Research Article
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Year 2020, , 172 - 188, 30.06.2020
https://doi.org/10.34109/ijefs.202012111

Abstract

References

  • Adams, F.G., Richey, R.G., Autry C.W., Morgan, T.R. & Gabler, C.B. (2014). Supply chain collaboration, integration, and relational technology: how complex operant resources increase performance outcomes. An International Journal of Business Logistics, 35(4), 299-317.
  • Afshan, N., Chatterjee, S. & Chhetri, P. (2018) Impact of information technology and relational aspect on supply chain collaboration leading to financial performance: A study in Indian context. Benchmarking: An International Journal, 25(7),2496-2511.
  • Cannella, S., Framinan, M., Bruccoleri, M., Barbosa-povoa, A.P. & Relvas, S. (2015). The effect of inventory record and inaccuracy in information exchange. Journal of production Research, 12(1), 120-129.
  • Cao, M. & Zhang, Q. (2011). Supply chain collaboration: impact on collaborative advantage and firm performance. Journal of Operations Management, 29(3), 163-180.
  • Chae, H.C., Koh, C.E. & Prybutok, V.R. (2014). Information technology capability and firm performance: contradictory findings and their possible causes. MIS Quarterly, 38(1):305-326.
  • Chinomona, R. (2011). Non-mediated channel powers and relationship quality: a case of SMEs in Zimbabwe channels of distribution. PhD. Thesis. [Online]. Taiwan National Central University: Taiwan. Available: http://thesis.lib.ncu.edu.tw/ETD search/getfile?URN=964401607&filename=964401607.pdf [Accessed: 14/07/2016].
  • Chinomona, R. & Pooe, D. (2013). The influence of logistics integration on information sharing and business performance: case of small medium enterprises in South Africa. Journal of Transportation and Supply Chain Management, 7(1):1-9.
  • Cooper, D.R & Schindler, P.S. (2006). Business research methods. International 1st ed. Singapore: McGraw-Hill Education.
  • Costantino, F., Gravio, G.D., Shaban, A. & Tronci, M. (2014). The impact of information sharing and inventory control coordination on supply chain performances. Journal of Computers& Industrial Engineering,768(8):290-306.
  • Creswell, J.W. & Creswell, J.D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. 5th ed.
  • Fawcett, S.E. Osterhaus, P. Magnan, G.M. Brau, J.C. & Mccarter M.W. (2007). Information sharing and supply chain performance: the role of connectivity and willingness Supply Chain Management, 12(2):358-368
  • Flick, U. (2014). An introduction to qualitative research. 5th ed. London: SAGE Publications ltd.
  • Gunasekaran, A., Lai, K.H. & Cheng, T.E. (2008). Responsive supply chain: a competitive strategy in a networked economy. Management Science Training, 52(13):549-562.
  • Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (2006). Multivariate data analysis, 6th ed. London: Prentice-Hall.
  • Halqachmi, A. (2013). A strategy to increase responsiveness, service quality and stretch resources. International Journal of Productivity and Performance Management, 62(4):220-235.
  • Hatala, J.P. & Lutta, J.G. (2009). Managing information sharing within an Organisational setting: a social network perspective. International Society for Performance Improvement, 21(4):5-33.
  • Kang, S. & Moon, T. (2015). Impact of organisational competence on supply chain performance through supply chain collaboration. Journal of Science and Technology, 8(12):1-10.
  • Kembro, J. & Selviaridis, K. (2015). Supply chain management: exploring information sharing in the extended supply chain. An International Research Journal. 20(4):455-470.
  • Kembro, J., Selviaridis, K., & Näslund, D. (2014). Theoretical perspectives on information sharing in supply chains: a systematic literature review and conceptual framework. Supply Chain Management, 19(5/6):609-625.
  • Kim, S.W. (2009). Investigation on the direct and indirect effect of supply chain integration on firm performance. International Research Journal, 7(1):335-336.
  • Lai, F., Zhao, X. & Wang, Q. (2006). The impact of information technology on the competitive advantage of logistics firms in China. Journal of Industrial Management & Data Systems, 206(9):121-134
  • Mackelprang, A.W. & Malhotra, M.K. (2015). The impact of bullwhip on supply chains: Performance pathways, control mechanisms, and managerial levers, Journal of Operations Management36 (4):5-32.
  • Maghsoudi, A. & Pazirandeh, A. (2016).Visibility resource sharing and performance in supply chain relationships: Insights from humanitarian practitioners in supply, 130(1):9-139.
  • Malhotra, N.K. (2010). Marketing research: an applied orientation. 6th edition. New Jersey: Pearson.
  • Meflinda, A., Mahyarni, M., Indrayani, H. & Wulandari, H. (2018). The effect of social capital and knowledge sharing to the small medium enterprise’s performance and sustainability strategies. International Journal of Law and Management, 60(4), 988-997,
  • Nunnally, J.C. (1978). Psychometric theory. 2nd ed. New York: McGraw-Hill.
  • Omar, M.A., Jayaraman, K. & Dahlan, N. (2016). Investigating the relational factors for inter-firm information exchange based on commitment-trust theory. Journal of Global Business and Social Entrepreneurship, 2(1):1-12.
  • Panahifar, F., Byrne, P.J., Salam, M.A. & Heavey, C. (2018). Supply chain collaboration and firm’s performance: The critical role of information sharing and trust. Journal of Enterprse Information Management, 31(3),358-379.
  • Peschken, T., Shukla, P., Lennon, J. & Rate, S. (2016). The role of information alignment and entrepreneurial traits on SME internationalization. Management Research Review, 39(2):196-214.
  • Pilerot, O. & Limberg, L. (2011). Information sharing as a means to reach collective understanding. A study of design scholars' information practices, 18(4):595-612.
  • Prajogo, D. & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135:514-522
  • Qrunfleh, S. & Tarafdar, M. (2013). Supply chain management: lean and agile supply chain strategies and supply chain responsiveness. International Research Journal, 582(6):523-577.
  • Rao, Y., Guo, K.H.G. & Chen, Y. (2015). Information systems maturity, knowledge sharing, and firm performance. International Journal of Accounting & Information Management, 23(2), 106-127.
  • Rouzies, A. (2013). Mixed Methods: A Relevant Research Design to Investigate Mergers and Acquisitions, in Cary L. Cooper, Sydney Finkelstein (ed.) Advances in Mergers and Acquisitions, 12, 193-211.
  • Salam, M.A. (2017). The mediating role of supply chain collaboration on the relationship between technology, trust and operational performance: An empirical investigation. Benchmarking: An International Journal, 24(2), 298-317.
  • Skipworth, H., Godsell, J., Wong, C.Y., Saghiri, S. & Julien, D. (2015). Supply chain alignment for improved business performance: an empirical study. Supply Chain Management: An International Journal, 20(5), 511-533.
  • Song, H., Yu, K., Ganguly, A. & Turson, R. (2016). Supply chain network, information sharing and SME credit quality: Industrial Management & Data Systems. Journal of Enterprise Information Management, 116(4), 13-123.
  • Turner, N., Aitken, J. & Bozarth, C. (2018). A framework for understanding managerial responses to supply chain complexity. International Journal of Operations & Production Management, 38(6), 1433-1466.
  • Urban, B. & Naidoo, R. (2012). Business sustainability: empirical evidence on open skills in SMEs. Journal of Small Business and Enterprise Development, 19(1):237-242.
  • Ye, F. & Wang, Z. (2013). Effects of information technology alignment and information sharing on supply chain operational performance. Computer and Industrial Engineering, 65(3):370-377.
  • Young, S., Yang, M.G., Roh, J.J., (2012). Extending the efficient and responsive supply chains framework to the green context. Benchmarking: An International Journal, 19 (4/5):463-480

THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG

Year 2020, , 172 - 188, 30.06.2020
https://doi.org/10.34109/ijefs.202012111

Abstract

Supply chain management is becoming more complex for small and medium enterprises (SMEs) and the need to improve performance seems to be significantly necessary. For SMEs to be efficient and effective towards minimising disruptions within the supply chain, ensure availability of resources and improve just-in-time delivery, information sharing coupled with supply chain collaboration and responsiveness are essential strategies to enhancing business performance. Therefore, the current study regards supply chain collaboration, responsiveness and information sharing as major factors influencing not only SMEs performance, but also allowing SMEs to better coordinate their business activities both within and outside the business environment. In this study, a quantitative research methodology was applied. Relational governance theory (RGT) provided structure to a clear understanding of information sharing among SMEs and customers, highlighting that SMEs aiming to improve their performance, should adopt the style of collaborating with the right suppliers and continuously communicating with the members of the supply chain. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) results support the empirical findings suggesting that the model fits the study. The reliability and validity of the constructs (composite reliability) and the average variance extracted sought the empirical findings that correlate the need for SMEs to employ information sharing, supply chain responsiveness and supply chain collaboration as a determinant influence on SMEs performance.

References

  • Adams, F.G., Richey, R.G., Autry C.W., Morgan, T.R. & Gabler, C.B. (2014). Supply chain collaboration, integration, and relational technology: how complex operant resources increase performance outcomes. An International Journal of Business Logistics, 35(4), 299-317.
  • Afshan, N., Chatterjee, S. & Chhetri, P. (2018) Impact of information technology and relational aspect on supply chain collaboration leading to financial performance: A study in Indian context. Benchmarking: An International Journal, 25(7),2496-2511.
  • Cannella, S., Framinan, M., Bruccoleri, M., Barbosa-povoa, A.P. & Relvas, S. (2015). The effect of inventory record and inaccuracy in information exchange. Journal of production Research, 12(1), 120-129.
  • Cao, M. & Zhang, Q. (2011). Supply chain collaboration: impact on collaborative advantage and firm performance. Journal of Operations Management, 29(3), 163-180.
  • Chae, H.C., Koh, C.E. & Prybutok, V.R. (2014). Information technology capability and firm performance: contradictory findings and their possible causes. MIS Quarterly, 38(1):305-326.
  • Chinomona, R. (2011). Non-mediated channel powers and relationship quality: a case of SMEs in Zimbabwe channels of distribution. PhD. Thesis. [Online]. Taiwan National Central University: Taiwan. Available: http://thesis.lib.ncu.edu.tw/ETD search/getfile?URN=964401607&filename=964401607.pdf [Accessed: 14/07/2016].
  • Chinomona, R. & Pooe, D. (2013). The influence of logistics integration on information sharing and business performance: case of small medium enterprises in South Africa. Journal of Transportation and Supply Chain Management, 7(1):1-9.
  • Cooper, D.R & Schindler, P.S. (2006). Business research methods. International 1st ed. Singapore: McGraw-Hill Education.
  • Costantino, F., Gravio, G.D., Shaban, A. & Tronci, M. (2014). The impact of information sharing and inventory control coordination on supply chain performances. Journal of Computers& Industrial Engineering,768(8):290-306.
  • Creswell, J.W. & Creswell, J.D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. 5th ed.
  • Fawcett, S.E. Osterhaus, P. Magnan, G.M. Brau, J.C. & Mccarter M.W. (2007). Information sharing and supply chain performance: the role of connectivity and willingness Supply Chain Management, 12(2):358-368
  • Flick, U. (2014). An introduction to qualitative research. 5th ed. London: SAGE Publications ltd.
  • Gunasekaran, A., Lai, K.H. & Cheng, T.E. (2008). Responsive supply chain: a competitive strategy in a networked economy. Management Science Training, 52(13):549-562.
  • Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (2006). Multivariate data analysis, 6th ed. London: Prentice-Hall.
  • Halqachmi, A. (2013). A strategy to increase responsiveness, service quality and stretch resources. International Journal of Productivity and Performance Management, 62(4):220-235.
  • Hatala, J.P. & Lutta, J.G. (2009). Managing information sharing within an Organisational setting: a social network perspective. International Society for Performance Improvement, 21(4):5-33.
