The impact of manufacturing capability, networking capability and digital capability on Smes firm performance in India.

Abstract

There is a considerable signal from empirical studies that many factors influence firm performance. This conceptual paper aims to examine the effects of two key TICs variables manufacturing capability and networking capacity as well as digital capability, on the performance of manufacturing SMEs operating in India. The conceptual framework was developed after a systematic review of past literature. The present paper found the important influence of the study’s variables on firm performance. Furthermore, the study provided some understanding of how manufacturing capability, networking capability and digital capability affect SMEs' performance in India. These independent variables are important in influencing Manufacturing SMEs' firm performance. The paper emphasizes the critical value of manufacturing capability, networking capability and digital capability for SME owners/managers consideration when acting on behalf of their company; failing which the SMEs could experience poor performance. Resource-Based View (RBV) theory and Dynamic Capability Theory (DCT) theories were used to underline the conceptual framework. In addition, some implications of this conceptual model for theory and practice are addressed.