Acta Commercii (12/06/2013)

The economic value of the 2010 Soccer World Cup

2013-06-11T13:30:07Z

Author: Saayman, M. Rossouw, R.
Vol 8
Publication: 2008
Page: 1-14
Abstract: Purpose: The purpose of this article is to estimate the potential economic value of the 2010 Soccer World Cup for South Africa.
Problem investigated: The Soccer World Cup (SWC) is regarded as the largest sporting event to be hosted and South Africa is investing billions of Rand in the hosting thereof. Based on this the question that comes to mind is, what is the potential economic value of such an event? Previous research attempts to determine the economic value were limited in their focus on what should be included when economic modelling of events is conducted. Most of these studies were done by consultants on behalf of various government departments and consequently, the results of these attempts are criticised for their over-inflating and overestimations by various other researchers.
Methodology: The literature review identified many aspects that need to be taken into account when modelling the economic impact of such an event together with aspects identified in the literature review. Lessons from the 2002 Korea/Japan and 2006 Germany Soccer World Cups were used as premise for our estimations. In this article, Computable General Equilibrium (CGE) modelling is used to estimate the potential economic value.
Findings: The results showed that the 2010 Soccer World Cup would in all probability have positive impacts on the economy of the country in terms of GDP growth and employment, with possible negative effects that include higher inflation and net export losses.
Value of research: The value of this research lies in the approach that was followed firstly, by introducing lessons learned from previous World Cups as well as aspects not taken into consideration previously in economic modelling and secondly, by using CGE modelling in determining the economic value.
Conclusion: The hosting of the 2010 Soccer World Cup is a major achievement not only for South Africa, but also for the rest of Africa, especially from a marketing point of view. From an economic point of view, this study shows positive results. However, compared to other studies conducted on the 2010 SWC, the findings are more conservative. The latter is supported by the results of a similar study conducted one year after the 2006 Soccer World Cup in Germany supporting the notion that various variables have to be taken into account when economic modelling for hallmark events is done.

Employee performance, leadership style and emotional intelligence : an exploratory study in a South African parastatal

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Author: Hayward, B.A. Amos, T.L. Baxter, J.
Vol 8
Publication: 2008
Page: 15-26
Abstract: Purpose: The purpose of this research is to explore the relationship between employee performance, leadership style and emotional intelligence in the context of a South African parastatal.
Problem Investigated: There is a lack of literature and empirical research on the type of leadership required to achieve high levels of employee performance within South African parastatals.
Methodology: The Multifactor Leadership Questionnaire (MLQ) was used to determine leadership style, while the Emotional Competency Profiler (ECP) was used to determine the emotional intelligence of the sample of leaders. Employee performance data was provided by the parastatal, based on their performance management system. Data was analysed using correlation analysis, multiple regression analysis, the standard regression ANOVA/F-test, t-tests and Cronbach alpha reliability coefficient.
Findings: The findings of the research show that the ECP is a reliable measure of emotional intelligence and that while the MLQ is a reliable measure of transformational leadership, it is not a reliable measure of transactional leadership. The results of the correlation analysis show a positive significant relationship between emotional intelligence and transformational leadership and a negative significant relationship between employee performance and emotional intelligence. The results of regressing employee performance on emotional intelligence and transformational leadership show that emotional intelligence and transformational leadership have no significant effect on employee performance. The results of the regression models of the research could be biased by the lack of variance in employee performance data.
Value of the Research: The value of the research lies in it confirming the MLQ as a reliable measure of transformational leadership and the ECP as a reliable measure of emotional intelligence. The finding of a positive significant relationship between emotional intelligence and transformational leadership is a valuable contribution to the literature.
Conclusion: Although a positive significant relationship between emotional intelligence and transformational leadership was found, there is a need for further research to determine the type of leadership best suited to achieve high levels of employee performance within the parastatal.

