article · Journal of Economics
This research investigates the use and importance of non-financial performance measures within the supply chain management of small and medium-sized enterprises (SMEs). While financial indicators often receive more attention, this study aimed to highlight the role of non-financial measures in enhancing SME growth and profitability. The methodology involved administering questionnaires to a selection of manufacturing SMEs in Cape Town, South Africa, with data analysed descriptively. Key findings indicate that SMEs acknowledge the significance of non-financial measures and integrate them into their supply chain management to some degree. However, a notable observation is the lack of formal implementation for these measures within these businesses.
Understanding how SMEs use non-financial performance measures is crucial for their sustainable growth and profitability. By highlighting the current informal use and lack of formal implementation, this research points to areas where SMEs can improve their strategic management, potentially leading to better operational efficiency and competitive advantage.
This research identifies a gap in the formal implementation of non-financial performance measures in SME supply chain management. This insight could inform the development of practical frameworks, training programmes, or software tools designed to help SMEs formally integrate and track these measures. Potential users include SMEs themselves, business consultants, and organisations supporting SME development. This represents early-stage research identifying a need, rather than offering a ready-to-market solution.
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Performance measures in the supply chain have become one of the vital factors in enhancing the growth and profitability of small medium enterprises (SMEs), however, with focus more on financial indicators than non-financial ones. This paper therefore attempts to redress the balance by discussing the extent to which SMEs make use of non-financial performance measures and argues for their importance. It is based on research within a positivistic paradigm, with the use of questionnaires administered to purposively selected SMEs in manufacturing around Cape Town, South Africa. The data was analysed to generate descriptive results through SPSS. The major findings indicate that SMEs do consider and recognise the significance of non-financial measures and to some extent incorporate them in their supply chain management (SCM). However these measures are not formally implemented.
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DOI: 10.1080/09765239.2014.11885001
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