Original Research

E-procurement, supplier integration and supply chain performance in small and medium enterprises in South Africa

Jerimiah Madzimure, Chengedzai Mafini, Manillal Dhurup
South African Journal of Business Management | Vol 51, No 1 | a1838 | DOI: https://doi.org/10.4102/sajbm.v51i1.1838 | © 2020 Jerimiah Madzimure, Chengedzai Mafini, Manillal Dhurup | This work is licensed under CC Attribution 4.0
Submitted: 06 November 2019 | Published: 03 September 2020

About the author(s)

Jerimiah Madzimure, Department of Logistics, Vaal University of Technology, Vanderbijlpark, South Africa
Chengedzai Mafini, Department of Logistics, Vaal University of Technology, Vanderbijlpark, South Africa
Manillal Dhurup, Center for Academic Development, Faculty of Management Sciences, Vaal University of Technology, Vanderbijlpark, South Africa


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Abstract

Purpose: With rapid changes in technology and the globalisation of markets, firms, especially small to medium enterprises (SMEs), require support to adapt to technology and make use of e-procurement functions to develop competitive advantages. Information systems such as e-procurement have become increasingly linked with other business activities such as supply chain integration to initiate the growth of SMEs. This study investigated the relationship between e-procurement, supplier integration and supply chain performance in retail SMEs in South Africa.

Design/methodology/approach: A quantitative research approach was followed in which a sample of 283 owners and managers of SMEs in Gauteng Province, South Africa, were surveyed using a structured questionnaire. The study considered five e-procurement components, namely e-sourcing, e-negotiation, e-informing, e-design and e-evaluation. The collected data were analysed using structural equation modelling.

Findings/results: The results of the study showed that two e-procurement components, namely e-design and e-negotiation, exerted a significant positive influence on supply chain integration. The other three e-procurement components, namely e-sourcing, e-evaluation and e-informing, were statistically insignificant in influencing supply chain integration. The study further revealed that supplier integration exerts a positive and significant linear relationship with both the tangible and intangible dimensions of supply chain performance (SCP).

Practical implications: Retail SMEs may refer to this study for information regarding which components of e-procurement deserve primary attention when implementing such systems and how these may be harnessed for the improvement of SCP.

Originality/value: The study represents a pioneering attempt to model the nexus between e-procurement, supplier integration and the performance of retail supply chains within South African SMEs. It provides the foundation for future research studies on the implementation of e-procurement and other digitalised supply chain practices in various sectors of the South African economy.


Keywords

e-procurement; supplier integration; supply chain performance; small to medium enterprises; South Africa.

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