Benchmarking the viability of SCM for entrepreneurial business model design
Article Type: Awards for Excellence From: Benchmarking: An International Journal, Volume 17, Issue 6
Stanley E. Fawcett and Chad AllredMarriott School, Brigham Young University, Provo, Utah, USAGregory M. MagnanAlbers School of Management, Seattle University, Seattle, Washington, D.C., USAJeffrey OgdenAir Force Institute of Technology, Dayton, Ohio, USA
Purpose – The purpose of this paper is to benchmark the viability of collaborative supply chain (SC) business models for small businesses.Design/methodology/approach –Survey data were collected from 81 companies with 100 or fewer employees, 169 companies with 101-500 employees, and 308 companies with more than 500 employees. To help contextualize the findings, eight in-depth interviews with small firms were conducted.Findings – Benchmarking the viability of collaborative SC business models using a contingency,resource-based view assessment paradigm reveals a perplexing paradox. Managers at small firms suggest that the majority of the benefits of supply chain management (SCM) are within their reach. They also note that the barriers to implementation do not intimidate them. However, they also report that they are not actively pursuing SCM as a strategic weapon. Our research shows that the best way to avoid the cost squeeze and death spiral encountered by small business in today’s global SC environment is to create the collaborative capabilities promoted by SCM. That is, while large firms leverage size firms must leverage creative collaboration to insinuate themselves into competitive SC teams to drive long-term growth. We recommend three alternative SCM strategies based on the small firm’s growth strategy.Originality/value – The small-business literature on SCM is relatively scant and provides conflicting views of SCM’s viability. This research represents a unique multi-method approach that shows that SCM is applicable to the world of small business.
Keywords: Benchmarking, Entrepreneurialism, Supply chain management
This article originally appeared in Vol. 16 No. 1, 2009, pp. 5-29, of Benchmarking: An International Journal,Editor: Professor Angappa Gunasekaran
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