THE INFLUENCE OF SUPPLY CHAIN PRACTICES ON SUPPLY CHAIN PERFORMANCE: FROM SUPPLIER COMPANIES’ EMPLOYEE PERSPECTIVES

Abstract

This paper aims to discover the relationship between supply chain practices (SCPs) and supply chain performance (SCP) from suppliers’ employee perspectives. A quantitative analysis was carried out and correlation research design was chosen for this research as the intention of this study is to see if a relationship does exist between strategic supplier partnership (SSP), customer relationship (CR), level of information sharing (LIS), quality of information sharing (QIS) and internal lean practices (ILP) and supply chain performance (SCP) among the supplier companies’ employees. The population were employees in companies that supply products to a convenience store chain in Malaysia. A convenient sampling technique was used, where 108 questionnaires were given to the employees drawn from the 150 population. The findings of this study showed a significant correlation between four supply chain practices (SCPs) which are strategic supplier partnerships (SSP), customer relationships (CR), quality of information sharing (QIS), and internal lean practices (ILP)and supply chain performance (SCP). The SSP has the highest value which shows that it has the greatest influence on SCP variation. By considering the strategic supplier relationship as a significant factor that affects the performance of the supply chain, businesses can ensure that the alignment of strategy and the socialising orientation of supply chain participants are adequately managed. Future research should utilise a larger sample size because the current study used a lower sample size. More research should be conducted to examine the supply chain performance quantitatively utilising different SCPs elements in different industries.