Determinants of SME Performance in the Halal Herbal Industry: A Proposed Theoretical Framework

The Malay-Bumiputera community constitutes the largest population in Malaysia, particularly in the traditional manufacturing sector. In order to penetrate international markets, every business must possess the capability to manage all components of their supply chain. To achieve this goal, the government has implemented various economic programs and packages aimed at enhancing the management of the industrial supply chain. These measures not only seek to improve the competitiveness of local businesses in the international market but also aim to strengthen the role of the Malay-Bumiputera Islamic community in the global economic arena. Unfortunately, the recent outbreak of COVID-19, as well as the war between Russia and Ukraine have disturbed the nation's economic development, including the economic packages. In order to improve the internationalization process and the performance of the Malay-Bumiputera economy in the Small and Medium Enterprise (SME) industry, the current government must introduce new plans or aid packages that are capable of stimulating the economy and solving issues that arise in the post-pandemic environment. Based on the theory of Resource-Based View (RBV), the debate in this article links economic stimulus packages, supply chain, internationalization and firm performance in the Malay-Bumiputera halal herbal SME industry. This framework suggests that new intervention measures should be urgently introduced to help the industry to recover post COVID-19. It can be used in future research to assess the impact of various government aids on the internationalization and performance of Malay-Bumiputera halal herbs industry in the post-pandemic era. .