Prioritisation of barriers for supply chain management implementation in the Malaysian automotive industry

Anis, Azilah; Islam, Rafikul; Hafit, Nor Intan Adha

doi:10.1590/0103-6513.20210073

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Research Article • Prod. 32 • 2022 • https://doi.org/10.1590/0103-6513.20210073 copy

Prioritisation of barriers for supply chain management implementation in the Malaysian automotive industry

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Paper aims

Several Barriers impede the robust effectiveness of the supply-chain management implementation for the Malaysian automotive industry. The purpose of the present work is to identify these Barriers and prioritize them.

Originality

Originality of the present work lies in identifying the Barriers, putting them into categories and subsequently prioritize them by applying a scientific method such as Analytic Hierarchy Process (AHP).Research

Research method

This study has identified five main categories of Barriers through literature reviews. Fourteen practitioners who are involved with the automotive industry helped prioritise those Barriers by applying the AHP.Main

Main findings

Five main categories of Barriers are found to be technological, organisational, individual, strategic, and cultural barriers. Organisational barrier is the most critical barrier followed by technological and strategic barriers.

Implications for theory and practice

This research provides important feedback to the automotive company managers to take appropriate measures to minimise negative impacts of the barriers identified.

Keywords
Supply chain management; Barriers; Automotive industry; Analytic hierarchy process

No.	Category	Supply Chain Management Barriers
1	Strategic barrier (C1)	Unclear organisational objective (C11)
		Lack of top management commitment and support (C12)
		Low customer satisfaction index (C13)
		Lack of awareness about SCM (C14)
		Short-term decision-making perspectives (C15)
		Political instability (C16)
		Lack of resources and capability (C17)
2.	Cultural barrier (C2)	Unwillingness to implement supply chain practices (C21)
		Unwillingness to share information among supply chain partners (C22)
		Mistrust among employees and supply chain partners (C23)
3.	Technological barrier (C3)	Lack of information technology (C31)
		Poor ICT structure (C32)
4.	Individual barrier (C4)	Lack of education of employee and suppliers’ employee (C41)
		Resistance to change (C42)
		Lack of motivation and employee involvement (C43)
		Unawareness among society about social practices (C44)
		Lack of awareness about environment and other sustainability issues (C45)
		Lack of necessary tools, management skills and knowledge (C46)
5.	Organisational barrier (C5)	Lack of financial gain (C51)
		Lack of framework (C52)
		Lack of measurement system (C53)
		Lack of proper organisational structure to create and share knowledge (C54)
		Lack of inter-organisational cooperation and coordination (C55)
		Lack of infrastructure (C56)

No.	Supply Chain Management Barriers
1.	Lack of top management commitment and support
2.	Unclear organisational objective
3.	Resistance to change
4.	Lack of motivation and employee empowerment
5.	Poor corporate culture
6.	Mistrust among employee and Supply Chain (SC) partners
7.	Lack of education and training to employee and supplier
8.	Poor Information and Communication Technology (ICT) infrastructure
9.	Lack of financial resources
10.	Unwillingness to implement SC practices
11.	Lack of integration among SC partners
12.	Lack of collaboration among SC partners
13.	Unwillingness to share information among SC partners
14.	Lack of responsiveness
15.	Lack of customer satisfaction index

Demographic Profile	Frequency	Percentage
Gender
• Male	11	79.00
• Female	3	21.00
Race
• Malay	9	64.00
• Chinese	3	22.00
• Indian	2	14.00
• Others	-	-
Age Group
• 21 – 30 years	-	-
• 31 – 40 years	-	-
• 41 – 50 years	3	21.00
• 51 year and above	11	79.00
Educational level
• Certificate/Diploma	-	-
• Bachelors	10	71.00
• Master’s	4	29.00
• PhD	-
Type of employment
• Public sector	-	-
• Private sector	14	100.00
• Others	-	-
Working experience
• 1 – 5 years	-	-
• 6 – 10 years	-	-
• 10 – 15 years	2	14.00
• 15 years and above	12	86.00
Position in the organisation
• Executive	-	-
• Assistant Manager	3	21.40
• Manager	5	35.80
• Senior Manager	6	42.80

	C1	C2	C3	C4	C5
C1	1	4.6089	1.1421	1.0240	0.3109
C2		1	0.5583	0.3370	0.3544
C3			1	3.5410	0.7036
C4				1	0.4019
C5					1

	C11	C12	C13	C14	C15	C16	C17
C11	1	1.0899	1.7172	1.3034	0.8726	1.1867	1.1778
C12		1	1.5163	0.6127	0.8521	1.6635	1.1874
C13			1	04672	0.4921	1.0771	0.4811
C14				1	1.6816	1.0633	0.9284
C15					1	1.4602	0.3464
C16						1	0.5148
C17							1

	C21	C22	C23
C21	1	0.8120	0.9107
C22		1	1.4729
C23			1

	C31	C32
C31	1	2.4064
C32		1

	C41	C42	C43	C44	C45	C46
C41	1	1.6506	0.7579	0.6424	05031	0.3059
C42		1	0.4165	1.1240	0.8418	0.3464
C43			1	4.47716	3.2624	0.4026
C44				1	0.3383	0.7553
C45					1	0.9370
C46						1

	C51	C52	C53	C54	C55	C56
C51	1	5.0137	4.0229	3.3584	1.9520	1.6377
C52		1	0.6416	0.7373	0.2162	0.3531
C53			1	0.3757	0.2867	0.3795
C54				1	2.2906	1.5943
C55					1	2.9451
C56						1

Barrier category	Priority	Rank
• Strategic Barrier (C1)	0.1973	3
• Cultural Barrier (C2)	0.0774	5
• Technological Barrier (C3)	0.2366	2
• Individual Barrier (C4)	0.1409	4
• Organisational Barrier (C5)	0.3477	1

Barrier	Local priority	Global priority	Rank
STRATEGIC BARRIER (C1)	0.1973	-
• Unclear organisation objective (C11)	0.1605	0.0317	11
• Lack of top management commitment and support (C12)	0.1448	0.0286	13
• Low customer satisfaction index (C13)	0.0869	0.0171	21
• Lack of awareness about SCM (C14)	0.1708	0.0337	10
• Short-term decision-making perspectives (C15)	0.1368	0.0270	14
• Political instability (C16)	0.1051	0.0207	20
• Lack of resource and capability (C17)	0.1950	0.0385	8
CR = 0.03
CULTURAL BARRIER (C2)	0.0775
• Unwillingness to implement supply chain practice (C21)	0.2981	0.0231	17
• Unwillingness to share information among supply chain partners (C22)	0.4024	0.0312	12
• Mistrust among employees and supply chain partners (C23)	0.2995	0.0232	16
CR = 0.01
TECHNOLOGICAL BARRIER (C3)	0.2366
• Lack of information technology (C31)	0.7067	0.1672	1
• Poor ICT structure (C32)	0.2933	0.0694	4
CR = 0.00
INDIVIDUAL BARRIER (C4)	0.1409
• Lack of education to employee and supplier employee (C41)	0.1033	0.0145	22
• Resistance to change (C42)	0.0924	0.0130	24
• Lack of motivation and employee involvement (C43)	0.2595	0.0366	9
• Unawareness among society about social practices (C44)	0.1006	0.0142	23
• Lack of awareness about environment and other sustainability issues (C45)	0.1684	0.0237	14
• Lack of necessary tools, management skills and knowledge (C46)	0.2757	0.0388	7
CR = 0.10
ORGANISATIONAL BARRIER (C5)	0.3477
• Lack of financial gain (C51)	0.3349	0.1164	2
• Lack of framework (C52)	0.0622	0.0216	19
• Lack of measurement system (C53)	0.0661	0.0229	18
• Lack of proper organisational structure to create and share knowledge (C54)	0.1908	0.0663	5
• Lack of inter-organisational cooperation and coordination (C55)	0.2107	0.0732	3
• Lack of infrastructure (C56)	0.1352	0.0470	6
CR = 0.08

No.	Barrier	Barrier category	Global priority	Rank
1	Lack of information technology	Technological	0.1672	1
2	Lack of financial gain	Organisational	0.1164	2
3	Lack of inter-organisational cooperation and coordination	Organisational	0.0732	3
4	Poor ICT structure	Technological	0.0694	4
5	Lack of proper organisational structure to create and share knowledge	Organisational	0.0663	5
6	Lack of infrastructure	Organisational	0.047	6
7	Lack of necessary tools, management skills and knowledge	Individual	0.0388	7
8	Lack of resource and capability	Strategic	0.0385	8
9	Lack of motivation and employee involvement	Individual	0.0366	9
10	Lack of awareness about SCM	Strategic	0.0337	10
11	Unclear organisation objective	Strategic	0.0317	11
12	Unwillingness to share information among supply chain partners	Cultural	0.0312	12
13	Lack of top management commitment and support	Strategic	0.0286	13
14	Short-term decision-making perspectives (C15)	Strategic	0.027	14
15	Lack of awareness about environment and other sustainability issues	Individual	0.0237	15
16	Mistrust among employees and supply chain partners	Cultural	0.0232	16
17	Unwillingness to implement supply chain practice	Cultural	0.0231	17
18	Lack of measurement system	Organisational	0.0229	18
19	Lack of framework	Organisational	0.0216	19
20	Political instability	Strategic	0.0207	20
21	Low customer satisfaction index	Strategic	0.0171	21
22	Lack of education to employee and supplier employee	Individual	0.0145	22
23	Unawareness among society about social practices	Individual	0.0142	23
24	Resistance to change (C42)	Individual	0.013	24

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