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Buyer-supplier commitment and competitive performance among small and medium enterprises in Southern Gauteng
(Vaal University of Technology, 2020) Nwele, Uju Kingsley; Chinomona, E., Dr.; Omoruyi, O., Dr.
Economic growth, job creation and improved standard of living have resulted to focus mostly on small and medium enterprises (SMEs) across the world. Hence, establishing and maintaining relationships with partners across the supply chain has become a prerequisite for achieving long-term competitive benefits in the present business competitive environment. For this reason, buyer-supplier commitment is deemed an important long-term business relationship strategy towards achieving competitive performance. Although buyer-supplier commitments can serve as the basis for the development of relational standards, unbalanced commitments, on the other hand, may become a harbinger of opportunistic behaviours. This development is inimical to continued business relationship and its consequential benefits for the SMEs’ supply chain collaborators. Guided by the theoretical lens of the social exchange theory (SET), this study examines the influence of communication, product quality, flexibility, and buyer-supplier commitments on SMEs competitive performance in southern Gauteng. Using a convenience sampling technique, the study quantitatively analysed the 396 returned questionnaires. Data analysis was conducted using the statistical package for social sciences (SPSS) version 25.0 and AMOS 25.0 for the confirmatory factor analysis and the structural equation modelling (SEM) respectively. The SEM analysis helped to confirm the suitability of the model fit as well as the positive and significant relationships of the proposed hypotheses. The analysis revealed that communication, product quality and flexibility are important variables in predicting buyer-supplier commitment as they displayed positive association with buyer-supplier commitment and the latter is significant in a firm’s effort towards achieving competitive performance. The study recommends the anchoring of SMEs strategies on commitment inorder for partners to efficiently and effectively enjoy competitive benefits. This research contributes new knowledge to the body of literature by developing a research framework on SME’s business growth and competitive performance and offered recommendations based on the study, which if implemented, could improve the economy. The study also revealed a higher relationship among the baseline constructs (communication, product quality and flexibility) which have received little or no conceptualisation in literature.
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.
Exploring the factors determining ethical supply chain management in the fast-moving consumer goods industry
(Vaal University of Technology, 2020-11) Chivhungwa, Tafadzwa; Chinomona, E., Dr.; Mafini, C., Prof.
The application of business ethics in Supply Chain Management (SCM) activities in the business environment has attracted much-needed attention from research academics and practitioners alike in recent years. SCM activities within organisational processes are subject to various ethical principles when facilitating contractual procedures between supply chain partners. In a broader context, ethical SCM has mostly been applied to the public industry. Less attention has been directed, however, towards private businesses that seek to employ ethical compliance towards SCM processes. In view of the growing importance of ethical conduct in the private industry, the purpose of this study is to explore the factors that determine ethical SCM in the Fast-Moving Consumer Goods Industry (FMCG) in Gauteng Province. In this study, a quantitative research approach was employed to examine and test the factors that have an influence on ethical SCM in the FMCG industry within South Africa. A cross-sectional survey design was utilised to collect and test the empirical data collected from 221 purposively selected professional employees and managers in the FMCG industry in Gauteng Province. The collected data were analysed through the use of the Statistical Packages for Social Sciences (SPPS version 26.0) software and analysed using a combination of descriptive and inferential statistics. Specifically, the techniques used to analyse data include frequencies, percentages, mean scores, Exploratory Factor Analysis (EFA), t-tests, ANOVA, Pearson correlations and regression analysis. Using the EFA technique, six legal components of ethical SCM were identified. These are moral standards, transparency, professional competence, corporate governance, accountability and fairness. Three components, namely supplier assessment and monitoring, relationship commitment and supplier collaboration, were extracted in the EFA procedure. A further three personal ethics components were extracted, namely intrinsic values, honesty and integrity and skills. Descriptive statistics reveal that most managers and professional employees within the FMCG industry believe that they follow the legal aspects of SCM ethics. They also indicated that their firms are effective in managing their suppliers. The managers and professional employees in the FMCG industry also perceived that they espouse a high standard of personal ethics in their SCM activities. The results of the t-tests revealed that female respondents are more likely to adhere to personal ethics than their male counterparts. Results of the ANOVA tests revealed significant statistical differences on the race and occupational area categories of the FMCG employees that participated in this study. Under the race category, Whites and those of the Mixed race have different attitudes towards supplier collaboration when compared to other racial groups. Managers and professional employees from the procurement department have different attitudes on legal aspects when compared to those in other departments such as transport, warehouse, contract management and customer services employees. Pearson correlations revealed that connections between the constructs were either weak or moderate. Regression analysis revealed that among all legal components and personal ethics factors, only fairness significantly and positively predicted supplier management. The study recommends that the FMCG industry should recruit and develop managers and professional employees with a recruitment process that is more structural and process-driven as this promotes a unique brand of leaders that dictate sound and effective leadership processes. To maintain effectiveness amongst managers and professional employees, training remains a catalyst in increasing knowledge, skills and overall competency within the FMCG industry.
