An empirical investigation of effect of sustainable and smart supply practices on improving the supply chain organizational performance in SMEs in India

Abstract

Implementing sustainable and smart supply chain practices have a great impact on the performance of an organization. In today’s globalized and highly industrialized world, sustainability is recognized as one of the highest priorities of all organizations. Evolution of internet-based technologies, digital platforms and big data analytics have paved the way for redesigning supply chains to be smart, agile, and resilient. Therefore, the implementation of practices related to these two concepts is found to improve the supply chain related organizational performance. This research aims to investigate empirically the impact of these two practices on improving the supply chain organizational performance in the Small and Medium Enterprises (SMEs) of India. This research considered the dimensions and the variables related to sustainable supply chain and smart supply chain practices in SMEs in India which were not considered in research contributions prior to this. Therefore, this research becomes a unique contribution to the existing body of knowledge. Empirical analysis was carried out on data from 92 SMEs from Telangana State in India, collected using a questionnaire. The directory of SMEs of Government of Telanagana, India was used to select the cluster sample of SMEs as respondents, based on a criterion using exploratory research methodology. SPSS software was used to test the model. Regression and ANOVA were used for this purpose. Findings of this research reveal significant influence of sustainable and smart supply chain (SC) practices on improving SC organizational performance. Additionally, individually each of these practices also have a direct influence on the performance of SMEs. Obtaining responses from the representatives of SMEs was a challenge and limitation of this research while expanding the scope of this research to different geographical regions and clusters will be a topic for further research. The outcomes and results of this research provide significant contribution to the existing body of knowledge by filling the gaps and value-adding to the researchers, academicians, students, policy makers and industry practitioners.