Interrogating antecedents to SME supplier performance in a developing country

Abstract

The purpose of this study was to analyse the antecedents to supplier performance by examining the relationship between information sharing, information quality, institutional trust, supply chain collaboration and supplier performance in small and medium enterprises (SMEs). A quantitative design was adopted in which a survey questionnaire was administered to 400 owners and managers of SMEs based in the southern part of Gauteng, South Africa. Respondents were selected using a nonprobability convenience sampling technique. Data was analysed using a combination of the Statistical Packages for the Social Sciences (SPSS version 22.0) and Analysis of Moment Structures (Amos version 22) software. The psychometric properties of the measurement scales were ascertained using confirmatory factor analysis (CFA). Hypotheses were tested using structural equation modelling (SEM). Information sharing exerted a positive influence on both institutional trust and supply chain collaboration. Information quality exerted a strong positive influence on institutional trust but had an insignificant influence on supply chain collaboration. Institutional trust was statistically insignificant, whereas supply chain collaboration was statistically significant in influencing supplier performance. The results of this study validate the roles performed by the constructs examined in facilitating the improvement of supply chain activities among SMEs and their suppliers.

Keywords: SMEs, information sharing, information quality, institutional trust, supply chain collaboration, supplier performance