Enhancing Supply Chain Integration and Performance through Information and Communication Technology

Abstract

While the significance of Information and Communication Technology (ICT) adoption in business operations has been steadily growing, its impact on supply chain integration (SCI) and supply chain performance (SCP) remains unclear in the existing body of literature. This paper seeks to evaluate the influence of ICT adoption on SCI and SCP, delving into the presence of mediator and moderator variables. Using survey data collected from 259 participants in the dairy supply chain in Iringa, Tanzania, this quantitative study employs structural equation modeling to examine the impact of ICT adoption on SCI and performance, as well as to explore the role of SCI as a mediating factor and the moderating effect of age, gender, skills, and education level. The findings indicate that ICT adoption has no significant direct impact on SCP, as this relationship is entirely mediated by the three levels of SCI (SI, II, and CI), revealing how this connection is influenced by skills and education level. The study offers a comprehensive exploration of ICT adoption within the context of food processing supply chain performance, demonstrating how companies can harness the benefits of ICT adoption through SCI. It also underscores that ICT adoption alone does not enhance S CP; rather it is in tandem with a stable SCI that such improvements can be realized.