Technological Capability and Relationship Performance: The Roles of Power

Nor Azrin Md Latip (), Mad Ithnin Salleh, Nurul Fadly Habidin and Nurul Fadzillah Sapengin
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Nor Azrin Md Latip: Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Malaysia

International Journal of Economics and Empirical Research (IJEER), 2014, vol. 2, issue 12, 502-509

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.

Keywords: Technological capability; Power; Supply chain management (search for similar items in EconPapers)
JEL-codes: N7 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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