Relationship Value, Trust And Supplier Retention In South African Automotive Supply Chains

2016 ◽  
Vol 32 (5) ◽  
pp. 1329 ◽  
Author(s):  
J.A. Badenhorst-Weiss ◽  
A.S. Tolmay
Keyword(s):  
South Africa ◽  
Supply Chains ◽  
South African ◽  
Extra Effort ◽  
Best Value ◽  
Relationship Value ◽  
Second Tier ◽  
Automotive Supply ◽  
The Relationship

Suppliers have a particular role to play in assuring competitiveness in supply chains. This article investigates the relationship between first and second tier suppliers in automotive supply chains in South Africa. Automotive component suppliers (first tier suppliers to assemblers (OEMS) such as Toyota) should make an extra effort to retain their suppliers (second tier), particularly suppliers of strategic parts, to assure the best value adding by the suppliers in the highly competitive supply chain landscape. To assure best value from suppliers they need to be retained in an active trusting, long term, collaborative relationship.  The more the customer trusts the supplier, the higher the perceived value of the relationship and the more likely parties will work together to retain the business relationship. The aim of this quantitative study amongst first tier suppliers is to obtain more insight into the relationships and the hierarchical correlation between the relationship value, trust and supplier retention in automotive supply chains in South Africa. With a regression analysis it was found that both trust and relationship value are substantial predictors of supplier retention, but trust is more important for supplier retention.

scholarly journals Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust

2015 ◽  
Vol 9 (1) ◽  
Author(s):  
Aletta S. Tolmay ◽  
Johanna A. Badenhorst-Weiss
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Collaborative Relationships ◽  
Supply Chain Relationships ◽  
Second Tier ◽  
Automotive Supply ◽  
High Degree

Background: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative relationships, the human behaviour issues related to culture and trust are often much more difficult to solve. Trust is singled out in this article as a contributor to value in the supply chain relationships. Increased trust leads to more confidence resulting in better collaboration.Objectives: The purpose of the study was to explore collaborative relationships between first and second tier suppliers (component manufacturers) in automotive supply chains in South Africa and the role of trust in the relationship value.Method: This quantitative study had been conducted amongst members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), who are suppliers to the large automotive assemblers. The research utilised closed ended questions to obtain the perceptions of managers in automotive component manufacture regarding trust and relationship value with their best suppliers.Results: With a linear regression model it was found that there is a high degree of trust in the collaborative relationships between first and second tier suppliers of components in the automotive industry in South Africa.Conclusion: The automotive industry is one of the most successful industries in South Africa. They compete globally and apply best practices, particularly those in supply chain management. The industry is characterised by networks of collaborative relationships on different levels. These relationships seem to be successful as they are based on trust.

scholarly journals Relationship value antecedents in the South African automotive component supply chain

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Aletta S. Tolmay ◽  
Peet Venter
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
South African ◽  
Three Dimensions ◽  
The South ◽  
Value Drivers ◽  
Automotive Component ◽  
Personal Interaction ◽  
Relationship Value ◽  
Automotive Supply

Orientation: Although literature agrees on the importance of ‘relationship value’, the term is still seen as ambiguous and authors fail to agree on its antecedents. Within a challenging global arena, relationship value is believed to result in business retention. It is therefore critical to have a better understanding of this value to ensure business sustainability within supply chains. Literature suggests that relationship value drivers comprise three dimensions, namely a core offering, sourcing process and customer operations.Research purpose: The contribution of the research reported on in this paper is an enhanced conceptual understanding of relationship value and its salient drivers within the South African automotive supply chains.Motivation for the study: Literature invites more research on relationship value and its drivers. Therefore, the research reported on tested the antecedents of relationship value.Research design, approach and method: Relationship value drivers were tested through empirical research within the South African automotive supply chains by means of a path analysis. The research utilised a closed-ended questionnaire, and targeted managers among Tier 1 buyers and asked them about the relationship value traits of their best Tier 2 suppliers.Main findings: It was found that personal interaction, which forms part of the sourcing process, is viewed as the strongest antecedent of relationship value within the South African automotive supply chains, followed by product quality and delivery.Practical/managerial implications: It is suggested that superior supply chain practices within the South African automotive industry might secure business retention. Automotive component suppliers are therefore advised to implement relationship value strategies to promote higher value through personal interaction.

scholarly journals The correlation between relationship value and business expansion in the South African automotive supply chains

