Malaysian Manufacturing Research Articles

Sustainable Manufacturing Practices and Sustainability Performance: A Conceptual Framework for Manufacturing SMEs

In the Sustainable Development Goals Summit in September 2019, world leaders addressed current and future sustainability challenges faced by the world, including poverty, inequality, climate change, environmental degradation, peace, and justice. However, the Covid-19 pandemic has shocked and dampened global sustainable development efforts. Malaysian manufacturing small and medium enterprises (SMEs) are not exempt from this tragedy, as they have suffered economically, socially, and environmentally. The goal of this paper is to establish sustainable manufacturing practices (SMPs) as a dynamic internal strategic action for manufacturing firms that transforms firm capabilities into sustainability performance. The authors conducted an extensive literature search to explore global sustainability issues and narrowed the scope to issues encountered by Malaysian manufacturing firms. The most commonly used terminologies of sustainability, sustainable practices, and sustainability performance were subsequently analyzed to conceptually develop a holistic framework for future studies. Specifically, the authors proposed an explanatory quantitative study to comprehend the link between firm capabilities and multidimensional sustainability performance with the integration of SMPs as a mediator. The results of the analysis would provide useful recommendations for the manufacturing sector and directions for future studies. Additionally, this paper enriches the theory of the Dynamic Capability View by bringing in the sustainability model to explain the development process of sustainability performance among Malaysian manufacturing SMEs. This article does not just inform firms and authorities on the importance of SMPs for superior performance but also guides firms towards understanding and improving their current SMPs. Managers in the manufacturing sector would benefit from this paper by learning and implementing effective sustainable strategies in their operations management to improve sustainability-related outcomes.

THE IMPACT OF TRADE OPENNESS ON MANUFACTURING SECTOR PERFORMANCE

Trade openness plays a vital role in boosting the production of the manufacturing sector. Two opposing perspectives identify trade-growth nexus. One posits that trade openness will stifle industrial productivity while the opposing view believes that manufacturing productivity can be enhanced by a trade liberalization regime. This study investigates the instantaneous and jointly dynamic effect of trade openness along with macroeconomic variables (i.e., Malaysian exchange rate and average lending rate) and the event of economic crises on manufacturing sector performance in Malaysia using data from 1981 to 2016. This study employed a distributed lag model. The Augmented Dickey-Fuller (ADF) unit root test was adopted to determine the stationarity of time series data. The empirical results revealed that the effect of both instantaneous and the jointly dynamic effect of the percentage change in trade openness on manufacturing production growth in Malaysia are positive and significant. However, the effects of the percentage change in exchange rate and percentage change in average lending rate are insignificant. Economic crisis has a significant negative impact on Malaysian manufacturing production growth. Therefore, the results strongly recommend that the direction of trade policy in Malaysia should be formulated based on outward-looking strategies.

Antecedents of Sustainable Performance in Manufacturing Organizations: A Structural Equation Modeling Approach

Sustainability is integral for organizations to manage environmental issues. Environmental awareness among stakeholders builds pressure on manufacturers to adopt green human resource management practices (GHRMPs), environmental management system (EMS), and foster organizational citizenship behavior for the environment (OCBE) to improve sustainable performance (SP). This study investigates the mediating effects of OCBE and EMS on the relationship between GHRMP and SP among ISO14001-certified manufacturing firms and SP. The quantitative design employed, and data of 227 respondents were analyzed via the SEM technique using AMOS 24™. Thus, findings revealed that GHRMP is positively related to SP, while OCBE and EMS partially mediated the relationship between GHRMP and SP among ISO14001-certified Malaysian manufacturing firms. This study makes novel academic and practical contributions to green HRM, organizational behavior, and sustainable performance. However, this study also has some limitations.

Factors affecting the turnover intention among employees in Penang manufacturing industry

Purpose: The objective of the present study is to examine how work engagement, job demands and organizational commitment affect turnover intention among employees in Penang manufacturing industry. Research Methodology: Quantitative approach will be used in this study by distributing the online questionnaire to collect data from a sample of 75 employees drawn from manufacturing companies in Penang, Malaysia. Results: The present study found out that work engagement and job demands have no significant relationship with turnover intention. Besides, the present study indicates that organizational commitment is negatively related to turnover intention. Limitations: In this research, only 75 employees from Penang manufacturing industry had participated in the study. Since this small number of employees could not represent the entire Malaysia population, the future research should expand to involve a bigger sample of employees from Malaysia manufacturing industry to collect more reliable results. Contribution: The findings of this research provide benefits to the Federation of Malaysian Manufacturing (FFM) and manufacturing companies as they can understand the devastation effects of turnover and be equipped with strategies to decrease the turnover rate. Keywords: Employee, Job demands, Manufacturing industry, Organizational commitment, Turnover intention, Work engagement

