• A formalised performance assessment process to improve audit committee performance in South Africa: A conceptual exploration

      I Morgan (College of Economic and Management Sciences, 2012-05-11)
      There is concern worldwide about corporate governance, director liability, litigations and business failures, the economic recession and the quality of fi nancial reporting. Owing to these factors, new regulations and legislation aff ecting organisations and the related responsibilities imposed on audit committees, it is imperative that the performance of audit committees and individual members be enhanced and sustained. The King III Report and other corporate governance principles specify that the board, its committees and individual members should be evaluated regularly, which was not a requirement for individual committee members in King II. Thisarticle examines formal guidelines and requirements to identify the factors aff ecting the audit committee and individual members’ performance, to determine whether their performance could be improved by formalising the assessment process and to develop a framework for measuring their performance. The balanced scorecard as a method of assessment or evaluation is examined and proposed to help audit committees to meet their requirements and improve the quality of their oversight  responsibilities. This article should be of value to boards of directors, audit committees and regulators in that the contributions of a more formalised performance assessment process as an internal governance mechanism towards facilitating the professional development of audit committee members are demonstrated.
    • 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
    • A perceptual study of the impact of green practice implementation on the business functions

      Smith, EE; Perks, S (College of Economic and Management Sciences (UNISA), 2012-05-11)
      1This article outlines the perceptions of businesses regardingthe impact of green practice implementation on the businessfunctions. To achieve the aim of this study, an in-depth literaturestudy and empirical research were undertaken. A self-administeredquestionnaire was completed by 298 owners, managers andemployees in businesses within the Nelson Mandela Metropole. Toinvestigate the relationship between the independent (classifi cationdata) and dependent variables (perceptions of impact on businessfunctions), 13 null hypotheses were tested. The results revealedsignifi cant relationships between these variables. It was foundthat the functions least impacted by green business practicesare general management/human resources, purchasing/supplychain management and fi nance/information technology. Furtheranalysis of the business functions reveals that the manufacturing/operations, marketing/sales and distribution/logistics functions arethe most impacted by green business practices. Practical guidelinesare provided to assist in greening the business functions.
    • A re-examination of the exchange rate overshooting hypothesis: Evidence from Zambia

      Chiliba, L.; Alagidede, P.; Schaling, E. (College of Economic and Management Sciences (UNISA), 2016-04-20)
      Dornbusch’s exchange rate overshooting hypothesis has guided monetary policy conduct for many years, despite the fact that empirical evidence on its validity is mixed. This study re-examines the validity of the overshooting hypothesis by using the autoregressive distributed lag (ARDL) procedure. Specifi cally, the study investigates whether the overshooting hypothesis holds for the United States dollar/Zambian kwacha (USD-ZMK) exchange rate. In addition, the study tests whether there is a long-run equilibrium relationship between the USD-ZMK exchange rate and relevant macroeconomic fundamentals. Using monthly nominal USD/ZMK exchange rates and monetary fundamentals data from January 2000 to December 2012, the study fi nds no evidence of exchange rate overshooting. The results also show that there is no long-run equilibrium relationship between the exchange rate and the differentials of macroeconomic fundamentals. The implication is that macroeconomic fundamentals are insignifi cant in determining the exchange rate fl uctuations in the long run. This finding is inconsistent with the monetary model of exchange rate determination, which asserts that there is a long-run relationship between the exchange rate and macroeconomic fundamentals.Key words: Exchange rates, monetary model, autoregressive distributed lag, cointegration, exchange rate overshooting
    • A review of the modern operations management curricula for a new programme qualifi cation mix (PQM)

      RJ Steenkamp (College of Economic and Management Sciences, 2012-05-11)
      3The POM (production and operations management) function is lessunderstood than any other business function. In manufacturingindustries it is usually taken to be production management and bestleft to specialists (such as engineers). In some service organisations,the term is still not recognised. In addition to this, the persistent gapbetween what is being taught and what is relevant to the practitionerneeds to be addressed. The purpose of this article is to lead up toa revision and design of the POM function curricula and to promoteits core overriding value as the theme for a bachelor’s qualifi cationin higher education that meets the needs of South African industry.4The methodology used as part of this curriculum design processwas based on secondary research sources (current academic reportsand established syllabi) and two empirical surveys among a subsetof the population, namely industry leaders in South Africa. Theresultant qualifi cation design is presented as a conceptual draft aspart of the recommended new degree in POM to be submitted to theDOE (Department of Education) by a South African university. Theoverall implications of this article would put POM back at the top ofthe corporate agenda. A further study is recommended based on theapplication of the Collective Causal Mapping Methodology (CCMM)for creating (revising) course curricula (Hays, Bouzdine-Chameeva,Hill, Scavarda & Goldstein 2007).
    • A top management perspective of total quality service dimensions for private higher education institutions in South Africa

