When Trust Is Not Enough: Reconciling Relational Trust and Verifiable Halal Assurance in Fragmented Beef Supply Networks Onni Meirezaldi(a*), Hamidah Nayati Utami(a), Agung Nugroho Luthfi Imam Fahrudi(a), and Saparila Worokinasih(a)
a)Universitas Brawijaya, Business Administration Department, Jalan Veteran, Malang, Indonesia
*meirezaldi[at]ub.ac.id
Abstract
Maintaining halal integrity in beef supply networks is not only about following certification requirements at the organisational level. In Indonesia, beef passes through many hands, such as slaughterhouses, distributors, traders, and retailers. Each of these actors is independent, so halal assurance depends on how well they coordinate and share information. In the traditional Indonesian beef distribution system, there are many organisational relationships. Repeated transactions and trust between people can help business cooperation. However, to verify halal status, it is necessary to have supporting information that is credible and easy to access. This situation creates a challenge in governance, because there is a tension between trust based on relationships and the need for evidence to prove halal assurance, especially in supply networks that are fragmented. This paper discusses how trust between organisations and formal verification can work together to maintain credible halal assurance across different organisations. By using literature on interorganizational governance, relational trust, supply chain transparency, information quality, and halal supply chain management, this paper introduces a preliminary Trust and Verification Alignment Framework. The framework shows that trust can help with information sharing and cooperation, but trust alone is not enough to guarantee that halal assurance information is accurate, complete, or can be checked. Formal verification, with the support of good information practices and information systems, gives extra ways to record, exchange, and check halal-related information. This paper adds to the discussion on halal supply chain management by showing how governance can combine trust and verification for better halal assurance. It also gives a basic idea for future research to strengthen halal assurance in Indonesia^s fragmented beef supply networks.
