Supply chain management practices as a sources of competitive advantage for food processing SMEs in Penisular Malaysia
2014
Nik Rozana Nik Mohd Masdek | Mohd Fairuz Othman
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 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 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, 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.
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