THE ROLE AND IMPORTANCE OF INFORMATION SHARING BETWEEN COLLABORATIVE PARTNERS IN SUPPLY CHAIN MANAGEMENT

This study seeks to obtain a better understanding of the extent to which information sharing between supply chain collaborative partners within the Malaysia manufacturing companies enhances the level of performances in the industry. Thus this paper, presents the findings from an empirical study examining the relationship between information sharing amongst supply chain collaborative partners, product quality performance and business performance in Malaysian manufacturing industry. Few have attempted to investigate the relationship between information sharing amongst supply chain partners and performance. It is said that information sharing between collaborative supply chain partners has the potential to not only enhance production efficiency and effectiveness but also improves bottom-line results. However, the linkage between information sharing amongst supply chain collaborative partners to performance in the manufacturing industry in Malaysia has not been fully addressed in empirical studies. To address this issue, this paper investigates the impact of information sharing between supply chain partners on performance in the Malaysian manufacturing industry using Pearson's correlation, cluster analysis, Friedman's rank test and structural equation modelling. The result of the study reveals that information sharing between collaborative supply chain partners in particular appears to be of primary importance and exhibit significant impact on product quality performance and business performance. The findings of the study provide a striking demonstration of the importance of implementing effective information sharing between supply chain partners for Malaysian manufacturing industry in enhancing its performance.