Critical factors for an effective business value chain

Pekka Kess · Kris M. Y. Law · Rapee Kanchana · Kongkiti Phusavat

25 citations0/0 files storedIndustrial Management & Data Systems

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Quality and Supply Management Collaboration in agile enterprises Corporate Governance and Management

Abstract

Purpose The purpose of this paper is to identify critical factors for effective business value chains in the electrical and electronic industries. This knowledge can benefit private firms as well as their supplier management and customer fulfillment, and public agencies for relevant policy initiatives. Design/methodology/approach The research methodology includes the survey development and the statistical analyses, especially the use of the Pearson correlation. Altogether, a total of 129 firms participated in this study, 97 companies from Hong Kong and 32 firms from Thailand. Included in this methodology are a pre‐test of a survey and follow‐up discussions with participating executives. Findings An effective business value chain essentially depends on good operational systems and management, and information and communication technology (ICT) linkages with both suppliers and customers. There are a total of five critical factors for effective business value chains. For example, an effective business value chain is influenced by how well production and delivery systems are managed. In addition, how well a manufacturer can manage its operation is influenced by customers with effective information and communication infrastructures. Practical implications The five identified factors can be used as a checklist for planning and/or monitoring the effectiveness of a business value chain. The findings also helps develop a new initiative to be undertaken by Thailand's Department of Industrial Work when attempting to strengthen business value chains within various industrial clusters. Originality/value The findings underline the need to focus on data harmonization and to adapt ICT standards, such as Control Objectives for Information and related Technology COBIT and Projects in Controlled Environments PRINCE for data sharing and software development, to promote supplier audits when sustaining a business value chain.

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References

1976Business research methods 1998Supply Chain Management: Implementation Issues and Research Opportunities 1990Empirical research methods in operations management 1996Marketing and Discontinuous Innovation: The Probe and Learn Process 2004Build‐to‐order supply chain management: a literature review and framework for development 2003Supply‐chain linkages and operational performance 2000Implementing value strategy through the value chain 1986A Comparison of Strategies to Dampen Nervousness in MRP Systems

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