Abstract

It is mentioned that companies’ competition is currently more associated with supply chains (SC) than production processes since sometimes logistics costs represent up to 70% of the total production cost in a product. To improve efficiency in SC, companies are implementing information and communication technologies (ICT). This paper reports a structural equation model that incorporates four latent variables related to ICT applied in SC: technological innovation, information management, and information availability as independent variables, and operating benefits gained as a dependent variable. These variables are related using six hypotheses that are validated using information obtained from 80 responses to a survey applied to small and medium-sized enterprises in Baja California (Mexico). The partial least squares technique is used to validate the hypotheses in the structural equation model. Findings indicate that technological innovation is the basis for the successful implementation of ICT and its application guarantees greater information availability and efficient management, leading to obtaining operating benefits in SC.

Highlights

  • Companies seek to optimize supply chain (SC) operations, and innovation is essential to ensure survival in the global market

  • information and communication technology (ICT) have evolved together with a complexity value chain (VC) of products or services offered by companies driven by economic and social changes and will increase in pace as they are applied in production systems [2]

  • This article aims to analyze three critical success factors in ICT implementation in maquiladora industry (MI) in Baja California (Mexico): Technological innovation, Information availability, and Information management as independent variables, and to determine their impact on Operating benefits obtained in the SC as the dependent variable

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Summary

Introduction

Companies seek to optimize supply chain (SC) operations, and innovation is essential to ensure survival in the global market. Empirical evidence shows that most small and medium-sized enterprises (SMEs) implementing innovation activities will improve their production processes and, the financial income. For such reason, information systems that generate knowledge that guide organizations towards a vision of “up-to-date information and communication technology (ICT) tools” should be investigated. Information systems that generate knowledge that guide organizations towards a vision of “up-to-date information and communication technology (ICT) tools” should be investigated These ICTs enable SC members to improve product flow, services, and information in real-time [1]. ICTs have evolved together with a complexity value chain (VC) of products or services offered by companies driven by economic and social changes and will increase in pace as they are applied in production systems [2]

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