Top

Global Journal of Flexible Systems Management

Published in:

17-07-2023 | ORIGINAL RESEARCH

The Effect of Supply Chain Adaptive Strategies During the COVID-19 Pandemic on Firm Performance in Malaysia's Semiconductor Industries

Authors: Suharti Ishak, Mohd Rizaimy Shaharudin, Nor Azura Mohamed Salim, Amir Imran Zainoddin, Zichun Deng

Published in: Global Journal of Flexible Systems Management | Issue 3/2023

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The supply chain disruptions caused primarily by the COVID-19 pandemic catastrophe are expected to prolong the global chip shortage for several more years, making it a pressing concern across industries worldwide. Nonetheless, the influence of supply chain disruptions on firm performance within the semiconductor industry, especially in developing countries like Malaysia, has received limited attention in previous studies. This study aims to determine how supply chain adaptive techniques that combine robustness, agility, and resilience during the COVID-19 pandemic affected multinational firms' performance in the semiconductor industry in Malaysia. The nature of the study is quantitative, using survey methodology. The data were collected from 82 multinational corporations of semiconductor firms through an online platform. The findings show that resilience in supply chain adaptive strategies significantly impacted multinational corporations' semiconductor industries during the COVID-19 pandemic. However, the success of semiconductor firms during the COVID-19 pandemic was not greatly affected by the resilience and agility of supply chain adaptive strategies. The findings offer valuable insights into how firms implemented supply chain adaptive strategies during the challenging times of the COVID-19 pandemic. The knowledge can enable them to lessen the effect of the COVID-19 pandemic supply chain disruption and eventually enhance the firm's performance. Future studies should examine the new aspect of supply chain strategies, such as demand-driven planning, which uses technological tools for climate adaptation in times of crisis.

previous article Improving First Responders' Effectiveness in Post-Disaster Scenarios Through a Hybrid Framework for Damage Assessment and Prioritization

next article The Role of Automotive Flexibility in Supporting the Diffusion of Sustainable Mobility Initiatives: A Stakeholder Attitudes Assessment

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

Aavenir. (2022). Supply chain resilience. Aavenir.Com. Retrieved July 11, 2022, from https://aavenir.com/glossary/supply-chain-resilience/

Advisen Insurance Intelligent (2013). The Vulnerability of Global Supply Chains: The Importance of Resiliency in the Face of Systemic Risk. Retrieved from https://www.advisenltd.com/wp-content/uploads/global-supply-chain-vulnerability-aig-2013-09.pdf

Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The measurements of firm performance’s dimensions. Asian Journal of Finance & Accounting, 6(1), 24. https://doi.org/10.5296/ajfa.v6i1.4761CrossRef

Australian Government (2022, April 11). Funding to invest in capabilities to address supply chain vulnerabilities. Business.Gov.Au. Retrieved July 11, 2022, from https://business.gov.au/grants-and-programs/supply-chain-resilience-initiative-round-2#:~:text=The%20Supply%20Chain%20Resilience%20Initiative%20provides%20businesses%20up,input%20identified%20in%20the%20Sovereign%20Manufacturing%20Capability%20Plan.

Attinasi, M. G., Balatti, M., Mancini, M., & Metelli, L. (2021). Supply chain disruptions and the effects on the global economy. European Central Bank. Retrieved July 13, 2022, from https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/html/ecb.ebbox202108_01~e8ceebe51f.en.html

Bernabei, M., Colabianchi, S., & Costantino, F. (2022). Actions and strategies for coronavirus to ensure supply chain resilience: A systemic review. Sustainability, 14(20), 13243.CrossRef

Bø, E., Hovi, I. B., & Pinchasik, D. R. (2023). COVID-19 disruptions and Norwegian food and pharmaceutical supply chains: Insights into supply chain risk management, resilience, and reliability. Sustainable Futures, 5, 100102.CrossRef

Butt, A. S. (2021). Strategies to mitigate the impact of COVID-19 on supply chain disruptions: a multiple case analysis of buyers and distributors. The International Journal of Logistics Management. https://doi.org/10.1108/ijlm-11-2020-0455CrossRef

Chapman, P., Christopher, M., Jüttner, U., Peck, H., & Wilding, R. (2002). Identifying and managing supply chain vulnerability. Logistics and Transport Focus, 4(4).