Developments and reforms in small business support institutions since 1996

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Author: Molapo, S. Mears, R.R. Viljoen, J.M.M.
Vol 8
Publication: 2008
Page: 27-40
Abstract: Purpose / objectives: The aim of the paper is to investigate the successes and shortcomings of the support services provided by the different Small Business Support institutions during the period 1996 to 2003. It also evaluates the recent developments in these Small Business Support institutions.
Problem investigated: Many small businesses are still excluded from funds and support from Small Business Support Institutions. The paper investigates the extent to which these institutions provided financial as well as non-financial support to SMMEs in South Africa during the period 1996 to 2003. The paper further explores the changes in the legislation in 2004 in this regard, and explains how it intends to extent support to SMMEs.
Design / Methodology / Approach: The paper assesses the small business development policy framework in terms of the functions and assistance of the Small Business Support institutions. Secondly, it analyses the microeconomic evaluation of the services provided for the period 1996 to 2003. This is followed by a macroeconomic evaluation of the impact of support programmes on employment creation, poverty alleviation and economic empowerment. Lastly, the successes and shortcomings of these support programmes are identified and changes since 2003 discussed.
Findings / Implications: The fact that many SMMEs still do not get support, points to the shortcomings in the support programmes. Most programmes do not cater for the very small and micro-enterprises and most benefits from these programmes benefit SMMEs in urban areas.
Originality / Value: The paper finds an original way to explain the shortcomings of Small Business Support institutions and the lack of data from these institutions since 2003. These institutions must do more than banks and also help those that can not be accommodated by commercial banks.
Conclusion: The Small Business Support institutions must help the very small and micro-enterprises that can not be accommodated elsewhere.

'Hidden messages' emerging from Afrocentric management perspectives

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Author: Van den Heuvel, H.
Vol 8
Publication: 2008
Page: 41-54
Abstract: Purpose: This paper aims to examine how 'African management' discourse has emerged in South Africa. Altogether, it has stimulated debates - sometimes in controversial ways - on 'taboo issues', e.g. relating to 'cultural diversity' and 'ethnicity'. The stimulation of such debates within organisations is probably a more valuable contribution than a static, essentialised 'African identity' that it proclaims.
Design / Methodology / Approach: The paper draws on a qualitative research project conducted in South Africa in 2003-2004. Its relevance lies in gaining in-depth insights into ('non-western') local management discourse. It seeks to contribute to the body of knowledge on political and cultural contexts in which South African organizations operate, and how they impact on local management perspectives, and vice versa.
Findings: The research findings make clear how and under what circumstances 'African management' discourse has come about in South Africa, and how it could be interpreted.
Implications: 'African management' advocates allegedly attempt to revise dominant management thinking and promote 'humane-ness' and participatory decision-making in South African organisations, in search of a contextualised management approach. Amongst others, it has produced new meanings of 'Africanness' and has opened up space for 'hidden messages', resentments and aspirations to become openly articulated. This throws another light on phenomena such as cultural diversity and ethnicity that usually tend to be 'neutralised'. This may turn out to be far healthier for blooming organisational cultures in South Africa than relentlessly hammering on prescribed 'corporate values'.
Originality / Value: This paper informs the reader in detail about the emergence and evolvement of 'African management' discourse in South Africa. It is a unique attempt to develop an interpretative viewpoint on this intriguing phenomenon that offers a potentially valuable contribution in reading cultural and ethnic identities within organisations.

The cotton farming pipeline of Malawi and South Africa : management implications

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Author: Grundling, J.P. Steynberg, L.
Vol 8
Publication: 2008
Page: 55-63
Abstract: Purpose of the study: The purpose this paper is to identify and describe the characteristics and influences of the cotton farming pipeline in Malawi and South Africa.
Problem investigated: A broad based approach was followed to investigate the cotton farming pipeline to identify the major driving forces of the cotton pipeline in each of the respective countries.
Research approach: A qualitative field research approach was followed to compile data on cotton farming in Malawi and South Africa. Data was compiled upstream from input suppliers, downstream from ginners, cotton transport conveyors, cotton marketing managers and agricultural government officials as well as from farmers and agricultural organizations.
Findings: In Malawi a family farming model is followed versus an industrial model of production in South Africa. Despite the differences in approach, the farmers in both countries are faced with similar problems. In this regard, an urgent rethinking of the technological conditions of production and the possibilities of technological change is needed.
Recommendations: The research proposes that these countries can benefit from establishing institutions like agricultural co-operatives and mechanisms like the development of a free traffic mechanism of seed-cotton.
Conclusion: The present research may assist in developing first layer managerial recommendations that could enhance the sustainability and co-existence of cotton farming in the two countries.

