In the context of international economic integration, enterprises need to participate in the global supply
chain to take advantage of assets, talents and other capability. Base on the Structure Equation Model
(SEM-PLS) using primary data collected from 205 mechanical enterprises in Vietnam, the research result
shows that there are nine direct factors affecting the collaboration in supply chain including: (i) trust; (ii)
power; (iii) maturity; (iv) frequency; (v) distance; (vi) culture; (vii) strategy; (viii) policy; (ix)commitment. Results of the research give strong evidences for policy makers and enterprises for management the supply chain collaboration in mechanical sector in particular and other sectors in
general as well as its contribution to literature review of supply chain management.
THE INFLUENCE OF COLLABORATION IN PROCUREMENT RELATIONSHIPSijmvsc
Supply Chain Management often requires independent organizations to work together to achieve shared
objectives. This collaboration is necessary when coordinated actions benefit the group more than the
uncoordinated efforts of individual firms. Despite the commonly reported benefits that can be gained in
close relationships, recent research has indicated that collaboration attempts between purchasing firms
and their suppliers have not been as widespread as anticipated. Using a survey of procurement
professionals, this research investigates how the purchasing function utilizes collaboration in its supply
chain relationships. Structural equation modeling is used to identify how information sharing, decision
synchronization, incentive alignment, collaborative communication, and trust impact collaboration, as well
as how collaboration impacts performance. Results from 86 survey responses indicate that firms are still
not fully utilizing collaborative relationships
In the current era of globalization, main competition is not only amongst the businesses, but also amongst the difference in supply chain. A supply chain is referred to as a network of materials, services, information and organizations that have been experiencing transformation, supply and demand (Malhotra 2006). Management of supply chain is referred to as the management of information, physical and financial flows in each and every stage related to the supply chain for provision of profit and customer value for each and every member in the chain of supply. The practices and theories of supply chain management vary from business to business and product to product.
THE INFLUENCE OF COLLABORATION IN PROCUREMENT RELATIONSHIPSijmvsc
Supply Chain Management often requires independent organizations to work together to achieve shared
objectives. This collaboration is necessary when coordinated actions benefit the group more than the
uncoordinated efforts of individual firms. Despite the commonly reported benefits that can be gained in
close relationships, recent research has indicated that collaboration attempts between purchasing firms
and their suppliers have not been as widespread as anticipated. Using a survey of procurement
professionals, this research investigates how the purchasing function utilizes collaboration in its supply
chain relationships. Structural equation modeling is used to identify how information sharing, decision
synchronization, incentive alignment, collaborative communication, and trust impact collaboration, as well
as how collaboration impacts performance. Results from 86 survey responses indicate that firms are still
not fully utilizing collaborative relationships
In the current era of globalization, main competition is not only amongst the businesses, but also amongst the difference in supply chain. A supply chain is referred to as a network of materials, services, information and organizations that have been experiencing transformation, supply and demand (Malhotra 2006). Management of supply chain is referred to as the management of information, physical and financial flows in each and every stage related to the supply chain for provision of profit and customer value for each and every member in the chain of supply. The practices and theories of supply chain management vary from business to business and product to product.
Effect of Supply Chain Resilience Strategies on Operational Performance of Ma...AkashSharma618775
In Kenya, supply chain resilience is a relatively recent area of supply chain research that focuses on
companies' ability to withstand disruptions. Manufacturing firms would be able to survive delays and continuously
change their supply chains to satisfy the changing requirements and desires of their customers, shareholders, and
other stakeholders thanks to the supply chain's resilience. The study's main goal was to determine was to find out
the effect of supply chain resilience strategies on operational performance of Manufacturing firms in Nairobi city
county, Kenya with specific objective of the study was to be find out the role of Multisourcing, Near shoring,
product harmonization and Inventory management strategies on operational performance of Manufacturing firms
in Nairobi city county, Kenya. The study's participants were all workers of Kenyan manufacturing firms in
Nairobi city county, Kenya. The study's target population was all 454 manufacturing companies in Nairobi and its
environs, drawn from 12 main manufacturing subsectors. The study's sample size was 189 respondents, who were
selected using a simple stratified random sampling technique. To achieve this, the study was adopted cross
sectional survey design. The researcher used questionnaires to collect data from the respondents. Descriptive and
inferential statistics was applied in analyzing the data using SPSS Version 23 software. This study tested the null
hypotheses that Multisourcing, near shoring, product harmonization and Inventory management strategies have
no significant positive effect on operational performance of manufacturing firms in Nairobi city county, Kenya.
The study found out all variables Multisourcing, near shoring, product harmonization and Inventory management
strategies have positive significance on operational performance of Manufacturing to improve on the
Manufacturing firms in Nairobi city county, Kenya. Firm’s operational performance, it was therefore
recommended that firms to some extent should adopt some strategies like Multisourcing, Nearshoring, Product
harmonization stand Inventory management. The study also recommends that manufacturing firms should
advance on the supply chain risk management strategies as mitigation measures. Particularly, they should be
careful on the subsequent dimensions of the supply chain risk management, equal risk sharing, quality planning,
quality assurance and inspection in production. Enhancement of stated elements of risk management of the supply
chain will lead to better supply chain risk mitigation, which will translate into improved performance.
Buyer supplier development is important to organizations in management of contracts by minimizing operation costs in order to increase firm performance. However, the increasing number of complaints regarding failed attempts to deliver goods and services at the right time has made it impossible for some governmental projects to be completed at the stipulated time. Therefore, the study sought to assess the effect of supplier buyer development on performance of contract management unit in Uasin Gishu County Government.
In general sense, a good financial performance suggests that the firm is doing better in terms of competitiveness since profitable opportunities result in higher production and sales. The advantage of employing financial measures is their agreed-upon definitions and the easiness of calculations.
According to the study results reported by an authors, industry concentration, growth, market share, geographic dispersion of production, research and development expenditures and size measured by sales have a positive impact on the financial performance of the companies.
Sustainable supplier selection: the effect of logistical collaboration on log...IJERA Editor
This research assesses the effect of buyer-supplier collaboration on logistical performance by considering sustainable criteria. The paper presents the results of a survey with 124 respondents of the Brazilian organizations to understand the relationship among Third-Party Logistical (3PL), Consumer Packaged Goods (CPG) industry and Carriers. The results disclose that elements of logistical collaboration (interpersonal, tactical and strategic) exert positive influence in logistical performance (reliability, transport and risk). The interpersonal and strategic collaboration indices positively influence the reliability, which performs the highest-level performance index.
