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Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

This publication represents the Proceedings of the 34th Annual Pan-Pacific Conference being held in Lima, Peru May 29-31, 2017. The Pan-Pacific Conference has served as an important forum for the exchange of ideas and information for promoting understanding and cooperation among the peoples of the world since 1984. Last year, we had a memorable conference in Miri, Malaysia, in cooperation with Curtin University Sarawak, under the theme of “Building a Smart Society through Innovation and Co-creation.” Professor Pauline Ho served as Chair of the Local Organizing Committee, with strong leadership support of Pro Vice-Chancellor Professor Jim Mienczakowski and Dean Jonathan Winterton.

This publication represents the Proceedings of the 34th Annual Pan-Pacific Conference being held in Lima, Peru May 29-31, 2017. The Pan-Pacific Conference has served as an important forum for the exchange of ideas and information for promoting understanding and cooperation among the peoples of the world since 1984. Last year, we had a memorable conference in Miri, Malaysia, in cooperation with Curtin University Sarawak, under the theme of “Building a Smart Society through Innovation and Co-creation.” Professor Pauline Ho served as Chair of the Local Organizing Committee, with strong leadership support of Pro Vice-Chancellor Professor Jim Mienczakowski and Dean Jonathan Winterton.

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Invest<strong>in</strong>g <strong>in</strong> new technologies<br />

Some respondents associated their role towards<br />

contribut<strong>in</strong>g to susta<strong>in</strong>ability as supply<strong>in</strong>g the m<strong>in</strong>es<br />

with the k<strong>in</strong>d of the technology that future generation<br />

will utilise <strong>in</strong> place of those resources. The<br />

respondents further advised that susta<strong>in</strong>ability of the<br />

South African <strong>in</strong>dustry is very important and<br />

obviously the technology be<strong>in</strong>g developed will assist<br />

the susta<strong>in</strong><strong>in</strong>g the <strong>in</strong>dustry worldwide. From the<br />

suppliers’ perspective susta<strong>in</strong>ability is about f<strong>in</strong>d<strong>in</strong>g a<br />

balance between what you can achieve between a<br />

reasonable times and what can you foresee because<br />

you have to exploit the opportunity.Suppliers seem to<br />

be ma<strong>in</strong>ly focused on the new technology that will<br />

enable the companies to competitive and susta<strong>in</strong>able<br />

for future generation. The respondents have advised<br />

that the <strong>in</strong>dustry have reached a global situation<br />

where the market is very depressed which impacts the<br />

company <strong>in</strong> a negative manner. Therefore the<br />

companies needs to develop technology which will<br />

enable the company to be susta<strong>in</strong>able to provide the<br />

clients with someth<strong>in</strong>g different <strong>in</strong> order to be<br />

competitive and for the company to grow.<br />

Strengthen<strong>in</strong>g collaboration with m<strong>in</strong>es<br />

The respondents observed with<strong>in</strong> the <strong>in</strong>dustry that is<br />

<strong>in</strong> distress the notion of susta<strong>in</strong>ability will only<br />

favour big companies that have the capital compete<br />

on a global scale. Some respondents noted that<br />

build<strong>in</strong>g strong relationship with clients by ensur<strong>in</strong>g<br />

that suppliers cater for their bus<strong>in</strong>ess requirements<br />

and needs and also follow the specification as<br />

required is vital. Yet many of them acknowledged<br />

that they don’t quite <strong>in</strong>volve clients (m<strong>in</strong><strong>in</strong>g<br />

companies) <strong>in</strong> susta<strong>in</strong>ability practices but they<br />

provide the clients with quality service and products<br />

that can lower the cost of operations.<br />

A search for alternative sources of energy<br />

The respondents articulated that as the consequence<br />

of the current situation of electricity supply they felt<br />

the need to save the energy and to search for<br />

alternative sources of energy and/or power. The<br />

respondents understand that s<strong>in</strong>ce the biggest<br />

producer of m<strong>in</strong>erals around the world it is very<br />

crucial to susta<strong>in</strong> the South African m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry.<br />

The respondents admitted that the issue of the<br />

uncerta<strong>in</strong>ty of electricity supply and labour unrest<br />

rema<strong>in</strong> some of their major concerns and threats to<br />

the susta<strong>in</strong>ability of the <strong>in</strong>dustry. Some respondents<br />

