PPM Papers Coming Soon
This section contains information about articles under review and waiting for publication in next issues of the journal.
Personality type: optimizing the development of emotional intelligence
Antoni Barnard, School of Management Sciences, Department of Industrial and Organizational Psychology, University of South Africa, South Africa
Abstract. The development of managers' emotional intelligence (EI) has been advocated as fundamental to their success as leaders. Despite the Meyers Briggs Type Indicator (MBTI) being one of the most widely applied psychological measures of personality type in leadership development, there is inconclusive evidence on the relationship between personality type and EI. This study examined the relationship between personality preference types and emotional intelligence (EI) in a sample of 1 121 employees in a South African investment bank. Instruments for data collection included the Myers-Briggs Type Indicator (MBTI) and the Bar-On Emotional Intelligence Quotient (Bar-On EQ-i). Data were analyzed utilizing one-way analysis of variance (ANOVA) to determine the effects of personality preference types on EI. Findings suggest a significant, positive relationship between overall EI and the personality preferences of Extroversion, Thinking and Judging. The Feeling preference affected interpersonal EI positively. Intuitive-Thinking personality types showed significantly higher intrapersonal and mood EI subcomponent scores and Sensing-Feeling personality types demonstrated significantly lower EI subcomponent scores for intrapersonal and stress tolerance. Findings suggest that areas for EI development can be inferred from MBTI personality type preferences. Aligning coaching and development with personality preferences present valuable EI development alternatives.
Measuring learning motivation of students in supply chain management games setting: a case study of Innov8.0 game
Touhid Bhuiyan, Ph.D., Associate Professor and Head of Department of Software Engineering, Daffodil International University, Bangladesh
Abstract. Information systems play a massive role in measuring, analyzing, improving and controlling educational environment. In this paper researchers evaluated impact of Innov8.0, 3D online game on supply chain management education environment. This study evaluated the effects of game based education rather than traditional classroom on motivation of tertiary level students. To measure the efficiency of educators reliance on this game to lift students' motivation in learning from games to boost students' motivation in learning, we conducted an experimental study and used the Keller's ARCS instruments as motivation measurement inventory. The results indicate significant improvement to motivation of the experimental versus control group. This paper scientifically addresses impact of Innov8.0 as a tool for teaching supply chain management education, discusses data of field tests and finally describes the results.
Non-financial performance measures and performance: examining the mediation role of innovation in an Indonesian stock exchange-listed organization
Yuliansyah Yuliansyah, Senior Lecturer in Accounting, University of Lampung, Indonesia
Abstract. This study aims to investigate the effect of non-financial (NF) performance measures on individual performance through innovation in an organization listed on the Indonesian Stock Exchange. Analyzing with SmartPLS the usable data from a survey, we show that NF performance measures have a positive effect, fully mediated by innovation, on individual performance. It follows that to use NF indicators could enhance innovativeness and lead to the improvement of managerial performance. In other words, managers should take note of NF performance measures to enhance innovation that can lead to improved individual performance.
The model of human capital and knowledge sharing towards sustainable competitive advantages
Widodo, Ph.D., Professor, Faculty of Economics, Sultan Agung Islamic University (UNISSULA) Semarang-Indonesia
Abstract. This study aims to arrange a development model of SMEs through the model of human capital and knowledge sharing towards sustainable competitive advantage. The number of respondents is 150 people which are the leaders SMEs. For the technique of data analysis, this research uses The Structural Equation Modeling (SEM) from the packet of AMOS software 5.0. The findings of this research play roles as an effort of development in the model of human capital and knowledge sharing, so it can realize the sustainable competitive advantages. It is done by developing the human capital which is built by improving knowledge sharing and organizational learning.
Employee turnover rate and organizational performance in South Africa
Rasoava Rijamampianina, DSSC, DESCA (Madagascar); MBA, DBA (Japan), Director of the Management Advancement Programs, Wits Business School University of the Witwatersrand (WITS) South Africa
Abstract. Within the business community, employee turnover is widely assumed to affect organizational performance. Different variations of this relationship have been proposed over the years. This study seeks to confirm if a curvilinear relationship exists between employee turnover rates and organizational performance that could inform an optimal employee turnover rate for organizations in South Africa. To this purpose, a cross-sectional study that collected quantitative data through the use of a self-administered questionnaire was employed. Through multiple linear and non-linear regressions, our results indicate that voluntary employee turnover rate significantly predicted financial and organizational performance through a cubic function. The optimal functional voluntary employee turnover rate for organizations in South Africa was calculated to be between 14 and 19%.
The impact of social media within the sporting industry
Sameera Banu Hussain, Lecturer, Department of Sport Studies, Faculty of Applied Sciences, Durban University of Technology, South Africa
Abstract. Public relations within the sporting industry plays a vital role towards an organizations key publics, the relationships developed and the overall organizational image that the sport organization portrays. Ultimately public relations are responsible for creating and maintaining a mutually favorable relationship amongst an organization and its key publics. Based on this premise, it can therefore be said that public relations within the sporting industry serves as a management function which involves the managing of communication, reputation and relationships that determine the success or failure of that sport organization. The role of public relations within sporting organizations has acquired considerable significance in the new media era. Hence, making the job of a public relations professional equally easy and difficult in terms of understanding social media, how publics use it and how to connect with their key publics. Therefore this study set out to assess the impact of social media communication tools within the sporting industry. A quantitative descriptive methodology was employed for this study. The results of the study indicated that although social media is used as a communication tool, other social media platforms should be included in the sport organizations communication strategy.
