Indian MSME Research Articles

Navigating the Global Marketplace: Indian MSME Integration into Global Supply Chains - Policy Opportunities and Challenges

This study examines the challenges and opportunities that are in the process of incorporating Indian Micro, Small & Medium Enterprises into Global Value Chains. While such GVC participation is likely to enhance the competitiveness of the MSMEs, back economic development, and enhance innovation, effective such integration has several hurdles. Such barriers include lack of technological and financial resources, inadequate skills, regulatory issues, and fair trade and sustainability concerns. The proposed and discussed in this paper challenges includes: gap assessment, recommendations formulation, and legal implementation where more focus is place on Indian traits. These recommendations relate to improving the enabling framework, promoting technological upgrading and innovation, raising skills and human capital, and facilitating GVC participation that is more equitable and environmentally friendly. By focusing on interventions in the above mentioned areas, the Indian policy makers will be able to put in place measures that will foster growth in Indian MSMEs in the global economy which in turn will support broader and more robust economic growth. The research also addresses the questions about the nature of the individual policy measures that are needed, specifics related to sectors, the role of geography, digitalization, and GVC in economic regionalization and growth, etc

India’s MSME Sector : A Comprehensive Review of Challenges and Opportunities

The primary goal of this study is to present the status of Indian MSME and analyze its challenges and opportunities, and provide solution regarding it. In order to do this, data were collected from secondary sources and analyze the growth in output, employment, investment, and number of registered units. Data presented in terms of table, pie-chart. Despite this, financial, marketing, technical, infrastructure, human resources and external constraints continue to be the main factors affecting the performance of MSME in India. Given this, we recommend that government and non-governmental organization should regularly organize seminars, awareness campaigns, marketing campaigns and other initiative that are examined in studies, among other things.

Exploring the Indian MSME perspective on integrating AI-enabled solutions in the recruitment process: an analytical hierarchy (AHP) approach

Exploring the Indian MSME perspective on integrating AI-enabled solutions in the recruitment process: an analytical hierarchy (AHP) approach

Exploring the Indian MSME perspective on integrating AI-enabled solutions in the recruitment process: an analytical hierarchy (AHP) approach

Exploring the Indian MSME perspective on integrating AI-enabled solutions in the recruitment process: an analytical hierarchy (AHP) approach

The road to innovation: exploring key factors driving open innovation in Indian MSME IT and ITES companies

The road to innovation: exploring key factors driving open innovation in Indian MSME IT and ITES companies

The road to innovation: exploring key factors driving open innovation in Indian MSME IT and ITES companies

The road to innovation: exploring key factors driving open innovation in Indian MSME IT and ITES companies

Application of Machine Learning algorithms in Supply Chain Disruption Management: An Indian MSME Perspective

Application of Machine Learning algorithms in Supply Chain Disruption Management: An Indian MSME Perspective

Covid-19 and Indian MSME Sector- Challenges and Opportunities

Covid-19 and Indian MSME Sector- Challenges and Opportunities

Does crowdsourcing services moderate effect on supply risk management performance in COVID-19 pandemic: evidence from India

ABSTRACT As the COVID-19 pandemic continues to spread, supply chains face challenges requiring significant social distancing measures to ensure that critical goods continue to be shipped to local shops and doorsteps of consumers. In this study, an attempt is being made to understand crowdsourcing’s scope to maintain the social distancing in the hotspot areas where connectivity is imperfect. An internet-based survey using a semi-structured snowball sampling technique has been conducted and a total of 167 responses were received from Indian MSME sector (Micro, Small & Medium Enterprises) i.e., retail and wholesale business. A research framework has been developed considering supplier dependency, customer orientation, and systematic purchasing to measure the retail supply chain risk management (SCRM) performance and understand the moderating role of crowdsourcing on process to provide solutions that concurrently take lesser time while maintaining social distancing. The results revealed that in the pandemic situation, crowdsourcing services moderate the effect on supply risk management performance. Thus, the crowdsourcing strategy can lead to maintain social distancing in the pandemic.

