The Effect of Lean and Agile Practices on Supply Chain Operational Performance in Malaysia Manufacturing Industry

Khai Loon Lee,Teh Xing Qi

doi:10.15282/ijim.12.1.2021.6639

Abstract

This study investigates the influence of lean and agile practices on supply chain operational performance in Malaysia manufacturing industry. The lack of IT flexibility, little information sharing, poor delivery performance, and low product quality affect responsiveness, reliability, agility, and cost of supply chain operational performance Malaysia manufacturing industry. This study has utilized the Resource-Based View (RBV) theory to strengthen the framework of this study. The research objectives in this study are to investigate the effect of lean practices and analyzed the effect of agile practices on supply chain operational performance in Malaysia manufacturing industry. To achieve the research objectives, a quantitative research approach is necessitated. The population of this study is 3626 manufacturing companies in Malaysia. The minimum sample size is 107, suggested by a G-power statistical analysis software. Besides, the cluster random sampling technique is used in sample selection. Furthermore, a total of 550 online questionnaires was distributed by email to the manufacturing industry in Malaysia and received a return of 112 responses from respondents representing a 20.36% response rate. Besides, Smart-PLS 3.0 was chosen as the software used for data analysis. Based on research findings, all of the eight hypotheses were supported. The theoretical and practical implication was presented before, the limitations and recommendations were discussed. In conclusion, lean and agile practices play a significant role in improving supply chain operational performance in the Malaysia manufacturing industry.

Highlights

Chain Operational Performance can be defined as activities and processes involving transforming raw materials or intermediate components to finished goods (Lee, Udin, Hassan, Bakar, & Hanaysha, 2017)
Based on the discussion mentioned above, a major concern of this study is “what is the relationship between lean and agile practices on supply chain operational performance”? To provide a better understanding of the concern raised, this study investigates the effect of lean practices on supply chain operational performance in the Malaysian manufacturing industry and analyzes the effect of agile practices on supply chain operational performance in the Malaysian manufacturing industry
This study investigates the effect of lean practices and analyses the effect of agile practices on supply chain operational performance in the Malaysia manufacturing industry

Summary

Introduction

Chain Operational Performance can be defined as activities and processes involving transforming raw materials or intermediate components to finished goods (Lee, Udin, Hassan, Bakar, & Hanaysha, 2017). The primary aim of a supply chain is to distribute goods and services effectively to customers in a limited time, with minimum total costs and efficiency (Naway & Rahmat, 2019). The performance analysis shows how well a manufacturer meets its targets. It can include market attention and customer satisfaction. It can eventually be established that an efficient supply chain is important after understanding the economic situation and the recent development of the manufacturing industry in Malaysia (Basu, Jeyasingam, Habib, Letchmana, & Ravindran, 2017). This study seeks to identify lean and agile practices on supply chain operational performance in the Malaysian manufacturing industry

Methods

Findings

Discussion

Conclusion