African Journal of Business Management 

About: African Journal of Business Management is an academic journal published by Academic Journals. The journal publishes majorly in the area(s): Stock exchange & Organizational commitment. It has an ISSN identifier of 1993-8233. It is also open access. Over the lifetime, 4017 publications have been published receiving 50446 citations. The journal is also known as: AJBM.

Obstacles to the growth of new SMEs in South Africa: A principal component analysis approach

Abstract: The paper investigated the obstacles to the growth of new SMEs in South Africa using the principal component approach. New SMEs are seen as a significant component of the solution to South Africa’s development issues. However, most new SMEs do not grow; their failure rate in South Africa (75%) is one of the highest in the world. The objective of the study was to investigate the internal and external environmental obstacles to the growth of new SMEs. As a new business develops, it exists and survives in an environment characterized by both internal and external factors which impact negatively on the new business’ survival. Thirty variables were identified as obstacles. The principal component analysis with varimax rotation was used to reduce the variables to five clusters. The most important obstacle was termed Financial which is largely an internal factor. The other obstacles respectively as determined by the PCA were Economic (external), Markets (external) Management (internal) and Infrastructure (external). Key words: New SMEs, growth, principal component analysis.

A review of the literature on employee turnover

Abstract: “Employee turnover” as a term is widely used in business circles. Although several studies have been conducted on this topic, most of the researchers focus on the causes of employee turnover but little has been done on the examining the sources of employee turnover, effects and advising various strategies which can be used by managers in various organisations to ensure that there is employee continuity in their organisations to enhance organizational competitiveness. This paper examines the sources of employee turnover, effects and forwards some strategies on how to minimize employee turnover in organisations. Key words: Employee, turnover, sources, effects, strategies.

Employee retention and turnover: Using motivational variables as a panacea

Abstract: This research looked at the extent to which identified intrinsic and extrinsic motivational variables influenced the retention and reduction of employee turnover in both public and private sector organisations. The research was aimed at achieving the following objectives: identify and establish the key intrinsic and extrinsic motivational variables being used by selected public and private sector organisations in retaining their employees; determine the extent to which the identified intrinsic and extrinsic motivational variables are influencing employees’ retention and turnover in the selected organisations; and make recommendations to management of the selected organisations on how to effectively retain employees and reduce turnover. The study adopted the cross-sectional survey research design, investigating the extent to which selected motivational variables influence employees’ decision to either remain or quit an organisation. Quantitative research design was used and this design was chosen because its findings are generaliseable and the data objective. The study examined two public and two private sector organisations in South Africa. The total population of the research comprised 1800 employees of the surveyed organisations with a sample size of 145 respondents. A self-developed questionnaire, measured on a Likert Scale was used to collect data from respondents. The questionnaire had a Cronbach alpha coefficient of α = 0.85 suggesting that the instrument was reliable. The Chi-square test of association was used in testing the hypothesis of the study. The result showed that employees in both public and private sector organisations were, to a very large extent, influenced to stay in their respective organisations by a combination of intrinsic and extrinsic motivational factors. The following motivational variables were found to have significantly influenced employee retention in both the public and private sector organisations: training and development, challenging/interesting work, freedom for innovative thinking, and job security.

Corporate social responsibility influences, employee commitment and organizational performance

Abstract: Research on corporate social responsibility (CSR) majorly describes its effects on corporate financial performance or consumers’ behavior towards CSR. Relatively few studies have focused employee’s sentiments towards CSR. This study analyzes the multifaceted influence of CSR on employee’s organizational commitment and organizational performance. The study uses exploratory approach; primary data is collected from 371 professionals working in different sectors of Pakistan. The study uses structural equation model (SEM) technique to test the hypotheses. The study found significantly positive relationship between CSR actions and employee organizational commitment, CSR and organizational performance and employee organizational commitment and organizational performance. The study discusses important implications regarding uses of CSR for enhancing employee’s organizational commitment and improving organizational performance. Key words: Corporate social responsibility, employee job satisfaction, organizational commitment, Pakistan.

Job creation versus job shedding and the role of SMEs in economic development

Abstract: SMEs have historically played an important role in contributing to economic development of many countries around the world. Naturally all businesses start as small businesses or even start out of small businesses initiated by individuals. Evidence from this study shows that SMEs represent vast portion of businesses in developing countries including South Africa. In South Africa, SMEs account for about 91% of the formal business entities, contributing to about 51 and 57% of GDP, providing almost 60% of employment. The main challenges affecting SMEs in South Africa include lack of management skills, finance, access to bank credit, access to markets, appropriate technology, low production capacity, recognition by big companies, lack of interest, long bureaucracy processes, and support for the roles that small businesses can play in economic development. This study re-assesses the role of SMEs in creating jobs, boost, enhance and support economic development in South Africa. Key words: Small business, entrepreneurship, job creation, job shedding, economic development, poverty alleviation.