A generic taxonomy of shopping motives among hypermarkets (hyper-stores) customers and the relationship with demographic variables

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Author: Dhurup, M.
Vol 8
Publication: 2008
Page: 64-79
Abstract: Purpose of the study: Noting that the motive for shopping is located within the paradigm of buying behaviour of consumers; the study seeks to complement existing literature by examining whether a configuration of shopper motives could be developed, thereby revealing taxonomy of hypermarket (hyper-store) shoppers. In addition the study seeks to establish whether shopping motives is shaped by demographic variables.
Problem statement: Although the motive for shopping and its antecedents has been approached from various perspectives, it has been accentuated in literature that traditional utilitarian aspects of product acquisition explanations may not fully reflect the totality of a shopping experience. With such affirmations, shopping may be harmonised with hedonic activities when considered within a hypermarket/hyper-store South African context.
Methodology: The study adopted a conceptual framework for identifying relatable factors (using exploratory factor analysis) that influence consumer motivation for shopping within hypermarket (hyper-store) environments. Reliability and validity of the scale was established.
Findings: A 13 item scale was developed. Shopping seems to be both a utilitarian and a hedonic consumption experience with three auxiliary categories of hedonic motivations, namely diversion, recreational and sensory stimulated shoppers. In examining the motives for shopping and demographic variables, diversion appears to vary with levels of education.
Value of the research: Enhancing one's understanding of the "softer" issues of shopping, namely diversion, recreational and sensory stimulated shoppers is essential, as they represent possible differentiating factors in a highly competitive and often commoditised retail market. Acquaintance of distinct shopper segments is useful for retailers in assembling marketing communication strategies and designing appealing store environments.
Conclusion: Whilst shopper typologies may hold several advantages in theory and practice for both the consumers and retailers; the study has made an unpretentious and encouraging start in the understanding of hypermarket/hyper-store shopper patronage.

Factors influencing the preparation, support and training of South African expatriates

2013-06-11T13:30:07Z

Author: Vogel, A.J. Van Vuuren, J.J.
Vol 8
Publication: 2008
Page: 80-89
Abstract: Purpose : The purpose of this paper is to determine if the independent variables; location of an international assignment, the age of an expatriate, the duration of an assignment and the management level of an expatriate, influence the preparation, support and training that they require for an international assignment.
Design / Methodology / Approach : This formal, empirical study was undertaken using an electronic questionnaire that was distributed to expatriates who were on an international assignment. Expatriates who were on an international assignment were thought to be in the best position to respond to their preparation, support and training needs.
Findings : The research found that the preparation, support and training required by South African expatriates are not influenced by the location of an international assignment, the age of the expatriate, the duration of an international assignment or the management level of the expatriate.
Implications : The findings highlight the fact that human resource managers of South African multinational enterprises should provide all their expatriates with the same preparation, support and training, as well as identifies five requirements that should be included in all South African expatriate policies.

Day labourers in Pretoria, Windhoek and the United States - a comparison of two capitals and a different world

2013-06-11T13:30:08Z

Author: Schenck, C.J. Blaauw, P.F.
Vol 8
Publication: 2008
Page: 90-102
Abstract: Purpose : The aim of this paper is to compare the economic dynamics of day labouring in two Southern African capital cities, namely Windhoek and Pretoria, against the background of the experiences of day labourers in a developed country such as the United States.
Problem investigated : People waiting at the side of the road, hoping to obtain a piece job for the day, is a typical phenomenon in a situation where people are forced to venture into the informal sector to generate an income. Day labour is a national and international phenomenon that seems to be on the increase. Literature on the similarities and differences across different geographical areas and levels of economic development is limited, however.
Approach : For the purpose of this study, day labourers in Pretoria were the subject of a case study which was compared with studies done in Windhoek and the United States during the same period, namely 2003 to 2004. The general demographics of day labourers in these two cities were investigated, as well as their employment history and the income earned.
Findings and implications : Day labourers in Pretoria and Windhoek were mainly male, fairly young, generally low skilled, earning low and uncertain levels of income and working under harsh conditions. This corresponds to the demographic characteristics of day labourers in the United States. In both the United States and Southern Africa, day labour pays poorly. It was found that day labourers seldom earn more than the subsistence level of income for the respective countries discussed in this paper. A significant portion of day labourers in Pretoria, Windhoek and the United States previously held formal sector jobs. The biggest difference is to be found in the future prospects of day labourers. The opportunity for day labourers in the United States to make the transition into the formal sector of the economy is far better than for their counterparts in Southern Africa.
Value of the research : The paper expands existing knowledge of day labouring as part of the informal labour market. This is important given the significance of the informal sector in South Africa and Africa at large. It provides a comparison between experiences of the same activity in a developed country and in two cities in developing countries, illustrating important similarities and differences in this regard.
Conclusion : Day labour is a complex phenomenon, and a number of problems, violations and abuses may be found in this sector of the labour market. In order to address these issues successfully, the particular set of circumstances facing day labourers in different areas must be accounted for.

