Inventory Control Outcomes as Catalysts for Organizational Decision- Making in Cameroonian SMEs: A Systems Theory Perspective

George Atongang Owajege*, Akram Abdulsamad

Lincoln University College, Wisma Lincoln, No. 12-18, Jalan SS6/12, 47301 Petaling Jaya Selangor, Malaysia

*Corresponding Author’s Email: Owajege.phdscholar@lincoln.edu.my

Abstract

Introduction: Small and medium-sized enterprises (SMEs) are vital to Cameroon's economy; however, they face significant inventory control challenges. Despite the availability of advanced inventory techniques, these enterprises struggle to adopt them due to limited resources, inadequate infrastructure, insufficient training, and employee resistance. These factors hinder SMEs from reconfiguring inventory systems, despite poor performance, causing adverse outcomes. The literature lacks a comprehensive explanation of how operational feedback influences SME decisions to improve inventory control. This issue is evident among Sub-Saharan as well as SMEs in developing countries, which often rely on manual record-keeping, leading to stockouts and overstocking. Although studies attempt to connect these issues, there is a lack of clear understanding of how inventory outcomes impact SME decision-making from a systems perspective. Methods: This conceptual literature review aims to close this gap. It examines articles from Scopus, IEEE Xplore, and Google Scholar using qualitative thematic synthesis, inventory processes, technology adoption, and socio-technical relationships. Results: Most SMEs in these regions rely on manual tracking, often linked to poor records, which increases the perceived value of improved tracking. Manual systems tie up capital that could be used for new or existing inventory control infrastructures. Organizational readiness, infrastructure availability, and managerial competencies mediate and moderate these relationships, indicating that without these factors in place, the effectiveness of improved tracking systems may be significantly diminished. Conclusion: This study portrays inventory control as a feedback-generating subsystem within a socio-technical framework. Theory advances by examining the relationship between operational performance and decision-making in resource-constrained settings.

Keywords: Digital Inventory Tools; Inventory Control; Systems Theory; Operations Management; SMEs in Cameroon

Introduction

Cameroonian SMEs are adopting various inventory control approaches, including mobile platforms, money networks, barcode scanners, and cloud computing. Remote data platforms enhance inventory records and demand forecasting, as the use of connected systems among SSA SMEs increases. Research indicates these systems foster innovation despite limited resources (Nagahawatta et al., 2024). Connected systems enhance inventory platforms and operational efficiency, helping enterprises update operations and compete effectively. Cloud computing boosts data storage, analytics, and inventory efficiency. In SSA, SMEs use connected systems to collect and monitor real-time inventory data. IoT sensors, cloud computing, and mobile platforms form a digital ecosystem for efficient inventory control and supply chain financing (Khan et al., 2023). Cameroonian SMEs are increasingly adopting these platforms to improve inventory processes and gain a competitive advantage.

Information systems such as Radio Frequency Identification (RFID) can address inventory control issues by improving tracking and data accuracy. However, small and medium-sized enterprises (SMEs) in developing countries, such as Cameroon, often rely on manual methods due to limited finance, managerial incompetence, unreliable power, and poor Internet access (Irene et al., 2025; Kuteyi & Winkler, 2022). Similar constraints across similar contexts, including infrastructure gaps, insufficient training, and weak regulations, hinder SMEs from adopting technologies (Simba et al., 2023).

Current research addresses inventory control or technology adoption challenges separately, with limited studies integrating both dimensions in Cameroon. This gap affects the understanding of the relationship between technology adoption and inventory control in SMEs. Overcoming barriers can facilitate managerial adoption decisions by SMEs.

Research Objectives

Since this study is anchored in systems theory, special attention was given to feedback loops, interdependencies, and nonlinear relationships among the variables. Cross-study triangulation was employed to increase the validity and credibility of the findings. Multiple sources were used to reinforce themes wherever necessary. The review indicates that most Cameroonian SMEs use manual inventory control methods. Some firms have small storage areas where inventory is managed through paperwork and physical counts. Managers often persist with these methods and do not view inventory control as a strategic priority (Ntwoku et al., 2017).

