Strategy development by Indian SMEs for improving coordination in supply chain: An empirical study

Abstract

Purpose

The purpose of this paper is to study the strategy development by small and medium enterprises (SMEs) for improving coordination in supply chain in Indian perspective. Globalization and liberalization of the world economy has leveled the field for all competitors around the globe. To face global competition successfully, SMEs have to break isolation of their suppliers and other entities in the supply chain.

Design/methodology/approach

For collecting data, a question-based survey was conducted. In total, 251 valid responses were received. Statistical analysis of data acquired from survey is done by one sample t-test, correlation and regression analysis.

Findings

Uncertainty of customer order/demand, insufficient knowledge of supply chain management (SCM) and involvement of middlemen in supply chain are the main problems faced by Indian SMEs during implementation of SCM. Quality improvements, delivery on time and cost reduction are the major priorities while forming supply chain strategies. Coordination strategies are positively correlated with business performances.

Research limitations/implications

Major implication is that SMEs should develop their strategies effectively after analyzing business environment and future plans. While developing strategies for improving coordination in supply chain of SMEs, they should give due importance to problems and risks they face. However, it is felt that this study can be further explored by considering other aspects of strategy development such as human resource, organization culture, etc.

Originality/value

Finding and issues of the paper will be highly useful for SMEs in framing their strategies for improving coordination in supply chain, and academia for further research in the context of changing market scenario.

Citation

Kumar, R., K. Singh, R. and Shankar, R. (2014), "Strategy development by Indian SMEs for improving coordination in supply chain: An empirical study", Competitiveness Review, Vol. 24 No. 5, pp. 414-432. https://doi.org/10.1108/CR-06-2012-0016