Manufacturing Companies In Malaysia Research Articles

English

The purpose of this paper is to shed the light on the critical success factors that lead to high supply chain performance outcomes in a Malaysian manufacturing company. The critical success factors consist of relationship with customer and supplier, information communication and technology (ICT), material flow management, corporate culture and performance measurement. Questionnaire was the main instrument for the study and it was distributed to 84 staff from departments of purchasing, planning, logistics and operation. Data analysis was conducted by employing descriptive analysis (mean and standard deviation), reliability analysis, Pearson correlation analysis and multiple regression. The findings show that there are relationships exist between relationship with customer and supplier, ICT, material flow management, performance measurement and supply chain management (SCM) performance, but not for corporate culture. Forming a good customer and supplier relationship is the main predictor of SCM performance, followed by performance measurement, material flow management and ICT. It is recommended that future study to determine additional success factors that are pertinent to firms’ current SCM strategies and directions, competitive advantages and missions. Logic suggests that further study to include more geographical data coverage, other nature of businesses and research instruments.   Key words: Supply chain management, critical success factor.

Training relevant in achieving strategic competitiveness “A supply chain management perspective”

This paper examines the relationship between training in supply chain management (SCM) and competitive advantage of manufacturing companies in Malaysia. The study measures senior SCM managers’ or production managers’ perception of training in SCM practices and level of competitiveness in the industry. Associations between training in supply chain management and competitive advantage are analyzed through methods such as Pearson’s correlations, cluster analysis and structural equation modeling (SEM) utilizing 115 respondents’ data. The findings suggest that training in SCM has significant correlations with competitive advantage (comprises of determinants such as product differentiation, employee differentiation, service differentiation and price differentiation). Specifically, competitive advantage (CA) has high correlations with training variables such as ‘adequacy of production training among employees’, ‘management training in supply chain effectiveness’ and ‘employee training in supply chain technologies’. The SEM result also reveals that training in SCM exhibit direct impact on competitiveness. Findings of the study provide a demonstration of the importance of training in enhancing competitiveness in Malaysian manufacturing companies.

SUPPLY CHAIN MANAGEMENT, SUPPLY CHAIN FLEXIBILITY AND BUSINESS PERFORMANCE

Supply chain performance and effective management of supply chain have been increasingly recognized as critical factors in enhancing bottom-line performances. More and more firms are beginning to adopt supply chain management (SCM) to improve performances of their organizations. This study examines the importance of incorporating supply chain management in Malaysian manufacturing companies. The study measures senior production or SCM managers’ perceptions regarding SCM practices and performances of their companies. The paper specifically investigates relationship between SCM, supply chain flexibility and business performance and these associations are analyzed through statistical methods such as Pearson’s correlation and structural equation modeling (SEM). The overall result suggests that supply chain management has significant correlations with supply chain flexibility and business performance. Specifically, supply chain flexibility and business performance have high correlations with SCM comprising programs such as ‘strategic supplier partnership’, ‘lean production’, ‘postponement concept’ and ‘technology and innovation’. In addition, the SEM result also demonstrates that two supply chain management proxies specifically ‘new technology and innovation’ and ‘lean production’ appear to be of primary importance and exhibit most significant impact on supply chain flexibility and business performance. Findings of the study provide striking demonstrations of the importance of SCM programs in enhancing performances of Malaysian manufacturing companies. The result indicates that manufacturing companies should emphasize greater attention to the technology aspects of SCM as well as waste reduction program through lean production and a greater degree of management support for SCM enhancement initiatives.

Perceived Barriers Of E-Commerce Expansion In The Electronic Manufacturing Companies In Malaysia

This study examines the major barriers that prevent manufacturing companies in Malaysia from adopting e-commerce. The major barriers of e-commerce expansion were security of payment and uncertain nature of legal and regulatory frameworks. Also the empirical findings reveal that doing business over Internet involves high start-up cost. In fact it is costly to set-up business electronically, because so many technological appliances are involved. Computers are quite expensive to buy limited maintenance facility issue to take advantage of EC. This issue is really affecting small businesses. Therefore, in order to attract and motivate the adoption of EC, the government has to support this sector fully by providing bank loans or subsidiaries.

