Abstract
There is an increasing awareness about the paramount importance of information technology within business in the context of large businesses. However, research about the investigation of the role of information technology resources in fostering collaborative communication, network governance and relationship longevity in the small and medium enterprise sector has remained scant. The primary objective of this study was to investigate the influence of information technology on collaborative communication, network governance and relationship longevity in Zimbabwe’s SME sector. Five research hypotheses were posited and sample data from 162 small and medium enterprise suppliers were collected and used to empirically test the hypotheses. The results of this study showed that information technology resources positively influenced small and medium enterprise suppliers’ collaborative communication, network governance and consequential relationship longevity with their buyers in a significant way. Overall, the current study findings provided tentative support to the proposition that information technology resources, collaborative communication and network governance should be recognised as significant antecedents for improved relationship longevity between suppliers and their buyers in the SME setting. Therefore, managers in the small and medium enterprise sector and small and medium enterprise owners need to pay attention to both collaborative communication and network governance in order to optimise information technology resource impact on their relationship longevity with their business counterparts. Limitations and future research directions were also indicated.
Highlights
Managing supply chains with efficacy creates value and enhances supply chain members’ business performance (Zhao, Xie & Zhang 2002)
A key question that can be asked is: What relationship-specific factors are likely to affect the development of long-term orientation in order for supply chain partners to realise the superior performance? It is worth noting that supplier communication and supplier network structure are two key constructs in the evolving paradigm of supply chain management (SCM) – a paradigm whose general theme is the shifting of emphasis from isolated individual firm performance to superior long-term collaborative value creation in a whole supply chain
In the context of SCM, network structure refers to a grouping of businesses and customers who are characterised by strong linkages between supply chain members with low levels of vertical integration (Prajogo & Olhager 2012)
Summary
Managing supply chains with efficacy creates value and enhances supply chain members’ business performance (Zhao, Xie & Zhang 2002). As indicated by Vijayasarathy (2004) and Prajogo and Olhager (2012), effective and efficient supply chain management (SCM) forms the basis upon which long-term, sustainable, competitive edge and superior supply chain performance contracts can be achieved. Researchers and managers have increasingly recognised that in order to capture potential synergy and create superior value in supply chains, the supply partners must develop effective communication and network structures (Aviv 2001; Su & Zhang 2006). Research interest in supply chain collaborative communication and network governance is currently quite substantial and growing (Chen & Paulraj 2004; Kim & Mahoney 2006; Vijayasarathy 2004; Prajogo & Olhager 2012)
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