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Coordination and responsiveness issues in SME supply chains: a review

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  • Management Development Institute Gurgaon, India

Abstract

Purpose Globalization and liberalization of the world economy have leveled the field for all competitors across the globe. To face global competition successfully, SMEs have to break their isolation in the value chain. To overcome the dynamic challenges of the market, supply chain management can be an important tool for SMEs. The purpose of this paper is to synthesize different issues related to the coordination and responsiveness of supply chain management in SMEs, through a review of the literature. Design/methodology/approach In all, 116 research papers, mainly from referred international journals, are reviewed to identify the thrust areas of research. On the basis of the review, gaps are identified and a research agenda is proposed. Findings It is observed from the review that SMEs have not been very proactive in implementing supply chain management. These organizations face a lot of problems in coordinating their operations with other members of the supply chain. They are localized in functioning. On export fronts SMEs face many constraints due to lack of resources and poor innovative capabilities. To face the challenges of open global market, SMEs have to manage their problems and supply chain risks effectively. Research gaps are identified in different areas of the supply chain such as coordination and responsiveness issues, service quality issues, and performance benchmarking for future directions of research. Originality/value This paper explores the major areas for research on coordination and responsiveness of SME supply chains. The findings of the paper will be highly useful for the researchers to decide the direction of their research.
Benchmarking: An International Journal
Coordination and responsiveness issues in SMEs supply chains: a review
Ravinder Kumar Rajesh Kumar Singh
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To cite this document:
Ravinder Kumar Rajesh Kumar Singh , (2017)," Coordination and responsiveness issues in SMEs supply chains: a review ",
Benchmarking: An International Journal, Vol. 24 Iss 3 pp. -
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http://dx.doi.org/10.1108/BIJ-03-2016-0041
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Coordination and responsiveness issues in SMEs supply
chains: a review
1. Introduction
In all countries small and medium enterprises are considered as backbone of economic
growth.
They contribute in providing job opportunities, act as supplier of goods and services
to large organizations. Majority of SMEs have simple systems and procedures, which allows
flexibility, immediate feedback, short decision-making chain, better understanding and
quicker response to customer needs than larger organizations (Singh et al., 2008). Tambunan
(2011) have observed that SMEs have been the main player in domestic economic activities
as they account for more than 99.9 percent of all firms and employ 96.2 percent of the
Indonesian workforce. In spite of these significant characteristics of SMEs, they have not got
due support from government and are on tremendous pressure to sustain their
competitiveness in domestic as well as global markets. Effective coordination strategies may
help in managing inter-dependencies and reducing uncertainties. Soroor et al. (2009) have
observed that supply chain coordination strategy plays a critical role in integrating different
actors along the supply chain to enhance performance. Singh (2015) observed that top
management commitment, strategy development, resource development, use of technology,
risk and reward sharing are major drivers for responsive SC.
This study will try to synthesize different issues related with the coordination and
responsiveness of supply chain management in SMEs, through review of literature. Further
authors try to identify the directions for future research in this area. Remaining part of this
study is as follows. In section 2 review methodology and classification of different issues
have been discussed. Different coordination and responsiveness issues of supply chain
management like problems and risks for SMEs in supply chain (Section 2.2.1), priorities for
forming supply chain strategies (Section 2.2.2), coordination of supply chain (Section 2.2.3),
responsiveness of supply chain (Section 2.2.4) and performance analysis of SMEs in supply
chain (Section 2.2.5) have been discussed. In section 3 authors have discussed the research
gaps and concluding remarks.
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2. Review Methodology and Classification of different issues
To face challenges and to avail benefits of globalization, SMEs must have effective
coordination and responsiveness strategies to make a proper balance among all supply chain
members.
2.1 Sources and search methods
In order to systematically review the literature related to coordination and responsiveness of
SCM in SMEs, our first step is to develop a framework for including papers in this review
based study. To find the literature related to framework issues, the database mainly from
Science Direct, Emerald, Taylor and Francis, Sage and Inderscience publications have been
searched. Year wise selection of paper for review is shown in Figure 1.
<Please Insert Figure 1.Here>
On Science Direct an initial search of keyword “SCM in SMEs” revealed that there were
about 361 articles. The key word search was subsequently changed to the phrase, ‘‘Supply
Chain Management in SMEs”. This search revealed 3367 articles (as on Dec., 2015). The key
word search was subsequently limited to the exact phrase, ‘‘Coordination and
Responsiveness issues of Supply Chain Management in SMEs”. This particular search
revealed 288 articles. On Emerald an initial search of keyword “SCM in SMEs” revealed that
there were about 235 articles. The key word search was subsequently changed to the phrase,
‘‘Supply Chain Management in SMEs”. This search revealed 1971 articles (as of Dec.,
2015). The key word search was subsequently limited to the exact phrase, ‘‘Coordination and
Responsiveness issues in SMEs of Supply Chain”. This particular search revealed 193
articles. Similar approach was followed for other sources to identify the papers. To
comprehend the evolution of the multilevel concept in recent times, search was limited to
Year 2000 onward publications. The aim of the review was to capture a snapshot of the
diversity of research being conducted on coordination and responsiveness of SCM in SMEs.
In this regard one hundred and sixteen research papers were reviewed.
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<Please Insert Figure 2 Here>
To make the review multi perspective, papers were sorted out from fifty two journals. Details
of name of journals with number of papers selected have been given in Table 1.
<Please Insert Table 1 Here>
Control over quality was achieved by limiting the search to peer-reviewed publications &
conferences. Research papers from different sectors (Figure 2) and countries (Figure 3) are
selected on different issues as specified in framework.
<Please Insert Figure 3.Here>
According to Duriau et al., (2007) by involving several researchers into content analysis,
validity and reliability of (literature) sampling and data analysis may be broadly enhanced.
Therefore Reliability and content analysis was also done for all major issues included in this
study by involving researchers in this area and it was found beyond satisfactory limit.
2.2 Framework of Literature Review
Different coordination and responsiveness issues of SCM in context of SMEs are selected for
analysis from literature. Criteria for selecting these issues are mainly literature availability
and experts’ opinion in selecting these issues. These issues are problems and risks for SMEs
in supply chain, priorities for forming supply chain strategies, coordination and
responsiveness of supply chain, and finally performance analysis of SMEs in supply chain.