      Dirkse van Schalkwyk, R.; Steenkamp, R.J. (College of Economic and Management Sciences (UNISA), 2016-04-20)
      The growing need for higher education in Africa with the concurrent explosive growth of private higher education institutions in South Africa indicates the concomitant need for quality assurance of these institutions. This article presents leadership perspectives on the strategic need for developing a service quality excellence framework for private higher education institutions, a need which arises from the limitations of conventional quality assurance instruments, and highlights the importance of a holistic approach to service quality management in terms of a total quality service framework. The development of such a framework is being done in two phases: (1) from a top management perspective (the qualitative phase) and (2) from the perspective of academics and students (the quantitative phase). This article explains the fi rst phase of the research with the focus on prominent South African private higher education institutions offering degree qualifi cations. In-depth semistructured interviews were conducted with 15 principals (CEOs or top managers) of these institutions. A thematic analysis approach was followed to identify service quality dimensions as the point of departure for the eventual development of a total quality service framework.Key words: total quality service, private higher education, service quality dimensions, service quality frameworks, leadership, SERVQUAL
    • A transformational leadership model for managing change and transformation linked to diversifi cation investments

      Okanga, B.; Drotskie, A. (College of Economic and Management Sciences (UNISA), 2016-04-20)
      Owing to its relationship with change and transformation, transformational leadership theory should be relevant to managing change and transformation linked to diversifi cation investments. However, the question of what model of transformational leadership would be appropriate for managing change and transformation linked to diversifi cation investments has not been addressed. The purpose of this research was to explore managers’ perceptions of the links between transformational leadership and diversifi cation strategies.Using a qualitative research method, this study provides a critical analysis of the transformational leadership theories and triangulation with the behaviours of 30 purposively sampled managers from ten fi rms involved in different diversifi cation activities. The aim of this was to determine the most appropriate transformational leadership model for managing change and transformation linked to diversifi cation investments. Besides the degree of industry predictability and certainty, the fi ndings echoed the reasoning in the full-range transformational leadership theory that a continuum of transformational-transactional leadership behaviours enhances effective management of diversifi cation-related changes and transformation. However, no similar transformational leadership model was found to have been adopted by prior studies or enterprises engaged in different diversifi cation activities. The study should fi ll this gap by identifying a new transformational leadership theory that links the full-range transformational leadership theory to Ansoff’s model for diversifi cation and growth improvement strategies.Key words: diversification investments; managing change and transformation;transformational leadership
    • ABC implementation in the Nelson Mandela Bay Metropole: How far should manufacturing organisations go?

      Reynolds, A; van der Poll, HM (College of Economic and Management Sciences (UNISA), 2015-10-28)
      Activity-based costing (ABC) success factors have been studied in past research, mostly by using commonly  known success factors. In this qualitative study, a literature review and interviews were used to establish what factors are responsible for the successful implementation of ABC. The number of semi-structured  interviews was limited to 13 ABC adopters in the Nelson Mandela Bay Metropole. The fi ndings suggested that ABC can be enhanced with the use of activity-based budgeting (ABB) and activity-based management (ABM). In addition, the use of ABC in conjunction with capital investment decisions may ensure that correct decisions are made when critical long-term projects are considered. Extensive identifi cation of cost drivers is benefi cial to the extent where the product loses its relationship with the overhead cost. It is evident from this research that considering fi xed indirect overheads in ABC is not always benefi cial for a manufacturing organisation  unless there is a clear link to the end-product.Key words: activity-based costing (ABC), budgeting, implementation, success factors, metropole, capital investments, competition
    • Academic publishing: Lessons learnt from the Southern African Business Review

