Showing papers in "South African Journal of Business Management in 2015"

The intention to use mobile banking: Further evidence from Saudi Arabia

Abstract: The purpose of this research paper is to develop and examine a research model to understand the factors that affect the intention to use mobile banking services in Saudi Arabia. Based on a paper-based survey of 253 respondents, the study utilized a Partial Least Squares (PLS) to empirically test the model. The results indicated strong support for the validity of proposed model with 66,7% of the variance in intention to use mobile banking. The results also indicated that compatibility was the strongest facilitator of intention while perceived risk was a barrier to the intention to use mobile banking. Trust had strong negative relationship with perceived risk, indicating that trust may alleviate the risk barrier, which could influence intention to use mobile banking. Contrary to previous research, perceived usefulness and perceived ease of use did not have significant effect on intention to use mobile banking. The implications of the findings were discussed and suggestions for future research were presented.

What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys

Abstract: The growth of Micro, Small and Medium Enterprises (MSMEs) is often regarded as a solution to persistent unemployment in developing countries. Studies have shown that access to finance is the most serious obstacle to MSMEs’ growth. This paper investigates key obstacles to the growth of MSMEs in South Africa using the World Bank Enterprise Surveys of 2003 and 2007. Two approaches are used to determine the key obstacles. The first improves on the simple count-of-ratings method used by many researchers. The second estimates the effects of obstacles on growth through sequential multivariate regressions based on the Growth Diagnostics framework by Hausmann, Rodrik & Velasco (2005) and identifies two levels of obstacles’ intensities: binding constraints with negative and significant effects and constraints with notable effects whose negative effects are significant but less than the binding. From both count- and regression-based analyses, access to finance is a relatively less important obstacle. The count-based analysis finds crime to be the top obstacle. In the regressions, ‘courts’, which refers to the efficacy of the legal system and thus related to crime, is binding . Electricity and transportation of goods are the constraints with notable effects .

An integrated entrepreneurial performance model focusing on the importance and proficiency of competencies for start-up and established SMEs

Abstract: Functional and enterprising competencies were identified in the integrated entrepreneurial performance model and the paper highlights which key skills and which supportive skills should be included in entrepreneurial training models and programmes. Functional competencies depend on business management/general business and technical skills. Enterprising competencies depend on entrepreneurial and personal skills. A clear distinction is made between general management and entrepreneurial skills. A multi-sample of 570 start-up and established small and medium enterprises (SMEs) was used to determine whether there are statistically significant differences between the groups in terms of the importance and proficiency in these competencies. Exploratory factor analysis was conducted to confirm the validity and reliability of the measuring instrument and several statistical tests, including t-tests and ANOVAs, were performed to test the hypotheses. Established SMEs considered functional competencies as being much more important than start-ups. This finding implies that start-up SMEs need to focus on the importance of functional competencies if they want to increase their chances of becoming established businesses. It was found that start-up, as well as established SMEs, consider enterprising competencies as important. The established group considered themselves very proficient in both the functional and enterprising competencies while the divergent was true for the start-up group.

Ethical considerations of corporate social responsibility - A South African perspective

Abstract: Today, companies are under increasing pressure to implement corporate social responsibility [CSR] programmes that account for the economic, social and environmental impacts of their operations. In addition to companies voluntarily wanting to be seen as responsible corporate citizens, the requirement for CSR reporting is being institutionalised by the King Code of Governance [King III] in South Africa. The application of King III is mandatory for all companies listed on the Johannesburg Stock Exchange [JSE], albeit on an 'apply or explain' basis. King III requires companies to not only disclose their CSR performance, but also to ensure that such disclosures have been independently assured. Irrespective of the underlying reason for companies disclosing their CSR performance and for providing independent assurance thereon, companies are moving away from simplistically applying the cliche attributed to Friedman that "the social responsibility of business was to use its resources to engage in activities that would increase profits". Companies that have traditionally provided financial reporting to shareholders, are now beginning to account for their non-financial performance to other stakeholders as well. This paradigm shift requires those charged with company governance and reporting (including accounting professionals usually associated with financial reporting), to re-examine their morals, values and ethical beliefs.

