Performance Determinants for Convenience Store Suppliers

Authors: Zainah Abdullah, Aznur Hajar Abdullah

Abstract:

This paper examines the impact of information and communication technology (ICT) usage, internal relationship, supplier-retailer relationship, logistics services and inventory management on convenience store suppliers- performance. Data was collected from 275 convenience store managers in Malaysia using a set of questionnaire. The multiple linear regression results indicate that inventory management, supplier-retailer relationship, logistics services and internal relationship are predictors of supplier performance as perceived by convenience store managers. However, ICT usage is not a predictor of supplier performance. The study focuses only on convenience stores and petrol station convenience stores and concentrates only on managers. The results provide insights to suppliers who serve convenience stores and possibly similar retail format on factors to consider in improving their service to retailers. The results also provide insights to government in its aspiration to improve business operations of convenience store to consider ways to enhance the adoption of ICT by retailers and suppliers.

Keywords: Information and communication technology (ICT), internal relationship, inventory management, logistics services, supplier performance, supplier-retailer relationship.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1058003

References:

[1] Price Water House Coopers, "2004/2005 Global Retail & Consumer Study from Beijing to Budapest", 2005.
[2] E. Loke, "Change of image for sundry shops", April 29, 2011, (thestar.com.my).
[3] Performance Management and Delivery Unit (PEMANDU), "Economic transformation programme: A roadmap for Malaysia", 2010.
[4] "TUKAR Changing the face of sundry shops", http:// etp. pemandu. gov. my
[5] Center for Economic Vitality, "Convenience Stores Industry Snapshot", Retrieved from http://www.pacificedc.org/Library%20Docs/Convenience%20Stores%2 0Industry%20Snapshot.pdf
[6] C. Y. Yi, E.W.T. Ngai,. and K-L. Moon, "Supply chain flexibility in an uncertain environment: exploratory findings from five case studies", Supply Chain Management: An International Journal, Vol. 16 Iss: 4, pp. 271-283, 2011
[7] T. M. Simatupang and R. Sridharan,"The collaboration index: a measure for supply chain collaboration", International Journal of Physical Distribution & Logistics Management, Vol. 35 Iss: 1, pp.44 - 62, 2005.
[8] H. LeHong, " Closing the retail CRM and merchandising analytics gap", Retail Quest Answ, 1-3, 2004.
[9] D. Bowersox, D. Closs, and S. Stank, "Ten mega-trends that will revolutionize supply chain logistics", Journal of Business Logistics, Vol. 21 No. 2, pp. 1-16, 2000.
[10] T. M. Simatupang, A. C. Wright, R. Sridharan, "Applying the theory of constraints to supply chain collaboration", Supply Chain Management: An International Journal, Vol. 9 Iss: 1, pp.57 - 70, 2004.
[11] M. Hammer, "The super efficient company", Harvard Business Review, Vol. 79 No. 8, pp. 82-91, 2001.
[12] R.Frankel, T. J. Goldsby, J. M. Whipple, "Grocery Industry Collaboration in the Wake of ECR", International Journal of Logistics Management, The, Vol. 13 Iss: 1, pp.57 - 72, 2002.
[13] Mohamed Zairi, "Best practice in supply chain management: the experience of the retail sector", European Journal of Innovation Management, Vol. 1 Iss: 2, pp.59 - 66, 1998.
[14] F. Wiengarten, B. Fynes, P. Humphreys, R. C. Chavez, A. McKittrick, "Assessing the value creation process of e-business along the supply chain", Supply Chain Management: An International Journal, Vol. 16 Iss: 4, pp.207 - 219, 2011.
[15] U. Juttner and S. Maklan, "Supply chain resilience in the global financial crisis: an empirical study", Supply Chain Management: An International Journal, Vol. 16 Iss: 4, pp.246 - 259, 2011.
[16] V. Sanchez-Rodrigues, A. Potter and M. M. Naim, "The impact of logistics uncertainty on sustainable transport operations", International Journal of Physical Distribution & Logistics Management, Vol. 40 Iss: 1/2, pp.61 - 83, 2010.
[17] Zainah Abdullah, Aznur Hajar Abdullah, Rosidah Musa and Lennora Putit, "The effect of inventory management, internal and external relationships on customer service in the retail industry", Paper presented at SHUSER 2012 IEEE Symposium on Humanities, Science and Engineering 24th - 27th June, 2012, Kuala Lumpur.
[18] J. R., Stock and D. M., Lambert, "Strategic logistics management", 4th ed., McGraw-Hill Higher Education, 2001.
[19] C. S. Dabas, B.Sternquist and H. Mahi, "Organized retailing in India: upstream channel structure and management", Journal of Business & Industrial Marketing, Vol. 27 Iss: 3, pp.176 - 195, 2012
[20] M. Tracey, R. W. Fite and M. J. Sutton, "An explanatory model and measurement instrument: A guide to supply chain management research and applications", American Journal of Business, Vol. 19 Iss: 2, pp.53 - 70, 2004.
[21] M. Tracey, "The importance of logistics efficiency to customer service and firm performance", The International Journal of Logistics Management, Vol. 9 No. 2, pp. 65-81, 1998.
[22] U. Sekaran, "Research methods for business : a skill building approach", 4th ed., John Wiley & Sons Inc., 2003.
[23] J. Pallant, "SPSS survival manual: a step by step guide to data analysis using SPSS", 3rd sd., McGraw-Hill companies, 2007.
[24] S.C. Shih, S.H.Y.Hsu, and S. K. Balasubramaniam, "Knowledge sharing-a key role in the downstream supply chain", Information and Management Journal 2570, pp. 1-11, 2012.
[25] M. Tracey, J.S. Lim, and M. A. Vonderembse, "The impact of supplychain management capabilities on business performance", Supply Chain Management: An International Journal, Vol. 10 Iss: 3, pp.179 - 191, 2005.
[26] P. Y. Chan, X. Shi, and S. M. Yuen, "A framework for core competences of convenience store in a supply chain context: case study of 7-Eleven, Hong Kong", Proceedings of The Eighth International Conference of Decision Sciences Institute, 3 - 6 July 2005, Barcelona, Spain, 2005.
[27] K. S. Tan, S. C. Chong, B. Lin, and U. C. Eze, "Internet-based ICT adoption: evidence from Malaysian SMEs", Industrial Management & Data Systems, Vol. 109 Iss: 2, pp.224 - 244, 2009.
[28] N. Kogilah, N., A. S. Santhapparaj,and U. C. Eze, "An empirical study of website adoptionamong small and medium enterprises in Malaysia", Communications of the International Business Information Management Association (IBIMA), Vol. 2, pp 50-62, 2008.
[29] R. G. Richey Jr., M. Tokman and L. R. Skinner, "Exploring collaborative technology utilization in retailer-supplier performance", Journal of Business Research 61, pp 842-849, 2008.