Logistics

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Supply chain constraints in the South African coal mining industry
(2011-06-10) Mathu, Kenneth M.; Pooe, David; Garnett, Andrea
The study explored the South African coal mining industry and it’s role players to establish the causes of the bottlenecks/constraints experienced in the coal mining industry supply chain. A qualitative research paradigm methodology was used. Both theoretical and philosophical assumptions were utilised with inferences from and references to works by other researchers to broaden the knowledge horizons for the study. Thirteen supply chain executives and professionals from the key role players in the coal mining industry were interviewed and provided invaluable input for the study. The study determined the presence of communication barriers between the industry role players in the public and private institutions that culminated in main themes and sub-themes being established from which the industry constraints were uncovered. The study identified six main constraints affecting the various role players within the coal mining supply chain and it culminated in the model that would enable the industry to minimise such constraints. To this end, the study proposes the development of an Integrated Strategy for the Development of Coal Mining (ISDCM).The model is based on the public and private partnership arrangement that would alleviate most of the prevailing constraints when implemented. The model would furthermore have the capacity to rectify most of the existing constraints. It would be funded from the commercial sector and would operate on triple bottom lines of economic, social and environmental factors, with equal weight. This is a desirable direction for the future in order to maintain sustainable development. Emanating from the study are policy and research recommendations for the South African coal mining industry, covering the coordination of the critical areas of the proposed integrated strategy for the development of the coal mining industry. Such recommendations include further research into new coal mines and power stations as well as perceptions and expectations of potential investors in the industry, among others.
Evaluating job satisfaction and job insecurity within an Engineering, procurement and construction (EPC) firm in South Africa
(Vaal University of Technology, 2012-09) Wentzel, Colleen Bernadette; Raijmakers, L. R., Dr.
The construction industry is an important player in the economy of South Africa and therefore job satisfaction and existence of job insecurity of employees in this sector needs to be researched (Thwala & Monese 2008:2). This study comprises a literature review and an empirical study on job satisfaction and job insecurity and its prevalence in an engineering, procurement and construction (EPC) company in South Africa. This study provides insight on whether employment status, that is, contract versus permanent, has any impact on levels of job satisfaction and job insecurity of construction employees. Quantitative research, using the survey method, was used for the empirical portion of the study. All employees of the EPC company were surveyed and included workers permanently employed as well as employees employed through labour brokers, that is those on contract. The EPC company in this study employs staff in various categories, such as section managers, engineers, project managers and site employees. The total population included 145 employees of whom 41 were permanent employees and 104 were employed through labour brokers. The response rate was 39 per cent. Conclusions emanating from the research questions identified marginal differences in the reported levels of job satisfaction and job insecurity for both permanent and contract employees. Contract employees reported slightly higher job satisfaction and job insecurity levels when compared to permanently employed counterparts. The value of this study lies in the fact that no research has been conducted on job satisfaction and job insecurity and its prevalence in the EPC sector in South Africa. This study provided insight into whether employment status - contract versus permanent - had an impact on the reported levels of job satisfaction and job insecurity of employees at an EPC company.
Strategic planning and its relationship with the performance of small and medium-sized enterprises in Gauteng Province
(2012-10) Sandada, Maxwell; Pooe, D.; Dhurup, M.
and medium sized enterprises (SMEs) are the mainstay of economies and societies of many countries around the world. These enterprises are critical to the economy because of the way in which they contribute to the Gross Domestic Product, export revenue generation, innovation, the provision of goods and services thatlarge enterprises depend upon, and the creation of employment opportunities, social stability and improvement of economic welfare. SMEs operate within the economic environment characterised by volatility, dynamism and competitive markets that may seriously threaten their survival. In South Africa, the operating environment for SMEs is constantly changing in the face of a volatile economic environment and a highly competitive market. For SMEs to weather the storm of such volatility and competitive climate, they need to engage in strategic planning processes. While strategic planning research in large organisations has been studied extensively, little attention has been paid to strategic planning of small and medium sized enterprises. Strategic planning has not significantly filtered down to the SME sector. SMEs which practice strategic planning have plans, which are unstructured, less comprehensive and sporadic. There is little evidence of empirical research that has sought to evaluate strategic planning within the sphere of small business research. Therefore, despite the widespread recognition of the importance and significant contributions of SMEs, research on these small businesses remains scarce. There is need for more systematic research aimed at revealing the true nature of strategic planning in SMEs. Despite the contributions of a number of researchers in the field, there is still no universal agreement as to the impact of particular types of planning on SME performance. The study analyses the relationship between strategic planning and the performance of SMEs. It is unique in that rather than using the traditional objective performance measures, subjective measures are used to measure the performance of SMEs. The objective of this study was to establish the relationship between strategic planning and the performance of SMEs measured by perceptual measures of business performance. It also sought to ascertain the relationship between strategic planning and the plans of the business, as well as determining the relationship between business performance and its plans. Another objective was to examine the extent to which SMEs in South Africa have adopted the strategic planning practices. Finally, this study sought to determine if there are differences in strategic planning practices with regard to demographic variables, namely gender, age, and position occupied in the business. A quantitative method was used. Surveys were conducted with 415250 SMEs, which were identified by convenience sampling method. Data from owners/managers of these SMEs was collected using self-administered structured questionnaires. Factor, correlation and regression analyses were conducted and the findings were discussed. The main components of strategic planning include environmental scanning, business mission and vision, formality of strategic planning, employee participation in the strategic planning process, source of information about the environment, strategy implementation incentives, monitoring, evaluation and control, and time horizon of strategic planning. The finding of this study shows that there is a positive causal relationship between strategic planning and the performance of SMEs measured by perceptual measures of business performance. It was also found that there is a mixed relationship between strategic planning and future plans of the SMEs. An additional finding is that business performance has a positive relationship with the plans of the business. The results also indicate that the majority of SMEs practice strategic planning. Finally, the results reveal that the gender, age and occupation of the respondent do not influence the strategic planning practices in SMEs. The only strategic component that depends on the occupation of the respondent is the use of mission and vision statements. Given that today’s business environments for SMEs are characterised by high levels of competition, uncertainty and turbulence, it is recommended that SMEs should adopt more strategic planning practices so that they can make informed decisions. In order to ensure their success and sustainability, SMEs should scan the environment more frequently and seriously than they currently do.
