Title: Strategic Sourcing as a Catalyst for Growth: Exploring its Impact on SMEs in Emerging Markets
Authors: Akhuewu Emmanuel Eromosele and Mbagwu Ignatius Nwabudo
Volume: 8
Issue: 12
Pages: 85-97
Publication Date: 2024/12/28
Abstract:
This systematic review examines the impact of strategic sourcing on the growth of small and medium-sized enterprises (SMEs) in emerging markets. A qualitative analysis of academic and gray literature reveals that strategic sourcing has a multifaceted impact on SME growth, encompassing financial access, evaluation criteria, compliance monitoring, capacity building, access to market share, and access to employment. The study draws on Social Exchange Theory (SET), Institutional Theory, and Dynamic Capabilities Theory to provide a nuanced understanding of the strategic sourcing-SME growth nexus. The findings of this study have important implications for policymakers and practitioners seeking to promote SME growth and development in emerging markets. To harness the potential of strategic sourcing, policymakers and organisations are recommended to foster inclusive financing ecosystems, streamline regulatory frameworks, develop SME capacities and market access, and promote decent work and inclusive growth. By adopting these policy recommendations, emerging markets can unlock the growth potential of their SME sectors and promote sustainable economic development. This study contributes to the existing literature on strategic sourcing and SME growth, providing a comprehensive framework for understanding the complex relationships between these variables.