OpenUCT :: Browsing by Author "Chivaka, Richard"

Browsing by Author "Chivaka, Richard"

Now showing 1 - 18 of 18

Open Access
Accumulation model processes of human suborbital space transportation industry emergence
(2018) Davidian, Kenneth John; Chivaka, Richard
To respond to the research question, “by what processes do new industries emerge?”, the author identified different models of innovation development and industry emergence. Relevant streams of literature included economics, innovation, sociology, economic sociology, and institution theory. A functional goal innovation development theory, referred to as the accumulation model, states that many organizations, from both the public- and private-sectors, collect and accumulate resources in three major social functions. Previous research defined the model state-of-the-art at a high level of abstraction, identifying the three main components (industry infrastructure elements), depicted as separate boxes with arrows between them. This research uses grounded theory extension to identify microscopic processes, delving within and between the three macroscopic infrastructure elements. The industry context of this research was the emerging human suborbital space transportation (“space tourism”) industry. Data came from secondary sources, archival data, and primary sources. This research collected more than 8,400 pieces of secondary and archival data from news aggregator web sites, distilled them into approximately 600 significant events, and categorized them within the accumulation model framework’s three main components: Institutional Arrangements, Resource Endowments, and Proprietary Functions. Industry structure and disruptive innovation studies provided additional analytical perspectives. Primary data, collected via 40 interviews of industry members, filled in and validated data gaps. The combined analyses resulted in a deeper understanding of the industry emergence process. Observations of the sequence of events, and of linkages between events and actors, allowed the author to propose a set of processes, describing how the accumulated industry resources resulted in industry emergence. Description of these processes required modifications to the original framework. Furthermore, this research analyzed a high-profile prize event that initiated the industry emergence, to propose a supplemental set of processes, describing how prizes influence industry emergence. The current research proposes that institutional activities contribute primarily to the accumulation of sociopolitical legitimacy, and resource endowment activities contribute primarily to cognitive legitimacy. Both forms of legitimacy are a significant moderator of interactions between the three infrastructure elements. Furthermore, prizes positively contribute to sociopolitical legitimacy, positively moderate the creation of cognitive legitimacy, and positively moderate many steps in the business development cycle. The proposed processes identify the steps of legitimacy creation and industry emergence. This research provides new insights into the industry emergence and evolution processes, for entrepreneurs, managers, policy-makers, and for developing countries on the African continent.
Open Access
The adoption of lean techniques to optimise the on-shelf availability of products and drive business performance in the food industry: a South African manufacturing and retail case study
(2013) Domingo, Tony Mendes; Chivaka, Richard
The degree of sustaining business performance, while maintaining competitive costs, satisfied consumers and customers has become more difficult and harder to achieve. To date, both retailers and manufacturers are economically challenged as they enter into a new age and era that is characterised by a restructuring of the supply and demand known today, the one in which the consumer demand chain will both lead and direct all organisational processes. The greatest challenge in manufacturing and retail supply chains today continue to be the inconsistency of product availability. Both retailers and their manufacturers frequently find themselves in positions where they either have too much stock of specific stock-keeping units (SKUs) or insufficient stock levels of a particular SKU, Steve (2010). Retailers and their suppliers both seek to avoid the costly out-of-stock (OOS) situations, which result in lost revenue opportunity for both parties. OOS can also damage shopper loyalty as frustrated consumers might seek out alternative retailers for the same merchandise, while on the other hand suppliers' brand loyalty can be impacted if a competitor's product is substituted instead. It remains true that the two pillars of business, namely demand and supply, still rule. Traditionally, putting supply before demand, with its implied precedence, was the correct approach to apply, but in today's business environment, there is a major shift taking place, predominantly driven by the cycles in globalisation that would be faster than in the traditional way, oversupply in the fast -moving consumer goods industry, a parallel loss of pricing power, consumers with a twenty-four hours access to precise pricing information, which terminates the power of information scarcity, and shorter product life cycles. The global economic crash that represented a global economic storm led many organisations to rethink the manner in which organisations are led. A consensus exists among many authors and commentators that the emerging economic order has imposed changes to the very way companies are doing business.
Open Access
An exploration of strategies used by South African companies to expand into other African markets
(2019) Mucheka, Rufaro; Chivaka, Richard
Overall purpose of the study While literature highlights the growing importance of, and opportunities in, emerging markets (Joosub & Coldwell, 2016; Boateng, Wang & Wang, 2017; Oguji & Owusu, 2017), there is also significant research regarding the risks associated with these markets (Khanna & Palepu, 2010; Luiz & Ruplal, 2013). These risks arise from differences in geographies, cultures, institutions, governance, languages, performance and economic structures, making the internationalisation strategies of African multinationals into other African countries complex and challenging. Despite these difficulties, African countries still promote trade within the continent. The 2018 African Continental Free Trade Area agreement, for example, promotes intra-regional trade in order to stimulate economic activity and increase development on the continent. South Africa, being the most developed economy on the continent, seems to be leading in doing business with other African countries, having a number of its home-grown multinationals internationalising on the continent. Success stories such as MTN, Shoprite, SAB Miller and Pick’ n Pay have taken their operations into other countries in Africa, however what is not clear is how they have successfully applied their internationalisation strategies. Unlike research by Boateng et al. (2017) on how Chinese multinationals are using mergers and acquisitions as their entry mode, and Buckley’s (2018) findings on Indian firms targeting countries with English as their official language, little research has been conducted on how South African companies are expanding outside their national borders. This research thus sought to explore the processes by which South African companies implement their internationalisation strategies into other African countries. Research problem As firms internationalise, they choose markets that are physically and psychically close based on their internationalisation experience. Previous literature shows that larger firms are better able to absorb the initial cost of internationalisation and opt for a higher degree of control (Dunning, 1988), yet not much research have been done on the African continent to explore how companies deal with psychic distance, firm resources and strategic choice in their internationalisation strategies. Studies conducted outside the continent in psychically distant locations show that firms design boundaries to protect their internal resources and capabilities from unintended spill overs, and look for local partner organisations that wield substantial capability to fill voids (Dunning, 1988). In addition, Barney (1991) argued that firms seek to