Empirical testing of a model on supply chain management adoption in India using the case study method

Abstract

Purpose The purpose of this study is to empirically test a theoretical model on supply chain management (SCM) adoption in India. Design/methodology/approach The present study used a multiple case research method to study the phenomenon. The findings are based on analysis of the SCM adoption processes in three large manufacturing organizations from the aluminium, steel and fertilizer industries. Findings The present study tested four propositions. Three of the propositions were empirically validated and one proposition was revised. The key findings are: one, a lack of recognition by an organization of higher advantages because of SCM adoption as compared to the costs leads to SCM non-adoption. Two, a lack of organizational readiness factors such as a collaborative and innovative culture, higher absorptive capacity and slack resources leads to the non-adoption of SCM. Three, a lack of institutional pressure and marketing activities of the SCM vendors on an organization lead to the non-adoption of SCM. Originality/value The major contribution of the present study is that it has empirically validated the theoretical model for SCM adoption in India. The findings of the present study have both theoretical and practical implications. Theoretically, a model of SCM adoption was validated. The study provides managerial connotations for SCM vendors, consultants, practitioners and policy implications for policymakers.