Optimising supply chain effectiveness among state-owned enterprises in South Africa

Abstract

Background: State-owned enterprises (SOEs) play an important role in the economies of many developed and developing countries. However, most SOEs fail to provide efficient or effective public service delivery. Therefore, it is necessary to investigate how SOEs in Gauteng province in South Africa can enhance supply chain effectiveness (SCE).Objectives: In the study, the relationships are investigated between total quality management (TQM), competitive advantage (CA), innovation (IN), SCE in the selected South African SOEs in Gauteng province.Method: A quantitative design was adopted in which a survey questionnaire was administered to 863 supply chain practitioners working in SOEs in South Africa Gauteng province. Data were analysed with the aid of Statistical Package for Social Science (SPSS 27.0) and SMART PLS (version 3.0).Results: The results of the study showed that knowledge management and CA predict the establishment of SCE in SOEs in the Gauteng province. However, IN was not supported but is of significance towards achieving SCE in SOEs in the Gauteng province.Conclusion: The adoption of CA by SOEs over industry competitors is essential toward success.Contribution: The results of this study will contribute to the improvement of South Africa’s economy by enabling SOEs to establish a competitive edge in their respective industries.