Relationship Between Relational Capability and Supply Chain Technology Adoption
Supply chain is part of business operation, which involves many business entities such as supplier, manufacturers, distributors, service providers, retailers, and customers. In today’s dynamic business environment, the competition is no longer between firms, but between supply chains to gain competitive advantages. The dynamic management of these flows requires adoption of supply chain technology (SCT). Even though technology is widely implemented and studied in many industries by researchers, but the adoption of SCT in Malaysian textile and apparel (T&A) industry is still limited. Thus, indicate a major gap in supply chain studies. Considering the importance given to Third Industrial Master Plan by the government Malaysia, it is necessary to understand the power of SCT adoptions. This study examines the relationship between relational capability and SCT adoption by T&A companies in Malaysia. The total of 201 questionnaires were sent to Malaysia’s T&A company that is listed in the Federation of Malaysian Manufacturers (FMM) and Malaysian External Trade Development Corporation (MATRADE) directory. The total of 121 usable responses were obtained and analyzed through Partial Least Square Structural Equation Modeling (PLS-SEM). The result highlighted that relational capability has a partial relationship with SCT adoption. Specifically, the results suggested that supplier partnership and information quality was significance factors in enhancing SCT adoption of Malaysia’s T&A industry, while customer relationship and information sharing did not significance. This paper fills some of the gaps in the link between relational capability and SCT adoption, particularly among T&A companies.
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Document Type: Research Article
Affiliations: School of Technology Management and Logistics (STML), College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
Publication date: April 1, 2017
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