The Influence of entrepreneurial competence in accessing procurement opportunities : from multinational mining companies by host communities

Abstract

Research Purpose: The aim and purpose of this study was to investigate and explore the extent to which entrepreneurial competence contributes towards accessing procurement opportunities from Multinational Mining Companies by host communities. The researcher adopted a qualitative research methodology by using explanatory and exploratory research approaches to explore how entrepreneurial competence plays an influential role in accessing procurement opportunities from mining companies operating in host communities. The conceptual framework of the study adopted was from the entrepreneurial competence concept, and elements such as opportunity competencies, relationship competencies, conceptual competencies, organisational competencies, strategic competencies and commitment competencies were discussed comprehensively in the literature review. Research design, Methodology and Approach: The researcher used a crosschapteral qualitative research methodology to explore and investigate how entrepreneurial competence plays an influential role in accessing procurement opportunities from Multinational Mining Companies by host communities. Primary research data was collected from semi-structured interviews conducted with six selected Emalahleni entrepreneurs that operate businesses engaging in procurement opportunities from the Multinational Mining Companies in their host communities. Secondly research data was collected from unstructured interviews conducted with two experts from the multinational mining companies. Furthermore, secondary data was accessed from various research platforms that included, scholarly journal articles, mining websites, published articles, government reports and other various research sources of interest. The researcher also applied an explanatory and exploratory study approach in the analysis, results discussions and literature review. Research Findings: Study data and research findings indicated that entrepreneurial competence plays an influential role in favouring host communities entrepreneurs to access procurement opportunities from mining companies. Also, research findings established that entrepreneurs who lacked core entrepreneurial competencies found it extremely hard to access procurement opportunities from the mining companies. Furthermore, entrepreneurial competence elements such as conceptual, strategy, opportunity and relationship competencies were among the highest recommended aspects to accessing more procurement opportunities from the mining companies. Research limitations and study implications: The research findings from the study were limited to only a small study sample taken from six entrepreneurs operating in Emalahleni, hence the views and responses from the respondents are subjected to their circumstances only and can not be used or applied across the whole fraternity of host communities that seek procurement opportunities from Multinational Mining Companies in the country. Two experts were also engaged and their expertise and insights are subject to their experiences . Furthermore, the global and national restrictions caused by Covid made it extremely hard to access a bigger study sample, as many entrepreneurs from the target population could not afford the time to participate in the study. However, the research findings from the study can be used by interested entrepreneurs seeking to access procurement opportunities from mining companies in host communities. Furthermore, the study can be used by future researchers to form a basis for future studies in other host communities. Practical implications from the study: Research findings contribute to a comprehensive understanding of how entrepreneurial competence plays an important role in accessing procurement opportunities. The study data also indicated that entrepreneurs with clear strategic competencies,conceptual competencies, relationship competencies and opportunistic competencies acquire more procurement opportunities from mining companies in comparison to their counterparts.