Kai and Zen: Effective Tools for Improving Productivity and Quality: A Case Study of an Indian MSME

Old manufacturing methods have become obsolete and are ineffective in the current era of highly competitive global markets. The customer expectations have seen a dramatic shift in tastes and preferences due to large product availability that keeps on improving with time. Nowadays companies are forced to adopt new manufacturing methods that facilitate growth, notably lean manufacturing tools, and related techniques have seen a positive acceptance worldwide. Furthermore, kaizen is one of the effective tools that are based on the principle of the right use of workers’ potential and capabilities. The present case study is done in an industry engaged in manufacturing child parts which are used in gearbox assembly, transmission, hydraulic lift assembly, etc. for original equipment manufacturers. Henceforth, these issues formed the basis for the current study. Furthermore, a road map was developed that was based on understanding the current manufacturing process, thorough analysis of records, followed by detailed employee interviews. Moreover, this study used a kaizen approach that involved people from the shop floor that lead to many positive suggestions and practical implementation. Finally, this study successfully improved overall product quality and met customer expectations without any major financial investments. The positive findings of this case study saw tangible gains in the form of Withdrawl Nut P252006 additional rework cost reduced from 5.82% to 0.41% and in-house rejection (scrap) cost reduced from 0.84% to 0.03%. Pre Loading Nut P124034 additional rework cost reduced from 5.97% to 0.34% and in-house rejection (scrap) cost from 0.89% to 0.02%.

Impetus on Big Data to Boost Indian MSME Sector and Economy using Cloud Storage

Impetus on Big Data to Boost Indian MSME Sector and Economy using Cloud Storage

Determinants and barriers of implementing lean manufacturing practices in MSMEs: a behavioural reasoning theory perspective

The implementation of lean manufacturing practices (LMPs) in large-scale enterprises is growing globally. However, its implementation in micro-, small- and medium-scale enterprises (MSMEs), particularly in developing countries is still slow. Despite the slow adoption, prior literature has mainly focussed on investigating the motives for the implementation of LMPs in MSMEs. There is an urgent need to investigate both reasons for (RF), i.e. determinants and reason against (RA), i.e. barriers in LMPs adoption. This study attempts to address this gap by utilizing behavioural reasoning theory (BRT) to present a behavioural reasoning perspective of MSME employees on the implementation of LMPs. We investigate the relationships between employee values (VALs), reasons (for and against), attitude (ATT) and behavioural intentions (INTs) towards LMPs implementation. Furthermore, we also analysed the moderating effect of the employee education level on LMPs implementation. The hypotheses are tested through a cross-sectional survey conducted on 299 Indian MSME employees. The analysis is performed using structural equation modelling (SEM). The findings suggest that the variable RF has a significant positive influence on both ATT and INTs. However, RA shows a significant association (negative) only with the ATT but not with the INTs for adopting LMPs. These results provide new insights to MSME managers, policymakers, governments and consultants for understanding the behaviour of MSME employees towards the adoption of LMPs in their enterprises.

Regional Trends in Financing and Growth of Indian MSMEs

The Indian MSME Sector is the major contributor to the national economy providing it resilience to ward off global economic stress and adversities. With around 60 million units of MSME across India, they promote entrepreneurship and boost employment on a large scale. But since Independence, the Small-Scale Industries didn’t get much attention by the Central Government or State Governments. It took almost five decades for the Govt. of India to realize the potential of MSMEs in economic development of the country. The MSMED Act was passed in Parliament in 2006 to enable vibrant growth of Indian MSMEs and separate Ministry of Micro, Small & Medium Enterprises was created. The Reserve Bank of India has acted swiftly to improve the flow of credit to the MSME sector. Banks and NBFCs have come together in a great way to boost formal credit to MSMEs with all such loans qualifying for Priority Sector Lending classification. But still the growth of the MSME sector has not been uniform across different regions of the country. In this paper, we will try to analyze the regional trends in the financing and growth of MSMEs in India. Secondary data available from various Govt. sources are utilized to draw some conclusions regarding the current growth trends of the MSME units. Chi-square tests and correlation analysis are used to quantify the performance parameters of MSMEs. The paper brings out the figures pertaining to growth of MSMEs across rural and urban India. It concludes by emphasizing the need for enhanced growth opportunities for the MSME sector in low-performance states.