Institutional proxy voting in South Africa: Process, outcomes and impact

Abstract: This study investigated the nature of institutional shareholder activism in South Africa with a particular focus on proxy voting as a public form of shareholder discontent. A total of 24 510 votes cast by 17 local investment management companies in 2013 were analysed. Interviews were also conducted with selected investment managers to gain more insight into the proxy voting process at their companies. Based on this data, it was concluded that investment managers preferred to engage with investee companies in private and viewed proxy voting as the last link in the shareholder activism chain. As a result, only 6.6 per cent of all votes were ‘against’ resolutions tabled by 347 JSE-listed companies in 2013. Resolutions regarding shareholders’ endorsement of companies’ remuneration policies; the election and re-election of directors, particularly those serving on audit committees; and the issuance of ordinary shares elicited the most opposition. Companies that were excluded from the JSE’s Socially Responsible Investment Index in 2013 attracted significantly more opposition than their counterparts who were included in the index when seeking shareholder approval on the election and re-election of directors and the placing of shares under the control of directors. The same applied to companies that had low environmental, social and governance disclosure scores in 2013 as regards the issuance of shares. It is recommended, amongst others, that shareholder activism in South Africa be promoted by enhancing investor education and effecting some regulatory changes.

Share repurchase and dividend payout behaviour : the South African experience

Abstract: Share repurchases, rather than dividend payments, are increasingly becoming the globally favoured payout method. This has prompted a renewed interest in the field, and raises questions about the actual motivation for share repurchases and whether companies are now repurchasing shares in preference to investing in future growth. This study set out to ascertain whether South African company payout behaviour mirrors global company behaviour. Comprehensive data on share repurchases are, however, not compiled by South African financial data sources or by the Johannesburg Stock Exchange Ltd. In preparation for this study, the authors thus compiled the first comprehensive share repurchase database for companies in selected JSE-listed sectors for the first 11 years (i.e. 1999 to 2009) since share repurchases were first allowed in this country. Share repurchases were found to be a popular payout method, especially in the more recent periods covered in the study. Payout value was dominated by a few companies paying dividends every year and regularly repurchasing shares. Aspects unique to the South African regulatory environment, however, resulted in the South African share repurchase experience not fully mirroring current global practice. The main constraint in the South African share repurchase environment is that comprehensive, actual-time-based share repurchase data are not available. Recommendations are made on how to align the South African regulatory environment with global best practice. Regulatory changes, as well as continued research in the field, will equip stakeholders to make informed decisions.

Assessment of critical success factors of business process re-engineering in the Nigerian oil and gas industry

Abstract: Business Process Re-engineering (BPR) is defined as the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures like cost, quality, speed, profitability and services. The purpose of this paper is to identify the critical success factors of BPR implementation, to evaluate their effects on the primary measures as expressed by the operational performance and the secondary measures as expressed by the organizational performance, and to find out the effect of the operational performance on the organizational performance of Nigerian oil and gas companies. To achieve these objectives, an empirical study was conducted via the administration of 650 self-administered copies of questionnaire to a randomly selected senior and management staff of eight (8) re-engineered Oil and Gas Companies in Nigeria. Using the framework from Khong & Richardson (2003), factors manifesting operational performance and organizational performance were regressed on the Critical Success Factors (CSFs) manifesting successful BPR. Findings based on the survey revealed that successful BPR can positively affect both operational and organizational performance measures in the Nigerian oil and gas companies.

