Search results

This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their supply chains.

The empirical research of this paper is based on a multiple case study and on interview data of foreign buyers and their entry into African supply markets: five Finnish companies and five Chinese companies were interviewed in 2014-2015.

The authors find that Finnish firms make relatively small investments and start sourcing operations on a small scale, whereas Chinese firms are running large infrastructural projects, relying on local sourcing. African firms typically only play modest roles with little value capture in the chain, supplying raw materials and simple products. The African infrastructural and cultural context makes it challenging for foreign firms to provide local suppliers with more strategic roles in their chains, thus hindering integration of local firms into global value chains.

This paper is one of the first to offer a comparison of Finnish (Western) and Chinese (other emerging economy) firms’ sourcing from Africa and provides understanding of the role of African suppliers in current value chains. The authors offer a qualitative exploration of why companies invest in African suppliers and of the scope of African presence in global value chains.

The purpose of this paper is to explore the scope of sourcing research in Sub-Sahara African (SSA) from scholarly journals published from 1980 to 2013 on sourcing-related issues. The study identifies what is known about sourcing from this region and the implications for managers and researchers in supply chain management.

Totally, 40 scholarly journals (supply chain journals and other journals publishing on diverse business topics) were found relevant and reviewed. Content (all field) search using the names of each SSA countries (e.g. Nigeria, South Africa, Ghana, etc.) was carried out in the supply chain journals to filter out articles discussing sourcing-related topics. For other business journals, keyword search was performed (procurement, sourcing, purchasing, outsourcing, supplier relations, supplier selection, supplier development, supply management, offshore, supply chain and logistics).

The literature review suggests that studies discussing sourcing issues in SSA have focussed mainly on challenges of sourcing from SSA, and they provide some insights on implementation of supply chain tools such as total quality management, negotiating and selecting suppliers from SSA, and just-in time purchasing. However, the authors found that there is an under-representation of this region in supply chain management literature. More so, the articles discussing sourcing issues in Africa are limited in scope empirically and theoretically in comparison with the large amount of contributions in other emerging economies of Asia and developed economies.

The limited amount of publications and contributions does not allow us to provide an integrated framework for sourcing from SSA.

There is a need for future research to explore how the SSA context could enhance theorizing in supply chains. Also, there is need for researchers to extend the sourcing debate from the over emphasis on technology sourcing, knowledge intensive service outsourcing and component sourcing to other lower value-added products such as agricultural products and other raw materials sourced in SSA.

This paper is one of the first to explore the scope of sourcing in Africa. As the findings suggest, there have been limited amount of papers published about this region. The review provides a perspective for researchers to explore this region and to aid theory development in supply chains. It also provided implications on how to support research publication focussing on this region and how to inform managerial perceptions on sourcing from SSA.

The purpose of this study is to examine why Sub-Saharan Africa (SSA) is not currently a major player in producing apparel for the US market and determine if SSA is likely to become one because of several opportunities that the region offers, including relatively low labor wages, an ample labor force and duty-free access to the USA through the 10-year renewal of AGOA.

In-depth interviews were conducted with eight high-level executives in apparel sourcing and trade agencies to obtain their views on the opportunities and challenges of sourcing in SSA in relation to other major apparel sourcing regions. A descriptive analysis of the qualitative data was used to answer three research questions.

The findings reveal that SSA is a competitive region to source from, because of low labor wages and the duty-free benefits through AGOA. However, several challenges hinder a significant increase in sourcing from SSA. The executives recommended that for SSA to be a significant force in the global apparel market, vertical supply chains should be developed, where raw materials like fabric are sourced from within the country/region and SSA governments should become more involved in business environment improvements.

At present, there is limited academic literature on sourcing and supplier selection in Africa, particularly in textile and apparel sourcing in SSA. Based on interviews from high-level executives engaged in the sourcing decision-making process, this study reveals the benefits, challenges and opportunities for sourcing apparel from SSA countries.

