Despite the Malaysian manufacturing sector experiencing the second-highest growth rate, its performance still lags behind that of developed countries. There are various strategies to enhance performance, with collaboration emerging as a key focus. While numerous studies have proven the positive effects of supply chain collaboration, they are usually limited to specific industries or sectors, with no comprehensive research addressing the overall manufacturing sector. This study aims to empirically examine the relationship between supply chain performance and supply chain collaboration within Malaysia's manufacturing industry. A questionnaire was distributed to all members of the Federation of Malaysian Manufacturers using convenience sampling. The collected data were processed to remove missing values and outliers, followed by an assessment of validity and reliability. The data were then analyzed using Smart PLS 3. The results revealed that all collaboration practices positively affected supply chain performance, with information sharing, aligning mission and vision supplier relationships, customer relationships, and information quality significantly affecting performance. However, while postponement and risk-reward sharing had positive effects, these were not statistically significant. This research provides insights for managers about the importance of collaboration in strategic decision-making and highlights its potential to mitigate risks. The study suggests a framework applicable to other industries and demographics. Limitations include the focus on manufacturing and the exclusion of suppliers of suppliers and customers of customers, which could be addressed in future research.
