Supply chain management practices as a source of competitive advantage for food processing SMEs in Peninsular Malaysia (Amalan pengurusan rantaian bekalan sebagai sumber kelebihan daya saing IKS pemprosesan makanan di Semenanjung Malaysia)

Nik Rozana, Nik Mohd, Masdek, Mohd Fairuz, Othman, Nik Rozana, Nik Masdek, Mohd Fairuz, Othman
2014 Economic and Technology Management Review   unpublished
The present study was undertaken on food-processing small and medium enterprises (SMEs) in Peninsular Malaysia. It attempts to examine the relationship between supply chain management (SCM) practices and the competitive position of the SMEs. Focus was given to selected supply chain management practices namely supplier partnership, customer relationship, information management and quality issues. A quantitative approach, through the use of self-administered questionnaires, was used to gauge
more » ... used to gauge food-processing entrepreneurs' responses. The findings clearly showed that the selected supply chain management practices have a direct impact on the competitive advantage of food processing SMEs in Malaysia. It was also found that there was still a very minimum adoption of SCM practices in food processing SMEs, especially in small enterprises. Overall, only 21% SMEs claimed to practise a full-scale use of SCM application in their business operations. About 49% SMEs claimed to only partially use SCM practices, while 30% did not use SCM practices at all in their operations. Consequently, the majority of the SMEs' competitive position was only at the average level.