System dynamics investigation of information technology in small and medium enterprise supply chain
Journal of Advances in Management Research
ISSN: 0972-7981
Article publication date: 26 October 2012
Abstract
Purpose
The purpose of this paper is to study the impact of information technology (IT) capabilities on an organization's performance. It investigates the effect of adoption of IT on the market share of the small and medium enterprise.
Design/methodology/approach
The system dynamics methodology is used as a modeling and analysis tool to investigate the supply chain problem of an organization. The simulation model of the supply chain is made considering the relationships among different variables, using system dynamics concepts.
Findings
This work suggests that an organization should increase its capacity joining rate simultaneously with increase in orders (which increases due to improvement in IT capability), to reduce further backlog which leads to customer switch to another manufacturer.
Research limitations/implications
The work is based on simulation work, so the results cannot be generalized for all situations.
Originality/value
The present model can be used to study different scenarios and variables. Also, the model can be extended by considering more accumulations and variables in the supply chain system. It may be useful to policy makers, decision makers and regulators dealing with a wide spectrum of strategic issues and policies in the supply chain.
Keywords
Citation
Sidola, A., Kumar, P. and Kumar, D. (2012), "System dynamics investigation of information technology in small and medium enterprise supply chain", Journal of Advances in Management Research, Vol. 9 No. 2, pp. 199-207. https://doi.org/10.1108/09727981211271940
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited