The Southern African Business Review serves as a vehicle for the publication and dissemination of research in the fields of the economic and management sciences. Research contributions should conform to high standards ofscientific scholarly research inquiry. The following should at least be addressed: purpose/objective of the article, sound conceptualisation/theoretical foundation, statement of the research problem or hypothesis, clear research methodology, analysis/discussion of research findings, policy recommendation or implications for industry and conclusion.


The library contains vol. 13(2009) no.2-23(2019) no.1

Recent Submissions

  • The impact of black economic empowerment (BEE) on South African businesses: Focusing on ten dimensions of business performance

    Krüger, LP (College of Economic and Management Sciences (UNISA), 2013-02-15)
    South African businesses need to adopt and comply with certain legislative measures aimed at black economic empowerment (BEE). BEE was introduced by the current ANC government in a bid to overcome the economic legacy of apartheid and to broaden participation in the economy, especially by those perceived to have been previously excluded or denied access. The Department of Trade and Industry (the dti) has been tasked with overseeing the implementation of BEE, and for this purpose has created a special BEE unit to regulate compliance and administer BEE scorecards. In an empirical survey, conducted in March/April of 2010 among the top local South African businesses ranging from small, mediumto large multinational companies, the perceptions, thoughts and anticipations of 500 individual managers on the impact of BEE onten selected dimensions of business performance were sought. Alarmingly, most of the respondents disagreed with the notion that BEE compliance would improve the performance of the companies they worked for, specifically with regard to overall and international competitiveness; service excellence and client satisfaction; quality; productivity; entrepreneurial spirit and innovation; production performance; human development; staff morale, business ethics and transparency; sales and access to markets; and financial performance. These sentiments were expressed despite the fact that the majority of respondents indicated that they as individuals could  stand to benefit if the companies they were employed in becameBEE-compliant.
  • Black economic empowerment progress in the advertising industry in Cape Town: Challenges and benefits

    RG Duffett; IC Van der Heever; D Bell (College of Economic and Management Sciences, 2012-05-11)
    Black economic empowerment (BEE) aims to enable black peoplein South Africa, as legislatively classified, to make a noteworthycontribution to the local economy by irreversibly altering the racialprofile of ownership, management echelons and all employmentlevels of existing and new organisations (SA dti 2004: 4–5). Thetransformation process in South Africa has been a lengthy andcomplex one, with the government gradually enacting enablinglegislation. The advertising industry has been criticised for its slowempowerment advancement, which led to two parliamentary hearingsin the early 2000s to investigate allegations of racism and poortransformation progress. The Association for Communication andAdvertising (ACA) has been the main driving force of transformationwithin the South African advertising industry, but there have beenfew studies that have effectively investigated transformation and BEEprogress within this industry over recent years. Therefore, the mainobjective of this study was to explore progress made by advertisingagencies towards transformation in Cape Town, as well as thechallenges and benefits that result from implementing BEE measures.The aforementioned was thoroughly examined by utilising a multiplecase study approach and by interviewing the top 12 traditional fullserviceadvertising agencies in Cape Town.
  • The relationship between a black economic empowerment score and shareholder returns in Johannesburg Stock Exchange-listed companies

    Mehta, U; Ward, M (College of Economic and Management Sciences (UNISA), 2017-04-11)
    One of the major initiatives to redress the social and economic injustices of apartheid in South Africa is the black economic empowerment (BEE) legislative framework currently enacted by government. One of the core tenets of BEE is to facilitate the inclusion of previously disadvantaged blacks as shareholders of companies, thereby providing them with a stake in the economy. Since these new shareholders lack the means to acquire shares, existing shareholders devise various mechanisms which, in essence, bestow scrip on the newcomers, and simultaneously open up opportunities for BEE-compliant companies to benefit. Studies into the impact of BEE on shareholders have delivered conflicting findings, with some showing significant benefits to existing shareholders while others contradict this. The present study examines the association between a company’s BEE score/rating and shareholder returns, using an event study methodology and a buy-and-hold portfolio analysis to understand both the short- and long-term effects of a company’s BEE score. The authors observed a positive association between a change in BEE score and abnormal returns in the short term. In the longer term, portfolios which were comprised of companies with better BEE scores generated lower returns than those with worse BEE scores – a surprising phenomenon which may be attributable to the high cost of BEE compliance. Theseresults add weight to the existing body of literature which questions the efficacy of BEE.Keywords: abnormal returns, BEE, black economic empowerment, event study, buy and hold
  • Board diversity and sustainability performance

