Critical Factors of E-SCM Adoption on Small and Medium Sized Enterprises Performance: An Empirical Study

Due to the gradual importance of e-Supply Chain Management (e-SCM) to the Smalland Medium-Sized Enterprises (SMEs) in Taiwan, this research intended to explore the critical factors which allowed the Smalland Medium-Sized Enterprises in Taiwan to employ e-SCM. The research further studied that under these critical factors, how the adoption of e-SCM affected their organizational achievements. In this research, the researcher organized the related literature according to Grounded Theory and by distributing the questionnaires to the experts; the researcher initially confirmed the aspects and variables which affected Smalland Medium-Sized Enterprises’ adoption of e-SCM. Subsequently, the researcher distributed the enterprise questionnaire to the companies of automobile parts, explored the critical factors and the influence of the variables under each aspect upon the organizational effect through regression analysis. Via Discriminant analysis, the research found that “supporting capacity of system supplier”, “relative advantage of e-SCM”, “organizational scale”, “fundamental construction of interior informational technology” were the critical factors which affected SMEs’ application of e-SCM. Upon the regression analysis, the research found that employing e-SCM when the system suppliers’ supporting capacity was better and when e-SCM brought better benefits to the enterprise would prominently upgrade organizational effect. The research finding can be the reference for the SMEs when they apply new information technology in the future, offer the related units government the suggestion for establishing guiding and regulation and allow the system suppliers to propose more appropriate products and service.