Collaborative relationships and SME supply chain performance
| Date | 01 June 2010 |
| Pages | 233-245 |
| Published date | 01 June 2010 |
| DOI | https://doi.org/10.1108/20425961201000018 |
| Author | Sarah Eyaa,Joseph M. Ntayi,Sheila Namagembe |
| Subject Matter | Public policy & environmental management |
In Uganda, small and medium enterprises
(SMEs) form the majority of firms in the
private sector (90% of the firms in the pri-
vate sector are SMEs). Their importance in
Uganda’s economy cannot be under looked
because of the contribution that they make
to national and economic development. The
SMEs employ a high percentage of the non
– farming population and contribute 70%
of the total GDP (BID Country Guide Se-
ries, 2008: Hatega, 2007). SMEs in Uganda
however face numerous challenges which af-
fect their per formance and sur vival in the
long run. In their study on improving infor-
mation access to SMEs in Northern
Uganda, Okello – Obura (2008) established
that SMEs have structural and operational
challenges that need to be addressed imme-
diately if economic development is to be at-
tained because they are the engine of
growth, employment creation and socio-
economic transformation. Hindrances that
affect the performance of SMEs, their com-
petitiveness and survival include limited in-
formation on financing options, inadequate
and expensive supply of utilities and limited
access to networks that are needed to en-
hance competitiveness (Hatega, 2007;
Kigozi, 2006). SMEs also suffer delivery of
poor quality products, late deliveries or no
deliveries at all in their supply chains (Ntayi
and Eyaa, 2010; Ntayi, Rooks, Eyaa and
Zeija, 2010). These aspects are indicators of
poor performance of SME supply chains.
Given that SMEs are very important in
Uganda’s economy, it is vital that the per-
formance of their supply chains is addressed.
Therefore, it is therefore important to gain
World Journal of Enterprenuership, Management and Sustainable Development, Vol. 6, No. 3, 2010
Sarah Eyaa,1Joseph M. Ntayi2and Sheila Namagembe3
Makerere University, Uganda
Abstract: SMEs especially those in developing countries face a number of challenges
that affect their performance and survival in the long run. One of the challenges
that has not been widely explored is that of SME supply chain performance. This
study attempts to examine the relationship between collaborative relationships and
SME supply chain performance in Uganda. SME supply chain performance is an
important area because SMEs account for a large percentage of the private sector.
Our study established that collaborative relationships explained 29.5% of the vari-
ation in SME supply chain performance. Information sharing and incentive align-
ment were found to be significant predictors of SME supply chain performance
while decision synchronization was not a signification predictor. These findings are
important and raise implications for theory and managers of SMEs in Uganda.
Keywords: supply chain collaboration, supply chain performance, SMEs, Uganda
copyright © 2010 WASD
1Department of Procurement and Logistics Management, Makerere University Business School, P.o.Box
1337, Kampala, Uganda. Email: eyaalydia@yahoo.co.uk eyaalydia@gmail.com.
2Email: ntayius@yahoo.com
3Email: namagembesheila@yahoo.com
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