The Cumulative effects of ICT adoption and Integration Practices on Supply Chain Performance in Nigeria

Abstract

In today’s dynamic supply chain environment, the successful operation of companies in most industries is becoming increasingly dependent on their ability to adopt and utilise ICT systems. However, the major challenges facing the adoption of ICT in developing countries are related to lack of knowledge and skills, lack of investment in IT infrastructure, and inadequate training in new technologies. This study aims to explore the effects of ICT adoption and supply chain integration on supply chain performance in Nigeria. This is envisaged due to inadequate empirical studies conducted on the roles of various dimensions of ICT and integration on supply chain performance on one hand and fundamentally also due to Nigerian government central ambition to develop a digital economy.
Moving from the separate and individual roles of ICT adoption and integration practices to their digital effects on Nigeria’s economy. A literature review on ICT adoption, integration practice and supply chain performance measurement were carried out on developed and developing economies to identify and understand specific performance measures that can impact on Nigerians aspiration of developing an innovative and digital economy.
Pilot study was conducted with scholars from the University of Central Lancashire five Professionals in supply chain industry and ICT deployment experts from Nigeria. The questionnaire underwent a screening process prior to the commencement of data collection. The process ensures the questionnaire consisted of the relevant structure, readability, completeness, and devoid of ambiguity as stated by Alsuhaibani et al. (2021). The final survey questions had minimal modifications based on the input received. The Pilot testing was carried out utilising both mailed postal and web survey methodologies, as recommended by Dillman et al. (2017). The pilot test resulted in an initial list of performance measures based on the review. Industrial interviews were then conducted to confirm the measures and understand the distinct contextual definitions and diffrerences between ICT adoption and integration practices of developed economies from the emerging economies. Based on these a conceptual model was developed to describe the network and relationships between ICT adoption and integration practices and their influence on enhancing supply chain performance.
The network theory was used to explain relationships among linked entities that strong ties offer greater reliability, while loose ties enhance flexibility and a combination of strong and weak ties that matches supply chain needs is created to maximise supply chain performance in contrast to the traditional supply chains formed which has no concern for the overall network alignment. In addition, the study is grounded in the resource-based view (RBV) of the firm as the theoretical lens and integrative capability perspective for the interrelations among the adoption of ICT, integration practices and performance outcome of supply chains. The main argument is that the firms’ resources are the source of competitive advantage which reflects tangible technologies and patterns of actions in the use of resources, this research considers ICT as such potential assets, which are complemented by supply chain integration capabilities.
The study adopts both qualitative and survey approaches conducted with 51 firms in the Nigerian Information and Communication Technology Development Agency (NITDA) sector. The interviews were transcribed, and data was assessed using correlation, regression, and factor SME analysis. Based on these the effects of intra- and inter-organisational ICT and the mediation of integration on supply chain performance was examined. The outcomes of the survey clarify the dominance of performance measures in the industry according to the level of importance. Furthermore, the structural equation model analysis indicated that there is a link between the choice of performance measures and organisations’ strategies. Also, the results indicate a link between ICT adoptions organisational integration practice and actual performance of the organisations, thus suggesting that ICT adoption are essential organisational resources to support competitiveness. This study identifies the most influential strategy and performance measures in enhancing organisations’ performance within the ICT companies and supply chain industry.