Exploring the state of the trust deficit in SMME-corporate relationships in the context of supplier development programmes

Abstract

Small, medium and microenterprises (SMMEs) are the backbone of many economies globally, as their roles are vital in driving economic growth and creating employment opportunities (Myres et al., 2022). In South Africa, the SMME sector significantly contributes to the country's gross domestic product (GDP) (Aparicio, Turro & Noguera, 2020); however, South African SMMEs face significant challenges that hinder their growth and sustainability. One of the ways in which SMMEs can overcome these challenges is through supplier development programmes (SDPs) offered by corporate entities. SDPs have become increasingly popular in recent years and have been hailed as an effective way to promote economic growth and support SMMEs (Van der Veen, 2018). However, the effectiveness of these programmes seems to be hindered by a trust deficit between SMMEs and corporate entities. Understanding the factors contributing to the trust deficit between these entities is essential to finding ways to regain corporate trust and reduce unemployment. However, literature on the influence of trust on SMMEs, with supplier development as mediator, is lacking. This research project aims to fill the gap in literature. The research adopted an interpretivist, exploratory qualitative research approach, utilising semistructured interviews with nine cross-functional team members selected from three randomly chosen projects and two SMME companies from the Impala Platinum database. A narrative strategy was employed, focusing on project managers and leaders within the mining company and SMMEs, using a mono-method design for data collection. Thematic analysis was applied to extract meaningful patterns and themes from the qualitative data. In essence, the study's practical relevance lies in providing actionable insights for corporations and SMMEs to navigate the complexities of SDPs effectively. By implementing the identified strategies, businesses will not only enhance trust but also foster an environment conducive to sustainable, mutually beneficial relationships in the corporate mining industry.