Drop-shipping supply chain: the characteristics of SMES towards adopting it

Malaysian Small Medium-sized Enterprises (SMEs) have always been the largest provider to the economic development of the country. However, limited studies have been conducted within the field of drop-shipping supply chain. Therefore, the main aim of this study was to provide insights into Malaysian small-medium enterprises' characteristics which influenced the adoption of drop-shipping supply chain into their management. Data were collected through questionnaires from several business sectors of SME located in all over Malaysia. The findings specify that there was a highly positive correlation between the variables: organizational structure, organization strategy and firm's strategy towards the adoption of drop-shipping supply chain. The significant findings of this study showed that characteristics of SMEs highly contributed to the adoption level of drop-shipping. Hence, the outcomes of this study support the proposed framework and confirm that they indeed contribute to the adoption of drop-shipping supply chain by the SME.