The objective of the three essays of this doctoral dissertation is to investigate the strategic choices of organizational forms by competing firms in various environments. The first essay, which is a joint work with Professor Guofu Tan, provides an alternative theory of divestitures that relies on product-line complementarities and product market competition. We consider a simple environment in which there axe two firms, each supplying a group of complementary products and the products across groups axe imperfect substitutes. We model the firms' choices of divesting and pricing as a two-stage game. The duopohsts simultaneously choose their divestiture strategies in the first stage of the game and the independent divisions compete by setting prices in the second. It is shown that, when competing with each other, firms with complementary product-lines have incentives to split into multiple independent divisions supplying complementary products and services. Such divestitures increase prices and the parent firms' values but reduce aggregate social welfare. Moreover, the degree of divestiture, as we illustrate in the linear demand case, depends on the severity of competition and the nature of product-lines. Then, intensified competition due to deregulation, trade liberalization and entry may trigger divestitures. We further show that if two firms axe able to coordinate their divestiture strategies, they can achieve the joint monopoly prices and profits in a non-cooperative price game. The second essay analyzes the strategic incentive of oligopolists to create autonomous rival divisions when products are differentiated. We consider a two stage game where firms choose the number of autonomous divisions in the first stage and all the divisions engage in Cournot competition in the second. It is shown that product differentiation ensures the existence of an interior subgame perfect Nash equiubrium, and the equilibrium number of divisions increases with the degree of substitution among products and the number of firms. Further, if divisions are allowed to further divide, they always will, which leads to total rent dissipation. Thus, parent firms have incentives to unilaterally restrict their divisions from further dividing. In the free entry equihbrium, it is found that the possibility of setting up autonomous divisions is a natural barrier to entry. Incumbents may persistently earn abnormally high profits. In the cases where product differentiation is difficult, the only pure strategy free entry equilibrium is the monopoly outcome even if the entry cost is relatively low. The third essay develops a game theoretic model to analyze strategic leasing behaviors of landowners in a nonexclusively owned common oil pool. The oil field development is modeled as two more-or-less independent one-stage noncooperative game. The landowners choose leasing strategies in the first stage, and independent lease operators choose extraction strategies in the second. It is found that, in a nonexclusively owned oil field, it is individually rational for a landowner to unilaterally subdivide his landholding and delegate production rights to multiple independent firms, even though more dispersed production control leads to heavier common pool losses. Moreover, the degree of landownership concentration determines the degree of production concentration. The more fragmented the land ownership, the lower is the degree of production concentration i n equilibrium. The analysis offers an explanation for the puzzling landowners' leasing behaviors in U . S . onshore oil fields. / Arts, Faculty of / Vancouver School of Economics / Graduate

D.Phil. / The progress of the South African economy relies heavily upon earnings from physical exports, which depend increasingly upon the competitiveness in global markets of the maritime supply chains that serve the country. Competition in world markets is becoming increasingly stronger as production resources are obtained globally and subsequently the competition exists between the effectiveness of whole supply chains rather than only production costs. South Africa therefore has great interest in ensuring that its maritime supply chains compare with world best practice. Amongst other things, this world best practice requires those chains to function as entities structured to serve their logistical purpose, i.e. that it should not include links consisting of separate transport businesses. In practice, this requires that links traditionally provided by third parties be structurally integrated as cost centres instead of profits centres in the chains. Such integrated maritime supply chains will inevitably only be developed by the intervention of chain leaders. South Africa’s major supply chains conveying commodities and manufactured products are examined in order to determine the scope for the integration of their links as a means of raising their efficiency as ‘complete chains’. Features of selected maritime supply chains serving other countries that could serve as models for the structuring of South Africa’s are identified. Transnet’s role in the existing maritime supply chains in accordance with the policy of the Government is examined and attention is focused on the under-investment in recent years that has led to the deterioration in the company’s performance. The rejection by the Government of the privatisation of the core assets of the railways and ports in favour of public-private partnerships, as a means of overcoming the problems, is considered in order to conclude whether a solution will be forthcoming in that manner. Special consideration is given to Transnet’s proposed spending of R40bn on infrastructure projects and attention is focused on the fact that this will not address all the problems. The marine links in South Africa’s maritime supply chains are currently provided by foreigners. Virtually all South Africa’s bulk exports are sold free-on-board, which concedes control over the shipping of the cargo to foreign importers. Reasons for such arrangements are complex and chartering by South African exporters in order to maintain control is often not feasible, although it is done in the fruit trade and by Australian exporters of iron ore competing with South African exporters. Ship owning by South Africans will facilitate new legislation to increase the market share of citizens in the country’s exports and imports, but price-wise market entry will be difficult and it is debatable whether exporters will make use of their services. In the liner trades, the trend is for shipping companies to integrate port and overland links into their services, and the efficiency of South Africa’s container supply chains will need to be raised in that manner. The criteria for determining maritime supply chain efficiency and the integration of the links of particular South African chains based on their cost structures, as well as the leadership needed to pursue such development, are motivated. Proposals are also made for the integration of the links of the iron ore and coal supply chains under the leadership of public-private partnerships, as well as for a container supply chain incorporating both a dedicated terminal in the Port of Ngqura and the railway between Coega and Gauteng, under the leadership of a liner shipping company or consortium of companies. The conclusion is reached that the present role of Transnet in accordance with the declared policy of the Government is not conducive to improving maritime supply chain efficiency through the structural integration of the links. It is also concluded that the efficiency of the chains could be raised through private leadership with public participation, subject to a change in the Government’s policy towards the role of Transnet in order to allow such leadership. / Prof. J. Walters Prof. G.C. Prinsloo