exploit their rare, valuable and inimitable resources to gain a competitive advantage. Psychic distance research has been conducted on Chinese (Boateng, et al., 2017) and Indian firms (Buckley, 2018), however in Africa, where the cultural, institutional, economic and geographic distances are huge, not much evidence is available. There is also a variety of research on firm resources and strategic choices for Chinese and Indian firms, including how they are using leadership, technical talent, cheap labour (Contractor, 2013), financial resources, government to government relationships (Cheru & Obi, 2011) and home knowledge to enter African markets (Khanna & Palepu, 2010). As some South African businesses have failed in their internationalisation strategies on the continent, it is thus important to understand how those companies that have succeeded, did so. Design of the study A multi-method sequential explanatory approach (Ivankova, Creswell & Stick, 2006), comprised of a survey followed by case studies of internationalising South African companies, was used. The survey participants and firms were purposefully selected based on their roles in the internationalisation strategies, and the results of the survey were used to identify cases for the second phase of the research. An insurer and a bank with a total market capitalisation of R442b (JSE, 2017), representing 41% of the survey population, were selected as case studies. These cases were adopted to understand the internationalisation phenomenon in specific companies, while the research questions focussed on South African multinational enterprises (MNEs) that already had operations in other African markets. Empirical evidence from both the survey results and the two case studies were used to address the research questions. Findings This study revealed that South African multinationals face intense competition from local competitors in the rest of Africa, so they have to craft and adapt specific strategies during their expansions. This research confirmed the findings of previous studies by showing that the internationalisation of banks and insurance companies follow largely similar patterns (Focarelli & Pozzolo, 2008). Further, the case studies indicate complexities such as the need for local legitimacy, the tacitness of local cultures, and protracted implementation periods that cannot be explained by traditional FDI theories. For these reasons, the companies develop non-market resources such as spending periods of time in the potential host country before setting up operations to gather information and build hands-on market intelligence based on the experiential knowledge of the host country market. The bank case study, whose first wave of internationalisation, as with other major banks, was in the late 1800, uses the ownership entry mode. While literature has shown that companies acquire local partners when there are high psychic distances, because bank services require a high degree of information, information transfer and trust (Mulder & Westerhuis, 2015, cited in Fischer & Hasselknippe, 2017), risk management is very important. Firm resources such as good governance and ethical leadership are key for success. This case study revealed that because bank values such as integrity and accountability are global, a subsidiary’s aptitude to demonstrate its ability to work within a country culture while retaining the values of the bank earns respect from regulators and customers and increases market share. In addition, it extended research conducted by Contractor (2013) on expatriates and Harvey, Speier & Novicevic (1999)’s findings on diasporas from home countries, by finding that the bank builds a pool of skilled African Diaspora, who are citizens of the host market, to manage and facilitate the integration process and bridge the cultural gap, thereby shortening the transient period. While literature has shown that banks and insurance companies follow similar internationalisation patterns (Focarelli & Pozzolo, 2008), the insurer, an internationalisation latecomer, adopted the partnership entry mode using learnings from “small deals” to achieve its ambition of being the Pan African financial services company. Although literature shows latecomers using entry modes such as mergers and acquisitions (Oguji & Owusu, 2017) and leapfrogging into innovation value chains (Ray, Ray & Kumar, 2017), this particular study indicates that the insurer used the partnership mode to minimise risks caused by the latecomer effect. While the bank has had experience in internationalisation for almost two centuries and has operations in 20 countries, the insurer only actively started internationalising 15 years ago but has operations in 35 countries. Focarelli and Pozzolo (2008) found that accessibility to domestic markets by foreign investors is greater for insurance companies than banks, while this study found that the insurer has greater accessibility to African markets through the adoption of the partnership model, which mitigates the risk of high cultural distances. These findings were not found in the literature reviewed for this study, and therefore offer opportunities for further research. Regardless of whether an ownership-based or a partnership-based model is used, distance and cultural integration are important determinants for both the bank and the insurer (Focarelli & Pozzolo, 2008. Although the cases in this study revealed similar internationalisation patterns, such as starting in psychically close locations (Johanson & Vahlne, 1977), using financial resources to sponsor the protracted implementation of the strategy (Dunning, 1988) and having local management run the business in the host country (Barney, Ketchen & Wright, 2011), they differed in entry mode, timing of entry and decision-making processes. In addition, this study revealed that both companies’ inflection points were characterised by a continuous commitment of resources, hoping that they would get signals to either exit or scale up with minimal reputational damage. Contributions to research Theory A major contribution of this research pertains to the new research context of Africa. Most literature have focused on how global companies expanded into emerging markets (Enderwick, 2009; Khanna & Palepu, 2010), and more recently how companies from emerging markets like China and India (Boateng, et al., 2017; Buckley, 2018) have expanded globally. However, little has been done to understand how African corporates tackle such expansions. Africa, with its 56 countries and domestic institutions of a multi ethnic, multi-language (more than 500 for Nigeria alone), multi religious, multicultural and diverse colonial histories, offers a rich setting in which to study the influences of psychic distance and firm resources on internationalisation. The findings based on the African context for South African firms therefore provide important direct and practical implications for firms from other African economies. The conceptualisation of this study provides an insightful lens into the influence of psychic distance, firm resources and strategic choice on internationalisation processes, which is unexplored territory. With scant literature on Africa as an emerging continent, this study provides some empirical and case evidence for these propositions and contributes a basis for further research. Methodologically, this research extends the findings of Luiz and Ruplal (2013) by examining a number of sectors as opposed to a focus on mining companies alone. The research further contributes to a better understanding of internationalisation strategies by incorporating literature, case studies and a survey, as opposed to simply a survey as per Joosub and Coldwell (2016). The choice of case studies presented an opportunity to compare the internationalisation processes of an ownership-based first mover to a partnership-based latecomer, using firm resources as an enabler. Previous studies (Herrmann & Dotta, 2002; Wood, et al., 2011; Williams & Grégoire, 2014) have shown that MNEs send expatriates with international experience to manage operations in host countries. Harvey et al. (1999) provided a more nuanced view by observing that MNEs send people from diasporas to host countries as network agents, given their global consciousnesses and familiarity with the home cultures. This research, however, shows that due