final section offers conclusions and outlines future research directions.

2. Methods

This research employs the systematic literature review approach, which is useful in analyzing the advancement of a particular area of research [33,34]. The systematic literature review process, as [34] describe by [35], consists of five steps: (1) define the research question; (2) determine the required characteristics of primary studies; (3) retrieve a sample of the potentially relevant literature (“baseline sample”); (4) Select the pertinent literature (“synthesis sample”); (5) reporting on the review; and (6) Report the results (Figure 1).

Step 1: Define the research question.

The questions formulated in this systematic review are the same as the research questions explained in the previous section, namely: (1) what innovative digital technology 4.0 is implemented in the halal supply chain?; and (2) how does the implementation of innovative digital technology 4.0 impact firm performance?

Step 2: Determine the required characteristics of primary studies

At this point, articles that align with the specified inclusion and exclusion criteria are segregated for reevaluation, while those not meeting the criteria are removed (refer to Figure 2). The study’s inclusion and exclusion criteria are detailed in

Table 1. Eligibility Criteria.

Items	Inclusion	Exclusion
Search Limitations	Scopus	Database other than Scopus
Keywords Search	Search string I: “Halal Supply Chain OR Halal Logistics” Search string II: (“Halal Supply Chain” OR “Halal Logistics” OR “Halal transport” OR “Halal procurement” OR “Halal product*” OR “Halal Delivery”) AND (“optimization” OR “simulation” OR “AI” OR “machine learning” OR “blockchain” OR “Technology”)
Literature type	Peer review article, conference paper	Magazine articles, reports, non-indexed journals, Book Chapters, discontinued publications.
Abstract	Technology, digital, and innovation	Not included Technology, digital, and innovation
Language	English	Non-English
Timeline	2008–2023	Before 2000

.

Figure 1. SLR roadmap. Source: Adapted from [35].

Figure 1. SLR roadmap. Source: Adapted from [35].

Step 3: Retrieve a sample of the potentially relevant literature (“baseline sample”).

At this step, methods involve choosing the search engine, database, and keywords for the literature search. The search is conducted on the Scopus academic database. Scopus is chosen because of its broad coverage and reliable quality assessment. Furthermore, the Scopus database is well-established and widely recognized in academic literature [36]. We conducted two searches using different search strings to retrieve articles that are relevant to this research. Firstly, the search string “Halal Supply Chain OR Halal Logistics” was applied in the title, abstract, and keywords, resulting in the identification of some articles from the selected source. Secondly, the search string II (“Halal Supply Chain” OR “Halal Logistics” OR “Halal transport” OR “Halal procurement” OR “Halal product*” OR “Halal Delivery”) AND (“optimization” OR “simulation” OR “AI” OR “machine learning” OR “blockchain” OR “Technology”) was employed in the title, abstract, and keywords. This search also yielded articles from the selected source. The authors excluded certain identified publications if they did not meet the predetermined criteria and did not include conference proceedings in this analysis. The sign asterisk (*) was used in the keyword “halal product” to include other related keywords, such as “halal products” (plural) and “halal production”.

Three hundred ninety-four articles were gathered using specified search parameters. We removed duplicate articles and ended up with 375 unique articles. Of these, 238 articles were identified as peer-reviewed articles or conference papers. During the screening process, by reading the full text of the articles, we focused on those that discussed technology or digital as the main keywords. Articles not centered around technology or digital aspects were excluded from the analysis and synthesis. After reading the full text of the articles, only 70 articles were selected.

Figure 2. A step-by-step procedure for choosing, analyzing, and reporting articles. Source: Adapted from [37].

Figure 2. A step-by-step procedure for choosing, analyzing, and reporting articles. Source: Adapted from [37].

Step 4: Select pertinent literature (synthesis sample”).

The analysis phase attempts to characterize an individual’s study, which is then split into specific components, and the relationships between these components are established [38]. Following the analytical step, a synthesis is carried out to connect the elements discovered in the various studies.

The analysis process starts by identifying the use of digital technology in halal supply chain management, which then leads to the identification of the implementation of digital technology practices in the halal value chain and its impact on firm performance. Finding research gaps to inform future research agendas is the main objective.

Step 5: Synthesize literature.

In this stage, we extracted data from the articles that had been selected based on the predetermined criteria. We then integrated the data to synthesize the theoretical framework. In this study, we aim to determine what technologies are used in the halal supply chain and how the use of these technologies can impact company performance.