The Influence of Supply Chain Integration on the Intrapreneurship in Supply C...IJERA Editor
These days, SMEs pay a lot of attention to concept of Supply Chain Management (SCM) in order to achieve
competitiveness. The logic behind such act is integrating the activities of value creation within any kind of
organizational context. Such integrity would collaborate with managers to accomplish the competitive edge that
they are aiming to achieve. The goal of current research is to identify scopes of a unique construct which is
known as Entrepreneurial Supply Chain Management competency. Therefore, the notions of SCM and
entrepreneurship are being aligned together for evaluating the organizational performance. The outcomes
demonstrate that SCM in fact is a critical issue that can alter the organizational performance, thus, through
consideration of SCM, we should focus on supply chain integration and its impacts on intrapreneurship and
innovation of an organization. In order to be successful in such competitive context, SMEs need to provide
novel competences which are not imitable and to increase their application in supply chain and also to improve
their total performance.
Adoption of Vendor Managed Inventory Practices on Supply Chain Performance in...AkashSharma618775
Following the Corona pandemic, which has spread across the world by September 2020, many companies
around the world have been aware of the fact that they should always strive to inculcate and rely on the efficient
supply chains and networks in order to compete effectively in international markets and to sustain their
competitive edge. As a matter of fact, the management of supply chain has caused a paradigm shift in the way most
organisation operates (Brandt, 2009) The main objective of this study was to determine role of adoption of vendor
managed inventory practices on supply chain management performance in the selected automobile industries in
Nairobi County, Kenya with specific objective to establish role of supplier demand visibility, communication
mechanism, inventory decisions, replenishment decisions and supply chain management performance in the
selected automobile industries. The study adopted a cross sectional research design. The target population
comprised employees in supply chain department in selected automobile companies in Nairobi according to their
size. Snowball sampling technique was adopted in this study. A semi- structured questionnaire was administered
through the e-mail survey and hand delivery. Secondary data was obtained from both published and unpublished
records. The questionnaire was tested for validity and reliability. Both quantitative and qualitative techniques was
used to analyses the data with the assistance of SPSS software program version 25. The study found that supplier
demand visibility, communication mechanism, inventory decisions, replenishment decisions have significant role
on supply chain management performance in the selected automobile industries. In conclusion the study
recommended that automobile manufacturing companies should source for more resources, work on its time
constraints and negative attitude from some stakeholders and public when undertaking the process. Further the
companies need to gain visibility into their complex network of suppliers and logistics providers to collectively
sense and properly respond to changes in supply and demand, customers are less likely to tolerate delivery or
product errors. Supply chain demand visibility is crucial in preventing order errors and will prevent customers
from taking their business elsewhere. This will ensures them are knowledgeable about every aspect of your
inventory and allows firms to better help customers by improving performance and reducing errors. Putting in
place the right infrastructure can help firms to achieve better supply chain visibility and therefore reduce costs,
improve performance and identify problems, ultimately improving your reputation and growth.
Enterprise Relationships are fundamental to business
success. The research - conducted with Cambridge University Business School - shows how relationships lead to long
term mutual advantage, in which value is largely created by
the quality of interaction between the parties. The overall
performance of a company will therefore depend on how
well it is able to manage its own Enterprise Relationships.
Furthermore the White Paper starts to explore how digital communication can deliver value into these relationships.
This study pursued to investigate the effects of supply chain management practices on organizational
performance in the food complex industries in Asella town. A cross-sectional survey research design was
employed in this study. The population of interest comprised of all suppliers, employees, customers, retailers
were involved and multistage sampling was employed and 158 sample
Value Creation in Collaborative Supply Chain Network in Automobile Industry i...Waqas Tariq
ABSTRACT Abstract Purpose : This paper aims to determine the key factors that influence the value based supply chain in the collaborative network of Automotive sector in India and the extent of information sharing in a B2B set up and its implication on business decisions in the Automobile sector. The paper makes an attempt to examine the value creation in the supply chain network of e-commerce based automobile companies. The predominant factors that influence the Collaborative practices of Automobile Original Equipment Manufacturers (OEMs) in Karnataka and their dealership network in the background of e-commerce is thoroughly examined. Design/methodology/approach : In the paper, the systemic and logical analysis of value creation expert research made over the past several years is used and statistical analysis(Exploratory Factor Analysis) has been conducted based on the survey results of perceptions of the dealers assimilated through online survey. Findings : Major empirical findings based on automobile companies’ data analysis vide Exploratory factor analysis allow stating that adoption of e-based collaborative arrangements and information sharing based on trust and long term alliance between partners enhances the value creation and results in the improvement in Supply chain management. It thus results in: Savings in cost, Timely decisions based on superior information, Better and positive relationships with Manufacturer-Suppliers and Dealers, Superior and strong collaboration, Integrated customer service and Enhancement of ultimate consumer value. Originality value: This paper has thoroughly examined the Collaborative network of the e-commerce based automobile co’s. and empirical findings suggest that the entire supply chain network has reaped the benefits of technology adoption and its impact on business results is tangible which could be evidenced in positive outcomes like improvement in Manufacturer-Supplier-Dealer co-ordination and enhancement of long term customer relations. Research limitations/implications : The presented research work confirms the positive implications of technology on value creation in the supply chain network of e-commerce based automobile companies. Research in this area highlights only the value addition in the collaborative supply chain network in select automobile co’s (OEMs) in Karnataka and their dealership network in India. Broader generalisations could be drawn using this information, by selecting a larger sample size. The future research should be made on the entire industry in the country and by bringing more co’s. and suppliers into the sampling frame. Keywords : Value creation, Collaborative supply chain, Information sharing, Superior collaboration.
Effect of Supply Chain Resilience Strategies on Operational Performance of Ma...AkashSharma618775
In Kenya, supply chain resilience is a relatively recent area of supply chain research that focuses on
companies' ability to withstand disruptions. Manufacturing firms would be able to survive delays and continuously
change their supply chains to satisfy the changing requirements and desires of their customers, shareholders, and
other stakeholders thanks to the supply chain's resilience. The study's main goal was to determine was to find out
the effect of supply chain resilience strategies on operational performance of Manufacturing firms in Nairobi city
county, Kenya with specific objective of the study was to be find out the role of Multisourcing, Near shoring,
product harmonization and Inventory management strategies on operational performance of Manufacturing firms
in Nairobi city county, Kenya. The study's participants were all workers of Kenyan manufacturing firms in
Nairobi city county, Kenya. The study's target population was all 454 manufacturing companies in Nairobi and its
environs, drawn from 12 main manufacturing subsectors. The study's sample size was 189 respondents, who were
selected using a simple stratified random sampling technique. To achieve this, the study was adopted cross
sectional survey design. The researcher used questionnaires to collect data from the respondents. Descriptive and
inferential statistics was applied in analyzing the data using SPSS Version 23 software. This study tested the null
hypotheses that Multisourcing, near shoring, product harmonization and Inventory management strategies have
no significant positive effect on operational performance of manufacturing firms in Nairobi city county, Kenya.
