Supply chain risk management practice in Malaysian automotive industry

Abstract

Organizations are experiencing increasing supply chain risks especially due to new business trends such as globalization and offshoring. For that reason, supply chain risk management is required to manage those risks effectively. Although there is a voluminous academic research on descriptive and conceptual model of supply chain risk management, evidences which describe the implementation of supply chain risk management in industry are limited. Therefore, the purpose of this research is to explore the implementation of supply chain risk management among Malaysian small and medium automotive companies. This study also explores the enablers to supply chain risk management implementation and barriers that impede this practice. Case study method was employed at three companies which were selected through purposeful sampling. By using thematic analysis, the data was analyzed and interpreted. The research results indicated that all three companies were heading towards more formal supply chain risk management implementation. Although the companies managed the supply chain risks based on TS16949 standard and company formal procedures, the tools used in the supply chain risk management, risk communication, training and risk responsibility were yet to be completely formalized. Pressure from customers and top management emerged as the primary enablers to such implementation. This study also revealed that barriers rooted from companies internal such as the lack of knowledge impeded the case companies from advancing their supply chain risk management implementation. The findings of this study offer a description of supply chain risk management implementation for organizations.