      EM Koekemoer; AA Ligthelm (College of Economic and Management Sciences, 2012-05-11)
      Writing and publishing of research constitute an integral part of academic life, inter alia, extending the frontiers of knowledge, enhancing the status of the individual and his/her institution and generating subsidy income from the Department of Education. However, publication outputs are relatively low and are largely contributed by only a small number of academics. This concentration of research publication in a few academics is closely related to the high rejection rate of manuscripts by refereed (accredited) journals. Insight into the academic research-to-publication process could inform aspiring authors of the academic publishing procedures and scholarly standard required for publication in refereed journals. This article aims to describe and analyse the editorial review process and its outcomes with reference to the Southern African BusinessReview (SABR) as well as weaknesses of manuscripts submitted for publication to the SABR. This analysis is based on the more than 300 manuscripts and approximately 600 referee reports submitted to the SABR during the five-year period 2004 to 2008. The findings reveal a variety of reasons for rejecting manuscripts. These are multidimensional and range from weaknesses in research design, presentation of research findings and failure to contribute to the body of scientific knowledge, to more mechanical problems such as language style and referencing. A proper understanding of shortcomings in academic writing will highlight the guidelines for compiling good scientific articles.
    • Achieving optimal business performance through business practices: evidence from SMEs in selected areas in South Africa

      Neneh, NB; van Zyl, JH (College of Economic and Management Sciences, 2013-02-15)
      Enhancing business performance is of increasing interest to all business leaders in today’s business environment. Studies relating to both large firms and small and medium enterprises (SMEs) constantly emphasise a positive relationship between business practices, management activities and performance, as it is often articulated that best business practices produce superlative business performance. This study examines empirically which business practices are implemented by SMEs in some selected areas in South Africa and how these business practices impact on their optimal performance. The population for the study comprised business owner-managers in the SME sector in Bloemfontein, Botshabelo and Thaba’Nchu (Free State province of South Africa). A statistical methodology was used to test the relationships hypothesised in the research model. The results reveal that all six selected business practices that were examined (marketing practices, strategic planning practices, human resource management practices, risk management practices, performance management practices and teamwork practices) have a positive and significant relationship with SME performance. Moreover, 97.1% of the SMEs that implemented all six business practices had optimal business performance. This study could serve as a guide for business consultants and SME support mechanisms to develop SME training programmes to help SME owners/managers to acquire the necessary skills to properly implement these six business practices, which will enable SMEs to achieve optimal performance.Achieving optimal business performance through business practices Key words: SMEs, business practices, SME performance, optimal performance, South Africa
    • 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
    • Ageing in a modern era: evidence from South African resort spa visitors

      Viljoen, Armand; Kruger, Martinette; Saayman, Melville (College of Economic and Management Sciences (UNISA), 2018-10-12)
      Distinguishing tourists based on their age and generational cohort has been applied widely as a useful market segmentation tool. However, to date, limited research has analysed the needs of the different generations, especially in a South African tourism context. Even fewer studies have attempted to analyse or segment the resort spa visitor. This quantitative research is one of the first to analyse the profile and needs of different generations, specifically at resort spas in South Africa. A distinction was made between baby boomers and Generation X at three selected resorts in the country. The research showed the value of the generational theory in understanding the travel behaviour of visitors but also highlighted the fact that regarding research on destinations it is recommended to analyse different generations rather than solely focusing on one, as this could lead to mismanagement of resources. This research contributes towards understanding the needs of different generations in a South African context. Based on the results, this research suggests that the country’s history, and subsequent national events, may have played a significant role in shaping the travel needs, preferences and behaviour of the domestic market.Keywords: generational cohorts; baby boomers; Generation X; South Africa; resort tourism; resort spas; segmentation
    • An analysis of employment intensity of sectoral output growth in Botswana

      O Yinusa; T Ajilore (College of Economic and Management Sciences, 2012-05-14)
      3Despite an impressive macroeconomic growth record in Botswanaover the past four decades, high unemployment and poverty incidences remain persistent and an intractable challenge of macroeconomic management in the country. The study explores the employment intensity of sectoral output growth in Botswana with a view to identifying key sectors of the Botswana economy that are employment intensive. To achieve this objective, the study used both simple elasticities and econometric procedures to provide empirical evidence concerning the extent to which economic growth that has occurred in Botswana is employment intensive and in which sectors. The fi ndings confi rmed the low labour absorptivecapacity of the Botswana economy at the aggregate and at sectoraldecompositions, suggesting the notion that growth performance inthe country is, after all, ’jobless growth’. With respect to policy, thestudy recommends a successful mineral-led economy that is able todiversify into sectors and activities that are by nature relatively morelabour-intensive.
    • An analysis of sovereign risk in South Africa with the focus on fiscal determinants