Key determinants of knowledge sharing in an electronics manufacturing firm in Malaysia

PurposeThe purpose of this paper is to examine the factors that affect knowledge‐sharing attitudes in Malaysia, with emphasis on a manufacturing firm and how this attitude influences their intention to share knowledge.Design/methodology/approachThis is a survey research conducted within a manufacturing firm. The questionnaire was developed by adapting items and concepts from prior works, and by developing a new variable, kiasuism. A census sampling method was used to select participants for this research. The data derive from a case analysis in a manufacturing company in Malaysia. The analysis was based on 141 valid responses.FindingsThe findings indicate that collectivism, social network, social trust, shared goal, incentive systems, kiasuism and self‐efficacy emerged significant except for individualism. A unique finding is that kiasuism emerged as proposed, which suggest that future works could focus more on this variable to highlight its impact in a firm's ability to share knowledge. Overall, the data support our framework and indicate that knowledge sharing among employees in Malaysia's private companies is gaining grounds.Research limitations/implicationsThe limitations of this research include the case study approach adopted, which does not allow the generalization of the results beyond that of the firm being studied. The implications emanating from this research is that the ability of a firm, especially electronic manufacturing firms, to harness internal resources and capabilities to enhance knowledge sharing among employees, would be critical for the firm to maintain a competitive position in the marketplace.Originality/valueThis paper provides specific backgrounds of the key factors that could affect the effective implementation of knowledge‐sharing initiatives in a firm, particularly those in the manufacturing sector. The findings suggest key implications for practice and research involved in knowledge‐sharing activities in their firms and related initiatives.

The Structural Influence of Supply Chain Managementon Product Quality and Business Performance

Supply chain management (SCM) has been increasingly recognized as a critical factor in improving bottom-line performances. In addition, more and more firms are making use of SCM to improve their performance. The study aims to understand and determine critical variables of SCM that would be able to enhance product quality and business performance in manufacturing companies in Malaysia. The study measures senior production or SCM managers' perceptions regarding SCM and level of performances in their companies. Two hundred and fifty responses are received and data are analyzed using SPSS. The study specifically investigates relationships between SCM, product quality and business performance and these associations are investigated utilizing parametric statistical analyses such as Pearson's correlations and structural equation modeling (SEM). The SEM result demonstrates that SCM dimensions namely 'lean production', 'new technology and innovation', 'strategic supplier partnership' and 'postponement concept' appear to be of primary importance and exhibit significant effects on product quality and business performance. Findings of the study provide a striking demonstration of the importance of SCM in enhancing bottom line performances of Malaysian manufacturing companies. The result indicates that manufacturing companies should emphasize greater attention to the waste elimination program through lean production as well as the technological aspects of SCM and a greater degree of management support for SCM implementation initiatives.

Enhancing Production Performance and Customer Performance Through Total Quality Management (TQM): Strategies For Competitive Advantage

During the past two decades, Total Quality Management (TQM) programmes have been implemented in many organizations. A strategy of high quality leads to a sustainable competitive advantage. This paper examines the importance of incorporating TQM in the Malaysian manufacturing industry. The study measures senior production or TQM managers’ perception of TQM and level of performances of their companies. Specifically, the paper investigates relationships between TQM, production performance and customer-related performance and the associations were analyzed through statistical methods such as Pearson's correlation and structural equation modeling (SEM). The findings suggest that TQM and its adoptions have significant correlations with production performance and customer-related performance. This study provides striking demonstrations of the importance of TQM in enhancing performances of Malaysian manufacturing companies. The result indicates that retail manufacturing companies should emphasize greater attention to quality measurement aspects of TQM and a greater degree of management support for TQM initiatives to ensure strategic sustainable competitive advantage.

Maintenance strategy in Malaysian manufacturing companies: a total productive maintenance (TPM) approach

PurposeThe paper aims to investigate the extent of TPM practices in Malaysian manufacturing companies, as TPM practices have been shown to lead to better performance.Design/methodology/approachA survey was conducted in Malaysian manufacturing companies to examine the extent of TPM practices. The correlations among TPM practices were also evaluated accordingly.FindingsCorrelation analysis was carried out and the results show that there is a positive relationship among TPM practices. In general, TPM practices, for instance autonomous maintenance, planned maintenance and TPM strategy, show positive and significant correlations among this sample of Malaysian manufacturing companies.Research limitation/implicationsSince the sample was rather small, caution is required when making generalizations.Practical implicationsThe study highlights the need to improve the collaboration between the maintenance function and other functions in organizations. TPM can be established as an aggressive strategy to face stiff competitive environments that require zero breakdowns, stoppages, and failures of equipment.Originality/valueThe achievements of Malaysian manufacturing companies through TPM practices are evaluated and important TPM practices are identified for enhancing the effectiveness of TPM implementation programs in the Malaysian context.

