International Journal of Supply Chain Management
Vol 8, No 3 (2019): International Journal of Supply Chain Management (IJSCM)

Investigation of Supplier Selection Criteria that Leads to Buyer-Supplier Long Term Relationship for Semiconductor Industry

Yogeswaran Vijayakumar (Graduate School of Business, Universiti Sains Malaysia)
Suzari Abdul Rahim (Graduate School of Business, Universiti Sains Malaysia)
Aidi Ahmi (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia)
Nor Aida Abdul Rahman (Aviation Management Department, Universiti Kuala Lumpur, Malaysian Institute of Aviation Technology (UniKL MIAT))



Article Info

Publish Date
24 Jun 2019

Abstract

Selecting the right supplier has been the greatest challenge in supply chain management (SCM) in many industries. Large spool of suppliers in industry and diversity of purchasing scope causes a wide variety of supplier selection criteria. The right strategy in fixing the criteria for supplier selection is crucial, to ensure smooth supply chain operation. It is believed that in SCM, a good relationship with suppliers will further benefit the operations of both buyers and suppliers. This research attempts to investigate the supplier selection criteria that leads to buyer-supplier long term relationship, especially for the semiconductor industry in Penang, Malaysia. In this study, the focus is to identify the critical supplier selection criteria such as supplier quality, performance delivery, supply service, cost and estimate their influence towards buyer’s satisfaction which later on, narrate a path for a buyer-supplier long term relationship. Two hundred eighty-eight respondents with a minimum one year of working experience in handling suppliers in the semiconductor industry in Penang, Malaysia, participated in this research. Smart PLS was used to conduct hypotheses testing while confirming the validity and reliability of the data collected from the survey. The finding of this research shows that supplier quality, performance delivery, and supply service criteria are significant for the buyer-supplier long term relationship. The outcome of this research will help semiconductor companies to have a set of best criteria for supplier selection. Later, it could help them establish long term relationship with the supplier to benefit their supply chain operations, and at the same time ensuring the growth, survival and sustainability of their supplier business.

Copyrights © 2019






Journal Info

Abbrev

IJSCM

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

Description

International Journal of Supply Chain Management (IJSCM) is a peer-reviewed indexed journal, ISSN: 2050-7399 (Online), 2051-3771 (Print), that publishes original, high quality, supply chain management empirical research that will have a significant impact on SCM theory and practice. Manuscripts ...