The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies

Purpose– This research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufacturing companies that use ERP system.Design/methodology/approach – The questionnaire survey was posted to the Malaysian manufacturing companies that are using ERP system in order to investigate the relationship between ERP system and SCM performance. The respondents of this study were the MIS or IT executives. A total of 80 usable responses were received and used in the analysis. Findings– The findings of this research indicated that there is a positive and significant relationship between ERP system i.e. (integration, material management, production planning, and controlling), and SCM performance.The workflow management, however, does not have a significant relationship with SCM performance.The findings of this study imply that the successful implementation and the effective usage of ERP system can contribute toward enhancing supply chain management performance in many ways such as, integration of internal business processes, enhancement of information flow among different departments inside the company, improvement of the company's relationships and collaboration with outsourcing suppliers, customers, and supply chain partners.Research limitations/implications – This research focuses only on post-implementation of ERP system life cycle, where ERP system passes through three implementation stages of system life cycle and that includes pre‐implantation stage, implementation stage, and finally post‐implementation stage. Two or three stages of ERP system life cycle could be investigated simultaneously.Practical implications – There should be many success records in ERP system and this is to prove to companies that ERP systems can contribute toward improving their overall business performance.Therefore, this research encourages companies to adopt ERP systems and then contribute to technology diffusion. The finding of this study supports this justification and records a new success of ERP systems in Malaysian manufacturing companies. Originality/value – The results of this study will enable companies to achieve optimum usage of ERP system after the implementation stage and help to avoid system failure and achieve better SCM performance. The study contributes toward technology diffusion between companies through reducing the likelihood of ERP systems failure, and therefore introduces ERP systems to other manufacturing companies in Malaysia

ERP System Implementation in a Leading LED Manufacturing Firm in Malaysia. A Supply Chain Perspective

valuable and quality information exchange to perform their daily operations and long-term action plan. Hence, selecting and embracing the right supply chain or business management software has become essential to organization. Most Malaysian manufacturer in prefer in adopting to an enterprise resources planning (ERP) system. However, implementing ERP system successfully is costly and complex, and often shows high disappointment rates or even abandonment due to need of fit with the business or social culture. The study conducted to explore the ERP system implementation in a manufacturing-based organization from the perspective of supply chain management. The ERP system implementation could have either positive or negative affects towards organization or company in terms of performance and innovation. The empirical data were collected using in-depth interview as an instrument in a LED manufacturing company. The result confirm that data cannot be editing after done click, server down and more procedure and process are the causes of ineffective implementation of ERP system in the company. This study gives insight to all top management and supply chain practitioners in the manufacturing industry company in implementing ERP System. Furthermore, the findings of this study could also be beneficial to all ERP users as they would be able to understand the ERP system implementation in sectors apart from manufacturing industry. Finally, the outcome of this study could be useful to ERP system adopters in different developing countries. This is one of the first studies, which adequately covers the challenges faced on ERP implementation itself in a LED-manufacturing firm

The moderating effect of environmental regulation and policy on the relationship between total quality management (TQM) and organizational performance in the Malaysian food and beverage companies

There have been inconsistent findings in the literature concerning the relationships between TQM and organizational performance. Hence this research has prompted further investigation on the effect of other variables that may better explain the nature of these links. In the related literatures, many theories have suggested that the compatibility between strategies, resources, and capabilities are the keys for organizational success. The main purpose of this study is to investigate the moderating effects of environmental regulation and policy (ERP) on the relationship between total quality management (TQM) and organizational performance (OP). Quality assurance (QA) and continuous process improvement (CPI) as TQM elements considered in this study were moderated with their respective relationships with organizational performance. Therefore, to achieve this purpose, this study has integrated different theories such as the contingency and the institutional theories in order to provide the effect of QA and CPI on successful strategy implementation. Questionnaires were distributed to 250 Malaysian food and beverages companies. 71 questionnaires were returned and used in the analysis using the PLS-SEM. Studies revealed that TQM can be divided into the management or soft aspects (management concepts and principles) of TQM and the technical or hard aspects (management tools and techniques) of TQM . This study is exclusively based on the soft elements of TQM. The results of this study revealed that QA and CPI have always been significant predictors of organizational performance by following the regulations and policy related to environment. More importantly, the results have also confirmed the moderating effect of environmental regulation and policy on the relationships between TQM and organizational performance. This study also supported the premises of the contingency theory and the institutional theory by reaffirming the importance of the supportive ERP for any successful strategy implementation in enhancing organizational performance through the implementation of innovative practices. However, this result cannot be generalized as data were collected through a cross-sectional approach. Future research can extend it to longitudinal researc