to the relationship-rich African cultures and the tacitness of host country knowledge, the bank (ownership model) specifically targeted and upskilled a pool of citizens of the potential host countries at the parent operation, who were subsequently deployed to bridge cultural gaps during implementation, thereby increasing the MNE’s internationalisation capability. Emerging market firms’ internationalisation is driven by intangible resources based on learning, linking and leveraging (Ray, et al., 2017). Although this study was exploratory in nature, the two case studies have shown a consistent pattern of an adaptive management cycle when setting up operations in other African countries. Due to the huge psychic distance encountered by these companies, they make use of repetitive and protracted planning and implementation processes. This increases the transient period and costs, yet the companies are willing to pay them to protect their reputations until they find signals to either exit or scale up. This finding regarding the existence of a transient period is not apparent in other literature. Even though Zhou and Li (2010), in their study of how strategic orientations influence dynamic capabilities, found that a firm's external interactions with customers and competitors in host countries affect its internal resource assortment and reconfiguration, they did not specifically deal with the issue of a transient period. Previous research indicated that firms look for partner organisations that wield substantial capability to fill voids (Dunning, 1988), that successful partnerships are built on trust which results in greater information sharing (Dyer, 1997), and that the selection of a local partner is informed by robust market assessment (Khanna & Palepu, 2010). This research confirms these findings by showing that spending time in the host country, doing due diligence on partner Board members, and providing a joint cultural induction of both partners’ executives in the parent organisation, ensures strategic alignment with partners from the onset. Practice Despite South African firms having huge resources, literature has not overtly mentioned the nonmarket capabilities that such EMNEs build when localising their businesses to suit local market conditions. Businesses utilising the ownership model combat the liability of foreignness by acquiring a local business with ethical leadership, whilst companies using the partnership model find partners with similar values. This research contributes to the existing body of knowledge on practical internationalisation strategies into developing markets with high psychic distance. Although it is an exploratory study, it clarifies the strategic considerations that EMNEs contemplate during planning, as well as when assessing their entry strategies, implementing and integrating their resources, and in rare cases, how they exit such markets. Limitations of the study Like most empirical studies that are exploratory in nature, there are limitations to the conclusions that can be drawn, which constrain the generalisability of this study: • The study was heavily weighted to certain industry sectors - primarily financial services - which have a presence in other African countries. The obvious question is to what extent its findings are relevant to other industries? • For the two cases, the knowledge of the participants regarding how their organisations plan and implement their strategies could have been diverse, but the information was limited to those interviewed. • The volatility of African markets is very high, so between the time of embarking on the research and consolidating the results and findings, some institutional context could have changed, such as the impact of the weakening of the resources sector on Nigeria and Angola. Suggestions for future research • The case studies were restricted to financial services, thus a study of more industry sectors using additional case studies would be valuable to extend the results of this research effort. • Hoskisson, Eden, Lau & Wright (2000) argued that the process “emerging economies” takes place over a long time and multinationals’ experimentation and learning is likely to be imperfect. Further research is thus needed to generate conclusive longitudinal empirical evidence theory in this area. • The growing Chinese FDI in Africa is often driven by the Chinese government’s “Going Out” policy, which was established to support firms as they internationalise. Although South Africa has a “Trade Invest Africa” policy, companies in the study were oblivious to this government support. It is not clear whether South African companies have an advantage on the continent and how competition from Chinese companies, being embraced by African governments, impact South African MNEs’ internationalisation strategies into the rest of Africa.
Open Access
The application of activity based cost and management to support competitive strategy in the banking sector : a South African case study
(2007) Domingo, Tony Mendes; Chivaka, Richard
Includes bibliographical references (leaves 217-236).
Open Access
Capital structures under hyperinflation : the Zimbabwean experience
(2009) Chiwandamira, D P; Chivaka, Richard
An essential part of an economy of developing and less developed nations lies in the establishment of a set of financial markets. In these financial markets companies are able to determine their capital structure by making rational decisions on whether to look internally or externally for financing. The study analysed the capital structures with a view of determining the extent of the applicability of capital structure theories to listed companies that are operating under a hyper inflation. The aim of the study was to verify the theoretical findings and predictions about determinants of capital structure. There is extensive literature on capital structure theories and their validity, Miller and Modigliani (1958), Ross (1977), Myers (1984 and 1977), Myers and Majluf (1984), and others, which have focused on why firms opt for certain capital structures. These studies have been conducted in stable macro economic environments of developed, developing, and least developed countries. There has been no in-depth study on the choices of capital structure that has been done in an unstable economy that is characterised by hyper inflation, such as Zimbabwe. As a step to understanding the rational and choices of capital structure in a hyperinflationary environment, a sample of eight companies listed on Zimbabwe Stock Exchange, which has a total of seventy five listed companies, was selected. Size, tangibility, profitability, and non-tax debt shield were the determinants of capital structure that were used. Debt to equity ratio was also used to analyse the companies, sectors they fall in and an overall analysis. The objective of the research was to test the validity and applicability of the conventional capital structure theories in the Zimbabwean environment between 1998 and 2006. In the literature review, the research presents an overview of four main capital structure theories namely; trade-off, signalling, pecking order and agency theory. The research critically examined capital structures of eight listed companies in Zimbabwe that have been operating under hyper inflation. The comparison of capital structures of companies in different sectors was done to determine if there was any link between the choice of a particular capital structure mix and the sector the company was operating in. The impact of interest rates was also taken into account in the research to determine the effect under the same environment. Zimbabwe has experienced very high levels of inflation from 2000 with recent official statistics indicating inflation to be 100,580.2% as of end of January 2008. This figure is widely perceived as understated as the basket of good used in the calculation is based on government controlled prices. According to the IMF the real inflation figure taking into account the "black market" prices is estimated at 150,000%. This presentation will not delve into the debate of the definition of hyperinflation but the evidence points out a hyperinflationary environment by all accounts. To conduct the research, inflation adjusted financial reports dating from 1998 to 2006 of eight listed companies on the Zimbabwe Stock Exchange were analysed.
