The Effective Implementation of Global Supply Chain Management in Small to Medium-Sized Companies in Malaysia: An Empirical Study

By Rahman, Mohd Nizam Ab | International Journal of Management, September 2012 | Go to article overview

The Effective Implementation of Global Supply Chain Management in Small to Medium-Sized Companies in Malaysia: An Empirical Study


Rahman, Mohd Nizam Ab, International Journal of Management


This paper examines the issues and challenges in Malaysian Small and Medium Enterprises (SMEs) towards the successful implementation of Supply Chain Management (SCM). This paper has abo highlighted the importance of SMEs in improving their current business practices and quality of products, in order to ensure long term survival and competitiveness. There were three phases of data collection in this study. In the first phase, 11 SME companies were involved and followed by another 5 large-sized companies. The study consisted of semi-structured face-to-face interviews were conducted with senior managers of each company. The study was further continued with 158 SME companies through postal questionnaire. It has been found in this study that there are many problems and challenges that arise in relation to the implementation of SCM. Results have shown that lack of resources including time, manpower and financial, technological tools, and lack of knowledge, skill and expertise were considered the main problems faced by the SMEs when trying to implement SCM. In the implementation and integration of the SCM within a company, the key factor that contributes to the success of a company is a belief and trust in the system and in the workers involved. This allows smooth application of the SCM and hence meets the objectives of the company concerned. It is vital to improve the quality competence of SMEs, and the only way to achieve this is by adopting SCM through a proper approach of quality improvement practices in SMEs. For these reasons the four main components that lead to the success of a company in the SCM are: supplier, transportation, customer and inventory.

Introduction

Malaysia is a small open economy, with a population of more than 23 million and is a filli member of the Association of South-East Asian Nations (ASEAN). During the past 40 years Malaysia has industrialised rapidly, transforming itself from a commodity-based economy (e.g. agricultural products) into an economy dominated by manufacturing and services. Now it is one of the world's biggest exporters of electronic components and electrical appliances. Foreign investment has played a significant role in the transformation of Malaysia's economy, and the USA continues to be the largest investor in Malaysia, followed by Japan and Singapore. The Proton and the Produa Project are the most significant joint-venture projects, which the Japanese helped Malaysia to realise the dream of making a national car. With considerably low labour costs, Malaysia is a popular production centre for Japanese, American, Singaporean and European multinational and joint-venture companies, which export electronic goods and other products, made in Malaysia to all parts of the world.

Malaysia aims to become a fully developed industrial nation by 2020. Hence, effort is now being focused on transforming Malaysia into a truly industrialised economy, strengthening and widening the industrial base and maintaining competitiveness of manufactured products in the world market. To reduce its dependence on electrical and electronic industry, Malaysia is now moving its development priorities to another business sectors, such as the automotive sector, the agricultural sector, the services sector (e.g. tourism) and knowledge-based economy (e.g. multimedia and Information Technology (IT)).

Prior to 1997, Malaysia, enjoyed a period of strong economic growth, led largely by the growth of the manufacturing sector. The Malaysian economy was then affected for several years by the impact of the Asian economic crisis. Now that growth has returned, Malaysian business and government are again focussing on the development of a competitive and effective manufacturing sector. Malaysian wages and standards of living are rising, like those of many newly-industrialised countries. In order to compete globally and to be more secure in times of economic crisis, Malaysian manufacturing industry, especially Small Medium Entrepreneurs (SMEs) must develop effective management practices covering all aspects of the organisation, to help achieve lasting competitive advantage, based on high quality and not only on price.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Effective Implementation of Global Supply Chain Management in Small to Medium-Sized Companies in Malaysia: An Empirical Study
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.