PPM Papers Coming Soon

This section contains information about articles under review and waiting for publication in next issues of the journal.

The influence of emotions on trust in ethical decision making

Wing Shing Lee, I-Shou University, Taiwan
Marcus Selart, Norwegian School of Economics, Norway

Abstract. This paper attempts to delineate the interaction between trust, emotion, and ethical decision making. We first propose that trust can either incite an individual toward ethical decisions or drag him or her away from ethical decisions, depending on different situations. We then postulate that the feeling of guilt is central in understanding how trust affects the ethical decision making process. Several propositions based on these assumptions are introduced and implications for practice discussed.

Innovation value chain as predictors for innovation strategy in Malaysian Telecommunication industry

Seyedeh Khadijeh Taghizadeh, School of Management, Universiti Sains Malaysia, Malaysia
Krishna Swamy Jayaraman, Graduate School of Business, Universiti Sains Malaysia, Malaysia
Ishak Ismail, School of Management, Universiti Sains Malaysia, Malaysia
Syed Abidur Rahman, School of Management, Universiti Sains Malaysia, Malaysia

Abstract. Innovation value chain is the end-to-end approach to generate, transform and disseminate knowledge and ideas. These new ideas may be incorporated in the system for novelty and creativity which simultaneously lead to innovation. The main purpose of this research is to empirically explore the influence of innovation value chain (idea generation, conversion, and diffusion) on innovation strategy in the service set-up. Further, it aims to examine the relationship between innovation strategy and innovation performance (service development and delivery process) in Malaysian telecommunication sector. A quantitative research approach was conducted with a purposive sample of 249 managers representing Malaysian telecommunication sector. The findings of the study revealed that the idea generation and diffusion are significantly influencing on innovation strategy. Innovation strategy has positive effect on service development and delivery process. The findings of this study suggest that in the formulation innovation strategy, service firms should seriously take into accounts idea generation and diffusion.

Investigating the relationship between organizational culture and work engagement

Pervashnee Naido, University of South Africa, South Africa
Nico Martins, University of South Africa, South Africa

Abstract. The aim of this study was to investigate the relationship between organizational culture and work engagement. Work engagement has been shown to be powerfully linked to a range of business success outcomes. Although a large number of studies have investigated the link between employees' work engagement and organizational variables, there remains a dearth of scientific research on organizational culture and its impact on work engagement. A quantitative research design was undertaken in a South African ICT company. A total of 455 employees completed the South African Culture Instrument and the Utrecht Work Engagement Scale.
Correlation analysis showed that all the dimensions of organizational culture correlated positively with work engagement dimensions. Regression analysis revealed that leadership, management processes and goals, and objectives make the strongest statistically unique contribution in predicting the dimensions of work engagement. As work engagement has been shown to relate to several positive work outcomes, it makes sense for organizations to increase their employees' levels of work engagement by addressing and improving organizational culture. The scientific understanding of the potential relationship between these constructs extends organizational culture and work engagement literature by empirically establishing an association between the two constructs.

Principals' involvement in the career development of female teachers a case study in South Africa

A. W. Fourie, Free State Department of Basic Education, South Africa
Philip C. van der Westhuizen, North-West University, Potchefstroom Campus, South Africa
Elsa Mentz, North-West University, Potchefstroom Campus, South Africa

Abstract. Career planning is an important aspect of Human Resource Development and Management. This research centred on the question as to whether school principals in South Africa fulfilled their management role with respect to the career development of female teachers. The results indicated that principals rated their involvement in the career development of female educators relatively high, whereas female educators did not experience the principals to be supportive in terms of the identification of career weaknesses and strengths, the availability of career development programs and opportunities or support in terms of discussions and planning on career development. Principals nevertheless are of the opinion that adequate career development programs for female teachers were lacking at their schools and that they themselves did not adequately accommodate the fact that career paths for women differed from those of men. It is recommended that Departments of Education should place more emphasis on the professional development of school principals in order for them to be able to focus on the career development of female teachers at their schools. It should focus on all aspects of female educators' career development

The impact of management practices on job satisfaction: insights from a state-owned institution

