Abstract

Purpose: This study examines the determinants influencing Malaysian SMEs’ intention to adopt Halal traceability systems in the food and beverage (F&B) industry, aiming to support Malaysia’s goal of becoming a global Halal hub. Using the Technology-Organization-Environment (TOE) framework, the research explores technological, organizational, and environmental factors affecting adoption. Research design, data and methodology: A quantitative, cross-sectional survey was conducted with 245 SMEs using structured questionnaires, and relationships among perceived usefulness, perceived ease of use, top management support, employee training, government support, competitor pressure, and adoption intention were analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that perceived usefulness, top management support, government support, and competitor pressure significantly and positively influence adoption, while perceived ease of use and employee training negatively affect it, indicating that complexity and insufficient training may hinder uptake. Result: The findings underscore the importance of management commitment, functional value, and external pressures, alongside the need to simplify implementation. Conclusions: The study concludes that government incentives, regulatory facilitation, and policy frameworks are crucial for overcoming adoption barriers, while industry collaboration can foster best practices and readiness. This research contributes to Halal supply chain literature and provides practical guidance for policymakers, industry players, and SMEs to enhance Halal traceability adoption.