Assessing the Moderation Role of ICT in the Relationship Between Supply Chain Integration and SME Performance

Abstract

This paper investigates the direct effects of Supply Chain Integration (SCI) and Information and Communication Technology (ICT) on firm performance, as well as the moderator effect of ICT. In the Abossey-Okai business enclave, the cross-sectional method was used to distribute questionnaires to owners of small and medium enterprises (SMEs) to evaluate the various dimensions of the study. The results indicate that all SCI dimensions (customer, internal, and supplier) had a positive and significant effect on firm performance. Also, ICT had a positive moderating influence on the relationship between SCI dimensions and firm performance. ICT had a significant impact on firm performance. Practically, this research will assist owners and managers of SMEs in coordinating with various departments and implementing internal practices that will build up cooperation by sharing vital information and instituting ways of decreasing cost. With these structures in place, it will help focal firms cooperate and coordinate well with external players diligently and access vital information to improve overall performance. Examining the individual dimensional effect of SCI on SMEs performance and extending the framework by individually moderating the relationship with ICT tools, this research adds to SCI’s and ICT’s available literature.