Showing papers by "John M. Luiz published in 2015"

The impact of ethno-linguistic fractionalization on cultural measures: Dynamics, endogeneity and modernization

Abstract: We introduce a measure called ethno-linguistic fractionalization (ELF), which captures the ethnic and/or linguistic diversity in a country and examine its implications on existing cultural measures. Not only do high levels of fractionalization affect the use of statistical means to account for cultural distance (CD), we show that it is not constant and therefore the dynamics of change need to be addressed. We pursue the study of the dynamics and potential endogeneity through an in-depth case study of South Africa over the course of the twentieth century. There is evidence of processes of modernization whereby economic progress impacts upon ELF. There are also complex interactions between the various measures of fractionalization and other sociopolitical and institutional variables. This provides us with an opportunity to bridge the CD and institutional distance literature as institutions impact upon culture and multinational enterprises, and institutional development is, in turn, affected by these. We call for a more realistic assessment of what is being captured in cultural measures and for recognition of the complexity of the notion of identity formation and its dynamics. Countries may have different underlying cultural schisms, including ELF, and its introduction will allow for a richer exploration of distance and diversity in International Business.

The devolution of the human resources function in South African multinational companies

Abstract: Understanding how multinationals devolve decision-making within their human resources (HR) function to their subsidiaries in Africa is becoming increasingly important as the continent grows in significance in the global economy. The research examines the extent of HR devolution by South African multinational companies; how it is affected by the availability of capacity, skills and resources and the role that distance plays in this devolution. Qualitative research was conducted involving 13 South African multinationals operating in eight industries and multiple countries. We find that South African multinationals primarily devolve transactional functions to their foreign subsidiaries while retaining control of transformational ones. However, this appears to be in transition, with transactional items increasingly outsourced to third parties or in-sourced to shared service centres or employee self-service. Certain transformational items were gradually being moved to the subsidiaries, subject to skills and re...

Designing Supply Chains into Africa: A South African Retailer’s Experience

Abstract: The key to understanding how to promote growth in Africa is being able to comprehend supply chain management. South Africa has been a leader in terms of expanding its retail businesses throughout the rest of Africa. One of the most successful firms that has managed to do this has been Game stores (owned by Massmart Holdings—now part of Walmart). The supply chain issues which face firms wanting to spread out across this continent are illustrated by describing the experience of this firm’s expansion into Africa. This paper uses an exploratory approach. Based on an in-depth case study of Game stores, insights are gained into how firms, particularly in the retail sector, can expand their supply chains throughout Africa. The case study sheds light on the challenges that the external environment creates for such firms. Much supply chain theory is focussed on firm level factors and this study highlights the need for new supply chain theories to take account of the external environment in order to be practically relevant to emerging markets in Africa.

Game in Africa: Seizing the Opportunity

Abstract: By June 2010, Jan Potgieter, chief executive of the Johannesburg-based Massdiscounters — a division of Massmart — had gone some way to achieving his goal of “painting Africa pink” with the expansion of Game, one of the group’s large-format, general merchandise discounters, into the rest of the African continent. (Game’s corporate color was pink.) In that year, Game had stores in 11 other African countries, with plans to expand into another six in the near future. However, there was a strong possibility that a large international player would soon be entering the African market and competing directly with Game. Potgieter therefore had to consider whether Game’s Africa strategy was sound, or whether it needed to change so that Africa did indeed become pink and not different shades of blue.

The Role of Prospect Theory in Screening Behavior Decision-Making in aHealth-Insured Population of South Africa

Abstract: Background: Prospect theory suggests that people avoid risks when faced with the benefits of a decision but take risks when faced with the costs of a decision. Screening for diseases can be defined as a ‘risk’, in the context of uncertainty. The outcome can either be a ‘benefit’ of good health or a ‘cost’ of ill health or poor-quality health. Purpose: To assess whether prospect theory can predict screening behavior in the context of a chronic disease diagnosis as well as the exposure to incentives to screen. Methods: A retrospective longitudinal case-control study for the period 2008-2011 was conducted using a random 1% sample of 170,471 health-insured members, assessing screening for cancers, chronic diseases of lifestyle and HIV, some of whom voluntarily join an incentivized wellness program. Results: Individuals diagnosed with a chronic disease screened up to 9.0% less for some diseases over time. Mammogram screening however increased (p<0.001). Where a family member was diagnosed with a chronic disease, individual screening decreased up to 8.6%. Similarly females in families where a member was diagnosed with a chronic disease screened more for breast cancer (p<0.001). Males were more sensitive to incentives only for HIV screening (p<0.001), while the female responses to incentives were inconsistent. Conclusion: A chronic disease diagnosis or the risk of developing a chronic disease resulted in reduced future screening behavior for most diseases. The role of incentives was inconsistent. Prospect theory adequately predicts screening behavior when diagnosed or faced with a possible chronic disease diagnosis for most screening tests except for females screening for breast cancer.

The Impact of Fractionalization on Cultural Distance Measures

Abstract: We examine the impact of ethno-linguistic fractionalization (ELF) on existing cultural measures employed in various social sciences. Not only do high levels of fractionalization affect the use of statistical means to account for cultural distance, we show that it is not constant and therefore the dynamics of change need to be addressed. This provides us with an opportunity to bridge the cultural distance and institutional distance literature as institutions impact upon culture and MNEs, and institutional development is, in turn, affected by these. We call for a more realistic assessment of what is being captured in cultural measures and for recognition of the complexity of the notion of identity formation and its dynamics. Countries may have different underlying cultural schisms, including ELF, and its introduction will allow for a richer exploration of distance and diversity in the social sciences.