From Halal Compliance to Global Competitiveness: An Integrative Literature Review and Strategic Framework

Abstract

The global halal economy has evolved far beyond its traditional role as a religious and regulatory concern, becoming an increasingly important source of competitive advantage in international markets. Although halal certification enhances legitimacy and consumer trust, it does not necessarily enable firms to achieve sustainable global competitiveness. This review examines how halal businesses can move beyond compliance by developing strategic capabilities and leveraging ecosystem resources to strengthen their competitive position. To synthesize the previous studies on halal certification, institutional theory, strategic management, resource-based perspectives, supply chain management, business ecosystems and internationalization, an integrative literature review was undertaken. The review shows that global competitiveness is not only achieved by certification, but a dynamic process where halal-related resources are transformed into organizational capabilities and strengthened with supply chain integration, ecosystem collaboration and international market development. From this synthesis, a conceptual framework is proposed which integrates the Institutional Theory, the Resource-based view, the Dynamic capabilities theory, the business ecosystem perspective and the internationalization theory into a coherent explanation of the strategic transformation from halal compliance to global competitiveness. The framework highlights that certification is a source of legitimacy, but long-term competitiveness depends on the firms’ ability to develop, modify and deploy strategic capabilities across interconnected business ecosystems and international markets. This study adds to the current halal business literature by providing this integrative perspective and provides the basis for future empirical research in halal competitiveness.