Supply chain management practices in the electronics industry in Malaysia

Veera Pandiyan Kaliani Sundram · VGR Chandran

145 citations0/0 files storedBenchmarking An International Journal

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Quality and Supply Management Supply Chain and Inventory Management Sustainable Supply Chain Management

Abstract

Purpose The purpose of this paper is to explore the effects of different dimensions of supply chain management practices (SCMP) on supply chain performance (SCP) in the electronics industry in Malaysia. Design/methodology/approach The study employed the quantitative method where convenience sampling and self‐administrated survey questionnaires were sent to 125 electronics firms in Malaysia. The research framework was tested using variance‐based structural equation model, the partial least squares (PLS) method. Findings The empirical results of PLS indicate that six of the seven dimensions of SCMP have a significant positive effect on SCP. Furthermore, agreed vision and goals shows a greater influence than other dimensions of SCMP. Research limitations/implications This study took a narrow focus solely on the electronics manufacturing industry with a relatively small sample size of respondents. Also the data were only collected from single respondents in an organization. However, being the first study to explore the dimensions of SCMP and how those dimensions relate to SCP, the study shapes the pathway for future research. Practical implications The results offer insights to SCM practitioners and policy makers on the importance of SCMP to increase the competitiveness of manufacturing industry in terms of SCP. Originality/value This study employs a newly developed framework based on existing theoretical arguments to empirically examine the relationship between two important factors, the SCMP and SCP. This study is perhaps one of the first to address the effect of SCMP that includes combination of comprehensive practices and system approach towards the overall performance of the supply chain.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1988On the Evaluation of Structural Equation Models 1995The Theory of the Growth of the Firm 1998The partial least squares approach for structural equation modeling.2006The Core Competence of the Corporation 2002Absorptive Capacity: A Review, Reconceptualization, and Extension

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