ICT’s Role for SMEs Integration in Supply Chains – Efficiency and Effectiveness?

Authors: Benedikte Borgström; Susanne Hertz

The potential of ICT (information and communication technology) has been a strong driving force for creation of the ?extended enterprise? and the integration of the supply chains. This potential has however only partly been realised. Still data are transferred in a large variety of ways and compatibility between systems is low. ICT’s role for the development within supply chains is getting questioned.This paper is about SME and ICT and supply chains. The focus is on integration of the supply chain and changes in ICT solutions and whether these changes will hinder or create new opportunities for SME in their development of the customer or suppliers relationships in the supply chains. The study is based on a pilot study or interviews and a survey were 1200 questionnaires were sent to 600 firms to cover customer and supplier relations, and complementary follow-up interviews. From the study we are specifically interested in SMEs (small and medium sized enterprises) making use of ICT development by connecting to other firms in the supply chain.While initial indications pointed to more hinders than opportunities for SMEs to integrate to existing supply chains, ICT’s role is of minor importance. The lack of resources and the type of systems that are preferred by the large firms can create severe constraints, but ICT is merely a resource among others that neither is special opportunity nor a hinder for close cooperation. SMEs? existence in supply chains is instead explained by extent of customization and adaptation due to efficiency and effectiveness. Preferred ICT-solutions are of the type one-to-one and highly customized that facilitates supply chain integration.

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Publish Year: 2003

Conference: Lugano, Switzerland (2003)