Results

This section presents the objective findings extracted from the 29 peer-reviewed articles included in the systematic literature review.

Current Inventory Control Practices in Cameroonian SMEs

The review indicates that most Cameroonian SMEs utilize manual inventory control methods, such as paperwork and physical counts. Specifically, in pharmaceutical shops in Buea, research documented that poor inventory control leads to higher costs and lower profits (Muffee, 2021).

Technology Adoption Trends for Inventory Management

Research indicates that the adoption of organized inventory control practices among Cameroonian SMEs, as in other developing countries, is inconsistent. A minority utilize specialized cloud-based systems, whereas a larger number depend on spreadsheets or basic accounting software for manual data entry (Mafini & Loury-Okoumba, 2018; Mafini & Muposhi, 2017). These practices are described in studies as incremental rather than transformative in nature.

Impact of Performance on Adoption

Studies indicate that failures in manual systems, like excessive stock and incorrect records, compel SMEs to explore better inventory software or automated notifications (Ndzana et al., 2021). On the other hand, the high costs associated with holding inventory limit the available cash flow for upgrading systems (Kumar et al., 2024).

Contextual Factors

The synthesis highlighted that financial capabilities and external influences play a mediating role in the adoption process (Ardic et al., 2012). It was also discovered that managerial traits, such as technological expertise and a willingness to embrace innovation, influence the probability of adoption (Houngbonon et al., 2021).

Moderating and Mediating Factors in the Cameroonian Context

The synthesis of findings showed that the relationship between inventory control and technology adoption was significantly influenced by contextual moderators and mediators unique to the Cameroonian SME landscape. Financial capability and external factors were frequent mediators. Many SMEs knew their inventory was performing poorly but lacked resources for hardware, software, or training (Ardic et al., 2012).

Managerial traits were crucial moderators. Owner-managers with knowledge of structured inventory tools, openness to innovation, or ICT experience often saw inventory challenges as solvable through technology. Conversely, resistance to change and limited tech skills reduced the likelihood of adoption, despite significant inventory issues (Díaz-Arancibia et al., 2024; Mandaleeka et al., 2025). This highlights the socio-technical aspects of adoption, showing the impact of human agency on technical feasibility.

External factors worsened this relationship's instability. Research showed that improved inventory systems in Cameroon and other sub-Saharan countries were hindered by unstable electricity and low internet. With government support, SMEs adopted new technologies, but without it, inventory signals didn't lead to investments. These moderating and mediating factors show that in most developing country SMEs, like Cameroon, technology adoption is tied to institutional deficiencies, infrastructural instability, and managerial capacity limitations in the business landscape (Houngbonon et al., 2021). The literature shows inventory control outcomes interact dynamically with financial, human, and environmental subsystems, influencing adoption in complex, non-linear ways.

Discussion

This section examines the results through the lens of systems theory and explores their implications for decision-making in small and medium-sized businesses.

Systems Theory Interpretation

From a systems perspective, inventory control operates as a feedback-generating subsystem. When manual processes transmit inaccurate information, it impacts the entire organizational system, rendering SME structures vulnerable and diminishing their agility in volatile environments (Bam et al., 2017; Saka et al., 2020).

Socio-Technical Alignment

The findings concerning managerial resistance and skill deficiencies point out the importance of socio- technical alignment. Implementing a tool is ineffective unless the "social" subsystem (employee skills) is aligned with the "technical" subsystem (Kumar et al., 2024).

Reactive vs. Proactive Decision-Making

The observation that tools are frequently adopted only after experiencing "significant inventory losses" suggests a reactive approach to decision-making, which is prevalent in resource-constrained environments (Syed 2021; Shillie & Nchang, 2023). This implies that the adoption process is more influenced by operational pain points rather than by proactive strategic planning.