Informality and structural change: evidences from microenterprises in India's unorganised manufacturing sector

PurposeThis article analyses the structural change in microenterprises located at India's unorganised manufacturing sector in terms of output mix, choice of technique and productivity during the last few decades.Design/methodology/approachBased on data collected from a quinquennial survey of unorganised firms, this study attempts productivity analysis by using the growth accounting technique.FindingsThe paper finds that there is a significant structural change which has occurred in the small firm sector in Indian manufacturing. The share of capital-intensive industries has increased substantially in recent years. Further, though small firms are more labour intensive, the labour productivity and total productivity of these firms are very low. The falling labour productivity and rising capital intensity indicates replacement of labour with capital in Indian small firm sector.Practical implicationsLow productivity of the sector is a cause for concern and this needs to be addressed by making the sector more competitive in the world market. To achieve this, policies should be designed so that small firms reach the efficient scale of production.Originality/valueThis is the first paper which examines structural changes in the Indian MSME sector. The findings have strong implications for creation of a viable ecosystem of entrepreneurship in the country.

What About India's MSME Sector: COVID-19 Pandemic and Indian MSME Sector Outlook

This paper talks about impact of COVID-19 induced triple crisis (supply chain, demand chain and labor disruption) on India's Micro, Small, and Medium Enterprises, which is one of the key driver of Indian Economy. MSME's are the backbone of the economy employing more than 11.10 crore workers in non-agricultural activities across country, and accounts for about half of India's exports. On the background of health emergency, the MSME units are in a distressing situation as severely constrained demand has contracted their revenue. The pandemic further exacerbate myriad of problems to the sensitive MSME sector as their liquidity comes from daily demand for their product, and they don't have huge cash reserves. With sustainability of MSMEs at stake the prospects of economic development of India presents a very gloomy picture considering MSMEs contribute about 30-35% to the GDP. Their closure could lead to a structural problem in economy while widening the inequality gap. The aim of study is to assess the impact of demand, supply and liquidity shock inflicted by corona virus on India’s fragile MSME sector while suggesting recovery measures to the government.

Determinants of E- Commerce in Indian MSME Sector

The use of electronic commerce (e-commerce) in business transactions, now a priority for many firms, is attracting increasing attention. As the world economy integrates and reduces its trade barriers, some of the greatest opportunities for small businesses will derive from their ability to participate in regional and international markets. Adopting information and communications technology (ICT) is considered a means of enabling small businesses to compete globally through improved efficiency and closer customer and supplier relationships. Information and communications technology may also help small and medium sized enterprises (SMEs) enhance their competitiveness. Electronic commerce (e-commerce) is widening the concept of business from a simple transactional approach to a broader and more complex concept of inter-firm co-operation. Amidst market globalization, growing interpenetration of national economies and the increased interdependence of national economies, e-commerce adoption remains a vital yet complex and elusive phenomenon, with very little known about its determinants. This study identifies the major determining factors in Indian small and medium sized enterprises’ (SMEs) e-commerce adoption, offers practical implications, and indicates the actions required. This research integrates technological, organizational, and environmental determinisms with social constructivism to build a practical framework for understanding e-commerce adoption among SMEs in India . Structural equation modeling was employed for data analysis.