Green supply chain practices and supply chain performance in the beverage industry of South Africa
(Vaal University of Technology, 2020-04) Mahlatsi, Michael Kgaisi; Omoruyi, Osayuwamen, Dr.; Chinomona, Elizabeth, Dr.
In South Africa, the beverage industry is perceived to be a major contributor to the economy. Internal and external stakeholders in this industry are engaged in environmental collaboration with each other to achieve better environmental and supply chain performance. The aim of this study was to investigate the influence of green supply chain management practices on environmental performance and supply chain performance in the beverage industry of South Africa. It considers four of these practices, namely, internal environment management, investment recovery, eco-design and green purchasing. A quantitative approach was adopted, with the use of a survey questionnaire to collect information from 373 supply chain management professionals from beverage companies in South Africa. The study used a probability simple random sampling method. The data gathered was analysed using the Statistical Package for the Social Sciences (SPSS) version 25.0 and Analysis of a Moment Structures (AMOS) version 25.0. A Confirmatory Factor Analysis (CFA) was used to validate the measurement scales while Structural Equation Modelling (SEM) was applied to test the relations between constructs. The results revealed that internal environment management, investment recovery, eco-design and green purchasing positively and significantly influence environmental performance. Moreover, the results also revealed that environmental performance exerted a strong, significant and positive influence on supply chain performance. Recommendations and implications for further research were made based on these results. The study presents supply chain management professionals, internal and external stakeholders within the beverage industry with useful insights on key factors that ought to be addressed in order to improve their organisational strategies. Therefore, the study is essential to internal and external stakeholders in the beverage industry who wish to improve environmental and supply chain performance.
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.
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.
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.
A model for supply chain risk management and operational performance in the food retail industry in Zimbabwe
(Vaal University of Technology, 2019-12) Mutekwe, Le-Roy Tanyaradzwa; Chinomona, E., Dr.; Mafini, C., Prof.
The importance of the food retail industry and its role in stimulating economic growth and ensuring food availability as the final actor in the food supply chain in many countries is well documented in literature. This stands true in the case of Zimbabwe, where the industry has grown tremendously to become a significant contributor to the gross domestic product through employment creation, tax contributions and infrastructural development. Despite these contributions, the industry faces challenges in the form of supply chain risks. This is primarily due to the nature of the retail supply chain in Zimbabwe where over two-thirds of the products sold are imported. This forms the basis of this study which seeks to understand how supply chain risk management in food retail firms impacts on firm operational performance. Thus, this study aimed to investigate the relationships between supply chain risk management and operational performance in the food retail industry in Harare, Zimbabwe. To achieve the study’s aim, several variables were considered; namely, supply chain risk management, supply chain risk information sharing, and supply chain risk analysis and assessment, supply chain risk-sharing mechanisms and operational performance. The study followed a quantitative research approach based on a positivist paradigm. A total of 264 food retail firm owners, managers and professional employees who possess knowledge on supply chain risk management in Harare were selected using a non-probability, purposive sampling technique. Data were then collected using a close-ended survey questionnaire which was developed using adapted measurement scales. The collected data were analysed using the Statistical Packages for Social Sciences (SPSS version 25.0) and the Analysis of Moment Structures (AMOS version 25.0) statistical software. The applied data analysis techniques included descriptive statistics and inferential statistics. Inferential statistics used two approaches, namely, Exploratory Factor Analysis (EFA) and Structural Equation Modelling (SEM). The EFA tested for the factor structure of the collected data, whereas SEM tested for both psychometric properties of measurement scales and the relationships in the proposed hypotheses. The results of the study showed that supply chain risk management has a direct and significant relationship with both supply chain risk information sharing and supply chain risk analysis and assessment. Supply chain risk analysis and assessment yielded a positive and significant relationship with supply chain risk-sharing mechanisms. The relationship between supply chain risk analysis and assessment and supply chain risk-sharing mechanisms was significant but weak. Supply chain risk-sharing mechanisms had a strong and positive relationship with operational performance. There was, however, no significant direct relationship between supply chain risk management and operational performance. Insights gained from this study have merit from both theoretical and practical perspectives. Theoretically, the study provides an understanding of some driving factors to supply chain risk management, supply chain risk-sharing information sharing, supply chain risk analysis and assessment, supply chain risk-sharing mechanisms and operational performance within the food retail industry in Zimbabwe. Since there is limited evidence of similar previous studies in Zimbabwean food retail firms, the results are an essential addition to the existing body of literature within the area of supply chain management and supply chain risk management in the context of a developing country. From a management perspective, the study suggests specific recommendations that should be implemented for the optimisation of all five constructs.