Theoretical Synthesis

The conceptual framework (Figure 1) enhances traditional models such as the Technology Acceptance Model (TAM) by integrating adoption within "interdependent workflows." This systemic feedback loop elucidates the persistent slow adoption rate despite the recognition of operational failures (Yu et al., 2023).

Limitations

This study is a systematic literature review with associated hurdles. While it offers a framework clarifying relationship dynamics, empirical testing is needed. Selecting specific databases limits the study, as they may exclude other articles or grey literature. Most articles are in English, with some translations that may introduce bias. The timeframe focus might omit older relevant publications. Systematic screening identified relevant articles, but the researcher's judgment may not be entirely correct. These hurdles can affect the review's reproducibility and replicability.

Conclusion

This literature review is based on systems theory, positing that an organization functions as a system with interconnected subsystems working toward a common goal. Systems theory emphasizes that a problem in one subsystem affects the entire system. This review examined the relationship between inventory control and technology adoption in Cameroonian SMEs, revealing a complex relationship influenced by financial capacity and moderated by managerial expertise. Inventory is a feedback loop, and technology adoption results from internal and external factors, not just inventory control signals. Focusing solely on inventory efficiency or failures is insufficient for adoption decisions; alignment with environmental factors is crucial. This review integrates inventory control and technology adoption, examining how inventory outcomes influence technology adoption in SMEs, especially in developing countries. It explores how feedback loops and connectivity among work, social, and technical components promote digitalization despite limited resources. Inventory discrepancies are common when control mechanisms are poor. This system approach explains the gradual adoption of technology among Cameroonian SMEs. The findings offer insights into the gradual adoption of inventory control tools in resource-limited contexts like Cameroon. To enhance adoption, firms must adopt a systemic approach that addresses challenges such as initial costs, skilled personnel, and infrastructure. Success requires aligning technology with the socio-technical needs of the SME ecosystem.

Recommendations

SME owners and managers can invest in low-cost inventory practices, like regular stock audits and ABC analysis, to build discipline and free up capital. Over time, they can explore affordable inventory systems, such as mobile apps or cloud spreadsheets, and invest in structured inventory tools if performance improves. To address staff digital literacy concerns, the organization can invest in foundational programs to increase readiness and reduce resistance to future technological changes.

Policymakers should reduce some SME taxes and subsidize firms that are interested in or have structured inventory processes. Infrastructure is a major adoption barrier, policymakers should invest in internet and energy infrastructure, especially in industrial hubs with dense SME populations. They should also raise awareness through TV, radio, and social media, focusing on the benefits of structured inventory systems for SMEs. To motivate SME owners and managers, they can showcase a local case.

Future research should rigorously test claims using quantitative and mixed methods approaches. The conceptual framework's relationships need empirical validation. The longitudinal dynamics of technology adoption in SMEs, especially in developing countries, should be examined, such as their transition from manual to improved inventory systems and the role of organizational learning. Investigating how emerging technologies such as AI and IoT benefit SMEs in resource-constrained settings, with a focus on scalability and sustainability, will enhance existing knowledge.

CRediT authorship contribution statement

G. A: Conceptualization, Methodology, Investigation, Data curation, Writing – original draft, Writing – review & editing. A. A: Conceptualization, Supervision, Validation, Writing – review & editing.

AI Assistance Declaration

The authors used AI tools for this paper. ChatGPT helped with the initial structure and organization. Thereafter, the authors created, checked, and improved all the main content using their knowledge and academic sources. Scite AI and PaperPal helped with citations and references. Grammarly and Paperpal were used for language, grammar, and consistency checks. The authors checked and edited all AI outputs to ensure they were accurate and original and met academic standards. The authors take full responsibility for the content of the paper.

Conflict of Interest

The authors have declared no conflicts of interest and did not receive any outside support for this study.

Acknowledgement

The authors sincerely thank all individuals who participated directly or indirectly in making this manuscript a reality.

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