Supply Chain Resilience and Firm Performance in Indian Small and Medium Enterprises
Author(s): Girish Narayanan, Pooja Mehrotra, Sanjay Rathore
Affiliation: Department of Business Administration, Rajputana College of Management Sciences, Jaipur, Rajasthan, India School of Management, Bundelkhand Institute of Business and Technology, Jhansi, Uttar Pradesh, India
Page No: 20-26-
Volume issue & Publishing Year: Volume 3, Issue 5, May 2026
Journal: International Journal of Modern Engineering and Management | IJMEM
ISSN NO: 3048-8230
DOI:
Abstract:
Supply chain disruptions have emerged as one of the most consequential operational risks confronting Indian Small and Medium Enterprises (SMEs), which collectively contribute approximately 30% of national GDP, 45% of total exports, and employ over 110 million people as of 2023–24. The COVID-19 pandemic (2020–2022), global logistics bottlenecks, and the ongoing volatility in raw material prices and geopolitical trade flows have exposed the structural fragility of Indian SME supply chains — characterised by limited supplier diversification, low digital visibility, inadequate inventory buffers, and thin financial resilience — resulting in estimated revenue losses exceeding ₹14.5 lakh crore across the SME sector during the pandemic period alone. Supply chain resilience (SCR) — defined as the adaptive capability of a supply chain to prepare for unexpected events, respond to disruptions, and recover to its original or a more desirable state by maintaining continuity of operations — has consequently gained prominence as a strategic management priority. This study investigates the antecedents of supply chain resilience and its impact on firm performance among Indian SMEs, based on primary survey data from 240 SME owner-managers and supply chain executives across six manufacturing sectors (food and beverage, textiles and apparel, auto components, pharmaceuticals, electronics, and engineering goods) in ten states. Structural equation modelling (SEM) was employed to test a conceptual model proposing top management commitment, IT infrastructure quality, and supplier relationship quality as antecedents of SCR, and SCR as a predictor of firm performance. Results confirm all three antecedent paths (top management commitment: β=0.38; supplier relationship quality: β=0.34; IT infrastructure: β=0.29; all p<0.01), and a strong SCR-firm performance relationship (β=0.76, R²=0.58). Sector-wise analysis reveals that pharmaceutical and food and beverage sectors demonstrate higher baseline SCR than electronics and textiles. State-wise resilience index analysis identifies Gujarat, Maharashtra, and Tamil Nadu as high-resilience clusters, while Bihar, Odisha, and Uttar Pradesh score below the national average of 60.2/100. Practical recommendations for SME managers and policy makers are provided.
Keywords:
supply chain resilience, SME performance, supply chain disruption, Indian manufacturing, structural equation modelling, supplier relationship, IT infrastructure, top management commitment, supply chain risk managem
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