The relationship between HRM practices and the service performance of student interns

Abstract: This study aims to examine the relationship between human resource management (HRM) practices and the service performance of student interns Data were collected using a questionnaire survey that was designed to capture the perceptions of human resource managers and internship supervisors from international tourist hotels in Taiwan The structural equation model (SEM) was used as a framework for the data analysis The findings indicate that the service performance of student interns was greatly affected by HRM practices, including recruitment and selection, rewarding quality, and retention The implications of this study offer preliminary insights into the industry-academia co-operation that aims to manage total quality initiatives in the hotel industry and achieve the goals of hospitality higher education The study lays the groundwork for the development of HRM practices for student interns to cope with the changing flexible labour structure in the hotel industry

E-commerce applications in the tourism industry : a Tanzania case study

Abstract: Tourism which is regarded as information intensive sector is the mostly affected sector by technology revolution and its traditional trading structures have been totally changed. The adoption and use of e-commerce in tourism sector is regarded as a tool to widen market reach and improve efficiency and effectiveness of business operations. The degree of impact of e-commerce use on business performance depends on the intensity of its usage in organization’s key value-chain activities. However, the intensity of e-commerce use is influenced by technological, organizational and environmental (TOE) contextual factors. Based on TOE model and the existing literature on post-adoption use of e-commerce, a set of factors that affect the intensity of e-commerce use in Tanzanian tourism sector was identified. A survey was conducted with 181 Tanzanian tourism firms that have already adopted e-commerce and structural equation modeling (SEM) was used to analyze the data. The findings indicated that the scope of e-commerce use has a positive impact on business performance in terms of improved internal processes, competitive position, customer service delivery, overall business performance and increased customer base. The scope of e-commerce use is affected positively by pressure intensity and perceived benefits and negatively by barriers to e-commerce use. The findings have highlighted key areas that require immediate actions from both the government and private sector in order to promote a successful growth of e commerce in the country.

Segmentation by motivation of tourists to the Kgalagadi Transfrontier Park

Abstract: The Kgalagadi Transfrontier Park is one of South Africa’s unique attractions for national and international tourists. However, little research has been done on visitors to transfrontier parks. In addition marketers highlight the importance of understanding the reasons why people travel and who these tourists are. Therefore the aim of this article is to segment the market of the Kgalagadi Transfrontier Park by means of visitors’ travel motives. This was achieved by means of a survey. In the statistical analysis, 414 questionnaires were used and the survey was conducted from 2010 to 2012. The statistical analysis included a factor analysis and ANOVA. Four factors were identified through the factor analysis namely escape, education and recreation, park attributes and exploration. The latter was unique to this research since it has not been found in other studies. The ANOVA confirmed that a wide variety of variables influence the decision-making process and that the marketing strategy should focus on different methods and events to attract a greater market.

Exploring the theoretical link between cultural and emotional intelligence: A system analysis for human resource management

Abstract: In light of increasing globalisation and a changing workforce, the ability to bridge cultural fissures separating diverse groups will be increasingly critical to sustained work place well-being, especially with relation to global competitiveness and economic growth. This article explores the link between cultural and emotional intelligence in an effort to investigate the possibility of measuring, developing, and effectively managing individual responses to cultural influences that give rise to significant tension within the organisational context. Since South Africa’s heterogeneous workforce is characterised by culturally diverse group interaction, the conceptualisation of a cross-cultural facet of intelligence with emotional-management as reciprocal component has practical implications towards optimal intercultural organisational harmony, effective globalised interaction and overall group-dynamics.

The relationship between HRM practices and the service performance of student interns : industry perspective

Abstract: This study aims to examine the relationship between human resource management (HRM) practices and the service performance of student interns. Data were collected using a questionnaire survey that was designed to capture the perceptions of human resource managers and internship supervisors from international tourist hotels in Taiwan. The structural equation model (SEM) was used as a framework for the data analysis. The findings indicate that the service performance of student interns was greatly affected by HRM practices, including recruitment and selection, rewarding quality, and retention. The implications of this study offer preliminary insights into the industry-academia co-operation that aims to manage total quality initiatives in the hotel industry and achieve the goals of hospitality higher education. The study lays the groundwork for the development of HRM practices for student interns to cope with the changing flexible labour structure in the hotel industry.