Based on literature review and experts opinion, authors have finalized a framework for study
as shown in Figure 4. This framework is adopted from study made by Kumar et al. (2014). It
explains that problems and risks help in setting priorities for SC (Supply Chain) strategies.
Priorities for SC strategies further leads to better coordination and responsiveness strategies
and finally improved performance. Figure 5 shows the no. of papers selected from literature
(percentage) on different issues of current framework.
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<Please Insert Figure 4. Here>
2.2.1 Problems and risks for SMEs in supply chain
SMEs face different problems and risk while working in supply chain. SMEs face different
pressures such as price reduction, improvement in product quality and features (Corbett and
Campbell-Hunt, 2002). SMEs faces different challenges like up gradation of technology
(Kleindl, 2000), human resource development (Hudson et al., 2001), new product
development (Sonia and Francisca, 2005). Managing collaboration with customers, suppliers,
distributors and other consulting firms is also a challenge for SMEs (Soh and Roberts, 2005;
Bennett and O’ Kane, 2006). Vos (2005) has found that managers of SMEs have constraints
due to the scarcity of resources, flat organizational structure, lack of technical expertise,
paucity of innovation, occurrence of knowledge loss, etc. Sener et al. (2014) observed that
financing obstacles in small firms are reported to have almost twice the effect as obstacles in
large firms. Inadequate technologies and limitation of resources are the main problems SMEs
faces while meeting the challenges of global competition (Kumar and Routroy, 2014; Loader,
2015). Faisal et al. (2007) observed that there are barrier to risk management in supply chain
of SMEs. Johnson (2001) stated that supply chain is exposed to market risks like seasonality,
volatility of fads, new product adoptions, and short product life. Gill and Biger (2012)
observed that lack of financing, market challenges, and regulatory issues are perceived as
barriers to small business growth in Canada. Ramanathan et al. (2011) stated that the
collaborating members in the supply chain are not able to visualize all possible benefits
of collaboration. However, measuring the benefits of collaboration is still a big
challenge.
Punniyamoorthy et al. (2013) classified over all supply chain risks in six categories such as
supply side risk, manufacturing side risk, demand side risk, logistics risk, environment risk
and information risk. Sharma and Routroy (2016) observed that risk factors such as
information security, information leakages and reluctance toward information sharing
have influence on a company’s revenue. Kumar et al. (2014) observed that uncertainty of
customer order/demand, insufficient knowledge of SCM and involvement of middlemen in
supply chains are the main problems. Fluctuating prices of raw materials, sharing of sensitive
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information and seasonality of demand are main risks which SMEs feel while working in
supply chain (Singh et al., 2012). Baporikar et al. (2016) observed that access to finance,
appropriate marketing strategies, lack of skilled manpower and poor customer service
hinder Nambian SMEs business growth.
<Please Insert Figure 5. Here>
2.2.2 Priorities for forming supply chain strategies
SMEs need to develop effective SCM strategies to excel in global competition. Developing
countries’ SMEs adopt followers’ strategy to achieve financial and non-financial
performance while developed countries’ SMEs adopted innovative strategy and customer-
oriented strategy (Syed and Kamel, 2014). Soni and Kodali (2011) observed that strategic
planning is required for competitiveness and supply chain management in Indian
manufacturing industries. Singh et al. (2008) have observed that SMEs have to benchmark
their assets, processes and performance with the best in industry for sustaining
competitiveness. According to Corbett and Campbell-Hunt (2002), companies should focus
their energy and resources on innovative products and its processes.
Developing country’s organizations faces more difficulties than developed one (Gulsoy et al.,
2013). Gorane and Kant (2016) observed that SC practice like, outsourcing,
information sharing, just in time manufacturing, green supply chain management are
moderately preferred practices, while the practices, like, reverse logistics,
postponement, vendor managed inventory, radio frequency are least preferred
practices in Indian manufacturing organizations. Ciasullo and Troisi (2013) have
observed that ethics and value systems play a significant role in devising sustainable
corporate strategy for SMEs. Kumar et al. (2014) have observed that quality improvements,
delivery on time and cost reduction are the major priorities for SMEs while forming supply
chain strategies. For Indian SMEs of auto sector, top management commitment, long-term
vision for survival and growth, devoted resources for supply chain and development of
effective SCM strategy are the main critical success factors of SC (Kumar et al., 2015).
2.2.3 Coordination of supply chain for SMEs
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Collaboration, information sharing, involvement of suppliers and customers in decision
making will help in better coordination of supply chain. Arshinder et al. (2009) have
observed that coordination may help in managing inter dependencies and reducing
uncertainties. Supply chain coordination relies on the availability of prompt and accurate
information that is visible to all actors in the supply chain (Arshinder et al., 2008).
Collaborative processes include joint decision-making (Stank et al., 2001) and joint-problem-
solving as a natural extension of sharing information among independent supply chain
partners (W. Nix and G. Zacharia, 2014).
Coordination plays a critical role in integrating different departments of an organization
along the supply chain to enhance performance (Soroor et al., 2009 and Sawik, 2009).
Mortensen and Arlbjorn (2012) have stressed on the importance of considering suppliers’
interest and motivation when implementing development initiatives. Ponis et al. (2012)
observed that in clothing SMEs, innovative e-collaboration, new manufacturing and supply
chain practices can improve the competitiveness. Ferreira et al. (2012) have observed that
business collaboration will help partners in the network to build valuable trust, cooperation
and coordination. Mello et al. (2015) observed that both the integration of engineering
and production and the production capability are the most critical factors influencing
coordination in an engineering to order (ETO) supply chain. The ability to effectively
coordinate cross-business activities is essential to avoid delays, cost overruns and
quality problems.
Liu et al. (2013) have observed that operational coordination effects both operational and
business performance. Singh (2013) has observed that top management commitment has
highest importance among strategic factors of coordinated supply chain. Basnet (2013) have
identified three dimensions of integration such as, labeled coordination, communication, and
affective relationship. Kumar et al. (2015) have observed that cost effectiveness, commitment
to quality and on time delivery capability are important factors for selection and evaluation of
suppliers in Indian SMEs. Various coordination issues identified from the literature by
researchers for various SMEs and countries have been tabulated in Table 2.