The blockchain-enabled technology and carbon performance: Insights from early adopters

This paper examined the drivers of blockchain technology adoption and carbon performance using the theory of technology-organization-environment (TOE) as the basis for the development of a technology adoption framework. Blockchain technology has passed the proof testing phase and is attracting early adopters who can gain benefits from it. Manufacturing firms that had adopted the blockchain technology and voluntary reported the carbon emission were targeted as the sample and survey data were collected from manufacturing firms that were registered with the Association of Malaysian Manufacturers. Unfavourable support of top management and the lack of technology competence were the main barriers to the adoption of blockchain technology among manufacturing firms. The results indicate that firms did not achieve low carbon performance and that a lack of pressure from competitors and technical competency to undertake blockchain technology were factors. No evidence existed demonstrating a linkage of early adopters of blockchain technology with and low carbon performance. Recommendations of this study include that firms should take the initiative to record the energy consumption, engage in the transfer of carbon credits, and monitor carbon performance using reliable technology to improve business transparency and sustainability.

The Effect of Toolkits Usage on Firms’ Co-Creation and Innovation: An Empirical Study on Malaysian Manufacturing Firms

Organizations aim to create products that accomplish customer needs. Fulfilling customer needs through customer involvement in the product innovation process via toolkits usage has seen favorable outcomes for firms. Consequently, the intention of this study is to analyze the impact of toolkits usage on co-creation and innovation, respectively. To achieve the research objectives, we propose a model that develops based on literature to examine the relationship among toolkits usage and co-creation, as well as innovation. The model was examined utilizing survey data from the manufacturing organizations. This study includes a survey of 393 manufacturing firms in Malaysia. The survey questionnaire was distributed personally and online (google link), respectively. Results confirm the effective use of toolkits on co-creation and innovation hence reinforcing the importance of openness in co-creation and innovation theory. The results assert important implications for practitioners wanting to reap benefits from individualized products through toolkits usage. In sum, manufacturers can gamer value from toolkits usage within the context of an emerging economy, like Malaysia.

Analysis of mitigation strategy for operational supply risk: An empirical study of halal food manufacturers in Malaysia

This study aims empirically to analyze mitigation strategies for operational supply risk among halal food manufacturers in Malaysia. A survey of 369 halal food manufacturers is used to test a research model that proposes a relationship between operational supply risk and risk consequences as well as the mediating role of risk mitigation strategies. Structural equation modeling reveals that in the absence of a risk mitigation strategy (behavior-based management, buffer-based management, and traceability-based management), operational risk consequences are significantly influenced by operational supply risk. The analysis also showed the mitigation strategies reduce risk events by its interaction between operational supply risk and risk consequences. This study shows significant data about the management of halal food manufacturing. Due to the limitations of this survey, further study is necessary to analyze how other halal's sectors manage their supply chain risk management.

Structural model of lean and cleaner production on manufacturing sustainability performance: Malaysian manufacturers' perspectives

Structural model of lean and cleaner production on manufacturing sustainability performance: Malaysian manufacturers' perspectives

Structural model of lean and cleaner production on manufacturing sustainability performance: Malaysian manufacturers' perspectives

In terms of practices, the implementation of Lean and Cleaner Production shared a common focus, aiming to enhance the degree of management efficiency, while reducing the barriers in continuous improvement activities. This positively produced an enormous impact on the performance in economic, environmental, and social competency, while improving the level of sustainable manufacturing performance. Using survey data from 107 respondents consists of Malaysian manufacturers, this study empirically focuses to explore and examine the relationships between Lean and Cleaner Production with manufacturing sustainability performance via the Structural Equation Modelling-Partial Least Square technique. The results have shown that the implementation of Lean and Cleaner Production produced a significant positive effect on economic and competency sustainability performance. Although the relationship between Lean and Cleaner Production with environmental sustainability performance is not significant, thru well-intentioned impulses, manufacturing firms could grasp the opportunities in improving the performance of economic, enhancing the social competency, and grasp better environmentally friendly practices.

Practice of business sustainability. Evidence from the Malaysian manufacturing sector

Practice of business sustainability. Evidence from the Malaysian manufacturing sector

Estimating the foreign workers’ effect of minimum wage in Malaysian manufacturing sector

Estimating the foreign workers’ effect of minimum wage in Malaysian manufacturing sector

Sustainable system for supply chain management in the Malaysian manufacturing industries: a review and research direction

Management teams across the industry have made significant improvements in innovative supply chain infrastructure and processes, and their facilities and products have since been significantly improved in several instances. Therefore, each of these businesses has progressed well past simple marginal improvements. Nevertheless, it is essential to be able to function smoothly through deeper connections across the whole supply chain path. It is crucial to combine the market operations, resources, and expertise to accomplish the business performance across the different channel participants in a win-win situation. A total of 77 articles were actively reviewed, including 50 Scopus journals and 27 conference papers spanning from years of publication 2003 to 2020. The implementation of sustainable supply chain management (SSCM) is a fundamental enabler that may drive businesses to concentrate on addressing environmental challenges and administering social and economic gains. Implementation reveals that this principle helps enterprises to obtain improved production, reduced operational costs and lower inventories. Therefore, this research intends to explain the scope of sustainable supply chain activities and introduce a sustainable supply chain management framework that can improve Malaysian manufacturing industries.