Open Access
Hierarchical decision making patterns for the placement of physical supply chain entities
(2017) Phiroz, Zal Navroze; Chivaka, Richard
One of the most important areas of development within the evolution of commerce, is the acknowledgement that businesses can no longer compete as individual entities, but rather must function as part of a supply chain. Within an ever-competitive business environment, the ultimate success of a business can often be tied directly to the overall functionality and efficiency of its supply chain. Research within the area of supply chain management is vast, with prior contributions exploring the function of a supply chain from a plethora of social, economic, and commerce perspectives. Prior research has extended to evaluate multiple industries and geographies, over a number of economic and social issues (e.g. environmental sustainability through transport route modification, poverty reduction through global value chain refinement), along with core management and commerce areas (e.g. marketing initiatives through production cycle analysis, operations management through production capacity). Substantial contributions exist which focus on the role of supply chain management and the value of refining, optimizing and designing a chain to the requirements of an industry, economic environment, or business process. In addition to investigation on the definition, function, and applicability of the concept, prior contributions have effectively demonstrated the value of supply chain management in gaining competitive advantage, and improving the overall performance of a business. The notion that supply chain efficiency defines business advantage, has led to exploration of physical configurations and specifications of supply chains; with the primary undertone often centering around evaluating drivers of supply chain optimization, and therein organizational performance. Within existing research, the process of physical site placement, and managerial decision makers within an organization are identified as being key factors in the optimization of a supply chain. As such, a number of prior studies have investigated the drivers which influence physical location decisions, with the majority of research focusing on the impact of geographical location factors. Other studies have centered on the impact of management structure as a catalyst in refining and optimizing a supply chain. While significant research has focused on both areas individually (Barney, 1991; Chopra & Meindl, 2002; Christopher, 1998), relatively little attention has been placed on evaluating the correlation between these paradigms, and therein exploring the root drivers for management decisions. There appears to be substantial value in directly investigating this relationship, as the analysis of this interaction would provide a comprehensive interpretation of specific factors contributing to physical supply chain development decisions. This research evaluated decision making drivers impacting the placement of physical supply chain entities using augmented qualitative and quantitative primary data. One of the main objectives of this study was to define the accepted sequence of decision making priority with respect to land value determination, transportation and accessibility considerations, and tax incentive structures. Data for the study was collected through electronic surveys and interviews, from supply chain managers working at organizations with a minimum annual revenue of $1,000,000 USD. The proposed relationships were evaluated using rigorous statistical analysis including factor analysis and structural equation modelling. Results indicated the existence of a clear sequence in decision structure, with a measurable pattern of priority placed on specific decision criteria. Aspects of corporate culture within the scope of supply chain decision making were explored with insight into the foundation for physical site evaluation. Empirical data suggested the value of land as having the most substantial influence when making physical location decisions. A number of factors influence how managers determine land value, however the location of a site and its proximity to a firms affiliates (e.g. potential partners, strategic alliances) were identified as having the strongest impact. Other considerations including transportation structures, tax incentives, and the ability of a firm to attract highly productive labor also influenced location decisions, albeit to a lesser degree. While prior research suggests businesses often design supply chains with the intention of attracting inexpensive labor, the results of this study were contradictory. Specifically, this study identified a common hierarchical decision making structure, and finds businesses often place value on highly productive labor (not inexpensive labor) when making supply chain location decisions. Fundamentally, the results presented in this study allows firms to gain insight on how decision makers process and interpret information. Establishing the pattern and sequence of decision making priority in the initial physical site placement stage is critical in ascertaining how supply chain networks develop and grow. From an economic standpoint, findings from this study could be applied to competitor assessment, growth planning, and managerial assessment. Based on the notion that competition takes place through supply chain performance, the practical applications of this study provide a meaningful foundation for optimization and therefore competitive advantage. On a larger scale, this contribution is substantial, as it holds value to both academic and business paradigms in further evaluating the definition and optimization potential of a supply chain, and in providing insight into additional areas of business competitiveness.
Open Access
The impact of corporate social responsibility on a company's image
(2006) Warner, Catherine; Chivaka, Richard
The aim of this research was to establish whether corporate social responsibility (CSR) affects a company's image by researching stakeholders' views on the CSR of an unlisted company operating in South Africa. Stakeholders of the organisation were identified and questionnaires were sent to Board members, management, employees, suppliers and customers. The results of the questionnaires were analysed to establish stakeholders' views of CSR and the implications thereof. The research provided insights into stakeholders' views on CSR and highlighted the significance of CSR to companies
Open Access
Improving service delivery in the public sector through strategic cost management: the case of a public private partnership in South Africa
(2012) Arendse, Kevin Brian; Chivaka, Richard
The key objective involved the research to discover how strategic cost management may improve service delivery. How could strategic cost management support public private partnership initiatives to improve service delivery by the public sector? Thus a detailed review of literature was done, contributing to the debate and better understanding of this specific research question. The objectives are to research what were public private partnerships and how they work so that a contribution could be made to close the gap identified in management practice and inform practitioners how to deal with public private partnerships.
