Interpretive structural modelling of factors for improving competitiveness of SMEs

Rajesh K. Singh, Suresh K. Garg and S.G. Deshmukh

International Journal of Productivity and Quality Management, 2007, vol. 2, issue 4, 423-440

Abstract: The competitiveness of an organisation can be defined as its ability to sustain its long-term performance better than its competitors in the market. In this paper, various competitiveness factors are identified from the literature review and experts opinion. The Interpretive Structural Modelling (ISM) approach has been employed to develop the structural relationship among different factors of competitiveness to enable the Small and Medium Enterprises (SMEs) management to take strategic decisions. The paper has also tried to define the levels of different competitiveness factors based on their driving/dependence power and their mutual relationships. It is observed that cost reduction, on-time delivery, quality improvement, inventory management and competitiveness are weak drivers and dependent on other variables. Top management commitment, employees' training and participation, state-of-the-art technology, market research and analysis, vendor development, product design and development capability are at the bottom of the ISM model, indicating strong driving power.

Keywords: small and medium-sized enterprises; SMEs; market globalisation; competitiveness; interpretive structural modelling; strategic management; productivity; quality management; competitive factors. (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (16)

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