The study found out all variables Multisourcing, near shoring, product harmonization and Inventory management
strategies have positive significance on operational performance of Manufacturing to improve on the
Manufacturing firms in Nairobi city county, Kenya. Firm’s operational performance, it was therefore
recommended that firms to some extent should adopt some strategies like Multisourcing, Nearshoring, Product
harmonization stand Inventory management. The study also recommends that manufacturing firms should
advance on the supply chain risk management strategies as mitigation measures. Particularly, they should be
careful on the subsequent dimensions of the supply chain risk management, equal risk sharing, quality planning,
quality assurance and inspection in production. Enhancement of stated elements of risk management of the supply
chain will lead to better supply chain risk mitigation, which will translate into improved performance.
Buyer supplier development is important to organizations in management of contracts by minimizing operation costs in order to increase firm performance. However, the increasing number of complaints regarding failed attempts to deliver goods and services at the right time has made it impossible for some governmental projects to be completed at the stipulated time. Therefore, the study sought to assess the effect of supplier buyer development on performance of contract management unit in Uasin Gishu County Government.
In general sense, a good financial performance suggests that the firm is doing better in terms of competitiveness since profitable opportunities result in higher production and sales. The advantage of employing financial measures is their agreed-upon definitions and the easiness of calculations.
According to the study results reported by an authors, industry concentration, growth, market share, geographic dispersion of production, research and development expenditures and size measured by sales have a positive impact on the financial performance of the companies.
Sustainable supplier selection: the effect of logistical collaboration on log...IJERA Editor
This research assesses the effect of buyer-supplier collaboration on logistical performance by considering sustainable criteria. The paper presents the results of a survey with 124 respondents of the Brazilian organizations to understand the relationship among Third-Party Logistical (3PL), Consumer Packaged Goods (CPG) industry and Carriers. The results disclose that elements of logistical collaboration (interpersonal, tactical and strategic) exert positive influence in logistical performance (reliability, transport and risk). The interpersonal and strategic collaboration indices positively influence the reliability, which performs the highest-level performance index.
The Influence of Supply Chain Integration on the Intrapreneurship in Supply C...IJERA Editor
These days, SMEs pay a lot of attention to concept of Supply Chain Management (SCM) in order to achieve
competitiveness. The logic behind such act is integrating the activities of value creation within any kind of
organizational context. Such integrity would collaborate with managers to accomplish the competitive edge that
they are aiming to achieve. The goal of current research is to identify scopes of a unique construct which is
known as Entrepreneurial Supply Chain Management competency. Therefore, the notions of SCM and
entrepreneurship are being aligned together for evaluating the organizational performance. The outcomes
demonstrate that SCM in fact is a critical issue that can alter the organizational performance, thus, through
consideration of SCM, we should focus on supply chain integration and its impacts on intrapreneurship and
innovation of an organization. In order to be successful in such competitive context, SMEs need to provide
novel competences which are not imitable and to increase their application in supply chain and also to improve
their total performance.
Adoption of Vendor Managed Inventory Practices on Supply Chain Performance in...AkashSharma618775
Following the Corona pandemic, which has spread across the world by September 2020, many companies
around the world have been aware of the fact that they should always strive to inculcate and rely on the efficient
supply chains and networks in order to compete effectively in international markets and to sustain their
competitive edge. As a matter of fact, the management of supply chain has caused a paradigm shift in the way most
organisation operates (Brandt, 2009) The main objective of this study was to determine role of adoption of vendor
managed inventory practices on supply chain management performance in the selected automobile industries in
Nairobi County, Kenya with specific objective to establish role of supplier demand visibility, communication
mechanism, inventory decisions, replenishment decisions and supply chain management performance in the
selected automobile industries. The study adopted a cross sectional research design. The target population
comprised employees in supply chain department in selected automobile companies in Nairobi according to their
size. Snowball sampling technique was adopted in this study. A semi- structured questionnaire was administered
through the e-mail survey and hand delivery. Secondary data was obtained from both published and unpublished
records. The questionnaire was tested for validity and reliability. Both quantitative and qualitative techniques was
used to analyses the data with the assistance of SPSS software program version 25. The study found that supplier
demand visibility, communication mechanism, inventory decisions, replenishment decisions have significant role
on supply chain management performance in the selected automobile industries. In conclusion the study
recommended that automobile manufacturing companies should source for more resources, work on its time
constraints and negative attitude from some stakeholders and public when undertaking the process. Further the
companies need to gain visibility into their complex network of suppliers and logistics providers to collectively
sense and properly respond to changes in supply and demand, customers are less likely to tolerate delivery or
product errors. Supply chain demand visibility is crucial in preventing order errors and will prevent customers
from taking their business elsewhere. This will ensures them are knowledgeable about every aspect of your
inventory and allows firms to better help customers by improving performance and reducing errors. Putting in
place the right infrastructure can help firms to achieve better supply chain visibility and therefore reduce costs,
improve performance and identify problems, ultimately improving your reputation and growth.
Enterprise Relationships are fundamental to business
success. The research - conducted with Cambridge University Business School - shows how relationships lead to long
term mutual advantage, in which value is largely created by
the quality of interaction between the parties. The overall
performance of a company will therefore depend on how
well it is able to manage its own Enterprise Relationships.
Furthermore the White Paper starts to explore how digital communication can deliver value into these relationships.
This study pursued to investigate the effects of supply chain management practices on organizational
performance in the food complex industries in Asella town. A cross-sectional survey research design was
employed in this study. The population of interest comprised of all suppliers, employees, customers, retailers
were involved and multistage sampling was employed and 158 sample
Value Creation in Collaborative Supply Chain Network in Automobile Industry i...Waqas Tariq
ABSTRACT Abstract Purpose : This paper aims to determine the key factors that influence the value based supply chain in the collaborative network of Automotive sector in India and the extent of information sharing in a B2B set up and its implication on business decisions in the Automobile sector. The paper makes an attempt to examine the value creation in the supply chain network of e-commerce based automobile companies. The predominant factors that influence the Collaborative practices of Automobile Original Equipment Manufacturers (OEMs) in Karnataka and their dealership network in the background of e-commerce is thoroughly examined. Design/methodology/approach : In the paper, the systemic and logical analysis of value creation expert research made over the past several years is used and statistical analysis(Exploratory Factor Analysis) has been conducted based on the survey results of perceptions of the dealers assimilated through online survey. Findings : Major empirical findings based on automobile companies’ data analysis vide Exploratory factor analysis allow stating that adoption of e-based collaborative arrangements and information sharing based on trust and long term alliance between partners enhances the value creation and results in the improvement in Supply chain management. It thus results in: Savings in cost, Timely decisions based on superior information, Better and positive relationships with Manufacturer-Suppliers and Dealers, Superior and strong collaboration, Integrated customer service and Enhancement of ultimate consumer value. Originality value: This paper has thoroughly examined the Collaborative network of the e-commerce based automobile co’s. and empirical findings suggest that the entire supply chain network has reaped the benefits of technology adoption and its impact on business results is tangible which could be evidenced in positive outcomes like improvement in Manufacturer-Supplier-Dealer co-ordination and enhancement of long term customer relations. Research limitations/implications : The presented research work confirms the positive implications of technology on value creation in the supply chain network of e-commerce based automobile companies. Research in this area highlights only the value addition in the collaborative supply chain network in select automobile co’s (OEMs) in Karnataka and their dealership network in India. Broader generalisations could be drawn using this information, by selecting a larger sample size. The future research should be made on the entire industry in the country and by bringing more co’s. and suppliers into the sampling frame. Keywords : Value creation, Collaborative supply chain, Information sharing, Superior collaboration.
