Supply chain management practices in the electronics industry in Malaysia

Abstract

PurposeThe 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/approachThe 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.FindingsThe 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/implicationsThis 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 implicationsThe 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/valueThis 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.

The Impact of Supply Chain Management Practices on Supply Chain Performance in Jordan: The Moderating Effect of Competitive Intensity

“…The moderating effect of competitive intensity on the relationship between postponement and SC effectiveness was negative, but insignificant. Our results were consistent with the results of Li et al (2004) and Sundram et al (2011) who found that postponement affected competitive advantage and SC performance respectively. …”

“…That means the higher customer integration efforts undertaken when competitive intensity exists, the lower SC efficiency levels are yielded. Generally, our results were consistent with the results of Sundram et al (2011) and Lee et al (2007) who found that customer integration did not affect SC performance and cost performance respectively. The possible explanation is that customer integration efforts require additional investments and resources to enable a timely and reliable contact with customers.…”

“…Ibrahim and Ogunyemi (2012) measured SC performance using SC flexibility and SC efficiency. Some authors used one construct to measure SC performance (i.e., Sundram et al, 2011;Gunasekaran et al, 2004;Elmuti, 2002). Efficiency and effectiveness aspects have been widely used in the literature to measure SC performance (Lee et al, 2007;Ibrahim & Ogunyemi, 2012;Tan et al, 1998;Li et al, 2006).…”

“…He found that none of the three SCM practices affected flexibility performance, and only SC design affected output performance and resource performance. Sundram et al (2011) measured SCM using the following constructs: supplier and customer relationships, level and quality of information sharing, postponement, agreed goals and vision, and reward/risk sharing. They found that all SCM practices, except customer relationship, positively affected SC performance.…”

The Effect of Supply Chain Linkage on Micro and Small Enterprises’ Performance

“…In addition, information sharing among supply chain members contributes to risk-sharing, especially during a stage of transferring the information (Kocoglu, et al 2011). Information sharing has been previously proven to have a significant and positive relationship with business performance (Moberg, Cutler, Gross, & Speh, 2002;Fawcett, Osterhaus, Magnan, Brau, & McCarter, 2007;Sanders, Autry, & Gligor, 2011;Sundram, Ibrahim, & Govindaraju, 2011). Sanders et al (2011) expect that the ultimate cause of achieving good firms' performance is by sharing truthful information at a strategic and operational level.…”