Proposal Draft - VXX11.1 19july2024
Proposal Draft - VXX11.1 19july2024
Proposal Draft - VXX11.1 19july2024
1.1 Background
The economic performance of South Africa, notwithstanding its substantial natural resources
and potential for upward growth, has exhibited underperformance in recent years, attributable
to an array of structural impediments and economic setbacks. Research indicates that
addressing these determinants through all-encompassing policy reforms and specifically aimed
interventions is pivotal for rejuvenating the South African economy (Aron et al., 2009; Botha et
al., 2021; Hollander et al., 2024; Mlachila & Moeletsi, 2019; Nomafu et al., 2023; Rogerson,
2016; Soni, 2014).
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This study views a B2B online marketplace as a digital transaction platform (Hänninen, 2020)
defined as “intermediaries or online marketplaces that make it possible for people and
organizations to share information or to buy, sell, or access a variety of goods and services”
(Cusumano et al., 2019, p. 19). Furthermore, these digital transaction platforms operate in
ecosystems defined as complex networks of interdependent firms that collectively benefit from
network effects based on co-operation and competition between such firm (Beltagui et al.,
2020; Bogers et al., 2019; Kapoor et al., 2021).
Most management and information systems literature about online marketplaces concentrates
on B2C platforms while paying minimal consideration to B2B platforms (Anderson et al., 2022;
Latinovic & Chatterjee, 2024; Madanaguli et al., 2023). Transferring B2C concepts, methods,
and procedures to B2B holds excellent potential for expanding and understanding B2B platform
emergence and orchestration (Arnold, 2024). To contribute in closing this research gap, Arnold
(2024) then proposes the exploration of how B2B platforms navigate the tension between
innovation and relationship preservation as an area of future research. Exploring the factors
affecting the performance of B2B digital platforms remains vital for this understudied global
topic (Shree et al., 2021; Thitimajshima et al., 2018; Wang et al., 2012).
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o Part A: A systematic literature review to consolidate the socio-technical factors (endogenous
and exogenous) and relevant theories from previous studies, i.e., the STS theory,
Institutional theory, and the TOE framework.
o Part B: Ranking-type Delphi study with B2B OM stakeholders/ experts. Any additional
factors identified during workshops will be added. The participants will then rank the factors
using a 5-point Likert scale.
o Part C: Key socio-technical factor dynamics will be mapped using a causal-loop diagram tool
to analyze the cause-and-effect relationships among the factors.
o Part D: The factors will then be utilized in designing a conceptual framework using a Viable
Systems Model classifying the factors under Environment (E), Management (M), and
Operation (O) aligning to the VSM theory (Beer, 1979). The framework will be reviewed with
critical stakeholders for validation through a focus group.
o Part E: The conceptual framework developed in Part D will also be discussed with key
stakeholders in a few other countries outside of South Africa through interviews to further
evaluate the framework and theory and ensure it incorporates key regional socio-technical
factors.
Understanding these aspects will help policymakers, industry stakeholders, and SMEs adopt
B2B online marketplaces and support SME growth and innovation through the Government’s
ESD program (Commission, 2022). The collaboration between businesses, government entities,
and industry associations is critical in ensuring sustainable business growth and economic
empowerment (GIBS Entrepreneurship Development Academy (GIBS EDA), 2024).
Main Question
How do B2B Online Marketplace systems impact SMEs in an Enterprise Supplier Development
Program?
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How can critical systems thinking be applied in B2B Online Marketplace platforms for SMEs to
study the socio-technical elements in a sophisticated digital transaction ecosystem?
Sub Questions
Research SQ 1: What socio-technical factors influence SMEs’ adoption of B2B OM?
Research SQ 2: How do critical socio-technical factors influence cause-and-effect relationships
in SMEs’ adoption of B2B OM?
Research SQ 3: To what extent does collaboration model adoption impact B2B OM adoption by
SMEs for ESD programs?
How can service businesses develop and sustain customer engagement through effective
interactions via virtual platforms in B2B markets?
How can B2B Online Platform operators develop and sustain platform engagement through
effective interactions via virtual platforms in B2B markets (conceptual framework).
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Delving into a literature review functions as an initial stage in the research procedure,
permitting researchers to spot voids in current knowledge, merge pertinent findings, and create
a theoretical basis for their inquiry. By critically examining prior studies and scholarly
contributions, researchers are able to garner beneficial insights into the subject, identify
patterns, detect literature gaps, and refine their research queries or suppositions. As
emphasized in the referenced works (Idris and Azahari (2024) (Zainudin et al., 2020), the
amalgamation of varied outlooks and results from previous research aids in a more profound
grasp of phenomena. In carrying out a literature review, an essential task is recognizing gaps in
the current knowledge base within a specific field of study. Furthermore, a comprehensive
review of literature is of substantial importance in determining research outcomes. As shown
by (Ramey-Collier et al., 2023), detailed literature reviews yield key insights into existing gaps in
knowledge and provide pivotal evidence-based practices potentially enhancing research output
quality.
