Enhancing supplier integration through e-design and e-negotiation in small and medium enterprises

Abstract

Background: The effects of globalisation, e-procurement and supply chain integration have become paramount to the success of supply chain management, especially to small and medium enterprises (SMEs) in a developing country context such as South Africa. Most studies on e-procurement and supplier integration have focused on large firms.

Aim: The aim of this study was to investigate how SMEs can enhance their supplier integration through e-design and e-negotiation.

Setting: This study was conducted in the Sedibeng region of the Gauteng province, South Africa.

Method: A quantitative research methodology was adopted in which the survey questionnaire was used to gather data from 283 SME owners and managers. A non-probability sampling employing convenience method was used. A structural equation modelling and the path modelling techniques were undertaken for this study.

Results: The principal finding of this study reveals that e-design has a positive and significant linear relationship with supplier integration. The findings further reveal that e-negotiation has a positive and significant linear relationship with supplier integration.

Conclusion: This study added practical value by developing an integrative model which might be used by SME practitioners in South Africa. The study recommended that SME owners and managers must effectively implement e-design and e-negotiation systems to increase the chance of integrating with their suppliers, thereby increasing the chance of improving performance and cutting supply chain costs.