Exploring determinants of halal traceability systems in the Indonesia cosmetics industry

Paper aims This paper investigates how variability in certification requirements, organizational capabilities, and traceability technologies influences halal traceability system readiness in the Indonesian cosmetics industry. Guided by Institutional Theory, which explains how external regulatory pressures shape organizational behavior, and the Resource-Based View (RBV), which highlights the role of internal capabilities, this study aims to identify the determinants crucial for ensuring halal traceability system readiness amid regulatory diversity and supply chain complexity. Originality This study fills a significant research gap by focusing on halal traceability in the cosmetics sector, an area predominantly studied in the food industry. It offers an integrated conceptual framework that links institutional Theory and RBV to enhance traceability readiness. Research method Qualitative analysis was conducted using semi-structured interviews with key stakeholders, including regulatory bodies, industry representatives, and material suppliers. Data was analyzed systematically with ATLAS.ti 23, ensuring reliability through inter-coder agreement. Main findings Institutional pressures influence traceability readiness, with organizational capabilities and traceability technologies playing critical roles in addressing compliance challenges. Key factors include adaptive compliance, organizational responsiveness, and the traceability integration of material tracking, regulatory systems, and compliance Implications for theory and practice As a qualitative and exploratory study, the findings are context-specific and not intended for statistical generalization. They extend Institutional Theory and RBV by demonstrating how regulatory pressures and internal capabilities shape halal traceability readiness. The study provides actionable strategies for policymakers to harmonize certification systems and for industry stakeholders to enhance training, adopt adaptive compliance, and integrate traceability technologies to support halal system integrity.