Step 6: Report the results.

Elaborate on the enhanced theoretical framework and contrast it with the original theoretical assumptions [35]. This study examines the development of research on the use of digital technology and its impact on firm performance in the context of halal supply chains.

3. Results

In this research, we generally review research on the application of innovative digital technology 4.0 in the context of the halal supply chain, which has evolved from 2008 to the present. The highest number of articles on the topic of innovative digital technology 4.0 is in 2023, reaching 17 articles. It reflects that research interest in applying digital innovation Technology 4.0 in the halal supply chain is still very high. A total of 70 articles published between 2008 and 2023 fulfill the systematic criteria of the literature review (Figure 3).

Based on the 70 articles analyzed, the most frequently used innovative digital technology 4.0 in the context of the halal supply chain is Blockchain Technology, accounting for 31% of the innovative digital technology that has been identified Halal traceability systems (RFID, IoT) (11.1%) is the second most common, followed by, Halal financial technology accounting for 6.9% of the sample studied (Figure 4).

4. Discussion

We categorize innovative digital technology into four primary functions within the halal supply chain (Figure 5): halal manufacturing, halal procurement, distribution, and logistics [39] (Technology details of each of the four main functions of the halal supply chain can be seen in Appendix A).

Blockchain technology is generally utilized across all primary functions within the supply chain. To elaborate on Figure 5, we introduce

Table 2. Technology in Halal Supply Chain.

