Abstract

Supply chain management is becoming more complex for small and medium enterprises (SMEs) and the need to improve performance seems to be significantly necessary. For SMEs to be efficient and effective towards minimising disruptions within the supply chain, ensure availability of resources and improve just-in-time delivery, information sharing coupled with supply chain collaboration and responsiveness are essential strategies to enhancing business performance. Therefore, the current study regards supply chain collaboration, responsiveness and information sharing as major factors influencing not only SMEs performance, but also allowing SMEs to better coordinate their business activities both within and outside the business environment. In this study, a quantitative research methodology was applied. Relational governance theory (RGT) provided structure to a clear understanding of information sharing among SMEs and customers, highlighting that SMEs aiming to improve their performance, should adopt the style of collaborating with the right suppliers and continuously communicating with the members of the supply chain. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) results support the empirical findings suggesting that the model fits the study. The reliability and validity of the constructs (composite reliability) and the average variance extracted sought the empirical findings that correlate the need for SMEs to employ information sharing, supply chain responsiveness and supply chain collaboration as a determinant influence on SMEs performance.

Highlights

  • Chains for small and medium enterprises (SMEs) are becoming more complex and the need to improve performance seems to be significantly necessary (Skipworth, Godsell, Wong, Saghiri & Julien, 2015; Turner, Aitken & Bozarth 2018)

  • One of these study limitations revolves around the fact that the study was restrained only within Emfuleni Local Municipality SMEs

  • A relatively small sample size of 500 SMEs was employed and it limited the extent at which the information can be generalised

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Summary

INTRODUCTION

Chains for small and medium enterprises (SMEs) are becoming more complex and the need to improve performance seems to be significantly necessary (Skipworth, Godsell, Wong, Saghiri & Julien, 2015; Turner, Aitken & Bozarth 2018). Many SMEs who strive to improve information sharing capabilities are slow in their capability to respond to market changes. This may be attributed to inefficient supply chain collaboration (Omar, Jayaraman & Dahlan, 2016). The degree of information shared can generate performance opportunities for SMEs and create a means for SMEs to work collaboratively to eliminate inefficiencies in information shared (Costantino, Gravio, Shaban & Tronci, 2014). There is a need for this article to present an investigative model to evaluate the influence of information sharing, supply chain responsiveness and supply chain collaboration on SMEs performance in the southern Gauteng region.

LITERATURE REVIEW
Supply chain collaboration and SMEs performance
Supply chain responsiveness and performance
Information sharing and SMEs performance
Discriminant Validity
Confirmatory Factor Analysis
Structural Equation Model Testing
Findings
OF EMPIRICAL FINDINGS
CONCLUSION AND MANAGERIAL IMPLICATION
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