Information and Communication Technologies to Achieve an Optimal Relationship Between Supply Chain Management, Innovation, and Performance

Introduction

The flow of materials throughout the industry allows the connection of different activities that add value to the goods demanded by customers. This approach goes beyond simple consumption, extending to processes related to purchases, materials management, manufacturing management, customer service and information flow on product distribution (Stevens, 1989). The complexity of today's world requires companies to interpret turbulent markets, causing greater interest in the aforementioned activities.

In this sense, pursuing the efficiency of the strategies, tools and techniques of the industry in the SCM is essential for the development of the industry. Each link becomes co-responsible for the necessary practices to bring goods to clients, thus allowing the benefit of the relationships that have with others due to the sharing of crucial knowledge and skills not developed in the company (Kim & Chai, 2017). The costs incurred by companies to facilitate the integration of the links has been the focus of research for both entrepreneurs and scientific literature, this global phenomenon aims to reduce the uncertainty of the economic environment that companies have, therefore, they direct their inter-company management practices towards the performance of organizations, influencing in a collateral way other capabilities that are strengthened by the integration of the actors in the chain (Annan, Boso, Mensah, & Eliza, 2016).

The industrial SME is clear that it must work hard to improve the internal performance of its operational activities, through better management with suppliers in order to have a more efficient and transparent supply chain management (Feeny, Lacity, & P. Willcocks, 2005). Companies consider it important to analyze the relationship they have with suppliers and thereby improve the performance of organizations through an adequate logistic control, better coordination between supplier-buyer and a better communication system with suppliers (van der Vorst & Beulens, 2002; Varma, Wadhwa, & Deshmukh, 2006). Information technologies (ITs) play an important role for collaboration in the supply chain, ITs available in the organizations serve to restructure the interactions between the partners, facilitating the management of communications, processes, monitoring and decisions. Recently, the key to staying connected, companies have begun the shift towards technologies that allow sending and receiving information in real time, making operations more agile and participatory (Akhtar, Khan, Tarba, & Jayawickrama, 2018). IT increases coordination capabilities, reduces transaction costs, and improves the business arrangements that underpin the performance of companies, as it builds governance structures among actors in the supply chain (Singh & Teng, 2016).

To face volatile markets, it has been considered critical to invest in ICTs to promote the design, invention, development and implementation of new products, processes, organizational systems or business models. Several authors share that IT is a key resource for innovation activities (Dong & Netten, 2017; Joshi, Chi, Datta, & Han, 2010). The efficiency of the available communication structures facilitates the synchronization and coordination of new operations that are based on new ideas establishing the cycle of the processes with greater precision to lead the organization towards specific targets (Shaar, Khattab, Alkaied, & Manna, 2015). ICTs have been considered as the main engine of growth in the knowledge economy (Cuevas-Vargas, Estrada, & Larios-Gómez, 2016). The literature shows that ICTs are positively related to the business performance of SMEs in developing countries (Chinomona, 2013; Cuevas-Vargas et al., 2016; Piget & Kossaï, 2013). Industrial SMEs require strategies that allow them to have competitive advantages through business stakeholders based on cost reduction, optimization of timely delivery of orders and proper management of information regarding supply management (Arend & Wisner, 2005; Bordonaba-Juste & Cambra-Fierro, 2009). The good practices of the supply chain management in the industrial SME allows operational performance which is given by the interest on the part of management to integrate continuous improvements and innovation in the operational activities that are directly related to the management of the supply (Bordonaba-Juste & Cambra-Fierro, 2009; Zeng, Xie, & Tam, 2010).