Authors		Halal Supply Chain				Firm Performance
		Halal Procurement	Halal Manufacturing	Halal Distribution	Halal Logistics	Financial	Non-Financial
[24]	2020	x	EDI, Extranet, Internet, and electronic commerce	x	x	x	Technology can improve the effectiveness of supply chain processes in family halal food businesses.
[40]	2023	x	x	TS-based algorithm	x	Minimizing transportation costs	Ensure the integrity of Halal products
[41]	2019	x	x	x	CPLEX and hybrid genetic algorithm	Minimizing cost	Improve the efficiency of locating farms, butcheries, and food plants
[42]	2023	x	Shariah Financial Technology (FinTech)	x	x	Enhance business strategy by minimizing costs	The developed HSCMT prototype increases the effectiveness of Halal Supply Chain Management for Malaysia Halal SME Owners (MHSO) with an average usability score of 83.67.
[43]	2023	Blockchain Technology	x	x	x	Increase operational costs	Improved product quality due to well-managed traceability management
[44]	2023	x	x	x	Pharmaniaga Lifescience (Cold rooms)	x	Increase efficient halal document checking and verification process
[45]	2022	x	Blockchain Technology	x	x	The use of Blockchain with the Avalanche platform is more cost-effective than the Ethereum network	Blockchain-Based Traceability System to Support the Indonesian Halal Supply Chain Ecosystem
[46]	2021	x	Permissioned Blockchain (Hyperledger Fabric)	x	x	x	Permissioned Blockchain is useful for the Halal Supply Chain not just because it can secure transactions from some of the halal issues (trust, transparency, and information disclosure) but also because the transaction speed and rate to transfer data are very effective.
[47]	2021	x	x	x	Internet of Things (IoT), RFID, and EDI	x	The use of technology in halal logistics can improve the quality of information, the quality of personnel contact, order accuracy, order conditions, order discrepancies, and order expenditure amount.
[48].	2022	x	Big Data (Data-driven)	x	x	x	Improve the firm’s ability to be more sustainable in the halal food chain process
[49]	2022	x	Blockchain Technology	x	x	x	Improve the halal food supply chain’s traceability from farm to fork.
[50]	2020	e-procurement technology	x	x	x	x	The use of technology can improve performance in order to speed halal traceability. However, the use of technology needs to be balanced with the ability of employees to use this technology.
[51]	2020	x	Blockchain Technology	x	x	Investing in blockchain technology requires a lot of resources, especially in terms of costs.	Can improve halal traceability
[52]	2021	x	(RFID) with Hazard Analysis Critical Control Point	x	x	Reduce the cost of product removal from the market	Preventing the occurrence of product recalls, especially in terms of halal assurance, will lead to the level of customer trust and confidence in the integrity of the halal industry
[42]	2023	x	Shariah Fintech	x	x	This fintech can bridge international transactions.	It can assist firms in tracking financial activities.
[53]	2022	x	x	x	(ICT)-Digitally-enable community	x	Improve the efficiency with which halal logistics are conducted, offer improved logistical organization, and boost halal performance.
[54]	2022	x	Blockchain Technology	x	x	x	Ensuring transparency and security related to Halal Fashion Traceability
[55]	2023	x	Blockchain Technology	x	x	Benefits from the tracking system made possible by blockchain technology include evidence of the transparent flow of finances, information, and goods from producer to customer.	Supporting blockchain technology’s accessibility can improve traceability and transparency, connecting upstream and downstream flows that influence improvements in the efficiency of the Halal supply chain’s performance.
[56]	2016	x	x	GPS tracking system	x	x	Assist the firm in tracking and tracing products and vehicles carrying halal goods during the shipping process so that it is more effective and verification can be done automatically.
[57]	2023	x	Sharia Financial Technology	x	x	x	Increase sustainability of MSMEs in Malaysia and Indonesia by 90% through waqf participation
[58]	2023	x	Blockchain Technology	x	x	x	More transparent transaction processes through decentralized protocols can increase the value of innovation in management decision-making in each operation process.
[59]	2023	x	Machine Learning	x	x	x	Adapting this technology will create a new offer to existing customers to be more loyal, and data collection will then be recorded, which ends in deep learning customer engagement always to provide an appropriate and satisfying service.
[60]	2023	x	x	x	Product ID and RFID	x	The usage of Halal traceability technology in Halal logistics can significantly improve the performance of logistics service providers and enhance the market recognition of their Halal logistics brand.
[61]	2022	x	Halal traceability system	x	x	“The use of a halal traceability system would assist our firm in reducing the operating cost”.	The adoption of a halal traceability system can enhance SME business and improve the integrity of the halal industry.
[62]	2020	x	Financial Technology	x	x	x	Increase synergy in the halal industry ecosystem by emphasizing the role of each institution in minimizing the problems related to the halal industry
[63]	2020	x	x	x	Halal-based third-party logistics (3PL) providers	x	Halal-based 3PL providers with high and medium resource capabilities achieve greater customer service innovation and cost advantages significantly
[64]	2015	x	Information Technology Outsourcing (ITO)	x	x	Lower labor specialization costs while simultaneously raising cash flow and the financial performance index.	Provides detailed factors in the relationship between IT Outsourcing and the company.
[65]	2021	x	Blockchain Technology	x	x	x	It can help companies identify the authenticity of halal certification processes to increase trust and ensure the authenticity of halal logos.
