E-Commerce and the Emergence of Just-in-Time (JIT) Inventory: Significance for SMEs in Guyana

This study explores the connection between e-commerce literacy and Just-in-Time (JIT) inventory management practices among Small and Medium Enterprises (SMEs) in Guyana, a developing country with varying levels of digital adoption.As SMEs face increasing pressure to meet higher customer expectations and manage more complex supply chains, JIT inventory management can be an effective way to implement lean practices without maintaining excess stock.Successfully using JIT requires SMEs to enhance real-time inventory visibility and coordinate purchasing, logistics, and supplier deliveries.These improvements can be particularly challenging for small, resource-limited SMEs.This qualitative study employs a mixed-methods approach, collecting quantitative data through structured surveys from 248 SMEs and qualitative data via semi-structured interviews with 11 stakeholders across industries such as retail, agriculture, manufacturing, and services.The analysis of the quantitative data supports the hypothesis, showing that SMEs utilizing digital tools, such as procurement apps, cloudbased inventory systems, or e-commerce platforms, experience operational benefits, including shorter lead times, improved stock availability, faster inventory turnover, and more efficient order fulfillment.Furthermore, there is a strong negative correlation between firms using digital procurement tools and procurement and inventory inefficiencies, indicating that e-commerce facilitates successful JIT.However, structural barriers still hinder many firms from fully adopting JIT, especially in remote areas.These barriers include digital literacy gaps, limited access to affordable technology, and inadequate digital infrastructure with reliable connectivity.The findings suggest that while e-commerce has significant potential to aid JIT adoption, SME success depends on initial and ongoing investments in digital infrastructure, staff training, and supply chain coordination.This research contributes to the growing literature on digital transformations guided by lean principles in the Southern Hemisphere, providing both theoretical insights and practical recommendations for policymakers and SME managers.Ultimately, the study emphasizes the importance of adopting universal digital strategies that can help SMEs in emerging economies, like Guyana, improve inventory management, organizational resilience, and business growth.