Barriers to Adoption of Supply Chain Management in India: A Theoretical Model and Scale Development

Abstract

The diffusion of Supply Chain Management (SCM) is low in India despite its many benefits. The purpose of the present study is to create a theoretical model and develop a new scale for investigating the factors that hinder the adoption of SCM in India. The theoretical model has been created based on literature from organizational innovation adoption, organizational decision making, barrier framework, and expert opinion. The scale development followed established practices. The data for scale purification was collected through a survey conducted among 250 large manufacturing firms in India. The present study has created the first theoretical model to investigate barriers to SCM adoption in India. The model comprises four groups of factors: SCM attributes, top management factors, organizational factors, and business environment factors. A new scale was also developed that is reliable and valid. The theoretical model and the scale provide an avenue for researchers and practitioners to study the factors impacting SCM adoption in India. The model may also be useful for firms in other developing economies where SCM diffusion is low, and for barrier studies in other disciplines.