The Importance of Supply Network Development and Firm’s Capabilities in Build...YogeshIJTSRD
This paper discusses the advantages and importance of supply chain network development and firm’s capability to enhance competitive advantage. Supplier network supply network plays an importance role for the company so that they will be able to play a more active role and optimal in the management and operation of the network of suppliers that include product design, production, suppliers, marketing and distribution. In large companies, a strong distribution network is needed, as well as in small and medium scale companies. Companies are required distribution network that is robust in the entire territory of Indonesia. To succeed in this objective, Companies need a distribution strategy, which is an area of marketing strategy aimed primarily at increasing sales and the number of customers to support sustainable growth. Robertus Sigit Haribowo Lukito | Lena Ellitan "The Importance of Supply Network Development and Firm’s Capabilities in Building Business Performance: A Theoretical Review" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd39903.pdf Paper URL: https://www.ijtsrd.com/management/strategic-management/39903/the-importance-of-supply-network-development-and-firm’s-capabilities-in-building-business-performance-a-theoretical-review/robertus-sigit-haribowo-lukito
How does capital structure affect firm s market competitiveness.pdfNghiên Cứu Định Lượng
Các quyết định về vốn hiệu quả không chỉ làm tăng hiệu quả hoạt động của doanh nghiệp mà còn mang tính chiến lược để mang lại lợi thế cạnh tranh của doanh nghiệp trên thị trường. Sử dụng một tỷ lệ nợ phù hợp giúp doanh nghiệp cân bằng giữa nguồn lực bên trong và bên ngoài để cạnh tranh với các doanh nghiệp trong ngành. Nghiên cứu này nhằm tìm ra ảnh hưởng của cấu trúc vốn thông qua hệ số nợ (DR) đến năng lực cạnh tranh của doanh nghiệp (HHI) ở Việt Nam. Một mẫu gồm 574 công ty niêm yết trên sàn giao dịch chứng khoán của Việt Nam từ năm 2010–2018 được nghiên cứu bằng phần mềm STATA. Kết quả cho thấy cấu trúc vốn ảnh hưởng đến năng lực cạnh tranh của doanh nghiệp hình chữ U ngược. Đồng thời, DR ảnh hưởng đến HHI dưới dạng hàm hình chữ U trong các sản phẩm công nghiệp, thông tin và viễn thông và hàng tiêu dùng. Trong khi đó, DR ảnh hưởng đến HHI theo hình chữ U ngược trong các lĩnh vực dịch vụ tiêu dùng, nguyên vật liệu và tiện ích cộng đồng. Với kết quả của phân tích này, nghiên cứu cũng cung cấp các thảo luận cũng như các hàm ý chính sách đối với doanh nghiệp sử dụng tối ưu cơ cấu vốn để tạo lợi thế cạnh tranh trên thị trường.
Supply Chain Integration and Firm Performance: The Food (Fast-Food) Delivery ...QUESTJOURNAL
ABSTRACT: Over the years, the concept of Supply Chain Integration (SCI) and its effect on firm performance has been an essential topic of interest in the field of Supply Chain Management (SCM). Previous research on SCI and firm performance concentrated much on the manufacturing industry with less focus on other fastgrowing industries. This research mainly focused on determining the impact of Supply Chain Integration on performance in the fast food delivery service industry. The firms were selected based on their size and frequency of deliveries they make to customers. The research was conducted in a metropolitan city in Turkey with a considerable number of fast food delivery firms and moreover, with customers whose demand for fast food is essentially high. The results of this study further compliment the growing evidence which depicts a positive relationship between SCI and firm performance. On the contrary, this research also contradicts some of the results of the earlier research on Supply Chain Integration.Analysis of the results and regression showed that internal integration is positively related to external integration and firm performance. However, the correlation coefficients between internal and external integration showed high relationship while the relationship between the internal integration and firm performance showed a very feeble relationship but was significantly related. Similarly, external integration significantly has a positive relationship with firm performance but their relationship was however weak but they were significantly related.
Effect of Strategic Partner Practice on Supply Chain Performance in Tea Firms...journal ijrtem
Abstract: Strategic partner relationship is a critical issue for any business, especially in supply chain activities. Therefore, it is expected that firms that deliver e-procurement system in the supply chain are likely to strengthen their partner relationship. The purpose of this study was to establish the influence of strategic partnership management practice on supply chain performance in tea firms in Kenya. The study was guided mainly by Resource Based Theory. Explanatory research design was adopted. The target population was 4200 respondents from 12 tea firms. Purposive and proportional sampling was used to select a sample size of 365 respondents comprising of staff, top management and suppliers. Questionnaires and structured interviews were used to collect primary data. Pearson product moment correlation coefficient and linear regressions were used to test strength of the relationship between variables. The strategic partnership practice positively influences the supply chain performance among the tea firms[r=.535, n=231, p<.05]. The regression model indicated that strategic partnership practice account for 28.7% variation on supply chain performance. Hence tea firms enhanced strategic partnership practice purposely to improve supply chain performance by widening supplier relationships among the stakeholders. Tea firms should therefore embrace sound partnership practices to enhance firms’ supply chain performance which in turn lead to profit maximization.
Key Words: Strategic, Partnership, Practice, Supply chain Management, Supply Chain Performance, Tea Firms
EFFECTS OF SUPPLIER EFFECTIVENESS ON ORGANIZATION PERFORMANCE AT KENYA SEED C...paperpublications3
Abstract:Achieving competitive advantage in this competitive business environment is a challenge many managers face. Most organizations are faced with the delays in product delivery, ability of suppliers to concert their operating environment to create value. The supplier ineffectiveness, which affects organizational performance, which is as a result of reluctance to develop suppliers, build relations, and establish quality management and failure to use strategies which make suppliers a competitive advantage tool is a challenge. Even the process of developing suppliers, selection and retention has not helped either. The study was carried out to establish the effect of supplier effectiveness on organizational performance at Kenya Seed Company, Kitale. The main objectives which guided the research included: to establish the effects of Supplier agility on organizational performance; to investigate the process visibility on organizational performance; to find out the effect of supplier willingness on organizational performance and to determine effect of supplier capabilities on organizational performance. To explore these, a cross sectional study design was used. The target population was 360 from which 190 sample size was deduced for the study. Data was collected using focused group discussions and small groups discussions self-administered questionnaires, interview guides and content analysis to investigate the effect of supplier effectiveness on organizational performance. Findings showed that supplier effectiveness has significant positive and negative effects on performance. It was found that all the four components of supplier effectiveness influence the three dimensions of performance. The study also found out that where supplier effectiveness is high, the performance on organization is also higher, especially in areas that are affected by suppliers even though they may be internal to the buyer organization. It was therefore concluded that supplier effectiveness is an essential strategic tool for performance improvement. Hence organizations need to build relations that enhance supplier effectiveness so that performance of both the suppliers and buyer organizations can realize the benefits of this relationship in the supply chain network.
