Exploring the Linkages Between Firm’s Liabilities and Supply Chain Practices: Evidence from Indian SMEs

Abstract

The aim of this study is to clarify the supply chain and its importance by looking at how it affects the liabilities of the corporations. The research will evaluate the strengths and weaknesses of their supply chain practices and provide recommendations to strengthen the supply chain and reduce liabilities. This study utilised panel data techniques to analyse the data. The results indicate that operational cash flows have a positive effect, while long-term investment negatively impacts the liabilities of an organisation. Interestingly, financing cash flows are independent with respect to firms’ liabilities. To achieve better results, operational flows must be improved. Corporate liabilities can impact the financial performance of an SME. Hence, the policy of providing incentives for improved supply chain practices can further promote SMEs to strengthen their supply chain. Training programs and infrastructure improvement could also help to strengthen efficiencies in operations within supply chains.