Risk Management as a Tool to Enhance the Sustainability of Fast Moving Consumer Goods SMEs in South Africa
Keywords:
Sustainability, Risk management, Risks, FMCG SMEs.Abstract
Despite Small and Medium Enterprises (SMEs) being numerically predominant and the most vulnerable role players in the economy of many countries, little research has been conducted on risk management and sustainability of SMEs operating in the Fast Moving Consumer Goods (FMCG) sector of South Africa. This paper fills in this gap in knowledge by investigating the extent to which risk management processes of SMEs operating in the FMCG sector of South Africa incorporate robust analysis of the sustainability factors. To achieve this, questionnaires were distributed to a sample of 320 FMCG SMEs in the Cape Metropolitan area. Qualitative data was then gathered by interviewing 2 risk experts in order to validate the quantitative data gathered through a survey questionnaire. The results show that the risk management processes of FMCG SMEs do not incorporate a robust analysis of the components of sustainability and this have a negative bearing effect on their survival. Apart from filling in the gap in knowledge, the paper has also important implications for FMCG SME owner-managers and policymakers while revealing future research avenue.
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Darcy, S.P. & Brogan, J.C. 2001. Enterprise Risk Management. Journal of Risk Management of Korea, 12, 2-4.
Denscombe, M. 2014. The good research guide: for small-scale social research projects. Maindenhead: Open University Press.
De Vos, A.S. Strydom, H. Fouché, C.B. & Delport, C.S.L. 2011. Research at Grass Roots: For the Social Sciences and Human Service Professions: 4th edition. Pretoria: Van Schaik Publishers.
Dogra, B. 2010. Rural marketing. New Delhi: Tata McGraw-Hill Education.
Eichler, C.M., Wu, Y., Cox, S.S., Klaus, S. & Boardman, G.D. 2018. Evaluation of sampling techniques for gas-phase siloxanes in biogas. Biomass and Bioenergy, 108, 1-6.
Environment Agency .2005. NetRegs SM-Environment 2005. Available from: http://www.netregs.gov.uk/netregs/1169119 [Accessed 23/12/2019]
FoodBev SETA. 2011. Sector skills plan for the food and beverages manufacturing sector Available from: http://www.foodbev.co.za/wp-content/uploads/2015/03/FoodBev-SSP-15-16-update-2011.pdf [Accessed 25/11/2019].
Fouad, M.A.A., 2013. Factors affecting the performance of small and medium enterprises (SMEs) in the manufacturing sector of Cairo, Egypt. International Journal of business and management studies, 5(2):157-166.
Gallo, P.J. & Christensen, L.J. 2011. Firm size matters: An empirical investigation of organisational size and ownership on sustainability-related behaviours. Business & Society, 50(2):315-349.
Glavas, A. & Mish, J. 2015. Resources and capabilities of triple bottom line firms: going over old or breaking new ground? Journal of Business Ethics, 127(3):623-642.
Gravetter, F.J. & Wallnau, L.B. 2004. Statistics for the behavioural sciences (6th edn). Belmont, CA: Wadsworth.
Hillary, R. 2000. Small and Medium-Sized Enterprises and the Environment: Business Imperatives. Sheffield: Greenleaf Publishing Ltd.
Jones, G. 2017. Profits and Sustainability. A Global History of Green Entrepreneurship. Oxford: Oxford University Press.
Laurell, H., Karlsson, N.P., Lindgren, J., Andersson, S. & Svensson, G. 2019. Re-testing and validating a triple bottom line dominant logic for business sustainability. Management of Environmental Quality: An International Journal, 30(3):518-537.
Lichtman, M. 2012. Qualitative research in education: A user's guide. California: Sage publications.
Masocha, R. 2019. Social Sustainability Practices on Small Businesses in Developing Economies: A Case of South Africa. Sustainability, 11(12):3257.
Meherishi, L., Narayana, S.A. and Ranjani, K.S., 2019. Sustainable packaging for supply chain management in the circular economy: A review. Journal of Cleaner Production, 237:117582.
Nadaf, Y.B.R. & Nadaf, S.M. 2016. Sustainable business: issues, challenges and strategies for Indian corporate for 21 century. International Journal of Engineering Science, 6(4): 4354-4359.
Pallant, J. 2011. Survival manual. A step by step guide to data analysis using SPSS. Nest Crows: Allen & Unwin.
Pojasek, R.B. 2011. Linking sustainability to risk management. [Online]. Available from: http: / /www.Downloads/Pojasek-2011-Environmental_Quality_Management.pdf [Accessed 13/02/2016].
Quested, T. & Johnson, H. 2012. Household Food and Drink Waste in the UK. London: WRAP.
Schandl, H., & Walker, I. 2017. Social Science and Sustainability. Clayton South: CSIRO Publishing.
Simpson, M., Taylor, N. & Barker, K. 2004. Environmental Responsibility in SMEs: Does It Deliver Competitive Advantage. Business Strategy and the Environment, 13:156-171.
Sitharam, S. & Hoque, M. 2016. Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa. Problems and perspectives in Management, 14(2):277-288.
Stats SA. 2019. Consumer Price Index. Available from:
http://www.statssa.gov.za/publications/P0141/P0141March2019.pdf [Accessed 5/12/2019].
Stats SA. 2018. Manufacturing volume and sales from 1998. Available from:
http://www.statssa.gov.za/publications/P30412/P30412December2018.pdf [Accessed 28/11/2019].
Svensson, G. & Wagner, B. 2015. Implementing and managing economic, social and environmental efforts of business sustainability: propositions for measurement and structural models. Management of Environmental Quality, 26(2):195-213
Van Eeden, S., Viviers, S. & Venter, D. 2003. A comparative study of selected problems encountered by small businesses in the Nelson Mandela, Cape Town and Egoli Metropoles, Management Dynamics, 12 (3):13-23.
Verghese, K., Lewis, H. & Fitzpatrick, L. 2012. Packaging for sustainability. Springer Science & Business Media.
WEF Global Risks Report. 2019. The Global Risks Report 2019, 14th Edition. Geneva: World Economic Forum.
World Wide Fund for Nature report. 2016. Asian Fast Moving Consumer Goods: A Sustainability Guide for Financiers and Companies. Available from:
http://wwf.panda.org/wwf_news/?265550/Asian-Fast-Moving-Consumer-Goods---A-Sustainability-Guide-for-Financiers-and-Companies [Accessed 18/11/2019].
Zott, C. & Amit, R. 2010. Business model design: an activity system perspective”, Long Range Planning, 43(2/3):216-226.
Published
2020-10-21
How to Cite
Chakabva, O. ., Robertson, & Dubihlela , J. . (2020). Risk Management as a Tool to Enhance the Sustainability of Fast Moving Consumer Goods SMEs in South Africa: Array. The Journal of Accounting and Management, 10(3). Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/231
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