PPM Papers Coming Soon
This section contains information about articles under review and waiting for publication in next issues of the journal.
Factors influencing debt financing decisions of corporations - theoretical and empirical literature review
Micah Odhiambo, Durban University of Technology, South Africa
Abstract. Over the past half century, there has been an increasing interest on identifying the factors influencing debt financing within corporations. Based on available literature, both from developed and developing economies, this literature review paper examined the factors influencing debt financing decisions within corporations. Applying desktop research methodology, the paper used a three-thronged approach: theoretical, methodology and empirical. The theoretical approach reviewed the key theories proposed with respect to corporations' debt financing decisions. The methodology approach helped in identifying the common applicable conceptual models and the empirical findings related to the factors affecting debt financing of corporations. The factors identified were both firm specific and macroeconomic factors, and the empirical findings showed either positive or negative relationship results.
Resolving the service delivery dilemma in South Africa through a cohesive service delivery theory
Za-Mulamba Paulin Mbecke, University of South Africa, South Africa
Abstract. The main objective of public sector reform to speed-up resource distribution via a service delivery system has failed in South Africa resulting in scores of service delivery protests, some of which are violent. In this article research gaps on service delivery chaos in South Africa are identified. The author of the article acknowledges that different factors contribute to service delivery but such factors are not linked to give a clear understanding of service delivery dilemma. The research then reviews the literature on factors influencing service delivery and proposes a "Cohesive Service Delivery Theory". The theory is developed using the Bayesian Networks system, an artificial intelligence tool that facilitates the definition, quantification and combination of different factors contributing to service delivery. The theory suggests and interprets different scenarios showing how each factor or/and the combination of factors positively or negatively influences service delivery. The author promotes the theory as a tool that assists in maximizing the use of Information Communication Technologies to improve and sustain service delivery in South Africa.
Social support key to cash in transit guards' psychological wellbeing
Paul Poisat, Nelson Mandela Metropolitan University, South Africa
Abstract. Due to large amounts of cash in transit, security vehicles have become preferred targets for armed robberies. Cash-in-transit guards have to work under dangerous and life-threatening conditions, as transporting goods, particularly cash, has become an increasingly risky task in South Africa. The primary objective of this study was to investigate the potential valuable impact of social support on employees' susceptibility to job burnout. Cash-in-transit employees may suffer from burnout due to a prolonged response to occupational stressors and a lack of social support. Social support may serve as a buffer to occupational stress. This study argues that the level of burnout is strongly influenced by a lack of social support and a stressful work environment. A voluntary sample of cash-in-transit security guards (n = 65) was obtained from two private security companies in the Eastern Cape Province of South Africa. A self-administered questionnaire consisting of validated scales was distributed amongst employees. Inferential statistics suggest that social support plays a potentially valuable role in reducing cash-in-transit employees' susceptibility to job burnout. Furthermore, the results suggest that a dangerous, unsafe and stressful work environment may increase the risk of job burnout among cash-in-transit employees, and certain organizational interventions are necessary to minimize the effect thereof.
Corporate social responsibility a toolkit for SMEs efficiency in Tshwane, South Africa
Evelyn Chiloane-Tsoka, University of South Africa, South Africa
Abstract. The code of governance presents some fundamental core philosophy that is of significant milestone providing opportunities in shaping the business landscape in South Africa. Tough penalty clauses for non-compliance are designed to create effective leadership through the establishment of many guidelines in terms of procedures, accounting, sustainability and environmental and social responsibility that successful businesses normally follow. With that in mind this paper aims to look at the challenges faced by business owners operating in Small Medium Enterprises (SMEs) in their daily operations and also to establish whether they are creating a meaningful contribution to Corporate Social Responsibility (CSR) in their business environment. The findings revealed that entrepreneurs in Gauteng operating as SMEs still have a long way to go in learning CSR. Reporting to internal and external stakeholders is still a nightmare if many SMEs on questioning indicated that they were concerned with the burdens of compliance and the cost of compliance. Finally it was observed that they were not much focused on CSR. The study used a quantitative method approach and 200 structured questionnaires were administered purposely and respondents were randomly selected in the three Tshwane Township.
