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

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.