The implementation of green supply chain management: minimising environmental risk in the South African manganese and phosphate mining industry
(2013-12) Bvuma, Khomotso; Pooe, R. I. D.; Mathu, K. M.
This study explored the implementation of green supply chain with regard to minimizing environmental risk in the South African manganese and phosphate mining industries. A qualitative research paradigm methodology was used. Theoretical assumptions were utilized. References by other researchers in the green supply chain and mining supply chain were also used to broaden the knowledge horizons for the study. A total number of twelve supply chain and environmental professionals from the key role players in the South African manganese and phosphate mining industries were interviewed and provided valuable input to the study. The study determined lack of information sharing between the role players in the supply chain that lead to the discovery of themes and sub–themes. The study identified seven main themes and eleven sub-themes as challenges in the implementation of green supply chain. Recommendations to address the challenges areoutlined and include the introduction of cleaner production practices by using cleaner technologies, inclusion of environmental aspects in the sourcing strategy, among others. The achievement of all these will ensure sustainable development. Originating from the study are research recommendations for the South African manganese and phosphate mining industries. The recommendations include further research to establish a green supply chain model as well as perception and expectations of policy makers in the industries.
An evaluation of the supplier relationship management and procurement practices at a parastatal: the case of Eskom Holdings Limited
(Vaal University of Technology, 2014) Jonathan, Ellsworth Chouncey; Mahlasela, E. R., Dr.; Pooe, David, Prof.
The primary objective of this study was to investigate the supplier relationship management practices at Eskom. Currently, the challenges faced by the parastatal include diminished reserve margin, increased unplanned generation plant outages as well as coal supply and quality constraints coupled with ever-rising primary energy costs. It is, therefore, evident that as a national asset, Eskom cannot overcome the current challenges successfully without strong partnerships with key suppliers. A framework for supplier management containing four different elements was researched. The first element, which forms the basis for all supplier management operations, is the development of supplier management relationships. The framework also includes supplier collaborations and the various aspects of discovery, supplier pre-selection, and supplier selection, which relate to finding, qualifying, and choosing the best suppliers. Lastly, and also very important was the supplier development and localisation as well as the legislature thereof. A quantitative cross-company survey was conducted using a sample of 260 suppliers, who have been on the database for more than twelve (12) months and who responded to the business requests to update the data on the system. The findings of the study are largely supported by the literature. Finally, the study makes recommendations and highlights further research, managerial, and policy implications.
The relationship between organisational resources and organisational performance in a national government department
(2014-01) Mafini, Chengedzai; Pooe, R. I. D.; Van Zyl, Y.
