A Qualitative Study on the Reasons for Weak Coopetitive Relationships Among South African Spaza Shop Owners

Abstract

This study attempts to understand why the South African owners of township spaza shops do not form coopetitive relationships as a means of becoming more competitive. Coopetition (simultaneous cooperation and competition among rival business owners) is a tactic widely used by foreigners who run local spaza shops, and who, it is reported, are more successful than South African owners. The study applies a qualitative, exploratory approach to better understand this issue through interviews with South African spaza owners in Alexandra Township, Johannesburg. Fourteen interviews were conducted using a semi-structured questionnaire, covering the nature of the relationships among South African spaza shop owners, as well as their perceptions of the trade practices of the foreign spaza shop owners. An absence of trust and a lack of awareness of the potential benefits of coopetition are the major barriers to South African spaza owners forming coopetitive relationships. Moreover, the volatile environment in which these spaza shops operate means that a commitment to building ongoing coopetitive relationships is difficult. Any intervention designed to improve the survival rate of South African-owned spaza shops should include measures to build trust, improve communication skills and highlight the benefits of coopetition.