Showing papers in "Southern African Business Review in 2009"

The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders

Abstract: A review of the literature reveals that strategy implementation is an important component of the strategic management process. Research indicates that the ability to implement a strategy is viewed as considerably more important than strategy formulation, and that strategy implementation, rather than strategy formulation, is the key to superior organisational performance. However, the high failure rate of strategy implementation efforts is well documented, and many barriers to effective strategy implementation exist. A lack of leadership, and specifically strategic leadership, at the top of the organisation has been identified as one of the major barriers to effective strategy implementation. In turn, strategic leadership is also viewed as a key driver to effective strategy implementation. In the light of the identified problem, the primary objective of this study was to investigate the perceived role of strategic leadership in strategy implementation in South African organisations. The conclusion is that strategic leadership positively contributes to effective strategy implementation in South African organisations.

The relationship between organisational culture and organisational commitment

Abstract: A review of the literature reveals that organisational culture can KDYHDQLQ�%XHQFHRQWKHRUJDQLVDWLRQDOFRPPLWPHQWWKDWHPSOR\HHV� demonstrate. The focus of this study is an investigation of the relationship between organisational culture and organisational commitment in a South African motor manufacturing organisation. The empirical study involved the participation of 371 respondents in an organisation. A survey was conducted using the organisational commitment scale and the organisational culture questionnaire to determine the relationship between organisational culture and organisational commitment. The results suggest that organisational FXOWXUHKDVDQH�#HFWRQRUJDQLVDWLRQDOFRPPLWPHQW��5HFRPPHQGD� tions are made to successfully implement both organisational culture and organisational commitment change initiatives.

Psychological career resources and subjective work experiences of working adults: an exploratory study

Abstract: The objective of this study was to determine the relationship between the psychological career resources (as measured by the Psychological Career Resources Inventory) and the subjective work experiences of a sample of working adults (as measured by a fouritem global work experiences scale). The research also aimed to explore broad trends regarding how the participants diff ered on these variables in terms of their socio-demographic characteristics (marital status, educational level, age, gender and race). A sample of 2 997 working adults, registered as students at a South African higher distance education institution, participated in this study. Stepwise regression analyses indicated dimensions of psychological career resources as signifi cant predictors of the four subjective work experiences: life satisfaction, job/career satisfaction, happiness and perceptions of work as a valuable activity. The results further indicated signifi cant diff erences between participants with regard to their socio-demographic characteristics and their psychological career resources and subjective work experiences. Considering that the employment equity context in South Africa contributes to a more diversifi ed workforce, the fi ndings add valuable new knowledge that can be used to inform organisational career development practices concerned with promoting experiences of psychological career success.

Talent management: An empirical study of selected South African hotel groups

Abstract: This article sheds light on the use of talent-management practices in some of the major hotel groups in South Africa. Growing numbers of organisations globally as well as in South Africa are embracing the concept of talent management, as it has a major impact on the company’s competitive advantage. Results reported in the 2008 Travel & Tourism Competitive Report issued by the World Economic Forum (WEF 2008) indicate that as far as the Human Resources dimension of companies in this industry in South Africa is concerned, they fare fairly poorly. As this industry is people intensive, a closer investigation of this aspect was necessary. The research was undertaken in a subcomponent of the tourist accommodation industry, namely hotels. A cluster of 14 hotel groups, representing 33 995 hotel rooms (approximately 77% of all the hotel rooms in South Africa) participated in the survey. Despite the negative finding of the WEF, the results indicate that the hotel groups to a large extent apply the principles underlying talent management within their companies. However, some problem areas do exist, and recommendations are made in this regard.