A critical examination of risks disclosed by South African mining companies' pre and posts Marikana event
Tankiso Moloi, Ph.D., Professor, Financial Governance, College of Accounting Sciences, University of South Africa, South Africa
Abstract. This paper set to critically assess the risk disclosed by South African listed mining companies' pre and post the Marikana incident. Using the content analysis to code the categories of risks disclosed by mining companies in the annual reports, it was noted that the main issue that has been prevalent in the public discourse which is the labor relations (poor employee relations)/ wage negotiations was not that high on the risk agenda of mining companies. Given prominence of industrial action (sometimes coupled with violence), it was expected that this risk will feature high on the list of risks that were reported by mining companies. The implication of this is that this risk may not necessarily be receiving attention. The main downside of this risk not being in the strategic agenda is that companies may not have conducted scenario analysis including the business impact assessments that could be useful in modifying the impact of this risk.
An examination of the relationship between employee resourcing and professionalism: a case study of Nigerian public service
Christiana Kappo-Abidemi, Lecturer in Human Resource Management, Department of People Development and Technology, Walter Sisulu University, Potsdam Campus, South Africa
Abstract. The study examined the concept of professionalism and its relationship to employee resourcing with special emphasis on the effect of application of knowledge, skills and attitudes to staffing within the organization. The population consisted of Nigeria public servants. Both quantitative and qualitative methods of data collection were adopted; four hundred and seventy six (476) useable questionnaires were retrieved from respondents and used in the quantitative analysis, while three different groups consisting of between eight to twelve people were involved in focus group discussions. We found among others that the Nigerian public service is made up of an aged workforce. Following this, we recommend that the public service should present better employment incentives to attract young and talented workforce. We also suggest that the corporate autonomy of HR departments must be respected; employee resourcing should be handled without interference. While we noted a lack of professionalism within the Nigerian public service, we hasten to assert that this is partly as a result of the learning environment in Nigeria which is considered unsuitable and ill-equipped for quality learning.
Factors influencing urban youth entrepreneurship development in sub-Saharan Africa
Germinah Evelyn Chiloane-Tsoka, Faculty of Economic and Management Sciences, Department of Business Management, University of South Africa, South Africa
Abstract. Africa's population is growing rapidly and African youth currently has limited income opportunities other than self-employment. Globally there are more than 1 billion young people between the ages of 15 and 24 defined as youth by the United Nations. According to the International Labor Organization, an estimation of 85% of young people live in developing economies such as African economy, and anticipate that for the next 10 years close to 100 million young people will enter the global workforce every year. The purpose of this paper is to identify the factors driving youth entrepreneurship as well as challenges limiting urban youth entrepreneurs' ability to contribute meaningfully to economic growth and reducing unemployment across sub-Saharan Africa (SSA) using a quantitative research approach. 533 questionnaires were purposive administered and 431 were completed a response rate of 82.6% was achieved. Mozambique and Namibia were excluded due to language proficiency. Swaziland response rate was very poor and thus were discarded and regarded as spoilt questionnaires. The findings indicates that youth do not start business out of necessity and that role models play a major role in influencing youth to start business in sub-Saharan region.
Management support for the application of Lean Six Sigma methodology to improve customer satisfaction in a South African telecommunications company
CC Shuttleworth, Associate Professor, Head: Research & Graduate Studies, College of Accounting Sciences, University of South Africa, South Africa
Abstract. During difficult financial times, companies are always looking for ways to improve their bottom line. Lean Six Sigma (LSS) is a holistic business improvement methodology that maximizes shareholder value by increasing customer satisfaction and reducing the cost of complexity. The purpose of this paper is to explore the importance of management support when implementing LSS in a South African telecommunications company and to establish if management perceives that LSS leads to improved customer satisfaction. The research design involves a structured literature review on the application of LSS in services and a case study conducted at a South African telecommunications company. From the semi-structured interviews with various management levels in the company, it became evident that although managers are aware of the implementation of LSS in the company, there is not overall support from top management, and this impact negatively on the application of LSS. With regard to how customer focused LSS is, the interviewees all agreed that the methodology is customer focused, but some were concerned that top management might be more concerned about internal, as opposed to external customers.
Job and career satisfaction in higher education institutions: A case study of university "A" in South Africa
Nirmala Dorasamy, Ph.D., Professor, Department of Public Management and Economics, Durban University of Technology, Faculty of Management Sciences, South Africa
Abstract. Orientation: This article focused on the job and career satisfaction of a higher education institution in South Africa. The findings from this investigation will assist employees and management alike to understand factors that can improve career and job satisfaction, in order for University "A" to be an employer of choice that will attract, develop and retain suitably qualified employees.
Strategic HRM: what will work be like in the future, and what impact will changes have on HR departments? Theoretical discussion and practical implications
Adriaenssen, D.J., Research Fellow, Århus University, Dept. of Psychology, Denmark
Abstract. The issue we are investigating is how work will evolve in the future.
Factors influencing the development of youth entrepreneurship: the case of Ethekwini municipality, South Africa
Wise Sambo, M. Tech, Economic and Management Sciences, Department of Business Management, University of South Africa, South Africa
Abstract. Despite South Africa's economic position of being the powerhouse in the continent, consistent studies by Global Entrepreneurship Monitor (GEM) revealed that South Africa's rate of youth entrepreneurship is low in comparison with other Sub-Saharan African countries (SSAC). Globally, youth unemployment was estimated to be 12.6% in 2013, and the figure was expected to increase to 12.7% in 2014. In developed and Sub-Saharan African countries youth unemployment was respectively 18.1 and 11.8%, on average during the year 2012, while South Africa had the highest of youth unemployment rate at 31.4% in 2013. This study intends to report how lack of access to finance and business support services influence the development of youth entrepreneurship in South Africa. A sample of young entrepreneurs (aged 18-35) within the Ethekwini Metropolitan area in Durban, South Africa was drawn to participate in this study. Structured survey questionnaires were used to collect primary data from young business owners within the metropolitan municipality. Findings revealed that lack of access to finance and failure to use business development service impact negatively on the development of youth entrepreneurship. This study concludes with recommendations on how youth entrepreneurship can be improved in South Africa. A total of 30 questionnaires were self-administered with a total response rate of 84% (28) returned for analysis.