South African consumer ethnocentrism and attitudes towards foreign convenience products
Andrew R. Kamwendo, Durban University of Technology, South Africa
Abstract. The evolution of country-of-origin research has led to the development of the consumer ethnocentrism concept. This study looks into the concept of consumer ethnocentrism (CE) and its relationship with product selection and investigates the relationships between consumer ethnocentrism and South African consumers' attitudes towards foreign convenience products. The aim of the study was to determine the extent to which CE affects consumer behavior among South African consumers. Through the use of the CETSCALE questionnaire, an analysis of the levels of consumer ethnocentrism displayed by consumers of different demographic characteristics was conducted. A research model highlighting the antecedents to consumer ethnocentrism was developed and tested using an Analysis Of Variance (ANOVA) test. The study was in the form of a descriptive survey. 500 questionnaires were distributed, with 476 useable questionnaires being obtained. SPSS 21.0 was used to analyze the data. Non parametric tests were used as the data was not normally distributed using a Kolmogorov Smirnov test. The research hypotheses were tested using a nonparametric Chi square test. The Pearson chi-square test was used to test for the existence of variances within the responses provided by the respondents to individual question. The study reveals that only ethnicity has a significant relationship with CE. Ethnocentric tendencies were strongest among Black South Africans. Theoretical and practical implications of the study are presented with the provision of suggestions regarding future research.
Content analysis of mission statement of mining companies in South Africa
Ajay K Garg, TUT Business School, South Africa
Abstract. This is the first study that analyzed content of mission statements of mining companies in South Africa. Based on the literature, quality of mission statements, inclusion of specific components and other characteristics in mission statements for 58 mining companies listed at the Johannesburg stock exchange were analyzed. The results reveal that quality of mission statements of these companies as compared to the other parts of the world were similar to the extent that that very few companies in the study included all stakeholders in their statements. Majority of mining companies in South Africa do not focus on the key stakeholders in their mission statement as provided in the literature. Mention of the word "stakeholder' was found to be prominent in South African mining companies' statements, while BEE or Black Empowerment was found in only 2 companies statements. The mining companies in South Africa focused mainly on financial objectives and distinctive competencies; their focus was lower on employee and social benefits as compared to European, US and Japanese firms. This has implication for the current mining labor unrest in South Africa and mining companies are likely to see change in focus in their mission statements in the years to come.
Learning, the whole and Theory U: reflections on creating a space for deep learning
Kriben Pillay, University of KwaZulu-Natal, South Africa
Abstract. Drawing on his experience of facilitating a two-day youth leadership development programme in a socially depressed rural district in the Midlands of KwaZulu-Natal, South Africa, the author critically reflects on the processes engaged in and how they align, theoretically and experientially, with the philosophical perspective of nonduality and the social change model, Theory U. This paper, while exploratory in nature, will seek to locate the outcomes of the workshop processes within a paradigm that asserts the primacy of consciousness and Being, drawing on the nondual perspective and Theory U as critical frameworks to validate this position. It is also argued that this work is becoming crucial in social contexts where the current learning paradigms and outdated worldviews are not only failing, but threatening to bring about the rapid collapse of our civil and social institutions. The paper is offered as a discussion document rather than as a traditional scientific study.
The vital role of business processes for a business model: the case of a startup company
Rainer Lueg, Aarhus University, Denmark
Abstract. The present study highlights the importance of alignment between a Business Model (BM) and business processes. We employ a case study method and analyze a young company focused on R&D in high technology. In order to explicate our observations, we invoke the newly developed ‘VIP framework' (Solaimani and Bouwman, 2012). The research reveals that the business processes (BP) carried out in the company must fit the stated Business Model. The case study demonstrates how some of the processes are not optimal and efficient, and that the two main requirements for achieving a higher level coherence and consistency between BM and BP are an enhancement in human resource management and information systems. This research fills a research gap in understanding the connection between BM and BP and contributes to the illumination of their significance. Besides, a newly developed BM/BP alignment framework is empirically applied for the first time.
A longitudinal study of employee satisfaction during the process of transformation in a water utility organization
Ophillia Ledimo, University of South Africa, South Africa
Abstract. Longitudinal studies are valuable to organizations faced with the process of transformation because they provide an opportunity to determine the impact of change interventions in an organization. Changes in employees' behaviour and attitudes can be observed over an extended period of time. The main purpose of this study was to conduct a longitudinal study of employee satisfaction during organizational transformation over a period of three years. The variable employee satisfaction was measured using the employee satisfaction survey (ESS). Descriptive and inferential statistics were conducted to analyse the data collected from the three convenient sample sizes of N = 1 140 (Year 1), N = 920 (Year 2) and N = 759 (Year 3). The results of this study indicated that there are significant positive changes and differences between the three samples regarding the areas of employee dissatisfaction and satisfaction, resulting from the process of organizational transformation. Recommendations are made on how managers can use longitudinal studies to conduct employee satisfaction audits during organizational transformation, in order to determine, monitor and compare the observed changes. As a result, organizations will be able to leverage on their areas of strength and to initiate relevant interventions for their developmental areas.
