Author

  • Phathutshedzo David Lavhelani

    • Department of Logistics, Vaal University of Technology, South Africa
    • South Africa

  • OsayuwamenOmoruyi

    • Department of Logistics, Vaal University of Technology, South Africa
    • South Africa

  • Elizabeth Chinomona

    • Department of Logistics, Vaal University of Technology, South Africa
    • South Africa

Abstract

The objective of the study is to investigate dynamic capabilities, service quality and relationship longevity as determinates of supply chain performance in small to medium enterprises in Gauteng province by focusing on small and medium enterprises in the Vaal region. The study will contribute to the body of knowledge by addressing dynamic capabilities as determinates of supply chain performance in small to medium enterprises. The study employs a quantitative method of data collection. Permission was sought from SME owners. Once permission was granted, the questionnaires were sent out to SME owners. A total 425 participates were chosen to participate in this study. The researcher used the Statistical Package for the Social Sciences (SPSS 24.0) and Analysis of Moment Structures (AMOS 24.0) to analyse the data. Sample data from SME owners/managersof Vaal region was collected for the final data analysis of this project. The sample data were analysed by performing a confirmatory factor analysis (CFA) and structural equation modelling (SEM). The principal finding of this study reveals that dynamic capabilities, relationship longevity and service quality have an impact on supply chain performance. The conclusions and implications of the research findings are provided and recommendations are suggested.