The development of a research framework for inventory performance improvement of the automotive manufacturing industry: review of literature from 2011-2020

The main purpose of this study is to examine existing literature on how inventory performance in the automotive manufacturing supply chain can be improved. Articles reviewed are from the last ten years that is related to automotive manufacturing industry and targeted to inventory performance. Transformational changes are happening in the automotive manufacturing supply chains with ubiquitous technology leading the transformation. Inherently, due to its outsourced manufacturing in dispersed locations globally, communication and coordination would be affected in some form. This results in companies in the automotive manufacturing supply chain resorting to hold more inventory to mitigate the uncertainty. Therefore, to address this issue, this study conceptualises a theoretical framework that is adapted from Galbraith’s (1974) Organisational Information Processing Theory. The recommended framework may provide a guide to practitioners on understanding the intricacies of supply chain integration and how technology tools may help in mitigating risks and improve inventory performance (Abstract by authors

Critical success factors for successful implementation of enterprise resource planning systems in manufacturing organizations

This study attempts to study critical success factors affecting Enterprise Resource Planning (ERP) systems implementation success in Malaysian manufacturing organization. Organizational resistance is used in order to understand the moderating effect on the above relationship. User satisfaction and predetermined goals were used to judge whether an ERP system implementation is a success or failure

SME Development in Malaysia: Domestic and Global Challenges

The primary objectives of this paper are to analyze and discuss the development of Malaysian SMEs and their role, as well as various contributions, in the national economy. The paper goes further by reviewing extant literature to identify the major challenges facing this sector in Malaysia as well as government policies aimed at the development of SMEs. We find that, while the government has implemented many programs to strengthen the performance of SMEs in the economy, Malaysian SMEs still face many challenges, both domestic and external, which could hinder their resilience and competitiveness. A number of strategies which could assist them to access new markets, increase their revenues and expand their customer bases are identified.Malaysian economy, Malaysian SMEs, government assistance programs

Social-psycho Issues of Enterprise Information System Usage among Government Outsource Vendors Comprising Malaysian Small-Medium Enterprises

This paper describes the socio-psychological issues that hinder the holistic usage of ERP system among sampled Malaysian SME’s that were the vendors through government outsourced projects. Five hundred questionnaires were sent to the pre-identified SMEs in Selangor through e-mail, 251 questionnaires were returned and only 110 were taken for data analysis, representing 44% of the response rate. The study found that the perceived benefits and social influence have positive significant relationship with the ERP system usage. The social influence has the strongest effect towards the ERP system usage among SMEs in Selangor. The system complexity does not influence the relationship between socio-psychological factors and ERP system usage among SMEs in Selangor. This study provides insight for the management of SMEs and the service providers on the factors influencing the ERP system usage. It contributes to the breadth of knowledge of the ERP system in SMEs from the perspective of a developing nation since the SMEs play an important role in the nation’s economy

Preparedness for ASEAN Economic Community: perspective of Malaysian SME manufacturers

The ASEAN Economic Community (AEC) initiative poses both significant opportunities and difficult challenges to the Malaysian small and medium-sized enterprises (SME) communities. This research sets out to study the preparedness of local SMEs for the impact of the AEC implementation and their capabilities to capitalize on the opportunities. The manufacturing sector has been selected for study and the research efforts focus on the procurement function in the organizations. Procurement competences are gauged from four key perspectives: supplier relationship building, supply optimization, supplier capability auditing and purchasing integration. SMEs’ preparedness in this critical business function to compete and exploit opportunities in a post-AEC era, is investigated. Using a mixed research strategy approach, the study explores SME procurement practices in the two biggest manufacturing sub-sectors in Malaysia: Resource-based (RB) and Electrical and Electronics (E&E). The study also compares and contrasts locally-owned and foreign-owned SME manufacturing operations in these two sub-sectors. It investigates possible differences in the extent of SME preparedness in different industrial and organizational context. The results of the study provide an understanding of the key factors which have contributed to variations in SME’s attitude towards policy awareness. The findings also highlight the procurement competencies that Malaysian SMEs in the manufacturing sector could improve in order to compete effectively post-AEC