      Robinson, Z (College of Economic and Management Sciences (UNISA), 2015-12-15)
      This paper investigates the sovereign risk premium as an indicator of sovereign risk. An attempt was made to capture evidence that best explains bond yield spreads for the 21-year period after the inception of democracy in South Africa in 1994. Conventional unit root testing techniques were applied, and the results revealed unit roots at monthly, quarterly and annual frequency, warranting further econometric testing. The fi nancial crisis in the period 2007 to 2011 posed a potential signifi cant break in data and was built into the analysis. The results for the crisis period differed substantially from the pre- and post-crisis period and are reported as such. The results reveal a unique combination of explanatory factors (cointegration), but also a special implication for bond yield spreads. They re-affirm the importance of fiscal policy decision making and fiscal balance, taking all factors into account such as long-and shortterm interest rates. Current spending and the public sector borrowing requirement have a statistically positive effect on spreads depending on whether they were pre- or post-crisis. The latter could be an indication of investor sensitivity, especially in terms of the way in which the borrowing requirement is utilised and the fact that capital formation is preferred to current spending. Furthermore, the maturity of domestic debt shows up as statistically negative, probably confirming investor interest and thus confidence in the long run, with possible consequences for financial stability as a regional public good.Key words: policy, sovereign risk, spreads, bond markets
    • An analysis of the inter-relationship between savings product usage and satisfaction using a SERVQUAL framework

      Venter, JMP; de Clercq, B; van Aardt, CJ (College of Economic and Management Sciences, 2013-02-15)
      The article maintains that improved participation in the financial services industries seems to be dependent on satisfaction levels regarding financial services product usage. Empirical evidence shows that higher usage and higher satisfaction regarding basic savings products such as savings accounts, money market investments and fixed deposits, as well as wealth management products such as home loan accounts, vehicle finance, endowment policies, retirement annuity policies, collective investment schemes and other specific needs savings products go hand in hand. Financial advisors, financial regulators as well as financial product providers should understand their role and responsibilities towards savers or potential savers in South Africa to ensure satisfaction levels, which would result in an increase in the use of financial products and could potentially lead to improved savings rates for South Africa.Key words: financial services, satisfaction, SERVQUAL, marginal utility, savings
    • An assessment of selected organisational-based factors on the perceived success of agribusinesses: a corporate entrepreneurship perspective

      van der Merwe, SP; Lotz, HM (College of Economic and Management Sciences (UNISA), 2014-12-17)
      The objective of this study was to investigate the influence of selected organisational-based factors on the perceived success of agribusinesses in South Africa. Business success, for the purposes of this study, was measured by means of two dependent variables, namely Business development and improvement and Business growth. Structured questionnaires were administered to the managers of five of the largest and three smaller agribusinesses in South Africa. A total of 533 usable questionnaires were returned. The construct validity of the measuring instrument was assessed by means of a principal component exploratory factor analysis and by calculating Cronbachs’s alpha coeffi cients. The results show that the managers in the participating agribusinesses perceived the selected organisational-based factors of Strategic intent, Autonomy, Customer orientation and Rewards to have a positive influence on their Business development and improvement. A positive relationship was also found to exist between the selected organisational-based factors of Strategic intent and Customer orientation and the dependent variable Business growth in the participating businesses. Practical recommendations were also proposed to enhance and foster corporate entrepreneurship within these businesses.Key words: corporate entrepreneurship, agribusinesses, perceived success
    • An exploratory study of the relationship between store image, trust, satisfaction and loyalty in a franchise setting

