Optimising aviation performance in South Africa: a model of supply chain governance and management capabilities

Abstract

Aviation is one of the critical sectors in the South African economy, contributing significantly to employment and the movement of goods and people both locally and internationally. It has strong linkages with upstream and downstream industries such as airports, tourism, land transportation, fuel suppliers, maintenance services, and aircraft manufacturing. The purpose of the study was to examine how supply chain governance (SCG) and supply management capabilities (SMC) influence the organisational performance (OP) and excellence (OE) within the South African aviation sector. The main aim of the study was to develop and test a model of SCG, SMC, OP and OE. The study was guided by the following research objectives: 1. To assess the extent of supply chain governance (SCG) in the South African aviation sector in terms of relational supply chain governance (RSCG), contractual supply chain governance (CSCG), and transactional supply chain governance (TSCG). 2. To evaluate the level of supply management capabilities (SMC) in the South African aviation sector. 3. To determine organisational performance in the South African aviation sector in terms of innovation, competitiveness, operational sustainability, and financial sustainability. 4. To assess organisational excellence (OE) in the South African aviation sector. 5. To examine the relationships between SCG, SMC, OP, and OE in the South African aviation sector. 6. To determine the mediating effects of SMC and OP on the relationship between SCG and OE. 7. To develop an integrated model of SCG, SMC, OP, and OE for application in the South African aviation sector. The study adopted a quantitative approach, involving 530 supply chain professionals, executives, and managers from both the public and private aviation organisations in South Africa, from whom 352 usable responses were obtained. Data were collected using an online survey. The hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that all dimensions of SCG have a statistically significant influence on SMC. Supply management capabilities (SMC), in turn, significantly predict OP. However, OP only partially predicts OE, as two dimensions, namely, competitiveness and operational sustainability, were found to be statistically insignificant. The study contributes to new knowledge by integrating SCG and SMC into a single explanatory model for aviation performance in South Africa. It also offers practical, theoretical, and policy implications for improving efficiency, competitiveness, and governance structures within the aviation sector. In addition, the study proposes a model that can be used to strengthen SCG and attain optimal performance and excellence.