The impact of supply chain management practices on the overall performance of small and medium-sized Finnish enterprises

Abstract

This thesis delves into the topic of the impact of supply chain management (SCM) on the overall performance of small and medium-sized Finnish enterprises (SMEs). The thesis focuses on what prevalent SCM methods are implemented in SMEs globally by looking at previous literature on this topic and comparing the findings to the findings presented in this thesis. As the studies focusing on supply chain management are relatively new and have not been studied in the context of Finnish SMEs, this thesis can bring insight into how the Finnish market differs or is similar to SMEs located in different geological areas.

The study of this thesis was conducted as a case study with multiple firms and by utilizing mixed methods research, which can answer questions of “how many” and “how,” which ultimately can bring more validity to the studied topic than by using a singular approach. The findings of the 22 companies that answered the questionnaire were then compared to previous literature to find similarities and differences.

The findings show that Finnish SMEs struggle mainly from the same issues as SMEs in other regions that are implementing SCM into their operations. While generally SCM brings more value and enhances the performance of companies, this is not necessarily the case with SMEs. The main reasons are that SMEs might not have a qualified enough person to handle SCM operations or that they lack the resources to implement SCM operations successfully. This data is gathered and analyzed quantitatively and qualitatively by utilizing both numbers and words to reach meaningful conclusions, which makes it also easier to compare to previous studies, which have had both quantitative and qualitative research completed.

This research supports the findings made in previous literature on how SCM can bring more value to companies, but also on how SMEs can fail to do so. The level of success in SCM implementation is dependent on the amount of resources companies allocate in the vital areas and on how deeply the implementation is completed. Finally, practical implications are given, which can help SMEs improve their activities to reach more satisfactory conclusions in their SCM operations. Overall, this thesis contributes to understanding the connection between SCM and SMEs and therefore expands on the literature on the topic previously, while also contributing new solutions to the field of SCM in SMEs.