Enhancing SME performance through supply chain integration, collaborative planning, and supply chain capabilities

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Peer-Reviewed Research
  • SDG 17
  • SDG 9
  • SDG 8
  • Abstract:

    Abstract: The past decade has seen a growing interest in the strategic importance of integrating suppliers, manufacturers and customers. For this reason, supply chain integration has attracted the attention of both the researchers and practitioners alike. Whilst there have been studies conducted to provide more insight into this area, there remains a need for more understanding of the notion and practice of supply chain integration especially as increasing competition puts pressure on firms. Yet, so far, the empirical investigation of the impact of these antecedents on small and medium enterprise (SME) performance has received little attention. The main objective of this study is to fill this void by investigating the influence of supply chain integration, collaborative planning, and supply chain capabilities on SME competitiveness and firm performance in the Sedibeng municipal district area. The study employs a quantitative method. Sample data from 300 SMEs collected for the final data analysis by means of confirmatory factor analysis (CFA) and structural equation modelling (SEM) using AMOS 22.0 statistical software package. The principal finding of this study reveals that supply chain integration, collaborative planning and supply chain capabilities have an impact on SME performance. These findings lend credence to the notion that by investing on supply integration tools, by planning collaboratively and by developing supply chain capabilities, SMEs can improve their own performance.