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Formation of Supply Chain Collaboration and Firm Performance in the Thai Automotive and Electronics Industries

Discussion Papers

No.415

March 2013

ABSTRACT

This paper examines factors that encourage firms to go into supply chain collaborations (SCC) and relationships between SCC and supply chain performances (SCP), using a questionnaire survey on Thai automotive and electronics industries in 2012. OLS regression results show firms established supplier evaluation and audit system, system of rewards for high-performance supplier and long-term transactions with their supply chain partners under a competitive pressure are more closely cooperate with these partners on information sharing and decision synchronization.
Instrumental variables regression indicates SCC arisen from competitive pressure, supplier evaluation and audit, a system of rewards for high-performance supplier and long-term relationship causally influence SCP such as on-time delivery, responsiveness to fast procurement, flexibility to customer need, and profit.



Keywords: supply chain collaboration, supply chain performance, automotive, electronics, Thailand
JEL classification: D22, L23, L62, L63, 031, 053

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