Guiding principles on building sustainable SOEs in South Africa

Abstract

This paper examines the performance of SOEs in developing countries in competitive sectors such as aviation, telecommunications and energy to ascertain whether there are any common principles that determine such performance. Through a case study analysis and interviews with executive managers of South Africa’s SOEs, the paper will determine whether the common principles ascertained in the successful performance of the other developing countries’ SOEs can be applied to South Africa and whether any differences in principle exist between South African SOEs and other developing country SOEs. The paper uses the strategic management schools of organisational and institutional theory, agency theory and the resource based view to determine if there are any differences in principle between SOEs in South Africa and other developing countries. The paper also explores whether the environments and contexts of the different SOEs materially impacts their performance and ability to create a competitive advantage over a sustained period. A qualitative approach was used given that this is an explorative study, to provide better insights and in-depth discussion on the relatively new issues that have not been studied in great detail before. The main research findings are that successfully performing SOEs from developing countries exhibit certain common factors that can be applied by SOEs seeking to reform and improve their performance across developing countries. Copyright