[66]	2022	x	Halal Transportation System	x	x	Can save transportation costs incurred	The benefits of using the Halal transportation system among Halal food manufacturers are easing the doubts about Halal quality and increasing the image of the products.
[20]	2022	x	Halal Warehousing System	x	x	x	The firm can measure products/goods that are aligned with Halal specifications, value systems, and job responsibilities.
[1]	2021	x	Blockchain Technology, IoT, and RFID	x	x	x	Implementing technology-driven solutions can help in reducing risks associated with product adulteration, counterfeiting, and non-compliance with halal requirements.
[67]	2020	x	Displacement Loop mtDNA	x	x	x	Facilitate halal forensic investigations in determining the halalness of critical raw materials (animal)
[68]	2020	x	functional magnetic resonance imaging (fMRI).	x	x	x	Knowing consumer interest in buying halal products that have a halal logo
[69]	2021	x	x	x	Blockchain technology	x	Improve efficiency in traceability during the logistics process so as to minimize product contaminations
[70]	2019	x	functional magnetic resonance imaging (fMRI).	x	x	x	Knowing consumer desires in choosing halal products
[71]	2022	x	x	NER and OCR	x	x	Ensuring products received by consumers are in accordance with halal standards
[72]	2022	x	Augmented Reality	x	x	The cost incurred to adopt this technology is quite expensive	Increase consumers’ awareness of buying halal cosmetics because it gives them experience before buying the product.
[73]	2022	x	functional magnetic resonance imaging (fMRI).	x	x	x	Facilitate marketing managers in making halal product advertisements by paying attention to the ethical and emotional aspects of customers.
[74]	2020	x	Sharia Fintech	x	x	x	Facilitate the tracking of transactions that comply with Sharia principles.
[75]	2021	x	Blockchain Technology	x	x	x	Ensuring the halal traceability of a product, thus increasing consumer interest in buying the product
[76]	2023	x	Blockchain Technology	x	x	Can reduce the expenses associated with manual halal traceability processes.	Improve transparency and trust in the supply chain
[77]	2021	x	Blockchain Technology	x	x	Minimize lost costs	Improve integration and accountability of Halal Assurance System stakeholder data activities. Can further increase consumer confidence and awareness of the value of halal products
[78]	2022	x	Blockchain Technology	x	x	x	Improved transparency, traceability, and timely decision-making
[79]	2022	x	Blockchain Technology	x	x	Increase product sales	Increase the certainty that products have been processed in accordance with applicable halal standards.
[80]	2023	x	blockchain, Internet of Things (IoT), Artificial Intelligence (AI)	x	x	x	Enhanced monitoring and assurance of adherence to diverse standards and sustainability across the supply chain.
[81]	2022	x	Blockchain Technology	x	x	The cost of implementing blockchain technology is quite high	Ensuring transparency in documentation involves effectively recording information and transactions. The system has demonstrated its security and transparency, as all involved parties have public access to transaction details.
[82]	2019	x	Online search service	x	x	x	Improving the effectiveness of halal product status search
[83]	2023	x	Halal dengue vaccine technology	x	x	Affordable price	Improving prevention of dengue fever outbreaks
[84]	2020	x	Internet of things	x	x	High costs	The implementation of IoT has undoubtedly established a reliable platform for the supply chain of halal agro-food SMEs.
[85]	2019	x	x	Blockchain Technology	x	x	Improve traceability of halal documents
[86]	2019	x	digital object architecture (DOA) & RFID	x	x	x	The system provides effective technical guidelines for companies to monitor the entire product lifecycle using the Internet of Things.
[87]	2022	x	Blockchain technology	x	x	x	Improve the integrity of the halal supply chain
[88]	2023	x	Machine Learning	x	x	x	Improve the efficiency of checking the difference between halal products and non-halal products.
[89]	2023	x	Blockchain technology	x	x	x	Improving transparency in halal supply chain and assurance pathways
[90]	2019	x	Blockchain technology	x	x	x	Improving transparency and assurance of halal compliance
[91]	2021	x	Blockchain technology	x	x	Minimize tracking costs	Tracking speed is up to 10 times faster than conventional methods, leading to minimized losses through more targeted issue resolution.
[92]	2023	x	x	Blockchain, RFID, QR Code	x	x	Increase consumer trust to buy halal products
[93]	2023	Blockchain Technology and ERP	x	x	x	Reduce operational cost	Through effective management of halal product procurement, companies can guarantee the delivery of products with halal assurance to consumers.
[94]	2017	x	x	OCR and Augmented Reality	x	x	Improve efficiency in checking the halal status of products
[95]	2016	x	x	RFID	x	x	The verification of the product’s Halal status becomes straightforward, as each tag embedded in food packages is assigned a unique identification number.
[96]	2008	x	x	MMS camera phone-based	x	Production cost savings	Effective way method to accelerate the Halal verification procedure.
[97]	2012	x	x	MyHalal system	x	x	Improve verification of halal product status in real-time
[98]	2017	x	x	OCR and Augmented Reality	x	x	Enhance the efficiency of verifying the halal status of products.
[99]	2017	x	x	OCR and Web Service	x	x	Improve the effectiveness of confirming the halal status of products.
[100]	2014	x	x	x	Information Communication Technology (ICT)-RFID	x	Improve the effectiveness of monitoring halal transportation
[101]	2017	x	x	Augmented Reality	x	x	Enhance the efficiency of verifying the halal status of products.
[102]	2017	x	RFID and NFC	x	x	x	NFC and RFID mobile shopping technologies streamline the validation of halal status, allowing customers to do so effortlessly through their personal smartphones.
[103]	2018	x	Online Traceability	x	x	x	Improve company reputation
[104]	2014	x	Hybrid Renewable Energy System	x	x	x	Improving the sustainability of environmentally friendly businesses
[105]	2011	x	RFID	x	x	x	Improving the integrity of halal products

