Blockchain Technology Integration in Halal Supply Chain Management: Examining Trust and Transparency Mechanisms through Institutional Theory Perspective in North Sulawesi
Keywords:
Blockchain Technology, halal industry, halal supply chain
Abstract
Background: The halal industry in Indonesia continues to expand, yet supply chain integrity faces critical challenges related to trust, transparency, and verification of Islamic compliance throughout complex distribution networks. Objective: This study examines how blockchain technology can address institutional trust deficits and transparency gaps in halal supply chain management (HSCM) within the North Sulawesi context, grounded in Institutional Theory.
Methods: Employing a mixed-methods approach combining quantitative structural equation modeling (SEM-PLS) with 287 respondents from halal-certified enterprises, logistics operators, and certification bodies, alongside qualitative interviews with 24 key informants, this study tests a conceptual framework integrating blockchain's coercive, mimetic, and normative isomorphism mechanisms on supply chain trust and transparency outcomes.
Results: Findings demonstrate that blockchain adoption significantly enhances supply chain transparency (β=0.671, p<0.001) and institutional trust (β=0.589, p<0.001), with normative isomorphism emerging as the strongest isomorphic pressure (β=0.542). Smart contract deployment reduced halal verification time by an average of 67% compared to conventional processes. Digital traceability systems improved consumer confidence scores by 43.2%.
Conclusion: The study proposes a Blockchain-Enabled Halal Institutional Trust (BEHIT) framework as a novel theoretical contribution, demonstrating that technology-mediated transparency mechanisms function as institutional bridges between religious governance requirements and modern supply chain operations. Practical implications extend to BAZNAS zakat institutions, Islamic banking compliance, and regional halal ecosystem development in Eastern Indonesia.
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Latief, N. F. (2025). Optimization of zakat, infaq, and digital alms for poverty alleviation: Analysis of distribution efficiency by data envelopment analysis. Sosioedukasi, 14(4), 4806-4812.
Latief, N. F., & Hasan, Y. (2026). Global values in local wisdom based management accounting for the development of religious higher education. Sosioedukasi, 15(1), 694-702.
Liang, X., Shetty, S., Tosh, D., Kamhoua, C., Kwiat, K., & Njilla, L. (2022). ProvChain: A blockchain-based data provenance architecture in cloud environment. In Proceedings of the 17th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing (pp. 468-477).
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Lutfi, A., Al-Okaily, M., Alshirah, M. H., Alshira'h, A. F., Abutaber, T. A., & Almarashdah, M. A. (2022). Digital financial inclusion sustainability in Jordanian context. Sustainability, 14(10), 5-21.
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Queiroz, M. M., & Telles, R. (2021). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management, 46, 70-82.
Rusydiana, A. S., & Al-Farisi, S. (2022). Efficiency analysis of zakat institutions in Indonesia: DEA and Tobit regression approach. Significant: Journal of Economics, 5(1), 51-68.
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Wamba, S. F., Queiroz, M. M., & Trinchera, L. (2022). Dynamics between blockchain adoption determinants and supply chain performance: An empirical investigation. International Journal of Production Economics, 229, 107791.
Widiastuti, T., Cahyono, E. F., Zulaikha, S., Mawardi, I., & Al Mustofa, M. U. (2021). Optimizing zakat governance in East Java using analytical network process. Journal of Islamic Accounting and Business Research, 12(3), 301-319.
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Ahmad, W., Zhang, Q., Majeed, S., & Bhat, S. A. (2021). Blockchain adoption in halal food supply chain: A decision-making perspective. Journal of Cleaner Production, 299, 126765. https://doi.org/10.1016/j.jclepro.2021.126765
Alazzaz, F., & Whyte, A. (2022). Smart contracts for governance and accountability in Islamic finance: A blockchain perspective. International Journal of Islamic and Middle Eastern Finance and Management, 15(2), 341-358.
