NATIONAL AVIATION COLLEGE

POST GRADUATE PROGRAM

DEPARTMENT OF LOGISTIC AND SUPPLY CHAIN MANAGEMENT
Article Reviewer:-

YOMI ABEJE MAMO

Id No- GSRL 0048/14

This paper Submitted for Partial Fulfilment of Master of

Logistic and Supply chain Management

Course Title:-Supply chain Management Performance

Submitted to:-

Instructor; Dr Nurizaman

August 27, 2022

ADDIS ABABA, ETHIOPIA

 Reviewed article

Drivers of Supply Chain Transparency and its effects on Performance Measures in

the Automotive Industry: Case of a Developing Country
Author:- Waqar Ahmed1 | Mohammad Omar2
IQRA University, Karachi-75300, Pakistan

Department of Management Sciences,

Publisher:-

International Journal of Services and Operations Management

Place of Publication: -

Pakistan

Date of Publication:-

June 2019

Number of pages: -

47

Page numbers

1-47

Available at: https://www.researchgate.net/publication/325934215

The objective of this paper is to investigate the factors which are important to augment supply
chain transparency. The study further examined the impact of supply chain transparency on the
various supply chain performance indicators.

The complete supply chain of an automobile contains hundreds and thousands of diverse
connected organizations, and further each of them can engage with many thousands of
miscellaneous products. Supply chain really includes a very complex configuration of flow of
good and information between the connected partners which makes coordination of information
increasingly complicated (Waters, D., 2011). The objective of the study is to envisage the factors
which contribute towards supply chain transparency and the effect of supply chain transparency
various performance measures. This would help in identifying insightful operational aspects
which indicate the presence of asymmetric information effecting performance.

The key objective of this research set by the Authors was to examine the hypotheses of proposed
model that bit to check the impact of disintermediation (DI), formulization (FRM), supply chain
coordination (SCC), supplier integration (SI) and trust (TR) on supply chain transparency (SCT).
Moreover, to find the impact of SCT on operational performance (OP), relational performance
(RP), supplier performance (SP) and technical performance (TP).

Supply chain professionals are selected related to automotive manufacturing were considered as
total population using convenience sampling techniques from the total population. The total
sample size were 440. survey questionnaire were distributed out of them 231 were returned
leading to the response rate of 52.5%. From the collected sample, 13 questionnaires were
rejected because of incomplete responses thus leading to a final sample of 218 which includes
supply chain officials associated with automotive industry.

The raw form of the data was screened and pilot tested using SPSS followed by Partial Least
Square regression and bootstrapping using Smart PLS 3.2.4 to assess model fit, validity and
variable relationships. Three criteria were put forward to test the validity and reliability of outer
model that includes content validity followed by convergent validity and discriminate validity.

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This research examines the indicators which contributes to enhance supply chain transparency
(SCT) and at the same time it has tested the impact of SCT on the various supply chain
performance (SCP) factors narrowed on automotive sector. Transparency is the key supply chain
aspect as it comprises of the levels of information flow among all supply chain partners involved
in an industrial operation (Bastian and Zentes. 2013).

In this study, various determinants like Disintermediation, Formalization, Supply Chain

Communication, System Integration and Trust were extracted as the relevant factors from
different past researches which have evident positive impact in making transactions and
information flow more reliable and clear. These factors were then built in the model in order to
understand the phenomenon better. Results show that all the determinants are significantly
impacting the supply chain transparency with p<0.001. The greatest contributor for transparency
is found to be formalization having a beta coefficient of 0.307 followed by Supply chain
communication as the second best contributor with a beta coefficient of 0.286. Trust and
Disintermediation have shown similar statistical estimates with coefficients of 0.257 and 0.244
respectively indicating that trust has slightly greater importance than disintermediation as a
transparency estimator. System integration being a significant (p < 0.001) estimator for
transparency is the weakest among all five with a beta coefficient of 0.179.

Results of this research explain that supply chain transparency on performance measures are all
significant and Operational and relationship performances are being affected the most with
significant (p < 0.001) and estimates of 0.568 and 0.550 respectively. Supplier and technical
performances (additional constructs in this study) have been significantly estimated (p < 0.001)
by supply chain transparency levels with beta coefficients of 0.434 and 0.477 respectively.

Statistical output shows; all of the constructs analyzed in the study in order to identify their
contribution towards supply chain transparency have shown positive effects on transparency
with formalization having the greatest. This is suggested to supply chain policy makers to
emphasis more on Formalization which involves standardization or harmonization or
consistency in terms of buyer-supplier operational information, material and monetary flows to
achieve better synchronization and transparency. This will also help in examining supplier

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operations performance through buyer-supplier continuous monitoring and periodic audits
which results in suggesting distributive improvement programs or partner evaluation.

Thus the finding suggests supply chain leaders in a specific supply chains to formulate effective
strategies adaptable and acceptable to all supply chain partners and make standardized policies
and KPIs. This will help to prevail visibility and transparency among the members of supply
chain. Internationally expanding multi nationals setting up joint ventures in foreign territory
operating in Pakistan have extensively implemented their standardized practices (Khan and
Nicholson. 2015), therefore it can be stated that formalization is the greatest contributor towards
supply chain transparency. Communication practices are another critical aspect in improving
transparency. Trust and Integration among supply chain members are another strong indicator for
supply chain transparency. Third party integration was removed from the analysis due to
statistical limitations. All the performance measures are affected by transparency included in the
analysis, with positive effects represented by the respective coefficients. Supply chain
transparency has the greatest effect on Operational performance and relationship performance

The Authors were tried to address concerned issue According to the Objective set. The
Fascinating concept which is addressed in the research hypothesis Is very impressive and well
done. The Authors were Professional enough and have many Article published online. And most
of the Article were cited by Researcher.

However the article lacks standardization in stating the article content for example under the
introductory part the article miss objective which is very important was not presented in the
article. Under the methodology part the population of the study were not clear enough, even how
many professional and manufacturing industry were not clearly stated. Finally other The results
of this research can be contextualized even further by broadening the scope of industrial sectors
analyzed or targeting a larger geographic setting. Other dimensions like supplier evaluation,
partnership strategy, Influencers, supply chain status, External pressures, collaborative processes
etc. and performance measures such as financial performance, supply chain performance,
customer responsiveness and also risk and uncertainty measures were not included in this study .