Resistance to change in impoverished schools of a South African province
Arrie van Wyk, Ph.D., Lecturer, Education Leadership and Management, North-West University, South Africa
Abstract. After the advent of democracy in South Africa in 1994, changes have taken place to eliminate the previous racially discriminating practices in the education system. These changes, among others, included the desegregation of schools, the establishment of the South African Schools Act (SASA), the introduction of no-fee schools, and feeding schemes. Despite these measures to counteract the detrimental circumstances of previously disadvantaged schools, some of the impoverished schools are still not performing according to expectations. A quantitative method with a post positive view was used. The purpose of the research reported in this article was to determine whether such schools demonstrated a resistance to the change initiatives in education introduced in South Africa. An investigation into the underperformance of impoverished schools revealed that impoverished schools that underperformed might have suffered from some form of resistance to change.
Internal control systems in small and medium-sized (SMEs) medical practices in the Thulamela municipality, South Africa
Emmanuel K. Oseifuah, Department of Accounting, University of Venda, South Africa
Abstract. The study analyses the effectiveness of internal controls in Small and Medium-sized (SMEs) Medical Practices in the Thulamela Municipality in the Vhembe District of Limpopo Province, South Africa. Questionnaires, complemented by interviews, were used to collect data pertaining to the five primary components of internal control systems in the sampled SMEs. The key findings are that: 1) all owner/managers of the sampled SME medical practices strongly agree that effective internal controls are necessary for business success; 2) 80% of SME medical practices are owned by males while 20% are owned by females; 3) 76.6% of the surgeries are owned by persons aged between 26-40 years, while approximatley, 25% are owned by those aged over 40 years; 4) Majority (86.7%) of the respondents indicated that usually identify and analyse risk to ensure that their businesses objectives are achieved; 5) about 30% of the medical practices do not have insurance cover even though they have expensive equipment in their businesses.
Transformation review in the South African mining industry: barriers affecting compliance to the Mining Charter
Nthabiseng Violet Moraka, Ph.D., Lecturer: Strategic Management, Department of Business Management, University of South Africa, South Africa
Abstract. It is over a decade since the issue of the Mining Charter to the public and mining companies. The year 2015 marked an important review of the progress made in transforming the mining sector as set in the Mining Charter's scorecard. This article presents a critical review of the results of the government findings on the progress made in transforming the mining sector. Although transformation progress has been reported by some companies, this article shows that transformation in the mining sector is still a challenge. Through literature synthesis analysis, an insight is gained on compliance issues facing companies in the mining sector. This article makes an important contribution by reporting on the barriers affecting compliance to the Mining Charter namely; non stakeholder collaborations, availability of skills, negative spirit of transformation, education and broad legislatory framework. Recommendations are made to overcome these barriers.
Entrepreneurial self-efficacy (ESE) and small business performance: the mediating effect of entrepreneurial mindset and openness to experience
BrownhilderNgek Neneh, Ph.D., Senior Lecturer, Department of Business Management, University of the Free State, South Africa
Abstract. Small business performance is a key concern around the globe as small businesses play a vital role in fostering economic growth and development. Despite the increasing research on enhancing small business performance, most small businesses still fail within the first three years of operations. As such, unearthing the underlying aspects on how several factors affect small business performance continues to be an important research agenda. This study focused on examining the mediating effect of entrepreneurial mindset and openness to experience on the relationship between Entrepreneurial Self-efficacy (ESE) and small business performance. The empirical findings indicated that both entrepreneurial mindset and openness to experience fully mediated the ESE - performance relationship. These findings act as an enrichment of our current understanding of the ESE-performance relationship. The study culminates by providing both theoretical and practical implications for entrepreneurship theory and practice.
Corporate social responsibility evolution in South Africa
Md Humayun Kabir, Ph.D. Student, Graduate School of Business and Government Leadership, North-West University (Mafikeng Campus), South Africa
Abstract. Corporate social responsibility (CSR) has come to the forefront of every stakeholder's thinking. Particularly, the recent global financial crisis has led to a remarkable debate to the corporate sectors about their role and responsibility towards the community and the society at large. On the other hand, the contribution of business firms, government, regulatory bodies and other organizations to the society is important to a greater extent for addressing socio-economic problems of a country. Thus, CSR is an important issue and its involvement by them in society is imperative. Hence, this study aims to gain a deep intuitive knowledge of their influence on CSR adoption in South Africa. The study is literature based. The findings revel that much has been done in South Africa in terms of CSR regulations and development of CSR programmes; addressing the social needs through CSR involvement by the government and private sectors, and spending a substantial amount on Corporate Social Investment initiatives each year.
Product portfolio management for new product development
Mishelle Doorasamy, Department of Accounting, University of KwaZulu-Natal, South Africa
Abstract. The research hypothesis is that by adopting PPM best practices during NPD, companies can increase the success rate of new products. The aim of this article is to provide the reader with a comprehensive insight on the theories, empirical findings and models of Product Portfolio Management (PPM) during new product development (NPD). This article will allow for an in-depth theoretical approach on PPM and demonstrate to managers the importance of adopting PPM as business strategy during decision making regarding future investments. Recent studies reveal that the art of product development has not shown much improvement therefore the success rate of new products introduced into the market is poor. The objective of this article is investigate whether companies implement Product portfolio management, a business strategy during decision making processes regarding the development of new products. A survey was conducted on manufacturing companies in the greater Durban area. The results of the research shows that although the companies did implement product portfolio management in their NPD projects, more than 40% of NPD projects failed to meet their objectives. This finding indicates that the criteria used by management to select, and prioritize NPD projects was incorrect as it was not completely aligned to business strategy.
