Evaluating the Role of ABM in the Financial Performance of SOES in South Africa

Mchavi Nyiko D. () and Ngwakwe Collins C. ()
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Mchavi Nyiko D.: Nyiko D. Mchavi, College of Accounting Sciences, University of South Africa, Pretoria, South Africa.
Ngwakwe Collins C.: Collins C. Ngwakwe, Graduate School of Leadership, University of Limpopo, Polokwane, South Africa.

HOLISTICA – Journal of Business and Public Administration, 2025, vol. 16, issue 1, 36-57

Abstract: This paper examines the impact of Activity-based Management on the financial performance of selected state-owned entities (SOEs) in South Africa. The study was conducted using a mixed-methods approach, which included qualitative and quantitative enquiries. Primary data was gathered from 126 senior managers of the selected SOEs, and secondary data was collected from annual reports spanning a decade (2012-2021). The results of a regression analysis indicated that the implementation of ABM has a beneficial impact on the financial performance of SOEs. Moreover, the correlation between the two is statistically significant, suggesting that organisations using ABM exhibit higher profitability than those that do not use ABM. This study lays the groundwork for further research that will investigate a wider variety of strategic cost management factors and the implications those variables may have on financial performance of SOEs once they have been adopted. This work contributes to the literature on SOE performance by integrating ABM within the South African context, offering valuable insights for both academic inquiry and practical application.

Keywords: ABM; SCM; Financial performance; SOE (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:hjobpa:v:16:y:2025:i:1:p:36-57:n:1003

DOI: 10.2478/hjbpa-2025-0003

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