Employment creation through public works programmes and projects in South Africa : experiences and potentials

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Author: Thwala, W.D.
Vol 8
Publication: 2008
Page: 103-112
Abstract: Purpose / objectives : The aim of this article is to look at the experiences, problems and the potential contribution of employment creation programmes in alleviating the unemployment problem in other African countries through the construction of public infrastructure through the use of labour-intensive methods. The article then describes the problems and experiences that have been encountered in South Africa in relation to employment creation through the construction of public infrastructure.
Problem investigated : In South Africa the levels of unemployment and poverty are extremely high and unemployment is one of South Africa's most pressing problems. At the same time there is a lack of capacity and skills at institutional, community and individual levels. Labour-intensive programmes generate more direct and indirect local employment opportunities and income by using locally available inputs (materials, simple tools and local labour) and thus creating a greater demand for local products and services than do high-technology programmes reliant on imported technology and equipment.
Design / Methodology / Approach : Drawing on research on labour-intensive, public works programmes and projects, the paper is mainly a literature review. From a theoretical perspective supported by experience elsewhere in Africa, there are reasons for considering that properly formulated employment creation programmes based on the use of labour-intensive methods could be established to construct and maintain the required physical infrastructure, thus creating employment, skills and institutional capacities. The article closes with some recommendations for the future programmes success.
Findings / Implications : The article attributes the failure of projects and programmes in South Africa to different factors which must be avoided in future in order for projects and programmes to be successful in South Africa. Investment in infrastructure has a huge potential to redress the high unemployment and poverty levels in South Africa and also to correct the skill shortages.
Originality / Value : This article challenges the project-based approach and recommends a programme-based approach which is long-term as to address the problem of unemployment and skills shortages in South Africa.
Conclusion : Public works programmes and projects in South Africa should change as the policy environment changes, from relief, emergency to a long-term structured employment-generation programme. The approach should link economic growth, employment and investment policies.

Measuring tourists' satisfaction with quality of life issues at an arts festival

2013-06-11T13:30:08Z

Author: Kruger, S. Petzer, D.
Vol 8
Publication: 2008
Page: 113-127
Abstract: Purpose: The purpose of this paper is to measure tourists' satisfaction with quality of life issues at an arts festival - the Aardklop National Arts Festival in Potchefstroom.
Problem investigated: Understanding satisfaction with quality of life issues could assist Festival organizers and other businesses to improve services for tourists by tailoring these to meet their needs. Satisfied tourists spread positive word-of-mouth communication and are more likely to return in the future.
Methodology: A self-administered survey developed and validated by Neal, Sirgy and Uysal (1999:156 & 2004:245) was fielded at the 2007 Aardklop National Arts Festival in Potchefstroom. The target population included all visitors to the Festival who were staying for two or more days, and who had travelled to Potchefstroom from elsewhere.
Findings and implications: Respondents were satisfied with travel / tourism services and experiences at the Festival, and with their leisure time and life in general. However, certain things at the Festival led to lowered levels of satisfaction. Demographically, respondents did not differ significantly in their levels of satisfaction with travel / tourism services, travel / tourism experiences, leisure life, and life in general at the Festival except in terms of population group and region from which they came.
Organizers of the Festival and other businesses should take cognizance of the fact that all parties involved in providing services to tourists attending an arts festival impact on their satisfaction levels with travel / tourism services and experiences - and ultimately also on their quality of life. Tourists attending the arts festival are not homogenous and differ substantially in terms of their demographic profile. Tourist service providers should tailor their offerings in order to satisfy the varied needs of the different types of tourist attending the Festival.
Originality and value of the research: This research focused on measuring tourists' satisfaction with quality of life issues at an arts festival. Such research has never before been conducted in South Africa; the results contribute to the deeper insight of interested parties (such as the tourism industry and arts festival managers) into what they need to offer at such events.

