Relationships with supply chain partners affecting internal operation of high-tech manufacturers in Taiwan

https://doi.org/10.1016/j.hitech.2009.02.001Get rights and content

Abstract

The increasing number of interactions between Taiwan and the Mainland may bring in both opportunities and competitions among the companies in the region. Companies are forced to continuously change and develop to advance and to sustain in the competitive environment. It also holds true for the companies in the even more competitive high-tech industries. It is therefore of a value to study what challenges the high-tech firms are facing, how these challenges impact on their performance and how these firms are dealing with issues. Among the multiple challenges, supply chain operation has been a critical issue concerning the high-tech manufacturers.

The purpose of this study is to investigate the relationships between the various supply chain operation determinants (relationships with business partners, internal operation) and the impacts of relationships with supply chain partners on the internal operation and the collective efficacy relating to the scheduling issues in high-tech manufacturing firms in Taiwan. A research framework linking internal operation and relationships with supply chain partners (supplier and customer) and individuals (perceived collective efficacy) is applied.

Introduction

By estimate in early 2008, Taiwanese companies have invested more than $150 bn in China, making the Taiwan one of the largest outside investors in China Mainland. Roughly 70,000 Taiwanese-owned companies are registered in China, among them some of China's largest exporters and corporate taxpayers. Most of these companies are the high-tech products manufacturers. Since the meeting between Taiwan and China government representatives began in early June 2008 to iron out an agreement to start launching non-stop charter flights from July 2008, it is expected to bring a long overdue normalization to an economic relationship that has become so close on other fronts.

While the increasing number of interactions between the Straits may bring in opportunities, it may also urge the competition among the companies. Facing with the multiple changes in the external environment, and challenges in the market, high-tech firms are forced to continuously change and develop to advance and to sustain. It is therefore of a value to study what challenges the high-tech firms are facing, how these challenges impact on their performance and how these firms are dealing with issues. Among the multiple challenges, scheduling nervousness has been a critical issue concerning the high-tech.

Organizational resources can be broken down into categories if relational and informational (Hunt and Morgan, 1995, Richey et al., 2008). While informational resources refer to the collective knowledge of the organization, relational resources consists of the linkages between functions within the firm and the relationships with external stakeholders such as suppliers and customers. The purpose of this study is to investigate the relationships between the various schedule nervousness determinants (relationships with business partners, internal operation) and to study the impacts of schedule nervousness on the individuals dealing with scheduling issues in the supply chain (i.e. collective efficacy), among the high-tech manufacturing firms in Taiwan. A research framework linking internal operation and relationships with supply chain partners (supplier and customer) and individuals (perceived collective efficacy) is applied.

Section snippets

High tech manufacturers in Taiwan

Taiwan's industries have managed to adapt to changing trends over the past five decades, but now that China has quickened its pace of development, the nation must pull its resources together to stay ahead (Taiwan Review, 2004).

The high-end electronic market has been growing in recent years. For instance, in 2006, the consumer electronics market has grown by 15.3%, reaching $54 billion in the Asia Pacific region and by 5%, reaching $3.2 billion in Taiwan alone. The Asia Pacific region comprises

The study

In this study, the possibility of correlation between internal operation and relationships with supply chain partners is proposed. We incorporate the collective efficacy of practising staff into the model. Collective efficacy here refers to the confidence of the team in performing scheduling-related tasks.

Research methodology

This study basically employs quantitative method. Measures of the constructs were obtained via a questionnaire administered to managers and professional staff of Taiwan high-tech manufacturing firms. Post-survey interviews are carried out to verify the information captured.

Internal operation and relationship with supply chain partners

The results obtained from the study are worth noting. The score of internal operation (μ = 3.83) is of comparably high value. According to Table 3, ‘internal operation’ is found to have significant correlations with all of the measures (i.e. ‘efficacy’ and ‘relationship with supply chain partners’). The results support both H1a, H1b, H2 that ‘internal operation’ is correlated with the ‘relationship with supplier/customer’ and ‘collective efficacy'.

However, the relationship with the customer (μ = 

Conclusions

This study provides a means to examine various factors contributing to scheduling operation. There was a tendency for the subjects to choose some of the factors as having a higher level of agreement such as internal operation and collective efficacy towards the job. This may imply that the working teams in these high-tech firms are at a high level of efficacy and self-confidence.

Meanwhile, the study fortifies the significant correlations between internal operation and relationship with supply

Acknowledgement

We are most thankful to the Graduate Institute of Industrial Engineering, National Taiwan University. This research is principally supported by the Graduate Institute of Industrial Engineering, National Taiwan University, for which the authors are most grateful.

Kris M.Y. Law received a PhD in the discipline of organizational learning and development. She did her post-doctoral research at the Graduate Institute of Industrial Engineering, National Taiwan University. She is a researcher in the field of organizational learning and development, sustainability development and engineering education. Dr. Law's research interests include action and cooperative learning, learning motivation in organizations, and team performance management. She has extensive

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