Molefe J. Molefe, Tshwane University of Technology, South Africa
Edward M. Rankhumise, Tshwane University of Technology, South Africa

Abstract. The aim of this study was to investigate the impact of management practices on job satisfaction. The literature showed that employers in the private sector were struggling to retain black employees, and implementation of the Employment Equity Act (EEA) was moving at a slow pace in this sector. At the time of the study, there was a dearth of literature on the impact of management practices on job satisfaction in the South African context, especially research soliciting employees' views about EEA implementation and their sexual harassment experiences. In this study, the researchers adopted a qualitative research approach, using a state-owned institution as a case study. The interview protocol was developed from the literature, and data was collected from sixteen participants. The findings indicate that there are challenges with regard to management practices, including the implementation of affirmative action, with which participants were not happy. In addition, there are clear cases of sexual harassment in the institution, and most of all, top management is adopting a bureaucratic management style. This study contributed to the body of knowledge in relation to the factors that lead to the dissatisfaction of employees, since it revealed that if the management practices identified above were not properly addressed by the management of the state-owned institution in question, it would find it difficult to retain employees and keep them satisfied.

Progress report on reflexive practices and change management

Joanne M. Roch, University of Sherbrooke, Canada

Abstract. We have to accept that results have just not been forthcoming in the time since conducting change with respect to transformation projects has been a topic for discussion. According to Making Change Work, a 2008 IBM study, successful changes remain the exception. Indeed, 60% of projects fail to achieve their initial objectives! The objectives herein aim at questioning the relevance of planned change-management approaches in a highly turbulent and complex context. Moreover, they suggest that the teachings of the leading contributions in this field merit review.
This article begins by presenting the meager success achieved with change-management practices and calling back into question the strategy of planned management of change.
After gleaning lessons from these analyses, the second section brings to the forefront the contributions of research that consider learning as a lever for organizational change, mainly with respect to the development of learning routines and the importance of developing reflexivity.
Although these contributions shed valuable light on the discipline, the approaches proposed by field practitioners appear to have rejected by more than one of them due to the scarcity of concrete means for implementing them, on the other.
This article proposes the foundation to guide practitioners and posits that a better understanding of the interpretative processes related to change would help managers achieve greater success in their change projects. It suggests a number of reflective initiatives that make it possible to stimulate experimentation, questioning, and brainstorming, since the idea is not changing once, but on a continual basis.

Risky strategies with payoff mean changed in 2×2 simulation-based game: a normal distribution case

Yao-Hsien Lee, Chung Hua University, Taiwan
Mei-Yu Lee, Yuanpei Universtity, Taiwan

Abstract. The authors investigate the Nash equilibrium payoff in the 2×2 simulation-based game where the two strategic payoffs are Normal distribution and the equilibrium payoffs are realized after the decision-making. The authors show that the risk premiums are a part of the means of equilibrium payoffs due to the compensation of the risky strategies. It is also showed that the equilibrium payoffs are not necessary to be as the same as Normal distribution where we assume the dominant strategic payoff, but will become Normal distribution only when the distance between the means of two strategic payoffs is large enough. This is revealed by the skewed and kurtosis coefficients, which approach to 0 and 3 respectively, even though they are negatively related with the average of the equilibrium payoffs. The most important result is that there is no linear relationship between the means and standard deviations of the equilibrium payoffs, but the mean of the equilibrium payoffs is a concave function with respect of the standard deviation of the equilibrium payoffs.

The level of market orientation in Tatarstan high technology companies (Russia)

Ekaterina Protcko, Kazan Federal University, Russia
Utz Dornberger, Leipzig University, Germany
Venera Vagizova, Kazan Federal University, Russia

Abstract. This article aims to give high technology companies in Tatarstan (Russia) a better understanding about the concept of market orientation and their level of market orientation in total and also depending on the number of employees, years in business and the type of ownership. It shows the importance of implementation of the market orientation concept regarding better company's performance. This study validated Kohli and Jaworski's market orientation scale in high technology companies, particularly in small and medium high-tech companies in Tatarstan. The findings show that the level of market orientation in high-tech industries in Tatarstan is low. The article provides the recommendations for the managers of high-tech companies to improve the level of market orientation. Implementation of the market orientated strategies, putting emphasis in conducting effective market research and be strong in customer and competitor orientation, is important for hi-tech companies to improve their performance.

