Exploring the Impact of Technological Capability on Inter-Firm Relationships in Malaysian Manufacturing Supply Chains

Abstract

This paper aims to investigate the influence of technological capability on power dynamics, trust, and inter-firm relationship performance within supply chains. Adopting a quantitative research design, the study will utilize survey questionnaires to collect data from manufacturing companies listed in the Federation of Malaysian Manufacturers directory. The proposed methodology will employ structural equation modelling to test the hypothesized relationships. Previous research has underscored the benefits of maintaining long-term inter-firm relationships, which can enhance overall business performance and facilitate opportunities for new product development. Literature suggests that technological capability can confer competitive advantages to supply chain members. However, it may also lead to power imbalances that can negatively impact inter-firm relationships. Understanding these dynamics is crucial for manufacturing companies seeking to leverage technological capabilities effectively while mitigating potential risks to inter-firm relationships. By elucidating the relationship between technological capability, power dynamics, and inter-firm relationships, this study aims to provide valuable insights for manufacturing companies. It will inform decision-making processes related to technological capability expansion, offering a nuanced understanding of the advantages and disadvantages associated with such investments. Ultimately, the findings of this study can assist manufacturing companies in optimizing their technological capabilities and navigating power dynamics within supply chains to foster stronger and more sustainable inter-firm relationships, thereby enhancing overall business performance.