Factors related to supply chain network members in SMEs

Abstract

Purpose

The purpose of this paper is to give a clear picture of the evidence for small and medium enterprises of what the key factors are affecting the performance of supply chain members (SCMs) and their impact.

Design/methodology/approach

The authors conducted a survey of small and medium automotive enterprises. After a comprehensive search of the literature on effective factors requirements of supply chain actors (supplier, manufacturer, inventory, distribution, and information flow) 23 factors were identified, and collected data were analysed using SPSS software.

Findings

The results show that among the 23 factors, the inventory level is the most significant factor for inventory with the highest percentage (91 per cent). This is followed by productivity to fill the order (88 per cent) and lead time of manufacturing (86 per cent) for manufacturer, and transportation flexibility (84 per cent) for distribution section.

Research limitations/implications

Study limitation was that only the companies related to automotive sector were selected, and the number of usable questionnaires was fairly small.

Practical implications

The results can help further by introducing a much better perception of effective factors that result in optimizing the practices of supply chain management techniques in order to enhance business performance. The findings also help build a new initiative to be performed by top management when attempting to strengthen partnership and integration among members.

Originality/value

This research draws from institutional theory to contribute to the growing body of practical field and conceptual literature on supply chain integration and provides knowledge in assisting small- and medium-sized enterprises to clarify factors that affect SCMs in order to enhance and manage their operational processes.

Citation

Awheda, A., Ab Rahman, M.N., Ramli, R. and Arshad, H. (2016), "Factors related to supply chain network members in SMEs", Journal of Manufacturing Technology Management, Vol. 27 No. 2, pp. 312-335. https://doi.org/10.1108/JMTM-01-2015-0005