Risk management factors contributing to transgressions in the procurement practices in South African SOEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
African State ◽  
Political Influence ◽  
Structured Interviews ◽  
Content Type ◽  
Executive Level

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.

Leadership of change in South Africa public sector turnarounds

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mampe Kumalo ◽  
Caren Brenda Scheepers
Keyword(s):  
South Africa ◽  
Public Sector ◽  
Current Literature ◽  
Organisational Change ◽  
Director General ◽  
Change Processes ◽  
Structured Interviews ◽  
Content Type ◽  
The Public ◽  
Financial Consequences

PurposeOrganisational decline has far-reaching, negative emotional and financial consequences for staff and customers, generating academic and practitioner interest in turnaround change processes. Despite numerous studies to identify the stages during turnarounds, the findings have been inconclusive. The purpose of this paper is to address the gap by defining these stages, or episodes. The characteristics of leaders affect the outcome of organisational change towards turnarounds. This paper focusses, therefore, on the leadership requirements during specific episodes, from the initial crisis to the full recovery phases.Design/methodology/approachA total of 11 semi-structured interviews were conducted with executives from the public sector in South Africa who went through or were going through turnaround change processes and 3 with experts consulting to these organisations.FindingsContrary to current literature in organisational change, this study found that, in these turnaround situations, leadership in the form of either an individual CEO or director general was preferable to shared leadership or leadership distributed throughout the organisation. This study found four critical episodes that occurred during all the public service turnarounds explored, and established that key leadership requirements differ across these episodes. The study shows how these requirements relate to the current literature on transactional, transformational and authentic leadership.Practical implicationsThe findings on the leadership requirements ultimately inform the selection and development of leaders tasked with high-risk turnaround change processes.Originality/valueFour episodes with corresponding leadership requirements were established in the particular context of public sector turnaround change processes.

Youth high unemployment/unemployability in South Africa: the unemployed graduates' perspectives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zethembe Mseleku
Keyword(s):  
South Africa ◽  
South African ◽  
Work Experience ◽  
Critical Role ◽  
Structured Interviews ◽  
Cooperative Effort ◽  
Content Type ◽  
South African Universities ◽  
Skills Mismatch ◽  
Graduate Unemployment

PurposeThe purpose of this paper is to explore youth graduate unemployment and unemployability as a development problem in South Africa.Design/methodology/approachThis exploratory study applied a qualitative research method to elicit the perspectives of youth graduates regarding their unemployment and unemployability. A total of 30 face-to-face semi-structured interviews were conducted with unemployed youth who recently graduated from five South African universities.FindingsThe results indicate that, as youth graduate unemployment increases in South Africa, graduates become hopeless in terms of securing employment. The participants attributed their unemployment to multidimensional factors that include limited demand in the labour market, skills mismatch and lack of work experience.Research limitations/implicationsThis research exclusively focused on graduates from five South African universities; hence, the results of this small qualitative study cannot be generalised to the entire South African population. However, this paper offers important insights that may form the foundation for a nationwide study on a related topic.Originality/valueThis paper presents important insights that influence policy makers, government and other relevant stakeholders to develop alternative solutions to youth graduate unemployment. This paper recommends that government should play a critical role in bridging the gap between higher education and industry in order to address youth graduate unemployment. It also calls for a more cooperative effort between government, higher learning institutions and employers in order to create job opportunities for youth graduates in South Africa.

Public sector entrepreneurship in South Africa

2019 ◽  
Vol 8 (4) ◽  
pp. 500-512
Author(s):  
Boris Urban ◽  
Mmapoulo Lindah Nkhumishe
Keyword(s):  
South Africa ◽  
Public Sector ◽  
South African ◽  
Middle Level ◽  
Primary Data ◽  
Content Type ◽  
The Public ◽  
Provision Of Services ◽  
Efficiency And Effectiveness ◽  
Organisational Factors

