Towards an integrated information communication technology framework: Linking Namibian rural based small and medium enterprises to global value chains.

Abstract

The globalization of supply chains has increased the complexity of logistics and supply chain management. In today‟s business world, geographic boundaries have become less relevant and the logistic networks now transcend borders and significantly permeate into other economies. As enterprises worldwide grapple to embrace these changes, Small to Medium Entrepreneurs in marginalized rural communities in Namibia are yet to reap the benefits of the ongoing logistics evolution. Instead they face a number of challenges. Issues such as the digital divide, under-developed market facilities, e.g. storage equipment, and the large distances that have to be travelled to reach economic hubs are just a few examples. Moreover, the skewed income distribution between urban and rural communities and the spatial demographic locations of alternative market segments has restricted rural based Small and Medium Enterprises (SMEs) to being primary service providers to disadvantaged people. This research critically examines the state of logistics in the Namibian rural market. It provides anecdotal illustrations of how existing public and private sector ICT infrastructure may be mobilized and effectively applied to the entire supply chain. It furthermore highlights the importance of IT applications in supply chain management and its impact on profitability to rural based enterprises. Based on this, the research concludes by developing and presenting an integrated ICT framework that promotes the participation of rural SMEs in the robust global supply chains.