The Role of Value Chain Financing and Performance on Profitability of Edible Oil Firms in South Africa
- Kansilembo Freddy Aliamutu , PhD, Department of Financial Accounting, School of Accounting, Economics and Finance, University of KwaZulu Natal, South Africa
- Msizi Vitalis Mkhize , Professor, Department of Financial Accounting, School of Accounting, Economics and Finance, University of KwaZulu Natal, South Africa.
- Msomi Xolisile Adelaide , PhD, Faculty of education, University of Zululand, South Africa
Keywords:
Value Chain Financing, Value Chain Performance, Firm Profitability, Institutional Support, Edible Oil Firms.
Abstract
Firm performance is a critical factor that can be enhanced through value chain financing, warranting greater emphasis in contemporary research. Consequently, this study examines the influence of value chain financing on value chain performance and firm profitability within the edible oil sector in South Africa. Specifically, it explores the mediating role of value chain performance in the relationship between value chain financing and firm profitability, as well as the moderating role of organisational support in these relationships. Data were collected through surveys administered to employees of edible oil firms. Smart-PLS was employed to assess the reliability of the data and analyse the relationships among variables. The findings reveal that value chain financing positively influences both value chain performance and firm profitability. Moreover, value chain performance mediates the relationship between value chain financing and firm profitability, while institutional support significantly moderates these relationships. The study provides valuable insights for regulators, offering guidance on developing policies to enhance firm performance through effective value chain financing.