<Please Insert Table 2 Here>
2.2.4 Responsiveness of supply chain
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To effectively compete in the global market, small scale organizations should focus on
improving the effectiveness of operational functions with coordinated supply chains (Singh
et al., 2010). According to Catalan and Kotzab (2003) responsiveness is the ability to “read”
and understand actual market signals in real time. Goyal (2012) observed that information
systems (ISs) and business operations are closely integrated with each other. Enterprise
resource planning (ERP), electronic data interchange (EDI), and the internet improves
responsiveness of supply chain (Gunasekaran et al., 2008). Francesca et al. (2008) have
stated that availability of point of sales (POS) data is important for a responsive supply chain.
Many technologies such as electronic data interchange (EDI), radio frequency identification
(RFID), and internet marketplaces (Wang et al., 2007; Alamgir, 2014) are more costly and
complex for SMEs. Unlike large enterprises, SMEs do not have sufficient budgets to acquire
tools and platforms necessary to build their own electronic commerce (Taylor et al., 2004).
Ghobakhloo et al. (2011) have stated that adoption of electronic commerce in SMEs depends
on CEO’s innovativeness, information availability, customer/supplier supports, support from
technology vendors and competition. Bhadouria et al. (2011) have observed that enterprise
resource planning (ERP) is commonly used by large firms and these days SMEs are also
implementing ERP systems for bringing in an efficient and coordinated operations. Sahu et
al. (2016) observed that in today’s dynamic business environment there is need for
greater agility in supply chains, which increases both the importance and frequency of
supplier/partner evaluation and benchmarking decision making.
Gunasekaran et al.
(2016) stated that information and communication technologies (ICT) are critical and
valuable resources for the success of global supply chain networks. Internet of things
plays a major role in the twenty-first century global supply chain design, operations
and performance. The evolution and changes in ICT are inevitable due to emerging
organizational performance objectives and the role of ICT.
Chang et al. (2013) have observed that e-procurement can improve partner relationships,
information sharing, supply chain integration and over all supply chain performance.
Moriones et al. (2013) have observed that there is a positive relationship between ICT
adoption and all the measures of perceived performance in SMEs. Kumar et al. (2015) have
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observed that interacting with customers, product design and development and interacting
with suppliers are the preferred area of IT implementation for Indian SMEs. Top
management commitment, strategy development, devoted resources, use of technology, risk
and reward sharing are major drivers for responsive SC (Singh, 2015). Some of research
finding on different issues of responsiveness of SC of SMEs reported by various researchers
are summarized in Table 3.
<Please Insert Table 3 Here>
2.2.5 Performance analysis of SMEs in supply chain
Development of the literature on performance measurements can be divided into two distinct
phases. The first phase relates to the period until the 1980s and concentrated on financial
measures such as profit, return on investment and productivity. The second phase, which
commenced in the late-1980s, corresponds to the emergence of new management concepts
such as SCM (Kaplan and Norton, 1992). Sundram et al. (2016) observed that the
relationship of supply strategic partnership, customer relation management,
information sharing with supply chain performance (SCP) allow managers to
effectively utilize the different components of supply chain management practices
(SCMPs) for supply chain integration (SCI) and performance. The balanced scorecard
approach has four components (Kaplan and Norton, 1992): Financial measures, customer
perspective measures, internal business perspective measures and innovation and learning
perspective measures. Hossain and Kauranen (2016) stated that adopting open
innovation (OI) by SMEs improves their overall innovation performance. Different
issues of performance as reported by various researchers as been summarized in Table 4.
<Please Insert Table 4 Here>
3. Research Gaps and Concluding Remarks
In this study, an attempt has been made by authors to review the literature on the issues
related with coordination and responsiveness of SMEs supply chains (as per framework
shown in Figure 4) in globalised market. In this regard one hundred and sixteen research
papers are reviewed. It is observed that in most of studies researchers have focused on an
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individual issue such as quality management, technology management, competitive priorities,
leadership issues, constraints and challenges in isolation. As discussed earlier coordination
and responsiveness are broad areas and needs holistic approach. On the basis of this
extensive literature review, the following research gaps are identified.
There has been lack of empirical research on strategy development by SMEs for
coordination and responsiveness particularly in developing countries. Most of the
studies are modeling or case studies based.
Even in developed countries, most of the studies related to coordination and
responsiveness have been devoted to large scale enterprises (LSEs), SMEs have not
got equal focus by researchers.
IT applications have been observed as a major driver in supply chain coordination but
studies on successful implementation of IT tools in SMEs are limited.
Limited studies on impact of cultural and service quality issues on supply chain
coordination are found for SMEs as well as for larger organizations.
Most of the studies have considered the relationship of a particular coordination issue
with certain financial parameters only, not with all the issues of performance
simultaneously i.e. holistic approach is lacking.
Lack of dimensions related to coordination and responsiveness in performance
frameworks and strategy formulation for supply chains have been observed.
Impact of uncertainties and unplanned incidents on coordination have been analysed
by very few researchers.
Responsive supply chain can get benefit in terms of inventory management, lead
time reduction and agility but most of the studies not discussed holistically the
responsiveness issue for SMEs.
In different studies from developing countries, holistic approach is lacking on the
effect of problems, risks and strategic priorities of SMEs on improving coordination
& responsiveness in broader aspect.
Information and communication technologies are very vital resources for the
success of global supply chain networks. ITC issues for SMEs need broader
aspect of research.
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Most of the frameworks have not followed holistic approach rather they have focused
on a specific functional area. Current framework will helps SMEs in improving
coordination and responsiveness by focusing on functional areas related to it.
The collaborating members in the supply chain are not able to visualize all
possible benefits of collaboration. However, measuring the benefits of
collaboration is still a big challenge for SMEs. There is need of holistic research
on benefits of collaboration for SMEs of different fields.
Major problems for SMEs in coordination of supply chain as reported by
various researchers are uncertainty of customer order/demand, insufficient
knowledge of SCM and involvement of middlemen in supply chain are the main
problems faced by SMEs.
Major risks for SMEs in coordination of supply chain as reported by various
researchers are fluctuating prices of raw materials, sharing of sensitive
information and seasonality of demand are main risks which Indian SMEs feel
while working in supply chain.
Major emerging areas of research for coordination in SMEs as reported by various
researchers are networking with suppliers & customers, information sharing with all
members, agreed vision & goals of members, supply chain risk/reward sharing,
development of reliable suppliers, follow-up with customers etc. (Table 2) .