, offering more detailed insights into comparing each technology used in the firm’s key activities. Additionally, our focus is on delivering a comprehensive overview of the financial and non-financial consequences the company may experience upon implementing these technological practices in its operations.

4.1. Halal Procurement

Halal procurement involves obtaining goods and resources in compliance with Islamic law, ensuring the halal product’s integrity throughout the supply chain [2]. It includes sourcing halal-compliant inputs, by-products, and resources, extending beyond raw materials and production to encompass the entire supply chain, including distribution and logistics [2,106,107]. The concept has evolved due to growing awareness, emphasizing the need for organizations to establish a robust procurement function aligned with Islamic values [108]. A halal procurement maturity model can facilitate this development. The integrity of halal products is upheld through various supply chain activities, highlighting the importance of a holistic approach to ensure halal integrity at the point of consumption. It can be concluded that in the halal food supply chain industry, supplier flexibility plays an important role that can affect other criteria, such as cost and footprint. For instance, a hybrid approach to model halal supplier flexibility criteria emphasizes the influence of Blockchain Technology in enhancing traceability but, on the other hand, will increase operational costs [43]. Prior research also investigated the influence of service quality from halal suppliers and the preparedness of staff to embrace E-procurement technology on the performance of halal logistics [50]. It underscores the pivotal role of technology in improving order speed and traceability, with a cautionary note on the necessity to balance technological adoption with employees’ proficiency.

Moreover, integrating blockchain and ERP can enhance corporate governance, leading to improved company performance in the long run and reducing operational costs. Through effective management of halal product procurement, companies can guarantee the delivery of products to consumers with halal assurance [93]. Overall, these studies contribute valuable insights into the dynamic landscape of halal procurement, highlighting the importance of technological advancements and flexibility criteria in shaping both financial and non-financial aspects of firm performance in the halal supply chain.

4.2. Halal Manufacturing

Halal manufacturing refers to the production of goods under Islamic Shariah law, ensuring that the ingredients, manufacturing processes, and techniques used comply with the standards set by Islamic guidelines [109]. It includes various aspects such as certification, transportation, and warehousing [20,66,110].

Furthermore, adopting halal practices in manufacturing can lead to improved business performance and expansion opportunities, particularly in countries with a significant Muslim consumer base [111,112,113]. The adoption of innovative digital technology in halal manufacturing has become increasingly significant. Various studies emphasize the impact of technology in improving the efficiency and competitiveness of halal supply chains [51,55]. Technologies like the Internet, Extranet, EDI, and electronic commerce can potentially enhance the efficiency of the family supply chain in the halal food business [24].

However, the financial commitment can challenge family business proprietors, particularly in the halal food sector. The prototype of Halal Supply Chain Management Transactions (HSCMT) with halal financial technology (FinTech) can improve the effectiveness of halal supply chain management for Malaysian Halal SME Owners (MHSO) [42]. Meanwhile, big data technology can improve companies’ ability to become more sustainable in the halal food chain process [48]. On the other hand, a study by [51] suggests that while blockchain technology can improve the halal footprint, the investment required can be significant.

Furthermore, digitization and financial technology (FinTech) through waqf funds can increase the sustainability of MSMEs in Malaysia and Indonesia by 90%, highlighting the critical role of technology in increasing waqf participation and the performance of micro and small enterprises [57]. Also, blockchain provides an opportunity to promote value innovation in the halal industry, potentially increasing the transparency of transactions and value innovation in management decision-making [58]. It was highlighted that the development of synergies between Islamic banks and Muslim-friendly tourism involves technologies such as Machine Learning and Digital Innovation Services, which can create new offers and increase customer loyalty [59]. The study of the halal footprint system shows that the application of halal footprint technology can help reduce operational costs, improve the business performance of MSMEs, and improve the integrity of the halal industry [61]. In the context of fintech, building an integrated Islamic financial ecosystem involves financial technology (fintech) to increase synergy in the halal industry [62]. In addition, highlighted that Information Technology Outsourcing (ITO) can help MSMEs in Malaysia accelerate e-Business adoption, reduce labor specialization costs, and increase cash flow [64]. Pertaining to quality-life improvement through technology, blockchain was proposed to improve the economy, education, and health industries [65]. Technology adoption in the halal supply chain, particularly in transportation, is essential to save costs and improve the image of halal products [66].

Finally, technology in halal warehousing can help companies measure products that comply with halal specifications and system values [20]. Overall, technologies such as blockchain, FinTech, Big Data, and RFID have a positive impact on the effectiveness and transparency of the halal supply chain. However, significant financial and investment challenges remain a concern for companies adopting them [24,42,48,51]. Furthermore, to enhance their success prospects in Muslim markets, marketing managers of multinational companies should employ advertising messages emphasizing the ethical aspects of their products and utilizing cognitive appeals rather than emotional ones using functional magnetic resonance imaging (fMRI) technology [68,70,73]. On the other hand, using a hybrid renewable energy system can minimize the excess energy that occurs during the production process and will improve the sustainability of environmentally friendly businesses [104].

