Determinants of effective supply chain partnering in the context of electrical and electronics firms in Malaysia

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Date
2006
Authors
Rajagopal, Premkumar
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Abstract
Supply chain management has been recently introduced to address the partnering of organizational functions ranging from the ordering and receipt of raw materials throughout the manufacturing processes, to the distribution and delivery of products to the customer. Its application demonstrates that this idea enables organizations to achieve improved procurement, lowered operations cost, and lower inventory. There are three major objectives for this research. The first objective is to have an understanding of supply chain partnering and to examine whether the effectiveness of supply chain partnering is influenced by factors such as supply chain infrastructure, resource sharing, information flow and organizational linkage. The second objective is to identify a set of the most significant factors that influence the effectiveness of supply chain partnering. The third objective is to examine if scalable partnering moderates the relationship between effectiveness of supply chain partnering with supply chain infrastructure, information flow, resource sharing and organizational linkage. This dissertation extends the previous work done on the supply chain relationship and identifies a moderator that influences the supply chain partnering. This study brings together information about supply chain partnering from (129) electrical and electronics companies and detailed experiences of the supply chain partnering from 2 leading quality electrical and electronics companies in Malaysia. Factors which influence the effectiveness of supply chain partnering and how level of scalable partnering influences the effectiveness of supply chain partnering, are examined. The findings from mail survey study indicate the importance of such factors as the supply chain infrastructure, information flow and organizational linkage, in explaining a company's effectiveness in implementing the supply chain partnering. At a statistical level of investigation, this implicitly suggests that the factor of information flow and organizational linkage are the most important factor, which influences the effectiveness of supply chain partnering. In the second part of the study, case study survey data is used to shed light on how the factors of supply chain infrastructure, resource sharing, information flow and organizational linkage influence the effectiveness of supply chain partnering. The case studies appear to suggest that the organizational linkage and information flow have the highest explanatory power with regard to companies’ effectiveness of supply chain partnering. Instead, the case study suggests that the effectiveness of supply chain partnering is less driven by resource sharing and supply chain infrastructure. High scalable partnering is more effective than low scalable partnering for all levels of organizational linkage and resource sharing, which influences supply chain partnering. This dissertation presents two new variables, called “resource sharing” and “scalable partnering” to enhance supply chain partnering effectiveness. Expected outcomes and contributions as well as future research are also provided.
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PhD
Keywords
Management , Supply chain partnering , Electrical and electronics firms
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