The competitiveness of SMEs in a globalized economy Observations from China and India

摘要

Purpose - The purpose of this paper is to analyze different challenges for small and mediumrnenterprises (SMEs) in India and China following globalization. It aims to describe the status of thesernenterprises and examine the roles of government policies and strategy development forrncompetitiveness.rnDesign/methodology/approach - A questionnaire-based survey was conducted, which producedrn241 valid responses. Of these, 80 percent were from SMEs. Statistical analysis of the data acquiredrnfrom survey used a reliability test, West and correlation analysis. A relevant literature reviewrnpinpoints salient issues in the environment of the SMEs.rnFindings - The governments of China and India have launched various promotional schemes forrnSMEs. Various challenges for SMEs in these countries are similar; however, the rate of growth isrndifferent. Indian SMEs give more attention to supplier development, total productive maintenancernand the organization's culture. Chinese SMEs pay more attention to relationship management andrncost reduction. Human resource development and quality improvement are also highly correlatedrnwith competitiveness.rnResearch limitations/implications - SMEs should focus on developing their human resourcesrnand improving product quality. This effort will help SMEs retain human capital as well as increasernthe demand for their products. Similar studies could explore Chinese SMEs in-depth for additionalrncomparisons.rnOriginality/value - This paper will help SMEs in shaping their competitive strategies and policyrnformulation by respective governments.