A Study on the Impact of Production Planning & Control as Management Function on the Survival of SME Business

Abstract

This study looks at how the organization's performance is affected by identified variables like how work is forecasted, planned, and controlled, the demographics of key employees, standardization methods, and IT use. A model and framework were developed based on the literature. The empirical testing of the model was conducted after data collection using a questionnaire schedule administered among selected respondents of Small and Medium Enterprises (SMEs) in India. There were 382 responses in the final data set. Hypotheses linking the performance of SMEs to the use of forecasting, planning and control were formulated and tested. To reduce the amount of data and determine the structure of the factors, exploratory factor analysis was used. Using the logistic regression model, organizations with high and low performance were categorized. The structural relationship between organizational performance and the dependent variable was investigated using confirmatory factor analysis.