Search This Blog

Tuesday, 26 March 2013 - Procedia - Social and Behavioral Sciences - Adoption of Supply Chain Management in SMEs

Adoption of Supply Chain Management in SMEs

  • Faculty of Management and Human Resource Development, Universiti Teknologi Malaysia, 81310 Skudai, Malaysia


There has been a massive surge of interest in supply chain management (SCM) due to its innovation approach to business and competitive advantage. Large companies are well recognized the benefits of SCM, but small and medium enterprises (SMEs) are lagging behind in appreciating how integrated supply chain drives remarkable changes in business processes and work with positive results in better quality services, cost reduction and efficiency. Specifically, SMEs in Malaysia have insufficient knowledge on SCM and they underestimate the potential benefits of SCM. As SMEs is important growth engines in Malaysia, therefore, a great potential can be discovered to develop Malaysian SMEs through SCM. As such, this article includes a discussion of the applicability of SCM to SMEs by highlighting the needs and challenges of SMEs. The paper concludes that implementation of SCM could deliver a number of potential benefits to SMEs.


  • Supply Chain Management;
  • Small and Medium Enterprises;
  • alaysia


    • Acs and Audretsch, 1991
    • Acs, Z.J., & Audretsch, D.B. (1991). Innovation and technological change: An international comparison. Ann Arbor: University of Michigan Press. ADB.

    • Asian Development Bank, 2009
    • Asian Development Bank (2009). Enterprises in Asia: Fostering dynamism in SMEs: Key indicators for Asia and the Pacific special chapter.

    • Anja et al., 2009
    • Anja, S., Thomas, B., & Sascha, K. (2009). International entrepreneurship: Towards a theory of SME Internationalization. Journal of International Business and Economics, 9(1), 1-12. APO.

    • Asian Productivity Organization, 2002
    • Asian Productivity Organization (2002). Asian cases on supply chain management for SMEs. Report of the Symposium on Supply Chain Management for Small and Medium Enterprises. 11-14 December 2001. Taipei, Republic of China.

    • Aragon-Correa et al., 2008
    • Aragon-Correa, J.A., Hurtado-Torres, N., Sharma, S., & Garcia-Morales, V.J. (2008). Environmental strategy and performance in small firms: A resource-based perspective. Journal of Environmental Management, 86(1), 88-103.

    • Basher, 2010
    • Basher, V. (2010). Vendor selection and quota allocation by using fuzzy topics and linear programming. Master of Engineering in Production Engineering. University of Delhi, India.

    • Bhutta et al., 2007
    • Bhutta, M.K. S., Rana, A.I., & Asad, U. (2007). SCM practices and the health of the SMEs in Pakistan. Supply Chain Management: An International Journal, 12(6), 412-422.

    • Bidgoli, 2010
    • Bidgoli, H. (2010). The handbook of technology management: Supply chain management, marketing and advertising, and global management: Volume 2. United States of America, New Jersey: John Wiley and Sons.

    • Chandra and Kumar, 2000
    • Chandra, K., & Kumar, S. (2000). Supply chain management in theory and practice: A passing fad or a fundamental change? Industial Management & Data System, 100(3), 100-113.

    • Chow et al., 2008
    • Chow, W.S., Madu, C. N, Kuei, C-H., Lu, M.H., Lin, C., & Tseng. H. (2008). Supply chain management in the US and Taiwan: An empirical study. The International Journal of Management Science, 36, 665-679.

    • Dyerson et al., 2009
    • Dyerson, R., Harindranath, G., & Barnes, D. (2009). National survey of SMEs use of it in four sectors. The Electronic Journal Information Systems Evaluation, 12(1), 39-50.

    • Ebrahim et al., 2008
    • Ebrahim, N.A., Ahmed, S., & Taha, Z. (2008). R&D networking and value creation in SMEs. Department of Engineering Design and Manufacture, Faculty of Engineering, University of Malaya, Kuala Lumpur.

    • Ellegaard, 2006
    • Ellegaard, C. (2006). Small company purchasing: A research agenda. Journal of Purchasing & Supply Management, 12, 272-283.

    • Fawcett et al., 2008
    • Fawcett, S.E., Magnan, G.M., & Mccarter, M.W. (2008). Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal, 13(1), 35-48.

    • Gourova, 2010
    • Gourova, E. (2010). Knowledge management strategy for small and medium enterprises. Proceedings of the International Conference on Applied Computer Science, 639-648.

    • Hashim, 2007
    • Hashim, M.K. (2007). SMEs in Malaysia: A brief handbook. Malaysia: August Publishing Sdn. Bhd.

    • Hauser, 2005
    • Hauser, H-E. (2005). A qualitative definition of SME. Working paper for the SBS expert meeting Towards better structured business and SME statistics. Institute for Mittelstandsforschung, Bonn, Germany.

    • Hendrickson, 2009
    • Hendrickson, M. (2009). SME competitiveness in the Caribbean: Challenges and opportunities. ECLAC. Port of Spain Office.

    • Hong and Jeong, 2006
    • Hong, P., & Jeong, J. (2006). Supply chain management practices of SMEs: From a business growth perspective. Journal Enterprise Infrmationo Management, 19(3), 292-302.

    • Ketchen et al., 2008
    • Ketchen, D.J. Jr., Rebarick, W., Hult, G.T. M., & Meyer, D. (2008). Best value supply chains: A key competitive weapon for the 21st century. Business Horizons, 51, 235-243.

    • Koh et al., 2007
    • Koh, S.C. L, Demirbag, M., Bayraktar, E., Tatoglu, E., & Zaim, S. (2007). The impact of supply chain management practices on performance of SMEs. Industrial Management & Data Systems, 107(1), 103-124.