Entrepreneurs' learning preferences : a guide for entrepreneurship education

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Author: Nieuwenhuizen, C. Groenewald, D.
Vol 8
Publication: 2008
Page: 128-144
Abstract: Purpose : The purpose of the paper is to determine guidelines for effective entrepreneurship education and training, focusing on the development of entrepreneurial skills, based on what successful, established entrepreneurs look like, how they operate and their learning and thinking preferences.
Problem investigated : Entrepreneurial skills training is the difficult part of teaching entrepreneurship and is different from teaching functional and managerial skills related to entrepreneurship. The problem is that training and education focuses primarily on the management and functional business training of entrepreneurs and very seldom on the entrepreneurial skills. This study focuses on the much neglected second leg of entrepreneurship training, as most entrepreneurship programmes focus on the first leg, namely business planning and functions and management skills.
Design / methodology / approach : This is a formal and exploratory study. Two measurement instruments (Schein Career Orientations Inventory and the Neethling Brain Instrument) were used and completed by a sample of 50 entrepreneurs of the identified population. The paper address the entrepreneurship education needs as determined by the learning preferences of entrepreneurs.
Findings : The research indicated that all the essential entrepreneurial skills are seldom addressed in entrepreneurial training. The entrepreneurial skills that need to be incorporated in these programmes are self-concept, creativity and innovation, risk orientation, good human relations; perseverance and a positive attitude. The research also revealed that entrepreneurs have different learning preferences from other students / learners and this should be taken into consideration in the design of entrepreneurial curricula.
Value of research : The paper assist curriculum developers of entrepreneurship education programmes to better align their content to the entrepreneurial skills identified by successful entrepreneurs that need to be developed, and to conduct entrepreneurship education according to the learning preferences of entrepreneurs.
Conclusion : The application of the Garavan and O'Cinneide model regarding the methodology in the education of entrepreneurs can therefore be confirmed and recommended. The results of the career anchor and brain instruments indicate the importance of entrepreneurial skills-training and include training in the following areas : self concept; creativity and innovation; risk orientation; good human relations, perseverance and positive attitude.

Focused training programmes for solving growth problems of very small businesses

2013-06-11T13:30:08Z

Author: Perks, S. Smith, E.E.
Vol 8
Publication: 2008
Page: 145-159
Abstract: Purpose and objectives : The purpose of the study is to investigate the various types of focused training programmes that should be designed for eliminating or preventing small business growth problems. To help achieve this main objective, the following secondary goals are identified :
- To highlight the role and nature of entrepreneurial training.
- To identify possible focused training programmes for solving very small business problems.
- To determine how training programmes should be structured to target very small business growth problems.
- To explore which other method(s), besides training programmes could be uitilised for solving very small black business entrepreneurs' growth problems.
- To provide trainers with guidelines in designing focused training programmes for solving very small business problems.
Problem investigated : South African entrepreneurs have a poor skills record, which inhibits small business growth. The needs of a business changes as the business grows, resulting in growing pains for the very small business entrepreneur. Successful entrepreneurs are not necessarily academically inclined and often learn in a more dynamic, non-linear environment, therefore various specific focused training programmes need to be designed that can assist very small business entrepreneurs in eliminating or preventing small business growth problems.
Methodology : A qualitative study was done, in which an empirical survey was conducted by means of a series of in-depth interviews with ten very small black business entrepreneurs.
Findings : The empirical results identified seven types of training programmes focusing on financial management computer training, operations management, people management, marketing management, management and investment management. Other training programmes indicated were stress management, time management and security management. Within each of these types of training programmes specific focus areas were identified.
Value of the research : The value of the research lies in the fact that specific focus areas were identified within the training programmes. Other studies have attempted to identify training programmes but the content thereof was not necessarily linked to the problems that very small businesses experienced, especially when attempting to grow. Time-, staff- and financial constraints regarding training programmes can be overcome.
Conclusions : Training programmes should focus on specific training areas, be after hours and be well publicised. Computer training should preferably be on site on a one-to-one basis. Training programmes should suit the skills level of the very small business entrepreneurs and be broken up into smaller sessions to ensure understanding and meeting time constraints.

