Small and medium enterprises (SMEs) continue to contribute to economic growth in the US. While several SMEs operate in the demand chain, little research exists on how these businesses compete in this chain. Specifically, what are the capabilities of SMEs that can add not only customer value, but also ensure their survival in the demand chain? In addition, what are the challenges that they face? This paper provides an exploratory, qualitative study of these issues. Two SMEs in southern India were interviewed. In addition, directions for future research and implications for managers are provided.
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