Alignment of supply chain management practices with policies and regulations in state owned entities in South Africa

Abstract

The study examined the alignment of Supply Chain Management (SCM) practices with the policies and regulations in State-Owned Entities (SOEs) in South Africa. SCM plays a crucial role in the implementation of service delivery programmes and the achievement of socioeconomic imperatives in SOEs in South Africa. However, there is a substantial misalignment between SCM practices and the relevant policies and regulations, which negatively influences the performance of SOEs in South Africa. The research study was designed to employ a combination of exploratory and descriptive research, using quantitative approaches based on a survey of SCM managers in SOEs in South Africa. A structured questionnaire was administered to SCM managers who were selected using simple random sampling. Descriptive statistics using the software, SPSS version 21.0, was used for the statistical analysis and to provide the descriptive analysis results. In addition, Smart PLS 2.0 M3 was used for structural Equation Modelling to assess the alignment between the key variables. The results of the study revealed that, in general, there is an alignment between SCM practices and SCM policies and regulations. However, based on the analysis of the four constructs that were used in the study (SCM strategy, SCM policies and regulations, SCM practices, and SCM performance), the results revealed a misalignment between SCM strategy and SCM performance. The study further revealed a positive and weak relationship between Enterprise Supplier Development (ESD) and SCM performance in SOEs. The poor implementation of these two practices compromises the contribution of SCM to socioeconomic imperatives, and consequently SCM. The results of the five SCM policies and regulations that were examined indicated the poor implementation of Broad-Based Black Economic Empowerment Act (BBBEEA) across SOEs. The study suggests a conceptual framework for SCM in SOEs to enable them to enhance their performance. The study provides an understanding of how SCM could be applied efficiently in the SOEs environment and it provides new insights to the body of knowledge.