Broad-based black economic empowerment (B-BBEE) in South Africa: amoral and ethical management perspective

Louis P. Krüger, University of South Africa, South Africa

Abstract. Twenty years after South Africa became a democratic country, it still faces considerable challenges in striving for economic equality and social justice. The African National Congress (ANC) has passed several pieces of legislation in an attempt to achieve these objectives. The Broad-Based Black Economic Empowerment Act (B-BBEE) (2003) provides the legislative framework for such programmes. The purpose of this research was to benchmark B-BBEE (and its codes of good practice) against the provisions of the United Nations (UN) Declaration of Human Rights, the Constitution of the Republic of South Africa (RSA) and the B-BBEE Act. A "5 Star" research methodology and a moral and ethical management theoretical framework were developed to assist with the evaluation. It appears that in at least two areas, the Constitution of the Republic of South Africa and the B-BBEE Act passed in terms of the Constitution, may be in violation of the UN Declaration, both in its letter and spirit. It is recommended that the UN Committee on the Elimination of Racial Discrimination (CERD) be alerted to this possibility.

Effects of migration and immigration on SMMEs: the case study of Diepsloot informal settlement, South Africa

Evelyn Chiloane-Tsoka, University of South Africa, South Africa
Mmako Nthabeleng, University of South Africa, South Africa

Abstract. Rapid urban growth throughout the developing world has outstripped the capacity of most cities to provide adequate basic services for their citizens. Urban congestion and the sprawl of informal settlements are further hampering local authority's abilities to create a conducive environment for the support of SMMEs. This leads to a shifted focus on improving basic infrastructure and delivering essential services such as healthcare which include providing treatment for HIV/Aids for a growing number of people within South Africa's urban areas. As a result, SMMEs become a panacea for survival in an attempt to provide for daily necessities which government cannot support. This paper provides a conceptual framework of rural migration and immigration with specific focus on Diesploot informal settlement as a cause of concern for urban poverty. Lack of proper housing, poor sanitation and higher costs of living lead to poor urban conditions that undermine the sustainability of socio-economic development of large cities in the South Africa. Thus giving rise to emerging informal SMMEs survivalist entities. The aim of this paper is to explain the effects of rural migration and immigration on SMMEs in Diepsloot. Secondary data from books, reports, archives, the internet, government reports and municipality reports were analysed in formulating this article.

An exploration into family business and SMEs in South Africa

Thea Visser, University of South Africa, South Africa
Evelyn Chiloane-Tsoka, University of South Africa, South Africa

Abstract. The South African government recognises the importance of entrepreneurial activity as a means of energising the country's economy and encouraging growth and development. The rapid growth in family businesses in South Africa can be attributed to the rationalisation process taking place in many large organisations, as well as to the growing inability of the informal sector to create new jobs. However, the contribution of family businesses to socio-economic growth has never really received sufficient attention. This article expands on the work of previous family-business literature in South Africa. From the literature, there is evidence of family-business failure which is due to challenges that these businesses face. The aim of the research is to explore family-business challenges and small and medium enterprises in South Africa. A conceptual framework is provided, while secondary data were obtained from books, articles, reports, and electronic media. The units of observation are from experts in the entrepreneurial and family-business disciplines. Family businesses are faced with challenges such as market conditions, government policy and regulation, and infrastructure. Other challenging areas include management and governance structures, succession, planning, cash flow and cost control, family-business relationships and skilled labor. Recommendations and family-business research areas are also presented.

