SME-based collaborative supply chain management: the impact of information technologies

The study aims to provide insight on how Small-and-Medium sized Enterprises (SMEs) adjust Supply Chain Management (SCM) in response to the introduction of Information Systems (ISs). An analysis of a three-tier, SME-based Supply Chain (SC) in the Taiwanese nylon fibre market is conducted. Based on this case study, a schema of IT-enabled collaborative SCM of SMEs is built. From the findings, ISs, information sharing, and performance metrics do facilitate implementation of business strategies, leading to synchronised SC operations and improved performance. In contrast, shared SC performance measures and SC-wide IT planning and strategy are not critical successful factors for SME-based collaborative SCM. As well, although it is argued, that advanced Inter-Organisational Systems (IOSs) are essential for SCM, they are found to be unnecessary for performance improvement in this studied SC. Finally, we find no support for the e-market hypothesis in this textile industry market structure.