Major emerging areas of research for responsiveness in SMEs as reported by various
researchers are information sharing, information system, use of modern technologies
like RFID, EDI, ASNs, etc., forecasting of demand on point of sale (POS), enterprise
resource planning ERP/SCM software etc. (Table 3).
SMEs mainly from manufacturing sectors have been analysed but role of logistic providers
which may be in SMEs categories need to be analysed from coordination perspectives. The
reviewed literature reveals that most of the strategies have been formulated for short-term
goals as most of them are localized in their functioning. Present research has tried to identify
different areas of strategy development by SMEs and existing gaps. On the basis of gaps
identified, further studies need to focus on these emerging areas of research. Findings of the
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11
paper will be mainly limited in context to SMEs and would be highly useful for researchers
to give directions for future research.
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Figure 1.Year wise reviewed papers
Figure 2. Reviewed paper from different sectors
2
3
7 7
3
8
2
7
5
7
3
8
10
14
9 9
12
0
2
4
6
8
10
12
14
16
Brassware cluster
5%
Auto parts
manufacturer
29%
Auto small
assembly
9%
IT firm
12%
Construction
8%
Jwellery
5%
Fashion Industries
6%
Toy industries
13%
Electrical/Electronic
parts
10%
Plastics
3%
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Figure 3.Research papers reviewed based on research from different countries
Figure 4. Framework for Study
Singapore
4%
India
19%
Pakistan
4%
Italy
8%
Canada
12%
Spain
16%
Malaysia
6%
China
8%
US
7%
German
4%
U.K.
8%
Turkey
4%
Problem
s
Risks
Performance
Issues
for SC
Strategies
Coordination
&
Responsiveness
issues
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Figure 5. Numbers of papers (%) on different issues of framework
Priorities while
forming SC
strategies
18%
Problems & risk
in SC
17%
Coordination of
SC
31%
Responsiveness
of SC
26%
Performance
Issues 8%
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Table 1. Distribution of Papers based on Journals
Sr.
No.
Journal Title No. of papers
from each
Journal
1 Global Journal of Flexible Systems Management, Harvard Business Review, Industrial
Marketing Management, International Journal of Productivity & Performance
Management, Journal of Management Studies, Journal of Small Business and
Enterprise Development, Computer and Industrial Engineering an International
Journal, Asia Pacific Journal of Marketing and Logistics, International Journal of
Retail & Distribution Management, Industrial Marketing Management, International
Marketing Review, Journal of Management Development, The TQM Journal,
Organizational Research Methods, International Journal of management and
Enterprise Development, Journal of Universal Computer Science, Management
Research news, International Journal of Quality & Reliability Management, Applied
Mathematic Modeling, California Management Review, Journal of developmental
Entrepreneurship, Journal of Advances in Management Research, IIMB Management
Review, Competitiveness Review, Assembly Automation Journal, International Small
Business Journal, International Journal of Globalisation and Small Business,
International Journal of Manufacturing Research, International Journal of Enterprise
Network Management, IEEE Transactions on Engineering Management, International
Journal of Entrepreneurial Behaviour and Research, Journal of Business and
Industrial Marketing, Electronic Commerce Research and Application, Industrial
Marketing Management, Logistics and Transportation Review, International Journal
of Information Management, Global Business Review, Journal of Strategy and
Management,
Journal of Science and Technology Policy Management.
01 from each
Journal
2 Benchmarking: An International Journal 07
3 Business Process Management Journal 03
4 Industrial Management & Data Systems 07
5 International Journal of Business Information Systems 06
6 International Journal of Logistics Management 05
7 International Journal of Operations & Production Management 07
8 International Journal of Physical Distribution & Logistics Management 03
9 International Journal of Production Economics 02
10 International Journal of Production Research 02
11 Internet research: Electronic Networking Applications and Policy, 02
12 Journal of Business Logistics 02
13 Journal of Enterprise Information Management 05
14 Journal of Operations Management 02
15 Management Research Review 02
16 Measuring Business Excellence 03
17 Omega 02
18 Supply Chain Management: An International Journal 09
19 Technovation 02
20 Journal of Small Business and Enterprise Development 03
21 Journal of Manufacturing Technology Management 02
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Table 2: Different Issues of Coordination of SC for SMEs
S.No. Coordination issues References
1. Networking with suppliers & customers Quayle(2003), Barratt (2004), Sanders and Premus
(2005),Whipple et al.(2010), Ferreira et al.(2012), , Soroor
et al.(2009), Singh (2013), Kumar and Banerjee(2012),
Wiengarten (2013), W. Nix and G. Zacharia (2014).
2. Information sharing with all members
Ponis et al.(2012), Arshinder et al.(2008), Liu et al.(2013),
Stank et al.(2001),, Li et al.(2005),Chao et al.(2015),
William et al. (2016).
3. Agreed vision & goals of members Stank et al.(2001), Huang et al.(2003),Hoyt and Huq
(2000),Singh (2013a), Singh (2013b),
Blackburn et al.
(2013),
Awheda et al. (2016).
4. Supply chain risk/reward sharing
Sandberg (2007), Liu et al.(2013), Simatupang and
Sridharan (2002), Huang et al.(2003), Singh (2013),
Singh(2015), Govindan & Chaudhuri (2016).
5. Development of reliable suppliers Jain et al.(2009),Mortensen and Arlbjorn (2012), Morrissey
and Pittaway (2006), He et al.(2009), Mortensen and
Arlbjorn (2012).
6. Follow-up with customers for feedback Hardy et al. (2003), Singh (2013), Kumar et al. (2014),
Kumar et al. (2015a), Hilmola et al. (2015)
7. Data integration among internal functions
through networking
Arshinder et al.(2009), Soroor et al.(2009), Sawik (2009),
Kumar et al. (2015), Kumar et al. (2016).
8. Supply chain contracts with members Whipple et al.(2010), Power (2005), Basnet (2013), Sener et
al.(2014).