4.3. Halal Distribution

The Halal distribution network plays a crucial role in preserving the halal status of products and implementing protective and preventive measures to guarantee the continuity of halal status from production to consumer delivery [23]. Several technologies have been used in halal distribution to improve company performance. For example, the Traceability system-based algorithm (TS-Based Algorithm) is used to optimize the distribution of halal products [67]. The use of this algorithm has the potential to make a significant contribution to company performance by reducing transportation costs while ensuring the sustainability and authenticity of halal products. Meanwhile, GPS tracking technology (Halaltracer Technology) monitors and tracks cargo and vehicles carrying halal commodities during the shipping process [56]. This tracking technology can positively contribute to company performance by increasing the effectiveness of tracking halal products and vehicles during the shipping process, which automatically facilitates more efficient verification. The food sector focuses on applying named-entity recognition (NER) and optical character recognition (OCR) to identify halal food ingredients in Indonesia. This will increase firm performance, such as Ensuring products received by consumers are under halal standards [71].

Additionally, the use of blockchain technology will Improve the traceability of halal documents [85]. It is in line with research on the use of Blockchain, RFID, and QR Codes, which can enhance consumer trust in halal products [92]. Using OCR, RFID, and Augmented Reality will Improve efficiency in checking the halal status of products [95,98,99]. However, the financial impact of using the technology is not explicitly known.

4.4. Halal Logistics

Halal logistics refers to the implementation of Shariah-compliant processes in handling and distributing goods throughout the entire supply chain [114]. This definition underscores the adherence to Shariah principles in logistics operations. The concept of Halal logistics is indeed gaining significance within the supply chain management domain [115]. Key elements essential for the successful adoption and execution of Halal logistics within the Halal supply chain encompass the establishment of suitable guidelines, standards, and codes for the training of Halal logisticians [116]. Additionally, the involvement of Halal logistics in the industry is becoming more complex due to the integration of components such as Shariah governance, halal assurance, and logistics [117]. Moreover, the readiness of consumers to pay for Halal products is associated with the necessity for Halal logistics certification [48]. Halal logistics encompasses a range of activities and processes, including transportation, warehousing, terminal operations, and traceability throughout the supply chain [28,118].

There are variations in the use of technology in halal logistics. For example, Ref. [41] highlighted the importance of separating halal and haram products and considering the chain effect of haram facilities on the entire halal food logistics network by using CPLEX technology and hybrid genetic algorithms for the optimization of the location and allocation of halal logistics networks, including farms, slaughterhouses, and food factories that follow Islamic food regulations. While there are indications of increasing costs in the development of halal logistics networks, this does not mean that every cost element continues to increase. This technology can improve efficiency in locating farms, slaughterhouses, and food factories.

Furthermore, the importance of technology readiness in improving customer satisfaction and organizational operations in the halal meat industry was highlighted [47]. Internet of Things (IoT), RFID, and EDI were found to improve information quality, personnel contact, order accuracy, order conditions, order discrepancies, and order spending amounts. In line with this, halal logistics brand building through halal tracking technology and training use Halal Tracking Technology (Product ID and RFID) to improve the performance of logistics service providers and increase their halal logistics brand recognition in a competitive market [60]. The specific use of technology in the ASEAN region focuses on developing a digital society and its impact on the region’s potential to become a global leader in halal logistics [53]. In that study, information and communication technology (ICT) were used to foster a digitally connected society.

Furthermore, using ICT (RFID) can help companies monitor their transportation [100]. The impact includes increased halal logistics efficiency, better logistics organization, and improved halal performance. On the other hand, in the cosmetics industry, the use of Pharmaniaga Lifescience technology can improve the efficiency of the inspection process and the verification of halal documents to facilitate the flow of products in the warehouse [44]. In addition to focusing on technological development in halal logistics, it shows that the emerging resource capabilities of halal logistics services significantly impact customer service innovation and cost advantages [63]. Halal-based third-party logistics service providers should focus on developing their resource capabilities to improve competitiveness in the dynamic halal market.