Chin, W. W. (2009). How to write up and report PLS analyses. Handbook of partial least squares: Concepts, methods and applications (pp. 655–690). Springer.

Chunsheng, L., Wong, C. W. Y., Yang, C.-C., Shang, K.-C., & Lirn, T. (2020). Value of supply chain resilience: Roles of culture, flexibility, and integration. International Journal of Physical Distribution & Logistics Management, 50(1), 80–100. https://doi.org/10.1108/IJPDLM-02-2019-0041CrossRef

Civelek, M. E. (2020). The effects of trust and capability in supply chain on firm performance through supply chain agility and collaborative advantage. Journal of Business Research Turk, 12(1), 440–453. https://doi.org/10.20491/isarder.2020.854CrossRef

Cutter, S. (2014). Building disaster resilience: steps toward sustainability. Challenges in Sustainability, 1(2), 72–79. https://doi.org/10.12924/cis2014.01020072CrossRef

Derissen, S., Quaas, M. F., & Baumgartner, S. (2011). The relationship between resilience and sustainability of ecological-economic systems. Ecological Economics, 70(6), 1121–1128.CrossRef

Diaz, S. (2021, September 20). What is supply chain resiliency? IBM.Com. Retrieved July 13, 2022, from https://www.ibm.com/blogs/supply-chain/what-is-supply-chain-resiliency/

Dube, N., Li, Q., Selviaridis, K., & Jahre, M. (2022). One crisis, different paths to supply resilience: The case of ventilator procurement for the COVID-19 pandemic. Journal of Purchasing and Supply Management, 28(5), 100773.CrossRef

Dwivedi, A., Agrawal, D., Jha, A., Gastaldi, M., Paul, S. K., & D’Adamo, I. (2021). Addressing the challenges to sustainable initiatives in value chain flexibility: Implications for sustainable development goals. Global Journal of Flexible Systems Management, 22, 179–197.CrossRef

Ferrari, A. A., Bogner, K., Palacio, V., Crisostomo, D., Seeber, N., & Ebersberger, B. (2023). The COVID-19 pandemic as a window of opportunity for more sustainable and circular supply chains. Cleaner Logistics and Supply Chain, 7, 100101.CrossRef

Fioramonti, J. (2021, August 11). Covid-19’s Impact on the Semiconductor Industry. Kidder.Com. Retrieved July 12, 2021, from https://kidder.com/trend-articles/covid-19s

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.CrossRef

Foroozesh, N., Karimi, B., Mousavi, S. M., & Mojtahedi, M. (2023). A hybrid decision-making method using robust programming and interval-valued fuzzy sets for sustainable-resilient supply chain network design considering circular economy and technology levels. Journal of Industrial Information Integration, 33, 100440.CrossRef

Frieske, B., & Stieler, S. (2022). The “Semiconductor crisis” as a result of the COVID-19 pandemic and impacts on the automotive industry and its supply chains. World Electric Vehicle Journal, 13(10), 189.CrossRef

Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American Statistical Association, 70(350), 320–328.CrossRef

Genovese, A., Acquaye, A., Figueroa, A., & Koh, S. C. (2017). Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega, 66, 344–357. https://doi.org/10.1016/j.omega.2015.05.015CrossRef

Groushko, P. (2020, May 18). Top tips to build a robust supply chain. SupplyChianDigital.Com. Retrieved July 15, 2022, from https://supplychaindigital.com/digital-supply-chain/top-tips-build-robust-supply-chain

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24.CrossRef

Handscomb, C., Mahadevan, D., Naidoo, E., Srinivasan, S., Schor, L., & Sieberer, M. (2020, June 25). An operating model for the next normal: Lessons from agile organizations in the crisis. McKinsey & Company. Retrieved July 13, 2020, from https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/an-operating-model-for-the-next-normal-lessons-from-agile-organizations-in-the-crisis

Hasan, F., Bellenstedt, M. F. R., & Islam, M. R. (2023). Demand and supply disruptions during the Covid-19 crisis on firm productivity. Global Journal of Flexible Systems Management, 24(1), 87–105.CrossRef

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135.CrossRef

Hermes. (2020). Supply Chain Agility: Strategic Adaptability within SCM. Hermes Supply Chain Blog. Retrieved from from https://en.hermes-supply-chain-blog.com/supply-chain-agility-scm/#:~:text=Agility%20describes%20the%20ability%20of%20a%20system%20to,adapt%20to%20the%20volatility%20of%20the%20economic%20environment.

