<![CDATA[IntroductionHalal-certified food small and medium-sized enterprises increasingly need to demonstrate not only compliance with halal requirements but also the organizational capability to sustain competitiveness and long-term business performance. Halal Supply Chain Management Practices may provide this capability by integrating supplier governance, traceability, production control, employee competence, and continuous monitoring throughout the supply chain.ObjectivesThis study examines the influence of Halal Supply Chain Management Practices on Business Sustainability among halal-certified food small and medium-sized enterprises and evaluates Competitive Advantage as the mechanism linking halal supply chain capabilities to sustainable business outcomes.MethodThe study employed a quantitative explanatory design using cross-sectional survey data from 150 owners or managers of halal-certified food small and medium-sized enterprises in Kudus Regency, Central Java, Indonesia. The relationships among Halal Supply Chain Management Practices, Competitive Advantage, and Business Sustainability were analyzed using Partial Least Squares Structural Equation Modeling with measurement-model assessment, structural-model evaluation, and mediation analysis.ResultsHalal Supply Chain Management Practices had a strong positive effect on Competitive Advantage, while Competitive Advantage positively influenced Business Sustainability. The indirect effect of Halal Supply Chain Management Practices on Business Sustainability through Competitive Advantage was also positive and statistically significant, indicating that competitive positioning constitutes an important pathway through which halal supply chain capabilities generate sustainable organizational value. The model explained substantial variance in both Competitive Advantage and Business Sustainability. However, the direct relationship between Halal Supply Chain Management Practices and Business Sustainability should be interpreted cautiously because the available statistical outputs contain an inconsistency between the reported direct and total effects.ImplicationsThe findings indicate that halal certification should be treated as a foundation for broader capability development rather than as the endpoint of halal management. Managers and policymakers should emphasize supplier integration, traceability, employee capability, digital readiness, and post-certification development to strengthen long-term sustainability.Originality/NoveltyThis study integrates the Resource-Based View and Dynamic Capability Theory to conceptualize halal supply chain governance as a strategic and adaptive organizational capability. It contributes a mechanism-based explanation showing how Halal Supply Chain Management Practices can create Business Sustainability through Competitive Advantage in halal-certified food small and medium-sized enterprises.]]>
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