HR outsourcing among Malaysian manufacturing companies

PurposeThe purpose of this paper is to investigate the trend of human resource (HR) outsourcing among manufacturing companies in Malaysia.Design/methodology/approachThe data for the study were obtained from survey responses from 232 manufacturing companies in Malaysia, of which were engaged in HR outsourcing. Descriptive analyses were performed to obtain the information on the practices of HR outsourcing among these companies. The practices to be explored include the types of HR functions outsourced, and the reasons for and for not engaging HR outsourcing.FindingsThe findings suggest that only 49 percent of manufacturing companies engage HR outsourcing. This implies that the trend of HR outsourcing is still a relatively new practice, but is increasing considerably. Many companies tend to outsource recruitment functions because they want to get access to expert services. However, many companies also refuse to outsource HR functions because it is not appropriate for their business operations.Research limitations/implicationsThis study is merely descriptive. Therefore, it does not test the relationship on the factors that induce the companies to engage HR outsourcing. In fact, it would be interesting for future studies to analyze the antecedents and consequences of HR outsourcing.Practical implicationsManufacturing companies are aware of which HR functions are frequently outsourced. It guides them on the conditions in which HR outsourcing is most desired, such as the reasons for engaging with HR outsourcing and the reasons for not outsourcing HR functions. From this information, companies should be attentive to the potential HR functions to be outsourced.Originality/valueAs HR outsourcing is expected to boom in Malaysia in the next few years, this study provides an input for manufacturing companies to determine their HR deliveries in future.

Impact of knowledge management in supply chain management: A study in Malaysian manufacturing companies

AbstractThis research deals with two important aspects of Knowledge Management (KM) within the context of Supply chain Management (SCM): Knowledge Acquisition and Knowledge Application. Supply Chain Learning (SCL) and Applied Supply Chain Process Knowledge (Applied SCPK) are used as proxies for Knowledge Acquisition and Application. This study aims to test the relationship between Applied SCPK, SCL, and Organization Performance. This study also looks at the effect of Environment Knowledge as a moderating variable. About 1608 questionnaires were distributed to all the manufacturing firms in Malaysia. Path Analysis and ANOVA were used to study the various relationships. Results indicate existence of strong relationships between the variables. The combined effect of SCL and Applied SCPK on Organization Performance is more significant than looking at the effects separately. Furthermore, Environment Knowledge is found to have moderating effect on the relationship between Applied SCPK and Organization Performance. This paper demonstrates the application of KM in SCM and shows the effect on Organization Performance. This may guide supply chain managers to create an environment conducive to acquisition and application of knowledge. Copyright © 2009 John Wiley & Sons, Ltd.

The Consequences of Supervisory Power–The Contingent Effect of Age and Length of Service

The superiors’ power bases on work autonomy and satisfaction with supervision in Malaysian manufacturing companies was investigated. The influence of superiors and subordinates age and length of service were also explored. 210 data was collected from technical staff of manufacturing companies indicated that supervision of industrial people were most acceptable through the exercise of referent power, expert power and reward power. Among the power bases, reward power was most often exercised when the work autonomy is high. The work autonomy was found to be positively associated with the satisfaction with supervision. The perception of expertise was found to be associated more with superior and subordinate age differential rather than their length of service.

Tracking the Credit Collection Period of Malaysian Small and Medium-Sized Enterprises

Profits of a company depend upon its frequency of reinvestment, or turnover, of its capital. Frequent turnover would not be possible if collections are slow as they deny the company the use of its own capital. Credit collection period is, therefore, an important factor that may influence a company’s overall performance. Hence, this study explores the average collection period profile of 279 small and medium-sized manufacturing companies in Malaysia using the companies’ financial statements from 1999 through 2002. This paper also examines if different industry sector has different collection period. Then the study relates the average collection period to company financial performance as measured by operating profit on total assets. Finally, the study investigates if there is any relationship between collection period and company size. These relationships are then examined again after taking industry sub-sector into consideration.

AHP approach for supplier evaluation and selection in a steel manufacturing company

Supplier selection is one of the most critical activities of purchasing management in supply chain. Supplier selection is a complex problem involving qualitative and quantitative multi-criteria. A trade-off between these tangible and intangible factors is essential in selecting the best supplier. The work incorporates AHP in choosing the best suppliers. The results suggest that AHP process makes it possible to introduce the optimum order quantities among the selected suppliers so that the Total Value of Purchasing (TVP) becomes maximum. In this work, an AHP-based supplier selection model is formulated and then applied to a real case study for a steel manufacturing company in Malaysia. The use of the proposed model indicates that it can be applied to improve and assist decision making to resolve the supplier selection problem in choosing the optimal supplier combination. The work represents the systematic identification of the important criteria for supplier selection process. In addition, the results exhibit the application of development of a multi-criteria decision model for evaluation and selection of suppliers with proposed AHP model, which by scoring the performance of suppliers is able to reduce the time taken to select a vendor.

