The fostering role of information technology on SMEs’ strategic purchasing, logistics integration and business performance

Abstract

Scholarly concerns about the fostering role of information technology (IT) in supply chain management have increased dramatically over the past decades. Nevertheless, there are significant issues yet to be addressed and resolved, one of which relates to the influences of IT on strategic purchasing, logistics integration and business performance in the context of small and medium enterprises (SMEs). In view of the importance of IT in today’s business world, and supply chain management in particular, the current study seeks to investigate the influence of IT on SMEs’ performance and the mediating role of strategic purchasing and logistics integration. Four hypothesised relationships are tested with a sample of 162 SMEs in Zimbabwe. The results suggest that IT positively influences SMEs’ strategic purchasing, logistics integration and business performance in a significant way. The managerial implications of the findings are discussed, and the limitations and future research directions are indicated.

Key words: strategic purchasing, information technology (IT), logistics integration,business performance, small and medium enterprises (SMEs)