Service branding: the development of a typology of service brands at the corporate level
Hugo Skaalsvik, Harstad University College, Norway
Abstract. This paper shows and discusses a typology of service brands at the corporate level. The typology emerges from a combination of two constructs: ‘customer base' and ‘competitive environments'. The service brands are conceptualized as modes of maintenance, surveillance and dynamic changes, which are shown in a 2x2 matric. The service brand typology is discussed, and the paper explains that dynamic change is preferred in turbulent, competitive, complex and dynamic environments with a shifting and dynamic customer base. A set of implications is offered, i.e. theoretically that a high degree of customer and competitor focus is in alignment with the service brand conceptualized as dynamic change. The paper contributes to the extant knowledge of service branding by its discussion of a typology of service brands at the company brand level in service enterprises.
The role of local government to facilitate and spearhead sustainable tourism development
Nsizwazikhona Simon Chili, Durban University of Technology, South Africa
Abstract. The role and standard of tourism development for the society needs to be sustainable. The government at all levels has the obligation to ensuring that the plight of the poor is addressed and turned around through sustainable tourism development. This paper is conceptual and discusses tourism sustainable development while illuminating a significant role that a local government should play irrespective of difficulties that some governments face when trying to achieve intended objectives. As a result concerns from different circles have been raised about how effective governments have been in integrating sustainability principles and practices within tourism planning policies and processes in order for tourism achieve sustainable development. Sustainable development of tourism must follow three principles, namely: fairness principle, sustainability principles, and community principle, on which the sustainable development of the local government systems relies on to build and enhance positivity and prosperity to communities through tourism.
Internationalization drivers of small and medium-sized manufacturing enterprises in Ethiopia: the case of leather and leather products industry
Yehualashet Demeke, College of Business and Economics, Arsi University, Assela, Ethiopia
Abstract. Internationalization has been a topic of common interest among scholars in the field of international business since the emergence of globalization. But not much research work has been done to comprehend the process of firm internationalization in Ethiopia. This study aimed to unveil the most important factors driving internationalization process of Ethiopian SMEs operating in leather and leather products industry located in Addis Ababa. The small and medium sized enterprises (SMEs) sector in Ethiopia is a significant group within the economy in terms of firm numbers and total employment. Thus, their internationalization will have a significant impact on industrialization and economic development of Ethiopia. The internationalization phenomenon was examined in a more comprehensive manner than in many previous studies, through integrated theoretical lenses. Firm export propensity was the dependent variable and export driving factors were used as explanatory variables. Mixed research design approach through survey and semi-structured interviews and secondary sources were used to obtain the required data. A stratified random sampling technique was used to recruit the required respondents. A questionnaire was administered to 90(36 exporting and 54 non-exporting) SMEs in leather and leather products industry in Addis Ababa. Similarly, interviews were conducted with nine SMEs managers and owners. Analytical techniques of factor analysis and binary logistic regression analysis were used to make sense of the collected data and test hypotheses. The statistical result indicated that managerial factors, internal marketing factors and foreign government related factors, firm ownership and size are the most significant drivers of SMEs internationalization from Ethiopia. The study concluded that internal and external factors influence internationalization of Ethiopian firms in manufacturing industry. From the results and conclusions, the study recommended policy, research and managerial implications the implementation of which will make Ethiopian SMEs more competitive in international arena.
Security and privacy of personal health record, electronic medical record and health information
Cheng-Kun Wang, Graduate School of Business and Operations Management, Chang Jung Christian University, Tainan City, Taiwan
Abstract. Security and privacy are two crucial issues in the protection of health information. The purpose is to keep the medical privacy of confidential information about the patient. The successful implementation and application electronic medical record (EMR), electronic health record (EHR) and personal health record (PHR) prove to be a difficult task, due to a mixture of technical, organizational and political issues. By analyzing 13,960 citations of 410 articles published in SSCI (Social Science Citation Index) and SCI (Science Citation Index) journals about the privacy and security of health information from 2004 to 2013, we plotted virtual social networks between researchers. Our interpretation of result is that privacy and security of health information between 2009-2013 included at least 6 subfields: personal health records, HIPAA privacy rule, authentication, protecting health privacy, encryption and electronic health records. Electronic health information system designer must prevent unauthorized use and hacker attacks. Authentication and cryptographic key management will become the tools of choice for protecting privacy and security. We combine quantitative bibliometrics and qualitative literature reviews to find out the important articles about security and privacy for health information, and realize the relationship between important topics in this field. When the patients trust in health information network is secure, it would improve the implementation of PHR. The dimension of trust can be divided into trust of physicians and trust of patients. Future researches could adopt "trust" as an independent variable for health information research and to find the relationship between protection of "security and privacy" of PHR and "trust".
Transformation as an element of executive remuneration in South African state-owned enterprises
Frans Maloa, Department of Industrial and Organisational Psychology at the University of South Africa, South Africa
Abstract. Challenges with transformation in respect of executive remuneration are widely acknowledged. Two types of measures, black economic empowerment and the Employment Equity Act of 2003, have emerged as potential drivers of transformation. However, their impact on executive compensation remains unclear. Observers felt the policy was being used to only benefit an elite few. This article aims to describe and identify common practices on transformation in executive remuneration at South African state-owned enterprises. An eclectic approach is used to develop a broader theoretical framework within which a better understanding of executive remuneration and transformation as an element of executive remuneration in the context of South African SOEs could be achieved. The sample for the survey includes 13 key informants as representatives of South African state-owned enterprises. The findings reveal institutional and contextual impediments in the implementation of transformation in executive remuneration. The findings also shed light on what is happening at the operational level in the SOEs, which may not be available in most empirical studies on executive remuneration in South African SOEs. Recommendations are made on for interventions and proper implementation.