Organisational performance in the public sector has emerged as a critical topic in the post-1994 era in South Africa. This could ostensibly be attributed to the inability of the majority of most public organisations in the country to deliver a satisfactory standard of service to the public. An intense controversy has also emerged the world over on the selection of performance measures that are appropriate for use in public organisations. This debate is actuated by the existence of a multiplicity of performance measurement indices as well as frameworks that can be applied to manage performance in organisations. The existence of these multiple measurement mechanisms tends to confound the entire process of managing organisational performance. Another unresolved controversy focuses on the extent to which various organisational resources impact on organisational performance. The purpose of this study was to examine the relationship between organisational performance and three organisational resources; specifically, the human factor, organisational systems and organisational processes. A quantitative design was adopted in which a survey questionnaire was administered to 272 managers and employees of a South African National Government Department. Respondents were selected using a blend of purposive sampling and convenience sampling approaches. Data were analysed using the Statistical Packages for the Social Sciences (SPSS version 20.0). Reliabilities were measured using Cronbach’s alpha coefficient. Exploratory factor analysis was used to identify the human factors, organisational systems and organisational processes. Spearman’s correlation and multiple linear regression analyses were used to investigate the relationship between organisational performance and the sub-elements under each of the three organisational resources. The impacts of each of the three factors on organisational performance were compared using the mean-score ranking technique. Performance of the National Government Department was measured using the four performance yardsticks of the Balanced Scorecard; namely, customer satisfaction, financial performance, innovation and learning, and internal processes The findings of the study revealed that performance of the National Government Department was highest in four strategic areas; which are the promotion of good corporate ethics and values, client satisfaction, service quality and relations with external organisations. However, performance shortfalls were observed in four key areas; namely, organisational speed, attrition of manpower, overloading of employees and the overburdening of divisions with high workloads. Correlation analysis showed that there were positive relationships between organisational performance and the five human factor components; life satisfaction, quality of work life, ability utilisation, creativity and autonomy. Regression analysis indicated that there were significant and predictive relationships between organisational performance and three human factor elements; namely, quality of work life, ability utilisation and life satisfaction. Among the five human factor elements, life satisfaction exerted the greatest impact on organisational performance. Significant, positive and predictive associations were also found between organisational performance and three organisational system factors; quality, innovation and inter-organisational systems, with quality exerting the greatest impact on organisational performance. Significant, positive and predictive relationships were further observed between organisational performance and the four organisational process factors identified in the study; namely, organisational structure, organisational change, team processes and organisational change. Among these, team processes exerted the greatest influence on organisational performance. Overall, the human factor applied the greatest impact on organisational performance, followed by organisational processes with organisational systems having the least impact. Based on these findings, recommendations were made and implications for further studies were suggested. The findings of the study provide empirical confirmation of the effectiveness of the Balanced Scorecard as a tool for the measurement and management of performance in public sector organisations. Additionally, managers in different public organisations may enhance the performance of their organisations by optimising the sub-elements of the three organisational resources examined in this study.
The influence of supply chain networks, flexibility and integration on the performance of small and medium enterprise in the Southern Gauteng region
(2015) Omoruyi, Osayuwamen; Dhurup, M.; Pooe, R. D.
The South Africa economy has embraced the importance of small and medium enterprises (SMEs) as agents of economic growth and sustainability. However, for SMEs to be more efficient and effective towards the growth of the economy, it is important for SMEs to implement and take cognisance of the global competitive strategy among the so-called “best in class” organisations in order to also sustain and grow their business. The supply chain network with its flexibility has become the most commonly used business strategy worldwide for the improvement of performance in organisations, more especially among larger organisations. In today’s competitive environment, successful organisations are those that have been able to link their business functions within the organisation itself as well as across other businesses outside the organisation. Competitive challenges in the modern business environment have resulted in the need for organisation to integrate business processes strategically across other business units within the supply chain network. Network perspective theory, social network theory, network management theory and relational view theory are discussed to better understand the importance of SMEs supply chain network, flexibility and integration. The purpose of this study was to examine the influence of supply chain network, flexibility and integration on the SMEs business performance in the Southern Gauteng region. The research survey was conducted in the Meyerton, Vereeniging and Vanderbijlpark and 401 SMEs participated in the study. SPSS 22.0 was used to analyse the data and AMOS 22.0 was used to perform the confirmatory factor analysis. The structural equation modelling (SEM) was used to assess the proposed model fit and to test the statistically significant relationship of the hypothesis. The research study results revealed that supply chain network, flexibility and integration positively influence SMEs business performance. This study contributes new knowledge to the existing literature by providing a research framework that can enhance SMEs performance and also provide practical recommendations based on the research findings for SMEs and for future research. Furthermore, as one of the first studies addressing the influence of supply chain network, flexibility and integration on the performance of SMEs in the southern Gauteng region it has generated new insights and information as well as outlined the strategic reasons for SME owners and managers to improve on their business relationships.
