Supplier involvement as the link between information sharing, e-procurement and small and medium enterprises performance in South Africa

Abstract

Orientation: Supplier involvement has been found to influence firm performance with information sharing and e-procurement identified as aspects that are fundamental to its efficacy. This dimension of supply chain interactions has however received little research attention – which is alarming, given how important these variables are in the success of buyer–supplier relationships.
Research purpose: The purpose of the study was to explore the role of supplier involvement in the relationship between information sharing, e-procurement and firm performance in the small and medium enterprise (SMEs) sector of South Africa – a section that needs intervention.
Motivation for the study: Supplier involvement is a dimension of business that can contribute towards increased performance of a firm. It has become a strategic imperative in the challenging SME sector of South Africa. Furthermore, information sharing and e-procurement can allow supplier involvement to be more effective. However, without empirical research, the potential for a practical contribution to the sector is not possible. Herein lies the motivation for the present study.
Research design, approach and method: This is a quantitative study, and a correlational research design was used. A sample size of 120 SMEs was acquired and data was collected through the survey method by means of simple random sampling.
Main findings: The results indicated support for the relationship between information sharing and supplier involvement and that of information sharing and e-procurement.
Practical/managerial implications: The results suggest that information sharing is key in ensuring that supplier involvement and e-procurement within the SME sector is effective.
Contribution/value-add: The study expands insight into the role of supplier involvement within the SME sector.