Purpose: The purpose of this paper is to measure and analyze the competitive advantage of micro, small and medium enterprises (MSMEs) based upon the Porter’s diamond framework. The major objective is to contribute toward better understanding of various determinants of the diamond model in context within Indian MSMEs. Design/methodology/approach: Extent review of the literature has been done to identify various critical factors contributing to developing a competitive advantage. Exploratory factor analysis and internal consistency tests were performed to verify scales validity and reliability of measuring instrument (questionnaire). In research design, a case study approach has been used, in which MSMEs operating in the pharmaceutical, electrical and electronics, automobile, food and textile sectors were considered. Findings: Study findings indicate that the pharmaceutical sector is more competitive followed by food (112.491) as revealed by the high value of surface area i.e. 150.931. The competitiveness among MSME sectors is mostly affected by demand conditions followed by firm strategy, structure and rivalry. Moreover, the score of diamond axes indicates significant difference with respect to determinants. For instance, in the textile sector, the determinants such as factor conditions and related and supporting industries scored low, for example, 4.710 and 4.280, respectively, which indicates it needs to be strengthened as this sector stands at last position with minimum surface area, for example, 67.398. Research limitations/implications: Owing to the time and resource constraints, this study was conducted in MSMEs situated in the state of Himachal Pradesh, India, and thus generalizations of results are rather limited. Practical implications: This study is one of the original being undertaken by authors which helps to underline the importance of various determinants which may help the MSME units to improve competitiveness by implementing effective competitive strategies. The study could be extended to other regions of the country. Originality/value: This study is a result of extended research on competitiveness and provides an instrument to measure firm ability to be competitive. CEO’s, managers and policy makers from industries as well as government will be able to use this to evaluate their competitive positioning and identify key problem areas which required improvements.
21 October 2019 in Journal of Manufacturing Technology Management
Purpose: The purpose of this paper is to examine the cost leadership competitive strategy’s (CLCS) impact on firm performances and the mediating role of quality management (QM) practices in the context of micro, small and medium enterprises (MSMEs).Design/methodology/approach: A structures questionnaire data collected from 245 ISO 9000 certified MSMEs in India (65.1 per cent of response rate) have been utilised to understand the CLCS’s impact on firm performances. In the first step, the data adequacy tests were performed to check the reliability and validity of the questionnaire and survey data. After that, the partial mediating model (direct, indirect and total effect) along with structural equation modelling approach was employed to test the research hypotheses.Findings: The study results revealed that no direct relationship exists between the CLCS and firm performances (0.12<β0.05); however, QM practices entirely mediated their relationship (β=0.73,p<0.01). Among eight model parameters, with highest total effects on product quality improvement (β=0.6264) and process improvement (β=0.6028), the continuous improvement secured the rank 1, followed by information and analysis (β=0.2334) and supplier management (0.1839), respectively, atp<0.05. Based on the empirical results, it can be concluded that the continuous improvement via proper information and data analysis is the key to achieve CLCS’s goal in the MSMEs.Research limitations/implications: The study results’ generalisation towards the large organisations is limited. The survey result findings applicability to other developing countries should also be treated with caution because the Indian Government subsidised the MSMEs selected for this study. The study results will help managers in implementing CLCS at the organisational level. The successful implementation will facilitate a competitive advantage in the local market and will motivate them to think globally.Originality/value: The research observation and findings are expected to contribute to the strategic management in manufacturing industries. The study also confirms the existence of strategic management in MSMEs in a developing country. Furthermore, the major contribution is to understand the mediating role of QM practices, especially continuous improvement effect on the relationship between CLCS and firm performances in a developing country. The results indicated that the CLCS is only possible when the managers in the manufacturing sectors emphasis on the QM practices in their firms.
