IDEAS home Printed from https://ideas.repec.org/a/adi/ijbess/v6y2024i5p146-157.html

3D printing firms in South Africa and their financial management practices How and to what extent does it enhance business performance?

Author

Listed:
  • Edinam Agbemava

    (Department of Business Support Studies, Central University of Technology, Bloemfontein, Free State, South Africa.)

  • Thywill Cephas Dzogbewu

    (Department of Mechanical and Mechatronic Engineering, Central University of Technology, Bloemfontein, Free State, South Africa)

  • Dennis Yao Dzansi

    (Department of Business Support Studies, Central University of Technology, Bloemfontein, Free State, South Africa)

  • Deon Johan de Beer

    (Center for Rapid prototyping and manufacturing, central university of technology Bloemfontein South Africa)

  • Olawale Fatoki

    (Department of Business Management, University of Limpopo, Sovenga, South Africa)

Abstract

As the 3D printing industry continues to gain momentum in South Africa's SME sector, issues about their financing and financial management need to be investigated. This is due to the capital-intensive nature of the business as well as the financing challenges encountered by 3D printing SMMEs. This study aimed to contribute to research on financial management practices and sources of finance as predictors of performance for 3D printing small and medium enterprises (SMMEs) in terms of profitability and increase in client base. The study adopted the interpretivist research paradigm, exploratory research design, inductive research approach and qualitative research method to achieve the objectives of the study. A total of twenty (20) 3D printing firms participated in the study. Employees and managers were purposefully selected to participate in the study. The participants comprised finance managers, senior managers and managers of the twenty (20) 3D printing firms that participated in the study. Structured interviews served as the instrument for data collection based on the objectives of the study. Data gathered from interviews were transcribed and analysed using thematic analysis. The study revealed that effective working capital management practices boost the profitability of 3D printing SMMEs, particularly through adopting no-credit policies and hiring competent finance officers. These practices also help expand the client base by ensuring timely delivery of products and services, with customer relationship management being a strategic approach. The study also revealed that liquidity management practices significantly boost the profitability of 3D printing firms by ensuring sufficient cash flow to meet financial obligations, managing financial risks, and ensuring timely product delivery, thereby enhancing customer satisfaction and contributing to growth in the customer base. The study recommends the need for 3D printing SMMEs to prioritise cash flow management and develop robust systems to monitor and control working capital components, including inventory, receivables, and payables.

Suggested Citation

  • Edinam Agbemava & Thywill Cephas Dzogbewu & Dennis Yao Dzansi & Deon Johan de Beer & Olawale Fatoki, 2024. "3D printing firms in South Africa and their financial management practices How and to what extent does it enhance business performance?," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 6(5), pages 146-157, October.
    • Handle: RePEc:adi:ijbess:v:6:y:2024:i:5:p:146-157
    DOI: 10.36096/ijbes.v6i5.559
    as

