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The Proposed Conceptual Model for Investigating Moderating Effects of Contextual Factors on Supply Chain Management Practice-Performance Link in Malaysian Small and Medium Enterprises

Author(s): Thoo Ai Chin | Abu Bakar Abdul Hamid | Huam Hon Tat | Rohaizat Baharun | Rosman Md Yusoff | Amran Rasli

Journal: International Journal of Business and Management
ISSN 1833-3850

Volume: 6;
Issue: 12;
Date: 2011;
Original page

Small and medium enterprises (SMEs) are playing an increasingly important role in sustaining economic growthand generating employment in Malaysia. SMEs also play a very crucial role in supply chain management (SCM)as they may serve the roles of suppliers, producers, distributors and customers. However, adoption of SCM inMalaysian SMEs has not been broadly explored. Therefore, the authors propose a conceptual model byexamining the moderating effects of contextual factors (firm size, firm age and supply chain length) on therelationship between SCM practices, namely, information sharing, strategic supplier partnership, customerrelationship, material flow management, corporate culture and SCM performance in a single study. The studyhas important managerial implications as the findings will enable management of SMEs to understandprogressive and highly varied SCM practices and contextual factors that contribute to the SCM performance andits effective implementation.

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