Differentiating supply chain strategies: the case of light vehicle manufacturers in South Africa

Intaher Marcus Ambe, University of South Africa, South Africa

Abstract. This article reports on an investigation of supply chain strategies that are employed by light vehicle manufacturers in South Africa. The research method used was an exploratory and descriptive study. A face-to-face, semi-structured interview questionnaire was administered to senior supply chain practitioners, based on purposive sampling and the data was analysed descriptively using SPSS software. The findings of the study revealed that both lean and agile supply chain strategies are employed by the manufacturers. All the light vehicle manufacturers followed a lean strategy for their inbound supply chain. While a few of them followed a lean supply chain strategy for their outbound supply chain, others followed an agile supply chain which suggests a leagile supply chain strategy. Three important conclusions can be drawn from the study: Firstly, despite the changing business conditions and increased customer demands, lean supply chain strategy is still the dominant strategy for light vehicle manufacturers in South Africa. Secondly, a supply chain strategy is not all about product characteristics as a determining factor. There are other criteria that could be used to determine supply chain strategies. Finally, light vehicle manufacturers do not always make decisions and implement practices in line with their chosen supply chain strategies. Hence, there are mismatch between practices and strategies. It is recommended that the vehicle manufacturers align their practices with their chosen strategy, since mismatching generally leads to problems and challenges in organisations.

Benchmarking as a managerial tool

Davood Askarany, Business School, Department of Accounting and Finance, University of Auckland, New Zealand

Abstract. The adoption and diffusion of benchmarking is relatively addressed in Western countries. However, there is scant evidence on how benchmarking is received by organizations in developing countries. Furthermore, while the diffusion of innovation theory suggests the significance influence of characteristics of an innovation on its adoption and diffusion, no study has been reported to examine this theory in relation to benchmarking. Furthermore, almost all surveys on the adoption of benchmarking have considered benchmarking as a practice rather than a process.
Contributing to these gaps in the literature, this study provides evidence on the adoption of and diffusion of benchmarking in Sultanate of Oman (as a developing country) and examines the significance of impact of characteristics of innovation on the adoption and diffusion of benchmarking (both as a practice and a process).
Making a distinction between the adoption of benchmarking as a practice and a process, this study explains some of the variations in reported adoption rates for benchmarking in the literature.

A model to measure employee engagement

Lailah Imandin, Potchefstroom Business School of the North-West University, South Africa
Christo Bisschoff, Potchefstroom Business School of the North-West University, South Africa
Christoff Botha, Potchefstroom Business School of the North-West University, South Africa

Abstract. The objective of this article is to develop a model to measure employee engagement. In doing so, the article firstly develop a theoretical model by identifying employee engagement constructs from the literature. Secondly, identifying measuring criteria of these constructs from the literature, and thirdly, to validate the theoretical model to measure employee engagement in South Africa. The theoretical model consists of 11 employee engagement constructs, measured by a total of 94 measuring criteria. The empirical process of validation employed data collected from 260 respondents who study towards an MBA degree at two private business schools in KwaZulu-Natal. The validation process aimed to validate the variables that measure each of the constructs by determining statistically that the sample employed is adequate, use the Bartlett test to ensure the applicability of the data for multivariate statistical analysis; to validate the measuring criteria as relevant to employee engagement, and to determine the reliability of each of the employee engagement constructs in the model. All these objectives were met. This culminated in the final result, namely an adapted empirical model to measure employee engagement in SA. The model tested statistically to be a valid and reliable model. The research is of value to management in the private and public sector, academics and researchers.

The need for an integrative framework to challenge traditional entrepreneurship theories: the context of effectuate education expertise

Tarja H. Niemelä, Jyväskylä University School of Business and Economics, Jyväskylä University, Finland
Reija A. Häkkinen, Jyväskylä University School of Business and Economics, Jyväskylä University, Finland

Abstract. By using integration as method we have brought together entrepreneurship and education theories in a new way of combining individual, cooperative and organisation level. In our conceptual study we propose a framework for integrating the various theories of education expertise. To achieve this integration, we draw on theories from the fields of entrepreneurship, knowledge and learning, and capabilities and resources. We examine the theories from three perspectives: individual, cooperative and organisation. Our study offers a model of effectuate education expertise and suggests new paths for entrepreneurship research. The practical implications suggest that management of effectuate education expertise is of co-creation needed in education business contexts.