9. Periodic interdepartmental meeting
Soroor et al.(2009),Sawik (2009), Basnet (2013), Kumar et
al.(2014)
10. Reliable logistic system
Lajara & Lillo (2004), Morrissey & Pittaway (2004), Singh
et al.(2012), Thakkar et al.(2008)
11. Development of flexible production
system
Ponis et al.(2012), Wiengarten et al. (2013),Olhager & West
(2002), Arshinder et al.(2007)
12. Implementation of joint replenishment &
forecasting decisions
Simatupang & Sridharan (2002), Ferreira et al.(2012),
Huang et al.(2003), Bianchi & Saleh (2010), Chang et
al.(2013),
Lussier and Sonfield (2015)
13. Integrated inventory management Hardy et al. (2003), Power (2005), Liu et al. (2013), Singh
(2013), Basnet (2013), Kumar et al. (2013)
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Table 3: Different issues of Responsiveness of supply chain
S.No. Responsiveness Issues References
1. Information sharing
Catalan & Kotzab (2003), Mehrjerdi (2009), Taylor (2004),
Singh et al.(2012), Liu et al.(2013), Singh (2013), Moriones et
al.(2013), Singh(2015), William et al. (2016)
2. Information system Jacks et al.(2011), Thakurta & Roy (2012),Singh et al.(2010),
Goyal (2012), Gunasekaran et al.(2008), Kumar et al.(2015),
Peng et al. (2016).
3. Use of modern technologies like
RFID, EDI, ASNs, etc.
Jun and Cai (2003), Gunasekaran et al.(2008), Wang et
al.(2007), Jacks et al.(2011), Azevedo & Carvalho (2012),
Taylors et al.(2004), Garg & Goyal(2011), Evangelista et
al.(2012), Thakurta & Roy (2012), Alamgir (2014), Chao et
al.(2015), William et al. (2016).
4. Forecasting of demand on point of
sale (POS)
Francesca et al.(2008), Chang et al.(2013), Moriones et
al.(2013), Singh (2011)
5. Enterprise resource planning
ERP/SCM software etc.
Petroni (2002), Quayle (2002), Jutla et al.(2002), Wagner et
al.(2003), Muscatello et al. (2003), Buonanno et al. (2005),
Harland (2007), Arshinder et al.(2007), Arshinder et al. (2008),
Thakkar et al.(2008), Gunasekaran et al.(2008), Garg and Goyal
(2011), Ghobakhloo et al. (2011), Bhadouria et al. (2011), Shatat
and Udin (2012), Chang et al. (2013), Moriones et al. (2013),
Chao et al.(2015).
Table 4: Different issues of Performance
S.No. Issues Addressed References
1.
Performance analysis of SMEs in
SC
Customer service & satisfaction,
Innovation & growth perspective,
Financial measures,
Internal business measures
Kaplan and Norton (1992), Sharma et al. (2005), Koh et al.(2007),
Chavan (2009), Taticchi et al. (2012), Franceschini et al. (2013),
Shatat and Udin (2012), Moriones et al. (2013),
Ates et al. (2013),
Blackburn et al. (2013),
Awais and Kamel (2014),Shahin et
al.(2014), Perkins et al. (2014), Kumar et al.(2015), Valmohammadi
and Ahmadi (2015), Kumar et al.(2016), Jorge et al.(2015), Hilmola
et al. (2015), Hossain and Kauranen (2016),
Sundram et al. (2016).
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... Ninth, providing desirable sustainability and innovation in the economy as a whole, being "small but smart" successfully introducing continuous new/improved varieties of products (Mathur, Mittal & Dangayach, 2012;Fida, 2008). Tenth, providing linkages for the attraction of foreign investment, Investing transnational corporations looking for sound domestic suppliers for their supply chains (Kumar, & Singh, 2017;Fida, 2008). ...
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... Page 95 investment, Investing transnational corporations looking for sound domestic suppliers for their supply chains (Kumar, & Singh, 2017;Fida, 2008). ...
... In fact, SMEs accounts for the economic development in most developed economies of the World today. It has helped in the balance of payment position of countries; it reduces over dependence on inputs relative to their capital investment (Kongolo , 2010;Taiwo, Ayodeji & Yusuf, 2012;Levy, 1993;Kumar, & Singh, 2017). ...
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This chapter demonstrates the Implication of the coronavirus (COVID-19) on Small and Medium Enterprises (SMEs) in Nigeria. The main objectives are to show the impact of COVID-19 on SMEs; lay off workers, halt operations, reduction in production, and reduction in sales disruption in the supply chain, and highlight multiple areas of facilitation required for government intervention. Having conducted a questionnaire survey on SMEs in Kano, Nigeria, and collected 238 useable responses, the results of our study show that SMEs have reduced sales; 17% to a considerable extent, 27% to a great extent, and 36% reduced sales in extreme manner; Similarly, the reduction in production, 29% of SMEs reduced production to a great extent, 35% reduced production in an extreme manner while 40% to a considerable extent; the result of the study revealed disruption in supply chain of SMEs, 17% to a considerable extent disruption, 29% to a great extent disruption and 38% in an extreme manner. In addition, the result of the study also shows laid-off workers; 16% of SMEs have moderately laid off workers, 17% to a considerable extent, 21% to a great extent; our findings also show that SMEs halt operations, 17% to a considerable extent, 29% to a great extent and 35% operation has been halted in an extreme manner; while highlighting multiple areas of facilitation required, 61% of enterprises demands financial schemes while 29% solicits special packages. The chapter recommends adequate SME financing, wage support to retain employees, reduction of rental costs and utility bills, and Infrastructure Support among others.
... Cross-border supply chains are growing in size and complexity (Liu, Zhang, and Zhen 2023): they are spreading geographically due to globalisation, more companies are becoming involved, a broadening range of activities are outsourced, and product portfolios are expanding (Butner 2010). Consequently, they face various problems, including issues with information flows (Kumar and Singh 2017;Wognum et al. 2011). ...
... These inefficient paper-based processes are subject to increased human errors, losses and delays (Carlan et al. 2018). Limited and inefficient information flows lead to visibility, security and cost issues (Kumar and Singh 2017;Peng, Chen, and Wang 2023). As supply chains grow in complexity, visibility and transparency become more important for companies to understand what is going on in their supply chains and therefore be better prepared for possible disruptions. ...
