Supply chains and SMEs

Small- and medium-sized enterprises (SMEs) present an issue of significant political and economic interest as they create jobs and drive development in developing and advanced countries. However, there is a perception that SMEs face a conundrum in the new realities brought about by globalisation. While supply chains present a portal for SMEs into international markets, they also open up SME market niches to encroaching large-sized enterprises (LEs). The competitive capabilities imparted by supply chain management (SCM) literature is suggested here for SMEs to compete against LEs; a slingshot in the battle between David and Goliath. The literature, however, reveals a controversy over whether SCM, in reality, helps or hurts SMEs. Some of the reasoning points to the presence of an LE perspective bias, and SMEs sometimes consider SCM as a threat, not a solution. The recent literature is addressing this issue by taking up the SME perspective, but the question of an SCM for SMEs is still in a very early stage of development. More effort will be required to gather data and build theory for SMEs in both developed and developing markets.