Barriers to supply chain information integration: SMEs adrift of eLands

Abstract

The literature extols the potential benefits of supply chain integration and the crucial role of integrated eBusiness to deliver those benefits. However, adoption of eBusiness in supply chains has been slower than expected, particularly in small to medium sized enterprises (SMEs). This paper reports findings of a longitudinal study of four supply chains in different sectors over a 4-year period. Specifically it examines the barriers to adoption of eBusiness technologies and therefore to achievement of integrated information in supply chains. Differences between firms in supply chains and between supply chains are examined. The study reveals disparity between existing and planned use of eBusiness by larger downstream firms compared to upstream SMEs. The SMEs are cautious, only planning to invest in eBusiness if dominant downstream customers force them; however, they do not appreciate the full benefits to be gained from eBusiness adoption. The downstream larger businesses are forging ahead with eBusiness in ‘eIsolation’ and are not providing supply chain leadership. They are creating eLands with SMEs adrift of them.