Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance

Increasing attention to environmental issues has put tremendous pressure on manufacturing organisations to select and develop suppliers based on social and environmental elements, aside from merely based on standard operational practices. Manufacturing organisations invest resources in their supplie...

Full description

Saved in:
Bibliographic Details
Main Author: Velayutham, Murugappan
Format: Thesis
Language:English
Published: 2022
Subjects:
Online Access:http://eprints.utm.my/108356/1/MurugappanVelayuthamPAHIBS2022.pdf.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-utm-ep.108356
record_format uketd_dc
spelling my-utm-ep.1083562024-11-01T03:35:31Z Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance 2022 Velayutham, Murugappan TS Manufactures Increasing attention to environmental issues has put tremendous pressure on manufacturing organisations to select and develop suppliers based on social and environmental elements, aside from merely based on standard operational practices. Manufacturing organisations invest resources in their suppliers to increase their abilities in order to remain competitive in today’s markets. However, the intellectual capital of manufacturing organisations’ ability to drive supplier capabilities tends to be challenged when it depends on the suppliers’ willingness and ability to adapt to rapid and unpredictable changes in the business environment. Therefore, this study investigates the relationships between supplier selection criteria, supplier development and sustainability performance. Intellectual capital as a moderator is examined on the relationship between supplier development and sustainability performance. In addition, the mediating effect of supplier development was investigated on the relationship between supplier selection and sustainability performance. The conceptual framework was developed in this study based on the Resource-based View (RBV) and Natural Resource-based View (NRBV) theories. Questionnaires were distributed as the main research instrument, and data were collected from 234 manufacturing organisations in Malaysia. The manufacturers were selected randomly from more than 2800 manufacturers in the Federation of Malaysian Manufacturers directory (51st Edition). Research hypotheses were formulated and tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). According to the findings, supplier selection criteria and supplier development directly influence the sustainability performance of manufacturing organisations. Additionally, supplier selection criteria have a direct influence on supplier development. Furthermore, the findings demonstrated that supplier development partially mediates the relationship between supplier selection criteria and sustainability performance. Also, findings indicate that intellectual capital moderates the relationship between supplier development and the sustainability performance of manufacturing organisations. Overall, the findings of this study are expected to assist manufacturing organisations in identifying collaborative suppliers for sustainability performance. Further, the manufacturing organisation can use the conceptual framework offered in this study to develop new supplier selection criteria to facilitate its supplier development program. Through a formal procurement and supplier quality procedure, firms could communicate their expectations to motivate suppliers to improve performance. Lastly, intellectual capital supports manufacturing organisations in identifying, selecting, and retaining practical supplier networks in the best manner so that the firms can maintain their competitive advantages. 2022 Thesis http://eprints.utm.my/108356/ http://eprints.utm.my/108356/1/MurugappanVelayuthamPAHIBS2022.pdf.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:154508 phd doctoral Universiti Teknologi Malaysia Azman Hashim International Business School Resource-based View (RBV), Natural Resource-based View (NRBV)
institution Universiti Teknologi Malaysia
collection UTM Institutional Repository
language English
topic TS Manufactures
spellingShingle TS Manufactures
Velayutham, Murugappan
Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
description Increasing attention to environmental issues has put tremendous pressure on manufacturing organisations to select and develop suppliers based on social and environmental elements, aside from merely based on standard operational practices. Manufacturing organisations invest resources in their suppliers to increase their abilities in order to remain competitive in today’s markets. However, the intellectual capital of manufacturing organisations’ ability to drive supplier capabilities tends to be challenged when it depends on the suppliers’ willingness and ability to adapt to rapid and unpredictable changes in the business environment. Therefore, this study investigates the relationships between supplier selection criteria, supplier development and sustainability performance. Intellectual capital as a moderator is examined on the relationship between supplier development and sustainability performance. In addition, the mediating effect of supplier development was investigated on the relationship between supplier selection and sustainability performance. The conceptual framework was developed in this study based on the Resource-based View (RBV) and Natural Resource-based View (NRBV) theories. Questionnaires were distributed as the main research instrument, and data were collected from 234 manufacturing organisations in Malaysia. The manufacturers were selected randomly from more than 2800 manufacturers in the Federation of Malaysian Manufacturers directory (51st Edition). Research hypotheses were formulated and tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). According to the findings, supplier selection criteria and supplier development directly influence the sustainability performance of manufacturing organisations. Additionally, supplier selection criteria have a direct influence on supplier development. Furthermore, the findings demonstrated that supplier development partially mediates the relationship between supplier selection criteria and sustainability performance. Also, findings indicate that intellectual capital moderates the relationship between supplier development and the sustainability performance of manufacturing organisations. Overall, the findings of this study are expected to assist manufacturing organisations in identifying collaborative suppliers for sustainability performance. Further, the manufacturing organisation can use the conceptual framework offered in this study to develop new supplier selection criteria to facilitate its supplier development program. Through a formal procurement and supplier quality procedure, firms could communicate their expectations to motivate suppliers to improve performance. Lastly, intellectual capital supports manufacturing organisations in identifying, selecting, and retaining practical supplier networks in the best manner so that the firms can maintain their competitive advantages.
format Thesis
qualification_name Doctor of Philosophy (PhD.)
qualification_level Doctorate
author Velayutham, Murugappan
author_facet Velayutham, Murugappan
author_sort Velayutham, Murugappan
title Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
title_short Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
title_full Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
title_fullStr Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
title_full_unstemmed Supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
title_sort supplier selection, supplier development, intellectual capital, and manufacturing firms’ sustainability performance
granting_institution Universiti Teknologi Malaysia
granting_department Azman Hashim International Business School
publishDate 2022
url http://eprints.utm.my/108356/1/MurugappanVelayuthamPAHIBS2022.pdf.pdf
_version_ 1818646942051205120