Employees' perceptions of safety control mechanisms and production cost at a mine
Mothemba Cecilia Mokoena, Department of Accountancy, Vaal University of Technology, Vanderbijlpark, South Africa
Abstract. The purpose of this study was to determine whether the requirements of safety legislation are observed and complied with by a single colliery in South Africa and its employees to ensure safety and maintain an accident-free working environment. From the literature, a framework including the following four main components was identified: (1) organizational adherence or compliance to safety legislation, (2) employees' compliance regarding the application of safety control mechanisms, (3) employees' attitude towards safety control, and (4) production cost's relation to safety control mechanisms. An analysis of organizational safety control mechanisms and production cost was conducted through the use of a structured questionnaire, completed by 151 participants. Descriptive statistics, exploratory factor analysis (EFA) and one-way analysis of variance (ANOVA) were utilized to analyze the perceptions of participants. The contribution of the study is that an enhanced safety control questionnaire was developed with a greater emphasis on production costs; the above-mentioned four-component framework was refined into nine managerial factors; and statistically significant differences between the perceptions of different classes of labor (departments) were revealed.
Small and medium enterprise development: do traditional marketing functions have a role to play?
Claudette Rabie, Department of Marketing and Retail Management, University of South Africa, South Africa
Abstract. A principle of the marketing concept is that to run a successful business venture, the business needs to identify and fulfil the needs, desires and ambitions of its consumers. This determination and fulfilment of consumer needs and wants is crucial for the success of a business. The literature has shown that small and medium enterprises (SMEs) play a pivotal role in the growth and development of a country, and it has repeatedly been emphasised that marketing, strategic positioning, and entrepreneurship are key factors in business survival and growth. The purpose of this article is to determine the marketing functions that business owners or entrepreneurs of South African SMEs consider important and to identify the business constraints they face. Data for this quantitative study was collected by distributing self-administered questionnaires to a sample of SME owners who had registered their businesses at an official state institution for SMEs. The study revealed that the respondents regarded marketing and related marketing functions as very important or critical for the success of their businesses. This finding supports existing marketing literature regarding the role and importance of marketing in SMEs.
An investigation into the impact of e-tolls in the Gauteng province of South Africa: an SME perspective
L.L. Manley, Department of Marketing and Retail Management, University of South Africa, South Africa
Abstract. While attitudes towards tolling/road user charges has over the last few years received much attention from researchers in a multitude of disciplines and geographic areas, limited research has investigated the attitudes and the impact of e-tolls towards SMEs within Gauteng, South Africa. Therefore, the aim of this paper was to describe SME owner's attitudes toward the implementation of the e-toll system and the perceived impact the system has on SME businesses within the Gauteng province of South Africa. In order to satisfy the objectives of the study, descriptive, quantitative research was undertaken by means of a self-administered questionnaire which was distributed to SME owners that reside within the Gauteng Province of South Africa where e-tolls have been implemented. Data collected was analysed by means of IBM SPSS Statistics V22, whereby frequency occurrence of items was identified. The main results stemming from the research indicate that 80% of SME owners have a very negative attitude towards the e-tolling system and that the system in itself has a negative impact on SME businesses within Gauteng. Given the small sample size, the results will give a general indication as to attitudes held by SME owners towards e-tolls and the impact it has on their businesses.
Earnings quality and gender diversity on German supervisory boards: an empirical analysis
Lena Panzer, Institute for Business Taxation, Chair for Business Administration, Helmut-Schmidt-University, Hamburg, Germany
Abstract. Since less than 20 percent of the seats on corporate boards in Germany are held by women, the German parliament passed a law recently that requires listed companies with employee representation on their supervisory boards to give 30 percent of the seats to women beginning in 2016. Based on findings in prior research on gender-based differences in a variety of decisions settings and the expansion of skills, experiences and perspectives by gender diversity, the authors hypothesize that firms with gender diversified boards will have higher quality of financial reporting. The empirical analysis covers the financial statements of 64 companies that were listed in DAX30, MDAX and SDAX from 2006 to 2011. In the analysis, two ex-post measures of earnings quality, the performance-matched discretionary accruals introduced by Kothari et al. (2005) and the modified Dechow/Dichev (2002) model as suggested in McNichols (2002), and two ex-ante measures of earnings management, Big4 auditor and financial leverage, are applied. The study shows that companies with gender diversified boards have lower absolute discretionary accruals. Additionally, the results indicate that firms with female head or deputy head of the supervisory board are following more conservative financial reporting rules and standards. Furthermore it can be shown, that the degree of external monitoring, measured by financial leverage, is higher for firms with female supervisory members. These findings suggest that the number and position of women at board-level have important implications for the quality of financial reporting.
Management of employee performance in the South African Public Service: the case of the National Department of Rural Development and Land Reform in the Western Cape
Clayton Henricks, Cape Peninsula University of Technology, South Africa
Abstract. This article assesses the challenges encountered in the application of the Employee Performance Management System (EPMS) in the National Department of Rural Development and Land Reform (DRDLR) in South Africa. The 1999 major restructuring of the South African public service was adopted in line with the New Public Management (NPM) initiatives, in terms of which all departments were guided by public service regulations to develop and implement their departmental performance management systems. Employee performance management provides an integrated framework for the managing of employee performance through continuous improvement and development. In an effort to make public agencies work, governments in various countries have attempted to introduce diverse appraisal tools that are capable of measuring employee performance effectively. In order to be able to draw results from the study, a qualitative approach was employed using mainly interviews and literature review as instruments for data collection. The literature review and findings from this study revealed gaps in the understanding of the employee performance resources allocated to apply the EPMS at the DRDLR, and insufficient compliance and commitment from staff during the performance cycle. Findings from this study can contribute towards improving the management and evaluation of employee performance.