Restricted
Linking entrepreneurial motivation, attitude, behaviour and sustainable supply chain performance measurement in South African manufacturing small and medium enterprises
(2023) Matsoso, Mamorena; Chivaka, Richard; Samuelsson Mikael
Background: Sustainable Supply Chain Performance Measurement (SSCPM) and management are pivotal processes for any organisation to ensure the attainment of strategic intent. Large enterprises have been successful with the implementation of SSCPM. One of the reasons is that their motives and attitudes are consistent with SSCPM that yield sustainable returns. First, large companies usually have shareholders who are not the management of these companies. This means the management of the company is held accountable for adopting practices that create sustainable shareholder value. As such, management's attitudes to issues such as SSCPM tend to be positive because of the implications on the bottom-line of the firm. Consequently, management's behaviour is one of quick and comprehensive adoption of any practices that support the creation of sustainable shareholder value, and that includes SSCPM. Second, large companies tend to be in the spotlight when it comes to anything that can go wrong. Finally, these companies are also under pressure from their global suppliers and customers, who may want SSCPMs to be embedded in their operations as a condition for doing business with them. We can therefore conclude that there are three aspects associated with the adoption of SSCPM by large companies, namely motivation, attitude, and behaviour. What is not clear is whether the same aspects of motivation, attitude and behaviours operate in Small and Medium Enterprises (SMEs). This study focuses on three types of SMEs, namely necessity, opportunity, and legacy, as they relate to motives. Given the differences in ownership, management, and scope of operations between large companies and SMEs, do motives, attitudes and behavioural variables operate within SMEs in the context of the adoption of SSCPM? We do not seem to have enough research to answer this question. Therefore, this study seeks to understand how entrepreneurial motivation, attitude, and behaviour influence SSCPM in manufacturing SMEs. Moreover, SMEs, particularly in developing contexts, are still lagging behind with sustainability integration in their Supply Chain Management (SCM). While much is said about SMEs, there is less concern for integrated systems, SCM practices and their future. There is a dearth of research on how entrepreneurial motives, attitudes and behaviour influence these performance measurements by SMEs. Methodology: The researcher's purpose in this study was to observe reality as it existed to maintain an objectivity which is devoid of value judgements. This objectivity resonates with the researcher's philosophical view which lends itself to a functionalist paradigm. Quantitative data were collected through a survey of manufacturing SMEs on entrepreneurial motives, attitudes, and behaviour towards SSCPM. The survey was directly administered to approximately 566 manufacturing SMEs, of which 211 completed questionnaires were received. The data were analysed through Partial Least Square-structural Equation Modelling (PLS-SEM). Results: Opportunity-motivated entrepreneurs depict a positive attitude towards the adoption and implementation of SSCPM in their SCM. These SMEs are formed and run by professionals and experienced individuals who desire to grow their businesses. Legacy-motivated entrepreneurs do not show any attitudinal disposition towards SSCPM. As they are familyowned and run businesses that span many generations, legacy-entrepreneurs are likely to adopt the inherited culture in their practices. Necessity-entrepreneurs have a positive attitude towards SSCPM with a predominant focus on economic sustainability. They are mostly pushed into business by the need to survive and this makes them focus mostly on that which enables them to generate revenue while avoiding anything that entails having to invest in other areas. For instance, necessity-motivated entrepreneurs have a negative attitude towards environmental and social sustainability. The only time they begin to embrace it is when there are other forces around such as institutional pressures or resources that will directly affect their attitude towards SSCPM. The results reveal that institutional isomorphic patterns and resources impact in varying degrees on the SMEs' adoption and implementation of SSCPM. Government policies or coercive isomorphic pressures are generally weak about enforcing SSCPM at SMEs. For instance, limited resources hinder SMEs' willingness and ability to adopt and implement SSCPM practices in line with government policies. Limited resources therefore make the impact of government policies on the adoption and implementation of SSCPM at SMEs ineffective. The results showed that normative isomorphic pressures were major enablers of the adoption and implementation of SSCPM at SMEs. These normative pressures were mostly inflicted by large corporate customers who demanded that SMEs complied with sustainable sourcing and production. Mimetic isomorphic pressures come into play because of the need for all SMEs to attain economic sustainability. Resources are a major enabler for the adoption of environmental and social SSCPM while both the institution and resources shape the attitude of SMEs in a significant way towards sustainable developments. Lack of resources leads to a negative attitude to sustainability endeavours. Theoretical contribution: The study has contributed to sustainability literature, the interface among entrepreneurial motives, attitudes, and behaviour linkages with SSCPM. To the best of the researcher's knowledge this perspective has not been explored in either SCM or Sustainable Supply Chain Management (SSCM). Many frameworks in SCM focus on the Triple Bottom Line (TBL) from a measurement perspective. The framework created in this study interfaces SSCM with entrepreneurial motives, attitudes and behaviour in the adoption of SSCPM at manufacturing SMEs. It further places the application of theory (Institutional and Resource Based View Theories) in a new empirical situation; more importantly, confirming the inability of coercive pressures to be placed on the adoption of environmental and social sustainability while re-enforcing the impact of normative pressures on the uptake of SSCPM. The SMEs' entrepreneurial attitude towards environmental and social sustainability is predominantly negative without institutional isomorphic pressures and the direct impact of resources on their attitude towards SSCPM. The analysis methodology adopted in this study reveals the shortcomings of Cronbach Alpha, which is rarely, if not always, silent in the social sciences. Cronbach Alpha does not only measure internal reliability, but it is also a test of length. If Cronbach is used to test internal consistency where the items are few, the tau-equivalence is immediately violated and that decreases reliability. However, if the number of items in a scale are more, reliability increases. Researchers in the social sciences, particularly SCM researchers, ought to know about this revelation. Practical Implications: These results will assist governments to find strategies to support entrepreneurs that are intrinsically motivated towards adopting sustainable integration practices. Governments may also embark on a customer awareness programme to enforce the taking up of sustainability practices in organisations while also exerting pressure on entrepreneurs who exhibit a negative attitude towards SSCPM. This strategy will go a long way towards adopting sustainable integration practices. Normative pressures from large customers have been identified as major players in enforcing SSCM at manufacturing SMEs. Big corporations may partner with SME suppliers to assist and guide them through compliance and taking the necessary steps to achieve sustainability integration. Collaboration among SMEs may help mitigate resource constraints to adopting sustainability practices as this may enable collaborative efforts in assisting themselves to reach their SSCM goals. Practitioners may also provide training and development programmes on SSCM for manufacturing SMEs. These training programmes should be conducted at no cost (through government funding) with manufacturing SMEs to achieve a wider impact on sustainability advancement. SMEs are central to economic growth, hence providing support, mentoring, and coaching on SSCPM which may go a long way towards strengthening the sector. Government may fund special projects that address SDG 12 and bring about collaboration between international and local buyers to guide the process in these SMEs. This research provides a platform for SME development and the enhancement of the community. SMEs may engage with community activists and NGOs on how to create sustainable relationships that last longer than expected. Development communities ranging from the United States Agency for International Development (USAID), the World Bank and African Growth and Opportunity Act (AGOA), among others, may form partnerships with developing countries' governments specifically to address SSCM at manufacturing SMEs. For instance, AGOA may extend primary access to United States' (US) markets by adding sustainability support on export apparel to manufacturing firms in listed countries. The World Bank could direct resource support with clear accountability measures to developing countries on manufacturing SSCM-integration, while USAID may have ambassadors/directors in various countries to oversee its dedicated support for sustainable production in the developing contexts.
