The influence of information sharing, supplier trust and supplier synergy on supplier performance: The case of small and medium enterprises

Abstract

Background: The assessment of supplier performance is an important activity for small to medium enterprises (SMEs) as they adopt and implement plans and policies aimed at enhancing their performance in order to achieve sustainable competitive advantages.

Objectives: The purpose of this study was to examine the influence of information sharing, supplier trust and supplier synergy on supplier performance in SMEs.

Method: A quantitative research design was adopted in which a survey questionnaire was administered to a sample of 309 owners and managers of SMEs based in southern Gauteng, South Africa. A confirmatory factor analysis was undertaken to assess the properties of the measurement scale. Hypotheses were tested using the path modelling technique.

Results: Information sharing exerted a moderate positive and significant influence on supplier trust and a weak but sigificant influence on supplier synergy. Supplier synergy had a strong positive and significant influence on supplier performance. However, the influence of supplier trust on supplier performance was weak and insignificant.

Conclusion: The study provides a useful framework for analysing the interplay between information sharing, supplier trust, supplier synergy and supplier performance in SMEs.