The Importance of Training In Supply Chain Management on Personnel Differentiation and Business Performance

An effective training has been increasingly recognized as a critical factor in enhancing the skills and knowledge of employee or personnel in the organization. This paper presents the findings of an empirical research which examines the relationship between training in supply chain management (SCM), personnel differentiation and business performance of Malaysian manufacturing companies. The study measures perception of senior management regarding the incorporation of training in SCM and the level of personnel differentiation and business performance measurements in their companies. The associations between training in SCM, personnel differentiation and business performance dimensions are analyzed through methods such as Pearson’s correlations and Smart partial least squares (Smart PLS) utilizing 126 respondents’ data. Specifically, both personnel differentiation and business performance have high correlations with training in SCM, namely ‘Employee training in production skills’, ‘On the job production employee training’ and ‘Management training in supply chain effectiveness’ and ‘Employee training in supply chain technologies’. The smart PLS result also reveals that training in SCM exhibits significant impact on both personnel differentiation (directly) and business performance (indirectly mediated by personnel differentiation).

JEL Codes: M11 and M12

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