The influence of supply chain practice on supply chain performance in South Africa
(2015-03) Hove, Progress; Pooe, David; Mathu, Ken
The effective implementation of intra-firm and inter-firm supply chain practices and processes such as supply chain e-collaboration and sharing of important information among supply chain partners, is commonly associated with the creation of supply chain competitiveness and enhanced performance. However, little attention has, thus far, been given to the empirical investigation of the influence of the successful implementation of intra-firm supply chain practice on supply chain e-collaboration, strategic information sharing, supply chain competence and supply chain performance in South Africa. The principal objective of this study was to fill this void by investigating the influence of intra-firm supply chain practice on supply chain e-collaboration among supply chain partners in South Africa. Secondly, the study sought to determine the influence of supply chain e-collaboration on strategic information and supply chain competence among supply chain partners in South Africa. It also aimed to examine the influence of strategic information sharing on supply chain competence and ultimately on the supply chain performance of supply chain partners in South Africa. Lastly, the study sought to ascertain the influence of supply chain competence on supply chain performance of supply chain partners in South Africa. A positivist approach that allowed a quantitative research method in data collection was used in this study. Data from a sample of 280 collaborating firm owners/managers from all the industries of South Africa’s nine provinces was used for the final data analysis of this research. A principal component analysis was performed for factor reduction and dimensional groupings using SPSS 21 software. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were performed for model fit assessments and hypotheses tests respectively, using the Analysis of Moments of Structure (AMOS 21) software. Multiple Regression analysis was performed using SPSS 21 software, and was used for comparison and support of the weak and unsupported SEM hypotheses tests. The principal finding of this study reveals that intra-firm supply chain practice has a strong positive and significant influence on supply chain e-collaboration among supply chain partners in South Africa. In addition, the results showed that supply chain e-collaboration can strongly and significantly enhance the sharing of strategic information among supply chain partners in South Africa. The findings further revealed that supply chain e-collaboration has an ability to create a supply chain competence among supply chain partners in South Africa. The study’s empirical findings also indicate that strategic information sharing has a weak positive and significant indirect influence on supply chain competence and supply chain performance. Lastly, the SEM findings showed that supply chain competence has a weak negative and insignificant influence on supply chain performance. However, the multiple regression analysis showed a weak negative and significant influence of supply chain competence on the supply chain performance of supply chain partners in South Africa. The conclusions and implications of the empirical research findings are provided and recommendations are suggested. The study suggests a new supply chain management conceptual model for research. It also proposes a new supply chain management implementation framework to help guide firms to formulate strategies for improving supply chain performance. The study recommended that the collaborating firm owners/managers consider: training and education for all employees on the importance of supply chain practices and processes such as supply chain e-collaboration and strategic information sharing. Furthermore, it is recommended that collaborating firm owner/managers should consider adopting advanced technologies and information sharing structures to improve their supply chain performance. The collaborating firm owner/managers were also encouraged to align their incentives with the supply chain roles and activities assigned to the supply chain partners. Policy makers were encouraged to make e-business financing arrangements for supply chain collaborating firms; promote synergies between collaborating small and mediums firms and large technology vendors; and ensure affordability of supply chain e-collaboration technologies. The study attempted to address the intra-firm supply chain practice deficiencies on the side of both the supply chain e-collaborating firms and the government.
The influence of knowledge-sharing, business strategy alignment and long-term relationships on supply chain performance in the small and medium enterprise sector
(2015-04) Mofokeng, Teboho Mantebele; Chinomona, R.; Makhitha, K.
The purpose of this study was to investigate the influence of knowledge-sharing, business strategy alignment and long-term relationship orientation on supply chain performance in the Small and Medium Enterprise (SME) sector. Particularly, the study sought to examine the hypothesis in the context of SME buyers and their suppliers. SMEs are particularly relevant to both developed and developing countries. In South Africa, SMEs are perceived to be an engine for growth for both the economy and the community. As such, the study sought to investigate underlying variables that influence the supply chain performance of SMEs for the purpose of identifying ways in which the Sector can improve performance. A conceptual model was developed, drawing from the theory of relational cohesion. Small and Medium Enterprises in the province of Gauteng, South Africa formed the population of the study. Essentially, the predicting roles of knowledge-sharing and business strategy alignment on the supply chain performance of SMEs were evaluated. Furthermore the mediating role of long-term relationship orientation was examined. A survey was conducted in the cities of Johannesburg, Vereeniging and Vanderbijlpark and research data was collected from 341 SMEs. Statistical Package for the Social Sciences (SPSS) 22 was employed to analyse data as well as Analysis of Moment Structures (AMOS) 22 where Structural Equation Modelling (SEM) was undertaken. The results revealed that the research constructs knowledge-sharing, business strategy alignment and long-term relationship orientation influence supply chain performance in a positive way. The findings realized will contribute to the existing body of buyer-supplier relationships literature and increase our knowledge in the field. Pragmatic implications are provided based on the findings as well as recommendations and avenues for future research.
Supply chain relationships as predictors of supply chain performance in South African SMEs
(2015-05) Pfanelo, Nematatani; Chinomona, Richard; Mathu, Ken
The growth and development of SCM is attributed to number of factors such as partnership, collaboration, integration and relationship commitment. Despite increasing awareness of the importance of joint venture to organisations, research on the supply chain relationships (supply chain partnership, collaboration, integration and relationship commitment) and performance have received little attention. Therefore, using a data set of 271 individuals from the small and medium enterprise (SMEs) sector in South Africa, this study examines the influence of supply chain partnerships on collaboration, collaboration on integration, integration on relationship commitment and relationship commitment on performance. Structural equation modeling (SEM) method was used to analyses the data collected whereby individuals agrees with that supply chain relationships increase performance in the work environment. The study has developed a supply chain management (SCM)-based performance measurement system (PMS) for the case of SMEs. Such a framework may help SMEs managers to establish their own supply chain functions and strategically plan improvements for weak areas. In addition, it may remain helpful for benchmarking current practices with industry norms requirements. Quite often, companies dealing with a large number of performance measures derived and expanded based on the suggestions from employees, consultants and past experiences (history) forget to realise that supply chain performance measurement can be better addressed when they joint venture.
The influence of supplier information sharing and information quality on strategic partnerships and internal lean practices among small to medium enterprises in South Africa
(2015-05) Sikhwari, Tina Mesmer; Chinomona, R.; Mathu, K.