Emerging entrepreneurs and the Creative Merchantry with reference to I Heart Market in Durban, South Africa
John Amolo, Graduate School of Business and Leadership, University of KwaZulu-Natal, South Africa
Abstract. The creation of opportunities and empowerment are some of the ideals that have been realised through entrepreneurial endeavours. Not every citizen has the resources or knowledge required to start their own venture and many fear failure upon starting their own business. This study examines the dynamics of entrepreneurship in creative industries and to gain a better understanding of entrepreneurship in general. Through a qualitative study, this article explores the I Heart emerging entrepreneurs in Durban, South Africa to research their entrepreneurial perceptions. A majority of respondents were identified as opportunity- based entrepreneurs who expressed the necessity of having social media for their business success. A majority of respondents expressed how creativity is enhanced by an enabling environment; implying the need for the creation of an environment where creativity is nurtured and sustained by policy makers. The respondents' unanimity on the lack of entrepreneurial guidelines, thereby indicating the calls for further study into the nature of creative support by policy makers to be accorded to emerging entrepreneurs needs complementary responses. The article concludes with recommendations and the possibility for further research on the sustainability of the businesses of emerging entrepreneurs.
Assessment of incoporation of customers' specific affordability needs in the Nigeria National Housing Fund (NHF) scheme
Chuka Uzoma Ifediora, Department of Marketing, Faculty of Business Administration, University of Nigeria, Nigeria
Abstract. The current study evaluated the extent of incorporation of customers' specific affordability needs in the Nigeria National Housing Fund (NHF) scheme. It ascertained the adequacy of the consideration given to the specific affordability needs of potential beneficiaries of the NHF scheme and determines the adequacy of the consideration given to the inputs from the intended beneficiaries of the NHF scheme. Descriptive and exploratory research designs were adopted for the study. Different offices of the Federal Mortgage Bank of Nigeria, namely the implementers of the NHF scheme, in Abuja, Port-Harcourt, Ibadan, Enugu, Lagos, as well as the 19 state/district offices in these zones were studied. The population of the study included 201 management staff and officers in these offices. Considering the size of the population and the nature of the investigation, a census was undertaken. Data for the study was collected through structured questionnaire. The formulated hypotheses were tested using analysis of variance (ANOVA), at 5% level of significance. Results of the hypotheses tests showed that; the consideration given to the specific affordability needs of the intended beneficiaries in the NHF affordability criteria is not adequate (Fcal = 73.064, P = 0.000 < 0.05). And, the consideration given to the inputs from the intended beneficiaries of the NHF scheme is not adequate (Fcal = 116.009, P = 0.000 < 0.05). In line with findings of this study, it is concluded that little attention is paid to the specific affordability needs of the target beneficiaries of the NHF scheme. Following the findings and study conclusion, it is proposed that the implementation of the Need-based Housing Affordability Model developed in this study, will aid the successful planning and execution of housing affordability strategies, thus boosting the performance of housing development programs.
Perceptions and attitudes of the community towards tourism impacts and sustainable development. The case study of eMpophomeni in Pietermaritzburg (South Africa)
Nsizwazikhona Simon Chili, Durban University of Technology, South Africa
Abstract. The study examined perceptions and attitudes of the community towards the impact of tourism and its sustainability as it is perceived as an alternativedevelopmental philosophy that can serve as a panacea to alleviate poverty from communities. Social exchange theory was used to achieve the aforementioned. Since the role of residents is crucial within the sustainability paradigm, it is therefore important that their perceptions and attitudes on tourism impact towards sustainable development are understood and assessed. The study investigates and examines a range of variables involved in determining township community attitudes and perceptions towards tourism impact on development and sustainability and as a result social exchange theory was used. Literature was comprehensively reviewed on resident attitudes and perceptions towards tourism impact and sustainable development and social exchange theory was used in determining the above regarding variables involved. The findings revealed that negative perceptions of residents on tourism impacts in the township of eMpophomeni offset positive outcomes.The study also revealed that long term-planning as a component of sustainable tourism, full community participation and environmental sustainability within tourism are inextricably linked and related to support for tourism and to the positive impacts of tourism.
A support framework for survivalist entrepreneurs - free state province case study
Kgantsho Adeline Ranyane, University of the Free State, Business School, Bloemfontein, South Africa
Abstract. The White Paper on the Development and Promotion of SMMEs in South Africa emphasises the existence of the survivalist entrepreneurs as a segment within the South African SMMEs, as well as their urgent need for assistance in order to become viable business entities. However, existing assistance has been channelled towards the profit-orientated SMMEs, thus disregarding the survivalist entrepreneurs who depend on their business for survival. With increasing unemployment and poverty rates, there exists a growth in numbers of survivalist businesses. The study highlights the impact of Government policy particularly apartheid, recognized as part of history, as well as black economic empowernment, which is currently being practiced, on the formation of the survivalist businesses. It also emphasizes how the declining socio-economic conditions (particularly poverty and unemployment) are linked to the formation of survivalist businesses. Using a non-probability method of sampling, 100 survivalist entrepreneurs from the five districts of the Free State province of South Africa, were studied in order to understand the obstacles they experienced in their businesses. Motivational factors into commencing these enterprises were also investigated. A conceptual framework was developed from the empirical data. In concluding the study, the empirical and reviewed data were utilized to formulate a support framework aimed at assisting the survivalist businesses to become viable businesses entities.
The effect of mentoring on the success of mentees: challenges and imperatives
Edward Rankhumise, Faculty of Management Sciences, Tshwane University of Technology, South Africa
Abstract. This paper presents an overview of mentoring with specific reference to mentors' experience in the quest to develop mentees in their careers. The purpose of this paper was to explore the factors that are essential for effective mentoring to happen and also reflect on impediments factors. The results show that success of the mentees depends on the effective implementation of mentoring. A qualitative methodological approach was used for the study and data were collected by means of semi-structured interviews among mentors in the selected public hospitals. The results indicate that mentors are willing and able to mentor mentees despite the fact that it is taking much of their time. It emerged further that the results indicate that mentoring is imperative to fulfil the developmetial needs of the mentees. Mentors indicated that for mentoring to be successful, it is important for top management to show commitment on mentorship. It can be concluded that what matters most in the process of mentoring is the commitment from top management and the experience of mentors.
