Managing micro and small enterprise supply chains: A multi-level approach to sustainability, resilience and regional development

Abstract

Amidst the high number of frameworks associated with supply chain sustainability (SCS), proper consideration to the role and importance of micro and small enterprises (MSEs) has been missing in the literature. To address this research gap, this paper investigates the driving factors that support MSE supply chains to achieve sustainability. We employ institutional and complexity theories to broaden our understanding of the dynamics behind neglected supply chain structures, especially the ones predominantly formed by MSEs. An in-depth nested case study is carried out in a MSE supply chain in an emerging economy, where 33 supply chain players were involved in the data collection. Using a combination of deductive and inductive approaches to analyze the data, we find that to truly implement SCS, research and practice should consider not only the strategic, structural and process levels, but also the contextual level, which is critical dimension to SCS dynamics. Results show that MSE supply chains contribute significantly to regional socio-economic development due to their local roots and regional history. Also, findings demonstrate that MSE supply chains have enhanced resilience to crises (e.g., economic, political and other disruptions) because they are often focused on long-standing economic activities within the regional ecosystems. This paper contributes to theory by arguing that SCS is a much more complex phenomenon in practice than the current theory implies. Therefore, incorporating the diversity from reality and the peculiarities of MSE supply chains into the SCS debate helps the literature to get closer to the SCS practice.