Critical success factors for implementation of supply chain management in Indian small and medium enterprises and their impact on performance

Abstract

Globalization of the economy, e-business, and introduction of new technologies pose new challenges to all organizations especially for small and medium enterprises (SMEs). In this scenario, successful implementation of supply chain management (SCM) can give SMEs an edge over their competitors. However, SMEs in India and other developing countries face problems in SCM implementation due to lack of resources and direction. Against this backdrop, this paper identified 13 critical success factors (CSFs) for implementation of SCM in SMEs and studied their impact on performance of Indian SMEs. Top management commitment, long–term vision, focus on core strengths, devoted resources for supply chain, and development of effective SCM strategy emerged as the most pertinent CSFs. To measure improvement in performance, the authors considered different measures related to customer service and satisfaction, innovation and growth, financial performance, and internal business. Results are analysed by testing research propositions using standard statistical tools.