Supply chain relationships as predictors of supply chain performance in South African SMEs

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Pfanelo, Nematatani
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The growth and development of SCM is attributed to number of factors such as partnership, collaboration, integration and relationship commitment. Despite increasing awareness of the importance of joint venture to organisations, research on the supply chain relationships (supply chain partnership, collaboration, integration and relationship commitment) and performance have received little attention. Therefore, using a data set of 271 individuals from the small and medium enterprise (SMEs) sector in South Africa, this study examines the influence of supply chain partnerships on collaboration, collaboration on integration, integration on relationship commitment and relationship commitment on performance. Structural equation modeling (SEM) method was used to analyses the data collected whereby individuals agrees with that supply chain relationships increase performance in the work environment. The study has developed a supply chain management (SCM)-based performance measurement system (PMS) for the case of SMEs. Such a framework may help SMEs managers to establish their own supply chain functions and strategically plan improvements for weak areas. In addition, it may remain helpful for benchmarking current practices with industry norms requirements. Quite often, companies dealing with a large number of performance measures derived and expanded based on the suggestions from employees, consultants and past experiences (history) forget to realise that supply chain performance measurement can be better addressed when they joint venture.
M. Tech. (Logistics management, Faculty of Management Sciences), Vaal University of Technology
Supply chain management, Joint venture organisations, Small and medium enterprises, Structural equation modeling, Supply chain performance measurement