Monetary policy regimes and economic performance in Kenya

Enock T. Nyorekwa, University of South Africa, South Africa
Nicholas M. Odhiambo, University of South Africa, South Africa

Abstract. This paper provides an overview of Kenya's economic, monetary and financial reforms - since its independence in 1963. In particular, the paper assesses the respective monetary policy frameworks, and the associated economic performance from 1963 to date (July 2014). It also explores the challenges facing the performance of monetary policy. Kenya has undergone a number of reforms since its independence - shifting from direct monetary policy to indirect monetary policy in the 1990s - as an important part of the IMF structural adjustment programs. In 2011, a monetary policy framework that targets monetary aggregates consistent with government inflation targets was adopted, with the Central Bank Rate (CBR) as the main instrument. The findings of this paper show that while monetary policy was largely inactive in the 1960s and the early 70s; as in many other developing countries, the associated macro-economic performance exhibited by high growth rates, the balance of payment surplus, and the low inflation during this period, has not been fully replicated. The study also found that, although Kenya's financial sector is currently regarded as one of the most developed in sub-Saharan African countries, like many other emerging economies, the sector still faces a number of challenges. These challenges include: the intricacies associated with rapid financial innovations, the pursuance of multiple objectives, and the recent rising trend of domestic debt.

A social responsibility inventiveness to relieve Krugersdorp and Randfonteinexploited household servants of mistreatment

Solly Matshonisa Seeletse, University of Limpopo, Medunsa Campus, South Africa

Abstract. The article reports the findings of an investigation undertook on the exploitation of some potential entrepreneurs who work as abused employees in Krugersdorp and Randfontein. Such exploitation was seen to have hindered these employees' progress. The objectives were to show the extent of the exploitation and reasons for these employees not being entrepreneurial. An exploratory study was undertaken based on a convenience sample of 124 employees who contributed their skills for the benefit of businesses belonging to their employers' companies. The employees knew only to do their work, but had no skills to help them become entrepreneurs. They also did not have the ambition to own business and be managers. They had no bank accounts and feared their employers greatly. On remuneration, they were underpaid. Two areas of the West Rand were investigated, but other towns in the area have similar trends. However, this as a start, successful results of the recommendations can make useful benchmarks in other areas to help exploited employees to open businesses. These efforts have not been tried before in Krugersdorp and Randfontein. Exploitation of employees has a long history in South Africa. As a social responsibility effort, this study has a positive contribution to society.

A unique market offering by formal independent retail and wholesale small businesses in the Soweto Township, South Africa

Hannie Badenhost-Weiss, University of South Africa, South Africa
Orpha Cilliers, University of South Africa, South Africa
Themari Eicker, University of South Africa, South Africa

Abstract. The rationale for this study is to determine how independent formal small retail and wholesale businesses compete against increasing competition mainly from large retail chains located in new shopping malls in Soweto. Soweto was one of the biggest segregated townships in South Africa during the apartheid era and in 2005 the City of Johannesburg focused on stimulating the economic activity of Soweto. The fundamental ways in which small and large businesses differ, influence the way they compete. According to literature businesses can compete within three competing disciplines, namely operational excellence, product leadership and customer intimacy. Each discipline consists out of a unique combination of elements known as price-related, product-related and customer service-related elements. This study investigates the sustainability of independent formal small retail and wholesale businesses in Soweto by identifying the unique market offering that they have to present to their customers to compete successfully in the market. The research was conducted by means of a questionnaire and personal interviews with a sample of 650 small businesses in Soweto. With this quantitative study, it was found that independent formal small retail and wholesale businesses that focused on product-related (product quality, product variety and best brands) elements in their market offering as the main competing discipline, tend to survive and grow.

