Integrating and Controlling ICT Implementation in the Supply Chain: The SME Experience from Baja California

Abstract

It is mentioned that companies’ competition is currently more associated with supply chains (SC) than production processes since sometimes logistics costs represent up to 70% of the total production cost in a product. To improve efficiency in SC, companies are implementing information and communication technologies (ICT). This paper reports a structural equation model that incorporates four latent variables related to ICT applied in SC: technological innovation, information management, and information availability as independent variables, and operating benefits gained as a dependent variable. These variables are related using six hypotheses that are validated using information obtained from 80 responses to a survey applied to small and medium-sized enterprises in Baja California (Mexico). The partial least squares technique is used to validate the hypotheses in the structural equation model. Findings indicate that technological innovation is the basis for the successful implementation of ICT and its application guarantees greater information availability and efficient management, leading to obtaining operating benefits in SC.

Keywords

• structural equation model
• information and communication technology
• ICT integration