Supply chain management in ASEAN automotive manufacturing industry

Abstract

This study uses a set of survey data collected from Association of Southeast Asian Nations (ASEAN) automotive original equipment manufacturer (OEM) suppliers to categorise supply chain management (SCM) practices into supply chain integration, information sharing, and facility location selection constructs, and subsequently examines the relationship between these constructs and operational performance. We use confirmatory factor analysis to categorise 10 measured variables into our three SCM constructs, and hierarchical cluster analysis to separate the data into two clusters. Multiple regression is used to test the relationship between the constructs and performance. Our analyses support the propositions that SCM practices of ASEAN OEM suppliers in the automotive industry can be grouped into three constructs. Moreover, two of these three constructs are found to be positively related to operational performance. This study suffers from the common limitations related to empirical research, including the reliance on a single respondent from each firm. ASEAN OEM suppliers in the automotive industry can use our results to deploy suitable SCM practices to enhance competitive advantage.