This paper aims to describe the impact of the labor market on the integration of Africa into the global supply chain (GSC).

The analysis of trends and comparison of data for 55 nations and territories in Africa using existing data from the World Bank and International Labor Organization, and government and nongovernment reports took place using qualitative content analysis methodology.

Africa’s labor market enhances the continent’s integration into the GSC despite challenges in other areas, with three pillars identifying the labor market’s strategic sourcing decisions.

The analysis is limited to trends analysis, some of which may have changed during the study.

The findings will enable the global business industry and governments to envision the potential and design Africa’s labor market competitiveness across the African continent. The findings also establish the necessity and opportunity for enhanced infrastructure to attract additional foreign direct.

The social implication of this paper is beyond the potential of Africa’s labor market. The paper illustrates how the African is setting to become the next sourcing hub for the global supply chain, allowing scholars to close any prevailing global sourcing gap in research.

This paper describes the potential of Africa’s supply of low-cost labor market and its integration in the GSC.

Increasingly, sourcing decisions are routinely including contract manufacturers and suppliers in developing countries. While many studies have researched and identified the criteria for selecting suppliers in general terms, there has been a dearth of studies on the criteria for choosing amongst suppliers in developing countries including suppliers in Eastern Europe, Asia and Africa. The purpose of this paper is to investigate the criteria for choosing amongst suppliers in different developing countries.

The methodology consists of a series of case studies involving six firms some of which are sourcing from developing countries and some that are based in developing countries and supply lead firms in developed countries.

Cost, physical and cultural proximity, political factors and reliability are found to be the primary criteria for sourcing decisions that include suppliers in Eastern Europe, Asia and Africa. Further, the paper identifies why these criteria are used and the drawbacks in using them.

A key limitation of the study is generalizability. Based on the use of a case study methodology, caution should be exercised in generalizing the results of the study.

In spite of the limitations, this paper contributes to the extant literature on sourcing from developing countries. It provides valuable insights for global purchasing managers interested in sourcing from developing countries in terms of the criteria for choosing a particular location for sourcing and selecting a supplier within a given location.

The South African automotive industry, which is the most significant sector in the South African economy, needs to function efficiently to compete globally. The purpose of this paper is to report on a study that investigated the challenges faced by the South African automotive component manufacturers and their suppliers and provide a structure and identify the dependencies between these challenges.

Interpretive structural modelling (ISM) was adopted to explore the supplier relationship challenges and the dynamics and interlinkages between these challenges. ISM was deemed appropriate, as it is a multi-criterion decision-making technique suited for complex problems and provides an ordered, directional framework.

The findings revealed that advanced communication, rapid change in demand and dependence on a single customer are independent problems but have a lesser feedback loop and do not create instability by ripple effect. Interdependencies, on the other hand, create lesser ripples when tackled.

Findings of this study will be able to guide all the stakeholders: the policymakers and the automotive industry players to target the driving issue which can bring efficiency in the South African automotive supply chain. If the automotive components manufacturers (ACMs) are able to have more than one customer, their reliance on one will decrease and the systems will improve which shall benefit the industry. This methodology can also be used in future for determining the roadmap for complex issues.

The framework presented in this paper provides decision makers with a realistic picture of their situation by providing insight into the interrelationships, ranking them by importance and aiding in creating a roadmap for addressing identified challenges.

The purpose of this paper is to review the literature on logistics and supply chain management (SCM) in Africa over the last few decades. It provides a comprehensive assessment of theory application regarding the research articles published between 1994 and 2016.

In this structured systematic literature review, a set of 110 articles on SCM research in Africa is assessed.

The authors present the state-of-the-art review on logistics and SCM research in Africa. Extant literature shows that most research works focused on operational aspects of logistics and SCM and that papers drew heavily on theories inspired by strategic management, marketing, micro/macroeconomics and organizational behavior theories. Also, most of the papers with theoretical background can be categorized into theory matching and theory dressing and only a minority of theoretical papers belongs to theory suggestion category. Furthermore, based on the findings, the authors present a framework to characterize the peculiar aspects of Africa-based SCM and logistics practices and provide research propositions related to underexplored aspects of logistics and SCM in Africa.

