Value Chain Financing and Competitive Advantage of Edible Oil Manufacturing Companies in South Africa: Empirical Review
Kansilembo Aliamutu , PhD in Accounting, Department of Management Accounting, Faculty of Accounting and Informatics Durban University of Technology, South Africa
Keywords:
Competitive Advantage, Value Chain Financing, Operational Efficiency, Market Share..
Abstract
The purpose of this study was to investigate how value-chain finance affects South African manufacturing companies' ability to compete. A hypothesis was developed, and a thorough analysis of pertinent literature was carried out to accomplish this goal. Manufacturing firms that were listed between 2013 and 2023 on the Johannesburg Stock Exchange (JSE) made up the research population. One hundred similar businesses were found. Secondary sources were used to gather data for the study, such as the JSE's 2013–2023 records and the annual reports of the chosen companies. Multiple regression analysis was used to evaluate the hypothesis statistically. The results showed that value-chain finance improves South African industrial enterprises' competitive edge, although in a small way. To maximise value-chain financing, manufacturing companies are advised to switch from functional-based costing to activity-based costing. To increase the uptake and efficacy of this strategy, accountants working for these businesses should also receive sufficient training through conferences and seminars. To improve risk assessment, capital cost management, and competitive advantage enhancement, this study provides insightful information for the edible oil sectors, both present and future, on the application of value-chain financing at different stages of the value chain.