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Adam Mohd Saifudin
Universiti Utara Malaysia
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Keywords: supply chain management practice, supply chain performance, logistics integration,
Telecommunication industry
1. Introduction
Department of Statistics Malaysia reported that the percentage share of economic activities main
sector are service sector(54.6%), followed by manufacturing (24.9%), mining and quarrying (8.4%),
agriculture (7.3%) and construction (3.5%) (Department of Statistics Malaysia, 2012).
Telecommunication industry is under service sector. Thus it showed that the Telecommunication
industry contribute a lot in the Malaysia economic activity. Besides that, Industry Performance Report
by Malaysia Communication and Multimedia Commission (MCMC) highlighted that communication
industry in a steady growth 7.2% and this growth rate is in line with government nation status
2020(Report, 2012).
This study focuses on Telecommunication companies in Malaysia since Telecommunication
industry contributes a high percentage of shares of economic activities. Therefore, in order to maintain
the companies remain competitive, supply chain needs to manage accordingly.
The Telecommunication industry consists of the few businesses along with the supply chain.
Figure 1 showed the high level supply chain structure in the Telecommunication industry.
1.1 Objective
The purpose of this paper is to propose the structural relationship between the supply chain
management practice and supply chain performance and whether this relationship is mediated by the
logistics integration in the Telecommunication industry. This paper will discuss the literature review,
the proposed research framework, methodology, contribution, conclusion and suggestion for future
research.
2. Literature Review
Supply chain management practice define as a set of activities undertaken by organization to
promote effective management of its supply chain (Li, Ragu-Nathan, Ragu-Nathan, & Subba Rao,
2006). From past literature, there are a lot of the supply chain management practice dimension discuss
by the researcher. Table 1 summarizes the theoretical studies of dimension of supply chain
management practice from the past research. In this study, four dimensional of supply chain
management practice which are a strategic supplier partnership, customer relationship and information
sharing will be used as a independent variable. Logistics integration will be used as a mediating
variable and supply chain performance as a dependent variable.
Table 1: Dimension of Supply Chain Management Practice
Source
Mediator/Moderator
Industry/Country
None
Different industries
(Koh,
Demirbag,
Bayraktar,
Tatoglu, &
Zaim, 2007)
None
(Chow et al.,
2008)
None
US and Taiwan
manufacturing comparison
(Omain,
Bakar,
Hamid,
Rahman, &
Rahim,
2010)
None
Agriculture in Malaysia
(Cook,
Heiser, &
Sengupta,
2011)
(Sundram,
Ibrahim, &
Govindaraju,
2011)
None
Electronics Industry in
Malaysia
(Li et al.,
2006)
(Tan, 2012)
Allience integrated
network as mediator
(Asmida,
Sah,
Habidin,
Latip, &
Salleh,
2014)
None
Automotive Industry in
Malaysia
4 Methodology
This research is an empirical study which will employ the research by using the quantitative
method. The method of data collection is by distributing the questionnaire to the managerial and
executive level of worker from Telco companies. The proposed framework expects to be tested using
Statistical Package for Social Sciences (SPSS) 21th version for testing the measurement model.
5 Contribution
This study will investigate empirically on the mediating effect of logistics integration on the
relationship of supply chain management practice and supply chain performance in the
Telecommunication industry. Academically, the past literature review has been studied on different
country and different industry of supply chain management practice(Hong & Zailani, 2011; Koh et al.,
2007; Omain et al., 2010; Sundram et al., 2011) but did not cover the mediating effect that will affect
the relationship(Sundram et al., 2011).Thus, an alternative framework sufficient to be added to
measure the mediating effect in the supply chain management practice.
7 References
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