2017 ◽  
Vol 11 ◽  
Author(s):  
Aletta S. Tolmay
Keyword(s):  
Supply Chain ◽  
Linear Regression ◽  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Tier 2 ◽  
The South ◽  
Tier 1 ◽  
Relationship Value ◽  
Automotive Supply

Background: The South African automotive industry includes complete supply chains. The South African automotive supply chain stakeholders operating within the global arena are faced with opportunities as well as challenges. The South African government supports the automotive industry and encourages the vision to drastically expand the industry by the year 2020. However, having to adhere to strict prescriptions from customers regarding product quality and logistics, automotive component suppliers have only the actual relationship with customers through which value can be added. Literature acknowledges the importance of relationship value and agrees that it results in business retention. However, literature fails to prove whether relationship value can result in business expansion where more business is generated.Objectives: The objective of this article was to provide a better understanding of how to optimise relationship value within the South African automotive supply chains between Tier 1 and Tier 2 suppliers. Furthermore, the correlation between relationship value and business expansion was tested through a linear regression model. It was also important to determine whether supply chain stakeholders from different countries of origin and cultural backgrounds attach the same importance to relationship value.Method: This article reports on research which followed a positivistic paradigm, through a quantitative study undertaken in the South African automotive supply chains. Members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), defined as Tier 1 suppliers, were approached to describe their best Tier 2 suppliers. Questions relating to relationship value and business expansion were asked via a closed-ended questionnaire. The aim was to obtain the perceptions of Tier 1 suppliers of their best Tier 2 suppliers in terms of relationship value and business expansion. The data were analysed through a linear regression model.Results: It was found that relationship value directly correlates with business expansion and is therefore highly regarded as important by Tier 1 suppliers in terms of their Tier 2 suppliers in the South African automotive supply chains. Notwithstanding the different countries of origin, respondents are in agreement regarding the importance of relationship value.Conclusion: As the South African automotive industry plays an important role in the South African economy, all efforts should be made to retain and expand the industry. The industry is characterised by a difficult economy, and supply chain role players should constantly investigate new strategies to gain a competitive advantage. It was found that there was a high regard for relationship value which could result in business expansion. Automotive component suppliers are encouraged to invest in a relationship value governance strategy to actively pursue added benefits for all stakeholders.

scholarly journals The bullwhip effect phenomenon in automotive supply chains in South Africa

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
M. J. Naude ◽  
J. A. Badenhorst-Weiss
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Empirical Study ◽  
Supply Chains ◽  
South African ◽  
Bullwhip Effect ◽  
Chain Management ◽  
Automotive Component ◽  
Automotive Supply ◽  
Automotive Component Industry

Purpose: The purpose of the article is to report on research that was completed to explore the concept of the bullwhip effect in supply chains and to illustrate empirically the presence of the bullwhip effect in automotive supply chains in South Africa. Problem Investigated: This article investigates the presence of the bullwhip effect - which was identified through an empirical study - and its causes and implications for supply chain management in the South African automotive component industry. Methodology: A literature study was conducted on the causes and implications of the bullwhip effect phenomenon. This was followed by an empirical study in the form of a survey among South African automotive component manufacturers. Descriptive and inferential statistics were used to determine the significant supply chain problems relating to the bullwhip effect in automotive supply chains. Findings and Implications: The results indicate that automotive component manufacturers are dependent on demand-forecasting information from their customers. They experience long lead times, fluctuating orders, cancellation of orders, excess and slow moving inventory and a lack of integration with suppliers and customers. There are also signs of relationship problems and a possible silo mentality. The mentioned results indicate the presence of the bullwhip effect in South African automotive supply chains. Since the bullwhip effect can have a major impact on organisations' costs, knowing where to invest effort and resources should be a high priority for supply chain managers. Value of the Research: Since the field of supply chain management is extremely dynamic, this article contributes to the body of knowledge and provides new insight into the bullwhip effect phenomenon. The results included in this article could assist parties in automotive supply chains to focus their attention on problems that might be within their control and if solved could lead to improved competitiveness. Furthermore, there is little empirical research on this topic in the South African automotive component industry. Conclusion: It is possible that the bullwhip effect is responsible for inefficiencies in automotive supply chains. Knowledge of the indicators of the bullwhip effect can enable supply chain managers to identify it at an early stage and thus be proactive in preventing its costly influence on the efficiency of the supply chain. The bullwhip effect can be experienced by any industry. This is possibly the case in the automotive component industry in South Africa.

