Exploring the Influence of Management Capabilities on Halal Cosmetics Supply Chain Agility Practices and Organizational Performance in Malaysia Halal Cosmetics Sector

Abstract

The global halal cosmetics sector has emerged as a high-growth segment within the halal economy, yet its supply chain dynamics remain significantly under-explored compared to the food and pharmaceutical sectors. In the current landscape, manufacturers face increasing pressure due to tightening global regulations such as the mandatory halal certification requirements slated for 2026 and rising consumer demand for ingredient transparency and Shariah-compliant formulations. This study examines the relationship between management capabilities, halal cosmetic supply chain agility practices (HCSCAP), financial performance, and operational performance. Using a quantitative approach, data were collected from 205 manufacturers registered with the National Pharmaceutical Regulatory Agency (NPRA) via an online survey. The results indicate a significant positive relationship between management capabilities and HCSCA. Furthermore, HCSCA was found to positively influence both financial and operational performance. These findings suggest that developing robust internal management competencies is essential for fostering agile supply chains capable of navigating the complexities of halal compliance. The study provides critical implications for manufacturers, highlighting that the implementation of effective management practices is a primary driver for enhancing organizational performance in the competitive halal beauty market.