Synergizing Halal Compliance with Balanced Scorecard Approach: Implications for Supply Chain Performance in Indonesian Fried Chicken MSMEs

The increasing demand for halal-certified food has intensified the need for micro, small, and medium enterprises (MSMEs) to adopt performance frameworks that capture both operational efficiency and halal compliance. Although previous studies have applied Balanced Scorecard (BSC) to evaluate supply chain (SC) performance, the incorporation of halal compliance into this framework has not been examined, especially in the context of MSMEs. In this study, we developed and tested a BSC-based framework that embeds halal principles to assess SC performance. The research involved 130 MSMEs and 130 consumers engaged in the fried chicken sector in Indonesia. An exploratory mixed-methods design was applied, combining qualitative interviews with quantitative analysis using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The findings revealed customer perspective (CP) as the strongest driver in SC performance (β = 0.496, p < 0.001), whereas financial, business process, and growth perspectives demonstrated comparatively weaker or statistically insignificant effects. Furthermore, the findings underscore that consumer trust and halal adherence represent strategic assets for MSMEs, enabling stronger competitiveness and sustainable operations. By incorporating halal compliance with performance measurement theory, this study provides novel insights and practical guidelines for MSMEs and policymakers to strengthen halal food supply chains in emerging markets.