Open Access
The role of venture capital financing to SME development in Namibia
(2007) Nakale, Mansueta-Maria N; Chivaka, Richard
This research was conducted to establish whether venture capital could reliably serve as a source of finance for SMEs given that there is a problem of access to finance in Namibia. This is important because SMEs in Namibia are generally in dire need of finance. Evidence therefore shows that venture capital as a source of finance serves as an ideal type of instrument for the development of SMEs internationally. The study assessed the importance of venture capital financing in the context of the SMEs in Namibia, specifically focusing on addressing the problem of lack of much needed capital and skills to the SME sector. The second objective was to assess whether venture capital financing can be effectively utilised to enhance managerial skills within SMEs in Namibia.
Open Access
Share repurchases in South Africa : reasons and returns
(2006) Siddle, Andrew McCalman; Chivaka, Richard
Share repurchases have long been permitted in the United States of America, but it is only relatively recently that they have become a frequently-used means of returning funds to shareholders in that country. In other countries, it was also only relatively recently that share repurchases were even permitted, and in South Africa, repurchases have been permitted only since 1999, when the Companies Act was amended to allow for them. Repurchases in South Africa are fairly closely regulated, not only by statute, but also, in the case of listed shares, by regulations contained in the Listing Requirements of the Johannesburg Stock Exchange. In essence, the regulations, read with the legislation, allow for three types of repurchase, namely, a specific repurchase incorporating a pro-rata offer; a specific purchase incorporating a specific offer, and a general repurchase. Specific repurchases have more demanding requirements than general repurchases as far analysis in the context of the "signalling hypothesis," and for that reason, the focus of this study is on specific repurchases. Studies in the USA and elsewhere have shown that repurchases may be carried out for any of a number of reasons. Most studies in the USA have also shown that repurchases are associated with significant positive abnormal returns on the share prices; the increase in prices is usually attributed to the signalling hypothesis, which holds that managers use repurchases as a means of signalling to the market that they believe that the shares are underpriced. The objectives of the present study are twofold: - To identify the reasons for South African companies carrying out repurchases; and - To determine whether such repurchases create shareholder value.
Open Access
Supplier development Practices in the South African Motor Industry
(2010) Bayne, Lyndie; Chivaka, Richard
The purpose of this dissertation was to determine the nature and extent of supplier development policy, strategy and practices in the South African (SA) motor industry. This fills a gap in the SA motor industry literature by focusing exclusively and comprehensively on the topic of supplier development. Multiple data sources and methods were used to gain a balanced, holistic perspective of supplier development in the industry. The perspectives of both the Original Equipment Manufacturers (OEMs) and a sample of key first-tier suppliers were obtained. This provides a dyadic study of supplier development, which is a rarity in the international supplier development literature. The views of other organisations playing a role in supplier development in the SA motor industry were sought to provide further insight. Survey data was obtained from the whole population of light passenger vehicle OEMs located in SA. This contributes comprehensive empirical data to the international supplier development research, which is predominantly case-study based. The supplier development practised by the OEMs with respect to first- and second-tier suppliers was investigated, as well as that employed by first-tier suppliers with respect to second-tier suppliers. In addition to providing an overview of supplier development in the SA motor industry as a whole, further insight is provided by a mini case study of an OEM exhibiting best practice in supplier development. OEMs and first-tier suppliers differ in their perspectives regarding the overall level of supplier development practised by the OEMs. OEMs consider the level of supplier development they provide to be high to moderate, while the first-tier suppliers perceive the supplier development received to be moderate to low. However, the research suggests that vi the level of supplier development practised by the OEMs in the SA motor industry is nevertheless likely to be more intense than that enjoyed by suppliers in most other SA industries. The level of supplier development employed by OEMs was found to be cyclical, peaking at times of new model / part introductions, thereafter moving from proactive to reactive in nature. A key finding was that the overwhelming majority of first-tier suppliers regard Toyota South Africa Motors (Pty) Ltd to be the leader in supplier development in SA. Another interesting finding was that the significant East versus West distinction found in the international supplier development literature is not applicable to the SA situation. Rather, in SA, the relevant division is between Toyota and the other SA OEMs. When sourcing locally, the OEMs prefer to source components from global first-tier suppliers situated in SA. These include SA subsidiaries of global companies, SA suppliers with foreign joint venture partners or SA suppliers with foreign technical agreement partners. The research revealed that many local first-tier suppliers believe that they receive more developmental support from their foreign head-offices or foreign partners, than from the SA OEMs. The OEMs and first-tier suppliers rarely develop foreign suppliers, who supply a significant proportion of total component requirements. The development of foreign suppliers is left to the OEM and first-tier counterparts in the foreign countries. The development of second-tier suppliers in SA is considered to be the responsibility of the first-tier suppliers, with OEMs seldom getting involved. The local first-tier suppliers engage in moderate to low supplier development with respect to local second-tier suppliers, citing a lack of resources as the primary reason. Global competition, the Motor Industry Development Plan (MIDP) and Broad-Based Black Economic Empowerment (B-BBEE) are identified as key drivers of the OEMs' supplier vii development strategy in SA. There is renewed pressure being placed on the OEMs to improve their sourcing of components from B-BBEE companies. This is in turn resulting in increased pressure being placed on first-tier suppliers to improve their B-BBEE scorecards. Although most OEMs have specific supplier development policies relating to B-BBEE, and government and others have implemented initiatives to develop these suppliers, the amount of component sourcing from such companies was found to be low. The research highlighted innovative projects and institutions playing a role in supplier development in SA, such as the Durban Auto Cluster and The South African Auto Benchmarking Club. The multi-source data obtained in this dissertation provides an empirical benchmark against which to measure the success of future supplier development initiatives. The dissertation also allows industry players to identify how their supplier development policies, strategy and practices compare to the industry as a whole, as well as to best practice.