Ethical leadership and employee-organisational outcomes in the hotel industry

Abstract: Ethical leadership has been attracting attention of different kinds. While the concept is still in its infancy, contribution from all aspects of business and management is required to examine the cross-sectional, cross-cultural applicability to provide further insights. Attempts have been made to theoretically and empirically examine the relationship between ethical leadership and several outcomes (e.g. job satisfaction, organisational commitment), however, most of these studies have been conducted in western countries. This calls for further analysis of this particular leadership style to fill the existing gap and enrich the literature. Using 183 samples from middle managers/supervisors in the hotel industry in Malaysia, the present study found that ethical leadership is positively and significantly related to both job satisfaction and organisational commitment among these middle managers, which then resulted in negative turnover and positive organisational citizenship behaviors amongst them. While, contributing significantly to the current literature on ethical leadership in the hospitality industry, this research also provides support for the notion of constructive consequences of leaders becoming role models in their organisations by following ethical standards in their behaviors and decision-making process.

Examining the relationship between corporate governance and bank performance in Bangladesh

Abstract: Previous research has studied the impact of corporate governance on bank performance, but only a few aspects of the impact were reported. The present study develops a unique corporate governance index to provide a comprehensive measure of corporate governance and examines the relationship between this comprehensive measure and bank performance. We apply the Wilcoxon signed rank test to examine whether the introduction of the Code of Corporate Governance in Bangladesh has significantly promoted the improvement of corporate governance practices in Bangladeshi banks. Our results provide support for the hypothesis that corporate governance practices of Bangladeshi banks have been significantly improved since the introduction of the code. Further, the present study adopts regression analysis and reveals that the comprehensive measure of corporate governance is not significantly related to Bangladeshi banks’ performance.

Risk and return characteristics of environmentally and socially responsible firms in Spain during a financial downturn: 2008–2011

Abstract: The onset of the global financial crisis in 2008 undermined trust in financial markets, with immediate damages to businesses and enduring negative effects for numerous national economies. The situation also has endangered progress in terms of investments in environmental and social management (ESM) issues, because managers may be more likely to embrace the misguided notion that such investments represent a non-returnable costs that will hinder firms’ financial performance. Yet ESM is needed now more than ever, because “doing good and doing well” messages are highly appreciated by stakeholders and can substantially improve a firm’s competitiveness. This article analyzes the performance of the Spanish FTSE4Good IBEX index, compared with that of the Spanish IBEX 35 index, during the financial crisis and reveals slightly better performance for the former. Thus, considering the difficult financial context, indicators of good environmental and social performance, among other factors, might have positive effects on stock index performance. The findings offer some key implications for managerial practice.

Managing visitors’ dining and retail experiences in South African national parks

Abstract: In the light of the issue of declining government funding of South African National Parks (SANParks), as well as the negative influence of the poor service levels in shops, restaurants and eating facilities in these parks on visitor spending, SANParks needs to improve the retail and dining experiences at these facilities. This research attempts to provide guidelines for SANParks management in addressing these issues, by determining visitors’ retail and dining preferences and the relationship between these constructs. Quantitative research was conducted in 2011 using a web-based survey on the SANParks’ official website for two months (1st October – 30th November). This method resulted in obtaining 5 464 usable responses for the study. Factor analyses identified three relevant dining experience factors: Quality, Variety and value and Nature ambience and four retail experience factors: Goods and services , Pricing (consisting of two separate constructs: Expensive shops and Pay more inside Park ) and Quality . To the best of the authors’ knowledge, this was the first time that research was conducted with regard to addressing visitors’ retail and dining preferences at any South African national park, thereby contributing significantly to literature regarding visitor experiences in a nature-based context.

Promoting entrepreneurial potential in adolescents : a pilot study based on intergenerational contact

Abstract: Recently there has been an increasing interest in promoting entrepreneurship among undergraduates, however, there have been few studies focusing on adolescents. The two aims of this research were to demonstrate the reliability and validity of the Attitudes to Entrepreneurship (ATE) test with a sample of Spanish adolescents, and to study the effect of using an intervention based on intergenerational contact on the entrepreneurial potential of young people. Two studies were carried out with these objectives. The results from Study 1 confirmed the reliability of the ATE test; entrepreneurial potential was related to achievement motivation and affected by gender. In Study 2, we used an experimental and control groups design and pre and post-test measures. In the classroom context, older adults were interviewed by students about their life and work experiences. Entrepreneurship was increased by the intergenerational contact in the experimental group, specifically, in the Leadership, Creativity and Achievement factors, in boys. Achievement motivation in the academic context also was increased. The intergenerational contact based on emotional implications and active participation promotes latent entrepreneurship and academic interest.