The focus of this study was to examine the relationship between information sharing, information quality, strategic partnership and internal lean practices among Small and Medium-sized Enterprises in South Africa. It is essential to understand practitioners’ and entrepreneurs’ current knowledge towards the topic at hand in order to determine what interventions would be most beneficial in helping to curb the problem of the lack of knowledge in this area and to understand the underlying causes behind the problem, while creating awareness and giving new insight to those who are already aware of this topic. Data was collected from a sample of 350 Small to Medium Enterprises and the measurement items in the measuring instrument were measured using a 5-point likert scale. Thereafter the collected data was coded and analysed by means of structural equation modelling using the AMOS 21 software package. The results indicate that supplier information sharing and information quality have a strong influence on strategic partnership and in turn strategic partnership has a strong influence on internal lean practices among Small to Medium Enterprises. This indicates that the level and quality of information shared between Small to Medium Enterprises and their suppliers has a positive effect on the strength of their partnerships as well as on the internal practices of each Small to Medium Enterprise. Based on these results, conclusions were drawn and recommendations were put forward on how internal lean practices in Small to Medium Enterprises can be improved by means of information sharing, information quality and strategic partnerships.
Supply chain dynamism, information sharing and inter-organisational relationships and their effect on supply chain performance
(Vaal University of Technology, 2015-09) Mashiloane, M. W.
One of the most significant changes in the paradigm of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather as supply chains. In this emerging competitive environment, the ultimate success of the business will depend on management’s ability to integrate the company’s intricate network of business relationships. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organisational performance since competition is no longer between organisations, but among supply chains, which can be obtained through the sharing of appropriate information between supply chain partners and forming healthy inter-organisational relationships. The purpose of this study is to investigate the influence of supply chain dynamism, information sharing and inter-organisational relationships on supply chain performance in manufacturing, service and mining in the Gauteng Province of South Africa. Data for the study were collected from 350 prominent organisations and the relationships proposed in the framework were tested using different statistical techniques. The results indicate that supply chain dynamism have a positive influence on both information sharing and inter-organisational relationships. They also indicate that higher levels of information sharing can lead to enhanced competitive advantage and improved supply chain performance, which further indicate that the more organisations have healthy inter-organisational relationships, the better the supply chain performance becomes. These results have value to both the academic and business worlds as they provide verification of the widely held belief of the value of effective supply chain management and performance.
An empirical exploration of supply chain constraints facing the construction industry in South Africa
(Vaal University of Technology, 2016) Pillay, Poobalan; Mafini, Chengedzai, Dr.; Pooe, David, Prof.
The South African Construction Industry is one of the largest contributors to the gross domestic product of the country as well as to employment. It has, however, been experiencing significant challenges due to multifaceted factors. The main objective of this research was to identify the supply chain management constraints within the South African Construction Industry and how these can be overcome. This study is by nature descriptive and exploratory and contains qualitative elements. The problems were identified through a literature review, focused group discussions and interviews with major construction companies in South Africa. The findings also indicate that the main supply chain management constraints are to a greater extent internal and typical of supply chain methodologies and approaches. These constraints are among others the lack of coordination, collaboration and commitment between suppliers and clients within the supply chain, poor leadership in key areas of systems, design problems (many changes and inconsistent information), deficient internal and external communication and information transfer, inadequate management within the supply chain, mainly poor planning and control just to mention a few. A model based on supply chain system management as well as the Theory Of Constraints (TOC) has been developed that can be a useful tool to address the constraints in the construction sector. Originating from the study are applicable recommendations for the South African construction industry supply chains, covering key themes that have been articulated in the study, particularly benchmarking to the theory of constrains. Such recommendations include further research core components of supply chain such as, collaborations, logistics and how each of system components can be linked to performance of the supply chain management system.
Perceptions of supply chain professionals on the relationship between supply chain challenges and business performance in the food industry in Gauteng province
(Vaal University of Technology, 2017-09) Nguegan Nguegan, Catherine Angelique
Effective supply chain management is largely contributing to the success of many companies around the world. From publicly owned companies to sole proprietorships, supply chain management is crucial in facilitating the effectiveness of all operations. In the food processing industry, supply chain management is regarded as important capital for both inbound and outbound logistical activities. However, implementation of supply chain management initiatives presents several challenges that hinder the effectiveness of the operations of most companies. The aim of this study was to investigate supply chain management challenges facing the food processing industry in South Africa and the effects of these challenges on business performance. Through a review of literature, seven challenges are identified, namely, human resources management, technology, facilities, supplier relationship management, customer relationship management, regulatory factors, logistics and transportation. A nine-section questionnaire was then developed using adapted measurement scales and distributed to 303 supply management professionals in food processing companies in Gauteng province. Respondents were selected using the non-probability convenience sampling technique. The collected data were analysed using the Statistical Packages for the Social Sciences (Version 23.0). After testing for validity and reliability, descriptive statistics were applied in testing perceptions of respondents towards the seven supply chain management challenges and business performance. Pearson correlations were used to test for the strength and direction of associations between supply chain management challenges and business performance. Regression analysis is applied in testing whether supply chain management predicted business performance. Application of Pearson correlations revealed negative associations between all seven supply chain management challenges and business performance. This implies that business performance decreases as the intensity of the challenges increases. Regression analysis indicated that, apart from regulatory factors, six of the supply chain management challenges predict business performance. Technology emerged as the strongest predictor of business performance. The study concludes by suggesting recommendations for limiting the impact of the identified challenges on business performance.
