Competitive Advantage of Digital Business Models in The Halal Industry: A Comparative Analysis of Traditional Approaches

Abstract

Digital business models offer significant competitive advantages for business actors in the halal industry compared to traditional business approaches. This study aims to identify and analyze these advantages through a systematic literature review of relevant empirical studies and theoretical frameworks. By using a descriptive qualitative approach based on library research, this research explores how digital technologies such ase-commerce, social media, blockchain, and data analytics improve market access, operational efficiency, and consumer trust in the halal industry. The analysis results show that digital transformation enables the expansion of global market reach, optimization of the halal supply chain, more efficient management of halal certification, and increased customer engagement. These advantages provide substantial added value compared to traditional methods that are often constrained by geographical limitations, high operational costs, and lack of transparency. However, the implementation of this technology requires investment in adequate digital infrastructure, development of competent human resources, and a supportive regulatory framework. This study provides strategic insights for halal business actors, especially Micro, Small, and Medium Enterprises (MSMEs), to adopt and optimize digital strategies to increase competitiveness in an increasingly competitive and dynamic global market. This study also underlines the importance of integrating sharia principles in the development of digital business models in the halal industry