Supply chain management practices in the electronics industry in Malaysia Consequences for supply chain performance

• Published in: Benchmarking : an international journal Vol. 18; no. 6; pp. 834 - 855
• Main Authors: Pandiyan Kaliani Sundram, Veera, Razak Ibrahim, Abdul, Chandran Govindaraju, V.G.R.
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2011
• Subjects: Competition; Competitive advantage; Electronics; Electronics industry; Emerging markets; Empirical analysis; Least squares method; Management; Manufacturing; Mathematical analysis; Mathematical models; Sampling; Studies; Suppliers; Supply chain management; Supply chains; Value chain; Malaysia
• ISSN: 1463-5771; 1758-4094
• DOI: 10.1108/14635771111180725

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.