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Article
Publication date: 24 December 2020

Aswin Alora and Mukesh Kumar Barua

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely…

Abstract

Purpose

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to developed nations and large companies. Therefore, this study aims to analyze the impact of supply chain disruption on small companies in the context of an emerging nation. Further, an attempt has been made to classify supply chain disruptions and measure its impact by its type.

Design/methodology/approach

In this research, the event study on 335 supply chain disruption events for a 10 year period starting from 2009 to 2019 has been used.

Findings

The results state that the Indian small and medium companies lost −4.49% of shareholder wealth in disruption. The findings also indicate that the financial and environmental disruptions can have severe effect on shareholder wealth as compared to other category.

Research limitations/implications

The study is confined to a developing country. Considering multiple countries can provide comparative results and therefore a global consensus could be achieved.

Practical implications

The outcomes of the results help managers to plan and prioritize supply chain disruptions, regulatory authorities can plug any possible insider trading practices for small companies in the event of supply chain disruptions. Investors can plan and take prudent investing decisions based on the nature of the disruptions.

Originality/value

To the best of the knowledge, this is the first study measuring the supply chain disruption effects on smaller companies in an emerging nation. The study is also novel in incorporating financial disruptions and measuring source wise impact on shareholder wealth.

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Article
Publication date: 31 December 2020

Aswin Alora and Mukesh K. Barua

The purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a…

Abstract

Purpose

The purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive supply chain risk index.

Design/methodology/approach

Primary data has been collected from 354 Indian micro small and medium enterprises on the different supply chain risks faced by them. An extensive literature review followed by expert's interview has been carried out in order to finalize the supply chain risks. A hybrid methodology consists of AHP and Fuzzy TOPSIS is applied for the data analysis. A sensitivity analysis has been done to check the robustness and consistency of the results.

Findings

Results depict the importance of supply side and financial side risks faced by manufacturing supply chains, thus adding to the ongoing academic debate on the importance of supply chain finance solutions.

Research limitations/implications

Study is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains.

Practical implications

Supply chain managers can consider the benchmark framed in this study in order to identify the health of their supply chain and to efficiently employ supply chain risk management strategies.

Originality/value

The current study is novel in developing a supply chain risk index using a hybrid AHP-Fuzzy TOPSIS methodology with a comprehensive list of 26 supply chain risks under 5 categories for an MSME supply chain. To the best of the authors’ knowledge, this is the first study incorporating financial risks in the development of a supply chain risk index.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

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Article
Publication date: 11 June 2019

Aswin Alora and Mukesh K. Barua

Companies all over the world have recently started to adopt supply chain finance (SCF) solutions in their supply chains to reduce the payment defaults and simplify the…

Abstract

Purpose

Companies all over the world have recently started to adopt supply chain finance (SCF) solutions in their supply chains to reduce the payment defaults and simplify the bill settlement process. The purpose of this paper is to identify and prioritize the barriers to adopting SCF in micro, small and medium enterprises.

Design/methodology/approach

It employs a three-phase methodology to identify and prioritize the essential barriers to the implementation of SCF. An extensive survey has been carried out in 101 Indian MSMEs in India which identified 37 barriers under six heads in the first phase. Experts’ interview using the Delphi technique has been carried out in the second phase to finalize the barriers. The analytic hierarchy process methodology, with sensitivity analysis for validation, is used in the final stage to prioritize and rank the barriers.

Findings

Results show that financial and information technology barriers are prominent in SCF adoption followed by financial challenges. Among specific barriers, the disclosure of sensitive company information to competitor barrier acts as an essential barrier followed by poor technological capability of MSMEs.

Research limitations/implications

The study is limited to SCF adoption of MSMEs in a developing nation. Extensive research is required in order to derive a global trend.

Practical implications

The current research contributes to the stakeholder theory and transaction cost economics. Observations made in the current research can encourage organizations to incorporate stakeholders’ concerns into the adoption of SCF solutions. The study provides a more in-depth view of such challenges and a benchmark, which will help companies to adopt SCF solutions more effortlessly. Moreover, policy makers across the world can explore these serious issues and amend or introduce new policies to facilitate companies’ implementation of supply chain financial solutions.

Originality/value

To the best of the authors’ knowledge, this is the first study which identified and prioritized SCF adoption barriers of MSMEs in a developing nation. This study is also novel in adopting a hybrid analytical hierarchy process-sensitivity analysis for ranking the SCF barriers in an MSME context. SCF studies often emphasize only on the reverse factoring aspect of SCF. The current study considers many innovative aspects of SCF, such as pre-shipment financing, dynamic discounting, inventory financing, collaborative logistics, etc.

Details

Benchmarking: An International Journal, vol. 26 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

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