Enhancing MSME Competitiveness through Sustainable Procurement Based Prioritization of Critical Factors using AHP

This study aims to identify the key critical factors that MSMEs (Micro, Small, and Medium Enterprises) should focus to be competitive in the market with the introduction of sustainable procurement (SP) process while minimizing capital costs. A framework was developed through a literature review on SP, identifying the most critical factors for MSMEs. Analytical Hierarchy Process (AHP) model was adopted for the data collected from questionaries and discussions with MSME experts and owners. The findings indicates that Information and Technology (IT) (0.49 priority), Supplier relationship (SR) (0.23), Costs (0.18), and Organization Strategic capability (0.08). This finding suggests that MSMEs prioritize IT to ensure SP and best value followed by SR, cost and strategic capabilities for more effective SP. Moreover, this study is unique in its focus on MSMEs at specific Tier-2 city in Tamilnadu, offering insights into the procurement challenges and practices. It highlights the need for continuous improvement in MSME supply chain operations. The research is limited by its regional focus which may limit the generalizability of the findings. Additionally, the purposive sampling(n = 22) which may not represent the broader perspectives. The study provides actionable insights for MSMEs to enhance their operational strategies, which can contribute to job creation and sustainable economic growth. It also offers valuable knowledge for researchers and practitioners preparing for future changes in the sustainable procurement.