International Journal of Academic Research in Business and Social Sciences

search-icon

Industry 4.0 Adoption in Malaysian Halal Food Manufacturing: Opportunities, Challenges and Future Research for Strengthening Halal Tourism Competitiveness

Open access
Industrial Revolution 4.0 (IR4.0) is reshaping manufacturing systems through digital integration, automation, and real-time data analytics, with significant implications for halal food manufacturing in Malaysia. However, existing studies largely examine IR4.0 adoption in general manufacturing contexts, leaving limited integration of halal compliance requirements and the linkage to halal tourism competitiveness. This review paper aims to synthesize literature on IR4.0 adoption in Malaysian halal food manufacturing by identifying opportunities, challenges, and future research directions, while explicitly connecting these insights to halal tourism development. Using a structured narrative literature review approach, relevant theoretical and empirical studies were analyzed and categorized based on opportunities, barriers, and research gaps. The review highlights opportunities in digital traceability, smart monitoring, productivity enhancement, and tourism-linked trust building, alongside challenges related to cost, legacy integration, workforce readiness, compliance complexity, and policy awareness. Future research should focus on halal-centered digital architectures, longitudinal adoption pathways, policy effectiveness, and tourism-driven environmental pressures.
Ab. Talib, M. S., & Hassan, N. A. (2021). Adoption of Industry 4.0 technologies in the halal food industry: A review. In Proceedings of the 3rd International Conference on Computing, Mathematics and Statistics (iCMS2019) (pp. 367–375). Springer.
Abdul Rahman, A., & Wahid, N. (2020). Industrial Revolution 4.0 and halal industry. In R. Din & M. Alam (Eds.), Halal industry and research (pp. 19–38). Springer.
Ahmad, A., Tangngareng, T., Harun, A., & Masri, M. (2019). Halal product: New market opportunity in challenging the Industrial Revolution 4.0. EAI Conference Proceedings.
Ali, K., & Johl, S. K. (2023). Impact of total quality management on industry 4.0 readiness and practices: Does firm size matter? International Journal of Computer Integrated Manufacturing, 36(4), 567–589.
Amini, M., & Jahanbakhsh Javid, N. (2023). A multi-perspective framework established on diffusion of innovation (DOI) theory and technology, organization and environment (TOE) framework toward supply chain management system based on cloud computing technology for small and medium enterprises. International Journal of Information Technology and Innovation Adoption, 11, 1217–1234.
Balakrishnan, B., Othman, Z., & Zaidi, M. F. A. (2021). The impact of IR4.0 readiness on IR4.0 adoption among Malaysian e&e SMEs. International Journal of Technology Management and Information System, 3(1), 1–11.
Barham, H., Dabic, M., Daim, T., & Shifrer, D. (2020). The role of management support for the implementation of open innovation practices in firms. Technology in Society, 63, 101282. https://doi.org/10.1016/j.techsoc.2020.101282
Chandra, G. R., Liaqat, I. A., & Sharma, B. (2019). Blockchain redefining: The halal food sector. In Amity International Conference on Artificial Intelligence (AICAI).
Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approach. Sage Publications.
Galati, F., & Bigliardi, B. (2019). Industry 4.0: Adoption challenges and the role of sustainability. Procedia Manufacturing, 39, 1244–1251.
Government Report on IR 4.0 Adoption among SMEs. (2023). Challenges and opportunities for halal food SMEs in embracing IR 4.0 technologies. Department of Industrial Development, Ministry of Economic Affairs.
Gruijters, S. L. K. (2022). Understanding deductive reasoning in scientific research. Journal of Research Methodology, 14(3), 101–115.
Hamim, H., Kadir, M. N. A., & Shariff, M. N. M. (2021). SMEs retailing in Malaysia: Challenges for Industrial Revolution 4.0 implementation. In B. S. Sergi & A. R. Jaaffar (Eds.), Modeling economic growth in contemporary Malaysia (pp. 1–15). Emerald Publishing Limited.
Hassan, M. (2023). Understanding research design and its applications in social sciences. Journal of Research Methodology, 12(2), 34–50.
Kamarudin, M. K., Wahid, N., & Jalil, N. A. (2019). Industry 4.0: Potential implications and challenges for halal food industry. Journal of Halal Industry & Services, 2(1), 21–28.
Malaysian Industry-Government Group for High Technology (MIGHT). (2018). Industry4WRD: National Policy on Industry 4.0. Retrieved from https://www.might.org.my/industry4wrd-national-policy-on-industry-4-0/
McKinsey & Company. (2020). The Fourth Industrial Revolution and its impact on the halal food industry.
Musofiana, I., et al. (2021). Halal products: Industrial Revolution Era 4.0 and Society 5.0. In Proceedings of Legal International Conference and Studies.
Nimfa, H. M. D. T., Maimako, L. N., & Idris, I. R. (2020). Effect of digital manufacturing and consumer behaviour on firm sustainability in Malaysia. Current Issues in Entrepreneurship and Business, 70–96.
Rai, R. S., & Selnes, F. (2019). Conceptualizing task-technology fit and the effect on adoption: A case study of a digital textbook service. Information & Management, 56(8), 103161. https://doi.org/10.1016/j.im.2019.04.004
Raj, A., Dwivedi, G., Sharma, A., de Sousa Jabbour, A. B. L., & Rajak, S. (2020). Barriers to the adoption of industry 4.0 technologies in the manufacturing sector: An inter-country comparative perspective. International Journal of Production Economics, 224, 107546. https://doi.org/10.1016/j.ijpe.2019.107546
Samsudin, N. A., Alias, Z., Khan, N. U., & Bazkiaei, H. A. (2021). Pathways towards sustainable business model for Malaysian microenterprises. Academy of Strategic Management Journal, 20, 1–9.
Sayginer, C., & Ercan, T. (2020). Understanding determinants of cloud computing adoption using an integrated diffusion of innovation (DOI)–technological, organizational and environmental (TOE) model. Humanities & Social Sciences Reviews, 8(1), 91–102.
Selltiz, C., Deutsch, M., & Cook, S. W. (2019). Research methods in social relations. Holt, Rinehart, and Winston.
SME Corporation Malaysia. (2022a). SME definitions. https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition
SME Corporation Malaysia. (2022b). MSME statistics. https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-statistics
Songling, Y., Ishtiaq, M., Anwar, M., & Ahmed, H. (2018). The role of government support in sustainable competitive position and firm performance. Sustainability, 10(10), 3495. https://doi.org/10.3390/su10103495
Tay, S. I., Alipal, J., & Lee, T. C. (2021). Industry 4.0: Current practice and challenges in Malaysian manufacturing firms. Technology in Society, 67, 101749. https://doi.org/10.1016/j.techsoc.2021.101749
Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). Processes of technological innovation. Lexington Books.
Vuong, T. K., & Mansori, S. (2021). An analysis of the effects of the fourth industrial revolution on Vietnamese enterprises. Management Dynamics in the Knowledge Economy, 9(4), 447–459. https://doi.org/10.2478/mdke-2021-0030
Yu, F., & Schweisfurth, T. (2020). Industry 4.0 technology implementation in SMEs—A survey in the Danish–German border region. International Journal of Innovation Studies, 4(3), 76–84. https://doi.org/10.1016/j.ijis.2020.05.001
Albawardi, S. S. J. S., Rusli, N. S. B., & Alshami, S. A. (2026). Industry 4.0 Adoption in Malaysian Halal Food Manufacturing: Opportunities, Challenges and Future Research for Strengthening Halal Tourism Competitiveness. International Journal of Academic Research in Business and Social Sciences, 16(2), 762–772.