    Oosthuizen, A; Lahner, S (College of Economic and Management Sciences (UNISA), 2016-04-20)
    The purpose to this study was to describe and explore the difference in the board composition and characteristics of sustainability performing companies compared with other companies in terms of gender, ethnicity, affiliation and, uniquely, the inclusion of directors from a non-business background.This exploratory study used a cross-sectional design in the form of a quantitative comparative analysis, and a longitudinal design in the form of a trend analysis to compare the differences in board composition between a sample of sustainability performing companies and a sample of other companies listed on the FTSE/JSE All Share Index between 2004 and 2010. Inclusion on the Social Responsibility Investment (SRI) Index was used as a proxy for sustainability performance.The study provided support that director background as a board attribute may be linked to overall sustainability performance. It further provided insight into who board members should be, namely non-executive directors with non-business backgrounds.The findings of this study suggest that the nomination committees of companies wanting to improve sustainability performance should consider the recruitment and appointment of non-executive directors from non-business backgrounds on to their boards. The study provides grounds for further empirical studies on the causal relationship between board compositions and sustainability performance.Keywords: sustainability, sustainability performance, boards of directors, board diversity, corporate governance, SRI index, director background, King Report, integrative model of board performance, corporate social responsibility
  • The Ethical Awareness of the Leadership of South African Business Schools: Do they set the Tone?

    Louw, T (College of Economic and Management Sciences (UNISA), 2015-09-07)
    This paper explores the ethical awareness of the leadership of South African business schools. A questionnaire was distributed electronically to the top leadership of these business schools. The biographical characteristics of respondents were analysed to develop an ethical awareness score for each respondent. This score was used to determine whether respondents’ ethical awareness was above average and whether ethical awareness was affected by level of qualification or teaching experience. The results indicate that the leadership of South African business schools seem not to be sufficiently ethically aware to ensure that their business schools contribute to improved business ethics education and ethical business practices.Keywords: Business Ethics, Ethical Awareness, Business Schools, MBA
  • Three snapshots of business ethics education at South African business schools: Sharp or still blurred?

    Louw, T.; Wessels, J.S. (College of Economic and Management Sciences (UNISA), 2016-04-20)
    This article reports on a study comparing three recordings (snapshots) of the provision of business ethics education in MBA curricula at South African business schools. The purpose of the study was to determine whether the occurrence of business ethics education in South African MBA programmes increased between 2003 and 2011 and between 2011 and 2016. A review of the relevant scholarly literature has shown that, although business education can be included in MBA curricula through its integration in the various modules of the programme, or through dedicated modules for business ethics, both these ways of inclusion can be regarded as necessary conditions for meaningful inclusion. This study focused only on the inclusion of dedicated business ethics modules. A  directed content analysis was done of reports of the Council on HigherEducation as well as MBA and MBL curricula documents of business schools. The comparison of the three snapshots revealed a decline between 2003 and 2011, as well as a further decline between 2011 and 2016 in the number of MBA programmes with a meaningful inclusion of business ethics in their curricula. The results of this study have confi rmed that there is cause for concern about the quality of the MBA.Key words: business ethics education, business schools, Master of Business Administration, behavioural moulding, business leaders, unethical behaviour
  • Customer satisfaction and complaint behaviour: The case of small custom-made clothing businesses

