Comparison of Supply Chain Management (SCM) adoption at Small and Medium-Sized Enterprises (SMEs): A review from Hungary and Indonesia

Large enterprises recognized first the importance of Supply Chain Management (SCM) strategy to achieve competitive advantage and process efficiency. Small and Medium-Sized Enterprises (SMEs) have specific challenges in adaptation. The authors conjectured that geographical and supply chain differences have a major effect on the adaptation level of SCM strategy and methods, especially for SMEs. To investigate it, this paper compares two countries, Hungary, and Indonesia. The research focus is on SMEs, based on a cross-sectional survey of 274 Hungarian and 110 Indonesian enterprises with informants mainly related to top management. The data indicated that in Indonesia, with a larger, more complex geographical structure and more advanced SCM capabilities, the SMEs have a higher implementation level of SCM strategy in their organization strategy compared to Hungary. However, the sample indicates that the tendencies are similar in both countries interpreting the inter-enterprise value chain and in utilizing SCM methods for cooperation with other parties, mostly using Vendor Managed Inventory (VMI) and Just in Time (JIT).