The impact of market orientation on business performance - the case of Tatarstan knowledge-intensive companies (Russia)
Ekaterina Protcko, Kazan Federal University, Russia
Abstract. The article provides a direct test of the applicability of a western paradigm to Russia - a country with a different cultural and economic system. This article aims to give knowledge-intensive companies in Tatarstan (Russia) a better understanding about influence of their level of market orientation on business performance. This study validated Kohli and Jaworski's market orientation scale in knowledge-intensive industries, particularly in small and medium knowledge-intensive companies in Russia. The ﬁndings show that the market orientation has a positive impact on ﬁnancial and non financial business performance in knowledge-intensive industries. It is important for hi-tech companies to improve their performance by implementing market orientated strategies, putting emphasis in conducting effective market research and be strong in customer and competitor orientation.
Determining high quality SMEs that significantly contribute to SME growth: regional evidence from South Africa
Neneh Brownhilder Ngek, University of the Free State, South Africa
Abstract. It has been widely advocated that SMEs create most of the jobs in an economy. However, studiesfrom both the developed and developing worldhave shown that only a small amount of SMEs create most of the jobs in an economy. These set of SMEs have been termed high quality firms that grow and create the much needed jobs. While studies from the developed world have identified a number of factors that depict the quality of a firm, there is however, little empirical evidence from the developing world on firm quality. This study has as main objective to determine the factors of firm quality that can be used to define a high quality SME in South Africa that contributes significantly to SME growth. The results showed thathuman capital, growth ambition, innovativeness, motivation, and market orientation could be used to define a high quality SME in South Africa that contributes significantly to SME growth (employment growth, sales growth and asset growth).Furthermore, SME quality as defined in this study significantly affects the growth of an SME. These findings are timely, as the South African government currently has a keen interest on using the SME sector to address the high unemployment rate in the country. This study recommends that this can be achieved by developing policies that promote the creation of high quality start-ups and not simply increasing the number of start-ups as prior polices have done.
Employee participation and productivity in a South African university. Implications for human resource management
Emmanuel Tamen Tchapchet, Independent researcher and consultant in the areas of labor relations and data analysis, South Africa
Abstract. Employee participation refers to giving employees and their representatives opportunities to collaborate in matters that pertain to the management of the organization especially where employees are directly concerned. This research therefore examines employee participation within the context of a university of technology in South Africa. Universities of Technology are a new phenomenon in South Africa. As part of the public university system, they are faced with a different set of challenges from the more comprehensive and traditional universities. UoT's offer practice based learning in the areas of business, engineering and technology, thus suggesting that they have a role to play in closing the gap in skills in these areas. This study asked the question: to what extent are employees of the faculty in question integrated into matters that pertain to the management of the faculty? This main research question was designed to interact with the following sub-questions: do you think employee participation improves productivity? Are there platforms for employee participation? Do you think management reasonably considers your input in the faculty? These questions have relevance judging from vast research that indicates a significant reluctance by management to accept employee participation as a necessary practice in organizations. Data was collected using the qualitative approach. The interviews were tape-recorded, while in some cases, notes were taken. The population for this study comprised 12 of the 30 senior lecturers in a faculty at a University of Technology in South Africa. The findings suggest while there is a desire on the part of the academics to be incorporated into matters of concern to them and the faculty, there seemed to be an obvious neglect of the contributions that academic staff make in the faculty.
Improvement of financial tools for expansion of opportunities for innovative activity investment
Andrey Nechaev, Irkutsk State Technical University, Russia
Abstract. On the territory of Russia the securities market carries out a role of the economic regulator and promotes integration of the economy into the world economic system. The main goal of the article is the development of the complex innovative financial tools of the derivatives use for the development of the venture business by means of the participation of the Russian venture funds.
Service branding: the role of innovative brand leadership
Hugo Skaalsvik, Harstad University College, Norway
Abstract. This paper suggests and discusses a set of components which, we argue, will impact innovative brand leadership performance at the level of an individual service enterprise. The research design represents a holistic and systemic perspective to service branding and the methodology employed is conceptual desk research. A systemic model is suggested which depicts five influential components of innovative brand leadership performance. The components are termed as ‘a service centric view', ‘a customer centric view', ‘a service employee centric view', ‘an organizing centric view' and ‘a knowledge centric view'. The paper contributes to existing knowledge of services branding by showing how innovative brand leadership may be obtained at the level of an individual service enterprise.