    Makopo, MM; de Klerk, HM; Donoghue, S (College of Economic and Management Sciences (UNISA), 2016-04-20)
    Small and medium enterprises are increasingly considered as playing an important role in the economy of many countries, including South Africa. Unfortunately, home-based businesses in particular, such as most of the custom-made clothing businesses, are exhibiting high failure rates. The purpose of this study was to explore female customers’ satisfaction/ dissatisfaction with the quality of custom-made clothes, the accompanying emotions resulting from the dissatisfaction and their coping strategies in the form of complaint behaviour. A survey-based research design was followed. The sample consisted of 209 females older than 18 years, residing in Tshwane, South Africa, who had had custom-made clothes made by small urban-based custom-made clothing businesses during the previous 12 months. Customers in this study had high expectations for most performance features of the custom-made garments, especially the sensory and emotional performance features, with which they were ultimately not as satisfi ed as they had expected to be. Most of them blamed the business for the dissatisfaction. They did, however, not contact the business to complain but rather told others about the experience and decided no longer to support the business. They also experienced high levels of negative emotions such as disappointment, frustration and sadness. The results have implications for small custommade clothing businesses.Keywords: complaint behaviour, small businesses, custom-made clothing, dissatisfaction, emotions
  • Relationship intention and satisfaction as predictors of wholesale and retail customers’ loyalty towards their training providers

    Pelser, C; Mostert, PG (College of Economic and Management Sciences (UNISA), 2016-04-20)
    It is not surprising that service providers are increasingly attempting to establish customer loyalty as competition intensifi es in service industries. Building long term relationships and satisfying customer expectations could be an effective strategy to follow according to research that suggests strong relationships between customer relationships, customer satisfaction and customer loyalty. However, some researchers suggest that service providers should direct their marketing efforts only towards customers who have relationship intentions. It is thus essential for service providers to consider customers’ relationship intentions and satisfaction when drafting strategies aimed at building customer loyalty. The purpose of this study was to determine the extent to which relationship intention and satisfaction predict customer loyalty within the wholesale and retail training sectors. Data were gathered from 185 wholesale and retail skills development decision-makers located across South Africa, who were involved in the selection of their organisations’ training providers. Using hierarchical multiple regression analysis, the findings indicate that relationship intention and satisfaction significantly predict customer loyalty towards wholesale and retail training providers. Wholesale and retail training providers thus need to understand that establishing customer loyalty depends on their ability to develop strong relationships with customers who are receptive to relationship marketing efforts, and to ensure that these customers’ needs are met.Keywords: relationship marketing, long-term relationships, relationship intention, customer satisfaction, customer loyalty, wholesale and retail training industry
  • The relationship between absenteeism and employer-sponsored child care

    Anderson, B; Geldenhuys, DJ (College of Economic and Management Sciences (UNISA), 2013-02-15)
    Given the high loss of revenue due to absenteeism, exploring differentways of managing absenteeism in South African companies, such asfamily-friendly practices, has become important. Establishing onsiteemployer-sponsored child-care facilities is an example of suchpractices.4The purpose of this article is, firstly, to report on exploratory researchthat was done to examine the relationship between absenteeism andon-site employer-sponsored child care. The following dimensionsof absenteeism were examined over a period of one year: absencefrequency, absence severity, attitudinal absence and medicalabsence. The results of two companies, one with a facility and onewithout a facility, were then compared in order to establish therelationship between absenteeism and an on-site facility. Secondly,this article also reports on the relationship between demographicvariables and absenteeism.5The results indicate a significant negative relationship between onsiteemployer-sponsored child care and absenteeism. Regardingthe influence of demographical variables, significant differenceswere found with respect to absenteeism-based marital status andage, while no significant difference was found with respect toabsenteeism based on gender and race.6This article makes a specific contribution to studies on the useof on-site employer-sponsored child-care facilities for managingabsenteeism, specifically in the South African context, and also sheds new light on the influence of demographical variables onabsenteeism.
  • Advances in the corporate governance practices of Johannesburg Stock Exchange companies

