Supply chain management capability of small and medium sized family businesses in India: A multiple case study approach

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.