Dynamic capabilities as determinants of supply chain performance in small to medium enterprises in the Vaal region
(Vaal University of Technology, 2017-10) Lavhelani, Phathutshedzo David; Chinomona, E., Dr.; Omuruyi, O., Dr.
The study investigated dynamic capabilities as determinants of supply chain performance in small to medium enterprises in the Vaal region. The study contributed to the body of knowledge addressing dynamic capabilities as determinants of supply chain performance in small to medium enterprises. The study developed a model with five hypotheses and was empirically tested. Following a positivist research paradigm, a quantitative approach as a research strategy was employed to test the proposal conceptual model. A survey was conducted with 288 participants in Vaal region using aprobability strastified sampling method to identify the respondents fitting the predetermined sample criteria. A self-administered survey was followed as a method of data collection. Topical areas, research methods and data acquiring procedures were described. Permission was sought from SME owners. Sample data from SME owners/managers in the retail, mining, construction, tourism, transport, finance / insurance, community/ personal service, manufacturing and other businesses within Southern Gauteng, specifically in the Vaal Region were collected for the final data analysis of this study. The researcher used the Statistical Package for the Social Sciences (SPSS version 23.0) to analyse data. The sample data were analysed by performing a confirmatory factor analysis (CFA) and structual equation modelling (SEM) using the AMOS 23.0 statistical analysis software. The principal finding of this study reveals that dynamic capabilities, relationship longevity and service quality have an impact on supply chain performance. The conclusions and implications of the research findings are provided, and recommendations are suggested.
The drivers of supply chain performance in the food retail industry in Gauteng province
(Vaal University of Technology, 2018-01) Ngouapegne, Chriss Narick Mangoukou; Mafini, C., Prof.; Chinomona, E., Dr.
The food retail industry is an important contributor to the economy. Buyers and suppliers in this industry work in collaboration with each other to achieve superior supply chain performance. To achieve this, they have to find ways and methods to improve it. The purpose of this study was to investigate the drivers of supply chain performance in the food retail industry in the Gauteng province. This study considers three of these drivers, namely buyer-supplier trust, buyer-supplier commitment and supply chain relationship longevity. A quantitative approach was adopted in which a survey questionnaire was used to collect data from 429 managers and staff members from food retailing firms in the Gauteng province. The study used a non-probability convenience sampling technique to select respondents. Data were analysed with the aid of two software packages, namely the Statistical Package for the Social Sciences (SPSS version 24.0) and the Analysis of Moment Structures (AMOS version 24.0). A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling was used to test the hypothesised relationships between constructs. The results of the research revealed that buyer-supplier trust, buyer-supplier commitment and supply chain relationship longevity positively and significantly influence supply chain performance. Buyer-supplier trust exerted a positive and significant influence on both buyersupplier commitment and relationship longevity. Also, the results showed that buyer-supplier commitment has a positive and significant influence on relationship longevity. The study concludes that to achieve greater supply chain performance, food retailers should expedite the levels of trust, commitment and length of relationships with their suppliers. The results of this study provide useful insights on how businesses in the food retail industry could benefit from trust, commitment and relationship longevity as well as on how to improve supply chain performance. The results of this study contribute to the existing body of knowledge by generating new information on buyer-supplier relationships. Therefore, the study is useful to buyers and suppliers in the food retail industry who wish to enhance supply chain performance and develop better relationships.
Supply chain management best practices, agility, risk management and performance in small and medium enterprises in South Africa
(Vaal University of Technology, 2018-09) Loury-Okoumba, W. V.; Bhadury, Prof. J.; Mafini, Prof. C.
