Operational and Behavioural Dimensions of e-Supply Chains Among Malaysian's SMEs

Abstract

This paper reviews the available literature to identify theoretical and empirical gaps regarding e-Supply chain adoption among small and medium sized enterprises (SMEs). We argue that a generic e-Supply chain framework should employ appropriate operational and behavioural perspectives. We propose that e-Supply chain operation can succeed only when integrated with an efficient supply chain network and a strategic plan committed to e-Business. Survey data from 208 Malaysian SMEs are collected and Structural Equation Modelling (SEM) is employed to apply the proposed framework. More specifically, a set of three empirical models are examined to evaluate the validity and impact of supply chain strategy, e-Business adoption, and the interaction of these constructs on business performance. Our review suggests that much of the existing e-Supply chain adoption and implementation literature is not firmly grounded in theory. We have suggested that the systems engineering tradition of focusing on the interactions of technology, organizational structure, and personnel provides a useful framework for understanding the business performance of e-Business. The technology-organisational and people (TOP) dimensions are based on sound systems engineering principles that are widely recognised and accepted for improving manufacturing organisation. We suggest that these principles are equally valid for the e-Business oriented and virtual organisations. These expectations are supported by our empirical results. We find that measures based on the TOP conceptual scheme provide reliable and valid scales that are equally applicable to both e-Business and non-e-Business firms.