The availability and use of competitive and business intelligence in South African business organisations

Abstract: Business intelligence (BI) plays a critical role in providing actionable intelligence to enable good business decision-making. International research shows clear evidence of the benefi ts of implementing sound BI practices. However, within a South African business context, an understanding of the practice, impact and benefi ts of BI is only partly addressed by existing research. Consequently, this article presents the most salient fi ndings of a recent BI study, which was one of the few such studies that have been conducted in South Africa in the 21st century. Although the discussion refl ects fairly high general satisfaction levels with BI among South African businesses, some problems related especially to external BI dimensions are highlighted. An equally important and major concern raised by the article is the apparent lack of companies capitalising on BI opportunities and coordinating BI functions eff ectively. Of concern at the general management level, in particular, are the low satisfaction levels with BI quality, as well as various aspects of BI collection, analysis and dissemination. Despite the fact that businesses use BI functions and planning support software, the survey fi ndings reveal insuffi cient investment in sophisticated BI analysis tools.

A marketing perspective on choice factors considered by South African first-year students in selecting a higher education institution

Abstract: The unstable and turbulent environment in which higher education institutions all over the world currently have to operate poses many management and marketing challenges to such institutions. As non-profit organisations, the ability of higher education institutions to survive and grow would be enhanced by up-to-date knowledge and information regarding the higher education environment, and more specifically by having marketing and communication strategies that might influence students making decisions on which university to to enrol at. The main goal of this study was to investigate the relevant importance of the choice factors that prospective students considered, as well as the sources of information used in the decision making process when they decided to enrol as first-year Economic and Management Sciences students at a higher education institution in South Africa. A non-probability convenience sample of 1 500 students from six higher education institutions participated in the study. The findings of the study indicate that quality of teaching and employment prospects ranked the highest as choice factors. The word-of-mouth influence of parents, siblings and friends were the least influential factors. Campus visits and open-days are the most valuable sources of information for prospective students. Advertisements on television or in the printed media are not considered to be particularly valuable sources of information.

The influence of service failure and service recovery on airline passengers’ relationships with domestic airlines : an exploratory study

Abstract: Service failures and the subsequent service recovery eff orts of an organisation can have a profound eff ect on customers’ satisfaction with an organisation as well as on the quality of the relationship with the organisation, despite other eff orts by the organisation to build long-term relationships with its customers. Airlines in particular are faced with several challenges aff ecting their survival, and one such challenge is the fact that they are particularly susceptible to service failures. This study investigates the eff ect of service failures and an airline’s service recovery eff orts on their customer relationships and future patronage of the airline. Data were collected from passengers fl ying with South African domestic passenger airlines departing from OR Tambo International Airport. The fi ndings indicate that customer satisfaction with an airline’s service recovery eff orts signifi cantly infl uences their relationship with the airline as well as their future patronage of the airline. Dissatisfi ed respondents indicated that their relationship with the airline was weakened or broken and that they would fl y less frequently or never again with the airline following the service failure. Satisfi ed respondents’ relationships with the airline were unchanged or strengthened, and they fl ew with the airline all the time or as frequently as before the service failure.

Risk tolerance : a perspective on entrepreneurship education

Abstract: A B S T R A C T The field of entrepreneurship in South Africa has certain unique although limiting characteristics, including an unconvincing enabling environment, a weak entrepreneurial culture and an emergent, and therefore limited, body of knowledge surrounding the topic of entrepreneurship. Consequently, entrepreneurship in South Africa does not hold a strong position in terms of entrepreneurial activity and, in fact, is generally approached with a degree of scepticism. At the same time, Maas & Herrington in the Global Entrepreneurship Monitor (GEM) (Maas & Herrington 2006: 12) indicate categorically that an increase in entrepreneurial activity is highly dependent on effective entrepreneurship education. This study confirmed the fact that education per se may increase the current Total Entrepreneurial Activity rate of 5.29% in South Africa, as compared with 14.8% in other developing countries. An aspect of entrepreneurship that is currently not adequately addressed in entrepreneurship education and training literature is that of risk tolerance and risk-taking of the entrepreneur. Debate on whether entrepreneurs exhibit higher risk tolerance than other managers and full-time employed individuals is ongoing and raises the question of whether risk tolerance should be included in entrepreneurship curricula. This study seeks to elaborate on this debate.

