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Critical factors for an effective business value chain

Pekka Kess (Department of Industrial Engineering and Management, University of Oulu, Oulu, Finland)
Kris M.Y. Law (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong, China)
Rapee Kanchana (Department of Industrial Engineering, Rajamangala University of Technology, Thanyaburi, Thailand)
Kongkiti Phusavat (Department of Industrial Engineering, Kasetsart University, Bangkok, Thailand)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 2 February 2010

4462

Abstract

Purpose

The purpose of this paper is to identify critical factors for effective business value chains in the electrical and electronic industries. This knowledge can benefit private firms as well as their supplier management and customer fulfillment, and public agencies for relevant policy initiatives.

Design/methodology/approach

The research methodology includes the survey development and the statistical analyses, especially the use of the Pearson correlation. Altogether, a total of 129 firms participated in this study, 97 companies from Hong Kong and 32 firms from Thailand. Included in this methodology are a pre‐test of a survey and follow‐up discussions with participating executives.

Findings

An effective business value chain essentially depends on good operational systems and management, and information and communication technology (ICT) linkages with both suppliers and customers. There are a total of five critical factors for effective business value chains. For example, an effective business value chain is influenced by how well production and delivery systems are managed. In addition, how well a manufacturer can manage its operation is influenced by customers with effective information and communication infrastructures.

Practical implications

The five identified factors can be used as a checklist for planning and/or monitoring the effectiveness of a business value chain. The findings also helps develop a new initiative to be undertaken by Thailand's Department of Industrial Work when attempting to strengthen business value chains within various industrial clusters.

Originality/value

The findings underline the need to focus on data harmonization and to adapt ICT standards, such as Control Objectives for Information and related Technology COBIT and Projects in Controlled Environments PRINCE for data sharing and software development, to promote supplier audits when sustaining a business value chain.

Keywords

Citation

Kess, P., Law, K.M.Y., Kanchana, R. and Phusavat, K. (2010), "Critical factors for an effective business value chain", Industrial Management & Data Systems, Vol. 110 No. 1, pp. 63-77. https://doi.org/10.1108/02635571011008407

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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