Factors influencing the adoption of enterprise application architecture for supply chain management in small and medium enterprises with Capricorn District Municipality

Abstract

Increasing consumer demand, customer expectations, and change in technology compel industrial corporations, governments and small medium enterprises (SMEs) to adopt Enterprise Application Architecture (EAA). EAA is a system where the applications and software are connected to each other in such a way that new components can easily be integrated with existing components. This study focused on how internal and external factors impact the adoption of EAA for Supply Chain Management (SCM) in SMEs, located in the Capricorn District Municipality. Data is analysed through a statistical package for the social sciences (SPSS version 25). A quantitative methodology with self-administered questionnaire was used to collect data from SMEs (SMEs owners and managers). In total, 480 questionnaires were distributed and 310 useable were returned. Cronbach’s Alpha was used to measure reliability. Data validity is obtained through the use of Kolmogorov-Sminorv-Test to ensuring that the questionnaire was based on assumptions from accepted theories as set out in the literature review. From the research findings, it was concluded that the adoption of EAA for SCM in SMEs depends on internal factors, external factors and perceived attitudes towards the adoption of EAA. The managerial implications of the study is based on actual results such as; (a) Internal factors on owners’ characteristics were described as assessment of interior dynamics affecting the enterprise, of which the management have a full control over them, such as employees, business culture, norms and ethics, processes and overall functional activities, (b) The Theory of Reasoned Action (TRA) revealed that behavioural measures on Enterprise Resources that depends on speculations about the intensions towards the adoption of EAA for SCM, (c) Compatibility in Diffusion Theory of Innovation ascertains that Technology Acceptance Models need to be linked with relevant Information System Components to have a functional EAA for SCM, (d) The Theory of Planned Behaviour (TPB) encourages apparent behaviour on control for supplementary forecaster on intentions of employees towards the adoption of EAA for SCM in SMEs, (e) The TPB encourages apparent behaviour on control for supplementary forecaster on intentions of employees towards the adoption of EAA for SCM in SMEs, (f) Consultations with government parastatals or legal representatives of the enterprise would save the SMEs against any unforeseen challenges such as product liabilities, legal costs on lawsuit, tax evasion or avoidance penalties so forth, (g) The Diffusion Theory of Innovation (DTI) proposes that the Perceived Attitudes towards the Adoption of EAA have is affected by behaviour challenges from employees’ personal conduct that affect SCM activities within the SMEs, and (h) The DTI on the intention towards the adoption of EAA for SCM provides the competence in limiting some negative thoughts about the integrative phases or steps limiting the adoption of EAA for SCM. Keywords: Enterprise Application Architecture; Supply Chain Management; Internal and External Factors Affecting Adoption; and Technology Acceptance Models