29 October 2024 in The International Journal of Logistics Management
Purpose: Artificial intelligence (AI) usage improves e-commerce logistics efficiency. However, many actors can play significant roles, such as supply chain consistency (SCC), last-mile logistics (LML) performance and collaboration and coordination among logistics firms. This study aims to assess how SCC and LML performance mediate and collaboration and coordination moderate the relationship between AI usage and logistics efficiency.Design/methodology/approach: A structured questionnaire was used to collect the data. A total of 245 valid responses were received from Indian e-commerce businesses. The data were then analysed using AMOS v25 and structural equational modelling using SPSS for regression, PROCESS macro for mediation and moderated mediation analysis.Findings: The findings show that AI usage independently impacts logistics efficiency, with SCC and last-mile delivery performance as mediating variables. Collaboration and coordination among logistic firms are also critical moderators in enhancing AI’s efficacy in logistic operations. The study findings suggest the integration of AI into logistic operations and provide implications to managers on the urgency of fostering a collaborative and synchronised environment to utilise the full potential of AI in e-commerce businesses.Originality/value: This study not only contributes to the field of logistics theory by presenting empirical data on the various ramifications of AI but also offers practical guidance for logistics firms, particularly those operating in developing economies, on how to strategically employ AI to enhance operational efficiency and attain a competitive advantage in the era of e-commerce logistics in the digital age.
25 January 2022 in Benchmarking: An International Journal
Purpose: This paper examines the mediating role of manufacturing strategies in the relationship between competitive strategies and firm performance.Design/methodology/approach: This study gathered 250 responses from firms in a developing country's key manufacturing sectors, including mechanical, electronics, automotive, textile and food. First, descriptive statistics were applied to fix outliers like respondent biases, missing values and normality issues. Second, exploratory factors analysis (EFA) ensured data adequacy and homogeneity through Kaiser–Meyer–Olkin (KMO) and Bartlett tests. Finally, confirmatory factors analysis (CFA) was used to identify the interactions (direct, indirect and total effects) between latent variables representing manufacturing strategies (quality, cost, delivery and flexibility), competitive strategies (cost-leadership and differentiation) and firms' performance (sales growth and profitability). In total, two structural equation modelling (SEM) models (SEM-I, SEM-II) were created to test the hypotheses.Findings: Of the 40 items identified by the literature review, four were outliers, and three could not satisfy the EFA criteria (eigenvalue >1). Only 33 items could therefore reach CFA. SEM–I and SEM-II study results found no direct relationship between competitive strategies and firm performance (−0.03 = β = 0.08;p > 0.05). However, the findings revealed that cost-leadership could be an appropriate strategic choice and improved firms' performance if the quality and delivery are focussed (0.20 = β = 0.87;p < 0.001). While competitive strategies impact manufacturing strategies positively, the latter is only a mediator between the cost-leadership strategy and the firms' performance.Originality/value: This research shows that the cost-leadership approach currently seems viable; however, flexibility and cost requirements were not satisfied due to infeasible product differentiation. These results will be beneficial to executives interested in investing in India's industries.
22 January 2018 in Total Quality Management & Business Excellence
The study investigates the relationship between quality management practices (QMPs), quality management system (QMS), firm performance and competitive positioning in the context of micro, small and medium enterprises (MSMEs). We build a structural model showing how QMS mediate the relationship between QMPs and firm performance and further integrate the model to investigate the effect of firm performance on competitive positioning. We found a significant direct relation (0.15 < β < 0.45) between strategic, tactical and operational QMPs and firm performance and observed that their relationship is stronger (0.64 < β < 0.69) in the presence of QMS. Results further imply that although QMS does not directly influence competitive positioning (β = 0.05, p > 0.05), it does so indirectly by improving firm performance (0.43 < β < 0.55). Thus, implementing QMPs, along with obtaining QMS certification provide most privileges concerning firm performance. Further, emphasis on cost, quality, flexibility and delivery to delight customers seems to provide a medium by which MSMEs can sustain competitive advantage.
The fourth industrial revolution, also referred to as Industry 4.0, has resulted in many changes within the manufacturing industry. The purpose of the study is to demonstrate how an Industry 4.0 project was scoped and deployed utilising Lean tools to reduce non-value add wastes and aid regulatory compliance. A case study research approach was utilised to demonstrate how the Lean Industry 4.0 project was implemented in a Medtech company to enhance Lean processes while increasing digitalisation. This research demonstrates that Industry 4.0 can enhance Lean, improve flow, reduce nonvalue add waste, and facilitate product lifecycle regulatory compliance to reduce defects, enhance quality, improve cycle time, and minimise reworks and over-processing. Lean and Industry 4.0 combined offer many benefits to the MedTech Industry. This research will support organisations in demonstrating how digital technologies can synergistically affect Lean processes, positively impact product lifecycle regulatory compliance, and support the industry in building a business case for future implementation of Industry 4.0 technologies.