Open Access
Supply chain innovations & firm strategy: pathways to manage institutional voids in emerging markets. Case study of manufacturing firms in Uganda
(2024) Abwang, Walter; Chivaka, Richard
The outbreak of the coronavirus pandemic in 2020 exposed the vulnerability of the global supply chain to external shocks. The impact of this problem was felt more significantly in the global South, where manufacturing is underdeveloped and relies heavily on supplies from the global North. A resilient and sustainable supply chain network is of practical importance in developing a strong manufacturing sector in Uganda's emerging or growing market. However, due to institutional voids, the manufacturing industry has come under pressure, which has impacted manufacturing firms' operational efficiencies. The overarching purpose of this study was to investigate why and how manufacturing firms in Uganda should apply supply chain innovations and firm strategies to ameliorate institutional voids. Extant literature shows limited discourse has focused on how manufacturing firms respond to institutional voids in Sub Sharan Africa. This study sheds light on the identified research gaps, a theoretical gap in prior research in the supply chain discipline. Previous empirical work in the supply chain has relied much on the Resource-Based View of the Firm and Transactional Cost Theories to study institutional voids in emerging markets. Therefore, Institutional Theory is relatively not used to understand this phenomenon. The study used methods used to collect data. Firstly, multiple case studies were used to collect relevant qualitative data about the state of the supply chain and how and why firms use supply chain innovations and strategies to counter institutional voids' impact. An in-depth qualitative interview with 25 participants was conducted via the Zoom platform. Secondly, a survey and a random sampling approach were used to identify research participants from 95 manufacturing firms. Firstly, the findings showed that several institutional voids exist in the Uganda manufacturing industry regarding the product, labour, capital, regulatory and macro spheres across the supply chain. Secondly, manufacturing firms in Uganda respond to these voids by deploying strategies such as accepting or changing the landscape through advocacy, political ties, and trust. In addition, they bring innovations in and around institutional voids, create partnerships, engage in supplier development, and develop robust business models, including last-mile strategies to ensure product availability, despite the poor infrastructure that hinders product delivery to remote areas. Thirdly, several barriers asphyxiate firms from entirely alleviating these gaps, such as access to technology, cultural bottlenecks, skills gap, the energy crisis in the manufacturing sector, political upheavals that threaten capital formation in the sector, cost barriers, low absorptive capacity in the formal and informal sector. Fourthly, the results showed that manufacturing firms' specific supply chain innovations to combat institutional voids included (i) energy reduction initiatives across the supply chain, (ii) redesigning manufacturing systems, and (iii) processes to reduce raw material wastage, energy consumption, and pollutions. The social impact of the supply chain has resulted in improved living conditions for consumers and communities through climate change initiatives such as planting trees to provide alternative energy sources for manufacturing firms. The results show that supply chain innovations exemplified by reduce, reuse, and recycle principles have resulted in some manufacturing firms using coffee husks and waste from other industries, such as brewing by-products, to reduce the over-dependence on furnace oil as an energy source. This study makes a significant original contribution to knowledge, lessening the theoretical, methodological, and contextual gaps identified in the literature. It promotes institutional theory application in the supply chain management discipline. The research adds to the existing literature about institutional voids in emerging markets with particular attention on the supply chain and how supply chain innovations and firm strategy can ameliorate institutional voids. The study's practical implication shows a need to develop scalable supply chain innovations to alleviate the wicked problems in developing markets: poverty, disease, and unemployment, a problem in Uganda. Additional interventions and suggestions are to conduct studies in other East African countries to verify the results from this study and compare how firms in the manufacturing and service industries respond to institutional voids in the developing countries in East Africa. The propositions developed in this study can also be tested across multiple industries in Sub-Saharan African countries to provide scholars with new datasets and insights on how firms respond to institutional voids in the region.
Open Access
The use of the real options approach in valuing the impact of climate change on the pulp and paper industry in South Africa : a case study of Sappi
(2007) Tyler, Emily; Chivaka, Richard
An emerging valuation technique, real options analysis, has been found to provide insight on value in situations of high uncertainty. Based on financial options theory, it values options relating to real assets. For example, if a company has the option to delay the manufacture of a patented product until the demand for the product is know with greater certainty, this option enables the company to time the investment in order to maximise the returns to the product, and prevents a costly investment mistake should market demand not ever materialise. The option therefore represents a source of value to the company, the value being to retain flexibility in an uncertain environment. According to the real options approach, the uncertainties of climate change could represent sources of value for companies, depending on their ability to remain flexible and to identify, maintain and develop their options. This perspective has implications for both companies' strategic response to challenges arising from climate change and for the valuation of companies by the investor community. This thesis is aimed at answering the following research question: "Does the real options approach to valuation enhance the understanding of the impact of climate change on company value?"
