The impact of supply chain collaboration on operational performance: Empirical evidence from manufacturing of Malaysia

Abstract

Indeed due to global advancement, rapid technological innovation, and enhancing regional influence, supply chain (SC) has become an essential element. Now, competition has shifted from organization to industry level; any disruption can not only disturb organization but also effect whole industry. Although Malaysia is known from palm oil and rubber but manufacturing sector has highest growth rate (7.1%) and second contributor to GDP and employer. Due to regional and economic shift toward China and India this sector is facing numerous problems. Supply chain collaboration has dogged the performance in various industries and in various regions. The aim of this study is to explore the potential benefits of supply chain collaboration toward achieving operational performance. This is an empirical investigation conducting among manufacturing industries in Malaysia. Factor analysis and multiple regressions through SPSS have been used for data analysis. The finding of this study reveals that two supply chain management approaches information sharing (IS), joint decision making (JDM) significantly effect, while Electronic Data Interchange (EDI) does not have a significant effect on operational performance.