This study investigates the predicting factors affecting supply chain agility for small-medium enterprises. This work also explores the indicators of SME growth. Conceptual framework by reviewing literature approach is used in this study. The findings of this investigation indicate that the factors of buyer-supplier collaboration, logistics and distribution, business intelligence, total quality management, and information technology adoption are contributing to the supply chain agility for SMEs. It also found that the growth SMEs could be measured by some indicators such as sales, return on investment, customer effectiveness, information sharing, and inventory management.
TopIntroduction
This study aims to investigate the role of supply chain agility (SCA) in enhancing business growth among small to medium-sized enterprises (SMEs). Over the years, the SMEs ecosystem experience series of changes due to technology and customer demands which has shape the pattern of life for consumers across the world (Vázquez-Bustelo et al., 2007). As a result, SMEs owners have to reposition their business operations to adopt to such changes in order to be increasingly competitive in the global market (Kumar & Sosnoski, 2011). Because, their survival can be at threat due to lack of capacity to fulfil customer needs and expectation (Sherehiy, et al., 2007). From this perspective, several researches have identify that integrating SCA into SMEs operation can boost productivity (Stock, Boyer & Harmon, 2010; Chow et al, 2008). Sherehiy, et al., 2007, confirmed in their study that businesses are capable of sensing changes in the marketplace through capability of SCA. SCA denotes business’s ability and competence to sense and swiftly respond to changes in the markets environment (DeGroote & Marx 2013). It involves the effective and efficient application of performance indicators such as speed, responsiveness and flexibility of operations methods, which are aimed at addressing business challenges and changes efficiently (Gligor & Holcomb 2012). In another study, Swafford et al., 2006 outline seven distinct features of SCA namely: speed, flexibility, change culture, responsiveness, low complexity, quality and customization of products, mobilization and integration. The most common determining factor of SCA consist of information sharing, relationship partnerships, internal integrative processes and the use of information technology (IT) (Bottani 2010; Chang, Tsai & Hsu 2013; Ngai et al. 2011). Firms that demonstrate agile attributes are better positioned to take advantages of market-related opportunities (Chan, Ngai & Moon 2017).
SCA is a concept mostly of increasing significance among SMEs and of growing academic interest (Mentzer & Gundlach, 2010). Since, it is centred on the idea to support businesses in enhancing the flow of goods, services, money and information from point of origin to the final consumer (Shukla, Garg & Agarwal 2011). According to Stock, Boyer & Harmon, 2010, SCA creates added value to SMES involved in the supply chain thereby creating efficiency and customer satisfaction. Such benefits are characterised by adequate inventory management, increases service delivery, quality and shorter product development cycles (Corbett, Blackburn & Wassenhove, 1999). Christopher, 2000 confirmed that supply chain agility can provide businesses with performance improvements thus, allowing them to better align supply and demand within the markets in which they operate.