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This study aims to analyse the potential impacts of free trade agreement (FTA) between Indonesia and Organisation of Islamic Cooperation (OIC) countries by eliminating import tariffs in the halal food sector on welfare, gross domestic product (GDP) and trade balance. OIC countries as the second-largest organisation after the United Nations are the potential markets for the halal food industry.

This study used the Global Trade Analysis Project database version 10 by adopting a computable general equilibrium (CGE) model for two scenarios. The first scenario stated that Indonesia should conduct an FTA with ten potential OIC countries as export destination, while the second one stated that it should be conducted with all OIC countries.

Indonesia is predicted to get the highest increase in welfare by making an FTA with all OIC countries. Scenario 2 showed that Indonesia had much higher changes in real GDP with a positive change of 0.0018%. Even though it is projected to experience a surplus in the trade balance in both scenarios, Indonesia is predicted to experience a decline in exports for the particular halal food sector. The findings contribute some new insights to the existing literature, revealing an alignment between economic integration and the concept of international trade in Islam.

The limitation of this study is the available data that cannot describe the population of all OIC countries. Only 31 countries out of a total of 56 OIC countries can be used in research. The scope of research is limited to analysing FTAs between Indonesia and OIC countries in the form of abolishing import tariffs and does not include non-tariff barrier issues such as halal certification.

The preferential trade agreement is considered relevant as Indonesia’s initial commitment to conduct a bilateral trade with ten selected OIC countries. The Indonesia Government, however, still needs to make several mitigation efforts in various sectors experiencing losses as a result of economic integration, such as by creating a more conducive business climate, supporting the sources of capital, facilitating bureaucratic affairs, as well as providing tax incentives.

This paper contributes to the literature by focusing on the critical aspects of the FTA’s impacts on halal food sectors by optimizing the reduction of import tariffs of OIC countries. Different from previous studies, this study applied a static CGE model to examine the impacts of FTA on macroeconomic indicators.

The limited existing literature on the future research direction regarding how servitisation and the halal supply chain interact motivates this study. The paper aims to integrate servitisation into the halal supply chain by proposing an integration roadmap for successful adoption in the halal industry.

The study used the preferred reporting items for systematic reviews and meta-analyses method. Initially, 1,830 documents from Scopus and Web of Science were reviewed. After screening and refining, 1,241 documents remained. The authors then assessed these in full text, narrowing it down to 61 papers for the study.

The study discovered that the literature concerning servitisation and halal supply chains lacks essential conceptualisation, presenting an opportunity for exploration within the halal industry. Furthermore, it revealed that integrating servitisation into the halal supply chain can foster sustainable business growth and enhance customer satisfaction. Additionally, the study indicated that the interaction between servitisation and the halal supply chain may impact customers’ purchasing decisions and improve profit generation performance.

The study confirmed that integrating servitisation into the halal supply chain is crucial. The proposed roadmap aims to enhance the firm’s service delivery performance and impact customer purchasing behaviour through increased brand loyalty. In terms of industrial implications, the study offers guidance for industries transitioning to servitisation. The integration of servitisation in the halal supply chain can enhance efficiency and the ability to provide halal products that align with customer preferences and requirements.

This study suggests integrating servitisation into halal supply chains and provides a roadmap for exploring future research directions towards sustainable business growth. It not only offers thematic research direction but also practical insights. The roadmap can guide future research and development, enhancing business efficiency and customer experiences. This study reveals the potential of servitisation in halal supply chains and encourages further research on their interaction.

The purpose of this paper is to analyze the impact of the halal value chains (HVCs) in the Islamic boarding schools (IBSs) for the food and fashion industry on socio-economic transformation, focusing on changes in entrepreneurial attitudes, quality of life and social inclusion. The study also incorporates HVCs as a mediating variable to assess the indirect influence of Sharia financial inclusion and economic digitalization on socio-economic transformation.

This research uses a quantitative approach using primary data collected through surveys. The population consists of IBSs registered in the Independence Program of the Ministry of Religious Affairs of the Republic of Indonesia. The research sample was selected using purposive sampling, and the research model was tested using partial least squares structural equation modeling with WarpPLS 8.0 software.

The results of the direct analysis indicate that halal value chain (HVC) has a positive and significant effect on socio-economic transformation. The indirect analysis reveals that HVC plays a strategic role in facilitating the impact of Sharia financial inclusion and digital economy adoption on changes in entrepreneurial attitudes, quality of life and social inclusion. The findings are further validated through multigroup analysis, demonstrating the robustness of the result.

The results highlight two key points. First, the positive characteristics of the IBS-HVCs, enabled by Sharia financial inclusion, will drive the continuous development of new services, products, networks, collaborations and capital support, leading to the expansion of a financially inclusive and equitable HVC system from the IBSs to the broader community, with significant social and economic impacts nationally and internationally. Second, the adoption of economic digitalization within IBSs will enhance productivity and efficiency for business management, fostering expanded business models and facilitating upward social mobility.

To the best of the authors’ knowledge, this study is the first to explore the role of HVC in socio-economic transformation. Additionally, it uses HVC as a mediating variable to explain the relationship between Sharia financial inclusion, digital economy and socio-economic transformation. A robustness test through multigroup analysis further strengthens the study’s contributions.