An Examination of Halal Fashion Supply Chain Management Risks Based on the Fuzzy Best-Worst Approach

An Examination of Halal Fashion Supply Chain Management Risks Based on the Fuzzy Best-Worst Approach

Elie Sumarliah, Tieke Li, Bailin Wang, Indriya Indriya
Copyright: © 2021 |Pages: 24
DOI: 10.4018/IRMJ.2021100104
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Abstract

Risk management is indispensable. Halal fashion is an emerging business globally, yet studies of Halal fashion supply chain (HFSC) risk management are scarce. An in-depth literature review discovered 40 risk factors in the HFSC. A group of professionals active in the field classified these risks into seven categories. The fuzzy best-worst approach was then used to rank the risk categories and risk factors. Manufacturing and design risks have the highest significance in HFSC management, and risks in the financial and sustainability categories the lowest. The paper contributes significantly by delivering an extensive inventory of HFSC management risks and their relative rankings that can serve as a foundation for the development of a large number of theoretical studies.
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Introduction

In the latest decade, scholars have focused on risk management in numerous study areas, including supply chain (SC) management (Mangla et al., 2015; Vian et al., 2017). The rapid growth in industry situation, modernization, internationalization, extensive technological changes, and innovation increase the risk in nearly all human life components (Wu and Blackhurst, 2009). Likewise, this rapid growth enhances the risk that exists in SC. The complexity of SC's network system, subcontracting activities, and internationalization influence SC activities, functions, and anticipated purposes, e.g., operationally responsive business activity and operating expense (Ganguly and Kumar, 2019). Therefore, Christopher and Lee (2004) confirm that managing risk is a vital component of SC management to prevent SC risks' undesirable effects on SC processes. Therefore, Christopher and Lee (2004) confirm that managing risk is a vital component of SC management to prevent SC risks' undesirable effects on SC processes.

The halal fashion supply chain (HFSC) is similar to a traditional supply chain coping with the crucial risks. HFSC enables the manufacture of halal fashion goods and distributes them to the customer. Halal goods are not limited to food, but also inclusive beverages, pharmaceuticals, cosmetics, and especially fashion products (apparel, shoes, bags, and accessories). Such commodities are associated with human wellbeing and faith (Khan et al., 2020). For example, clothing might contain harmful materials that can cause skin irritation or cancer (Bendix, 2019); meanwhile, halal fashion should be made of lawful materials to protect customers from skin cancer (Dumas, 2016), and its design also should be extended, loose, and modest to accommodate Islamic faith (Hwang and Kim, 2020). Thus, any risk influencing HFSC could harm customers' wellbeing and brand image. Accordingly, managing risks has become a vital part of the HFSC management to handle these susceptibilities.

Many present-day studies concentrate on managing risks in the traditional SC and particular SC, e.g., food SC and green SC (Kumar and Kansara, 2018; Mangla et al., 2015). Some events associated with halal goods' production and consumption generated numerous problems, causing the HFSC management riskier than traditional SC management. For example, although many famous global brands have started creating halal fashion in the past five years (Sumarliah et al., 2021a), and a pro-Hijab movement has also been promoted in the US recently (Hwang and Kim, 2020), hijab (i.e., the most well-known type of halal fashion) is still banned in some non-Muslim countries such as France (Dumas, 2016). Regardless of this issue, risk management in the perspective of the HFSC is not receiving significant consideration from scholars and practitioners.

Some literature has been focused on managing risks of halal product SC. For example, Ali et al. (2014) investigated the integrity risk through SC integration in halal food, while Haleem et al. (2018) examine the risks in implementing halal practices in logistics operations. The market size of halal fashion goods is increasing globally: Muslim spending on halal fashion (apparel and footwear) was $283 billion in 2018 and estimated to reach $402 billion in 2024 (“State of,” 2020). Regardless of a big halal fashion business, there is still a scarcity in research concentrated on halal fashion goods in the field of SC risk management.

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