      R Solomons; O Demetriou; E Adams; J Beneke (College of Economic and Management Sciences, 2012-05-14)
      This study aims to shed insight on how young shoppers, between theages of 21 and 35, perceive, and relate to, franchise and corporateownedstores in the supermarket industry. This is achieved by investigating the roles of store image, trust and satisfaction in predicting loyalty to a particular store type. By analysing empirical results, this study shows that compared to corporate-owned stores, consumers have an overall better perception of franchise stores, especially in terms of trust and customer satisfaction. Examining an integrative loyalty framework, the study shows diff erential eff ects in how Store Image elements infl uence customer Loyalty indirectlythrough satisfaction, and how Trust elements infl uence customer Loyalty indirectly through Satisfaction.
    • An exploratory study on the gender-based differences in entrepreneurial intention and its antecedents amongst students of a South African University of Technology

      Ndofirepi, Takawira Munyaradzi; Rambe, Patient; Dzansi, Dennis Yao (College of Economic and Management Sciences (UNISA), 2018-10-12)
      Although the prevailing gender-linked fissures in entrepreneurial activity are shrinking in African economies, a disturbing feature of the contemporary business start-up environment is that women persistently are less willing to engage in entrepreneurship compared to men. In addition, women focus more on low technology and service-oriented business activities, which yield relatively lower financial value than other economic sectors. Given the subtle but entrenched gender vulnerabilities and biases that constantly accompany student career decisions, the primary objective of this research was to establish whether gender influences students’ intention to participate in entrepreneurship. Guided by a quantitative approach and survey research design, the study used a self-administered questionnaire to gather data from 130 undergraduate students, randomly selected from an entrepreneurship education class at a South African university of technology. The study applied the Mann-Whitney technique, a non-parametric test, to ascertain the existence of any significant gender-grounded disparities in the mean scores for entrepreneurial intention and its antecedents. The results confirmed the existence of significant differences in entrepreneurial intention, perceived behavioural control and attitude towards entrepreneurship among students, with males scoring higher than females in these constructs. These findings emphasise the need for gender-sensitive approaches to devising and implementing entrepreneurship development and support measures among potential entrepreneurs.Keywords: attitude; entrepreneurial intention; gender; perceived behavioural control; planned behaviour; subjective norms; South Africa
    • An investigation into youth entrepreneurship in selected South African secondary schools: An exploratory study

      Steenekamp, AG; van der Merwe, SP; Athayde, R (College of Economic and Management Sciences (UNISA), 2013-02-15)
      This research paper examines the status of entrepreneurship educationin selected South African secondary schools to determine the impactthereof on young learners’ attitude towards entrepreneurshipand their future plans. It highlights some challenges facing youthentrepreneurship development in Sedibeng secondary schools. Thestudy is based on the attitude approach to entrepreneurship researchand discusses the results of an empirical study involving 1 748 grade10 learners. South African youth appear to have a positive attitudetowards entrepreneurship and the existence of opportunities fornew venture creation, but seem to have inflated expectations withrespect to their future academic qualifications and less interestthan would be expected in starting their own businesses. Statisticalanalysis of the data revealed that entrepreneurship education in thesample schools was largely infrequent and without depth or focus.The results indicated that catalytic factors, such as exposure toentrepreneurship at school and having self-employed parents, havenot had any effect on learners in the sample, thus re-emphasisingthe urgent need for entrepreneurship training programmes of value.The paper concludes with recommendations for further research onentrepreneurship education in South African secondary schools.
    • An investigation of the entrepreneurial orientation, context and entrepreneurial performance of inner-city Johannesburg street traders

      R Venter; C Callaghan (College of Economic and Management Sciences, 2012-05-14)
      3Increasingly, attention is being paid to the entrepreneurial potential of the informal sector, which participants perceive to be rich in opportunity. Yet, little has been done to investigate the entrepreneurial orientation, and indeed, the contribution of entrepreneurial orientation to the entrepreneurial performance of informal traders. Entrepreneurial orientation (EO) is particularly useful because it contributes to a fundamental understanding of what entrepreneurship is. The focus of this study is an examination of the EO of inner city traders in the City of Johannesburg, South Africa. Data relating to EO, contextual factors and entrepreneurial performance were collected from 308 street traders and analysed to investigate, fi rstly, the factors that shape EO, and secondly, the potential contribution of EO to entrepreneurial performance. Thefi ndings indicate that EO is associated with certain contextual andlearning factors, suggesting that the provision of entrepreneurial training might contribute to the empowerment of informal entrepreneurs. At the same time, higher levels of proactiveness and competitive aggressiveness were found to be positively associated with continuance satisfaction.