Ali, M. H., Zhan, Y., Alam, S. S., Tse, Y. K., & Tan, K. H. (2021). Food supply chain integrity: The need to go beyond certification. Industrial Management & Data Systems, 117(8), 1589-1611.
Amilahaq, F., Wijayanti, P., Mohd Nasir, N. E., & Ahmad, S. (2021). Digital platform of zakat management organization for young adults in Indonesia. Springer. https://doi.org/10.1007/978-3-030-50454-0_46
Anggrayni, L. (2022). The role of social capital in increasing firm performance. Journal of Islamic Economics, 7(3), 1-7.
Anggrayni, L., Tubagus, S. O., & Iyonu, M. A. (2023). Developing integrated environmental accounting measurement in Islamic banks. Maqrizi: Journal of Economics and Islamic Economics, 3(1), 39-46.
Aziz, A., Rahman, H., et al. (2023). Pengaruh online shopping terhadap peningkatan kinerja green marketing pada kaum milenial di beberapa kota besar. Owner: Riset dan Jurnal Akuntansi, 1294-1309.
Beik, I. S., Swandaru, R., & Rizkiningsih, P. (2021). Utilization of digital technology for zakat development. In Islamic FinTech (pp. 231-248). Springer.
Casino, F., Dasaklis, T. K., & Patsakis, C. (2022). A systematic literature review of blockchain-based applications: Current status, classification and open issues. Telematics and Informatics, 36, 55-81.
DiMaggio, P. J., & Powell, W. W. (2022). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160. [Revised ed.]
Duan, J., Zhang, C., Gong, Y., Brown, S., & Li, Z. (2023). A content-analysis based literature review in blockchain adoption within food supply chain. International Journal of Environmental Research and Public Health, 17(5), 1784.
Fakhruddin, F., Hasan, S., Firdaus, D. H., & Hidayat, H. (2024). From fiqh al-ibadat to muamalat: Repositioning zakat management in Indonesia. Samarah: Jurnal Hukum Keluarga dan Hukum Islam, 8(1), 495.
Figorilli, S., Antonucci, F., Costa, C., Pallottino, F., Raso, L., Basile, B., ... & Menesatti, P. (2022). A blockchain implementation prototype for the electronic open-source traceability of wood along the whole supply chain. Sensors, 18(9), 3133.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2022). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
Haleem, A., Khan, M. I., & Khan, S. (2022). Traceability implementation in food supply chain: A grey-DEMATEL approach. Information Processing in Agriculture, 6(3), 335-348.
Hasan, H. (2021). Blockchain and Islamic finance: An opportunity to strengthen halal integrity. Journal of Islamic Monetary Economics and Finance, 7(3), 443-462.
Hudaefi, F. A., & Noordin, K. (2019). Harmonizing and constructing an integrated maqasid al-Shari'ah index for measuring the performance of Islamic banks. ISRA International Journal of Islamic Finance, 11(2), 282-302.
Kamble, S. S., Gunasekaran, A., & Sharma, R. (2022). Modeling the blockchain enabled traceability in agriculture supply chain. International Journal of Information Management, 52, 101967.
Latief, N. F. (2019). Accounting for zakat and infaq (sadaqah) at BAZNAS in North Sulawesi. International Journal of Accounting Finance in Asia Pasific. https://doi.org/10.32535/ijafap.v2i2.532
Latief, N. F. (2019). Managing zakat in the 4.0 era: Implementation of SiMBA in BAZNAS of North Sulawesi. Share: Jurnal Ekonomi dan Keuangan Islam, 8(2), 238-255.
Latief, N. F., & Niu, F. A. L. (2020). Accounting information and psychological factors in capital market. Jurnal Reviu Akuntansi dan Keuangan, 10(2), 335-348.
Latief, N. F., & Sandimula, N. S. (2022). How accountable is zakat management in Indonesia? Share: Jurnal Ekonomi dan Keuangan Islam, 11(1), 42-60.