<strong>in</strong>dicated that they are <strong>in</strong> the process of develop<strong>in</strong>g<br />

the technology that will reduce the cost of power<br />

dur<strong>in</strong>g the operation and m<strong>in</strong>eral process<strong>in</strong>g. The<br />

respondents furthermore articulated the fact that they<br />

work with many companies from local districts <strong>in</strong> an<br />

attempt to reduce the cost of power. Respondents<br />

expressed their commitment towards develop<strong>in</strong>g<br />

technology that is environmental friendly and energy<br />

sav<strong>in</strong>g.<br />

Pressure to assist the m<strong>in</strong>es to comply with<br />

environmental regulations<br />

The respondents acknowledged that the clients<br />

(m<strong>in</strong>es) are <strong>in</strong> most cases the ma<strong>in</strong> drivers of<br />

environmental susta<strong>in</strong>ability because of the<br />

regulations that comes with the licenses to m<strong>in</strong>e. The<br />

suppliers offer the clients with solutions which can<br />

benefit the clients with<strong>in</strong> the context of a specific<br />

regulation so that the respondents (suppliers) can<br />

assist the clients to comply with environmental<br />

regulations. Respondents acknowledged that failure<br />

for them (as suppliers) to comply may easily result <strong>in</strong><br />

the client to switch to a more compliant supplier.<br />

However, respondents also noted that the key<br />

responsibility for compliance lies with the client,<br />

otherwise as suppliers they will not be <strong>in</strong> a position to<br />

force clients to follow the regulations. Respondents<br />

acknowledged that that the best they can do is to<br />

develop and supply the technology that will help<br />

m<strong>in</strong>es m<strong>in</strong>imise waste, produce quality products,<br />

deliver quality services and reduce energy<br />

consumption. Respondents have also admitted that <strong>in</strong><br />

some cases they have taken it upon themselves to<br />

educate clients about the need to become susta<strong>in</strong>able<br />

s<strong>in</strong>ce failure by the client to comply might well put<br />

suppliers out of the market.<br />

The respondents also stated that the pressure that they<br />

receive from their clients is pushed up to their<br />

suppliers to ensure compliance across the board. Thus<br />

how they ensure that is through ensur<strong>in</strong>g that the<br />

company practices or follow specific rules mean<strong>in</strong>g<br />

that they follow the countries rules and regulation.<br />

The supplier are pressured to offer high quality<br />

products and services. The respondents also do deep<br />

research on the supplier to see if it’s a supplier worth<br />

work<strong>in</strong>g with. Furthermore the contract stipulates all<br />

the necessary requirements of projects together with<br />

the regulation to make for easy control. The<br />

respondents also believes <strong>in</strong> address<strong>in</strong>g issues if the<br />

company is not happy with the supplier <strong>in</strong> offer<strong>in</strong>g<br />

them products that are not up to standard.<br />

Institutionalis<strong>in</strong>g the culture of susta<strong>in</strong>ability<br />

Some respondents <strong>in</strong>dicated that they want to make<br />

the matter of susta<strong>in</strong>ability part of their culture and<br />

have begun educat<strong>in</strong>g/tra<strong>in</strong><strong>in</strong>g/guid<strong>in</strong>g/ their<br />

employees about the value of susta<strong>in</strong>ability. They<br />

show employees how susta<strong>in</strong>ability is embedded <strong>in</strong><br />

all the phases of the company production from the<br />

design to the fabrication to the quality <strong>in</strong>spection if<br />

someth<strong>in</strong>g is not up the standard they do not send it to<br />

site. One respondent <strong>in</strong>dicated that they go to the<br />

extent of show<strong>in</strong>g the employees how the company is<br />

w<strong>in</strong>n<strong>in</strong>g clients, choose projects and also<br />

communicate the changes <strong>in</strong> the market. Generally, <strong>in</strong><br />

terms of technology, the respondents articulated the<br />

need to emphasize the important th<strong>in</strong>gs to employees.<br />

Respondents further stress to employees that if new<br />

technology is not developed or sold frequently the<br />

<strong>in</strong>dustry will be obsolete and so will the company.<br />

DISCUSSION AND RECOMMENDATIONS<br />

The aim of the study was to explore the role that<br />

suppliers play <strong>in</strong> promot<strong>in</strong>g susta<strong>in</strong>ability <strong>in</strong> supply<br />

cha<strong>in</strong>s. The paper has shown how, as an <strong>in</strong>tegral part<br />

of supply cha<strong>in</strong>s, suppliers can contribute towards<br />

susta<strong>in</strong>able supply cha<strong>in</strong>s. Based on the research<br />

f<strong>in</strong>d<strong>in</strong>gs and the literature that was reviewed the<br />

follow<strong>in</strong>g conclusion are drawn. First, the supplier<br />

plays an active role <strong>in</strong> promot<strong>in</strong>g susta<strong>in</strong>ability with<strong>in</strong><br />

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