    Download full text from publisher

    File URL: https://www.bussecon.com/ojs/index.php/ijbes/article/view/559/351
    Download Restriction: no
    File URL: https://doi.org/10.36096/ijbes.v6i5.559
    Download Restriction: no
    File URL: https://libkey.io/10.36096/ijbes.v6i5.559?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Attaran, Mohsen, 2017. "The rise of 3-D printing: The advantages of additive manufacturing over traditional manufacturing," Business Horizons, Elsevier, vol. 60(5), pages 677-688.
    2. Kufre J. Bassey & Michael K. Mba & Ochoche Abraham, 2019. "On Economic Growth - Reserve Accumulation Nexus In Nigeria: A Nonlinear Asymmetric Cointegration Estimation," West African Journal of Monetary and Economic Integration, West African Monetary Institute, vol. 19(1), pages 27-39, June.
    3. Evan Dudley & Niclas Andrén & Håkan Jankensgård, 2022. "How do firms hedge in financial distress?," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 42(7), pages 1324-1351, July.
    4. Arbabian, Mohammad E. & Wagner, Michael R., 2020. "The impact of 3D printing on manufacturer–retailer supply chains," European Journal of Operational Research, Elsevier, vol. 285(2), pages 538-552.
    5. Ansari, Muhammad Akbar Ali & Muhammad Sajid & Khan, Ali Junaid & Tanveer Ahmed, 2021. "Factors of Customer Satisfaction in Service Sector: Does Quality of Service Matter?," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(4), pages 897-911, December.
    6. Laure Ambroise & Isabelle Prim-Allaz & Christine Teyssier, 2018. "Financial performance of servitized manufacturing firms: A configuration issue between servitization strategies and customer-oriented organizational design. 71, 54-68," Post-Print hal-02127657, HAL.
    7. Charles Ezeagba, 2017. "Financial Reporting in Small and Medium Enterprises (SMEs) in Nigeria. Challenges and Options," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 1-10, January.
    8. Meesala, Appalayya & Paul, Justin, 2018. "Service quality, consumer satisfaction and loyalty in hospitals: Thinking for the future," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 261-269.
    9. Crovini, Chiara & Ossola, Giovanni & Britzelmaier, Bernd, 2021. "How to reconsider risk management in SMEs? An Advanced, Reasoned and Organised Literature Review," European Management Journal, Elsevier, vol. 39(1), pages 118-134.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sun, Mingyao & Ng, Chi To & Yang, Liu & Zhang, Tianhua, 2024. "Optimal after-sales service offering strategy: Additive manufacturing, traditional manufacturing, or hybrid?," International Journal of Production Economics, Elsevier, vol. 268(C).
    2. Sandu Siyoto & Albert Ronald Tule, 2019. "Treatment Interest of Badan Penyelenggara Jaminan Sosial (Social Security Organizing Agency) Patients in Balowerti Public Health Center Kediri City," Global Journal of Health Science, Canadian Center of Science and Education, vol. 11(11), pages 149-149, October.
    3. Yi Mei & Xiaoyan Xu & Xiaodong Li, 2020. "Encouraging Patient Engagement Behaviors from the Perspective of Functional Quality," IJERPH, MDPI, vol. 17(22), pages 1-15, November.
    4. Fatemeh Akhyani & Alireza Komeili Birjandi & Reza Sheikh & Shib Sankar Sana, 2022. "New approach based on proximity/remoteness measurement for customer classification," Electronic Commerce Research, Springer, vol. 22(2), pages 267-298, June.
    5. Sara Javed & Md. Salamun Rashidin & Mingxia Zhu & Zhexiao Xu & Wang Jian & Siming Zuo, 2021. "Combined Effects of Drivers and Impact of Customer Satisfaction on Brand Loyalty: The Contingent Effect of Social Trust," SAGE Open, , vol. 11(1), pages 21582440211, March.
    6. Ayman Altuwaim & Abdulelah AlTasan & Abdulmohsen Almohsen, 2023. "Success Criteria for Applying Construction Technologies in Residential Projects," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    7. Bade, Alexander & Lasch, Rainer & Schneider, Nick, 2025. "Additive manufacturing scenario for automotive spare parts supply: A case study approach," International Journal of Production Economics, Elsevier, vol. 282(C).
    8. Adjeng Mariana Febrianti & Ruth Margaret Violenta Sihombing & Salsabila Jannatain Catur Soetjipto, 2022. "Determinant of customer satisfaction and loyalty in using online shopping applications," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 119-126, March.
    9. Lee, Min-Jae & Kim, Yanghee & Roh, Taewoo, 2024. "Exploring the role of digital servitization for green innovation: Absorptive capacity, transformative capacity, and environmental strategy," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    10. Wenxin & W. & Bentum-Micah & G. & Zhiqiang & M. & Bing & L. & Asabea Addo & A. & Boadi & B.E. & Atuahene & A.S. & Bondzie-Micah & V., 2020. "The Influence of Encounter Service Quality on Patient Satisfaction: An Empirical Study in Chinese Public Hospitals," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 466-482.
    11. Luis Ricardo Solís‐Rivera & Marcelo Royo‐Vela, 2026. "Creating Shared Value as an Antecedent of Value Co‐Creation: B2B Relationships in the Agri‐Food Sector," Agribusiness, John Wiley & Sons, Ltd., vol. 42(2), pages 815-830, April.
    12. Qian Zhao & Zhengkai Wang & Kaiming Zheng, 2024. "Order or Collaborate? Manufacturers Utilize 3D-Printed Parts to Sustainably Facilitate Increased Product Variety," Sustainability, MDPI, vol. 16(13), pages 1-23, June.
    13. Florinda Matos & Radu Godina & Celeste Jacinto & Helena Carvalho & Inês Ribeiro & Paulo Peças, 2019. "Additive Manufacturing: Exploring the Social Changes and Impacts," Sustainability, MDPI, vol. 11(14), pages 1-18, July.
    14. Koustubh Kanti Ray, 2024. "Customer Perception Towards Pradhan Mantri Jan-Dhan Yojana (PMJDY): An Empirical Investigation from Slum-dwellers Perspective," Millennial Asia, , vol. 15(3), pages 487-514, September.
    15. Nie, Jiajia & Xu, Xiaoxuan & Yue, Xiaohang & Guo, Qiang & Zhou, Yu, 2023. "Less is more: A strategic analysis of 3D printing with limited capacity," International Journal of Production Economics, Elsevier, vol. 258(C).
    16. Niclas Hoffmann & Robert Stahlbock & Stefan Voß, 2020. "A decision model on the repair and maintenance of shipping containers," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-21, December.
    17. Wenxin & W. & Bentum-Micah & G. & Zhiqiang & M. & Bing & L. & Asabea Addo & A. & Boadi & B.E. & Atuahene & A.S. & Bondzie-Micah & V., 2020. "The Influence of Encounter Service Quality on Patient Satisfaction: An Empirical Study in Chinese Public Hospitals," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 461-477.
    18. Audrezet, Alice & Parguel, Béatrice, 2018. "Using the Evaluative Space Grid to better capture manifest ambivalence in customer satisfaction surveys," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 285-295.
    19. Muhammad Asif & Arif Jameel & Noman Sahito & Jinsoo Hwang & Abid Hussain & Faiza Manzoor, 2019. "Can Leadership Enhance Patient Satisfaction? Assessing the Role of Administrative and Medical Quality," IJERPH, MDPI, vol. 16(17), pages 1-14, September.
    20. Konstantinos Kalkanis & Kyriaki Kiskira & Panagiotis Papageorgas & Stavros D. Kaminaris & Dimitrios Piromalis & George Banis & Dimitrios Mpelesis & Athanasios Batagiannis, 2023. "Advanced Manufacturing Design of an Emergency Mechanical Ventilator via 3D Printing—Effective Crisis Response," Sustainability, MDPI, vol. 15(4), pages 1-13, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adi:ijbess:v:6:y:2024:i:5:p:146-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ibihutr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.