Keywords

References

  • Adams, J. H., Khoja, F. M. & Kauffman, R. (2012). An empirical study of buyer-supplier relationships within small business organizations. Journal of Small Business Management, 50(1), 20-40.
  • Augier, M. & Teece, D. J. (2008). Strategy as evolution with design: the foundation of dynamic capabilities and the role of managers in the economy system. Organization Studies, 29(8-9), 1178-1208.
  • Barreto, I. (2010). Dynamic capabilities: a review of past research and an agenda for future. Journal of Management, 36(1), 256-280.
  • Bayraktar, E., Gunasekaran, A., Koh, S. C. L., Tatoglu, E., Demirbag, M. & Zaim, S. (2010). An efficiency comparison of supply chain management and information systems practices: a study of Turkish and Bulgarian small and medium sized enterprises in food products and beverages, International Journal of Production Research, 48(2), 425-451.
  • Borch, O. J. & Madsen, E. (2007). Dynamic capabilities facilitating innovative strategies in SMEs. International Journal of Techno Entrepreneurship, 1(1), 109-125.
  • Branch, A. E. (2009). Global supply chain management and international logistics. Routledge.
  • Cavusgil, E., Seggie, S. H. & Talay, M. B. (2007). Dynamic capabilities view: foundations and research agenda. Journal of marketing theory practice, 15(2), 159-166.
  • Charles, G. (2009). Competitive advantage in small medium-scale enterprises: A resource-based analysis of Tanzanian family and non-family firms. Ph.D. Dissertation: Dar es Salaam. University of Dar es Salaam.
  • Chang, C. C. (2012). An IPA-embedded model for evaluating creativity curricula. Innovations in Education and Teaching International, 51(1), 59-71.
  • Chin, T. A., Hamid, A. B. A., Rasli, A. & Baharun, A. (2012). Adoption of supply chain management in SMEs. Procedia - Social and Behavioral Sciences, 65, 614 -619.
  • Chinomona, R. & Pretorious, M. (2011). SME manufacturers’ cooperation and Dependency on major dealers. Expert power in Distribution Channels. South Africa Journal of Economics and Management Sciences, 14(2), 170-187.
  • Chinomona, R. & Chinomona, E. (2013). The influence of employees’ perceptions of organizational politics on turnover intentions in Zimbabwe’s SME sector. Southern African Journal of Business Management, 44(2), 57-66.
  • Chinomona, R. (2013). Information technology resource as a facilitator of suppliers collaborative communication, network governance and relationship longevity in supply chains. Journal of Transport and Supply Chain Management pages. http://dx.doi.org/10.4102/jtscm.v7i1.83.
  • Chinomona, R. (2011). None mediated channel powers and relationship quality: A case of SMES in Zimbabwe channels of distribution. Ph.D. Thesis. Taiwan: National Central University. 1-175.
  • Chinomona, R., Lin, J., Wang, M. & Cheng, J. (2010). Soft power and desirable relationship outcomes in Zimbabwe distribution channels. African Journal of Business, 11(2), 182-200.
  • Christensen, R. & Poufet, P. (2010). Managing 3 complexity and changes in SMEs. Journal of Business Research, 109(4), 123-126.
  • Das, T. K. & Tang, B. S. (2000). A Resource Based Theory of Strategic Alliance. Journal of Management, 26(1), 31-61.
  • Danneels, E. (2008). Organizational antecedents of second-order competences. Strategic Management Journal, 29(5), 519-543.
  • Deshpande, A. (2012). Supply chain Management dimensions, supply chain performance and organizational performance: an integrated Framework, International Journal of Business and Management, 7(8), 2-19.
  • Eshghi, A., Roy, S. K. & Ganguli, S. (2008). Service quality and customers’ satisfaction: An empirical investigation in Indian Mobile Telecommunication service. Marketing Management Journal, 18(2), 119-144.
  • Fawcett, S. E., Ellram, L. M. & Ogden, J. A. (2007). Supply chain management: from vision to implementation. Upper Saddle River, N. J: Prentice Hall.
  • Fink, R. C., Edelman, L. F. & Hatten, K. J. (2007). Supplier performance improvement in rational exchanges. Journal of Business & Industrial Marketing, 22(1), 29-40.
  • Ghylin, K. M., Green, B. D., Drury, C. G. & Chen, J. (2008). Clarifying the dimensions of four concepts of quality. Theoretical Issues in Ergonomics Science, 9(1), 73-94.
  • Gunasekaran, A. & Kobu, B. (2007). Performance measures and metrics in logistics and supply chain management: a review of recent literature (1995-2004) for research and applications. International Journal of Production Research, 45(12), 2819-2840.
  • Helfat, C. E. & Peteraf, M. A. (2009). Understanding dynamic capabilities: Progress along a developmental path. Strategic Organization, 7(1), 91-102.
  • Helfat, C. E. & Winter, S. G. (2011). Untangling Dynamic and Operational Capabilities: Strategy for the (N) ever-Changing World. Strategic Management Journal, 32, 1243-1250.
  • Hudson, M. & Smith, D. (2008). Implementing strategically Aligned Performance Measurement in Small Firms. International Journal of Production Economics, 106(2), 393-408.
  • Ihtiyar, A. & Ahmad, F. S. (2012). Impact of Intercultural Competence on Service Quality and Customer Satisfaction in the Grocery Retail Industry: A Conceptual Framework. International Journal of Science and Management, 1, 13-27.