The adoption of Japanese recruitment practices in Malaysia

PurposeThe objective of this research is to examine to what extent Japanese recruitment practices are introduced and practiced in the auto manufacturing companies in Malaysia, since the implementation of the Look East Policy.Design/methodology/approachThe process involves the gathering of both primary and secondary data, but the main method is a primary data survey. The approach is to target local enterprises as much as possible in the collection of primary data through a set of questionnaires, as well as in‐depth interviews with the human resource (HR) directors and some employees of each company.FindingsIt appears that the Malaysian manufacturing companies have not designed their recruitment practices after those of the Japanese. There is no one single model of recruitment practices operating in Malaysia, either among Japanese joint ventures or local enterprises. However, the findings do suggest the existence of some consistent sets of recruitment behavior among the companies, though it cannot be said with much confidence that these patterns are indeed representative of Malaysian recruitment behavior.Research limitations/implicationsResearch has been limited to the manufacturing industry only.Practical implicationsHR practitioners can use the outcome of the study to gauge the adaptability of certain elements of Japanese recruitment practices to the Malaysian workplace.Originality/valueThis paper offers an insight into the applicability of Japanese recruitment practices and offers practical help to HR practitioners embarking on new recruitment policies.

Factors affecting e‐commerce adoption in the electronic manufacturing companies in Malaysia

PurposeThis paper sets out to examine the factors influencing internet‐based e‐commerce in the electronic manufacturing companies in Malaysia.Design/methodology/approachThe sample data are derived from a questionnaire survey of 194 companies selected from the Federation of Malaysian Manufacturer lists to investigate the study hypotheses. Roger's five innovation diffusion characteristics were considered as factors that affect EC adoption and security/confidentiality was taken as an additional factor for this study.FindingsThe multiple regression analysis results indicate that relative advantage, compatibility, complexity, observability and security appear significant. Relative advantage and compatibility have positive and significant influence on EC adoption whereas complexity and security have negative effects. This study also revealed a non‐significant relationship between trialability and e‐commerce adoption.Research limitations/implicationsThe results are limited within the sample of electronic manufacturing companies in Malaysia, so the results cannot be generalized.Originality/valueThis study provides a greater understanding of managers' perception of e‐commerce adoption in their manufacturing companies. Those interested in promoting their business online may find these results helpful in guiding their efforts.

Examining Human Resource Competencies and Their Relationship to the Success Factors of HR Profession

This study examines competencies of Human Resource (HR) professionals in the manufacturing companies of Malaysia. The Human Resource Competency Survey (HRCS) model is used in this study. The competencies that are examined in this study are business knowledge, strategic contribution, HR delivery, personal credibility and HR technology. All these competencies will be tested whether or not they are significantly related to a firm’s performance. Furthermore, researcher wanted to study the relationship of these competencies with variables such as experience, education level, firm’s size and salary of the sample. The sample employed here consists of HR professionals from Malaysian manufac-turing companies in Johor, the southernmost state of Malaysia.

Environmental management elements and corporate environmental performance of SMEs in Malaysia

This research examined the existence of environmental management practices within private limited manufacturing companies in Malaysia, and the impact on corporate environmental performance. The study examined environmental management elements that include environmental leadership, environmental process management, top management commitment, employee involvement, reward and recognition, environmental quality management programs, and pollution prevention technologies, and their relationship to corporate environmental performance.

Implementing e-HRM: The Readiness of Small and Medium Sized Manufacturing Companies in Malaysia

This study attempts to understand the extent of e-HRM practised in the small and medium sized enterprises (SMEs) in the manufacturing sector in five main areas of human capital management, which is believed to have a significant impact on the competitiveness of the industry, namely, recruitment, compensation and benefits, training and development, communication and performance appraisal. The piece will also focus on the fact that the readiness and feasibility of implementing e-HRM in the SMEs in Malaysia is dependent on the availability of resources and the attitude of the employees. The resources covered in this study include expertise, financial and technical resources.

Perceived Benefits of E-Commerce Adoption in the Electronic Manufacturing Companies in Malaysia

This study examines the major benefits that motivating to adopt e-commerce in the electronic manufacturing companies in Malaysia. The major benefits of e-commerce adoption include improved customer service, better inventory control and lower marketing and distribution costs, reduced cycle time, increased market reach and reduced operation costs. Despite the hype of the e- commerce business, the benefits realized from e-commerce adoption among firms is unclear in terms of perceived versus realized benefits. This study examines the perceived benefits of e-commerce usage by the electronic manufacturing companies in Malaysia. This paper also differentiates the perceived benefits between the different demographic groupings.

The relationship between job satisfaction and job factors in industrial work design: a case study of the automotive industries in Malaysia.

A survey was conducted to investigate the relationship between job satisfaction and job factors that affect work design in two automotives manufacturing companies in Malaysia. A set of multiple choices questionnaires was developed and data were collected by interviewing the employees at the production plant. Hundred and seventy male subjects between the ages of 18 to 40 years with the mean age of 26.8 and SD of 5.3 years and mean work experience of 6.5 and SD of 4.9 years took part in the survey. The survey focused on job factors, i.e. skill variety, task identity, task significance, autonomy and feedback. The results support the previous findings that job factors are significantly correlated to job satisfaction. Furthermore, it also highlights the significant influence of age, work experience and marital status.