    • Lagrosen, 2005
    • Lagrosen, S. (2005). Customer involvement in new product development: A relationship marketing perspective. European Journal of Innovation Management, 8(4), 424-436.

    • Lazarica, 2009
    • Lazarica, M. (2009). The virtual enterprise - Opportunity for SMEs in the digital economy. Annals, Economic Science Series,. XV, 501-505.

    • Levy et al., 2001
    • Levy, M., Powell, P., & Yetton, P. (2001). SMEs: Aligning is and the strategic context. Journal of Information Technology, 16(3), 133-144.

    • Li et al., 2005
    • Li, S., Subba Rao, S., Ragu-Nathan, T.S., & Ragu-Nathan, B. (2005). Development and validation of a measurement instrument for studying supply chain management practices. Journal of Operations Management, 23, 618-641.

    • Lipparini and Sobrero, 1994
    • Lipparini, A., & Sobrero, M. (1994). The glue and the pieces: Entrepreneurship and innovation in small-firm networks. Journal of Business Venturing, 9(2), 125-140.

    • Lummus and Vokurka, 1999
    • Lummus, R.R., & Vokurka, R.J. (1999). Defining supply chain management: A historical perspective and practical guidelines. Industial Management & Data Systems, 99(1), 11-17.

    • McAdam et al., 2004
    • McAdam, R., Reid, R., & Gibson, D. (2004). Innovation and organizational size in Irish SMEs: An empirical study. International Journal of Innovation Management, 8(2), 147-165.
    • Meehan and Muir, 2008
    • Meehan, J., & Muir, L. (2008). SCM in Merseyside SMEs: Benefits and barriers. The TQM Journal, 20(3), 223-232.
    • Melnyk et al., 2009
    • Melnyk, S.A., Lummus, R.R., Vokurka, R.J., Burns, L.J., & Sandor, J. (2009). Mapping the future of supply chain management: A Delphi study. International Journal of Production Research, 47(16), 4629-4653.
    • Mentzer et al., 2001
    • Mentzer, J.T., Dewitt, W., & Keebler, J.S. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1-25.
    • Mohanty and Deshmukh, 2005
    • Mohanty, R.P., & Deshmukh, S.G. (2005). Supply chain management: Theories and practices. Delhi: Biztantra Publication.
    • Monczka et al., 2009
    • Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management. (4th ed.). United States of America: South-Western Cengage Learning.
    • Mudambi et al., 2004
    • Mudambi, R., Schrunder, C.P., & Mongar, A. (2004). How co-operative is co-operative purchasing in smaller firms? Evidence from UK engineering SMEs. Long Range Planing, 37, 85-102.
    • Park and Krishnan, 2001
    • Park, D., & Krishnan, H.A. (2001). Supplier selection practices among small firms in the United States: Testing three models. Journal of Small Business Management, 39(3), 259-271.
    • Peng, 2009
    • Peng, M.W. (2009). Global business. Canada: South-Western Cengage Learning.
    • Pittaway and Morrissey, 2004
    • Pittaway, L., & Morrissey, B. (2004). Buyer-supplier relationships in small firms: The use of social factors to manage relationships. Lancaster University Management School Working Paper.
    • Plehn-Dujowich, 2007
    • Plehn-Dujowich, J. (2007). Innovation, firm size, and R&D search. Economics Bulletin, 12(17), 1-8.
    • Quayle, 2003
    • Quayle, M. (2003). A study of supply chain management practice in UK industrial SMEs. Supply Chain Management: An International Journal, 8(1), 79-86.
    • Rahman et al., 2011
    • Rahman, M.N. A., Wasilan, H., Deros, B.M., & Ghani, J.A. (2011). Barriers of SCM in SMEs. Applied Mechanics and Materials, 44-47, 3997-4001.
    • RMK10, 2011
    • RMK10 (2011-2015). The 10th Malaysia Plan. Kuala Lumpur, Malaysia.

    • Stock and Boyer, 2009
    • Stock, J.R., & Boyer, S.L. (2009). Developing a consensus definition of a supply chain management: A qualitative study. International Journal of Physical Distribution & Logistics Management, 39(8), 690-711.

    • Tan, 2002
    • Tan, K.C. (2002). Supply chain management: Practices, concerns, and performance issues. Journal of Supply Chain Management, 38(1), 42-53.

    • Thakkar et al., 2009
    • Thakkar, J., Kanda, A., & Deshmukh, S.G. (2009). Supply chain management for SMEs: A research introduction. Management Research News, 32(10), 970-993.

    • Thoo et al., 2011
    • Thoo, A.C., Huam, H.T., Yusoff, R.M., Rasli, A., & Bakar, A.H. A. (2011). Supply chain management: Success factors from Malaysian manufacturer s perspective. African Journal of Business Management, 5(17), 7240-7247.

    • UPS, 2008
    • UPS United Parcel Services (2008). UPS Reveals Asia Business Monitor Survey Findings. Available At:

    • Wong and Aspinwall, 2004
    • Wong, K.Y., & Aspinwall, E. (2004). Characterizing knowledge management in the small business environment. Journal of Knowledge Management, 8(3), 44-61.

Selection and/or peer-review under responsibility of JIBES University, Jakarta.
Corresponding author contact information
Corresponding author. Tel.: +6 07 5531833; fax: +6 07 5566911. - Procedia - Social and Behavioral Sciences - Adoption of Supply Chain Management in SMEs

No comments:

Post a Comment