  • Kang, S. & Moon, T. (2015). Impact of organisational competence on supply chain performance through supply chain collaboration. Journal of Science and Technology, 8(12):1-10.
  • Kembro, J. & Selviaridis, K. (2015). Supply chain management: exploring information sharing in the extended supply chain. An International Research Journal. 20(4):455-470.
  • Kembro, J., Selviaridis, K., & Näslund, D. (2014). Theoretical perspectives on information sharing in supply chains: a systematic literature review and conceptual framework. Supply Chain Management, 19(5/6):609-625.
  • Kim, S.W. (2009). Investigation on the direct and indirect effect of supply chain integration on firm performance. International Research Journal, 7(1):335-336.
  • Lai, F., Zhao, X. & Wang, Q. (2006). The impact of information technology on the competitive advantage of logistics firms in China. Journal of Industrial Management & Data Systems, 206(9):121-134
  • Mackelprang, A.W. & Malhotra, M.K. (2015). The impact of bullwhip on supply chains: Performance pathways, control mechanisms, and managerial levers, Journal of Operations Management36 (4):5-32.
  • Maghsoudi, A. & Pazirandeh, A. (2016).Visibility resource sharing and performance in supply chain relationships: Insights from humanitarian practitioners in supply, 130(1):9-139.
  • Malhotra, N.K. (2010). Marketing research: an applied orientation. 6th edition. New Jersey: Pearson.
  • Meflinda, A., Mahyarni, M., Indrayani, H. & Wulandari, H. (2018). The effect of social capital and knowledge sharing to the small medium enterprise’s performance and sustainability strategies. International Journal of Law and Management, 60(4), 988-997,
  • Nunnally, J.C. (1978). Psychometric theory. 2nd ed. New York: McGraw-Hill.
  • Omar, M.A., Jayaraman, K. & Dahlan, N. (2016). Investigating the relational factors for inter-firm information exchange based on commitment-trust theory. Journal of Global Business and Social Entrepreneurship, 2(1):1-12.
  • Panahifar, F., Byrne, P.J., Salam, M.A. & Heavey, C. (2018). Supply chain collaboration and firm’s performance: The critical role of information sharing and trust. Journal of Enterprse Information Management, 31(3),358-379.
  • Peschken, T., Shukla, P., Lennon, J. & Rate, S. (2016). The role of information alignment and entrepreneurial traits on SME internationalization. Management Research Review, 39(2):196-214.
  • Pilerot, O. & Limberg, L. (2011). Information sharing as a means to reach collective understanding. A study of design scholars' information practices, 18(4):595-612.
  • Prajogo, D. & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135:514-522
  • Qrunfleh, S. & Tarafdar, M. (2013). Supply chain management: lean and agile supply chain strategies and supply chain responsiveness. International Research Journal, 582(6):523-577.
  • Rao, Y., Guo, K.H.G. & Chen, Y. (2015). Information systems maturity, knowledge sharing, and firm performance. International Journal of Accounting & Information Management, 23(2), 106-127.
  • Rouzies, A. (2013). Mixed Methods: A Relevant Research Design to Investigate Mergers and Acquisitions, in Cary L. Cooper, Sydney Finkelstein (ed.) Advances in Mergers and Acquisitions, 12, 193-211.
  • Salam, M.A. (2017). The mediating role of supply chain collaboration on the relationship between technology, trust and operational performance: An empirical investigation. Benchmarking: An International Journal, 24(2), 298-317.
  • Skipworth, H., Godsell, J., Wong, C.Y., Saghiri, S. & Julien, D. (2015). Supply chain alignment for improved business performance: an empirical study. Supply Chain Management: An International Journal, 20(5), 511-533.
  • Song, H., Yu, K., Ganguly, A. & Turson, R. (2016). Supply chain network, information sharing and SME credit quality: Industrial Management & Data Systems. Journal of Enterprise Information Management, 116(4), 13-123.
  • Turner, N., Aitken, J. & Bozarth, C. (2018). A framework for understanding managerial responses to supply chain complexity. International Journal of Operations & Production Management, 38(6), 1433-1466.
  • Urban, B. & Naidoo, R. (2012). Business sustainability: empirical evidence on open skills in SMEs. Journal of Small Business and Enterprise Development, 19(1):237-242.
  • Ye, F. & Wang, Z. (2013). Effects of information technology alignment and information sharing on supply chain operational performance. Computer and Industrial Engineering, 65(3):370-377.
  • Young, S., Yang, M.G., Roh, J.J., (2012). Extending the efficient and responsive supply chains framework to the green context. Benchmarking: An International Journal, 19 (4/5):463-480
There are 41 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Research Article
Authors