Implications Of Human Resource Variables On Supply Chain Performance And Comp...CSCJournals
This paper proposes a conceptual model indicating the effect of Human Resource (HR) variables on supply chain (SC) performance and to suggest best approach suited for Indian manufacturing organizations, in general, and automotive industries, in particular. This study is a part of a larger research project exploring SC related practices. The methodology of critical evaluation involved literature review of empirical research articles on performance measurement, SCM and HR practices. A critical analysis is carried out so as to identify research gaps in content of effect of HR on performance measurement of supply chains, as well as to propose directions for future research. A conceptual model is also proposed. Critical investigation of selected articles led to an idea that there can be significant effect of the role of human involvement on overall SC Performance. It is to be seen that how various parameters, taken from the literature review, affect SC performance and ultimately contributing to its competitiveness. The study is limited to supply chains of the automotive industries and their ancillaries located in Malwa region of M.P., India. Further research can be carried out by using data of various supply chains located in other parts of India to generalize the research. Also, other sectors and industries can be included.
Strategic Cost and Activating Competitive Advantageijtsrd
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FACTORS AFFECTING THE COLLABORATION IN SUPPLY CHAIN OF MECHANICAL ENTERPRISES IN VIETNAM
1. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
DOI: 10.5121/ijmvsc.2015.6402 17
FACTORS AFFECTING THE
COLLABORATION IN SUPPLY CHAIN OF
MECHANICAL ENTERPRISES IN VIETNAM
Luu Tien Dung
Department of Business Administration – International Economics, Lac Hong
University, No. 10 Huynh Van Nghe Street, Bien Hoa City, Dong Nai Province,
Vietnam
ABSTRACT
In the context of international economic integration, enterprises need to participate in the global supply
chain to take advantage of assets, talents and other capability. Base on the Structure Equation Model
(SEM-PLS) using primary data collected from 205 mechanical enterprises in Vietnam, the research result
shows that there are nine direct factors affecting the collaboration in supply chain including: (i) trust; (ii)
power; (iii) maturity; (iv) frequency; (v) distance; (vi) culture; (vii) strategy; (viii) policy; (ix)
commitment. Results of the research give strong evidences for policy makers and enterprises for
management the supply chain collaboration in mechanical sector in particular and other sectors in
general as well as its contribution to literature review of supply chain management.
KEYWORDS
Knowledge Management; Mechanical sector; Supply chain collaboration; Structure Equation Model
(SEM-PLS); Vietnam
1. INTRODUCTION
Under strong pressure from the international economic integration, Vietnam mechanical
enterprises have to locate, restructure the business activities towards improving competitiveness
and value added base on the construction and consolidation of the supply chain will play a role as
a key strategy. Supply chain is a wide network, consisting of many subjects and many
complicated relationships including many independent business organizations Therefore,
focusing on administratiion of the collaboration relationship in the chain had become one of the
most important matter that both the researchers and executor pay attention to. A lot of science
research has proved the influence of creating and maintaining the members’ relationship through
collaboration in the chain affects its effect. Therefore, building collaboration relationship is
necessary to improve the business efficiency in the supply chain.
The process of free trade and international economic integration helps Vietnam to become one of
the potential places to invest. Vietnam is actively joining AEC, TPP, FTA with the Customs
Union of Russia-Belarus-Kazakhstan, EVFTA and others. This is the key for Vietnam
enterprises to join in the global supply chain. Vietnam’s goal is to become a modern industry
country by 2020, therefore accelerating the development of mechanical industry is an important
task under the decision No. 186/2002/QĐ-TTg dated 26/12/2002 of the government which
approved the development strategy of Vietnam mechanical industry to 2010, vision to 2020.
However, according to VAMI, current mechanical industry is only meeting about 35-40% of the
domestic demands. The solution for the development of mechanical industry becomes critical
2. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
18
and challenging for Vietnam enterprises today. In order to have the sustainable development for
mechanical industry, aside from boosting the association and connection of companies, the
mechanical enterprises have to find a way to approach the world market by becoming a supply
place in the global chain. Setting up a suitable supply chain is a vital matter of each enterprise
and industry, however, the matter of identifying the entities within the supply chain and make the
entities to cooperate more with each other is a must for a sustainable development of the
enterprises.
This article focuses on making clearance factors that affecting the supply chain collaboration of
mechanical enterprises in Vietnam base on the Structure Equation Model (SEM-PLS) using data
collected from 205 mechanical enterprises in the Southeast region, one of the leading area in
industrial development, especially in mechanical industry in Vietnam that including Ho Chi
Minh City, Dong Nai and Binh Duong province. The research includes four parts: section 2
states the literature review, section 3 explains the applied research methods and study hypotheses
and section 4 presents the results and discussion.
2. LITERATURE REVIEW
2.1. The basic problems of supply chain collaboration
2.1.1. Supply chain collaboration
Supply chain collaboration (SCC) is increasingly important in organizations because of its
contributions to success of supply chain management and organization competiveness in the
global economy. In supply chain, partnerships allow members of the system to achieve the set
out objectives and meet the expectations of the consumers in the end (Samaddar et al., 2006). In
reality, the establishment of a perspective on partnerships is a strategic decision by the common
goals. According to Joffre and Koenig (1992) the coordination of the process of product supply
is the prerequisite to develop between the owner of the resources as well as the efforts of the
relationship. Perspectives of cooperation in relation to exchange are one of the effective means to
develop and control or reduce the competitiveness among the subject. Furthermore, the
partnership provides members in the distributed system with efforts to achieve the firm
objectives, improvement of efficiency in the relations and improve the ability to provide and
serve the customers (Vereecke and Muylle, 2006; Whipple and Russell, 2007).
Supply chain collaboration is widely studied from many different points of view sources and
collaborative concepts began to be widespread in the areas of supply chain (SC) in the mid-1990s
(Barratt, 2004). Collaboration is defined as a cooperation of two or more members base on
working together to create a competitive advantage through information sharing, joint decision
making, and sharing the benefits from greater profits by satisfying the customer needs than
acting alone (Simatupang and Sridharan, 2002). Anderson and Narus (1996) explains that
collaboration is one between independents but related companies to share their resources and
their abilities to meet the needs of customers. Anthony (2000) defines the term collaboration is
two or more companies share responsibility to exchange the spreading, management,
implementation, and performance measurement information plans. Soosay (2008) concluded that
the cooperation can be described as a reciprocal relationship type organization, in which
participants agree with the investment of resources, along with achieving goals, sharing
information, resources, rewards and responsibility as well as to make decisions and solve
problems together. In briefly, SCC helps a business organization coordinating and operating
efficiency including supply chain management, reducing costs and inventory, increasing the level
of customers satisfaction (Holweg, 2005; Soosay, 2008; Suong, H.T.T, 2012; Whipple et al.,
2007).
3. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
19
2.1.2. Contents of supply chain collaboration
Goteborg and Sweden (2007), Lambert (1998) concluded that the relationships in the supply
chain are mostly active vertically or horizontally way. Vertically relationship covers all of the
relationships within the enterprises, between components in difference classes. Horizontal
relationship includes relationships within a same class. A vertical chain completely connects the
first provider in many ways to the final customer. Vertical alignment occurs when a central
factors increase influence role to the other factors in many different classes. Vertical alignment is
always directed at both the relationship between the manufacturer and the first supplier and
between the manufacturers with the final customer (Christopher, 2005). There are three forms to
build supply chain collaborations including vertical collaboration, horizontal collaboration and
multi-dimensional cooperation (Backstrand and Safsten, 2006; Christopther, 1998; Mentzer,
2001; Togar and Sridharan, 2005).
2.1.3. The level of supply chain collaboration
According to Cohen and Roussen (2006), Jenny Backstrand (2007) the interaction in the supply
chain including three main components or more, referred to as transaction activity, collaboration
and links. Each level of interaction contains a continuum of the kind of relationship type, include
the following forms: (i) The transaction is generally understood as the exchange or transfer of
goods, services or financial to each other. A transaction relationship means the activity of
exchanging discrete value, especially about price (Achrol, 1991). The commercial transactions
that involved price negotiation when the relationship with suppliers is a rival relationship and the
goal is to aim to increase the personal profit of a member in the chain; (ii) The cooperation form
in general is like working together or cooperate with a partner to whom cannot connect
immediately. In other word, cooperate is to act or work together or with other partner so that both
can be beneficial. The types of collaborative relationships are rival cooperation or non-rival
cooperation (Cox, 2001), partners (Webster, 1992; Mentzer and associates, 2000), and the
cooperation between manufacturer and supplier (Cravens and Associates, 1996); (iii) Linking
form is often viewed as the union of the two entities into one entity for a business progress
between two actors, the affiliate relationship consists of vertical link (Webster, 1992), buy back
and venture (Ellram, 1991), and full-ownership (Bengtsson et al., 1998) or merged (MacBeth and
Ferguson, 1994).
2.2. Factors affecting supply chain collaboration
A vast supply network has a lot of interwoven connections, contain various contradictions
between the subjects comes from a range of different factors (Simatupang and Sridharan, 2002).
When focused on analysis the relationship between the components within the supply chain,
research has shown nine important factors affecting the supply chain collaboration, as are
summarized in table 1:
Table 1: Variables definition
Variables Definition Authors
Independent variables
Trust A positive belief, attitude, or expectation of one
party concerning the likelihood that the action
or outcomes of another will be satisfactory
(Andaleeb, 1992). This factor therefore affects
positively on sullply chain collaboration.
Backstrand (2007);
CoveyLink Worldwide
(2006); Crook et al.,
(2008); Douglas M.
Lambert and Michael
Knemeyer (2004); Fawcett
4. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
20
et al., (2008); Fawcett et
al., (2011); Forslund and
Jonsson (2009); Fyneset et
al., (2005); Kwon and Suh
(2004); Nyaga et al.,
(2010); Simatupang et al.,
(2004); Suong, H.T.T
(2012); Walter (2003);
Zacharia et al. (2009);
Power When designing a supply chain and cooperating
with other companies, one has to consider the
other actor’s size, impact, and status. If the
other actor is larger in size, has greater impact,
and higher status, it will have more power in
that relation (CoveyLink Worldwide, 2006;
Backstrand, 2007; Suong, H.T.T, 2012). With
greater power comes the ability to force a
weaker actor to make decisions that are merely
favorable for the powerful actor. The effect of
power in supply chains has in fact been pointed
out by several authors.
McDonald et al., (1999);
Backstrand (2007); Joyce
and Mattew (2002);
Buttaney and Lawrence
(1988); Suong, H.T.T
(2012); Donald C. Mead
(1995); Butaney and
Lawrence (1988); Watson
(2001); Cox et al., (2004)
Maturity Increased supply chain interaction maturity
leads to reduced uncertainty, and improved
business performance and is the best route to
follow to achieve competitive advantage. The
characteristics of process maturity are
predictability, capability, control, effectiveness,
and efficiency
Childerhouse et al., (2003);
Backstrand (2007); Suong,
H.T.T (2012)
Frequency Frequency refers to how often a transaction
occurs. More transactions suggests greater
routinization of interaction and is hence, an
implication/incitement to form a closer
relationship to make sure that transactions run
smoothly
Ellarm (1991); Sahay
(2003); Suong, H.T.T
(2012); Cooper (1997)
Distance Distance between the partners in the supply
chain refer to the geographical distance, the
culture distance and the organizational gap
between partners through the supply chain
Cooper (1997); Suong,
H.T.T (2012)
Culture Defined as a shared values and belief that can
help to understand organizational functioning
and provide behavioral norms.the collective
programming of the mind which distinguishes
the members of one group or category of people
from another. Differences in organisational or
social level, could create differences of opinion
or conflicts of interest (Tan et al., 2006)
Tan et al., (2006); Jin and
Hong (2007); Suong,
H.T.T (2012); Stephen M.
Dent (2006)
Strategy Collaborative planning refers to collaborations
among trading partners to develop various plans
such as production planning and scheduling,
new product development, inventory
replenishment, and promotions and
Simatupang and Sridharan
(2005, 2008); Simatupang
et al., (2002); Suong,
H.T.T (2012); Stephen M.
Dent (2006); Manoj
5. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
21
advertisement. Decision synchronization refers
to the process by which supply chain partners
orchestrate decisions in supply chain planning
and operations that optimize the supply chain
benefits (Manoj Hudnurkar et al., 2013).
Hudnurkar et al., (2013).
Policies Governmental intervention in business
activities. Local governments exert more direct
influences by implementing formal and
informal policies related to economic activity
Beth Jenkins et al., (2008);
Suong, H.T.T (2012); Cai
et al., (2010)
Commitment Commitment refers to the willingness of trading
partners to exert effort on behalf of the
relationship and suggests a future orientation in
which firms attempt to build a relationship that
can be sustained in the face of unanticipated
problems (Porter et al., 1974).
Walter (2003); Fynes et
al., (2005); Chen et al.,
(2011); Kwon and Suh
(2004); Nyaga et al.,
(2010); Zacharia et al.,
(2009)
Dependent variable
Collaboration in supply chain of mechanical enterprises in Vietnam
Source: Summarized by author (2015).