Financial literacy : an interface between financial information and decision-makers in organisations

Abstract: Individuals’ decisions and subsequent actions fl ow from their understanding of the surroundings in which they operate. In order to facilitate economic and fi nancial sustainability, individuals need the cognitive ability to understand fi nancial information in the context of these surroundings. The intellectual construct inferred from this encompassing and complex process is fi nancial literacy. The term ‘fi nancial literacy’ consists of the words ‘fi nancial’ and ‘literacy’, both of which are used to represent a myriad of issues that can easily lose their relevance when used together. This article addresses the interface (or gap) between information (matter) and decision-making (mind). The dualism of fi nancial literacy, matter and mind, is explored by means of a literature review and an empirical survey. From the survey, respondents’ perceptions of the fi nancial literacy construct were gleaned. Awareness of fi nancial literacy from the interface perspective promotes a deeper understanding of the concept. Recommendations are made to assist organisations and individuals to overcome fi nancial uncertainties.

Correlates of corporate accountability among South Africa's largest listed companies

Abstract: This paper explores the relationships between a publicly available measure of corporate accountability (the Accountability Rating™) and a range of other corporate variables for the largest 50 companies in South Africa. The rationale for this was to consider empirical evidence for a number of the major theoretical movements in the realm of corporate responsibility. The relationship between accountability and company financial performance was assessed for evidence to support either the stakeholder or slack resources theories. The relationships between accountability and company size and proxy institutional field variables were examined as evidence that institutional fields may represent strong drivers for corporate accountability. Finally, the relationships between accountability and executive remuneration variables were examined for evidence of agency issues. No significant relationships between accountability and financial performance variables were detected, suggesting that neither the stakeholder theory nor the slack resources theory was likely to be a crucial driver of accountability in this sample. Statistically significant relationships between accountability, on the one hand, and company size and the institutional proxies of industry sectors and multiple securities exchange listings, on the other, suggested the centrality of a company's institutional field in motivating socially responsible corporate behaviour. Findings in terms of executive remuneration were ambiguous and justify further investigation.

Academic publishing : lessons learnt from the Southern African Business Review

Abstract: 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 Business Review (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.

Share options as part of executive remuneration: aligning the interests of stakeholders

Abstract: Performance-based remuneration, often in the form of share options, has been endorsed by researchers throughout the world as a way to align the interests of stakeholders and executive management. The wave of corporate scandals raised concerns regarding the design of executive remuneration and the extent to which share options truly align the interests of executive management and stakeholders. This article investigates the impact of share options on managerial behaviour. The article proposes changes at an internal governance level with respect to the remuneration of directors so as to align the interests of the remaining stakeholders. The article also discusses the disclosure of directors’ remuneration. The article concludes by presenting a summarised best practice framework.

Black economic empowerment progress in the advertising industry in Cape Town: Challenges and benefits

Abstract: A B S T R A C T Black economic empowerment (BEE) aims to enable black people in South Africa, as legislatively classified, to make a noteworthy contribution to the local economy by irreversibly altering the racial profile of ownership, management echelons and all employment levels of existing and new organisations (SA dti 2004: 4–5). The transformation process in South Africa has been a lengthy and complex one, with the government gradually enacting enabling legislation. The advertising industry has been criticised for its slow empowerment advancement, which led to two parliamentary hearings in the early 2000s to investigate allegations of racism and poor transformation progress. The Association for Communication and Advertising (ACA) has been the main driving force of transformation within the South African advertising industry, but there have been few studies that have effectively investigated transformation and BEE progress within this industry over recent years. Therefore, the main objective of this study was to explore progress made by advertising agencies towards transformation in Cape Town, as well as the challenges and benefits that result from implementing BEE measures. The aforementioned was thoroughly examined by utilising a multiple case study approach and by interviewing the top 12 traditional fullservice advertising agencies in Cape Town.

