Supplier selection among manufacturing companies based on their MSME partners’ supply chain finance adoption capability using BWM and VIKOR

Abstract

Purpose The purpose of this paper is to identify and prioritise supply chain finance (SCF) adoption enablers and develop a novel comprehensive framework to select supplier firms based on their SCF adoption capability. Design/methodology/approach The study deploys a three-phase method to identify and prioritise SCF adoption enablers, followed by developing a model to select suppliers according to their SCF adoption capability. An extensive literature review, followed by a Delphi approach-based expert interview, has been used to finalise the enablers. Using the Best Worst Method and the VIsekriterijumsko KOmpromisno Rangiranje technique, a supplier selection model has been developed in the context of a case company. Findings The financial health and technological advancement variables received the top priority, followed by collaborative efficiency, whereas the human resources and organisational variables received the slightest significance. A supplier selection framework has also been developed by using the adoption capability of these factors by the supplier partners. In this study’s model, Supplier 4 exhibited better SCF adoption capability and received the top priority. Research limitations/implications Manufacturing supply chains in a developing country are the scope of the current study. Extensive future studies are required to derive a global consensus. Practical implications The proposed framework of this study can be used to select supplier firms based on their SCF adoption capability. Policymakers can emphasise the most critical enablers of SCF adoption to assist small supplier firms to be a part of the advanced global supply chains. Originality/value The current study established a novel comprehensive framework for supplier selection based on the Supply Chain Finance adoption capability of MSME supplier firms.