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Global trade is plagued by slow and inefficient manual processes associated with physical documents. Firms are constantly looking for new ways to improve transparency and increase the resilience of their supply chains. This can be solved by the digitalisation of supply chains and the automation of document-and information-sharing processes. Blockchain is touted as a solution to these issues due to its unique combination of features, such as immutability, decentralisation and transparency. A lack of business cases that quantify the costs and benefits causes uncertainty regarding the truth of these claims. This paper explores how the costs and benefits of a blockchain-based solution for digitalising and automating documentation flows in cross-border supply chains compare to a conventional cen-tralised relational database solution. The research described in this paper uses primary data collected through semi-structured interviews with industry experts, as well as secondary data from literature. Two models based on existing services were developed and the costs and benefits compared and then analysed using the Architecture Trade-off Analysis Method (ATAM) and the Analytic Network Process (ANP). Findings from the analysis show that a consortium blockchain solution like TradeLens is the favourable solution for digitalising and automating information flows in cross-border supply chains. ARTICLE HISTORY
... Our findings indicate that SCRFs have predominantly originated from researchers affiliated with universities. According to [76], enhancing coordination among various stakeholders in the SC contributes to improved response capabilities. Hence, the SC community must convene researchers, consultants, and practitioners, fostering collaboration to formulate a comprehensive SCRF. ...
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Background: Various supply chain response frameworks (SCRFs) have been proposed in the supply chain (SC) literature, but there is no in-depth analysis. This study analyzes the applicability of SCRFs in scenarios that require SC responses by examining the frameworks’ design and use in response situations. Methods: A qualitative analysis of 38 studies revealed weaknesses in SCRFs, which include the entity proposing the framework, the stimulus being responded to, the adaptation of activities to the stimulus that is responded to, objectives, and response evaluation criteria. Results: The analysis reveals that while these frameworks have been designed for specific situations involving single SC processes, they demonstrate weaknesses by failing to meet two requirements: (1) the stimulus being responded to is different from changes in demand, and (2) the response is generated by a process distinct from manufacturing. Conclusions: Further, SCRF research that incorporates these weaknesses will promote the fragmented development of the SCR concept. Conversely, a robust SCRF can be successfully utilized in various SCRs, facilitating the comparison and evaluation of responses of different SCs to the same stimulus.
... When people are not in alignment, they work toward conflicting objectives, activities lose their effectiveness, and the demands of the organization are are predominated by functional or individual objectives, employee morale and output decline, and the company is more open to attack from rivals and other forces. Customer responsiveness is defined by Kumar & Singh (2017) as a company's capacity to react quickly to the demands and desires of its clients as well as to shifting market conditions. Customer responsiveness, according to Alireza, Anahita, Somayeh, Arian, and Amin (2011), is meeting customers' rightful demands when they're due. ...
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Most enterprise structures are based either on function or division orientation, with little or no process orientation. Functionally organized organisations often find it difficult to meet customer needs seamlessly across different functions because no one "owns" the issue of how long it takes or how much it costs to fulfill customer requests, while divisionally organized companies, which are mostly oriented toward their products building and market demand for the products they are able to produce, neglect customer needs and business relationships. This study examined the influence of strategic alignment on organizational responsiveness in medium scale enterprises in the north-central zone of Nigeria. To achieve this objective, the variables were operationalized and a model specified. The study adopted descriptive survey research design. Data were gathered from primary source and the study hypothesis was tested using the Multiple Regression Technique. Strategic alignment was found to have significant influence on organizational responsiveness in medium scale enterprises in North-Central Nigeria from the result of the regression analysis. Based on these findings, the study recommended that the leadership of business enterprises should adopt working systems that encourage inclusiveness and free flow of communication while encouraging employees to maintain a healthy level of autonomy in the performance of their duties.
... When people are not in alignment, they work toward conflicting objectives, activities lose their effectiveness, and the demands of the organization are are predominated by functional or individual objectives, employee morale and output decline, and the company is more open to attack from rivals and other forces. Customer responsiveness is defined by Kumar & Singh (2017) as a company's capacity to react quickly to the demands and desires of its clients as well as to shifting market conditions. Customer responsiveness, according to Alireza, Anahita, Somayeh, Arian, and Amin (2011), is meeting customers' rightful demands when they're due. ...
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Most enterprise structures are based either on function or division orientation, with little or no process orientation. Functionally organized organisations often find it difficult to meet customer needs seamlessly across different functions because no one "owns" the issue of how long it takes or how much it costs to fulfill customer requests, while divisionally organized companies, which are mostly oriented toward their products building and market demand for the products they are able to produce, neglect customer needs and business relationships. This study examined the influence of strategic alignment on organizational responsiveness in medium scale enterprises in the north-central zone of Nigeria. To achieve this objective, the variables were operationalized and a model specified. The study adopted descriptive survey research design. Data were gathered from primary source and the study hypothesis was tested using the Multiple Regression Technique. Strategic alignment was found to have significant influence on organizational responsiveness in medium scale enterprises in North-Central Nigeria from the result of the regression analysis. Based on these findings, the study recommended that the leadership of business enterprises should adopt working systems that encourage inclusiveness and free flow of communication while encouraging employees to maintain a healthy level of autonomy in the performance of their duties.
... Organizations can resolve their supply chain issues by developing the ability to respond to needs and wants of customers promptly and being responsive to dynamic market changes (Kumar and Singh, 2017). Therefore, supply chain managers are becoming more interested in responsiveness as it develops an essential link between production and fulfillment (Danese et al., 2013;Singh, 2015;Bic¸er et al., 2018). ...
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The survival of any enterprise in today's dynamic business environment is possible with exceptional performance. Therefore, this study has highlighted the antecedents of SMEs' performance in Oman. It has investigated the relationship between supply chain flexibility and SMEs' performance, supply chain flexibility and customer responsiveness, and customer responsiveness and SMEs' performance. Moreover, it has examined the mediating role of customer responsiveness and the moderating role of market orientation in the relationship between supply chain flexibility and SME performance. We employed quantitative methodology, and the sample size for PLS-SEM analysis was determined to be 385. The results highlighted supply chain flexibility significantly influences SMEs performance (β: 0.185, t: 2.376, p ≤ 0.00) and customer responsiveness (β: 0.790, t: 40.207, p ≤ 0.00). Moreover, customer responsiveness significantly influences SMEs performance (β: 0.202, t: 2.870, p ≤ 0.00). Further, the findings demonstrated customer responsiveness's complementary partial mediating role in the relationship between supply chain flexibility and SME performance (β: 0.155, t: 2.857, p ≤ 0.00). Meanwhile, the moderating role of market orientation was found to be insignificant.
