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Technological Capability and Relationship Performance: The Roles of Power

Author

Listed:
  • Nor Azrin Md Latip

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Malaysia)

  • Mad Ithnin Salleh
  • Nurul Fadly Habidin
  • Nurul Fadzillah Sapengin

Abstract

The purpose of this paper is to explore the impact of technological capability on power, trust and inter-firm relationships performance within the supply chain. This study proposes to utilise quantitative design as a main approach to answer the research question. The data will be collected by using survey questionnaires. The sample of this study will consist of manufacturing companies which are listed in the Federation of Malaysian Manufacturers (FMM) directory. The structural equation modelling (SEM) approach will be employed in order to test the proposed hypotheses in this study. Evidence from previous research has supported the advantages of keeping long lasting inter-firm relationships. Scholars suggest that inter-firm relationships will enable both parties to enjoy overall business performance and new product development opportunity. The literature findings confirmed the notion that technological capability can create competitive advantage for members of the supply chain. However, possessing such capability may create power imbalance which leads to deterioration of the inter-firm relationship. The manufacturing companies can benefits from this study by understanding the potential impact of technological capability on power, and how this association affect the inter-firm relationships. It may furnish useful information on the advantages and disadvantages of possessing such capability which can be the basis of making future investment decision related to the technological capability expansion.

Suggested Citation

  • Nor Azrin Md Latip & Mad Ithnin Salleh & Nurul Fadly Habidin & Nurul Fadzillah Sapengin, 2014. "Technological Capability and Relationship Performance: The Roles of Power," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(12), pages 502-509, December.
  • Handle: RePEc:ijr:journl:v:2:y:2014:i:12:p:502-509
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    References listed on IDEAS

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    1. Arend, Richard J. & Wisner, Joel D., 2005. "Small business and supply chain management: is there a fit?," Journal of Business Venturing, Elsevier, vol. 20(3), pages 403-436, May.
    2. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    3. Santoro, Michael D. & Chakrabarti, Alok K., 2002. "Firm size and technology centrality in industry-university interactions," Research Policy, Elsevier, vol. 31(7), pages 1163-1180, September.
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    Cited by:

    1. Norshima Humaidi & Melissa Shahrom & Quhratul Aini Abdullah, 2018. "The Effect of Innovation Success Factors Towards Organizational Performance in Automotive Industry," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(3), pages 129-136.

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    More about this item

    Keywords

    Technological capability; Power; Supply chain management;
    All these keywords.

    JEL classification:

    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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