PurposeThe paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.Design/methodology/approachCross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.FindingsThe results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.Practical implicationsPractically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.Originality/valueEngaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.
This paper investigates the direct effects of Supply Chain Integration (SCI) and Information and Communication Technology (ICT) on firm performance, as well as the moderator effect of ICT. In the Abossey-Okai business enclave, the cross-sectional method was used to distribute questionnaires to owners of small and medium enterprises (SMEs) to evaluate the various dimensions of the study. The results indicate that all SCI dimensions (customer, internal, and supplier) had a positive and significant effect on firm performance. Also, ICT had a positive moderating influence on the relationship between SCI dimensions and firm performance. ICT had a significant impact on firm performance. Practically, this research will assist owners and managers of SMEs in coordinating with various departments and implementing internal practices that will build up cooperation by sharing vital information and instituting ways of decreasing cost. With these structures in place, it will help focal firms cooperate and coordinate well with external players diligently and access vital information to improve overall performance. Examining the individual dimensional effect of SCI on SMEs performance and extending the framework by individually moderating the relationship with ICT tools, this research adds to SCI’s and ICT’s available literature.
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