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.
Supply chain capabilities, agility and firm performance in a developing economy
(Vaal University of Technology, 2019-09-09) Tlale, M. T.; Chinomona, E., Dr.; Van der Westhuizen, J. P., Dr.
Nowadays, the business environment is characterised by faster technological development, customer satisfaction, shorter product life cycles, and more intense global competition. This new competitive landscape has forced firms to acquire new ways to achieve competitive advantage actively since a firm's competitive advantage is now dependent on operating efficiency and productivity across functional areas of the firm. The most successful manufacturers seem to be those that have carefully linked their internal processes to external suppliers and customers in unique supply chains. The manufacturing sector represents 15 per cent of gross domestic product (GDP) of the South African commercial industry. Competitive challenges in the modern business environment have resulted in the need for firms to collaborate their business processes strategically across other business units within the supply chain. Supply chain network theory, dynamic capabilities theory, and the resource-based view theory are discussed to better understand the importance of firms' supply chain capabilities, supply chain agility, and firm performance. The primary objective of this research study was to investigate the association between supply chain capabilities (supply chain network design, supply chain information competency, and supply chain integration) and supply chain agility on firm performance in the manufacturing sector of the Gauteng province in South Africa. It also aimed to ascertain the kind of relationships between supply chain network with supply chain agility, supply chain network with firm performance, supply chain information competency with supply chain agility, supply chain integration with supply chain agility, supply chain integration with firm performance, and finally supply chain agility with firm performance. Structured questionnaires were distributed to various manufacturing firms in the Gauteng province. The data were collected from manufacturing firm managers and owners. SPSS 25.0 was used to analyse the data, and AMOS 25.0 used to perform the confirmatory factor analysis (CFA) and path analysis. The structural equation modelling (SEM) was used to assess the proposed model fit and to test the statistically significant relationship between the various hypotheses. The research study results revealed that supply chain technologies and supply chain vi agility positively influence firm manufacturing performance. This study contributes new knowledge to the existing literature by providing a research framework that can enhance manufacturing firms' performance and also offer practical recommendations based on the research findings for manufacturing firms and future research. Furthermore, as one of the first studies to address the association between supply chain capabilities and supply chain agility on firm performance in the Gauteng province, this study generates new insights and information, as well as outlines the strategic reasons for manufacturing firms' managers and owners to improve on their organisational relationships. Hence, the study found that firms have realised significant supply chain coordination through supply chain capabilities and supply chain agility and that firms have been able to attain strategic goals, reduce risks and improve internal and external coordination of operational processes. Keywords: supply chain network design; supply chain information competency; supply chain integration; supply chain agility; firm performance.
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.
Supply chain integration, resilience and performance in the South African Rail Industry
(Vaal University of Technology, 2021-03) Maila, Z. B.; Van der Westhuizen, J. P., Dr; Mafini, Prof. C.
The rail industry in South Africa performs an important role in the transportation of goods and people. It also contributes in various ways to the socio-economic success of the country’s economy. However, the industry faces various performance-related challenges in areas such as maintenance of rail lines, poor train availability and non-operation of long-distance rail service, decline in fleet availability and accidents, most of which are linked to ineffective supply chain management. To resolve these challenges, this study proposes the implementation of supply chain integration as a method to improve the resilience and performance of the rail supply chain in South Africa. Hence, the aim of the study was to investigate the connection between supply chain integration, resilience, and performance in the rail industry. To achieve the objectives of the study, a quantitative approach based on the positivist paradigm and deductive reasoning was followed. The sample consisted of 300 purposively selected supply chain management professionals including other departments working with supply chain, for example the industrial department and engineering department drawn from the rail industry in Gauteng Province. The collected data was analysed using descriptive statistics, exploratory factor analysis and structural equation modelling. The results of the study indicated significant positive relationships for the three components of supply chain integration, namely internal integration (β=0.132), supplier integration (β=0.369), customer integration (β=0.596) and supply chain resilience. Among these three independent constructs, customer integration emerged as the most significant predictor of supply chain resilience. Significant and strong positive relationships were also observed between supply chain resilience and the tangible (β=0.781) and intangible (β=0.673) dimensions of supply chain performance. Among other things, the study recommends the training of professionals on the importance of supply chain integration, improvement of communications within the rail industry, adoption of relevant technologies and the nurturing of organisational cultures that promote both intra and inter-organisational collaboration. The study is significant in that it contributes new knowledge to the exiting literature in the South African rail industry. It also directs supply chain management research to the rail industry, which is an important economic sector and where there are many emerging issues that require empirical attention. Practically, the study shows that if rail industries improve supply chain integration there will be benefits to the firm in the form of enhanced resilience and performance of the supply chain.
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.
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.

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