Ikram, M., & Sayagh, Y. (2023). The consequences of COVID-19 disruption on sustainable economy in the top 30 high-tech innovative countries. Global Journal of Flexible Systems Management, 24(2), 247–269.

Insightsoftware. (2021, January 8). 35 Best Operational KPIs and Metric Examples for 2021 Reporting. Insightsoftware.Com. Retrieved July 13, 2022, from https://insightsoftware.com/blog/35-operational-kpis-and-metric-examples/#:~:text=An%20Operations%20Key%20Performance%20Indicator%20%28KPI%29%20or%20metric,are%20effective%2C%20and%20those%20that%20inhibit%20the%20company.

Ivanov, D. (2021). Supply chain viability and the COVID-19 pandemic: A conceptual and formal generalisation of four major adaptation strategies. International Journal of Production Research, 59(12), 3535–3552.CrossRef

Jadoul, Q., Nascimento, A., Salo, O., & Willi, R. (2020, November 18). Agility in the time of Covid-19: Changing your operating model in an age of turbulence. Mckinsey & Company. Retrieved July 13, 2022, from https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/agility-in-the-time-of-covid-19-changing-your-operating-model-in-an-age-of-turbulence

Javaid, S. (2022, May 30). Top 4 Ways to Improve Supply Chain Resilience in 2022. AIMultiple.Com. Retrieved July 11, 2022, from https://research.aimultiple.com/supply-chain-resilience/

Juan, S. J., Li, E. Y., & Hung, W. H. (2021). An integrated model of supply chain resilience and its impact on supply chain performance under disruption. The International Journal of Logistics Management, 33(1), 339–364. https://doi.org/10.1108/ijlm-03-2021-0174CrossRef

Junior, C. A. R., Sanseverino, E. R., Gallo, P., Koch, D., Kotak, Y., Schweiger, H. G., & Zanin, H. (2023). Towards a business model for second-life batteries–barriers, opportunities, uncertainties, and technologies. Journal of Energy Chemistry, 78, 507–525.CrossRef

Kyung Mo Kang, G. (2022). Implications from a reshaping of the semiconductor supply chain. Eastspring.Com. Retrieved July 11, 2022, from https://www.eastspring.com/insights/thought-leadership/implications-from-a-reshaping-of-the-semiconductor-supply-chain

Khanuja, A., & Jain, R. K. (2021). The conceptual framework on integrated flexibility: an evolution to data-driven supply chain management. The TQM Journal, 35(1), 131–152. https://doi.org/10.1108/tqm-03-2020-0045CrossRef

Lebel, L., Anderies, J. M., Campbell, B., Folke, C., Hatfield-Dodds, S., Hughes, T. P., & Wilson, J. (2006). Governance and the capacity to manage resilience in regional social-ecological systems. Ecology and Society, 11(1), 19. https://doi.org/10.5751/ES-01606-110119CrossRef

Loka, R., Parimi, A. M., Srinivas, S. T. P., & Kumar, N. M. (2023). Leveraging blockchain technology for resilient and robust frequency control in a renewable-based hybrid power system with hydrogen and battery storage integration. Energy Conversion and Management, 283, 116888.CrossRef

Magableh, G. M. (2021). Supply chains and the COVID-19 pandemic: A comprehensive framework. European Management Review, 18(3), 363–382.CrossRef

Malaysia Investment Development Authority. (2022, May 30). Semiconductor supply chain needs to be more resilient, flexible, says Azmin. www.Mida.Gov.My. Retrieved July 13, 2022, from https://www.mida.gov.my/mida-news/semiconductor-supply-chain-needs-to-be-more-resilient-flexible-says-azmin/

Millar, M. (2019). Supply Chain Disruption Impacts Cost, Quality and Risk. Brink News. Retrieved January 2, 2022, from https://www.brinknews.com/supply-chain-disruption-improves-cost-quality-and-risk/

