Abstract
M.Tech. (Operations Management)
Co-operatives are seen at the vehicle for delivering inclusive economies in developed and developing economies. The co-operatives movement is widely spread all over the world. In India co-operatives play an important role in agriculture and other sectors of production. In Kenya the large part of the population draws living directly from co-operatives and in Canada the co-operatives movement is promoted and embraced. The United Nations also trusts co-operatives and other sectors to deliver on the Sustainable Development Goals by 2030. In this research study attention is focused on South African Sewing Co-operatives based in the Gauteng Province. Although co-operatives promise building of inclusive economies and businesses, there is still a need to focus on business and operational performance which is key to ensuring that they deliver the thought inclusive economy and that they create equity and societal equality. A co-operative is an independent come-together of people governed by its constitution, also following democratic processes in pursuit of both social and economic goals. The history of co-operatives in South Africa dates back to 1922 with a great dominance of agricultural co-operatives. This study is an inquiry on the role played by location decisions of co-operatives and the possibility of employing other location strategies to improve the performance of sewing co-operative. Again in this research project we present the results of our research findings on two of research questions. The primary research question asks, which location decision strategies can be employed by Gauteng’s funded sewing co-operatives to improve operational and business performance? And the secondary research question bothers on the most important decision making factors that influence the funded sewing co-operatives location choices in relation to business performance and what improvement methods are to be employed? These questions are in line with the three objectives of this research study as indicated on the first pages of Chapter 1. The data used in this research was expected to be collected from 264 co-operatives. However, after validating and checking the database list and visiting the co-operatives to assess their existence only 83 co-operatives were operational and met the criteria of the quantitative research methodology employed in this study. A multiple regression analysis was used in this study to understand the validity of the research instrument used, Cronbach’s Alpha was examined and it was above .7 for the items relating to performance, location and funding which were key sections of the research instrument. Ethical consideration was prepared for in this study by obtaining permission from the Department of Social Development to conduct and administer the questionnaires of this research project. On the key findings, it is evident that most of the sewing co-operatives from the four districts of Gauteng, namely, the City of Johannesburg, Westrand, Ekurhuleni and Sedibeng are women run co-operatives and over 60 of the co-operatives had been in existence for over 5 years. Out of the 83 co-operatives, 67 of the sewing co-operatives regarded their enterprises as successful. There are five location strategies which are presented based on the finding of this study. These location strategies carry with value which is the enhancement of sewing co-operatives performance. Performance in this instance refers to operational performance which essentially leads to business performance from the market and financial perspectives. A debrief on research questions is provided in this study and gives a more specific direction on both the primary and secondary questions. The hypotheses of this study are also deliberated upon using the data collected and arranged into graphs which present precise results addressing the objectives of this study and the specifics of each hypothesis. The deliberation on the hypotheses is both theoretical and based on our findings. A framework model on location strategy development and selection is a contribution of this study to academia and the pool of knowledge guiding business practioners working with production co-operatives. The framework suggests that co-operatives are driven by their enterprise goals which are both social, economic and driven by the idea of sustainability. This framework model also reconciles the location factors with the context under which co-operatives operate and aim to achieve their goals, the role of the external and internal environment is also recognized in this framework model. Among other key things our framework model brings into the body knowledge the understanding that co-operatives which have access to contract and project funding are more able to acquire newer and better production resources, including better premises based on a location strategy which suits the co-operatives operational processes including the consideration of supply chain and community factors. Moreover, the framework also presents the hindrances that might impede operational and business performance in a co-operative given dynamics which co-operatives function under. A final point the framework brings up is that co-operatives sustainability through performance improves the livelihoods of those working in the co-operatives and those benefiting in one way or another from the work of a production co-operative. The framework model can be used for training purposes and also for the understanding of small funded production co-operatives as well as their context of operation and to understand the need to invest in improving operational and business performance. In future studies a larger sample is required to perform factor analysis to add value to this field and other studies may take a qualitative approach to investigate the work-study methods and process mapping in production and sewing co-operatives given the interest to revive South Africa’s clothing sector through local brands designed and sewn by local enterprises.