Osayuwamen Omoruyi This is me 0000-0001-5509-679X

Mba Eucharia Akuoma This is me

Publication Date June 30, 2020
Published in Issue Year 2020

Cite

APA Omoruyi, O., & Akuoma, M. E. (2020). THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG. International Journal of Economics and Finance Studies, 12(1), 172-188. https://doi.org/10.34109/ijefs.202012111
AMA Omoruyi O, Akuoma ME. THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG. IJEFS. June 2020;12(1):172-188. doi:10.34109/ijefs.202012111
Chicago Omoruyi, Osayuwamen, and Mba Eucharia Akuoma. “THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG”. International Journal of Economics and Finance Studies 12, no. 1 (June 2020): 172-88. https://doi.org/10.34109/ijefs.202012111.
EndNote Omoruyi O, Akuoma ME (June 1, 2020) THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG. International Journal of Economics and Finance Studies 12 1 172–188.
IEEE O. Omoruyi and M. E. Akuoma, “THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG”, IJEFS, vol. 12, no. 1, pp. 172–188, 2020, doi: 10.34109/ijefs.202012111.
ISNAD Omoruyi, Osayuwamen - Akuoma, Mba Eucharia. “THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG”. International Journal of Economics and Finance Studies 12/1 (June 2020), 172-188. https://doi.org/10.34109/ijefs.202012111.
JAMA Omoruyi O, Akuoma ME. THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG. IJEFS. 2020;12:172–188.
MLA Omoruyi, Osayuwamen and Mba Eucharia Akuoma. “THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG”. International Journal of Economics and Finance Studies, vol. 12, no. 1, 2020, pp. 172-88, doi:10.34109/ijefs.202012111.
Vancouver Omoruyi O, Akuoma ME. THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF SMALL TO MEDIUM ENTERPRISES IN SOUTHERN GAUTENG. IJEFS. 2020;12(1):172-88.