The strategic importance of small and medium enterprises (SMEs) and their role in stimulating economic growth and competitiveness in many countries are well documented in literature. The same applies to South Africa, where the SME sector has grown tremendously to become an important contributor to social and economic development through employment creation and constant input to the gross domestic product. However, in spite of these contributions, South African SMEs face numerous challenges, which negatively impact their prospects for growth and success. Some of these challenges include the limited access to financial capital, the lack of infrastructure and the lack of skills, which play a significant role in the high mortality rate of SMEs. One of the proposed solutions to address these operational challenges is the adoption of supply chain management strategies to strengthen the operational and long-term capabilities of SMEs. Thus, the purpose of this study was to investigate the relationships between supply chain management best practices, supply chain agility, risk management and supply chain performance in South African SMEs. The study applied a quantitative approach in which a cross-sectional survey design was used to collect data to test direct and indirect relationships between different constructs (buyer-supplier collaboration, supply chain integration, total quality management, IT adoption, supply chain agility, supply chain risk management and supply chain performance). A structured survey questionnaire was developed using adapted measurement scales and administered to 407 randomly selected SME owners, managers and professional employees who had some knowledge about supply chain management. The collected quantitative data were analysed using the Statistical Packages for Social Sciences (SPSS version 24.0) and the Analysis of Moment Structures (AMOS version 24.0) statistical software. The actual data analyses techniques applied included descriptive statistics and inferential statistics using structural equation modelling. The latter included a Confirmatory Factor Analysis (CFA) to test the psychometric properties of measurement scales and the testing of the six hypotheses using the path analyses technique. The results of the study showed positive and significant relationships between all supply chain management practices and supply chain agility. Specifically, buyer-supplier collaboration and total quality management exerted a moderate and significant influence on supply chain agility. Moreover, IT adoption had a strong positive and significant relationship with supply chain agility iv while supply chain integration had a weak but significant relationship with the same factor. More results provided from the analysis confirmed the existence of a very strong and significant relationship between supply chain agility and supply chain risk management. In turn, supply chain risk management had a strong positive relationship with supply chain performance. The study also takes note of its contributions to highlight its merits. From a theoretical perspective, it provides an in-depth examination of some driving factors to supply chain agility, supply chain risk management and supply chain performance within SMEs. Given that a study of this nature has not been performed before amongst South African SMEs, the results are an essential addition to the existing body of literature within the area of supply chain management within SMEs in developing countries such as South Africa. From a management perspective, the study suggests that specific attention should be directed to all of the four supply chain management practices (buyer-supplier collaboration, supply chain integration, IT adoption and total quality management) considered as possible avenues to address operational challenges in SMEs.
E-Procurement, supplier integration and supply chain performance in small and medium enterprises in Gauteng Province
(Vaal University of Technology, 2018-10) Madzimure, Jeremiah; Mafini, Prof. C.; Dhurup, Prof. M.
The purpose of this study was to investigate the relationship between e-procurement, supplier integration and supply chain performance in Small and Medium Enterprises (SMEs) in the Gauteng Province of South Africa. Most studies on e-procurement, supplier integration and supply chain performance have focused on large companies. Current knowledge involving SMEs and e-procurement is still limited. This study, therefore, was conducted to fill this gap. With rapid changes in technology and globalisation of markets, firms, especially SMEs, need support to adapt to technology and make use of e-procurement functions to compete with larger firms. The paradigm used in this study was post-positivism. A quantitative research approach was adopted in this study. The target population for this study consists of all owners and managers who are currently employed in SMEs in the Gauteng Province, South Africa. To measure the study constructs, the survey material was designed in the form of a structured questionnaire. Participants were asked to complete three test instruments, namely, an e-procurement questionnaire, supplier integration questionnaire and supply chain performance questionnaire as well as their profile and SME profile. A total number of 350 questionnaires was distributed to the identified sample of SME owners and managers of which 294 responded and finally 283 questionnaires were usable and used for data analysis. The confirmatory factor analysis (CFA) was performed to establish scale accuracy. All measures conformed to acceptable model fit and composite reliability (CR) and revealed that the scales used in this study are reliable. The reliability results confirmed that all constructs reached the generally agreed upon minimum scale range for Cronbach’s alpha of 0.70. Finally, the structural model was tested; four out of seven hypotheses were supported. Validity in this study was achieved through face, content, convergent and discriminant validities. The principal finding of this study reveals that e-design has a positive and significant linear relationship with supplier integration. In addition, the results showed that e-sourcing has a positive and insignificant linear relationship with supplier integration. The insignificant relationship could be indicative of the fact that enterprises are not fully utilising the e-procurement systems in selecting their suppliers to effectively improve their collaboration with supply chain member firms. The findings further reveal that e-negotiation has a positive and significant linear relationship with supplier integration. The study’s empirical findings also indicate that e-evaluation has a negative and insignificant relationship with supplier integration. Further, e-informing was also found to have a negative relationship with supplier integration. The study additionally revealed that supplier integration has a positive and significant linear relationship with tangible supply chain performance. Lastly, the SEM findings show that supplier integration has a positive and significant relationship with the intangible supply chain performance. After reviewing the results, the conclusion was drawn that theoretically, this research has contributed to literature by providing additional information on supply chain management, e-procurement, supplier integration and supply chain performance. The results presented provide useful information about the relationship between e-procurement, supplier integration and supply chain performance in SMEs, with implications for supplier firms and other relevant stakeholders. These results contribute to the expanding body of knowledge on supply chain aspects. The current study added practical value by developing an integrative model which might be used by SME practitioners in South Africa. The study recommends that the collaborating firm owners and managers consider increasing the levels of supplier collaboration by having regular meetings, training workshops or courses and conferences to improve their supply chain performance. Furthermore, it is recommended that SME owners and managers must effectively implement e-design systems to increase the chance of integrating with their suppliers, thereby increasing the chance of improving performance as well as cutting supply chain costs. Areas for further research and limitations for this study have also been highlighted.
An exploration of procurement practices in the state-owned passenger rail agencies in Gauteng province.
(Vaal University of Technology, 2018-12) Mkhabele, Caxwell; Chinomona, E., Dr.; Van der Westhuizen, J. P., Dr.
