Antecedents of SCM practices in ASEAN automotive industry

Abstract

Purpose – The purpose of this paper is to examine how corporate entrepreneurship, social capital and resources contribute to the implementation of supply chain management (SCM) practices in Association for Southeast Asian Nations (ASEAN) automotive industry. Design/methodology/approach – A conceptual framework of antecedents of SCM practices and several research hypotheses were proposed. Hypotheses were tested with data from original equipment manufacturers suppliers in the ASEAN automotive manufacturing industry. Confirmatory factor analysis and multiple linear regressions were used to test the hypotheses. Findings – The analysis of survey data suggests that corporate entrepreneurship theory and social capital theory play a key role in motivating and preceding SCM practices. However, traditional resource-based explanations of SCM decisions by western manufacturing firms do not always apply to ASEAN automotive suppliers. Research limitations/implications – This paper may have excluded some crucial constructs that affect SCM practices. This study also suffers from the common limitations of empirical research, including the reliance on a single respondent. Prior studies suggest that firms with better resources are likely to create more effective SCM operations. This study contributes to the literature by adding behavioral explanations to the research stream. That is, drawing on corporate entrepreneurship and social capital theories, the authors’ link firm behavioral factors to their resources and thus help explains SCM practices. Practical implications – This study provides some notable managerial implications. The study shows that to implement successful SCM practices, emerging ASEAN automotive suppliers should exploit both the internal and external antecedents of SCM. Internal antecedent in the form of corporate entrepreneurship that measures a firm's innovativeness and proactiveness, and external antecedent in the form of social capital that measures a firm's relationships with its supply chain members are important factors that affect SCM practices. Also, these factors are important in counteracting the adverse forces of the environmental uncertainty to improve performance. Originality/value – These findings extend prior research by establishing the importance of the relationships between SCM practices and its antecedents. Also, this is one of the few studies that specifically examined the ASEAN automotive industry.