قابلیت مدیریت زنجیره تامین کسب و کار خانواده کوچک و متوسط در هند: روش مطالعه به صورت مورد های متعدد
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Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : International Journal of Production Economics, Volume 147, Part B, January 2014, Pages 472–485
Supply chain management has emerged as a vital capability of operational excellence for companies in India, which is currently one of the fastest growing emerging economies. Indian business is dominated by small and medium sized enterprises (SME). With a smaller size, narrow span of operations, and scarce resources, these businesses tend to be less advanced in their supply chain management (SCM) capabilities compared to large organizations. SMEs are predominantly owned and managed by families. Owners make strategic decisions, control and manage operations and therefore their attitude towards growth, risk appetite, and level of professionalism has a huge impact on the business. This research attempts to explore the relationships that “family-business” characteristics has on supply chain management capabilities of small and medium sized family businesses (SMFBs) in the Indian context. Our research framework is based on the interaction of two independent disciplines of research which makes a hermeneutic interpretative studies approach an appropriate lens to examine the intersection of family business and supply chain management. We use a within-case interpretive analysis of six manufacturing companies in diverse sectors to identify key constructs in the domain of “family-business” and “supply-chain management”. We then analyze the level of these constructs through across-case interpretive analyses. Finally, we use the pattern of across-case analyses to develop a set of propositions that link the relationships between the constructs of family business and supply chain management capabilities. Implications of these propositions for theory building and managerial practice are offered.
India as one of the fastest growing economies is transitioning into the next phase of the growth cycle. According to Ernst & Young's India attractiveness survey (2012), India leads the world ranking in the shared services domain and is also rapidly emerging as a preferred location for manufacturing for many foreign corporations (Ernst & Young, 2012). It is estimated that by the year 2020, India will be among the world's top three destinations for manufacturing. Despite this enormous long-term growth opportunity, there are challenges with respect to its supply chain management (SCM) performance. Specifically Indian companies are increasingly recognizing the strategic contribution that suppliers bring to firms and yet are lacking in supply chain performance in the areas of cost, quality, time, delivery, and flexibility (Jayaram and Avittathur, 2012 and Industry Week, 2009). Gupta (2012) points to the importance of looking beyond multinational corporations (MNCs) to specifically examine emerging market multinational corporations (EMNCs). In particular, he talks about investigating the influence of Indian overseas family businesses (OFB) on the Indian economy. Panjwani et al. (2008) estimate that about 85 percent of businesses in the European Union and 90 percent of US businesses are family controlled. Worldwide family businesses account for approximately 75 percent of the top 100 companies. Like their counterpart developed economies, Indian businesses are predominantly family owned. They account for 85 percent of the economy in terms of national output and value addition. A majority of these businesses are in the small and medium sized family business (SMFB) segment. Ward (2000) estimates that there are about 6 million registered firms in India, most of them being family businesses having an average net worth of less than USD 500,000. Many progressive and large family groups have revisited their strategic intent and operational efficiencies to compete in a global environment (Sampath, 2001). However, SMFBs have been slow in responding to global market challenges, adopting new technologies, and gaining a competitive edge via flexibility. With the trend towards increased outsourcing, a renewed focus on SCM as a strategy has become vital to success. Thakkar et al. (2012b) argue that SCM has been considered an effective strategy for integrating suppliers and customers with the objective of improving responsiveness and flexibility of manufacturing organizations. Large, organized companies have the resources and ability to manage interlinked supply chain networks (Blome and Schoenherr, 2011). In contrast, SMFBs have not developed SCM capabilities to match this capability for global competition. Research on SCM and family business has both received significant attention from researchers lately. Despite the dual importance of SMFBs in the Indian economy and SCM as a strategic weapon, research combining these disciplines is sparse. Unlike non-family owned companies, in the case of SMFBs, the family has ownership of the business and a desire to grow the business though close controls. This ownership structure affects corporate governance, strategic decision making and performance of the companies. Therefore, the core objective of this research is to identify which characteristics of family businesses influence effective SCM capabilities of the business? To address this research objective, we pursue a qualitative hermeneutic interpretive studies approach based on data from six SMFBs in the Indian manufacturing sector. In absence of a single definition of family business, we use the theoretical anchor of most propounded definition of family business by Donnelly (1964) and develop criteria that justify our sample selection. The paper proceeds as follows: In Section 2, we review the literature relating to both family business and SCM disciplines, identify the research gap, and then discuss the mode of development of our research framework. In Section 3, we describe the methodology used for purposive selection of cases, hermeneutic qualitative data collection approach. Section 4 describes how key constructs were selected from within-case analyses and how these were used for across-case analyses leading to development of our theoretical framework. Section 5 uses the theoretical framework and ensuing propositions to isolate thematic insights that emerge from this framework. The paper offers specific implications of our findings on theory development and on managerial practice. Specifically, we seek to contribute to the literature by linking key family business constructs that influence enhancement of supply chain capabilities for SMFBs in India.
نتیجه گیری انگلیسی
Supply chain capabilities in India are still in the developmental stage. Although, about 22 percent of aggregate industry sales is tied up in inventories in entire supply chain network (Sahay et al., 2003), the approach to supply chain strategy to improve bottom line results is still nascent and evolving. At the same time, about 70 percent businesses in India are small and medium in size, owned and managed by families. The family and business characteristics shape their supply chain capabilities. Specifically, professionally managed businesses develop SCM capability by investing in IS and IT infrastructure. Owner-managers in family businesses are cost consciousness and resource utilization is extremely high. Therefore, developing SCM capability to enhance business performance can be a challenge for family businesses. Our endeavor for this empirical research was to investigate influencing factors in the realm of small and medium sized family businesses and their SCM capability. Within this context, we investigated six SMFBs through in-depth qualitative survey. Our contribution to the field of family business and SCM is by way of developing a testable research framework for SMFBs in the Indian context. Using past research as a guide, we collected data with theoretical underpinning of family business and SCM concepts. From within-case and across-case analyses, we identified key constructs representing both the disciplines together. Our second contribution is by offering the links of relationships and influences among key constructs (see Fig. 1). We then discussed the implications of each research proposition for academic theory and practicing managers. The present study has limitations, as with any research though the limitations provide for a broad array of potential avenues for further research. The size of sample is adequate only to investigate the preliminary relationships. To validate the results statistically and measure the extent of correlations and influences among characteristics, a large sample is necessary. Another limitation is about the selection criteria of sample case. Thoroughly structured selection criteria for the six case studies fulfilling theoretical criteria of a family business may not represent a large section of sample geographically. Our research being exploratory was restricted to only manufacturing companies in small, medium segment that had certain characteristics. With a large sample size a possibility of more characteristics appearing as influential characteristics cannot be ruled out. Therefore, for further generalizability, more studies using larger sample sizes and quantitative approach can lead to the deeper understanding of the influences and relationship between family business and supply chain management disciplines. Yet another research opportunity is identify which SMFB firms are performing better in terms of operational performance or financial performance. Other related areas of research could be on professional management in family businesses and future of SCM in Indian businesses. Considering the economic impact of family businesses and importance gained by supply chain management in emerging India, this research is equally relevant for academics, family business owners, and also the supply chain management practitioners and policy makers.