Developing A PDCA-Based Halal Value Chain Model For Food Msmes In A Non-Muslim-Majority Context: A Case Study From Bali, Indonesia

Abstract

The global demand for halal food products continues to rise, requiring the establishment of effective halal value chains (HVC), particularly within micro, small, and medium-sized enterprises (MSMEs). However, in non-Muslim-majority regions such as Bali, Indonesia—a global tourist destination—the implementation of HVCs among food-based MSMEs remains underdeveloped due to cultural, regulatory, and market-related challenges. This study aims to develop an integrated model for strengthening the HVC ecosystem using the PDCA (Plan–Do–Check–Act) cycle as a quality management approach. Using a mixed-methods research design, the study combines quantitative surveys from 60 food MSMEs and qualitative interviews with key stakeholders, including halal certification bodies, local government agencies, and supply chain actors. The research maps current practices along the halal value chain and identifies bottlenecks in sourcing, production, distribution, and marketing. The PDCA framework is then applied to each stage of the value chain to guide systematic improvement. The findings reveal critical gaps in awareness, documentation, and process standardization, particularly at the "Plan" and "Check" stages. A conceptual model is proposed to help MSMEs implement halal assurance procedures sustainably, with emphasis on stakeholder collaboration, incremental capacity building, and market education. This study contributes to the halal management literature by offering a replicable strategy for MSMEs operating in culturally diverse environments, and provides policy implications for advancing inclusive halal ecosystems.