Purpose Many unanswered questions remain regarding the authors’ understanding of how entrepreneurship can be fostered in the public sector. To fill this knowledge gap, the purpose of this paper is to conduct an empirical investigation to determine the relationship between different organisational factors and entrepreneurial orientation (EO) in the South African public sector. Design/methodology/approach Primary data are sourced from middle-level managers at municipalities in the three largest provinces across South Africa. Hypotheses are statistically tested using regression analyses. Findings Results reveal that the organisational antecedents of structure and culture explain a significant amount of variation in the EO dimensions of innovativeness, risk taking and proactiveness. Additionally, the findings on organisational rewards converge with an emerging stream of research which highlights that while rewards works well to motivate individuals in the private sector, they are negatively correlated with entrepreneurship in the public sector. Research limitations/implications The study implications relate to the efficiency and effectiveness of service delivery of municipalities in South Africa. Due to increases in community protest actions, it is necessary not only to maximise efficiency in the provision of services, but also to innovate and be proactive in order to achieve more with less resources. Originality/value By investigating previously unrelated factors in the public sector, the authors create closer conceptual and empirical links between the role of organisational factors and each of the EO dimensions. Furthermore, the study takes place in a relatively under-researched entrepreneurship and public sector context.

Getting innovations out of interactions in the public procurement context

2020 ◽  
Vol 35 (12) ◽  
pp. 2051-2065 ◽  
Author(s):  
Lisa Melander ◽  
Ala Pazirandeh Arvidsson
Keyword(s):  
Public Sector ◽  
Business Model ◽  
Design Methodology ◽  
Public Procurement ◽  
Business Model Innovation ◽  
Structured Interviews ◽  
Demand And Supply ◽  
Content Type ◽  
The Public ◽  
Product Service

Purpose The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public procurement regulations. Design/methodology/approach The authors collected data using qualitative semi-structured interviews of different empirical examples, in which private–public interactions of four different high-technological products are studied. Two products belong to the defence industry and two to the civil industry. Findings The findings point to three types of innovations in public procurement: product, service and business model. The empirical examples further indicate, as suggested in previous studies, that innovation is hindered by regulations that limit interaction between suppliers and the public. In addition, the empirical examples indicate that firms mobilize actors in their network when the buyer is restricted in regard to interaction. The findings also add to the IMP literature by comparing interactions in the three types of innovations in the public procurement context. Originality/value Public procurement is an area where innovations are lagging behind, compared with private procurement. Research points to limited interaction between actors as an obstacle to innovation in public sector collaborations. This paper extends the literature on how organizations interact in the setting of public procurement. The authors identify demand and supply triggers for three types of innovations: product, service and business model innovation.

scholarly journals SME’s disinclination towards subcontracting in the public sector markets: an attributional perspective

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Temidayo Akenroye ◽  
Jonathan D. Owens ◽  
Adekunle Sabitu Oyegoke ◽  
Jamal Elbaz ◽  
H.M. Belal ◽  
...  
Keyword(s):  
Public Sector ◽  
Attribution Theory ◽  
Policy Development ◽  
Public Procurement ◽  
Explanatory Power ◽  
Government Procurement ◽  
Structured Interviews ◽  
Content Type ◽  
North West ◽  
The Public

Purpose This study aims to examine the causes of small and medium-sized enterprises (SMEs) disinclination towards subcontracting in public sector markets. Previous studies have revealed that UK SMEs are reluctant to do business with the public sector through the subcontracting route, but the reasons for this lack of enthusiasm have not been widely researched. Design/methodology/approach Drawing on semi-structured interviews with SMEs competing for public contracts in North West England, a qualitative study was performed, from which several themes emerged. Findings The findings were synthesised into a framework underpinned by attribution theory, to portray situationally and dispositionally caused factors that were used to interpret SMEs’ behaviour. Social implications The findings can guide policy development and government interventions in developed and developing countries, aimed at using public procurement as a policy tool to develop the small business sector. Originality/value This paper contributes in a unique way to an emerging discourse on how subcontracting can facilitate the access of SMEs to government procurement spending. It adds to knowledge regarding the explanatory power of attribution theory – from its base in social psychology.

scholarly journals Public Procurement in the South African Economy: Addressing the Systemic Issues

2020 ◽  
Vol 12 (20) ◽  
pp. 8692
Author(s):  
David Fourie ◽  
Cornel Malan
Keyword(s):  
South Africa ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
The South ◽  
Literature Study ◽  
Goods And Services ◽  
Official Policy ◽  
The Status ◽  
Procurement System

