Abstract
Purpose: With rapid changes in technology and the globalisation of markets, firms, especially small to medium enterprises (SMEs), require support to adapt to technology and make use of e-procurement functions to develop competitive advantages. Information systems such as e-procurement have become increasingly linked with other business activities such as supply chain integration to initiate the growth of SMEs. This study investigated the relationship between e-procurement, supplier integration and supply chain performance in retail SMEs in South Africa. Design/methodology/approach: A quantitative research approach was followed in which a sample of 283 owners and managers of SMEs in Gauteng Province, South Africa, were surveyed using a structured questionnaire. The study considered five e-procurement components, namely e-sourcing, e-negotiation, e-informing, e-design and e-evaluation. The collected data were analysed using structural equation modelling. Findings/results: The results of the study showed that two e-procurement components, namely e-design and e-negotiation, exerted a significant positive influence on supply chain integration. The other three e-procurement components, namely e-sourcing, e-evaluation and e-informing, were statistically insignificant in influencing supply chain integration. The study further revealed that supplier integration exerts a positive and significant linear relationship with both the tangible and intangible dimensions of supply chain performance (SCP). Practical implications: Retail SMEs may refer to this study for information regarding which components of e-procurement deserve primary attention when implementing such systems and how these may be harnessed for the improvement of SCP. Originality/value: The study represents a pioneering attempt to model the nexus between e-procurement, supplier integration and the performance of retail supply chains within South African SMEs. It provides the foundation for future research studies on the implementation of e-procurement and other digitalised supply chain practices in various sectors of the South African economy.
Highlights
Introduction and background to the studyIn South Africa and other developing countries, most small to medium enterprises (SMEs) continue to face countless challenges that deter their growth and performance
The literature analysed in this study disclosed that e-procurement is one of the most critical developments in supply chain management (SCM) in modern times
The literature revealed the fundamental role of supplier integration in supporting supply chain performance (SCP) in different forms of enterprises
Summary
In South Africa and other developing countries, most small to medium enterprises (SMEs) continue to face countless challenges that deter their growth and performance Such challenges range from the effects of technology, globalisation and liberalisation to poor networking amongst the important players in the market and stiff competition from established firms (Gumboh & Gichira, 2015; Pooe, Mafini, & Loury-Okoumba, 2015; Sibanda & Manda, 2016). The lack of appropriate technology has been cited as an impediment to SME collaboration, innovation and growth (Nguyen, 2009; Steyn & Leonard, 2012) To overcome such problems, many SMEs have shifted to the use of technologies such as Internet-based business platforms in the quest to improve efficiency and effectiveness (Basheka, Oluka, & Mugurisi, 2011; Fernandes & Vieira, 2015; Makien, Kahkonen, & Lintukangas, 2011). The embracing of such initiatives has provided SMEs with competitive advantages that enable them to compete with larger firms (Nugroho, Susilo, Fajar, & Rahmawati, 2017)
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