Industry-wide managerial discretion and executive compensation
Ji-Young Ahn, Ewha Womans University, Korea
Abstract. This study examines executive compensation in light of traditional agency theoretic assumptions, but also integrates institutional and environmental arguments in an attempt to understand why CEO compensation varies across industries. We find that the effect a CEO has on organizational outcomes varies considerably across industries. We also find that some industries have considerable within-industry differences in CEO discretion on organizational outcomes, such as ROA, annual stock returns, and Tobin's Q. In industries where there is a large variance in CEO impact, total CEO compensation tends to be significantly higher. However, we do not find that industry-wide CEO discretion affects contingent pay.
Modeling and measuring milestones in business process optimization
Mantepu T. MaseTshaba, University of Limpopo Medunsa Campus, South Africa
Abstract. The article develops a method to model and also measure the level in which a business has progressed towards business process optimization (BPO). In cases where tougher competition in business leads to opportunity losses, top managements in organizations tend to blame the operations managers for failure to optimize their processes. The extent to which progress towards ideal optimization has been attained is not noted, which is failure to acknowledge the efforts made or even the milestones already reached towards optimal level. In making it easy to measure the extent to ideal state of optimization, BPO is unpacked into its basic units. Then linear programming and probability measures are applied to enable measuring the level at which efforts already completed are away from the ideal state of BPO. The basic units enable a way to identify stages already completed and those that still remain to reach the BPO. This helps to explain to management that while ideal BPO has not been reached, some successes towards BPO have been attained. Such successes are identified by the completed stages, the level of success is also given as a measure, and incomplete parts are also identifiable.
The effects of culture as a start-up factor on business performance
Simon Radipere, University of South Africa, South Africa
Abstract. The study examined relationship between culture and business performance using 500 SMMEs in Gauteng province, South Africa. South Africa's low ranking in terms of global competitiveness is a source of national concern. This means that South Africa has the smallest proportion of entrepreneurs compared with other developing countries. This is a problem in a country where entrepreneurial ventures account for one-third of total employment. There is a need to find out to what extent the entrepreneurial start-up factor (culture) affects the performance of a business. Questionnaire was used to collect data from 500 SMMEs owners. Probability sampling was used to ensure that each member of the SMME population was given a known non-zero chance of selection. Simple random sampling was utilized to identify the respondents. The findings from the survey were modeled through a categorical regression model with business performance as dependent variable. The level of significance of the sixteen variables out of twenty five variables suggests that culture be classified as the strongest predictor of business performance. These findings, depicting the magnitude of the business environment in the study area, clearly confirm the positive impact of culture on business performance.
Establishment of the relationships of management culture and social responsibility: verification of the model
Jolita Vveinhardt, Ph.D., Chief Researcher, Associated Professor, Institute of Sport Science and Innovations, Lithuanian Sports University, Lithuania
Abstract. Work aims to identify the internal relationships of dimensions of management culture and corporate social responsibility. For organizations it is important to evaluate the factors that determine the success of implementation of the principles of corporate social responsibility. The paper aims to extend the sphere of management of implementation of corporate social responsibility, including the quantitative aspects of competencies of managerial staff and organization of the processes. Selected quantitative analysis method, using a questionnaire formulated by the authors of the study. The method of quantitative analysis by interviewing 1717 respondents was selected. The relationships of dimensions of management culture and corporate social responsibility are analyzed in the study, their strength is determined on the basis of evaluations provided by groups of ordinary employees, middle and top management staff. Results of the research show that with the strengthening of the management culture, the culture of social responsibility of the company is increasing. A statistically reliable relationship between all dimensions of management culture and social responsibility was established. The strongest relationships are recorded between the culture of managerial staff, management culture of working conditions, the culture of documentation system and categories of social behavior of the organization.
