Original Research

How to create Shared Value in mining organisations

Talifhani Khubana, Chantal Rootman, Elroy E. Smith
South African Journal of Business Management | Vol 53, No 1 | a2907 | DOI: https://doi.org/10.4102/sajbm.v53i1.2907 | © 2022 Talifhani Khubana, Chantal Rootman, Elroy E. Smith | This work is licensed under CC Attribution 4.0
Submitted: 09 September 2021 | Published: 25 May 2022

About the author(s)

Talifhani Khubana, Department of Business Management, Faculty of Business and Economic Sciences, Nelson Mandela University, Gqeberha, South Africa
Chantal Rootman, Department of Business Management, Faculty of Business and Economic Sciences, Nelson Mandela University, Gqeberha, South Africa
Elroy E. Smith, Department of Business Management, Faculty of Business and Economic Sciences, Nelson Mandela University, Gqeberha, South Africa


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Abstract

Purpose: The study investigated the perceptions of Shared Value (SV) and its antecedents and outcomes within the mining industry in South Africa.

Design/methodology/approach: After conducting a literature overview of the South African mining industry and theories linked to SV, a hypothesised model of the study was developed. This study used a quantitative research methodology. An explanatory hypothesis-generating approach was employed through an empirical investigation using the survey method. The survey items were self-developed based on hypothesised variables. The study’s respondents were identified via non-probability sampling, namely convenience and snowball sampling. A total of 340 respondents participated in the study.

Results/Findings: The empirical results confirmed that automation and employment conditions are the antecedents of SV in the mining industry. The study illustrated three approaches of SV: reconceiving the products or services and markets, reimagining value chain productivity and development of the enabling environment. Furthermore, the study revealed competitive advantage and sustainability performance as the outcomes of SV in the mining industry in South Africa.

Practical implications: The study contributes by making practical recommendations to the mining industry role players on how to increase SV and improving competitiveness and sustainability performance whilst increasing economic prosperity by resolving social and environmental issues that are of mutual interest to stakeholders.

Originality/value: The study fills a knowledge gap on SV in South Africa because of limited national mining studies. Furthermore, as SV is a novel and significant advancement in management sciences, the study is a valuable resource for SV decision-making across industries.


Keywords

automation and innovation; competitive advantage; employment conditions; sustainability performance; Shared Value

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