3. METHODOLOGY AND RESEARCH HYPOTHESES
This research was done based on two methods: (1) qualitative research is conducted in order to
construct, calibrate the components scale: the trust rate between the partners; The power of
partner; The level of maturity of the relationship between partners; The frequency of transactions
between partners; The distance between partners; The policy of the Government; Cultural
cooperation, Partners cooperation strategy; Committed, (2) quantitative research aims to collect,
analysis survey data, as well as testing the component scale, measuring the research theory
model and the hypothesis.
Preliminary research is built and calibrated the scales and adds the observation variables through
qualitative and quantitative methods. Preliminary qualitative research is done through expert
group discussions with mechanical enterprises by the sampling method. The content of the
discussions revolves around the of issues related to the factors that influence customer loyalty;
Give out the research model for the discussion group to comment about the factors that affect the
supply chain collaboration; give out the draft scale built up by the author group and corrected by
the discussion group. After the exchange of ideas, the discussion group agreed with the model
proposed by the author group. The discussion group is also recommended to calibrate some of
the name of the scale components, and proposed to amend, add some convenience observation
variables in Dong Nai province. From that, the research group has agreed about the factors that
affect the supply chain collaboration research model, include: (1) the degree of trust between
partners; (2) the power of partner; (3) the degree of maturity in the relationship between the
partners; (4) the frequency of transactions between partners; (5) the distance between partners;
(6) the policy of the government; (7) collaborative culture; (8) collaboration strategy of partners;
(9) commitment. The scale of the research model included 35 observation variables measured by
Likert scale 5 points with 1- completely disagree to 5 – completely agree. Preliminary
quantitative research is done by a survey with 40 samples from the mechanical business. The
results showed that the Cronbach’s Alpha coefficient has achieved 86.07%, showed that the
scales have high reliability. The formal research is done by sending direct survey questionnaires,
direct phone and email as a convenience method to the mechanical enterprises in Ho Chi Minh
6. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
22
City, Dong Nai and Binh Duong Province is divided by type, category, and area to ensure the
representative of research sample.
The data after cleaning and the evaluate the normal distribution will be analyzed by SPSS and
Smart PLS software to test the scale’s quality, the relevance of the model and test the research
hypotheses about the relationship between the dependent and independent variables in the
research model.
Research assumptions including:
H1: The degree of trust between partners affects positively on the collaboration in supply chain
of mechanical enterprises in vietnam
H2: The power of partners affects positively on the collaboration in supply chain of mechanical
enterprises in vietnam
H3: The degree of maturity in the relationship between the partners affects positively on the
collaboration in supply chain of mechanical enterprises in vietnam
H4: The frequency of transactions between partners affects positively on the collaboration in
supply chain of mechanical enterprises in vietnam
H5: The distance between partners affects positively on the collaboration in supply chain of
mechanical enterprises in vietnam
H6: The policy of the government affects positively on the collaboration in supply chain of
mechanical enterprises in vietnam
H7: The collaborative culture affects positively on the collaboration in supply chain of
mechanical enterprises in vietnam
H8: The collaboration strategy of partners affects positively on the collaboration in supply chain
of mechanical enterprises in vietnam
H9: The commitment affects positively on the collaboration in supply chain of mechanical
enterprises in Vietnam
4. RESULTS AND DISCUSSION
Datasets are cleaned after 205 samples which enough for the conditions of factor analysis to
explore the structure and linear model (Bagozzi and Yi, 1988; Hair et al., 2010, 2011, 2013;
Henseler, 2010; Henseler and Sarstedt, 2013; Hoyle, 1995; Jackson, 2001, 2003; Kline, 1998;
Marcoulides and Saunder, 2006; Ringle et al., 2005). Characteristics of the sample are
categorized into 4 groups which consisting of (i) the type of enterprises (ii) enterprise size, (iii)
industries and (iv) national origin (table 2).
Table 2: Characteristics of study sample
Variables Attributes
Enterprises by type
Enterprises by size
Enterprises by
Industries
Enterprises by
national origin
Enterprise with foreign capital = 61.97%; Domestic enterprise =
38.03%.
Super small = 18.22%; small and medium = 70.56%; Large enterprise
= 11.22%
Engine manufacture, parts, assemble parts cluster = 47.1%; Repair =
34.68%; domestic appliance = 18.22%
Vietnam = 36.03%; France = 5.37%; Japan =16%; Korea = 14.73%;
Taiwan = 13.5%; China = 7%; Others = 7.37%
7. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
23
Reliability
The reliability and validity of indicators in the model are tested by system of criteria and is
presented visually in table 3. Individual factor reliability was assessed by examining the loadings
(>0.50) of respective factors on their respective latent constructs (Hulland, 1999). The composite
factor reliability coefficients of the constructs ranged from 0.7401 to 0.9175, which met the
standard of 0.70 as suggested by Fornell and Larcker (1981).
Table 3: Summarizes the results of testing scale
Latent
variables
Indicator Factor
loadings
Indicator
reliability
(Loadings2
)
Composite
reliability
Average
Variance
Extracted
Collaboration
(Y)
Col1 0.8119 0.6592 0.9175 0.6898
Col2 0.8276 0.6849
Col3 0.8298 0.6886
Col4 0.8478 0.7187
Col5 0.8354 0.6978
Commitment Com1 0.7759 0.6020 0.7401 0.5430
Com2 0.8512 0.7245
Com3 0.8230 0.6773
Culture Cul1 0.1908 0.0364 0.8884 0.7992
Cul2 0.8912 0.7942
Cul3 0.8936 0.7985
Frequency Fre1 0.7104 0.5046 0.8365 0.6323
Fre2 0.8858 0.7846
Fre3 0.7794 0.6074
Maturity Mat1 0.7616 0.5800 0.8424 0.5722
Mat2 0.7830 0.6131
Mat3 0.7565 0.5723
Mat4 0.7233 0.5231
Policy Pol1 0.7582 0.5748 0.7825 0.5521
Pol2 0.8185 0.6699
Pol3 0.6419 0.4120
Power Pow1 0.4075 0.1667 0.8170 0.5425
Pow2 0.7959 0.6334
Pow3 0.8567 0.7339
Pow4 0.7979 0.6366
Strategy Stra1 0.8186 0.6701 0.8917 0.7322
Stra2 0.8898 0.7917
Stra3 0.8588 0.7375
Trust Tru1 0.7666 0.5876 0.8867 0.6619
Tru2 0.8311 0.6907
Tru3 0.8144 0.6632
Tru4 0.8402 0.7059
Distance Dis1 0.7773 0.6041 0.8407 0.6382
Dis2 0.8560 0.7327
Dis3 0.7620 0.5806
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Convergent Validity
Fornell and Larcker (1981) suggested that convergent validity of scales is established in the
condition of the variance extracted value exceeds 0.50. Results indicated that the variance
extracted for ten variables ranged from 0.5425 to 0.7332.
