E LOGISTICS

Information and Communication Technology (ICT) integrates various elements that enable organizations to perform both administrative and operational tasks efficiently by processing, storing, and exchanging data related to supply chain activities (Biniazi et al., 2011). ICT utilizes software and network hardware to create automated systems that analyze data, aiding in decision-making (Neef, 2001). The application of ICT aims to improve market demand planning, production control, purchasing, supply chain management, and transportation (Devaraj et al., 2007; Biniazi et al., 2011).

While ICT resources such as hardware and software are relatively easy to implement, their mere adoption does not necessarily guarantee profitability or a competitive advantage. For small and medium-sized enterprises (SMEs) in manufacturing, it is essential to first assess their capacity to adopt ICT and ensure that the investment will enhance productivity and improve control over material resources (Gonzalvez et al., 2010; Aravindh & Ganesan, 2011).

Kwok Hung Lau & Haibo Huang (2012) highlight that information systems cover a wide range of technologies, including mobile, wireless, and intelligent systems, which significantly impact industries and everyday life. Information systems help organizations enhance performance, while Lee & Kim (2016) note that these systems are key drivers of change and strategic challenges in today’s highly competitive global marketplace. As organizations strive to differentiate themselves, they leverage technology to create and deliver customer value more effectively.

According to Laudon & Laudon (2016), technology represents the practical application of scientific knowledge. From the wheel to electricity, technology is deeply embedded in daily life. Pearlson, Saunders, & Galletta (2016) emphasize the importance of software in improving organizational performance, stressing that the development of information systems is crucial for success.

The integration of information technology (IT) with business processes has transformed modern organizations. Medium-to-large companies heavily invest in information systems (IS) that combine hardware, software, and networking to enhance efficiency and effectiveness. In some cases, IT becomes inseparable from business processes, such as accounting systems that rely on Accounting Information Systems (AIS) (Grant & Meadows, 2016).

Gebre-Mariam & Bygstad (2019) foresee the growing significance of logistics management information systems (LMIS) in the logistics sector. LMIS integrates data such as stock levels, shipment statuses, and costs, helping to inform supply chain decisions. However, automation alone cannot address all supply chain challenges. Poor management practices, if automated, can lead to inefficiencies, and ensuring data quality and good business practices are vital for automation to improve performance (Ma’sum & Aripin, 2020). Successful automation projects require collaboration across departments, including input from end-users, IT experts, and logistics personnel (Agyabeng-Mensah, Ahenkorah, & Korsah, 2019).

In an increasingly competitive environment, organizations must excel in their processes and enhance efficiency through technological adoption to remain competitive. Business growth relies on consistent sales, which stem from a large base of satisfied customers, enabling companies to deliver superior value to both internal and external stakeholders. Strong relationships with suppliers, who offer valuable knowledge and support, are crucial for business development. This integration fosters a strategic advantage, ensuring a reliable and timely supply of resources.

Traditional supply chain processes were often slow, requiring extensive paperwork and manpower. However, the integration of Information and Communication Technology (ICT) into supply chain operations accelerates business transactions and improves transparency, fostering trust with suppliers (Lysons, 2018). Organizations adopting ICT systems benefit significantly. Research shows that ICT adoption reduces purchasing transaction costs by 425 and shortens purchasing cycles, enhancing flexibility and providing more up-to-date information when placing orders (Hawking et al., 2004).

Moreover, ICT plays an increasingly critical role in Business-to-Business (B2B) commerce. Electronic supply chain systems reduce procurement costs, improve coordination among suppliers, speed up transactions, and enhance process efficiency (Samaniego et al., 2006; Wu et al., 2007). Despite these benefits, overhead costs and challenges in convincing suppliers to adopt e-procurement hinder widespread adoption (Talluri et al., 2006; Puschmann and Alt, 2005). A strategic approach is necessary for successful ICT implementation, considering its operational, technological, and strategic integration.

Organizations in today’s dynamic economy must align their internal strategies with the demands of a constantly evolving competitive landscape (Phillips, 2003). In government institutions, management plays a crucial role in e-procurement adoption. Top management commitment significantly influences this process, with management readiness being a key driver for increasing e-procurement adoption and implementation in local governments (Gori et al., 2017).