BARRIER FACTORS OF SUPPLY CHAIN MANAGEMENT IMPLEMENTATION IN SMALL AND MEDIUM-SIZED ENTERPRISES: EVIDENCE FROM HUNGARY AND INDONESIA

Small and Medium-Sized Enterprises (SMEs)have major difficulties in implementing Supply ChainManagement (SCM) strategy. Previous studies show thatdifferent types of industries in size, focus, and locationhave different SCM implementation problems but there isa lack of research on the effect of supply chain structure.This paper addresses this gap by comparing the barrierfactors of SMEs with different supply structures. Thesurvey revealed the ranking of the barrier factors in twocountries and analyzes the effect of the different SCMstructures. With a more complex supply structure, theIndonesian companies suffer more from theirorganizational factors as their top barriers in the rankorder: inadequate performance measure, and managementcapacity, lack of inter-departmental cooperation incommunication, and unclear organization objective. WhileHungarian SMEs, having a simpler supply structure,evaluated the lack of financial resources, employees,knowledge of SCM, and poor commitment from otherSCM partners as their top barrier factors. The outcomes ofthis research provide valuable knowledge to managers inpriorities of SCM strategy implementation depending onthe complexity of their supply structure.