Franchisee satisfaction among food franchisees : an exploratory study

Abstract: In the context of franchising, the relationship between the franchisor and the franchisee is critical to the success of the individual franchise, as well as to the success of the franchise system. Food franchising is an area of franchising that continues to grow rapidly in South Africa. This rapid growth has a number of consequences, including increased competition and an increase in the number of outlets being opened. The focus of this research is on the satisfaction experienced by franchisees in their current franchise system. The research was conducted among food franchisees throughout South Africa. The sample was a convenience sample, and the data were collected through the use of an electronic (Web-based) questionnaire. The respondents were contacted by means of an e-mail containing the link, once permission had been obtained from the franchisor. The majority of respondents reflected an average or higher overall rating of their franchise. The key findings of the study indicated that the majority (93.5%) of the respondents rated their franchise system as average or better, and the majority of respondents believe that the franchise is the best they could have bought. Support, territory, royalty payments, communication between the parties and the terms of the franchise contract were all perceived positively. The respondents indicated that they were proud of the franchise brand that they had purchased, as well as its relative position in the market. The franchisees indicated issues concerning their financial expectations of franchisees, and responses regarding the franchisee representative council and training offered to franchisees.

The assessment of the family vision generation process in small and medium-sized family businesses

Abstract: The objective of this study was to assess the family vision generation process in small and medium-sized family businesses. Data from 489 questionnaires administered to 79 family businesses were collected and analysed. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Three factors with eigenvalues greater than one were extracted, explaining 61.93% of the variance, describing the theoretical dimensions of the generation of the family vision, the commitment of the younger generation family members to family business continuity and the commitment of the senior generation family members to family business continuity. The results of this study indicate that a signifi cant proportion of the variation in the generation of the family vision is explained by the commitment of the senior and younger generation family members to family business continuity. No practically signifi cant diff erences in the mean values could be found between the three extracted factors and the demographic variables in this study. Recommendations are off ered to utilise the questionnaire as a measuring instrument. Practical recommendations are suggested to ensure an eff ective family vision generation process in small and medium-sized family businesses.

The perceived success of teambuilding interventions in South African organisations

Abstract: In the wake of the importance attached to teams, teamwork and teambuilding in modern organisational life, this study reports on whether participants perceive teambuilding interventions as successful or unsuccessful, and reports on the relationship between respondent characteristics and the perception of teambuilding success. These aims were examined in two phases, namely by developing ten hypotheses and by testing these hypotheses. Hypotheses were stated in the positive, namely that a relationship exists between the

South African training officers' perception of skills requirements for entry-level trainee accountants

Abstract: Given the rapid pace of change, the environment in which today's accountants work has become far more demanding. In response to these demands, accountants are having to upgrade their skills and, in particular, to become highly computer literate and acquire skills such as communication, analytical and interpersonal skills. The objective of this study was to determine the perceptions of training officers of the levels of these skills and computer capabilities among entry-level trainee accountants. For all nine information technology (IT) capabilities identified, the expectation was that entry-level trainee accountants would have had at least average exposure, namely the ability to use the IT application under supervision. All the listed skills (namely, communication, analytical and interpersonal skills) were perceived to be important or very important for entry-level trainee accountants, which illustrates that there is a movement towards an expanded set of competencies beyond the technical knowledge typically taught. Independent statistical tests revealed that the perceptions of respondents of the IT capabilities and identified skills for entry-level trainee accountants did not differ significantly with respect to training inside public practice (TIPP) and training outside public practice (TOPP). Only two instances where found where significant disagreement between TIPP and TOPP respondents' perceptions existed, namely for the IT capability of audit working paper-related software and for the analytical skill of analysing business problems.

Deriving projects from the organisational vision using the Vision-to-Projects (V2P) Framework

Abstract: Organisations initiate and execute projects at an ever-increasing rate in order to achieve their strategic intentions. Many of these, however, find it difficult to measure the contribution that these projects make towards the realisation of the organisational vision. In order to effect these changes in a cumulatively beneficial way, a holistic approach is needed. The Vision-to-Projects (V2P) Framework was developed to facilitate such an approach and can be applied to all organisational types. This article shows how participatory action research was applied in the development of the V2P Framework. While largely validating the theoretical framework, it did indeed reveal several beneficial modifications to improve its applicability. The main results of this research are twofold. It firstly provides organisations with a framework that can be used to derive projects from the organisational vision and strategies, thereby ensuring continuous alignment. Secondly, it shows the successful use of participatory action research in the field of project management that has been dominated, thus far, by quantitative research methods.