Public procurement fulfils an important role in the economy and public expenditure of a country and can be regarded as a critical indicator of the effectiveness of a government, because it is a central aspect of public service delivery. Notwithstanding various reforms made to date to public sector procurement in South Africa and the application of Supply Chain Management as a strategic policy strategic instrument, the South African public procurement system still faces several challenges and has been strongly criticised. This paper aims to understand the current public procurement environment in South Africa, its dilemmas and challenges, and to propose that public procurement be refocused towards a strategically placed business process, implemented by well-trained and competent procurement officials. The purpose is to provide a theoretical foundation as well as practical guidance regarding the role of public procurement in the South African public sector. The methodology involved an intensive literature study and document analysis to evaluate various official policy documents and official publications to determine the status of South African public procurement. The study found that the majority of challenges faced by public procurement in South Africa can probably be attributed to the implementation of the system, rather than to the system itself. In the shorter and longer term, the public procurement system in South Africa will have no choice but to emerge as a stronger, more resilient, streamlined and efficient provider of goods and services for the greater good of all.

Putting risk management into the corporate sustainability context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lorren Kirsty Haywood
Keyword(s):  
Risk Management ◽  
South African ◽  
Business Models ◽  
Early Stage ◽  
Corporate Sustainability ◽  
Future Research ◽  
Structured Interviews ◽  
Content Type ◽  
New Business ◽  
Sustainability Challenges

Purpose This research investigates what is driving corporate sustainability within South African organisations and to what extent these drivers intersect with risk management. This is important as new and emerging business risks are proving to be directly linked to sustainability issues having implication on long-term organisational performance. This implies that sustainability and risk should not be mutually exclusive. Design/methodology/approach By means of semi-structured interviews, sustainability managers of 11 South African organisations were engaged to gain insight relating to the immediate sustainability issues, risk landscape and the possible intersection between these issues within their organisations. Questions posed were around drivers of sustainability, risks to an organisation, changes in risks, relationship between sustainability and risk. By means of thematic analysis key issues emerging from the responses of the sustainability managers could be identified and themes determined based on similarities. This was followed by trend analysis of the frequency of responses to different sustainability and risk themes to interpret the data. Findings Results reveal that sustainability and risk management are similar in their intent purpose and output both aligned towards reducing impacts and managing uncertainty. However even though sustainability has increasingly become integral to business its value contribution and linkage with risk management differ significantly amongst organisations. This suggests that sustainability and risk management remain two distinct frameworks for managing uncertainty in business. Originality/value Research on integrating a sustainability perspective in risk management is at an early stage. To understand and respond to emerging risks, organisations need to integrate sustainability and risk management into their decision strategies – not only to minimize potential losses but also to exploit new business opportunities arising from the sustainability agenda. Future research should be directed towards advancing systematic methods for identifying and managing sustainability risks such that key sustainability challenges are firmly embedded in the risk management of the business. In this regard, organisations would be in a position to build resilience into their business models and operations.

Contribution of internal auditing to risk management

2016 ◽  
Vol 29 (4) ◽  
pp. 348-364 ◽  
Author(s):  
Philna Coetzee
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Audit Committee ◽  
Internal Audit ◽  
Senior Management ◽  
Minor Effect ◽  
Internal Auditing ◽  
The South ◽  
Content Type

Purpose – There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks threatening an organisation. The purpose of this paper is to investigate the views of chief audit executives (CAEs), the chairs of audit committees and senior management on the contribution of the internal audit functions to risk management in the South African public sector. This contribution is considered in the context of existing risk management structures and the level of coordination between these structures and internal auditing. Design/methodology/approach – The views of heads of internal auditing, chairpersons of the audit committee and the Accounting Officer (similar to the CEO of private sector organisations) of national, provincial and local government organisations were obtained and statistically analysed. Findings – The results indicate that the CAEs have noticeably different views from the other two parties, and that the existence of risk management structures has a minor effect on how the contribution of internal auditing to risk management is perceived. Research limitations/implications – It was decided to not include the views of heads of risk management functions owing to the immaturity of risk management in this sector with in the South African public sector. Practical implications – The results of the study provide internal auditing with information on narrowing the possible gap between the perceptions of senior management and their own perceptions. Senior management could streamline the efforts of these two parties in mitigating the key risk of the organisation. The audit committee, as the independent overseer of internal auditing, will obtain information on whether internal auditing contributes to risk management, and if not, how to address these issues, taking into account the existence (or a lack thereof) of risk management structures. The legislator and regulator of public sector could be influenced to provide clearer guidance or rules in this regard in order to enhance the efficiency and effectiveness of risk management policies and practices. Originality/value – Limited studies have been conducted regarding the coordination of internal auditing and risk management in mitigating the key risks; especially within the public sector domain whether the existence of risk management structures would affect this coordination. Also the views of senior management, as the key stakeholder of internal auditing, on this matter have not yet been solicited.

