Malaysia’s position as a global leader in the halal industry faces significant challenges due to regulatory gaps, inconsistent standards, and weak enforcement mechanisms in cross-border trade. This study investigates how Malaysian halal logistics firms address these institutional voids by employing adaptive strategies such as informal partnerships, supplementary certifications, and market-specific operational adjustments. Through qualitative interviews with 20 key stakeholders, including export managers, halal auditors, and freight forwarders, the research examines the conflict between formal halal compliance requirements and the practical realities of international trade. The findings indicate that redundant certification processes raise operational costs by 15 to 25 percent, while reliance on informal solutions may compromise halal integrity despite their effectiveness. The study underscores the importance of establishing unified global halal standards to improve efficiency and ensure supply chain transparency. Recommendations include fostering international cooperation through bilateral agreements, enhancing infrastructure in developing markets, and implementing advanced traceability technologies. This research advances institutional theory and transaction cost economics by demonstrating how firms navigate regulatory complexities while maintaining both compliance and commercial viability.
Sarbani et al. (Wed,) studied this question.