Associations between electronic cigarette use and quitting behaviours among South African adult smokers

2021 ◽  
pp. tobaccocontrol-2020-056102
Author(s):  
Israel Agaku ◽  
Catherine O Egbe ◽  
Olalekan Ayo-Yusuf
Keyword(s):  
South Africa ◽  
Smoking Cessation ◽  
Logistic Regression ◽  
South African ◽  
Electronic Cigarette ◽  
Web Survey ◽  
Cigarette Use ◽  
Quit Attempt ◽  
The Relationship

BackgroundThe South African Medicines Control Council classifies e-cigarettes as Schedule 3 substances and requires them to be dispensed only within pharmacies. e-Cigarettes are however ubiquitous and are marketed as cessation aids. We investigated the relationship between e-cigarette use and smoking cessation among South African adult smokers.MethodsData came from a 2018 web survey of South African adults aged ≥18 years (n=18 208). Cessation-related attitudes and behaviours were assessed. Using multivariable logistic regression, we measured the association between e-cigarette use and cessation behaviours among ever-established combustible tobacco smokers who tried to quit.FindingsAmong current combustible smokers, more e-cigarette ever versus never users believed e-cigarettes could assist smokers to completely quit (35.5% vs 20.4%) or cut down (51.7% vs 26.5%) (all p<0.05). Among ever-established smokers, the odds of sustained quitting at the 12-month mark were lower among those who used e-cigarettes once off/rarely (adjusted OR (AOR)=0.20, 95% CI=0.16–0.24), former e-cigarette users (AOR=0.30, 95% CI=0.24–0.38) and current e-cigarette users (AOR=0.23, 95% CI=0.18–0.29), compared with never e-cigarette users. Among ever-established smokers who had ever tried to quit, 53.6% relapsed into smoking after quitting for any length of time. The odds of relapsing among ever-established smokers who had made a quit attempt and had a quit intention were higher among those who used e-cigarettes once off/rarely (AOR=2.66; 95% CI=2.31–3.08), former e-cigarette users (AOR=1.41; 95% CI=1.18–1.69) and current e-cigarette users (AOR=1.85; 95% CI=1.55–2.22) than never e-cigarette users.Conclusione-Cigarette use depressed long-term cessation. These findings can inform restrictions on unsubstantiated claims of e-cigarettes as cessation aids within South Africa.

scholarly journals Commitment and the emigration intentions of South African professional nurses

2013 ◽  
Vol 18 (1) ◽  
Author(s):  
Jeffrey J. Bagraim
Keyword(s):  
South Africa ◽  
South African ◽  
Employee Commitment ◽  
Western Cape ◽  
Public Health Services ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Tertiary Hospitals ◽  
Quantitative Design ◽  
The Relationship

The emigration of skilled nurses from South Africa exacerbates the crisis in the provision of public health services. A descriptive, quantitative design was applied to investigate the relationship between intention to emigrate and employee commitment. Over 400 registered nurses (N = 419), working within public sector tertiary hospitals in the Western Cape, responded to a cross-sectional survey questionnaire. Three foci of employee commitment (organisational, professional and national) were examined but only national commitment significantly helped predict intention to emigrate from South Africa in the regression model (beta = -0.0525, p < 0.0001). The implications of the results obtained in this study are discussed.Die emigrasie van verpleegkundiges uit Suid-Afrika vererger die krisis in die verskaffing van gesondheidsorgdienste in die land. ’n Beskrywende, kwantitatiewe ontwerp is gebruik om die verwantskap tussen werknemertoewyding en die voorneme om te emigreer te ondersoek. Meer as 400 verpleegsters (N = 419) wat in openbare tersiêre hospitale in die Wes-Kaap werk, het op die vraelys gereageer. Drie fokusareas van toewyding (organisatories, professioneel en nasionaal) is gemeet, maar net nasionale toewyding het daartoe bygedra om emigrasievoorneme te voorspel (beta = -0.0525, p < 0.0001). Die implikasies van hierdie resultate word bespreek.

scholarly journals The protection of environmental interests through corporate governance: A South African company law perspective

2015 ◽  
Vol 11 (2) ◽  
pp. 8-20
Author(s):  
Anthony O. Nwafor
Keyword(s):  
South Africa ◽  
Sustainable Development ◽  
Corporate Governance ◽  
South African ◽  
Common Law ◽  
Company Law ◽  
The Common ◽  
Corporate Administrators ◽  
Environmental Interests

