An Investigation of Responsiveness Impact on Productivity Improvement in Indian MSME

Abstract

The micro, small and medium enterprises (MSMEs) have a sizeable role to play in the growth of any nation. In spite of its essence in the socioeconomic progress of the nation, Indian MSMEs have to encounter big challenges in their endeavor to be competitive. Low productivity is also a challenge for the management for Indian MSMEs to sustain competition in the world market. Productivity improvement of MSMEs depends on different factors. Responsiveness of a production system is one of the major factors among them. In this paper an attempt has been made to investigate the order fulfillment strategies of Indian MSMEs with an objective to determine whether responsiveness aspects of the firms practices would affect their productivity and hence performance in terms of profits and being competitive. This investigation is based on the study of production practices adopted by North Indian MSMEs in different manufacturing sectors, like automobile components, leather products and electrical goods. In the current competitive environment enterprises must become more responsive to acquire advantages or to avoid being driven out of the market.