An integrated information system to support supply chain management &amp; performance in SMEs

Dekeng S Budiarto,M Agung Prabowo,Tutut Herawan

doi:10.3926/jiem.2180

An integrated information system to support supply chain management & performance in SMEs

Dekeng S Budiarto, M Agung Prabowo + Show 1 more

Open Access

https://doi.org/10.3926/jiem.2180

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Abstract

Purpose: This study aims to examine the relation between the level of supply chain management (SCM) adoption and small & medium enterprises (SMEs) performance. SCM adoption level is expected to facilitate SMEs in improving their efficiency, thus they can obtain their competitive advantage.Design/methodology/approach: This study uses primary data in the form of questionnaires. This study only takes the SMEs engaged in commerce (retail) business in order to avoid bias in IT usage. The questionnaires are given to 88 SMEs owners whom responsible for the IT development in their companies.Findings: The result proves that SCM adoption significantly affects SMEs performance. The hypotheses testing is performed using one-way ANOVA, the result shows that there are significant differences between level initiation, diffusion, and integration with SMEs performance.Originality: This study explains the relation between supply chain management (SCM) adoption level and SMEs performance that has never been performed before.

Highlights

Technology integration can improve management quality of a company (Lari, 2002) and suppressing the inefficiencies caused by poor supplier performance, unpredictable customer demand, and uncertain business environment (Lenny-Koh, Demirbag, Bayraktar, Tatoglu & Zaim, 2007)
Most of the small & medium enterprises (SMEs) are in initiation level (50%); 27.3% of them are in diffusion level; and 22.7% of them are in integration level
This study aims to test the relationship between supply chain management (SCM) adoption level and SMEs performance

Summary

Introduction

Technology integration can improve management quality of a company (Lari, 2002) and suppressing the inefficiencies caused by poor supplier performance, unpredictable customer demand, and uncertain business environment (Lenny-Koh, Demirbag, Bayraktar, Tatoglu & Zaim, 2007). Technology integration process among company, supplier, and customer is an important part of Supply Chain Management (SCM). One of the SCM purposes is IT adoption to integrate and connecting the supply chain partner (Chou, Tan & Yen, 2004; Pieter van Donk, Bakker, Zheng, Knight & Harland, 2008; Ou, Liu, Hung & Yen, 2010; Yee-Loong-Chong, Ooi, Bao & Lin, 2014). SCM becomes very important because the quality of goods or services produced will depend on the selection of suppliers quality whom providing goods and services (Lenny-Koh et al, 2007; Yee-Loong-Chong, Ooi, Lin & YiTang, 2009). SCM adoption is very interesting because of the SMEs limitation, such as lack of skill, lack of knowledge, and lack of information technology (Rahman, Wasilan, Deros & Ghani, 2011)

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