Proposing an activity-driven operational accounting framework at an agricultural chemical company

Pieter Buys, Northwest University, South Africa
Marne van der Linde, Northwest University, South Africa

Abstract. An activity-based approach to operational management aims to address the shortcomings of traditional resource management methodologies and to provide enhanced management information. Since effective cost management is of critical importance, operational processes not adding value to the business must be identified. As such, activity-based operational management techniques provide an opportunity to strive towards cost-competitive excellence. By properly analysing the business operations' results, the non-value adding processes can be eliminated, allowing management to properly focus on those activities that will effectively contribute towards better decision-making and competitiveness.
The main objective of this case study was to evaluate the feasibility of an activity-driven operational accounting framework within a South African agricultural chemical manufacturer and provides a comparison between its traditional cost accounting methodology and a proposed activity-based operational accounting framework. The results indicate that with the traditional costing method, not all operational costs are visible, and that the product costs are probably incorrectly allocated, and as such much of the operational costs are not properly recovered, which, in turn, will have an adverse effect on the company's sustainability. The recommendation is therefore that the company should consider phasing in certain aspects of an activity-driven operational accounting framework.

Resistance to change in schools: perceptions of principals and teachers in a South African province

Arrie van Wyk, Northwest University, South Africa
Philip C. van der Westhuizen, Northwest University, South Africa
Herman van Vuuren, Northwest University, South Africa

Abstract. Changes have taken place in the South African society, especially in education, to address the previous discriminatory practices in favor of a free and democratic dispensation. Literature shows that change always goes hand in hand with resistance to it. However, literature pertaining to the perceptions of principals and teachers about resistance to change in education is limited, hence the rationale for this research. The purpose of this article is to report on the differences and the extent of the differences between teachers' and principals' perceptions regarding resistance to change in impoverished schools of a South African province. A quantitative approach was followed. The d-values and t-tests indicated significant differences between the perceptions of principals and teachers about resistance to change in their respective schools. Teachers' reactions to change in schools were generally overloaded with resisting forces while principals' experiences of change were more optimistic with fewer resisting forces.

Research output level at Durban University of Technology (DUT) in South Africa: contributing factors and their implications

Philisiwe Charity Cele, Durban University of Technology, South Africa
Lawrence Mpele Lekhanya, Durban University of Technology, South Africa

Abstract. Various factors contributing to the level of research output at the Durban of University of Technology (DUT) were investigated by this research and their implications to the University were also examined. Data were collected from six faculties at DUT. A stratified sample of 60 respondents was used, with the sample consisting of 30 experienced researchers and 30 emerging researchers, selected from the academic staff. Respondents were asked to complete a 5-point Likert scale questionnaire, with the help of an interviewer. Space was provided for each of the questions in the questionnaire, to allow respondents to provide additional, relevant information, which might have been left out during the formulation of the questionnaire. A mixed approach of both qualitative and quantitative techniques was used, while the analysis of primary data was done using SPSS, version 21.0. Results of the study reveal that the majority of respondents indicated various factors, including individual and institutional elements, as the main barrier to participate in doing research. This paper will benefit University management, academic staff, potential university academic staff, the university's human resource department, other South African universities, the South Africa Department of Higher Education, the South African Council of High Education and South African education policy makers. The findings are limited by the study's exploratory nature and only one university was considered. Generalisation of this study should be done with care, while it is recommended that further research, with a large sample, should concentrate on the development of an academic workload allocation policy at the Universities and effective implementation of the policy encouraged.

Influence of e-HRM in decision making in selected tertiary institutions in South Africa

Nnenna Eme Ukandu, Cape Peninsula University of Technology, South Africa
Chux Gervase Iwu, Cape Peninsula University of Technology, South Africa
Charles O.K. Allen-lle, Cape Peninsula University of Technology, South Africa

Abstract. The study aimed to explore the influence of Electronic Human Resource Management (E-HRM) systems in decision-making specifically to uncover the benefits and challenges of using E-HRM system in the human resource management (HRM) functions of South African tertiary institutions. By examining the influence of E-HRM systems on HRM functions, this research should enable the HR managers improve their HR functions. For credible results, a combination of both qualitative and quantitative research methods was employed. This research design enabled the researchers to have a better understanding of the study from a subjective and objective point of view since it involved the use of in-depth interviews, and use of questionnaires. The vehicle that was used to collect quantitative data was closed-ended structured questionnaires. The data that was collected was analysed by using the statistical package for the social sciences (SPSS). The study found a majority appreciation of the benefits of E-HRM, albeit certain challenges are experienced in its utilization. Based on the findings, some recommendations are made.