Discriminant Validity
Discriminant validity was assessed by the test provided by Fornell and Larcker (1981) in which
the pair-wise correlations between factors obtained were compared with the variance extracted
estimates for the constructs making up each possible pair. The Discriminate validity is adequate
when constructs have an AVE loading greater than 0.5 meaning that at least 50% of
measurement variance was captured by the construct (Chin, 1998). In addition, discriminate
validity is confirmed if the diagonal elements are significantly higher than the off-diagonal
values in the corresponding rows and columns. The diagonal elements are the square root of the
AVE score for each construct. These values are shown in Table 4.
Table 4: Fornell-Larcker Criterion Analysis for Checking Discriminant Validity
Hypothesis Testing
The R2
measures a construct’s percent variation that is explained by the model (Wixom and
Watson, 2001). The coefficient of the determination, R2
equal 0.839 for the Collaboration
endogenous latent variable. This mean that the nine latent variables (1) the degree of trust
between partners; (2) the power of partner; (3) the degree of maturity in the relationship between
the partners; (4) the frequency of transactions between partners; (5) the distance between
partners; (6) the policy of the government; (7) collaborative culture; (8) collaboration strategy of
partners and (9) commitment) moderately explain 83.9% of the variance in Collaboration.
Results of testing the hypotheses in the research model showed that compared with initial
expectations all of nine relationships are acceptable.
In the nine factors affecting the results supply chain collaboration, the impact of Strategy are
strongest (β = 0.227), followed by Culture (β = 0.221), followed by Power (β = 0.189),
Frequency (β = 0.146), Distance (β = 0.140), Commitment (β = 0.128), the impact of Policies
and Maturity (β = 0.129) and is finally the impact of Trust (β = 0.078). The nine factors
moderately strong predictor of Collaboration in supply chain of mechanical enterprises. The
quality of the structural model for each endogenous block can be assessed by the Redundancy
index (Chantelin et al., 2002). Because of the objective of PLS is to maximize variance explained
9. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 4, December 2015
25
rather than fit, therefore predictionoriented measures such as R2
are used to evaluate PLS models
(Chin, 1998). Chin (1998) recommended that a bootstrapping procedure using 1000 sub samples
was performed to evaluate the statistical significance of each path coefficient. Table 5 shows
hypothesized path coefficients along with their bootstrap values and T’ values.
Table 5: Showing path coefficients along with their bootstrap values, T-Statistics
In this study, 5000 times analyzed repeatly with Bootstrap method was conducted in order to test
the stability of the estimates for parameters. The results show that the difference from the initial
estimate method does not have a huge difference compared to the estimates by bootstrap
methods. All the difference in the estimates is not significant statistically. So the model estimates
of reliability are guaranteed for the verification of model assumptions in this research.
Figure 2: Structural equation modelling
The evaluation of PLS model is based on prediction-oriented measures that are nonparametric
(Chin, 1998). The PLS structural model is mainly evaluated by Goodness-of-Fit (GoF)
(Tenenhaus et al., 2005) and by using the Stone-Geiser Q-square test for predictive relevance
(Stone, 1974; and Geiser, 1975). Goodness-of-Fit (GoF) was employed to judge the overall fit
of the model, GoF, which is the geometric mean of the average communality and the
average R2
, represents an index for validating the PLS model generally, as looking for a
compromise between the performance of the measurement and the structural model,
respectively. This model gets the GoF index was 0.7422 (table 6).
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26
Table 6: Showing Model Evaluation Results
Results reveal that for this model all the blocks had high values of H2
, ranging from -0.4472 to -
0.2388 and F2
ranging from 0.3383. All H2
and F2
values were positive (above threshold level),
meaning that the model had acceptable predictive relevance.
Policy implications for the development of supply chain collaboration of mechanical
enterprises in Vietnam in the context of international economic integration
Empowering and the capacity of enterprises to consolidate power for the partners: Build up
enterprises image to enhance the degree of trust in their dealings with partners: through the
implementing measures, enterprises maintain and develop their capacity. If the enterprise always
focus on developing the above aspects, its capacity will have high evaluation and through that
the enterprises are eligible to consolidate and increase its power to partners in order to attract the
collaboration voluntarily as well as pressure the partners to be proactive in cooperation with
enterprises within the chain. Affirm the brand value in the development of Vietnam mechanical
industry with the promotion of applying technology in business, improve production technology
and continue to focus on improving the quality of the product, be active in the material sources.
The producers must regularly maintain the trading activities with partners in order to enhance
the level of maturity, making convenience to promoting collaborating relationship: through the
relation between the enterprises with partners in the industry, reach the maturity in the
relationship means that enterprises have the ability to predict supply and demand and can
effective control partner through aspects such as the habits, customs transactions regarding the
method of payment, conditions of delivery, the method of delivery. That will help the business
relations of enterprises to be effective.
The producers must proactively enhance the frequency of transactions between the actors in the
supply chain: enhances the frequency means to increase the number of transactions between
enterprise and partner in the chain. Once the transaction takes place regularly, it will reinforce
the level of cooperation between enterprise and partner.
Plan an appropriate cooperation strategy with new business condition to: first of all, enterprises
in the industry have to identify their goals when participating in the transactions. To determine
this goal, enterprises will analyze the benefits from economic and financial that they will
achieve. Merged and incorporated enterprises can take place with difference scale and forms
based on the structure of the enterprises, purpose, and the relationship between the parties.
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27
Recommendations for the Government and other authorities: Need to enact legal soon for the
enterprises to be convenience in business activities.
Recommendations for mechanical industry association: The Association must be the real bridge
for the enterprises in the industry to talk, share information as well as feedback the information
about the obstacles, hardship of the enterprise during the business process. The Association will
certainly be the playground of any company in the industry despite its scope like. With that, the
Association will truly become a forum for the enterprises to share information with each other as
well as getting information to bind together, create the base for the enterprises to increase the
cooperation to grow together. At the same time the Association will really become a bridge of
the enterprises, reflect their distress to the Government Administration in time as the
implementation.
5. CONCLUSION
This research bases on the survey data of 205 mechanical enterprises in Ho Chi Minh city, Dong
Nai anh Binh Duong province in the Southeast region of Vietnam and through econometric
models, research results have shown that there are nine factors that affect the supply chain
collaboration, included (1) trust between partners, (2) power of partners (3) level of maturity in
collaboration, (4) transactions frequency, (5) distance between partners, (6) collaboration culture,
(7) collaboration strategy, (8) policies of government and (9) commitment of partners. Therefore
it need to have measure to improve in turn or in sync the nine factors that were calculated and
calibrated.
ACKNOWLEDGEMENTS
The authors would like to thank everyone, just everyone!
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Authors
Luu Tien Dung: Lecturer-Researcher at Lac Hong University, University of
Economics and Law - Ho Chi Minh City, Vietnam. PhD in Economics, Master in
Social Science, B.A in International Economics. Main research areas:
Development economics, Agriculture Economics, Economics applied in Business
Administration.