Abstract
This research paper is intended to investigate the supply chain operational performance and its potential factors that constitute an efficient supply chain operational performance in Japan and China. In order to perform this, the SCM logistics scorecard (LSC) has been utilized as a self-evaluation tool for participating companies. The LSC focuses on four decisive areas, namely, company strategy, planning and execution capability, logistics performance, and IT method and implementation. The number of participating companies was 554 from Japan and 236 from China. The scores in each assessment area were compared between the two countries. Subsequently, factor analysis has been conducted by using the result of LSC in order to identify the significant factors which established the operational performance of SCM in each country. The result of the factor analysis indicated that the structure in generating successful SCM in Japanese industry and the Chinese were considered similar in the aspect of SCM realization, SCM strategy and the utilization of IT along the chain. Finally, the correlation between extracted factors and financial bottom lines was conducted, which indicated that improving SCM performance brought positive impact on financial outcome, especially when IT utilization in cooperation with SCM organization strategy.
Highlights
With the information technology development and globalization of corporate activities, individual business in the 21st century, have no longer competed as a solely independent entity, but rather as a supply chain
The Supply Chain Management (SCM) Logistics Scorecard (LSC) has been developed based upon the concept of 5-point Likert scale, the definition on level 1-5 of each assessment item was clearly defined in its own way
According to the Hofstede’s cultural dimensions, the Chinese culture is identified in the low uncertainty avoidance (UAI) dimension (Hofstede, 1984), that is, Chinese people have a tendency to evaluate themselves rather leniency
Summary
With the information technology development and globalization of corporate activities, individual business in the 21st century, have no longer competed as a solely independent entity, but rather as a supply chain. As a result of the data collection process, the data attribute and the distribution of the total score (110) between Japanese and Chinese companies are shown in Table 2 and Figure 1. The results were shown in terms of Cronbach’s coefficient alpha at 0.965 for 22 assessment items from Japanese data and 0.957 from Chinese data These results indicated that high reliability of LSC was ensured. From the distribution chart of total score between Japan and China, it could be observed that the Japanese data presents a normal distribution, while the Chinese data is shown as a bimodal distribution. The comparative result of each assessment item between Japanese and Chinese companies was pointed out to recognize the strengths and weaknesses including the variation of those 22 items Corporate strategy and inter-organization alignment 3.06 0.71 3.35 0.90 –4.95**
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