Advertising vs. R&D : relative effectiveness on brand equity

Abstract: This study examines whether advertising can contribute directly to brand equity and, if it can, determines how much value advertising can deliver to brands and firms using the secondary data from various sources. The findings show that advertising can not only work to improve market performance measures but also to develop and maintain brand equity. R&D is also found to positively affect brand equity. With regard to the relative effectiveness of advertising and R&D, R&D is more effective than advertising in contributing to brand equity when measuring absolute effects of expenditures. When measuring simple changes in brand equity, however, changes in advertising are more effective than changes in R&D.

The perceived influence of the elements of internal marketing on the brand image of a staffing agency group

Abstract: The main purpose of the study on which this article is based was to determine the influence of internal marketing on service quality as a means of improving the brand image of staffing agencies. The population of the study was the public staffing industry in South Africa. The sampling unit was the clients of a selected staffing brand. The selected sample of respondents was surveyed through an online self-administered survey distributed via a link in an email. The data was analysed using multivariate regression statistics. The application of an internal marketing approach enables staffing agencies to minimise employee turnover and increase service quality and performance, aiding staffing agencies to gain strong brand images that result in higher levels of competitiveness and profitability. Successful internal marketing should have a positive influence on employee attitudes and actions and therefore enhance customer satisfaction and service quality. The integration of internal marketing into the organisation's overall marketing strategy is therefore critical. The purpose of such a strategy can be to ensure that the organisation recruits and trains employees to deliver on the values of the brand in order to ensure that staffing agencies strengthen their brand images.

Internal branding with corporate ethical values and corporate social responsibility : the case of the life insurance industry in Taiwan

Abstract: The purpose of this study is to identify the extent to which corporate ethical values and employee-oriented CSR can be employed as business levers of internal branding for the life insurance industry. Our results indicate that the impact of corporate ethical values on internal branding benefits is fully mediated by knowledge dissemination, and that the impact of employee-based CSR on internal branding benefits is partially mediated by knowledge dissemination. Therefore, for life insurance companies, employee-oriented CSR can be considered an independent lever of internal branding and can be conducted without other auxiliary initiatives to induce internal branding benefits.

Competition in the South African manufacturing sector: An empirical probe

Abstract: This paper empirically probes competition in the South African manufacturing sector using the latest published data on the industries of this sector released by the national statistical office. It is found that enterprise behaviour in this sector is governed by competition where the negativity between industry concentration and its linkages with output, employment, labour productivity, profit margins, rates of return, investment, and producer prices, has more to do with the limiting of rivalry between enterprises, as opposed to growing concentration promoting by itself poor economic performance. The findings are consistent with earlier investigations. From a managerial perspective, they suggest that while adaptive behaviour by enterprises through imitation or experimental actions is likely to lead to positive profitability, any resultant profit margins and rates of return are ultimately dependant on how successful or decisive enterprises are at innovating if they wish to grow their output, raise labour productivity, invest and employ more, as well as secure the demand-inducing prices commensurate with their innovative record. Thus the success of an enterprise rests on its ability to innovate.

Online-mobile service cross-channel cognitive evaluations in a multichannel context

Abstract: Since the advent of mobile commerce, many firms have added a mobile (m-) service to their existing offline and online services. The adoption of an m-service in a multichannel context is not only influenced by factors directly associated with the m-service, but also by cross-channel cognitive evaluations emanating from other existing channels. These cross-channel evaluations can lead to evaluative synergies and dissynergies that can influence consumer decision-making. To explore empirically the impact of cross-channel synergies and dissynergies between the online service and the m-service offered by the same firm, against the background of expectation-transfer theory and status-quo-bias theory, data were collected from 666 online-service users. Consistent with expectation-transfer theory and status-quo-bias theory, the results of the study demonstrated that cross-channel evaluative synergies and dissynergies do indeed impact salient m-service beliefs. The results suggest that managers can leverage the cross-channel synergies emanating from online trust and ease-of-use beliefs to enhance the adoption of the m-service. The results also suggest that, to enhance wider adoption, the marketing managers of m-services need to mitigate the status-quo-bias effects emanating from online-service facilitating conditions, and lower online-service risk perceptions.