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pinpoint stage-specific variances, thereby contributing to the theoretical enrichment and
functional employment of SLRs across assorted disciplines. Systematic literature reviews enable
researchers to draw upon diverse perspectives and evidence, thereby enhancing the overall
credibility and validity of the study findings (Somarriba Arechavala et al., 2022). In this study, a
systematic literature review following (Tranfield et al., 2003) was used to gain a thorough
understanding of B2B online marketplaces.
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eligible studies with an additional 6 articles identified through a review of citations. After
conducting a full text review a total number of 94 studies were considered for this study. The
process followed during this exercise is illustrated in figure 1.
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2.2.6 Publication Timeline
The number of studies down in this domain has nearly doubled on an average basis annually
post the covid-19 period with 8 articles published so far in 2024 (fig.2) mainly due to the
challenges faced in B2B firm-customer interactions due to the pandemic induced restrictions
(Bond III et al., 2020).
In terms of number of citations (Li et al., 2018) study on digital transformation by SMEs came
out the highest followed by (Täuscher & Laudien, 2018) and (Sila, 2013) being the third highest.
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2.2.7 Theories Covered in Studies
Multiple studies have attempted to uncover the motives, forms and critical success factors for
B2B Online Marketplace adoption by SMEs. The adoption of the B2B Online Marketplace can
be examined using a number of theoretical perspectives and frameworks including socio-
technical theory (Trist, 1981), technology-organization-environment framework (Tornatzky et
al., 1990), institutional theory (Meyer & Rowan, 1977), diffusion of innovation theory (Rogers et
al., 2014) , resource-based view theory (Barney, 1991), technology acceptance model (Davis et
al., 1989), and the unified theory of acceptance and use of technology (Venkatesh et al., 2003).
Please add a diagram to showcase any linkages between these seven theories/frameworks and
add more theories/framework if needed for a more holistic picture on relevant theories related to
B2B Online Marketplace acceptance for this study.
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2.2.7.3 Institutional Theory
Please add summary of theory and relevance to B2B Online Marketplace for SMEs. Highlight the
critical success factors in the theory/framework.
2.2.7.7 Unified Theory of Acceptance and Use of Technology (UTAUT 1,2 and 3)
Please add summary of theory and relevance to B2B Online Marketplace for SMEs. Highlight the
critical success factors in the theory/framework.
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2.2.8 Critical Success Factors Theories in Studies
Endogenous Factors
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2.2.8.3 Cybersecurity
Please add summary of this factor and its impact on B2B Online marketplace adoption by SMEs.
Please include citations.
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2.2.8.10 Seamless payment capability
Please add summary of this factor and its impact on B2B Online marketplace adoption by SMEs.
Please include citations.
2.2.8.11 Onboarding experience (suppliers, buyers and platform collaborators) and Access to
capital funds
Please add summary of this factor and its impact on B2B Online marketplace adoption by SMEs.
Please include citations.
Exogenous Factors
2.2.8.16 Government regulations
Please add summary of this factor and its impact on B2B Online marketplace adoption by SMEs.
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Please include citations.
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2.1%. Thus, the poor economic outlook of South Africa affirms that the country consistently has
a low level of economic growth. As a result, South Africa has lower economic growth despite
the national development plan for 2030. However, it is essential to note that the South African
economy is the second largest in Africa and the most industrialised, technologically advanced,
and diversified economy in the African continent.
Thus, to combat unemployment and inequality, the South African government launched its first
national development plan in 2012. To develop the plan, NDP considered different parameters,
such as the perspectives of individuals, communities, businesses, and government agencies.
The cumulative efforts of every society member have contributed immensely to developing a
clear direction for South Africa and developing a list of goals that can be achieved to ensure a
positive and sustainable future for the South African people and economy (Auriacombe and
Meyer, 2020). However, despite the NDP 2030, the South African economic variables and the
goals indicate a negative outlook.
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The South African Reserve Bank SARB developed a vision with nine specific goals aligned with
NDP 2030 to address some challenges. SARB Vision 2025 proposed unprecedented changes
through the national payment system to support financial inclusion, financial stability and
security, regional integration, transparency and public accountability, cost-effectiveness,
interoperability, clear and transparent regulatory and governance framework, flexibility, and
adaptability (SARB, 2018). For instance, about 80% of South Africans have bank accounts,
whereas most consumers use cash-based transactions. This method of transaction is risky and
costly for business owners. Also, it prevents small and micro businesses from entering the
formal economy. Thus, to enable growth in the payment sectors, South African regulators and
the government, in association with the central bank, had to develop a plan for an open and
competitive market.