... Governance is an important tooling issue for a variety of reasons, including the changing roles of knowledge and information, trends toward networking as an organizational form, concerns about globalization, and ultimately advances in ICT. e-governance, like all e-subjects, aims to use advanced information and communication technologies to enhance and support all government functions [6]. The importance of public awareness and the digital divide cannot be overemphasized. ...
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This study was conducted with the aim of investigating the effect of market orientation on the performance of small and medium enterprises with the mediating effect of supply chain agility and adjustment of innovation capabilities. The data of this study were collected from small and medium production companies active in Razavi Khorasan province in 1402. The questionnaire was distributed online to managers of small and medium companies in the province. The data for this study come from small and medium production companies that were active in Razavi Khorasan province in 1402. The collected data were analyzed using Smart Pls. The results showed that market orientation not only affects the performance of SMEs, but also helps them develop supply chain agility. The findings of this research can serve as a guide for managers of small and medium companies in the country to develop capabilities such as supply chain agility to increase performance by focusing on market orientation.
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Purpose – The purpose of this paper is to employ a newly developed framework to examine the complex relationship between different components of supply chain practices, supply chain integration (SCI) and supply chain performance (SCP) in the Malaysian electronics sector. Design/methodology/approach – This study utilizes survey data of 156 electronics firms in Malaysia and tested the research framework and hypotheses. In addition to the traditional approach of Barron and Kenny (1986), the Sobel test as well as a bootstrapping approach, which is deemed for small sample size, is used to formally test the indirect effects of SCI in the model. Findings – SCI has fully and partially mediated the relationship between supply chain management practices (SCMPs) and SCP. SCI fully mediates the relationship between SCP and three of the SCMPs, namely, information quality, agreed vision and goals and postponement strategies. The relationship of supply strategic partnership, customer relation management, information sharing with SCP were partially mediated by SCI. Risk and reward sharing is found to be non-significant. These insights allow managers to effectively utilize the different components of SCMPs for SCI and performance. Practical implications – For supply chain practitioners, the results of the study can be useful in integrating SCMPs and SCI on improving SCP. Practitioners should take into account the mediating effect of SCI in designing their supply chain management approach to production. Originality/value – To the authors’ best knowledge, this paper is one of the first to address the mediating effect of SCI between SCMPs and overall performance of the supply chain.
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Purpose This study aims to explore factors hindering small and medium-sized enterprises' (SMEs) growth in Khomas region in Nambia. Methodology/design/approach Methodology adopted is qualitative approach with a case study research design including in-depth interviews and deep observations. Findings Findings indicate that these SMEs experience stealing, security problems and fights from the customers, which hinder business growth. In addition, though they understand the importance of technology in boosting business growth, they are not able to keep the pace with changing technology, which impacts their business development. It was further found that access to finance, appropriate marketing strategies, lack of skilled manpower and poor customer service also hinder their business growth. Research limitations/implications The special aspect of case study design is that it defines the delimitation of the research study and may find it necessary to adjust the boundaries that in any case have initially been determined arbitrarily. Being a case approach, it may be difficult to generalize for all kinds of SMEs. Practical implications The problem faced by business owners as explored in this study brings a further dimension to the current literature on factors that hinder growth of SMEs. According to literature studies on factors hindering business growth, especially for SMEs selling alcoholic beverages, factors such as fighting, stealing and insulting as found in this study provide a new dimension on popular businesses especially in high-density areas or locations as they are popularly known in Namibia. Originality/value The originality of this study is the line of business - SMEs selling alcoholic beverages. This line of business is very popular and many venture into this because of the demand and profitability but because there are no studies, this paper will contribute and provide a framework to ensure success and business growth for future entrepreneurs in this line of business.
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Supply chain management (SCM) is a system that contains multiple entities, processes and activities from suppliers to customers. In a supply chain, raw materials and information flow from the supplier to the manufacturer, before final distributions to customers as finished products or services. The capability of collaboration and information sharing is essential to improve the overall effectiveness of the SCM. Collaboration involves devising a set of strategies in which external and internal actors with different capabilities achieve their common goals and capabilities to face global competition. Small and medium enterprises (SMEs) are more sensitive to environmental changes of market as compared to large organisations. To achieve competitive advantage SMEs should strategically implement collaboration and information sharing practices in their supply chains. In this study, authors have used a survey-based approach to study collaboration and information sharing practices for SCM in Indian SMEs. The results revealed that supplier selection and evaluation, involvement of customers in decision making and use of IT for different tools has significant impact on business performance of Indian SMEs.
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This study examined how the operations in six New Zealand manufacturers responded to the turbulence in their business environment brought on by the success of their products. It was carried out in response to various calls in the business and operations strategies literature for more studies on how companies create configurations of capabilities that lead to competitive advantage, how these literature can be better integrated, and on internal fit within manufacturing. Case research and historiographic methods were used to record the competitive evolution of these firms. The study used semi‐structured interviews with Chief Executive Officers (CEOs) and operations managers, analysis of company and public records and a manufacturing practices survey instrument. We suggest that when small and medium‐sized enterprises (SMEs) are faced with sudden and dramatic success from an innovation, they need to focus the company’s energy and resources on that product and its niche. Then, in terms of manufacturing strategy, the key attribute to develop is an operation that can produce short runs at little or no cost penalty, achieve requisite product variety, provide short manufacturing throughput times, and operate at high levels of quality and delivery dependability. We find that an approach that develops manufacturing capabilities that are related to market requirements is preferred to panacea‐based approaches. Also, we see no common pattern in manufacturing capability development.