    Mans-Kemp, N; Erasmus, P; Viviers, S (College of Economic and Management Sciences (UNISA), 2016-04-20)
    Since the 20th century, corporate governance mechanisms have been developed globally to curb the negative effects of the agency problem. South Africa was a pioneer with the publication of the first King Report on corporate governance in 1994. Given the paucity of research on corporate governance in the country, the researchers set out to investigate the corporate governance practices of 230 companies listed on the Johannesburg Stock Exchange over the period 2002 to 2010. Annual corporate governance scores were compiled by means of content analysis of the sample companies’ annual reports. The empirical findings revealed an increasing compliance trend towards 2010. Although the sample companies tended to improve the disclosure of their corporate governance practices over time, their practices were not per se acceptable (where acceptability implies meeting the King II recommendations). Inexperienced directors and managers might benefit from more training to enhance their understanding of the application of corporate governance principles.Keywords: corporate governance, King II Report, South Africa, compliance, disclosure
  • Mxit advertising’s influence on cognitive attitudes amongst Millennials in the Western Cape

    Duffett, RG (College of Economic and Management Sciences (UNISA), 2016-04-20)
    The social media have grown at an exponential rate in recent years, especially amongst the youth (known as Millennials) in South Africa, who access social media primarily via mobile devices; these have served as an additional catalyst to fuel this growth. The rapid advancement of social media is also attributed to the Millennials’ desires for social interaction connectedness, information, entertainment and convenience. Millennials portray a difficult market to reach with advertising due to the large fragmentation of media, diverse range of interests and demographical differences, but this lucrative market cannot be ignored owing to their huge purchasing power. Mxit is a popular social medium in South Africa and provides numerous advertising opportunities for organisations and their brands. The purpose of this study was to examine Millennials’ cognitive attitudes towards advertising on Mxit, and assess the influence of certain usage and demographic factors. The research surveyed 1858 young adults in the Western Cape who were between the ages of 18 and 30 years. Millennials maintained favourable cognitive responses towards Mxit advertising. All of the usage elements and a demographic factor, gender, were also found to have a signifi cant influence. The results provide both academia and organisations with fresh insights and a greater understanding of social network advertising.Keywords: social media, social network sites, Mxit advertising, Millennials, cognitive attitudes, hierarchy-of-effects model, awareness, knowledge
  • Personality dimensions and service failure severity: A cross-sectional study in the cellular industry

    Kruger, L (College of Economic and Management Sciences (UNISA), 2016-04-20)
    Service providers base service recovery efforts to retain consumers on service failure severity. A good understanding of possible effects on service failure severity is therefore necessary, and so this study examined the effects of personality dimensions on service failure severity. A hierarchical regression analysis was performed on data collected from 564 respondents through convenience sampling. The results indicated significant effects of Extraversion and Agreeableness on perceived service failure severity. In terms of theory, this study extends the influence of the trait theory of personality to service failure research. Furthermore, practical recommendations for cell phone network providers’ service recovery strategies include combining restorative and apologetic strategies.Keywords: service failure severity, personality dimensions, age, service failure, service recovery strategies, cell phone network provider
  • A new paradigm of knowledge management: Crowdsourcing as emergent research and development

    Callaghan, CW (College of Economic and Management Sciences (UNISA), 2016-04-20)
    Drawing from knowledge management theory, this paper argues that the knowledge aggregation problem poses a fundamental constraint to knowledge creation and innovation, and offers a potential solution to this problem. Specific consequences of innovation failure include the failure of research and development to deliver new medicines to address threats such as widespread and increasing antibiotic resistance, the rise of airborne multidrug-resistant or totally drug-resistant tuberculosis, as well as a lack of new drugs to deal with emerging threats such as Ebola. Persistent constraints to knowledge creation exist in the form of market failure, or the failure of profit-seeking models of innovation to internalise the positive externalities associated with innovations, as well as academic failure, or the failure of academic research to provide much needed innovations to address societal problems. However, a lack of theory exists as to how to transcend these constraints to knowledge aggregation. This paper presents a probabilistic theoretical framework of innovation, suggesting that the ‘wisdom of the crowd’, or emergent properties of problem-solving, may emerge as a function of scale when crowdsourcing principles are applied to research and development. It is argued in this paper that the consequences of a lack of knowledge of innovation failure are already upon us, and that a radical new approach to knowledge management and innovation is needed.Keywords: probabilistic innovation, knowledge management, innovation, crowdsourcing, crowdsourced R&D
  • The influencing role of social capital in the formation of entrepreneurial intention