The technologies in use today prove that the challenges and opportunities associated with emerging technologies in conventional supply chains also apply to halal supply chains. The initial disillusionment with emerging supply chain technologies, as discussed by [119], can be paralleled with the challenges faced in implementing technology-based solutions in halal supply chains. Similarly, the insights regarding digital technologies for real-time data collection and decision support systems can be applied to the halal supply chain, where ensuring the integrity of halal products from source to consumption is critical [120]. In addition, game-based workshops for knowledge transfer within the timber supply chain can be adapted to the halal supply chain [121]. This adaptation aims to enhance comprehension, ensure compliance with halal standards among supply chain stakeholders, and provide decision support for contingency planning and bottleneck analysis in halal supply chain management [121,122]. Nevertheless, certain technologies, such as digital twins and various simulation methods like discrete event simulation, agent-based simulation, and system dynamics, which were not addressed in this research, have shown promise in enhancing decision-making processes within supply chains [123,124]. These technologies could also be effectively employed within halal supply chains to aid management decision-making.

5. Conclusions

In the realm of halal supply chain management, information technology has been identified as a factor capable of improving overall performance efficiency and expanding supply chain networks. Moreover, the adoption of halal storage is significantly influenced by technical variables, emphasizing the importance of compatibility and perceived advantages. Previous studies have underscored the crucial role of technological advancements in ensuring the integrity, certification, and auditability of halal food items throughout the entire supply chain, especially in the context of global supply networks. While digital technology may impact efficiency, its utilization is linked to the potential improvement of the effectiveness of the halal supply chain.

The implications of these findings extend beyond the immediate context of halal supply chain management, offering valuable insights for businesses, especially small and medium-sized enterprises (SMEs). The first is related to technology selection for SMEs. SMEs facing rising costs in establishing halal logistics networks can benefit from insights into the right technologies. This study suggests that SMEs should consider technology’s compatibility and perceived benefits to enhance their halal supply chains. The second is related to flexibility and supplier dynamics. To recognize supplier flexibility’s crucial role in influencing factors like footprint and cost, businesses should strategically leverage technology to enhance their supply chain agility. The findings also highlight the potential trade-offs associated with adopting blockchain technology, emphasizing the importance of a balanced approach. The third is concerned with halal production for market expansion. Companies operating in regions with sizable Muslim consumer bases are encouraged to invest in halal production procedures. It aligns with Islamic standards and has the potential to boost corporate performance and facilitate expansion in these markets.

We acknowledge that this paper has several limitations. First, the research is limited to the halal supply chain, which suggests that the applications of the technologies identified may not be extendable to other fields. Any adaptation for use in different fields will require adjustments, as these technologies are designed to ensure compliance with Islamic standards, which is the focus of the halal supply chain. Second, the use of a systematic literature review method in this study prevents the identification of practices and challenges associated with implementing innovative digital technology 4.0 by the firm. Third, we exclusively rely on the Scopus database for our research, potentially resulting in the omission of pertinent articles that fall outside the scope of Scopus and, consequently, are not subject to analysis in this study. Fourth, the criteria we used to select the articles analyzed only focused on using digital 4.0 innovative technology in the halal supply chain, which may indicate bias and inconsistency.

Future research in innovative digital technology 4.0 within the context of the halal supply chain could focus on three key aspects. First, future studies may address holistic technology integration by delving into the development and implementation of technology in various stages of the halal supply chain, from procurement to distribution. Understanding how technology enhances efficiency, transparency, and compliance with halal standards at each stage will contribute to a more comprehensive perspective. Second, conducting a quantitative analysis to measure the specific financial performance of companies adopting digital technologies is essential. Employing methods such as cost-benefit analysis will provide insights into the economic impact of technology adoption in the halal supply chain. Third, investigating the feasibility and importance of technology adoption for Small and Medium Enterprises (SMEs) in the halal sector is critical for future research. Understanding whether blockchain, RFID, GPS tracking, and fintech are vital for SMEs to remain competitive and adhere to halal principles will inform strategic decision-making for businesses of all sizes. Fourth, future research can adapt digital twins and simulation methods, such as discrete event simulation, agent-based simulation, and system dynamics, to be applied to halal supply chain management.

This study not only contributes to the understanding of the halal supply chain but also opens avenues for further exploration into the broader implications of technology adoption in diverse industries and the specific challenges and opportunities that SMEs frequently encounter. The unique focus on Islamic standards and halal compliance makes this research a valuable resource for businesses seeking to navigate the intersection of technology and effective supply chain management.