EXPLORING SUPPLY CHAIN RISKS AMONG MALAYSIAN AUTOMOTIVE SMES 

Norlaile Salleh Hudin¹*, Abu Bakar Abdul Hamid², Thoo Ai Chin³, Nurul Fadly Habidin^4
1Dr., Universiti Pendidikan Sultan Idris, Malaysia, norlaile@fpe.upsi.edu.my
²Prof. Dr., Putra Business School, University Putra Malaysia, Malaysia, bakarhamid3030@yahoo.com
³Dr., Universiti Teknologi Malaysia, Malaysia, acthoo@utm.my
⁴Dr., Universiti Pendidikan Sultan Idris, Malaysia, fadly@fpe.upsi.edu.my
*Corresponding author

Abstract
There is scant evidence pertaining to risks faced by Malaysian automotive SMEs, although many researches have been conducted in other countries. For that reason, this paper aims to explore supply chain risks experienced by Malaysian automotive companies. By using a case study method involving three Malaysian automotive SMEs, the data analysis reveals that Malaysian automotive SMEs are mostly affected by risks external to firm but internal to supply chain, particularly the risk of late delivery and part shortages. With respect to risk internal to firm, all three case companies admitted that human-related risk is putting pressure on them. The risks of force majeure events and government regulation emerge as the most common risks external to Malaysian automotive SME’s supply chains. Although the results of this study are limited due to the small number of case companies investigated, they suggested automotive SMEs to implement multi-sourcing or develop closer relationship with sister companies and supply chain members to manage supply chain risks.

Keywords: Supply chain management, Supply risks, Automotive, SMEs