The Impact of Supply Chain Integration on Operational Capability in Malaysian Manufacturers
Author(s) -
Thoo Ai Chin,
Abu Bakar Abdul Hamid,
Amran Raslic,
Low Hock Heng
Publication year - 2014
Publication title -
procedia - social and behavioral sciences
Language(s) - English
Resource type - Journals
ISSN - 1877-0428
DOI - 10.1016/j.sbspro.2014.04.030
Subject(s) - supply chain , structural equation modeling , resource (disambiguation) , process management , order (exchange) , computer science , systems engineering , risk analysis (engineering) , business , engineering , marketing , computer network , finance , machine learning
This study aims to explore the effect of supply chain integration (SCI) on operational capability. Using data collected from 201 Malaysian small- and medium-sized manufacturers (SMMs) and rigorous structural equation modeling methods, a total of one main effect and four sub-effects were hypothesized and tested. All the proposed hypotheses were found to be significant, suggesting positive relationships between SCI and operational capability, as well as between sub-constructs of SCI and operational capability. Overall, the findings are particularly important for SMMs owing to resource paucity and the need to draw upon SCI in order to ensure a sustainable operational capability. Recommendations for how to improve operational capability are provided accordingly
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