Outsourcing in the cold supply chain can assist the fresh fruit industry to attain competitive advantage through its role in cost reductions and customer service enhancement. The South African fruit industry depends mainly on export markets to earn revenue. It should thus be reckon that the South African fresh fruit travel long distances to reach these markets as South Africa is remotely situated from its major markets. However, the products have to be in good quality on arrival, and also be on time. The challenge therefore is for the fresh fruit industry to ensure that the cold supply chain is maintained through to international destinations. The primary objective of the dissertation is to perform an analysis of the cold supply chain of the South African avocado for export – ‘charter the movement of the South African avocado from production areas to international markets, paying special attention to the outsourcing possibilities in the cold supply chain’. In order to fulfill this purpose, the study covers the following main aspects: • Developments in the fruit industry focusing specifically on the avocado fresh fruit industry. • Detailed analysis of the cold supply chain and costs associated with operating and managing the chain. • Outsourcing as a strategy for achieving the cold supply chain competitive advantage: assisting the avocado industry to compete effectively with other supplying countries. The dissertation has outlined a number of strategies relevant to deal with the challenges of cold supply chain, such strategies concern themselves with delivering the right product at the right time to the right customer at the right condition and at the right price. It is evident from the discussions in the study that the South African avocado supply chain is long, complex and involves interaction of various processes and role-players. The post-harvest cold supply chain processes involves temperature controlled storage and transportation. Every link in the supply chain must be analysed to identify weaknesses, as there should be no breakage in the chain so that quality of fruit is not compromised and profitability is achieved. Currently storage and transportation are outsourced to a number of service providers. As far as the chain is concerned there are minimal problems regarding temperature management in the chain. Few avocado fruits have in the past failed PPECB quality tests for export. The main challenge (amongst others) that the avocado chain is facing is effective information sharing to ensure a coordinated and well-aligned supply chain that will play a role in reducing costs and enhancing customer service. Lack of, for example accurate crop harvest estimate information and real-time communication and information sharing creates problems for the supply chain to function as a single entity with shared objectives. Based on the above, a number of conclusions about, and recommendations for, outsourcing in the cold supply chain of South African avocado for export are made, a summary of which is provided by the following statements: • A reliable relationship is important for both producers and service providers • Joint responsibility: farmers should play their part in the cold supply chain management • Ensuring cold supply chain best practices • Creation of supply chain vision • Ensuring of supply chain visibility • Adoption of total cost approach • Integrating and coordinating the supply chain Charting the movement of the South African avocados from production areas to international markets requires that short, medium and long-term decisions about outsourcing be thoroughly made. / Prof. J.H. Du Plessis

Please read the abstract in the section, 00front of this document / Thesis (PhD (Agricultural Economics))--University of Pretoria, 2008. / Agricultural Economics, Extension and Rural Development / PhD / unrestricted

Considering the prominence of green supply chain management (GrSCM) research has developed expressively in this field. However, there is a dearth of studies from emerging economies comprised of modelling and empirical testing of hypotheses. Moreover, the literature is lacking the empirical evidence on the determinants of GrSCM practices by small and medium enterprises (SMEs) especially in the case of Pakistan. The literature has yet to determine what green practices are being adopted by SMEs in Pakistan, an elucidation why GrSCM practices are adhered, what construct is appropriate to evaluate adoption of GrSCM practices by SMEs in Pakistan, and whether mediation of internal factors exits between the relationship of GrSCM practices and external pressure. This dissertation uses Structural Equation Modelling (SEM) to investigate GrSCM practices adoption, the appropriate construct for evaluating green practices, and examining three potentially important determinants in Pakistani SMEs. With the data collected in two stages from the SMEs sector of Pakistan, exploratory factor analysis (EFA) revealed a three-dimension structure for measuring the GrSCM practices. Subsequently, the confirmatory factor analysis (CFA) was carried out on two measurement models (i.e. first and second order) of GrSCM adoption based on EFA. The empirically outcomes advocates that both models for GrSCM adoption are valid and reliable, however the second order model has better fit indices. The SEM testing shows significant results for mediation of internal factors in the hypothesized relationship among the GrSCM practices and external pressures. For academicians and supply chain mangers these results yield several exciting theoretical and practical implications.

