Measuring the performance of firms’ supply chain management practices and competition capabilities: mediating effect of halal credence

Purpose The purpose of this study is to explore how Supply Chain Management (SCM) practices, competition capabilities and halal credence are integrated, as well as how these factors collectively affect customer satisfaction among Indonesian manufacturing firms. Design/methodology/approach The authors collected research data via questionnaires filled by supply chain managers and top executives at 100 Indonesian manufacturing companies. The SmartPLS software was used to analyze the data using Partial Least Squares Structural Equation Modeling. Findings Effective SCM practices and robust competitive capabilities positive significantly enhance halal credence, which mediates the relationship with customer satisfaction. Strategic supplier partnerships and competitive advantages, such as cost leadership, higher quality of SCM processes and reliable delivery, lead to greater customer satisfaction. Research limitations/implications The study’s scope is restricted to manufacturing firms, and it might not be applicable to other types of industry. The research also relies on cross-sectional data, hence longitudinal studies are suggested for future research to explore the dynamics of the variables’ relationships. Practical implications The result of this study provides guidance for business owners and managers on integrating SCM strategies with halal compliance to enhance customer satisfaction and competitive advantage. Social implications The result of this study also highlights the role of ethical and religious standards, specifically halal credence, in fostering customer trust and satisfaction, with broader implications for businesses serving Muslim consumers. Originality/value This research explores the unique intersection of SCM practices, competitive capabilities and halal credence in enhancing customer satisfaction, offering valuable insights and strategies for companies in predominantly Muslim markets.