Logistics Information Technology and Its Impact on SME Network and Distribution Performance: A Structural Equation Modelling Analysis

Introduction: This study explores the impact of logistics information technology (LIT) on supply chain relationships and distribution performance in small and medium-sized enterprises (SMEs) using South Africa as a case study. Although digital supply chain solutions are increasingly important, there is limited evidence of SME efficiency in emerging markets using LIT. Methods: This study utilises a survey of 313 SMEs from four South African provinces. Bayesian structural equation modelling (Bayesian SEM) was then used to examine LIT’s effects on distribution performances in terms of timeliness, product availability, and condition. Results: The results show that the adoption of LIT strengthens buyer–seller networks (β = 0.524, CI = [0.434, 0.613]) and improves distribution by enhancing both timeliness performance (β = 0.237, CI = [0.098, 0.372]) and product condition performance (β = 0.175, CI = [0.042, 0.259], β = 0.222, p < 0.001). However, it does not directly enhance product availability performance (β = 0.085, CI = [−0.030, 0.199]), signifying that LIT adoption by itself fails to improve product availability. The results also demonstrate that SME network relationships mediate the connection between LIT adoption and distribution performance metrics. Discussion: This study’s findings contribute to the literature and offer valuable information and guidance to policymakers as they underscore the importance for SMEs to invest in LIT integration and compatibility, as well as inventory optimisation and improved supplier communication to minimise transit time variation. Policymakers should support SMEs’ digital transformation through interventions including funding and training for LIT adoption. This study confirms the essential role of LIT in SME supply chains and illustrates that technology-facilitated relationships enhance distribution performance, which enhances SME competitiveness.