Impediments of collaborative relationships in automotive SMEs in Malaysia

Abstract

The interests of various economies in improving and expanding the growth of small and medium enterprises (SMEs) have thrived for a few years, particularly in the automotive sector. Although there are several supporting programs, SMEs face a large number of issues in their operation and performance. One of the successful techniques towards achieving collaborative relationships and problem solving in SMEs is through supply chain integration. Many enterprises have realized the benefits of integration among supply chain members. Supply chain management has become an effective strategy for boosting competitiveness. However, there are a few reasons that put off automobile SMEs from completely performing supply chain management. This study combines literature and findings of a questionnaire analysis to urge facts and knowledge regarding the importance of supply chain management and challenges of automotive SMEs in enhancing their collaborative relationships and effectiveness through SCM. In addition, this study observed that top management, work culture and attitudes of staffs and technologies being traded are among the significant impediments to well-integrated relationship between SMEs. Finally, the study concludes that SMEs need to fully adopt SCM to meet potential advantages and control their performance.