Understanding the Recruitment and Selection Practices of an Indian IT SME (Small and Medium Enterprise)

Recruitment and Selection is the major function of the HR department besides the other functions, it is the solution to not only hatch the talent for a sector or any organization that is moving with an exponential pace, but also to provide quality employees for any organization, this article is a case study about the recruitment and selection process in an Indian IT MSME. The company was already facing some issues like pending projects and subsequently other problems sprouting because of that to which the only solution,that is, resolve all these issues was Recruitment and Selection. As a matter of fact this was being followed by the company as daily chores, in-parallel with the problems. The purpose of this study was to understand each step of the process in-order to get some in-sights out of it.

Impact of GST on MSMEs

MSME play a vital in the economical progress of the Countries, so the implementation of GST has had an immense outcome on the continued existence in the market. Some enterprises found it helpful however majority visage problem in adopting it. For existing enterprises, GST simplified the tax structure, unified the market thus improved among all operational efficiencies of MSME, to this point the unorganized MSMEs were growing quick than the organized ones as a result of the minimization, with GST in effect, it has made the taxation system transparent thus making the entities liable for tax payment. This paper brought out issues and challenges experienced by MSME Entrepreneur. In order to find out the impact on various aspect such as applying of GST, created the registration for taxation and High Compliance burden by using Cluster Random Sampling Technique in which 158 MSME Entrepreneur were selected in Sivaganga District in Tamil Nadu for the study. The statistical tools used for the analysis is one-way ANOVA. ANOVA is used to identify the significance of the difference in the levels of impact of GST among MSMEs. It was concluded that the impact of GST on the Indian MSME sector can go both positive and negative ways

Quality improvement in manufacturing process through six sigma: A case study of Indian MSME firm

Manufacturing sector is instrumental in driving economic growth of a country. With a vision for India to be a global manufacturing hub, boost the economic development and create ample employment opportunities, the Government of India has taken several steps in the past few years to strengthen the manufacturing capabilities in the country. Besides strengthening the logistic and supply chain infrastructure there is a need to build on the global quality standards and innovation culture for right positioning of Indian produce in the global supply chains. With the support of the Government initiatives, several manufacturing organizations are encouraged to focus on improving the quality of their products and processes. However, MSME organisations had to face several challenges such as limited skills, resources, awareness and lower acceptance of quality management initiatives that limit their scope of quality focus. This study discusses the implementation of a Six Sigma quality improvement project in an Indian MSME organization involved in the production of portable amplifier systems with an aim to reduce the repairs and rejections. The study provides a systematic roadmap for implementation of quality improvement projects in small scale manufacturing processes. We also illustrate an effective multi-criteria defect prioritization analysis based of Fuzzy-AHP methodology to identify the key defects to prioritize the improvement efforts. Compared to the frequency based prioritization as discussed in the literature, the proposed method prioritizes the key defect considering attributes critical to customers as well as to the manufacturer. The study also illustrates application of several quality management techniques such as cause and effect analysis, current reality tree, SIPOC analysis, and quality control charts in the DMAIC stages.

Sustainable Finance in Emerging Markets: A Venture Capital Investment Decision Dilemma

This case is crafted to highlight the dilemma faced by two senior executives of Softbank Asia Infrastructure Fund (SAIF) Partners. It showcases their approach towards an impact investment and an analysis of the same, keeping in perspective the uncertainty in an impact investment resulting due to Indian government regulatory provisions. Lack of standardized tools in measuring impact investment returns hinders the commercial funds to assess the true implications of an impact investment. Sustainable finance is directed towards benefiting both client and society by integrating environmental, social and governance (ESG) criteria, either in a business practice or in an investment decision. Investing in an MSME lending enterprise has elements of impact investment in it and is best catered by sustainable funds and not commercial funds. Impact investment, sustainable funds and microfinance are some of the typical activities falling under sustainable finance. SAIF Partners is evaluating an opportunity to invest in an Indian MSME lending enterprise. The key concern is, can commercial funds like SAIF Partners see matching return opportunities in an impact investment? This case provokes the target audience to examine the nature of social impact investments and the nuances in aligning the same with the objectives of commercial investments.