The effects of supply management and supply network & supplier flexibility on supplier performance in supermarkets in Klang Valley / Siti Anis Adilah Tarmizi

Supply chain is required to be able to produce various different products and deliver to
market in an acceptable speed and cost in order to be competitive in the marketplace. As
the basis of competition expands to the supply chain and time also becomes increasingly
important, flexibility of the supply chain has become a critical issue (Duclos, Vokurka,
and Lummus, 2003). Thus, the purposes of this study are to determine the mediating
effect of supply network and supplier flexibility on the relationship between supply
management and supplier performance.
This research is based on a quantitative approach using a self-administered questionnaire
which was conducted at 79 participating supermarkets. Additionally, a causal research is
undertaken to identify the relationship between supply management and supplier
performance and the effect of supply network and supplier flexibility on this relationship.
This study focused on the supermarkets in Klang Valleys’ supply chain setting and the
data gathered were then analyzed using statistical tests such as reliability test and
multiple regression analysis.
The assumption that supply network and supplier flexibility mediates the relationship
between supply management and supplier performance was proven by mediating analysis
using Baron and Kenny approach. The findings also revealed that supply management
predicts supplier performance. On the other hand, supply management which consists of
supplier selection (p = .136), supplier development (p = .222) and strategic supplier
alliances (p = .816) did not predict supply network and supplier flexibility. Therefore, this
study perhaps can assist the management of supermarkets in Malaysia to gain awareness
about the importance of practicing good supply management to ensure that they can help
their suppliers to have more integrity and flexibility in supplying food products which
later on can increase the performance of these suppliers.