On a mission : achieving distinction as a business school?

Abstract: This paper investigates what business schools are saying in their mission statements and whether they provide a meaningful basis for strategic choice, distinction and differentiation from a positioning perspective; or whether they are the equivalent of "table stakes" in the MBA game - undifferentiated signals that connote legitimacy. Content analysis is undertaken of the mission statements of the Financial Times 2009 top 100 full-time MBA program offering business schools. The statements are mapped and compared in the aggregate and by quartile. We conclude that the statements are for the most part homogeneous and do not serve as a basis for differentiation. However, although achieving distinction through a mission statement may indeed be difficult, it is by no means impossible, and we suggest approaches that business school deans might adopt in an effort to make their brands stand out.

Behavioural factors in the financial decisions of young Mozambicans

Abstract: This paper seeks to analyse how behavioural factors influence the financial decisions of young Mozambican investors. The standard theory of finance assumes investors make rational financial decisions, seeking to minimise risk and maximise their expected utility. However, several studies have been conducted criticizing the assumption that investors are rational, opening the way to behavioural finance theory. According to the behavioural finance approach, financial decisions made by individuals are not based on rational thinking and their risk taking behaviour depends on their beliefs or feelings. Our analysis reveals that young Mozambicans are risk averse towards certain gains and risk lovers when faced with certain losses; they are excessively optimistic about the future; they use the information available as an anchor for their estimates; and they are so overconfident that they believe estimates in uncertain situations to be more accurate than they really are.

Employee retention in the Malaysian banking industry: Do flexible practices work?

Abstract: The objective of the study was to determine whether employee retention in Malaysian banks can be improved through flexible working. Using a quantitative approach, the effects of five types of flexible working practice, i.e. flex time, job sharing, flex leave, flex career and flex place, on employee retention were examined. The results suggest that only flex time has a positive significant effect on employee retention, while the effects of other flexible practices are unstable. Unlike most studies which generally demonstrate the positive effects of flexible working on employee retention, the current one indicates that the effectiveness of each flexible practice is influenced by contextual factors. These findings underline the importance of further studies comparing societies of different cultural, political, economic and technological backgrounds. They have also raised the need to re examine human resource management and organizational culture in the Malaysian work environment. Challenges lie in developing a flexible environment which values continuous learning, trust, accountability and strong corporate governance.

The influence of cell phone users' relationship intentions on expectations and perceptions of service recovery

Abstract: With the first-time cell phone user market quickly shrinking, it is becoming increasingly important for South African cell phone network providers to retain customers by building long-term relationships with them and consistently offering quality service. Despite cell phone network providers' best intentions, service failures do occur. Not all customers want to build relationships with cell phone network providers, and therefore it is important to consider the influence of customers' relationship intentions within a service failure and recovery setting. The purpose of the study was to determine the influence of relationship intention on expectations and perceptions of two service recovery scenarios within the cell phone industry. Non-probability convenience sampling was used to collect data from 605 cell phone users residing in Gauteng. Results indicate that as respondents' relationship intentions increase, so do their expectations that their cell phone network providers should take service recovery action. It was also found that respondents with high and moderate relationship intentions perceived service recovery strategies of their cell phone network providers including an acknowledgement, apology, explanation and rectification of the problem more favourable, compared to a service recovery strategy only rectifying the problem, than those respondents with low relationship intentions.