Miroudot, S. (2020). Resilience versus robustness in global value chains. VOX, CEPR Policy Portal. Retrieved December 11, 2021, from https://voxeu.org/article/resilience-versus-robustness-global-value-chains

Monostori, J. (2018). Supply chains robustness: Challenges and opportunities. Procedia CIRP, 67, 110–115. https://doi.org/10.1016/j.procir.2017.12.185CrossRef

News Wire. (2021, May 12). The global chip shortage could last until 2023. Naija247News. Retrieved July 6, 2022, from https://naija247news.com/2021/05/12/the-global-chip-shortage-could-last-until-2023/#:~:text=Glenn%20O%E2%80%99Donnell%2C%20a%20vice%20president%20research%20director%20at,and%20into%202023%2C%E2%80%9D%20he%20wrote%20in%20a%20blog.

Privitera, G. J. (2012). Introduction to hypothesis testing. In Statistics for the behavioral sciences (pp. 1–38). SAGE publications.

Ramani, V., Ghosh, D., & Sodhi, M. S. (2022). Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry. Omega, 113, 102720.CrossRef

Rose, A. (2011). Resilience and sustainability in the face of disasters. Environmental Innovation and Societal Transitions, 1(1), 96–100. https://doi.org/10.1016/j.eist.2011.04.003CrossRef

Salehi, S., Mehrjerdi, Y. Z., Sadegheih, A., & Hosseini-Nasab, H. (2022). Designing a resilient and sustainable biomass supply chain network through the optimization approach under uncertainty and the disruption. Journal of Cleaner Production, 359, 131741.CrossRef

SAP Insights. (2022). What is a resilient supply chain? SAP.Com. Retrieved from https://www.sap.com/insights/what-is-a-resilient-supply-chain.html#:~:text=A%20resilient%20supply%20chain%20is%20defined%20by%20its,can%20threaten%20multiple%20areas%20of%20the%20supply%20chain.

Sassanelli, C., & Terzi, S. (2022). The D-BEST reference model: A flexible and sustainable support for the digital transformation of small and medium enterprises. Global Journal of Flexible Systems Management, 23(3), 345–370.CrossRef

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. Wiley.

Semiconductor Industry Association. (2021). Global Semiconductor Sales Increase by 6.5% to $439 billion in 2020. Retrieved July 10, 2022, from https://www.semiconductors.org/global-semiconductor-sales-increase-6-5-to-439-billion-in-2020/#:%7E:text=Global%20Semiconductor%20Sales%20Increase%206.5%25%20to%20%24439%20billion%20in%202020,-Monday%2C%20Feb%2001&text=WASHINGTON%E2%80%94Feb.,2019%20total%20of%20%24412.3%20billion.

Shaharudin, M. R., Zailani, S., & Ismail, M. (2015). Third-party logistics strategic orientation towards the reverse logistics service offerings. International Journal of Management Practice, 8(4), 356–374.CrossRef

Shaharudin, M. R., Zailani, S., Tan, K. C., Cross, J., & Hotrawaisaya, C. (2023). Fostering closed-loop supply chain orientation by leveraging strategic green capabilities for circular economy performance: Empirical evidence from Malaysian electrical and electronics manufacturing firms. Environment, Development and Sustainability,. https://doi.org/10.1007/s10668-022-02832-3CrossRef

Sharma, et al. (2021). Accelerating retail supply chain performance against pandemic disruption: Adopting resilient strategies to mitigate the long-term effects. Journal of Enterprise Information Management, 34(6), 1844–1873. https://doi.org/10.1108/jeim-07-2020-0286CrossRef

Shiftboard (2021). Strategies to overcome labor shortage challenges in manufacturing. www.Shiftboard.Com. Retrieved July 11, 2022, from https://www.shiftboard.com/strategies-to-overcome-labor-shortage-challenges-in-manufacturing/

Simonetto, M., Sgarbossa, F., Battini, D., & Govindan, K. (2022). Closed loop supply chains 40 From risks to benefts through advanced technologies A literature review and research agenda. International Journal of Production Economics, 253, 108582.CrossRef

Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (methodological), 36(2), 111–133.

Sturm, S., et al. (2021). Empirical research on the relationships between demand- and supply-side risk management practices and their impact on business performance. Supply Chain Management, 27(6), 742–761. https://doi.org/10.1108/scm-08-2020-0403CrossRef

Sushil. (2011). Flexibility, vitality and sustainability. Global Journal of Flexible Systems Management, 12(1), 3.