The SARB talks in detail about financial inclusion and eliminating the digital divide by drawing
more people into the formal economy. However, digital payment products and services must
better serve informal sectors such as SMMEs to achieve efficient financial inclusion and close
the digital divide (Ozow, 2022). South Africa has about 2,404,564 at the end of Q3 of 2021,
including 677,786 formal SMMEs and 1,641,859 informal SMMEs (Seda, 2021). The total
number of SMMEs increased by 1.7% compared to Q3 of 2020. However, the number of
employees in SMMEs is reduced by 3% providing jobs to 9,758,313 (Seda, 2021). The financial
performance of the SMME segment is exceptional despite the job losses as the total turnover
increased by 15.7% y-o-y, which is rapid compared to larger enterprises (Seda, 2021). These
statistics indicate that SMMEs are significant in the South African economy. Thus, the financial
inclusion of SMMEs is essential for the success of NDP 2030 and SARB vision 2025.
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accounting for three fourth of the jobs on average. Similarly, SMMEs are the primary
contributors to creating value, generating about 55% of the added value on average (Mwale,
2020). The contribution of SMMEs in emerging economies is close to 45% of the total job
creation and 33% of the total GDP. However, while considering the contribution of the informal
business, the SMMEs rank the highest as it contributes to half of the total job creation and GDP.
However, the governments of many countries are facing obstacles such as low growth rates,
poor trade and investment, and increasing inequality (OECD, 2016). This situation often
adversely impacts consumer satisfaction and globalisation initiatives. Governments worldwide
have recognised the issues and begun the development of SMMEs to promote growth by
creating an environment which is easy to adapt to and thrive. These initiatives further help in
helping overall economic growth and global inclusiveness. SMMEs have globally proven that
they can play a significant role in achieving sustainable development goals through encouraging
sustainable and inclusive economic growth categorised by creating jobs, industrialisation and
innovation while reducing income inequalities (OECD, 2016).
India is a good example where the government has been using measures to help and promote
SMMEs. The data shows that SMMEs employ about 69 million people in India, and their
contribution is increasing the GDP by 11.5% annually (Mwale, 2020). This annual growth in GDP
is much faster than the total GDP growth of the country. India has the Ministry of Micro, Small,
and Medium Enterprises, established in 2007, but the efforts of the Indian government to assist
SMMEs date back to 1999. The government’s contribution through developing and
implementing the policies and goals can help SMMEs, such as providing access to credit,
supporting technology modernisation, and providing training and educational opportunities to
SMMEs owners and managers (Mwale, 2020).
The South African government began promoting small businesses actively in 1995 to boost
economic growth to grow competitiveness, income distribution, and employment generation
(Mmbengeni, Mavhungu and John, 2021). Thus, the rise of SMMEs has been simplified in the
country as they have been identified as an effective role player in economical development
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(Barry and Sebone, 2009). Mahembe and Chiumya (2011) outline the importance of SMMEs in
economic development, such as creating employment opportunities, increasing production
volume and export, and improving innovation and entrepreneurial skills. In 2010, about 91% of
the formal businesses were SMMEs contributing approximately 55% to the GDP and providing
employment to about 61% (Abor and Quartey, 2010). These historical statistics also indicate the
importance of SMMEs in the country’s economic development, forcing the government to
identify it as a significant sector (Mahembe and Chiumya, 2011).
However, despite the importance of the SMMEs sector in driving economic growth and social
contribution, the sector primarily faces several challenges, such as funding and poor
management skills leading to poor training and education. Thus, the SMME sector also faces a
high result of failure, and the country has one of the lowest rates of SMME survival in the world
(Samuel, Paul and Naasegnibe, 2014). This argument is backed by the reduced number of
SMMEs in South Africa in Q3 of 2021, discussed earlier. Another challenge SMMEs faces is the
financial crisis which is significantly impacting the firms as it reduces the capability of SMMEs to
develop. This situation is leading to a high number of bankruptcies.
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2.7 B2B Online Marketplace
Please add
- Definition of B2B online marketplace
- History of B2B online marketplace to date
- Highlight the importance of B2B online marketplace in the broader
online marketplace space globally and also opportunities for
developing countries and lastly zooming into South Africa.
- Implications for the future of B2B online marketplace in general, for
developing countries and then specifically for South Africa. Eg.
Opportunities for collaboration between government and industry to
develop a government sponsored B2B online marketplace for SMEs as
part of governments drive for ESD programme as a private-public
partnership initiative.
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