The impact of supply chain integration on operational capability in Malaysian manufacturers

• Main Authors: Thoo, Ai Chin, Abdul Hamid, Abu Bakar, Rasli, Amran, Heng, Low Hock
• Format: Article
• Published: Elsevier 2014
• Subjects: HD Industries. Land use. Labor
• Online Access: http://eprints.utm.my/id/eprint/62942/; http://dx.doi.org/10.1016/j.sbspro.2014.04.030
• Institution: Universiti Teknologi Malaysia

This study aims to explore the effect of supply chain integration (SCI) on operational capability. Using data collected from 201 Malaysian small-and medium-sized manufacturers (SMMs) and rigorous structural equation modeling methods, a total of one main effect and four sub-effects were hypothesized and tested. All the proposed hypotheses were found to be significant, suggesting positive relationships between SCI and operational capability, as well as between sub-constructs of SCI and operational capability. Overall, the findings are particularly important for SMMs owing to resource paucity and the need to draw upon SCI in order to ensure a sustainable operational capability. Recommendations for how to improve operational capability are provided accordingly.