E-supply chain operational and behavioural perspectives: an empirical study of Malaysian SMEs

Abstract

A review of the literature suggests that much of the existing e-supply chain adoption literature is not firmly grounded in theory. Where many previous studies have identified technology as the key determinant, we argue that operational and behavioural perspectives should be duly taken into consideration while adopting e-technology. Therefore, inspired by the systems engineering principles, we propose a generic framework for evaluating business performance of e-supply chain companies. A questionnaire was designed and survey data from 208 Malaysian SMEs was collected. Structural equation modelling (SEM) was employed to test the impact of Supply Chain Strategy, E-Business Adoption, and the interaction of these constructs, on overall Business Performance. With regards to the operational perspective the results suggest that E-Business Adoption relates more positively to Business Performance compared to Supply Chain Strategy construct. Also, Technology Capability scored relatively higher compared to Organisational Capability and Attitudinal Capability. Overall Supply Chain Relationship (behavioural perspective) demonstrates a relatively weak result. Our findings suggest that where Malaysian SMEs are technology orientated, however, they need to develop efficient logistics networks to cater for a geographically dispersed population. Also, they need to pay serious attention towards ‘softer’ issues, in that to bring about attitudinal changes that allow developing closer collaboration with their supply chain companies. We argue that operational and behavioural perspectives can be embedded within the systems engineering principles that provide necessary theoretical underpinning for conducting such a research. The empirical findings provide useful guidelines for SMEs that wish to embark upon an e-business adoption journey. Furthermore, the measures produced here can be used as a benchmarking exercise for the SMEs who have already adopted e-technology.