Supply chain risk mitigation in South Africa: a case study of Eskom

2019 ◽  
Vol 27 (3) ◽  
pp. 1105-1125
Author(s):  
Ellsworth Chouncey Jonathan ◽  
Chengedzai Mafini ◽  
Joyendu Bhadury
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Economic Development ◽  
Risk Mitigation ◽  
Sampling Technique ◽  
Social Implications ◽  
Structured Interviews ◽  
Content Type ◽  
Academic Literature ◽  
African Context

Purpose Interferences to supply chains (SC), regardless of whether they are regular, unplanned or intentional, are progressively distorting SC execution. As such, risk mitigation in SCs has received sufficient attention in the academic literature. However, there is scant research done on this topic within the African context, and none on the SC of electrical energy on that continent. In an effort to address this gap, the purpose of this paper is to focus on the SC department of Eskom, the primary utility company of South Africa and one of the largest on the continent. Design/methodology/approach Adopting a non-probability sampling approach utilising the purposive sampling technique to choose the sampling components from the target population, data were collected through semi-structured interviews as well as additional documentation in various forms. Data interpretation and codification thereof were done using ATLAS.ti 8 from which ten themes emerged. Findings The ten themes that emerged from the analysis of data show that SC risks emanate from value streams, information and affiliations, SC activities and external situations. Furthermore, these are brought into relief within the African context through examples and quotes from Eskom managers. Research limitations/implications Based on the findings, the paper makes five major recommendations that would broadly apply not only to SC risk management (SCRM) in Eskom, but also other African utility companies. Practical implications Companies in emerging economies such as South Africa and other Sub-Saharan countries face a unique set of challenges with regards to SCRM. Some of these are identified in this paper and appropriate recommendations have been made. Social implications Being the largest utility provider in Africa, services offered by Eskom are vital for economic development of South Africa as well as neighbouring countries. As such, the findings of this paper as well as the recommendations have social implications for economic development in that country as well as the region. Originality/value While SC risk management has been studied extensively in the academic literature, to the best of the authors’ knowledge, this is the first paper that attempts to study it within the context of South Africa with focal emphasis on one of the largest corporations in that country.

Risk management in IT projects – a case of the South African public sector

2016 ◽  
Vol 9 (2) ◽  
pp. 389-413 ◽  
Author(s):  
Blessing Javani ◽  
Pantaleo Mutajwaa Daniel Rwelamila
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
Knowledge Sharing ◽  
South African ◽  
The South ◽  
It Projects ◽  
Content Type ◽  
It Project ◽  
The Status ◽  
Practical Implications

Purpose – The purpose of this paper is to study the recognition, application and understanding (status) of risk management in information technology (IT) projects in the South African public sector and thus contribute to the research gap. Design/methodology/approach – A quantitative approach in the form of a survey design was adopted, with data being collected through a questionnaire. The results from the study are compared to the theory and practice of risk management before drawing conclusions on the status of risk management in IT projects. Findings – The findings provide significant statistical support for the conclusion that risk management is being applied in current IT projects and that it is understood by the respective project clients. Research limitations/implications – Though risk management has been studied by several authors, very little is known about its status in the South African public sector. This study sheds light on its application in IT projects and its understanding by IT project clients. Practical implications – The study findings encourage project executives to develop knowledge bases for risk management in IT projects, as well as the corresponding tools. This will ultimately assist in knowledge sharing, which increases chances of IT project success. Importantly, the study also highlights that the relationship between project clients and project teams can be accelerated through knowledge sharing and continuous project communication. Originality/value – The research addresses one of the questions held by many scholars on the status of risk management in IT projects. It advances the recognition of risk management as a knowledge base and the practical implications thereof.

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