THE INFLUENCE OF SUPPLY CHAIN COLLABORATION ON SUPPLY CHAIN PERFORMANCE FOR MALAYSIAN MANUFACTURING INDUSTRY

Although Malaysian manufacturing has the second-highest growth rate, still its growth rate is far away from developed countries. There are numerous approaches and strategies to improve the performance but collaboration is on the top. There are many studies that verify supply chain collaboration has positive effects, but all are for a specific industry or sector. There is no study available for overall manufacturing. The purpose of this research is to empirically verify the relationship between supply chain collaboration and supply chain performance for the manufacturing of Malaysia. A questionnaire was distributed by convenience sampling in all listed manufacturing in the federation of manufacturers Malaysia. The retrieved data were purified from mission values and outliers, validity, and reliability. Finally, data were analyzed through Smart PLS 3. The finding revealed that all the approaches have a positive influence on supply chain performance. Information sharing, agreeing vision and mission, supplier relationship, customer relationship, and information quality are significantly effecting, while postponement and risk and reward sharing have positive effects but this effect is not significant. This study will help managers to understand the importance of collaboration while making a strategic decision. Meanwhile, this study will also help the organization in reducing risks. This study presents a framework that can be implemented in other industries and demographics. The first limitation of this study is to cover only manufacturing. Secondly, this study covers direct suppliers and customers for collaboration; the next study can include suppliers of suppliers and customers of customers.