Branch managers' perceptions regarding the performance management system at a state-owned company
Thapedi Matjila, Department of People Management and Development, Tshwane University of Technology, South Africa
Abstract. The purpose of this study was to explore how branch managers perceived the performance management system (PMS) at a state-owned company (SOC). A qualitative, exploratory case study approach using semi-structured interviews was adopted for the study. The sample comprised eighty-one (N=81) branch managers, who were selected using the purposive sampling technique. Theoretical saturation was reached after the twentieth interview, when no new information was emerging from the interviews. Primary data was collected using face-to-face interviews and secondary data was collected from the SOC's annual report. Combing the two data collection methods assisted in triangulating the findings of the study. In the data analysis phase, inductive qualitative content analysis was used to analyse the interview transcripts. The findings revealed concerns that although a performance committee was appointed to implement and effectively manage the PMS at the SOC; it did not fully comply with the equal distribution of PMS training between different branches of the SOC. The study finding of lack of support and a failure to engage branches during performance contracting and evaluation led to organisational citizenship behaviour and teamwork.
Customer satisfaction: a key to survival for SMEs?
Letitia Fourie, Department of Marketing and Retail Management, University of South Africa, South Africa
Abstract. Customers are the lifeblood of any organisation and feedback on their satisfaction levels is important not only to big corporations, but also to small businesses. Knowledge of customer satisfaction can help to better identify and satisfy customer needs and can prevent small businesses from spending a considerable amount of money on marketing to acquire new customers. This study investigates the customer satisfaction measuring practices of South African SMEs. The study aims to determine if South African SMEs collect data on customer satisfaction levels as well as how they go about to do this. A survey among South African SME owners found that customer satisfaction was of great importance to them and that the majority believed that their businesses were customer focused and customer friendly. Based on customer feedback, small-business owners believed their customers were satisfied with their businesses. The research also indicated that the majority of small-business owners collected customer satisfaction feedback verbally on a monthly basis. From this study it is clear that SMEs understand that collecting customer satisfaction feedback is important but that they do not necessarily have a formal measurement in place.
Challenges faced by small automotive businesses in Tshwane: the case study of back yard mechanics in Soshanguve, South Africa
Sambo Wise, Department of Business Management, University of South Africa, South Africa
Abstract. This paper contributes to the challenges faced by auto-motive Small business enterprises operating as back-yard mechanics in Tshwane. Small business enterprise is seen as an engine for economic growth and development in South Africa. They serve as a catalyst of job creation and alleviation of poverty in developing countries. SMMEs contribute 7% of the total GDP in South African. Even in emerging economies like Brazil, Russia, India, China and South Africa (BRICS), SMMEs have been identified as a potential sector for economies of scale to create employment opportunities. The paper, seeks to provide the challenges experienced by small automotive businesses in Tshwane. The objective of this paper is to identify challenges that lead to the high failure rate of SMMEs in the automotive sector within Tshwane. The paper used a qualitative approach. 16 respondents were interviewed using a semi-structured questionnaire. The findings revealed that lack of funding, space, proper equipment's informality, working from hand to mouth are among the challenges that back yard mechanics are facing in Soshanguve.
Barriers to viability in small businesses in the footwear and textile industry of Tshwane, South Africa
Zeleke Worku, Tshwane University of Technology, Business School, South Africa
Abstract. The South African Small Enterprises Development Agency (SEDA) provides financial and non-financial assistance to Small, Micro and Medium-sized Enterprises (SMMEs) in various economic sectors as a means of reducing the failure rate among SMMEs. The study was based on the 5-yearlong study (2007 to 2012) of 512 Small, Micro and Medium-sized Enterprises (SMMEs) that conduct business in the Tshwane region of South Africa conducted by Marivate (2014). In accordance with the definition of viability provided by Blank (2013), the study defines viable businesses as businesses that could operate without a loss for at least 3 years after start-up. The sample consisted of 187 businesses that utilized financial services provided by the South African Government and 325 businesses that utilized non-financial services. The results showed that long-term viability in the businesses that were selected for the study was significantly influenced by utilization of financial services, degree of entrepreneurial skills, and the ability to order large volumes of stock in bulk, in a decreasing order of strength. Utilization of financial services was significantly influenced by the degree of entrepreneurial skills, the ability to order large volumes of stock in bulk, and access to training opportunities on entrepreneurial or vocational skills. Utilization of non-financial services was significantly influenced by the age of business, past history of bankruptcy, and the practice of selling on credit.
Enhancing trust in online business relationships of South Africa: A web interface signalling perspective
Mercy Mpinganjira, Department of Marketing Management, University of Johannesburg, South Africa
Abstract. Technology mediation in online shopping result in information asymmetries which may impede customers' ability to assess products and make well informed purchase decisions. Using signaling theory, this study proposes and tests a model on the influence of a stores' website on customers' ongoing trust in online retail stores and repurchase intentions. Data was collected from a sample of 201 online shoppers from Gauteng, South Africa. The findings show that website informativeness, retailer related website interaction, customer related website interaction and website security are important factors that help influence customers trust in online stores and that trust in turn exert significant influence on repurchase intentions. Website informativeness and website security were also found to have a significant direct influence on customer repurchase intentions although this influence is partially mediated by customers' levels of trust in an online store. The findings support the notion that the online store environment is an important source of signals to consumers and that these signals have influence on trust in an online store. The findings point to the need for managers of online stores to pay attention to levels of customer trust in their stores as trust has positive influence on customers' repurchase intentions. In working on building trust, managers need to among other factors, examine their websites for levels of informativeness, and security. They also need to ensure that their online stores are associated with high levels of human interaction.