Network-based resources for the innovation process of South African micro-entrepreneurs : a conceptual framework

Abstract: The paper explores the social networks of South African micro-entrepreneurs in order to understand the socially-embedded resources that micro-entrepreneurs apply towards their innovation process. The paper posits that the social capital embedded within the network of a micro-entrepreneur is activated by the demands of the innovation process to generate other forms of resources by which the innovation process is facilitated. Analysing empirical data collected via in-depth interviews of urban micro-entrepreneurs in the Johannesburg metropolitan area, the analysis conceptually organizes these various forms of socially embedded resources into an original framework referred to as Network Diversity Value (NDV). Two central dimensions frame NDV – the orientation of the innovation process and the form of the emerging resource. The interaction of these dimensions reveal a variety of network-based resources perceived as valuable, and suggest a greater degree of complexity and nuance in the South African micro-entrepreneur’s innovative process than that which common discourse conveys.

Research on brand extension feedback effects based on customer equity

Abstract: As a strategy for enterprises to expand the scale of their operations, brand extension could also generate feedback effect diluting parent brand's customer equity. This study proposes and estimates a theoretical model examining the influence of brand extension on the drivers of parent brand's customer equity, namely value equity, brand equity, and retention equity using data of 850 questionnaires from ordinary consumers in China. The model indicates whether the drivers of a parent brand's customer equity change after brand extension, and how fit and consumer evaluations of brand extension influence the drivers of the parent brand's customer equity. The results show that firstly brand extension influences the drivers of parent brand's customer equity, secondly fit and consumer evaluations of brand extension directly affect the drivers of parent brand's customer equity, consumer evaluations also perform an intermediary function between fit and the drivers of parent brand's customer equity. Finally, this paper talks about managerial implications of the finding. Limitations and suggestions for future research are also discussed.

Preferred attributes of entrepreneurial opportunities : a conjoint and cluster analysis study

Abstract: This paper builds on opportunity-based conceptualisations of entrepreneurship that focus on the identification and exploitation of opportunities. The study investigates the importance of factors when evaluating opportunities and identifies distinct clusters of preferences for differing opportunities. Based on a conjoint analysis where importances and part worth utilities were calculated when assessing an entrepreneurial opportunity, significant differences appear in the importances associated with the business sector, capital intensity, technology maturity, market potential and return on investment potential. Moreover clustering is dependent on gender, academic background and principal work experience of respondents. A holistic conclusion of this study confirms not only that both opportunity dimensions and demographic factors are important, but that identifying levels of differences and differences in the degree of importances with unique constellations therein, is fundamental in understanding opportunity evaluation. The study contributes to the clustering of different types of opportunities to ensure the effective targeting of policies and services by government. Empirical evidence is mounting which demonstrates that there are more entrepreneurial opportunities in developing countries and that the higher number of entrepreneurial opportunities and demand for entrepreneurship in developing countries is indeed matched by higher rates of opportunity-driven entrepreneurs entering the market.

The impact of regulatory fines on shareholder returns

Abstract: Corruption has been shown to undermine the efficiency of market-based economies by allowing participants to profit from illegal rent-seeking activities, which decrease public support for business and increase the cost of capital (Zingales, 2015). Over the past decade, the Competition Commission in South Africa has investigated and issued punitive fines amounting to around R8bn to companies engaged in non-competitive behaviour. Using event study methodology, we examine the impact on the share prices of listed companies upon the announcement of an investigation, a fine, and the payment of the fine. We find that shareholder returns were unaffected at the initiation and payment stages of the process, but that the returns were positively affected at the conviction stage. A buy-and-hold longitudinal study was also undertaken to determine if an ex-post portfolio consisting of stocks of convicted companies out-performed an equal-weighted all share benchmark, as well as a portfolio of matched companies which had not been fined. The results reveal that both the portfolio of fined companies and the matched portfolio of non-fined companies out-performed the market benchmark over a 24-year period. However, the portfolio consisting of convicted companies underperformed the portfolio of companies which had not been fined. We conclude that the market anticipated the fines and that the quantum of fines levied was less than expected. We also find that the non-competitive behaviour of convicted companies did not benefit their shareholders in the long-term.