Salesforce incentive systems - an interdisciplinary review and research agenda
Michael Georgi, TU Dortmund University, Germany
Abstract. Company salesforce compensation plays an essential role in management control systems. Although salesforce incentive systems (SIS) have been discussed in the literature for decades, many unanswered questions remain. In particular, the interdisciplinary character of this topic exacerbates the integration of existing knowledge. To provide a comprehensive overview of the existing literature on SIS, this review considers research published in major journals in the fields of accounting, management, organizational science, marketing, human resources, and psychology. In developing a theoretical framework, we categorize existing knowledge into three main areas, i.e., the determinants, design, and behavioral effects of SIS. We identify environmental uncertainty and customer structure as the most influential company-external determinants, and information asymmetry and individual risk preferences as the most influential internal determinants of SIS. Many controversies remain regarding the design of SIS in terms of the applied performance measures, types of incentives, and the structure of compensation. Various negative behavioral effects aggregated from the literature, like free riding, collusion, and sabotage underline the high relevance of design choices for SIS in companies.
The role of age and business size on small business performance in the South African small enterprise sector
Simon Radipere, University of South Africa, South Africa
Abstract. This study examined the effect; age and business size have on business performance. A structured research instrument was used to collect data from 500 SMEs in retail industry through interviewer administrated and self-administrated survey and 93% of questionnaires were returned. The results show that there is no statistical significant difference between the means of business size and business performance. There is no significant difference between the age categories; under one year and 20 years and more and business performance. Age is no longer a significant factor in a company's performance after twenty years. Life cycle approach of the company or industry could be an appropriate basis for analysis.
The applicability of relationship marketing at non-profit organizations: a developing country perspective
Sameera B. Hussain, Durban University of Technology, South Africa
Abstract. Non-profit organizations are civil society organizations that range from faith and community based organizations, charity (welfare) or traditional organizations, such as social or sports clubs. The main aim of non-profit organizations is to pursue social public welfare activities. Global and regional development has led to an increase in the number of non-profit organizations. Non-profit organizations do not sell any products, but rather their mission, vision as well as programs and services. They ought to therefore ensure active promotion of their services to ensure financial support and to survive in a competitive environment. Promoting themselves effectively as well developing and maintaining relationships with key stakeholders is therefore of utmost importance. A key strategy that could be used to strengthen relationships with key stakeholders is relationship marketing. This study therefore sets out to evaluate the extent to which relationship marketing is practiced within non-profit organizations. This pilot research constitutes a quantitative descriptive study and is part of a broader doctoral study. The results of the study show that there are distinct benefits for non-profits in making use of relationship marketing. It is therefore concluded that non-profit organizations formally adopt relationship marketing as one of their key marketing strategies.
Re-establishing the psychological contract as a precursor to employee retention
Nelesh Dhanpat, University of Johannesburg, South Africa
Abstract. The violation and breach of a psychological contract and trust often results in a decline in employees' willingness to contribute and intentions to stay in an organization. Hence, this paper aims to understand the psychological contract and trust and their role in employee retention. It focuses on employee and organizational expectations and the importance employees attach to these and assesses issues of trust, job satisfaction and intentions to leave. Data was collected using an established questionnaire whose psychometric properties of validity and reliability were assessed using Factor Analysis and Cronbach's Coefficient Alpha respectively. Data was analyzed using descriptive and inferential statistics. The findings reflect that mutual trust and, meeting expectations and having their expectations met by the organization are important to employees. Based on the results on the issues of the psychological contract and trust, recommendations are tabulated, which when implemented, have the potential for enhancing employee retention and reducing intentions to leave the organization.
The impact of management concepts: A typology
Dag Øivind Madsen, Buskerud and Vestfold University College, Norway
Abstract. Over the course of the last decades we have seen the rise and fall of numerous management concepts. Research has shown that some management concepts are short-lived and have limited impact, while others spread widely and have an enduring and longer-lasting impact. What may explain these differences? This paper outlines a typology for assessing the impact of management concept in a given social context. It is argued that the impact of a management concept varies along two dimensions: the degree of institutionalization denotes the impact across time, while the degree of diffusion denotes impact across space.
Communicating the HIV/AIDS message: a rural perspective
Jeevarathnam P. Govender, Durban University of Technology, South Africa
Abstract. South Africa has one of the highest HIV/AIDS infection rates in the world with the majority of infections occurring in the age category 15 to 24. This trend can be reversed if young people are informed and empowered to change their sexual behavior. Furthermore, clear and ongoing communication is an essential tool in addressing this pandemic. This paper aims to assess communication tools used to educate high school learners about HIV/AIDS. The context of the study is the Mthatha district, situated in rural South Africa. The research constituted a quantitative, cross-sectional and descriptive study. The key variables were demographics (gender, age, grade and residence) and perceptions regarding HIV/AIDS communication tools. The research used judge mental sampling to select the high schools and convenience sampling to select individual respondents. The vast majority of learners are aware of HIV/AIDS education. It was found that entertainment-education plays a vital role in creating awareness about HIV/AIDS. The study also found peer education to be an effective communications tool with a view to combating the pandemic. It emerged that the school curriculum was an effective medium in communicating the HIV/AIDS message as the vast majority of learners were knowledgeable about how HIV/AIDS was transmitted. However, in addition to information about HIV/AIDS learners are requesting addition information relating to the developmental challenge of HIV/AIDS on the economy and to unemployment. It is therefore suggested that developmental challenges associated with HIV/AIDS is integrated into the school curriculum. Some policy recommendations are made.