  • Kidder, L. H. (1981). Research Methods in Social Relations. New York, Holt: Rinehart & Winston.
  • Kotler, P. & Keller, K. L. (2010). Marketing Management. 12th ed. USA: Pearson Prentice Hall.
  • Ladhari, R. (2009). Assessment of the psychometric properties of SERVQUAL in the Canadian banking industry. Journal of Financial Services Marketing, 14(1), 70-82.
  • Ladhari, R. (2008). Alternative measure of service quality. Journal of managing service quality, 18(3), 65-68.
  • Lai, K., Wong, C. W. & Cheng, T. (2010). Bundling digitized logistics activities and its performance Implications. Industrial Marketing Management, 39(2), 273-286.
  • Lawton, T. & Rajwani, T. (2011). Designing lobbying capabilities: managerial choices in unpredictable environments. European Business Review, 23(2), 89-167.
  • Mafini, C. & Omoruyi, O. (2013). Logistics benefits and challenges: the case of SMEs in a South African Local Municipality. Southern African Journal of Entrepreneurship and Small Business Management, 6(166), 145-167.
  • Manzouri, M. M., Rahman, M. N. A., Arshad, H. & Ishmail, A. R. (2010). Barrier of Supply chain management implementation in manufacturing companies: a comparison between Iranian and Malaysian companies. Journal of the chines Institute of Industrial Engineers, 27(6), 65-85.
  • Morgan, A., Neil, Douglas., V. W. & Mason, H. C. (2009). Market orientation, marketing capabilities, and firm performance. Strategic Management Journal, 30(4), 909-920.
  • Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
  • Olawale, F. & Garwe, D. (2010). Obstacles to the growth of new SMEs in South Africa: A principle component analysis approach. African Journal of Business Management, 4(5), 729-738.
  • Olugu, E. U. & Wong, K. Y. (2009). Supply chain performance evaluation: trends and challenges. American Journal of Engineering and Applied Sciences, 2(1), 202-211.
  • Paiva, E. L., Phonlor, P. & D’Avila, L. C. (2008). Buyer-Supplier Relationship and Service Performance: an Operations Perspective Analysis. Journal of supply Chain Management, 1(2), 77-88.
  • Pavlou, P. A. & Elsawy, O. A. (2011). Understanding the exclusive black box of dynamic capabilities. Decision Sciences, 42(1), 239-273.
  • Prajogo, D. & Ollhager, J. (2012). Supply chain integration and performance: The effects of longterm relationship, information technology and sharing, and logistics integration. Production Economics, 135, 514-522.
  • Sarstedt, M., Ringle, C. M., Smith, D., Reams, R. & Hair, J. F. JR. (2014). Journal of Family Business Strategy, 5, 105-115.
  • Shephered, C. & Gunter, H. (2011). Measuring supply chain performance: Current research and future directions. Behavioral Operations in planning and scheduling. Springer
  • Supyuenyong, V., Islam, N. & Kulkarni, U. (2009). Influence of SMEs characteristics on knowledge management processes. Journal of Enterprise Information Management, 22(½), 63-80.
  • Tanskanen, K. & Aminoff, A. (2015). Buyer and Supplier Attractiveness in a Strategic Relationship: A Dyadic Multiple-Case Study. Industrial Marketing Management, 33(2), 45-60.
  • Teece, D. & Pisano, G. (1994). The dynamic capabilities of firms: an introduction. Industrial and Corporate Change, 3(3), 537-556.
  • Teece, D. J. (2007). Explicating dynamic capabilities: the nature and micro foundations of (sustainable) enterprise performance. Strategic Management Journal, 28(11), 1319–1350.
  • Terziovski, M. (2010). Innovation practice and its performance implications in small and medium enterprises in manufacturing sector. A resource based view. Strategic management Journal, 30(31), 892-902.
  • Thakkar, J., Kanda, A. & Deshmukh, S. G. (2009). Supply chain management for SMEs: A research introduction. Management Research News, 32(10), 970–993.
  • Trkman, P., Mccormack, K., De Oliveira, M. P. V. & Ladeira, M. B. (2010). The impact of business analytics on supply chain performance. Decision Support Systems, 49, 318-327.
  • Vitasek, K. (2008). Supply Chain Management Terms and Glossary. An International Journal, 12(2), 153-158.
  • Weiss, A. M. & Weitz, E. (1992). Converting from independent to employee Salesforce: The role of perceived switching cost. Journal of Marketing Research, 29, 101-105.
  • Wu, T., Wu, Y. C. Y., Chen, Y. J. & Goh, M. (2014). Aligning supply chain strategy with corporate environmental strategy: a contingency approach. International Journal of Production Economics, 147, 220-229.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Lavhelani, P. D., Omoruyi, O., & Chinomona, E. (2018). Dynamic Capabilities as Determinants of Supply Chain Performance in Small to Medium Enterprises in Gauteng Province. Journal of Economics and Behavioral Studies, 10(2(J), 165-175. https://doi.org/10.22610/jebs.v10i2(J).2226

Share this article

License

Copyright (c) 2018 Phathutshedzo David Lavhelani, OsayuwamenOmoruyi, Elizabeth Chinomona (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 10 No. 2(J) (2018) Work, Skills & Economic Policy in African Markets View issue contents

Published

2018-05-19

Submissions

Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.

Make a Submission