    Malebana, MJ (College of Economic and Management Sciences (UNISA), 2016-04-20)
    This paper investigated the relationship between social capital and entrepreneurial intention using the theory of planned behaviour (TPB). The study was carried out by means of a cross-sectional survey and included 329 final-year commerce students at a rural university in the Limpopo province. A structured questionnaire was used to collect the data. The results show that social capital is significantly related to entrepreneurial intention, the attitude towards becoming an entrepreneur and perceived behavioural control. The findings indicate that the TPB is a valuable model for understanding the relationship between social capital and entrepreneurial intention. The results indicate that individuals are more likely to form intentions to start a business when they think that their decision to do so would be approved of by those close to them, when entrepreneurial activity is positively valued in the society, when they know other people who are entrepreneurs and successful entrepreneurs, and believe that they would be supported by those close to them when starting a business. This study contributes to the body of knowledge by shedding light on the role of social capital in the formation of entrepreneurial intention in a South African context.Keywords: social valuation of entrepreneurship, social support, entrepreneurial role models, rural entrepreneurship development, Limpopo, South Africa
  • Inflation dynamics in a dollarised economy: The case of Zimbabwe

    Kavila, W; Le Roux, P (College of Economic and Management Sciences (UNISA), 2016-04-20)
    This paper explores the dynamics of inflation in the dollarised Zimbabwean economy using the autoregressive distributed lag (ARDL) model with monthly data from 2009:1 to 2012:12. The main determinants of inflation were found to be the US dollar/South African rand exchange rate, international oil prices, lagged Zimbabwean inflation rate and South African inflation rate. During the local currency era, inflation dynamics in Zimbabwe were explained by excess growth in money supply, changes in import and administered prices, unit labour costs and output (Chhibber, Cottani, Firuzabadi & Walton 1989). According to Makochekanwa (2007), hyperinflation during the same era was attributed to excess money supply growth, lagged infl ation and political factors. Coorey, Clausen, Funke, Munoz & Ould-Abdallah (2007) affirmed these findings by identifying excess money supply growth as a source of high inflation in Zimbabwe during the local currency era. In essence, the findings of this study point to a shift in infl ation dynamics in Zimbabwe. This shift in inflation dynamics means that policies, which were used to respond to both internal and external shocks that have an impact on price formation, might not be applicable in a dollarised economy.Keywords: inflation, dollarisation, autoregressive distributed lag model
  • Share price reaction to earnings announcement on the JSE-ALtX: A test for market efficiency

    Mlonzi, VF; Kruger, J; Nthoesane, MG (College of Economic and Management Sciences (UNISA), 2013-02-15)
    Management has a duty to inform both shareholders and investorsabout the state of health of a firm. Earnings announcements providea yardstick that can be utilised by the market to assess the wealth andprofitability of a firm. The purpose of the study was to investigatewhether there are any significant abnormal returns around the publicannouncement of earnings and to establish whether the efficientcapital market hypothesis applies to the small ALtX market.16The study focused on all the companies listed on the JSE-ALtX thatannounced annual earnings between 1 January and 31 December2009. The method used for calculating the expected returns was theCapital Asset Pricing Model (CAPM).17Empirical evidence demonstrates that there is substantial negativeshare price reaction to earnings announcements on the smallALtX stock market. The ALtX also shows the weak form of marketefficiency. The study concluded that during a recessionary period,shareholders’ wealth is eroded in the small ALtX market; however,the weak form of market efficiency provides an opportunity forentrepreneurs and investors to exploit the market for profits whenthe market is performing well.
  • The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders

    Jooste, C; Fourie, B (College of Economic and Management Sciences (UNISA), 2012-05-11)
    A review of the literature reveals that strategy implementation isan important component of the strategic management process.Research indicates that the ability to implement a strategy is viewedas considerably more important than strategy formulation, andthat strategy implementation, rather than strategy formulation, isthe key to superior organisational performance. However, the highfailure rate of strategy implementation efforts is well documented,and many barriers to effective strategy implementation exist. A lackof leadership, and specifically strategic leadership, at the top ofthe organisation has been identified as one of the major barriersto effective strategy implementation. In turn, strategic leadership isalso viewed as a key driver to effective strategy implementation.In the light of the identified problem, the primary objective of thisstudy was to investigate the perceived role of strategic leadershipin strategy implementation in South African organisations. Theconclusion is that strategic leadership positively contributes toeffective strategy implementation in South African organisations.
  • For banks, fair value adjustments do infl uence dividend policy

    de Jager, P (College of Economic and Management Sciences (UNISA), 2015-10-28)
    Most researchers who investigate the interplay between fair value accounting (FVA) and the fi nancial  crisis look at the time period during the crisis. This paper investigates a potential role for FVA prior to the crisis: If FVA led to increased accounting profi ts with the recognition of transitory gains through profi t and loss during the boom, and if those increased profi ts provided the rationale for increased dividends, then bank capital became riskier prior to the crisis, and this would have made the system more prone to  failure. A study by Goncharov and Van Triest (2011) found no empirical support for an increase in dividends in response to unrealised positive fair value adjustments to income. In contrast, when the setting is  limited to only South African banks, this paper fi nds that South African banks did pay dividends from unrealised transitory gains. This fi nding is based on a combination of three strands of evidence: a panel  regression of the annual dividends declared by the large South African universal banks that showed that those banks probably ignored the unrealised nature of FVA profi ts when dividends were determined;  monthly data from the total South African bank system in a co-integrated regression that showed that  unrealised fair value profi ts from the banking book raised the average level of bank profi ts materially; and simple descriptive statistics on distributions that showed that South African banks distributed a greater  proportion of profi ts during the critical period of 2004 to 2008 when unrealised fair value profi ts from the banking book raised the level of bank profi ts. The fi nding that South African banks did pay dividends from unrealised transitory gains was also confirmed by bank representatives and the post-fi nancial crisis disclosure of one of the South African banks.Key words: fair value accounting, dividend policy, earnings persistence, banks
  • Supply chain management problems at South African automotive component manufacturers

    Naude, MJ; Badenhorst-Weiss, JA (College of Economic and Management Sciences (UNISA), 2012-05-14)
    The problems that automotive component manufacturers(ACMs) experience in automotive supply chains is an importantcontemporary issue. The role of ACMs in the competitiveness andsurvival of the automotive industry has never been as pronounced.Original equipment manufacturers (OEMs, also known as automotiveassemblers) face pressure from government to drastically increaselocal content (components and services they purchase from localACMs). The problem is that local ACMs are not as competitive assuppliers from India and China. The improvement and extension ofthe local ACM supplier base is therefore important. The purposeof this article is to report on a study that investigated supply chainmanagement problems of ACMs and the extent of these problems.Supply chain problems may cause ineffi ciencies that impact on thecompetitiveness of ACMs. The study was exploratory in nature,and consisted mainly of a survey among ACMs in South Africa. Itwas found that of the 75 identifi ed problems, the most signifi cantproblems were internal process problems, followed by customerrelatedproblems. The most signifi cant problems lie in the demandmanagement area in the supply chain.
  • Job satisfaction in a chemical factory

    van Schalkwyk, L; Rothmann, S (College of Economic and Management Sciences (UNISA), 2012-05-11)
    Subjective well-being is regarded as an important goal given thepositive outcomes thereof for individuals. Job satisfaction is animportant indicator of the subjective well-being of individuals. Theobjectives of this study were to evaluate the use of the MinnesotaSatisfaction Questionnaire (MSQ) for diff erent language groupsworking in a chemical factory, and to investigate the relationshipbetween job satisfaction and demographic variables. The studywas carried out with a sample (N = 583) representing diff erent joblevels in a chemical factory. The 20-item MSQ and a biographicalquestionnaire were administered. The results confi rmed that jobsatisfaction consists of two internally consistent factors, namelyextrinsic and intrinsic job satisfaction. The factorial invariance ofthe MSQ was confi rmed for African languages and an Afrikaansand English group. Language was the only demographic variablethat statistically signifi cantly predicted extrinsic job satisfaction.Intrinsic job satisfaction was statistically signifi cantly predicted bytwo demographic variables, namely age and qualifi cation.

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