Sustainable system for supply chain management in the Malaysian manufacturing industries: a review and research direction

Management teams across the industry have made significant improvements in innovative supply chain infrastructure and processes, and their facilities and products have since been significantly improved in several instances. Therefore, each of these businesses has progressed well past simple marginal improvements. Nevertheless, it is essential to be able to function smoothly through deeper connections across the whole supply chain path. It is crucial to combine the market operations, resources, and expertise to accomplish the business performance across the different channel participants in a win-win situation. A total of 77 articles were actively reviewed, including 50 Scopus journals and 27 conference papers spanning from years of publication 2003 to 2020. The implementation of sustainable supply chain management (SSCM) is a fundamental enabler that may drive businesses to concentrate on addressing environmental challenges and administering social and economic gains. Implementation reveals that this principle helps enterprises to obtain improved production, reduced operational costs and lower inventories. Therefore, this research intends to explain the scope of sustainable supply chain activities and introduce a sustainable supply chain management framework that can improve Malaysian manufacturing industries.

Practice of business sustainability. Evidence from the Malaysian manufacturing sector

The aim of this study is to gain a better understanding of the level of business sustainability practices (economic, social and environmental) of manufacturing small and medium-sized enterprises in Malaysia. Quantitative survey technique is used to collect the data. 168 usable responses were received and further analysed using SPSS 23 package software. The results of this study have led to several significant findings. The findings show the existence of business sustainability practices as the majority of statements have high and medium mean scores. However, economic sustainability is the least compared to the other two dimensions of business sustainability (social and environmental). This study has a number of implications for owners and managers as well as policy makers on the importance of sustainability implementation practices to become a responsible organisation. Finally, the limitations and future studies will be discussed. The novelty of this study unfolds the contribution of business sustainability to the achievement of a competitive advantage for future researchers.

How Firm Characteristic on Capital Structure Can Improve Technology Improvement in Malaysian Manufacturing SMEs?

Small and medium enterprises (SMEs) is a important contribution to boost the economies overall the world. In fact, SMEs always struggle to access the financing compared list company. There are several factors influence the capital structure decision in SMEs. This study focuses on manufacturing SMEs companies and examines the influence of firm characteristics (firm size, tangible asset, liquidity, profitability and firm growth) on capital structure towards technology improvement. The results showed only liquidity and firm growth were found to be positive significantly affect the external financing. Furthermore, internal and external financing also able improve the manufacturing’s technology performance. Conclusion, different firm characteristics have different leverage privileges which trying to attain optimal capital structure. The variations in the capital structures affect the costs of equity or debt and cost of capital. This study provides benchmarks for corporate managers in SMEs when making a company’s decision on the company’s performance.

The Appropriate Strategies for Exporting Malaysian Manufacturing Small and Medium Enterprises for Corporate Sustainability in the Context of 4.0 Industrial Revolution

Small and Medium Enterprises (SMEs) are the backbone of the Malaysian economy. Hence, SMEs must continue to contribute to the growth and development of the country. SMEs no longer can sustain domestic trade, and moving to the global market requires SMEs to be competitive. To seek competitive advantage, SMEs must take the opportunities of IR 4.0 technology and adopt appropriate strategies to enhance manufacturing processes and elevate productivity as well as participate in new export markets for corporate sustainability. Methodology A mixed method methodology was used for this research. The data collection tools were literature review, personal interviews, and web survey with 105 participants. A five-point Likert scale was adopted to indicate the respondent’s degree of agreement or disagreement. Results Adopting IR 4.0, SMEs will be recognized globally and provides opportunities to compete and participate in the global value chain. However, SMEs face several barriers when adopting IR 4.0 technology including lack of financial support, technological knowledge, R&D related training, expert support, and absence of a global mind-set. Conclusion and Recommendations The findings revealed thatIR 4.0 will create extensive opportunities for Malaysian exporting manufacturing SMEs to innovate and reduce business costs by identifying the best solutions to solve business problems. IR 4.0 has become an enabler to increase productivity and compete with other large economies in the value chain. Malaysian manufacturing SMEs must leverage and maximize the benefits of IR 4.0 to secure new export opportunities from domestic to global markets.

