A literature review on the effects of new sourcing strategies for labor shortages on production performance in Malaysian manufacturing firms

Megawati Sa'at*, Mohd Rizal Salleh, Fadhlur Rahim Azmi, Teruaki Ito, Mikito Yasuzawa, Muhamad Arfauz A Rahman, Mohd Saiful Rizal Abdul Hamid

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper comprehensively reviews the labor shortages faced by Malaysian manufacturing firms and analyzes the impact of various new sourcing strategies on production performance. The focus of this review centers on several emerging sourcing strategies, namely automation and robotics, training and development programs, local talent utilization, collaboration with educational institutions, and the utilization of gig workers and freelancers. The literature review critically evaluates the effects of these new strategies on production performance, taking into consideration factors such as cost-effectiveness, efficiency, flexibility, and quality control. In conclusion, this paper suggests several implications for Malaysian manufacturing firms, including the adoption of new sourcing strategies, investment in technological infrastructure and human capital, and collaboration with government agencies and other stakeholders. Additionally, the paper highlights the need for further research in this area and provides recommendations for policymakers and practitioners to effectively address the labor shortages and enhance production performance in the Malaysian manufacturing sector.
Original languageEnglish
Title of host publicationProceedings of the International Conference on Design and Concurrent Engineering & Manufacturing Systems Conference, iDECON/MS 2023
PublisherJapan Society of Mechanical Engineers
Number of pages10
Publication statusPublished - 31 Aug 2023
EventInternational Conference on Design and Concurrent Engineering & Manufacturing Systems Conference 2023 - Keio University, Tokyo, Japan
Duration: 01 Sept 202302 Sept 2023
https://www.jsme.or.jp/conference/iDECON-MS2023/Home.html

Conference

ConferenceInternational Conference on Design and Concurrent Engineering & Manufacturing Systems Conference 2023
Abbreviated titleiDECON/MS 2023
Country/TerritoryJapan
CityTokyo
Period01/09/202302/09/2023
Internet address

Keywords

  • Labor shortages
  • new sourcing strategies
  • production performance
  • Malaysian manufacturing firms

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