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Purpose: The present paper aims to investigate the impact of two different dimensions of supply chain integration on two aspects of firm performance in the emerging economy of China. In addition, the moderating effects of market orientation on the relationship between supply chain integration and firm performance are explored.Design/methodology/approach: Data were obtained from a survey administered to 246 firms in the manufacturing and services industry in China. Hierarchical regression analysis was used to test the hypotheses.Findings: Operational coordination is positively associated with operational performance and business performance. Information sharing affects only operational performance; it has no impact on business performance. Furthermore, the results provide empirical support for the moderating effects of market orientation on the association of supply chain integration and firm performance.Research limitations/implications: The present study uses the focal firm as the unit of analysis. Future studies should examine the research issue at the level of the supply chain. Second, the generalizability of the current findings may be limited because this present study was conducted only in China. Future studies should collect data from firms in different political and cultural environments. Third, the current research used a cross-sectional research design. Future research should consider applying multiple sources of data and conducting a longitudinal study. Finally, the present study measured firm performance using the subjective perceptions of the key respondents. Future research should include objective measures of firm performance.Practical implications: Managers are provided with an in-depth understanding of how the different dimensions of supply chain integration affect the different aspects of firm performance and how the types of market orientation in emerging economies, in general, and in China, in particular, moderate these effects.Originality/value: The current paper contributes knowledge on the value-realizing mechanism of supply chain integration from a resource-based view. It presents a multidimensional explanation of the relationship among supply chain integration, market orientation, and firm performance in the context of China.
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Purpose – Information sharing enhances the supply chain profitability significantly, but it may result in adverse impacts also (e.g. leakages of secret information to competitors, sharing of wrong information that result into losses). So, it is important to understand the various risk factors that lead to distortion in information sharing and results in negative consequences. Information risk identification and assessment in supply chain would help in choosing right mitigation strategies. The purpose of this paper is to identify various information risks that could impact a supply chain, and develop a conceptual framework to quantify them. Design/methodology/approach – Bayesian belief network (BBN) modeling will be used to provide a framework for information risk analysis in a supply chain. Bayesian methodology provides the reasoning in causal relationship among various risk factors and incorporates both objective and subjective data. Findings – This paper presents a causal relationship among various information risks in a supply chain. Three important risk factors, namely, information security, information leakages and reluctance toward information sharing showed influence on a company’s revenue. Practical implications – Capability of Bayesian networks while modeling in uncertain conditions, provides a prefect platform for analyzing the risk factors. BBN provides a more robust method for studying the impact or predicting various risk factors. Originality/value – The major contribution of this paper is to develop a quantitative model for information risks in supply chain. This model can be updated when a new data arrives.
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Purpose – The purpose of this paper is to investigate the current level of supply chain practices (SCPs) in Indian manufacturing organizations. Design/methodology/approach – The 15 SCPs are identified based on the literature support and opinion of industry experts and academia, and data were collected from 292 organizations. Data were analyzed using the statistical package for the social science software to see the current level/penetration of SCPs in Indian manufacturing organizations. Findings – The practices, namely, organizational culture, customer relationship, information and communication technology, benchmarking and performance measurement, lean manufacturing, agile manufacturing, supplier relationship are highly penetrated practices in Indian manufacturing organizations. The practices, namely, outsourcing, information sharing, just in time manufacturing, green supply chain management are moderately penetrated practices, while the practices, namely, reverse logistics, postponement, vendor managed inventory, radio frequency are least penetrated practices in Indian manufacturing organizations. Research limitations/implications – Further study can be extended to see the of penetration practices applicable to service and agriculture sectors. Practical implications – The result of this paper will enable the organizations to identify and direct their focus on the areas that requires improvement. Also, the organizations will become more aware of the SCPs that will help in boosting up their performance and competitiveness and indirectly boost the growth and contribute to India’s economic development. Originality/value – This is the first kind of study which checked the level of selected SCPs in Indian manufacturing organizations.
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Executives know that a company's measurement systems strongly affect employee behaviors. But the traditional financial performance measures that worked for the industrial era are out of sync with the skills organizations are trying to master. Frustrated by these inadequacies, some managers have abandoned financial measures like return on equity and earnings per share. "Make operational improvements, and the numbers will follow,"the argument goes. But managers want a balanced presentation of measures that will allow them to view the company from several perspectives at once. In this classic article from 1992, authors Robert Kaplan and David Norton propose an innovative solution. During a yearlong research project with 12 companies at the leading edge of performance management, the authors developed a "balanced scorecard;" a new performance measurement system that gives top managers a fast but comprehensive view of their business. The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures related to customer satisfaction, internal processes, and the organization's ability to learn and improve-the activities that drive future financial performance. The balanced scorecard helps managers look at their businesses from four essential perspectives and answer Some important questions. First, How do customers see us? Second, What must we excel at? Third, Can we continue to improve and create value? And fourth, How do we appear to shareholders? By looking at all of these parameters, managers can determine whether improvements in one area have come at the expense of another. Armed with that knowledge, the authors say, executives can glean a complete picture of where the company stands-and where it's headed.
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Purpose – In the rapidly changing business environment, companies must align with suppliers to streamline operations, as well as working together to achieve a level of agility beyond individual companies (Lin et al., 2006). Today’s more dynamic business environment increases the need for greater agility in supply chains, which increases both the importance and frequency of supplier/partner evaluation and benchmarking decision making. The purpose of this paper is to develop a multiple criterion appraisement index (model/module) for supplier/partner alternative firm benchmarking perspective under similar agile supply chain architecture. Design/methodology/approach – In this reporting, evaluation information against subjectivity (uncertain environment) indices has been transformed mathematical dimensionless numbers by fuzzy-based computation module. A new interval-valued fuzzy number set conjunction with modified “technique for order preference by similarity to ideal solution” methodology has been explored from benchmarking (ranking order of firm under similar criterion) point of view of supplier firms. Findings – In this context, a novel “fuzzy mathematical equation” has been developed in perceptive to compute the priority weights and appropriateness ratings of first-level measures which reduced the acquisition of supplementary priority weights and appropriateness ratings assessment in linguistic terms from group decision makers (DMs) for first-level indices. An empirical case study has been carried to ranking order the candidate partner/supplier alternative via collective index (CI) value. Lower value of “CI” reflected higher degree of performance extent. The authors found out the effectiveness and validity of proposed methodology for constructed appraisement module. Originality/value – This research work shall be valuable for that organization which volunteer to obtain the ranking order of partner/supplier alternative (benchmark) under similar agile supply chain architecture in accordance to group DMs’ comprehensive information for select best one supplier for own firm. In this reporting, a novel fuzzy mathematical equation has been developed in order to compute the important weights as well as priority rating of first-level indices/measure which reduced the supplementary important weights and priority rating assessment from group DMs in linguistic terms in order to obtain the measures rating and weights.