Strategic issues in supply chain management of Indian SMEs due to globalization: an empirical study

Abstract

PurposeIn globalized market, organizations of all sizes are having huge opportunities for growth. However, due to various resource constraints, it has become challenging for small and medium enterprises (SMEs) of growing economies to survive in this global competition. Effective supply chain management (SCM) can be a major driving factor for success of Indian SMEs in dynamic world economy. SMEs face many operational challenges while implementing effective SCM. The purpose of this paper is to study different strategic issues for successful implementation of SCM in Indian SMEs.Design/methodology/approachA survey has been conducted in Indian SMEs of different sectors. Major constructs of survey instrument are motivations, hindrances, investment priorities, supply chain practices and performance. In total, 1,500 Indian SMEs have been approached for collecting response through survey instrument. 257 complete responses were finalized. Statistical analysis of data acquired from survey is performed by using SPSS software.FindingsIt is observed that managing customers, organization resources, and inventory are main SCM practices. Major investment areas are systems for developing quick response and quality management. Currently, human resource and knowledge management have been found to be less priority areas for SMEs. The major focus of Indian SMEs is on cost and lead time reduction by having effective SCM.Originality/valueNovelty of this study is that strategic issues for effective SCM in context to Indian SMEs have been analyzed. The findings of the study will help Indian SMEs in doing strategic planning for being competitive in the global market.