Supply Chain Management (SCM) departments and, specifically, procurement functions, account for the largest expenditure in most organisations. However, their function has been misunderstood, undervalued, and under-capacitated, and their strategic importance not recognised. As a result, the majority of public agencies in South Africa are implementing their procurement practices poorly. The main research question of this study focused on procurement practices in the state-owned passenger rail agencies in the Gauteng province. A qualitative research method was adopted in which semi-structured interviews were employed to gather data regarding current procurement practices within the procurement function in the state-owned passenger rail agencies. Content analysis was utilised to analyse and interpret data collected from 12 procurement officials employed in the procurement functions within these state-owned passenger rail agencies in the Gauteng province. The findings of this study indicate that there are poor procurement practices within the state-owned passenger rail agencies in the Gauteng province regardless of government initiatives established to address lack of accountability, inconsistency in application of procurement policies, lack of supporting structures and fragmented processes. The detailed findings indicate that the procurement function is still regarded as an administrative function within the state-owned passenger rail agencies. Due to the procurement function still being regarded as an administrative rather than as a strategic function, the procurement function is still under-rated within the state-owned passenger rail agencies in the Gauteng province. The findings also establish that there is poor contract management during the procurement processes. Furthermore, the findings established that there is poor implementation of supplier management within multiple stages of the procurement processes in the state-owned passenger rail agencies in the Gauteng province. Due to poor procurement practices within the passenger rail agencies, eleven challenges were identified within the procurement functions. As a result of the above-mentioned challenges, this study recommends strategies that can be used to address the problems identified within the procurement functions of these state-owned passenger rail agencies in the Gauteng province.
A framework for the effective creation of business incubators in South Africa
(Vaal University of Technology, 2019) Lose, Thobekani; Mafini, C., Prof.; Dhurup, M., Prof.
The majority of business incubators in South Africa are supported by the Small Enterprise Development Agency (SEDA). However, a notable proportion of business incubators face a number of challenges to growth and development. Despite a number of studies conducted on business incubators generally, little information exists on the framework for the creation of business incubators. The concept of business incubation has gained prominence in academia in recent years as a vehicle for small business development. In view of the growing importance of business incubators, the objective of this study is to develop a framework for the creation of business incubators in South Africa. Business incubator managers, coaches, project specialists, and enterprise development practitioners were selected, being considered the ideal target population for this study. The study adopted a sequential mixed-methods methodology that commenced with a qualitative study and was followed by a quantitative study. For the qualitative study, data were collected from a purposively selected business incubator sample comprising nine participants. The principle of technical saturation was applied to ascertain the adequacy of the sample size. The trustworthiness and credibility of the qualitative study were achieved through pre-testing of the interview guide, bracketing, prolonged engagement with participants, peer debriefing, and researcher reflexivity. The analysis of the qualitative data was conducted using content and thematic analyses. The qualitative element of the study identified incubator prerequisites, situational analyses, operational processes/incubation strategies, and operational outputs as the main determinants of the framework for business incubators. In line with the methodology of the study, the determinants of the framework for business incubators that emerged from the qualitative study were further examined through a quantitative study. The data for the quantitative study were generated from a conveniently selected incubator practitioner sample of 121 respondents, using a structured self-administered questionnaire. Furthermore, the historical evidence method guided the determination of the sample size for the quantitative study. Prior to questionnaire administration of this study a pilot study was conducted to improve the accuracy of the survey instrument. The quantitative section utilised statistical data analysis procedures, descriptive statistics, reliability and validity analysis, correlation analysis and confirmatory factor analysis. The Statistical Package for Social Sciences (SPSS) software was utilised to analyse the quantitative data. The results of the quantitative data analysis revealed that the framework for incubation presents incubator prerequisites (incubation entry of incubatees) as the predictor construct. This construct has eight sub-components, which are situational analysis (incubatees’ characteristics), key requirements, operational process, factor components, intellective capabilities, administrative capabilities, market force engineering, and strategic resourcing (impact) with KPIs. The mediating construct is business incubator performance (incubation process—industry coaches, governance structure, and entrepreneurial focus), which in turn leads to monitoring and evaluation (incubation output—graduation phase, impact, and follow-ups). The relationships between these constructs were tested. In order to verify the reliability of the measurement items of the current study, Cronbach’s alpha coefficient, the item-to-total values and composite reliability were computed. The validity of the survey instrument was enhanced through content, convergent, discriminant and predictive validities. In addition, the reliability and validity measures employed in the present study showed that the survey instrument utilised in the quantitative study was both reliable and valid. The study is significant in terms of its theoretical and business incubation policy implications. Theoretically, the study provides a comparative impression of the South African business incubation perspective and current trends in the ecosystem. Thus, future researchers, particularly in developing countries, may use the results of this study as a reference benchmark in terms of literature and research methodology. The various organs of the state, government agencies, as well as non-governmental organisations that are responsible for entrepreneurship development and the creation of additional business incubators, may use the study as a reference point in the generation of different initiatives aimed at improving the small business environment in South Africa.

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