This study has a number of implications. Practitioners and researchers will gain a greater understanding of how logistics and SCM are carried out in Africa and the type of issues that have been addressed. Furthermore, researchers will be able to identify areas that need greater research attention in Africa.

This study is one of the first literature reviews of publications on logistics and SCM in Africa. It presents an overarching map of the research to date and a series of propositions to inform future research.

The purpose of this paper is to analyse the extent to which transaction cost theory on hybrid governance structures can explain hybrid personalities observed in the South African sugar industry.

Three governance structures used simultaneously by the same company to purchase sugar cane from small-scale growers are described in detail. One of these structures is close to a market arrangement, the other two are hybrids. The discriminating alignment hypothesis and more recent work on hybrid models are used to explain the factors driving the choice for a hybrid arrangement and determining their specific form. Factors not covered by theory are identified.

At least two areas would need to be included to explain the specific form taken by the studied governance structures: production characteristics and financial constraints of the transacting parties. Furthermore, the importance of national and local regulations in affecting organizational form by determining what is and is not possible is demonstrated.

This case study highlights limitations of current theory in fully explaining the “personality” of governance structures. Future work should not shun the finer details of governance structures and their interaction with the institutional environment.

Inclusive business models are promoted as tools for poverty alleviation and economic development. Public involvement plays an important role, however, more research is required to understand its reach and leverage its full potential.

This paper is the first to rigorously apply transaction cost theory to inclusive business models in agricultural sourcing, an area which is rapidly gaining prominence on the development agenda. It shows that a complete understanding requires going beyond current theory.

At the end of the case discussion, students should be able to:▪ analyse and discuss networks as a form of social capital;▪ identify and discuss alternative growth strategies for an small, medium, micro enterprise (SMME) in the context of prevailing challenges;▪ use the six domains of the entrepreneurship ecosystem to identify and discuss factors that enhance and challenge a business with particular reference to an SMME; and▪ analyse and understand the key dimensions of entrepreneurial behaviour using the case protagonist as an example.

Nhlanhla Dlamini, the managing director of Maneli Pets based in Johannesburg, South Africa had opened an office in Cincinnati in the USA in July 2019 to take over the distribution and marketing of the company’s high-quality protein pet treats. Just over eight months later, the COVID-19 pandemic exploded across the world resulting in unprecedented disruption to people’s lives, world trade and the global economy.Now, in June 2022, Dlamini contemplated the successes and challenges he had experienced since starting Maneli Pets in 2016, not least of which was parting company with US-based Novel Dog LLC, which had previously marketed and distributed the pet treats. He had built an internationally accredited factory from scratch, produced pet products and a brand that was appealing to the competitive international market, and exported to 12 countries around the world. However, Dlamini had also faced the retrenchment of a large number of staff, the breakdown of the relationship with Novel Dog, the difficulties of setting up a distribution business in the USA along with overseeing the South African factory, and in September 2019, his co-founder, Sipha Ndawonde, had left Maneli Pets.Maneli Pets had served Dlamini’s philanthropic purpose of creating jobs and contributing to the growth of the South African economy. Despite the setback of parting ways with Novel Dog, he hoped to continue to create jobs and return to and exceed the staff numbers he had achieved by 2018, regardless of the hard work involved.In his dual position of managing director of Maneli Pets, based in Johannesburg, and sales director of the distribution and marketing arm, Nandi Pets Inc. in Cincinnati, Dlamini had a global view of the companies’ financials that he realised had been missing initially. Would the new structure of Maneli Pets he had created in 2019 in a pre-pandemic world see the company profitable by the end of 2022? What else could he do to take the company to the next level?

MBA, Masters in Management, Postgraduate Diploma in Business, Executive Education short courses.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.