Sushil. (2015). Valuation of flexibility. Global Journal of Flexible Systems Management, 16(3), 219–220. https://doi.org/10.1007/s40171-015-0100-6CrossRef

Tang, C. S. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics: Research and Applications, 9(1), 33–45.CrossRef

The edge markets (2020). Local semiconductor industry changes game plan as playing field shifts due to geopolitics, Covid-19. The Edge Markets. Retrieved from https://www.theedgemarkets.com/article/local-semiconductor-industry-changes-game-plan-playing-field-shifts-due-geopolitics-covid19#

The Star (2021). Digital technologies and infrastructure driving positive digital investment momentum. Retrieved April 18, 2023, from https://www.thestar.com.my/business/business-news/2021/03/22/digital-technologies-and-infrastructure-driving-positive-digital-investment-momentum

Todo et al. (2021). Robustness and resilience of supply chains during the Covid-19 Pandemic: Findings from a questionnaire survey on the supply chain links of firms in ASEAN and India. ERIA Discussion Paper Series. https://www.eria.org/uploads/media/discussion-papers/FY21/Robustness-and-Resilience-of-Supply-Chains-During-the-Covid-19-Pandemic.pdf

UNIDO (2020). Impact assessment of COVID-19 on malaysia’s manufacturing firms; United Nations Industrial Development Organization: Vienna, Austria. Retrieved from https://www.unido.org/sites/default/files/files/2021-03/UNIDO%20COVID19%20Assessment_Malaysia_FINAL.pdf

Vedantu. (2022). Modern organizational theories–Contingency Theory. Vedantu.Com. Retrieved July 13, 2022, from https://www.vedantu.com/commerce/modern-organizational-theories-contingency-theory

Vinney, C. (2021). Likert scale: What is it and how to use it? ThoughtCo. Retrieved from https://www.thoughtco.com/likert-scale-4685788.

Wadhwa, S., & Rao, K. S. (2004). A unified framework for manufacturing and supply chain flexibility. Global Journal of Flexible Systems Management, 5(1), 29–36.

Wetzels, M., Odekerken-Schroder, G., & van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177–195.CrossRef

Wided, R. (2023). IT capabilities, strategic flexibility and organizational resilience in SMEs post-COVID-19: A mediating and moderating role of big data analytics capabilities. Global Journal of Flexible Systems Management, 24(1), 123–142.

Wulandhari, N. B. I., Budhwar, P., Mishra, N., Akbar, S., Do, Q., & Milligan, G. (2023). Organizational resilience to supply chain risks during the COVID-19 pandemic. British Journal of Management. https://doi.org/10.1111/1467-8551.12648CrossRef

Zailani, S., Govindan, K., Iranmanesh, M., Shaharudin, M. R., & Chong, Y. S. (2015). Green innovation adoption in automotive supply chain: The Malaysian case. Journal of Cleaner Production, 108, 1115–1122.CrossRef

Title: The Effect of Supply Chain Adaptive Strategies During the COVID-19 Pandemic on Firm Performance in Malaysia's Semiconductor Industries
Authors: Suharti Ishak
Mohd Rizaimy Shaharudin
Nor Azura Mohamed Salim
Amir Imran Zainoddin
Zichun Deng
Publication date: 17-07-2023
Publisher: Springer India
Published in: Global Journal of Flexible Systems Management / Issue 3/2023
Print ISSN: 0972-2696
Electronic ISSN: 0974-0198
DOI: https://doi.org/10.1007/s40171-023-00347-y

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 3/2023

Improving First Responders' Effectiveness in Post-Disaster Scenarios Through a Hybrid Framework for Damage Assessment and Prioritization

Competitiveness Through Development of Strategic Talent Management and Agile Management Ecosystems

Bibliometric and Topic Modeling Analysis of Corporate Social Irresponsibility

Ukraine–Russia Conflict and Stock Markets Reactions in Europe

Calculating Strategic Risk in Financial Institutions

The Role of Automotive Flexibility in Supporting the Diffusion of Sustainable Mobility Initiatives: A Stakeholder Attitudes Assessment

Premium Partner