Effect of organizational climate on marketing performance: an analysis of the perception of marketers in the banking sector of North Cyprus
Cemal Çalıcıoğlu, The American University, Cyprus
Abstract. This study sought to verify if the performance of marketers within the banking sector of partially recognized nations followed a similar pattern observable for marketers in banking sectors of widely recognized countries when subjected to certain organizational climatic conditions. A seven point Likert scale questionnaire was administered to a sample of marketers from the banking sector of Northern Cyprus and findings reveal that, while certain organizational climatic conditions triggered low performance levels in widely recognized nations, they had no effect on the performance levels of marketers in partially recognized nations due especially to the fact that such organizational climate is normal in such countries and thus has no power to influence a low performance outcome on the part of marketers.
The mediating effects of role stressors in supervisor-to-subordinate burnout
Cody Logan Chullen, East Carolina University, USA
Abstract. Several scholars have cited the importance of the role of the supervisor in providing employees with key resources enabling them to effectively cope with job demands, thereby reducing the risk of burnout. However, although literature continues to cite the importance of supervisory behavior as a factor contributing to subordinate burnout, a cogent model detailing the role of the supervisor in the subordinate burnout process has yet to be articulated. Understanding the role of the supervisor in the subordinate burnout process is critical because as it may help organizations develop leadership practices that reduce and eliminate burnout's prevalence in the workplace. This paper articulates and tests a model whereby subordinate role stressors mediate the supervisor to subordinate burnout relationship. Drawing from a sample of 164 dyads, results and implications are discussed.
Measuring customer service in a private hospital
Christo Bisschoff, Potchefstroom Business School, North-West University, South Africa
Abstract. This study measures service quality management in a private hospital in Gauteng, South Africa. This was done by determining the current standard of service quality management, identifying the gap between the value and the satisfaction of the service quality dimensions, as well as the influence of gender on the perception of service quality. Following a literature study the empirical research employed a tailor-made 38-item questionnaire to collected data across seven sections, namely: premises/employees, doctors' medical services, diagnostics, nursing medical services, admissions, meals and rooms. A satisfactory response rate of 71% was obtained. The analysis included the demographic profile, reliability of the data (Cronbach alpha coefficients), exploratory factor analysis and descriptive statistics. The existence of the difference between gender experiences was also determined. The results showed that although satisfactory levels of service exist (in excess of 60%), management needs to focus on the factors highlighted during the study, with proper maintenance and improvement of the appearance of the facility and providing training to personnel to promote patient relationships. Furthermore, the recommendations include inter alia that the model is useable in other health institutions to evaluate service quality levels and to highlight possible shortfalls. This would provide management with knowledge to address possible shortfalls and improve the level of service quality across the private health sector.
Service quality in a landlord - small business relationship in shopping centers
Cornelia Harmse, Tshwane University of Technology, South Africa
Abstract. The aim of the study reported on in this article was to measure the perceived service quality that small business tenants in shopping centers receive from landlords. There are numerous models available to measure service quality, but no studies have been done on the perceived service quality that small business tenants receive from landlords in shopping centers. A quantitative survey on a non-probability sample of 457 small business tenants in 27 different shopping centers in Pretoria, South Africa was conducted. It was found that the perceptions of quality of service experienced by small business tenants in shopping centers in this regard were not overwhelmingly positive. An important finding is the fact that only two distinct dimensions of perceived service quality were found to be pertinent in this relationship, namely intangible (softer issues), and marketing and tangibles. Landlords need to know whether small business tenants are satisfied with the service they provide. This will help them to improve on their service quality in order to retain their tenants and be competitive with other landlords of shopping centers. The findings add to the literature on perceived service quality, specifically in the landlord-small business tenant relationship in shopping centers. It provides valuable information to landlords on having an understanding of how small business tenants perceive the quality of service rendered to them by the landlords.