Selected factors as determinants in the purchase choice of sporting goods
Pragashni Pillai, University of KwaZulu-Natal, South Africa
Abstract. In order for marketers in the growing sporting goods market to compete, they need to understand their customers' behaviour patterns. This article aims to determine the significance that a select group of factors play in influencing customer purchase choices of sporting goods. A semi-structured questionnaire was administered to a convenience-based, non-probability sample of 90 individuals at a health club in Pietermaritzburg, South Africa. Through the adoption of a five-point Likert scale, individual responses were obtained on the importance that factors such as brand name, quality, price, athlete or sport's team, the brand sponsors, and country of manufacture play in influencing the purchase choice of sporting goods. The results indicate that quality is regarded as being the key factor that influences the purchase choice of sporting goods. Forty-six percent of the respondents placed no significant value on ‘brand name and price as influencers of their purchase choice. However, although the study results cannot be generalised beyond the sample used, the conclusion from the results suggests that due to quality being a predominant influence on purchase choices of sporting goods, marketers need to focus more on this variable in order to take advantage of the numerous opportunities in the growing sporting goods market.
The strategic significance of communication skills of SMMEs: a South African perspective
Germinah Evelyn Chiloane-Tsoka, Department of Business Management, University of South Africa, South Africa
Abstract. This contribution intends to explore the strategic plan which requires proper communication in order for it to be internalized and subsequently implemented. This means that strategy has to be affably communicated in order for it to find resonance in those affected by it. The communication of this strategy has to reach various stakeholders in a manner that does not compromise its original intention. In order for this to be realized communication skills of those who are championing it have to be up to par. Naturally, this could always be possible for big corporations as they may possess the financial muscles to co-opt their communication teams into their strategy deliberations. Unfortunately, this luxury is not always the core strength of the not-so-big organizations such as SMMEs. This is due to the fact that most SMMEs operate with relatively very limited resources. Literature suggests that in order for SMMEs to achieve their strategic objectives some form of small sacrifices and investments in communication skills ought to be made. This will also form part of their human capital development. This paper aims to heighten the strategic significance of communication skills on SMMEs. The paper thus entails a conceptual framework of communication skills of strategy deliberations by SMMEs in South Africa. The objective of this paper is to explain how communication skills are critical in enhancing the strategic management processes of SMMEs, particularly in South Africa. Desktop research was compiled from secondary data gathered from books, articles, briefs and Government and other reports. The paper concludes with implications for future empirical studies which advocate for communication skills for SMMEs.
Dynamics of short-term operations scheduling in supply chain distribution centres
Fani Nicholas Jojozi, Rand Merchant Bank, Division of FirstRand Bank Limited, Johannesburg, South Africa
Abstract. A warehouse or distribution centre has a key role to play in the success of modern supply chains in the highly competitive business environment as a commercial building for the buffering, pre-merchandising and temporarily storing of goods. In as much as it is a virtual warehouse, cross docking for transportation costs minimisation looks at the transit or shipment of inbound goods to their prescribed destination within a period of less than 24 hours with no intention of keeping any inventory. One of the motivating factors that drive warehouses and distribution centres into being more efficient is that the customer demands delivery of the requested shipments on time, in the right quantity, in the right place and at an affordable price. This study analyses the dynamics of short-term scheduling in systematic supply chain distribution centres. This study further examines the extent of information sharing among workstations and supply chain partners within the inbound and outbound scheduling perspective. The study used the descriptive statistics as well as factor analysis to analyse data on 104 respondents in proportion to their managerial size. The targeted resondents range from the top management to lower management and operational/genaral worker in the warehouses and distribution centres. Respondents were both male and female with a level of experience ranging from less than one year to over ten years. Three major players in the distribution industry as third party logistics were considered as participants within the frozen goods sector. The findings of this study indicate that the phenomenon of short-term scheduling in this study assists to model the efficient scheduling of trucks, to absorb challenges encountered from inbound traffic through to outbound, and to mitigate any lack of information sharing within and among supply chain partners. The main managerial implications of this study are that it provides an understanding of the bottlenecks that normally hinder the smooth flow of inbound and outbound operations. The role of short-term scheduling might offer improvements on the operations processes that are faced with the challenges of bottlenecks.
Marketing management in the age of globalization: exploring the strategic role of National Policy in Zimbabwe
Africa Makasi, Ph.D., M.Sc., Lecturer, Department of Technopreneurship. Harare Institute of Technology, Harare, Zimbabwe
Abstract. Extant literature on trade liberalization tends to idolize globalization rather than vilifying it. Debates on globalization and how it continues to affect the world economy; particularly developing countries, continues to provoke more and more controversy. This paper rethinks the role of marketing strategy and national policies in safeguarding the future of the clothing and textiles industry in Zimbabwe. The study collected data from 127 cluster sampled clothing and textiles companies. Results from a Categorical Critical Component Analysis using SPSS show the need for major policy interventions in order to assist marketing strategy in the face of globalization. The study provides an important research contribution through empirically linking three distinct concepts; globalization, marketing strategy and national policy from three diverse streams of literature and extend the boundaries of current knowledge on contemporary marketing management challenges and related solutions.
Budgetary allocation to agriculture in South Africa: an empirical review from 1994 to 2014
Isaac B. Oluwatayo, Department of Agricultural Economics and Animal Production, School of Agricultural Economics and Animal Production, University of Limpopo, South Africa
Abstract. The agricultural sector is no doubt one of the most important sector in sub-Saharan considering its prime place as a livelihood source and employer of the vast majority of residents, especially those in the rural areas. In South Africa, for instance, agriculture plays a very significant role despite its declining contributions to the Gross Domestic Product (GDP) for some years now. This dwindling share of agriculture in the country's GDP could be attributed to a number of factors ranging from changing government policies, declining budgetary allocation to the sector, ageing infrastructure and population growth to mention just a few. It is again this backdrop that a review of the effect of this downward slide in budgetary allocation on the development of the country is considered important.