The determinants of supply chain performance in Malaysia’s Commercial Banks

The purpose of this study is to investigate the determinants of supply chain performance in Malaysia’s commercial banks. The study was guided by the supply chain management theory, supply chain performance theory, and explained the relationship between supply chain management and supply chain performance in the banking industry. This study adopted a descriptive research methodology on 26 Commercial Banks that are authorised to operate in Malaysia by BNM (Bank Negara Malaysia). Data was collected using questionnaires presented to respondents who were employees of the middle management of the commercial banks which are consist of assistant managers, unit managers, and team managers. Data was analysed using SPSS version 23.0 in measuring the regression model. The mean and standard deviation were used to measure the central tendency and dispersion. The result of this study concluded that there is a positive strong relationship between performance and the independent variables, such as (ICT integration, knowledge and information sharing, trust, culture, and joint decision-making) as shown by the Pearson’s coefficient correlation, which is indicated by the P-value at 95% level of confidence. 79.2% variation of changes in the dependent variable, such as (supply chain performance) can be explained by variations in the independent variables, which are culture, ICT integration, trust joint planning and decision-making, knowledge, and information sharing. This study identified the determinants of supply chain management and supply chain performance that contribute to economical and effective management of supply chain in the organisation, namely ICT integration, knowledge and information sharing, trust, culture and joint decision-making. Finally, this study also found the most significant determinants of supply chain performance on ICT integration, culture, and information sharing.