A Study on the Determinants of Supply Chain Responsiveness in Supply and Distribution Industry in Malaysia

Abstract

Purpose - The purpose of this study is to examine the significance of supply chain strategies - Lean and agile supply chain - as well as the strategic supplier partnership and postponement towards the supply chain responsiveness.Design/methodology/approach - Applying the strategic-choice theory and the resource-based view of firms to the supply chain, in this study a research model are developed to demonstrate the premise that implementing proper supply chain practices to support and execute supply chain strategy that will enhance the responsiveness of the supply chain. The study utilizes survey data from 100 senior executives and managers in the purchasing and supply chain functions from manufacturing firms in Malaysia. The results are based on regression analysis and equation modelling by using SPSS software.Findings - The study finds that all supply chain strategies, namely, the lean, agile, strategic supplier partnership and postponement have a positive relationship towards the supply chain responsiveness.Practical Implications - For supply chain practitioners, the results indicate that firms benefit greatly if they consider the strategies of their supply chain and that such a matching yield to improved the supply chain responsiveness.Originality/value - The paper theoretically develops logic for and empirically shows that all of the supply chain strategies are appropriate practices for mediating the impact on supply chain responsiveness. Considered at a higher level of abstraction, these relationships indicate a contribution to theory that explains how supply chain strategy can result in supply chain responsiveness, through the concurrent deployment of appropriately matched supply chain practices. This research is being done by using a small sample number of respondents which is 100.