Modeling the supply chain finance (SCF) barriers of Indian SMEs using BWM framework

Purpose The presence of barriers in the supply chain finance (SCF) of small and medium enterprises (SMEs) cripples the productivity and efficiency of SMEs and makes it challenging to execute strategies. SCF barriers can be internal and external which tend to impede the desired performance and profitability of the SMEs. Therefore, the purpose of this paper is to discern the possible SCF barriers and analyze the criticality of the barriers to understand how they impact on the SMEs market of India. Design/methodology/approach This study proposes a novel hybrid approach called best worst method (BWM) to evaluate the discerned barriers. BWM technique is espoused to appraise the SCF barriers, so that the decision-makers can rationally comprehend the reason behind dominance of one barrier over other. Although such an assessment may possibly vary for different industries, that is why proposed approach is generic in nature and can be applied in real-world cases. The robustness of the suggested model is also assessed through sensitivity analysis. Findings SCF barriers are identified through extensive literature review and inputs from the industry. The results derived through BWM approach concludes that the “Financial Barriers” are censorious and foremost inhibitors for SMEs to flourish, therefore, require special attention by the top management. Likewise, “Supply and Suppliers Barriers” are ranked second, conversely, “Market and Policy Related Barriers” are found least critical in nature in SMEs of India. Research limitations/implications This work is specific to SCF barriers and other barriers have not been touched upon. The study is based on expert panel opinion for seeking information which is restricted to Indian context, as the members of the expert panel belong to same geography. Practical implications This research could aid decision-makers and strategists to comprehend the deep-rooted initiatives to achieve a comprehensive implication of SCF across SC network. By assessing SCF barriers, this study helps SMEs to understand their shortfalls and in answering the pertinent question of how to gain excellence in this intensely competitive market. Originality/value SMEs are considered as engines of economic development worldwide. India too is striving for increasing the growth and development of SMEs in every aspect, to gain operational excellence, to make profits or employment generation but presence of SCF barriers makes it difficult to achieve this in Indian SMEs. Therefore, it is imperative to analyze the criticality of the SCF barriers to understand how they impact on SMEs market of India. The paper illustrates the modeling of SCF barriers among SMEs using BWM approach, exhibiting how comprehending barriers can improvise productivity and efficiency of the SCs in SMEs.