The quest to maximize profits by corporate administrators usually leaves behind an unhealthy environment. This trend impacts negatively on long term interests of the company and retards societal sustainable development. While there are in South Africa pieces of legislation which are geared at protecting the environment, the Companies Act which is the principal legislation that regulates the operations of the company is silent on this matter. The paper argues that the common law responsibility of the directors to protect the interests of the company as presently codified by the Companies Act should be developed by the courts in South Africa, in the exercise of their powers under the Constitution, to include the interests of the environment. This would guarantee the enforcement of the environmental interests within the confines of the Companies Act as an issue of corporate governance.

scholarly journals The relationship between the National Senior Certificate and the National Benchmark Test for accounting students at a South African university

2021 ◽  
Vol 12 (01) ◽  
Author(s):  
Riley Carpenter ◽  
◽  
Lily Roos ◽  
Keyword(s):  
South Africa ◽  
Academic Performance ◽  
Black Students ◽  
South African ◽  
Empirical Research ◽  
Accounting Students ◽  
Strong Correlations ◽  
Benchmark Test ◽  
Factors Influencing ◽  
The Relationship

The South African accounting profession needs racial transformation. Consequently, students pursuing the chartered accountant (South Africa) (CA(SA)) designation, especially at-risk Black students, require adequate support. To be successful, the support must be driven by factors influencing students’ academic performance. As prior academic performance is one such factor, this study examines the relationship between the National Senior Certificate (NSC) exams and the National Benchmark Test (NBT) for students enrolled in an accounting degree at a South African university. Due to numerous moderate and strong correlations between NSC and NBT results, without multicollinearity, it was concluded that both sets of results should be considered as factors contributing to students’ academic performance. The findings highlight the need for further empirical research on NSC and NBT results as determinants of success for accounting students.

scholarly journals Spatial economic attributes of O.R. Tambo and Cape Town airport-centric developments in South Africa

2018 ◽  
Vol 12 ◽  
Author(s):  
Masilonyane Mokhele
Keyword(s):  
South Africa ◽  
Case Studies ◽  
South African ◽  
Cape Town ◽  
Primary Data ◽  
Economic Forces ◽  
Transportation Accessibility ◽  
Normative Models ◽  
The Relationship ◽  
The Empirical Analysis

Background: The concentration of development around airports is a topical subject on the relationship between transportation, accessibility and the distribution of land use. Notwithstanding the existing literature on the analysis of airports and surrounds, and normative models of airport-led development, extensions are required on the empirical analysis of spatial economic attributes of airports and surrounds.Objectives: Objectives of the article were twofold: firstly, to establish the economic activity mix and reasons for the location of firms on and around O.R. Tambo and Cape Town international airports; and secondly, to analyse linkages between firms on and around the two airports as well as linkages those firms have with their metropolitan, regional, national and international contexts.Method: The article focused on the South African case studies of O.R. Tambo and Cape Town international airports and used a telephone survey as the primary data collection method.Results: The article discovered that the developments around O.R. Tambo and Cape Town international airports are spatial clusters that are also linked with other airports in South Africa and beyond.Conclusion: The article extended existing knowledge by providing insights on the spatial economic characteristics of airports and surrounds. The findings can be improved upon with work on other case studies, and potentially be used as bases for extending a theoretical framework that describes and explains the spatial economic forces that drive development on and around airports.

Corporate Structure, Industrial Development, and Structural Change in South Africa

2021 ◽  
pp. 348-374
Author(s):  
Pamela Mondliwa ◽  
Simon Roberts
Keyword(s):  
South Africa ◽  
South African ◽  
Industrial Development ◽  
Large Scale ◽  
Economies Of Scale ◽  
Corporate Structure ◽  
Continuity And Change ◽  
Economic Concentration ◽  
And Control

The orientation of large corporations is at the heart of how countries develop. These firms make large-scale investments and realize economies of scale and scope, as well as make long-term commitments to the learning and research necessary to build capabilities required for industrial development. In many industries and sectors the large firms have key technologies, govern access to markets, and control material inputs which can shape the structure of an economy. The chapter reviews the changing corporate structure in South Africa focusing on the implications for industrial development, the evolving internationalization of South African businesses, and the political economy of economic policy. While the South African economy has remained highly concentrated, the corporate structure has altered in fundamental ways. The chapter identifies key elements of continuity and change to explain the implications of the continued high levels of economic concentration for the economy through the lens of the corporate structure.

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