Inventory management performance in machine tool SMEs: What factors do influence them?
Abstract: Small and Medium
Enterprises (SMEs) are one of the principal driving forces in the development
of an economy because of its significant contribution in terms of number of
enterprises, employment, output and exports in most developing as well as
developed countries. But SMEs, particularly in developing countries like India,
face constraints in key areas such as technology, finance, marketing and human
resources. Moreover these SMEs have been exposed to intense competition since
early 1990s because of globalization. However, globalization, the process of
continuing integration of the countries in the world has opened up new
opportunities for SMEs of developing countries to cater to wider international
market which brings out the need for these SMEs to develop competitiveness for
their survival as well as growth. It is observed from literature that pursuing
appropriate IM practice is one of the ways of acquiring competitiveness among
others, by effectively managing and minimizing inventory investment. Inventory
management can therefore be one of the crucial determinants of competitiveness
as well as operational performance of SMEs in inventory intensive manufacturing
industries. The key issue is whether Indian SMEs pursue better IM practices
with an intension to reduce their inventory cost and enhance their
competitiveness. If so, what are the IM practices pursued by these enterprises?
What are the factors which influence the inventory cost and IM performance of
enterprises? These questions have been addressed in this study with reference
to machine tool SMEs located in the city of Bangalore, India.
Author: Rajeev Narayana Pillai
Journal Code: jptindustrigg100020
