Original Research

Entrepreneurial networking in supply chain relationships in the automotive component industry

R. C. O’Neill, M. J. Naude
Acta Commercii | Vol 11, No 1 | a149 | DOI: https://doi.org/10.4102/ac.v11i1.149 | © 2011 R. C. O’Neill, M. J. Naude | This work is licensed under CC Attribution 4.0
Submitted: 06 December 2011 | Published: 06 December 2011

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R. C. O’Neill, University of KwaZulu Natal, South Africa
M. J. Naude, University of KwaZulu Natal, South Africa

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Abstract

Purpose: The point of departure in this article is that the principles that underpin entrepreneurial networking also apply to the establishment of supply chain relationships. The theoretical base for the need for entrepreneurial networking can be found in Kirzner's theory of entrepreneurship that argued that entrepreneurs identify and act upon profit opportunities that exist in disequilibrium in order to equilibrate the economy.

Problem investigated: This article explores the possibility of implementing entrepreneurial networking in supply chain relationships in the automotive component industry.

Methodology: Kirzner's theory is used as a theoretical base to support the case for the development of supply chain relationships. The literature with regard to supply chain management and its relevance to entrepreneurial networking is first dealt with. The case for implementing entrepreneurial networking to strengthen supply chain relationships in the automotive component industry in South Africa is then presented.

Findings: The findings of this article indicate that the principles underlying entrepreneurial networking could be applied to supply chain relationships in the automotive component industry in South Africa. The argument is mainly based on the sustainability and profitability potential of entrepreneurial networking and the similarities that exist between entrepreneurial networking and supply chain management relationships.

Originality: This research is original as it explores the possibility that the principles that underpin entrepreneurial networking also apply to the establishment of supply chain relationships in the automotive component industry. Furthermore, there is a need for published research in South Africa on supply chain management, particularly relationships within the supply chain.

Conclusion: Based on the sustainability and profitability potential of entrepreneurial networking and the similarities that exist between entrepreneurial networking and supply chain relationships, the principles underlying entrepreneurial networking can be applied to supply chain relationships in the automotive component industry in South Africa. The unique challenges facing this industry in the current global market further strengthen the case for the implementation of entrepreneurial networking.


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