Preliminary study on fault detection using artificial neural network for water-cooled reactors

In the PUSPATI TRIGA reactor (RTP), many variables and instruments need to be monitored to make sure it is functioning and running accordingly. The late detection of faults may result in accidents and affect workers’ safety and health. Therefore, an intelligent fault detection system is needed to detect faults in the process plant and alert for any safe point breach. This work was carried out to discover the use of an artificial neural network (ANN) to model and develop a fault detection programme in the RTP cooling system. Using actual data from the reactor to train the multilayer network model with backpropagation algorithm. Referring to the real data from the reactor, the simulation results demonstrate a good correlation between the proposed model using ANN and the real plants with a residual mean of below 1%. The preliminary results for fault detection show that ANN was able to predict the value of failure in residual factor by comparing the normal state and fault state of the plant. The proposed model using ANN method proofed that it could quickly diagnose the single fault and perform for any given failure. The research outcome could contribute to the improvement in frontier technologies and advanced manufacturing in Malaysia.

Industry 4.0: The Importance Factors of Innovation in Adopting Cloud Computing Among SMES in Malaysia

Small and medium-sized enterprises (SMEs) are commonly perceived as an essential part of boosting and stabilizing global economic growth. In 2018, SMEs recorded a 38.3% contribution to GDP of RM521.7 billion compared to RM491.2 billion in 2017. SMEs are expected to contribute 50% to Malaysia's GDP by 2030 relative to its present 38% contribution. However, in the context of Malaysia businesses, particularly small and medium-sized enterprises, are still not embracing the latest technology revolution sufficiently, as reported by the Ministry of International Trade and Industry (2018). Malaysia is currently in the third industrial revolution (automation), and some are still under the second industrial revolution. Such matter is worrying as only a few industries in Malaysia can adopt pillars of Industry 4.0, where business owners in Malaysia were still hesitant to embrace technologies such as the cloud. To bridge the gap in this analysis, this research adopted the technology acceptance model developed by Davis (1989) and Rogers' Diffusion Innovation Theory (1995), which incorporates the contexts of technology and innovation among SMEs in Malaysia. By using survey questionnaires, data was collected among manufacturing and services SMEs in Malaysia. Structural equation model employed to assess the important factors of innovation in adopting cloud computing among SMEs in Malaysia by using Smart-PLS. Keywords: Cloud computing, Industry 4.0, Innovation, Technological

The nexus of information sharing, technology capability and inventory efficiency

Purpose This paper aims to examine the effect of inventory information sharing on inventory efficiency and its intervening effect of information technology (IT) capability in manufacturing firms. Design/methodology/approach Stratified random sampling and filter questions selected targeted respondents, and an online survey collected 124 completed questionnaires from Malaysian manufacturing firms. partial least squares structural equation modeling (PLS-SEM) examined the structural model and hypothesis statement. An analysis of importance-performance map analysis (IPMA) test identified the relative importance drivers of inventory efficiency. Findings The findings showed that enhanced IT capabilities in manufacturing firms mediate a positive relationship between inventory sharing and inventory efficiency. Research limitations/implications This study portrays the relationship between inventory level, demand and information sharing. The research was carried out only within Malaysian manufacturing firms. Practical implications These findings will enable the management of manufacturing firms to design and visualise their inventory levels and share best practices across supply chain networks to achieve effective and optimised inventory planning. Social implications This study illustrates an intervention model that offers a direct and indirect impact of IT capabilities that allow scholars to close inventories productivity gaps in research. Originality/value This paper extends the limited literature on the sharing of inventory information and inventory productivity, notably from a strategic management perspective. The findings help scholars clearly understand the information systems capability and its mediating impact on information sharing and inventory efficiency’s relationship in the manufacturing sector. Moreover, demand information sharing affected the dynamic supply chain.

Is Malaysia ready for Industry 4.0? Issues and Challenges in Manufacturing Industry

Despite as a strong manufacturing economist in ASEAN, manufacturers in Malaysia are the beginners who are lack of proper understanding of the concepts and practices of Industry 4.0. The purpose of this paper is to identify the issues and challenges of Industry 4.0 from industry-based companies' aspect by conducting a literature review. This paper also highlighted the comparison between the potential challenges stated in the Malaysia National Policy on Industry 4.0 with the challenges proposed by previous studies of other countries. This paper is a literature review on previous studies regards to challenges or issues on implementation of Industry 4.0 from 2015 to 2019. Total 11 challenges in the processes of implementation Industry 4.0 into manufacturing companies are reviewed. Compared to previous studies, Malaysia National Policy on Industry 4.0 overlooked 3 challenges on Industry 4.0. This is the first review paper to compare the existing challenges in Industry 4.0 with the potential challenges stated in the Malaysia National Policy on Industry 4.0.