Open Access
Using activity based costing in customer profitability strategies in a South African SME environment : a South African case study
(2009) Potgieter, Theodorus Daniel; Chivaka, Richard
Small to medium scale enterprises (SMEs) face an ever increasing competitive and unforgiving business environment. Deregulation. increased global competition. the global economic downturn and the technical recession that South Africa has entered into (SACCI. May 2009). place increased pressure on their profit margins and ability to generate positive cash flow. These tough trading conditions are likely to continue for some time to come (De Klerk. 2009) and therefore companies need to respond appropriately to these challenges in order to survive (Sartorius et al. 2007). Survival is dependant on positive cash flow generated by profitable trading. Yet. many SMEs do not have effective strategies in place to maximise their customer profitability in order to enhance their cash flows. The challenge is therefore the development and adoption of practical customer profitability analysis tools for use by these SMEs. In this research an investigative single case study in a business to business setting based on detailed field work was performed. The study focussed on a typical South African SME trading with all the major retail groups in South Africa. The case study was performed via diachronic research into the use of Activity Based Costing (ABC) in customer profitability analysis (CPA). The objective of the study was to critically evaluate whether ABC is a practical tool for conducting customer profitability analysis in a South African SME environment. This was done by investigating what might motivate a SME to adopt ABC and determining the specific benefits likely to accrue to a SME following the implementation of ABC. The research has shown that the implementation of ABC made it possible to identify customers who. despite the fact that they generate a modest gross profit. are in fact unprofitable as a result of the overheads consumed by them. This insight shaped future marketing. pricing, sales and customer support strategies. More specifically, it assisted management to maximise income by identifying areas in the value chain to which resources should be channelled for maximum profit while still maximising customer satisfaction. This led to a substantial improvement in overall profitability. Owing, firstly, to increased gross profit following enhancements in the pricing policy and secondly, to increased sales volumes as a result of revised marketing strategies and new product launches. No significant additional costs were incurred in implementing ABC. A standard desktop computer and readily available accounting and spreadsheet software were used in the CPAs. No outside consultants were used since the champion of the project was knowledgeable in the application of ABC techniques This suggests that it is both practical and cost effective to implement ABC in a SME environment provided the necessary skills and infrastructure are available or can be outsourced. Although these findings are of a single case study and cannot be generalised, the combination of this empirical case study and the literature review findings presented in this study strongly suggest that Activity Based Costing is a practical tool for the formulation and measuring of outcomes of customer profitability strategies in a South African SME environment.
Open Access
Value chain analysis along the petroleum supply chain
(2010) Rusinga, Nectar; Chivaka, Richard
The wide range of the petroleum industry's products as well as the varied value of these products coupled with the global nature of the petroleum industry presents both challenges and opportunities within the petroleum supply chain. It is along this supply chain that challenges for creating value for the customer exist as well the opportunities for reaching this goal. Value chain analysis methodology has been hailed as being capable to lend itself to process improvement challenges faced along supply chains. To achieve this objective, a case study method was used to collect and analyse data. This dissertation identifies and follows one of the supply chains of a petroleum company operating in South Africa to investigate how value chain analysis can be implemented along its supply chain.
Open Access
Value chain competitiveness analysis: entrepreneurial behavioural practices determining business success in Uganda's commercial sugar and forestry industries
(2017) Mugabira, Michael Imaka; Chivaka, Richard
Global value chain (GVC) participation has been placed on a high level policy agenda by Development Partners as a prescription template for agri-business growth and competitiveness of developing countries, especially sub-Saharan Africa. Despite, the GVC participation popularity in application, there is an intense debate questioning why some countries are advancing in the global marketplace, while others are failing to do so. Actors' (entrepreneur's) behavior has been highlighted by the value chain fraternity researchers as an area of interest to investigate this phenomenon. The purpose of this research was to contribute to the understanding of the link between the entrepreneur behavior and better enhanced competitiveness in GVC, and as such offer some key insights into the emerging GVC theory. Case Study Approach was the major research strategy complemented by the Survey. Polar types of Ugandan commercial sugarcane and forestry farmers were selected, namely high and low performing entrepreneurs. Principal unit of analysis was the entire value chain, analyzed at three levels: Micro (Farm Enterprises), Meso (Farmer/Miller) and Macro (National Policies & Regulatory Environment). Principal component analysis was run for purposes of grouping items. Empirical data was analyzed using within case analysis, and cross-case pattern analysis. Theoretically and policy practice this study has brought into insight new research frontiers: (1) The finding of internality behavior demonstrates that entrepreneur's traits, characteristics and actions are basically behaviors that can be learnt, nurtured, and developed into a business culture, competencies and capabilities for enterprise growth, productivity and competitiveness. Therefore, policy program designs should focus on igniting these behaviors which are already embedded in the minds of the entrepreneurs, and then supporting the strengthening of such behavioral changes for entrepreneurs to effectively participate in GVC in developing economies. (2) Institutional quality defined by the set of rules of the game with the associated governance power matters with respect to equitable wealth distribution and ultimately competitiveness. Findings of this study are being used to inform both the drafting of the National Sugar Bill 'Draft Uganda Sugar Act 2015' and improvement of the regulatory environment of Uganda's Forestry Industry Sector.
Open Access
Value creation through strategic cost management along the supply chain
(2003) Chivaka, Richard; Uliana, Enrico
Bibliography: leaves 277-287.

Browsing by Author "Chivaka, Richard"

Results Per Page

Sort Options