Abstract
Orientation: Manufacturing supply chains in South Africa are susceptible to various internal and external threats that continue to suppress their performance. Information is required that can be used by firms in such environments to overcome the existing threats and improve their supply chains.Research purpose: This study sought to examine the relationship between supply chain dynamism, information sharing and inter-organisational relationships and supply chain performance in the manufacturing sector in South Africa.Motivation for the study: There is a gap in literature on the linkage between supply chain dynamism, information sharing and inter-organisational relationships and supply chain performance in the South African manufacturing sector.Research design, approach and method: Empirical data were collected from a purposive sample of 340 supply management professionals recruited from 31 manufacturing firms based in Gauteng Province. Data were analysed using structural equation modelling, which involved a confirmatory factor analysis and hypotheses tests.Main findings: The results indicate a significant positive relationship between supply chain dynamism and both information sharing and inter-organisational relationships; between information sharing and both inter-organisational relationships and supply chain performance; and between inter-organisational relationships and supply chain performance.Practical/managerial implications: Supply management professionals in the manufacturing sector may use the results of this study as a tool in the diagnoses of supply chain performance-related problems, by checking for the proper alignment of the factors considered in the research.Contribution/value-add: These results validate the importance of effective supply chain management practices in shaping supply chain performance in manufacturing environments. By monitoring and responding positively to the changes in key resources within manufacturing supply chains, managers can be able to improve the sharing of information and develop better relationships among trading partners, leading to superior performance of the entire supply chain.
Highlights
Similar to most developing and developed economies, manufacturing firms in South Africa remain at the epicentre of economic growth
A positive relationship was hypothesised between supply chain dynamism and information sharing (Ha1), which was formulated from the objective that aimed to investigate the relationship between supply chain dynamism and information sharing
It is further concluded that a significant positive relationship exists between interorganisational relationships and supply chain performance in the manufacturing sector
Summary
Similar to most developing and developed economies, manufacturing firms in South Africa remain at the epicentre of economic growth. By 2016, the manufacturing sector was contributing nearly 14% of the country’s gross domestic product (GDP) and employed nearly 2 million people (Trading Economics 2016), making it one of the important pillars of the economy. Despite its importance, the manufacturing sector remains under continuous threat from various factors, such as the weakening of the local currency, increasing global competition, a volatile global economy, shortages of critical skills in South Africa and a host of political, social, technological as well as ecological factors (Pillay 2015). The weakening of the South African rand against major world currencies has been detrimental to the manufacturing sector in that it has made the importation of raw materials more expensive (Statistics South Africa 2016b). The slowing down of the global economy has had negative implications on the South African manufacturing sector in that http://www.actacommercii.co.za
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