Multi-player interactions and vertical relationships in the U.S. containerized-import shipment market are investigated using game theory approaches. Bi-level programming problems (BLPP) are built to capture the hierarchy structure of the container shipping industry, whereas the ocean carriers (OC) are considered as the market leader. For a case study with five players from several levels of the shipment chain, 16 BLPPs are built to analyze the 32 coalition possibilities. Two routes are compared: The West Coast route (WCR) includes one terminal (P1) and one railroad (R); the East Coast route (ECR) includes a second terminal (P2) and the Panama Canal (PC). The impact of Panama Canal expansion is investigated by comparing scenarios with different assumptions of vessel size. Capacity constraints at port terminals are also analyzed by assuming different capacity levels. The grand coalition of the five players is found to be very unstable because of the unavoidable competition within the coalition; hence, following games are further created, supposing the grand coalition could not form. Model results indicate the OC prefers to form an East Coast Coalition (ECC) with East Coast players if the grand coalition could not form. Sensitivity analyses on some parameter values for the grand coalition and for the ECC bring some interesting findings. With higher cargo values, the WCR becomes more appealing because of its quicker delivery time and lower inventory costs compared with the ECR. The Panama Canal expansion will improve market power and profit shares for the East Coast players if the canal operator could increase its competitive price more than the increase of costs. Generally, a player will gain more market power if its cost could be reduced. A player's upper bound rate is a reflection of its relative market power. But in a complicated market characterized with various cooperation-competition strategies and an ambiguous definition of partners and competitors, the impact of a player's upper bound rate on the market power structure could not be easily explained. For future research, the challenge mainly lies on the large number of BLPPs that need to be constructed and solved in order to study more players.

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Under the unifying theme of supply chain learning, this three essay dissertation extends scholarship by investigating these multi-tier relationships. Theory is emerged, grounded in data, gathered from functioning supply chains in an effort to provide scholars and practitioners with an increased understanding of the SCL phenomena. Essay 1, entitled "Supply Chain Learning: An Exploratory Literature Review" examines the current literature in an attempt to address the shortcomings and emerge areas that have been less explored and less understood. By exposing these areas of research opportunities using a grounded theory methodology, a framework was emerged allowing identification of the limitations of extant literature and providing a springboard for future research. This framework also allowed further investigation into the SCL processes and expansion of the current understanding by providing academia with a comprehensive review of the literature and revealing the shortcomings that exist related to SCL. Using the framework emerged in Essay 1, Essay 2 entitled "Toward Supply Chain Learning: A Focus on the Customers of Logistics Service Providers" explores the rationalization and cognitive processes of senior level executives of firms utilizing national or global supply chains. These respondents are directly engaged in creating, establishing and operating relationships with third party logistics (3PL) providers within a functioning supply chain. By examining the relationships and processes from the point of view of customers of third party logistics providers, a unique perspective provides insight into these relationships. Using semi-structured interviews with these executives, grounded theory was once again used to emerge theory explaining the phenomena of SCL. In particular, this research examines the elements studied from the perspective of customers of third party logistics providers as they seek to develop new processes and solutions in hopes of obtaining a competitive advantage by adaptive learning with the help of their providers and trading partners. In addition, this research increases our understanding of SCL by examining a relationship between customers and 3PL providers, their experiences and outcomes. Essay 3, entitled "Practical Application of Supply Chain Learning" focuses on the implications of the learning relationship and its impact on the practitioner. By providing the findings of the research in a context relatable to practitioners, this culmination of findings allows practitioners to relate the findings directly to their existing supply chains. Realizing that many supply chains are relationship driven, this research focuses on the findings of previous research to provide a more holistic view of the learning relationship process as it exists in multiple tiers of their existing supply chain. Providing a step-by-step explanation of the SCL process as emerged from previous research, executives are provided a tool to better identify, analyze and understand these processes as relatable in their existing environment. As a methodical analysis of the IOL process, these essays provide the foundation for understanding the relationship process that exists between learning partners in a supply chain. Essay 1 provides basis for theory development by examining current literature and exposing the shortcomings while also emerging a preliminary framework on which to build future research. Essay 2 follows up on these deficiencies and attempts to saturate understanding of the IOL process, particularly from the point of view of 3PL customers in an existing supply chain. Essay 3 delivers these findings to executives in a relatable format, providing a holistic understanding of the phenomena. In summation, this dissertation provides theory emerged from data, explaining the learning relationship from the point of view of the customers of 3PL services, the cognitive dimensions and outcomes of these decisions as they relate to learning in the supply chain.

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