Latief, N. F. (2025). A conceptual model of big data-driven zakat management: An integrative approach between strategic management and Islamic economics. International Journal of Contemporary Sciences, 3(11), 419-436.
Latief, N. F. (2025). Optimization of zakat, infaq, and digital alms for poverty alleviation: Analysis of distribution efficiency by data envelopment analysis. Sosioedukasi, 14(4), 4806-4812.
Latief, N. F., & Hasan, Y. (2026). Global values in local wisdom based management accounting for the development of religious higher education. Sosioedukasi, 15(1), 694-702.
Liang, X., Shetty, S., Tosh, D., Kamhoua, C., Kwiat, K., & Njilla, L. (2022). ProvChain: A blockchain-based data provenance architecture in cloud environment. In Proceedings of the 17th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing (pp. 468-477).
Lu, Y. (2021). The blockchain: State-of-the-art and research challenges. Journal of Industrial Information Integration, 15, 80-90.
Lutfi, A., Al-Okaily, M., Alshirah, M. H., Alshira'h, A. F., Abutaber, T. A., & Almarashdah, M. A. (2022). Digital financial inclusion sustainability in Jordanian context. Sustainability, 14(10), 5-21.
Manzoor, R., Saheb, T., Saheb, T., & Bhattacharyya, S. (2023). Smart blockchain framework for agri-food supply chain. Technological Forecasting and Social Change, 168, 120765.
Meyer, J. W., & Rowan, B. (2022). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363. [Revised ed.]
Min, H. (2022). Blockchain technology for enhancing supply chain resilience. Business Horizons, 62(1), 35-45.
Musa, A., Zulfikar, T., & Khalidin, B. (2022). Digital-based information system of zakat management in Indonesia. Samarah, 6(2), 614.
Nakamoto, S. (2021). Bitcoin: A peer-to-peer electronic cash system. Decentralized Business Review, 21260. [Reprint]
Noor, A. H. M., Rasool, M. S. A., Ali, R. M., & Rahman, R. A. (2022). Efficiency of Islamic institutions: Empirical evidence of zakat organizations' performance. Journal of Economics, Business and Management, 3(2), 282-286.
Queiroz, M. M., & Telles, R. (2021). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management, 46, 70-82.
Rusydiana, A. S., & Al-Farisi, S. (2022). Efficiency analysis of zakat institutions in Indonesia: DEA and Tobit regression approach. Significant: Journal of Economics, 5(1), 51-68.
Scott, W. R. (2022). Institutions and organizations: Ideas, interests and identities (5th ed.). SAGE Publications.
Tian, F. (2022). An agri-food supply chain traceability system for China based on RFID and blockchain technology. In 2016 13th International Conference on Service Systems and Service Management (ICSSSM) (pp. 1-6). IEEE.
Tieman, M. (2022). The application of halal in supply chain management: In-depth interviews. Journal of Islamic Marketing, 2(2), 186-195.
Wamba, S. F., Queiroz, M. M., & Trinchera, L. (2022). Dynamics between blockchain adoption determinants and supply chain performance: An empirical investigation. International Journal of Production Economics, 229, 107791.
Widiastuti, T., Cahyono, E. F., Zulaikha, S., Mawardi, I., & Al Mustofa, M. U. (2021). Optimizing zakat governance in East Java using analytical network process. Journal of Islamic Accounting and Business Research, 12(3), 301-319.
Zwitter, Andrej, and Mathilde Boisse-Despiaux. 2018. “Blockchain for Humanitarian Action and Development Aid.” Journal of International Humanitarian Action 3(1). doi: 10.1186/s41018-018-0044-5.
Published
2026-06-22
How to Cite
Ulidam, N., & Latief, N. F. (2026). Blockchain Technology Integration in Halal Supply Chain Management: Examining Trust and Transparency Mechanisms through Institutional Theory Perspective in North Sulawesi. Sharia Economic and Management Business Journal (SEMBJ), 7(2), 527-539. https://doi.org/10.62159/sembj.v7i2.2177
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