Measuring the inward FDI potential of South African regions

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Author: Krugell, W. Matthee, M.
Vol 8
Publication: 2008
Page: 160-180
Abstract: Purpose : The purpose of this paper is to construct an index that captures the factors expected to affect a local economy's attractiveness to foreign investors.
Problem statement : Following South Africa's reintegration into the world economy in 1994, foreign direct investment has been seen as a potential driver of growth and development. Concerns about the low investment rate in South Africa raise the possibility of augmenting domestic with foreign investment expenditure. The potential of technology spillovers and skills transfer from foreign direct investment have also been emphasised. As a result, Trade and Investment South Africa is involved in identifying, packaging and promoting investment opportunities. However, investments tend to be place-specific and this has lead to the decentralisation of foreign direct investment promotion. Currently the nine provincial development agencies are competing to attract investors and the larger local governments are also getting involved in the fray. This paper argues that some places have better potential to attract foreign investment than others. A first step to use scarce investment promotion resources more efficiently would be to measure the inward FDI potential of South African regions.
Approach : This paper uses principal components analysis to construct an index that captures the factors expected to affect a local economy's attractiveness to foreign investors. This approach draws on UNCTAD's Inward FDI Potential Index and applies it to 354 magisterial districts in South Africa for the periods 1996, 2001 and 2006. The index creates a summary measure of FDI potential.
Findings : The results show that different places present differential potential in urbanization and localization economies and market size. The high-potential locations are typically found in or around the major agglomerations, but there are a few smaller places on the periphery that offer FDI potential.
Contribution : The index should aid the location decisions of prospective investors as well as local policymakers in their efforts to promote FDI-led economic development.
Conclusion : The places with high FDI potential are not randomly scattered across South Africa, but tend to cluster together. Cities and towns can improve their attractiveness to foreign investors through the exploitation of natural resources, population growth, economic growth and strengthening links to metropolitan areas.

Internal marketing strategy : focusing on staff orientation in health care in South Africa

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Author: De Jager, J.W. Swanepoel, S.
Vol 8
Publication: 2008
Page: 181-193
Abstract: Purpose : The purpose of the paper is to determine the levels of satisfaction in respect of pre identified internal marketing-related variables in a large provincial hospital in South Africa.
Problem investigated : Low job satisfaction is often cited as a major cause of high turnover among health care providers worldwide. Likewise the Public Health Care Industry in South Africa is facing complex employee retention issues. In determining the reasons for high turnover an interest in evaluating employee satisfaction among health care providers has increased. Measuring components of job satisfaction will assist not only the health care organisations' management to understand hospital culture, but also to compile an effective internal marketing plan and strategy.
Design / Methodology / Approach : A staff satisfaction survey was conducted amongst staff members at a provincial hospital in the Tshwane region, South Africa. Attitudes of staff on pre-identified staff satisfaction variables were assessed. These variables were employed to implement an internal marketing strategy. A list of variables was formulated after an extensive literature study had been conducted. A total of 416 staff members voluntarily completed a self-administered questionnaire. A five-point Likert type scale was used to measure the levels of satisfaction on staff-related issues, with a view to addressing issues in the internal marketing strategy.
Findings : It was evident that the management principles currently employed by the management team were a cause for concern among staff members. Based on the analysis that identified the satisfaction variables best it was clear that management should take immediate steps to address the following issues :
- Clarification of hospital goals \ objectives;
- Understanding the goals of the respective departments;
- The functioning of the Human resource department;
- Functioning of the overall hospital management; and
Implications : This paper aims to present a comprehensive framework for Provincial Hospital Management to prioritise important staff related issues in order to satisfy their needs. The recommendations of this study need to be applied if acceptable health care is to be provided.
Originality / Value : This study challenges existing internal marketing studies on health care services. Its significance lies in an attempt to establish the needs of diversified health care staff in a health care setting. It offers uniquely South African internal marketing framework that focuses on similarities and differences between medical and nursing staff in a Gauteng public hospital.

Exploring a conceptual measurement instrument to assess performance predictors of small tourism business in South Africa

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Author: Van Zyl, H.J.C. Mathur-Helm, B.
Vol 8
Publication: 2008
Page: 194-207
Abstract: Purpose : The present study was set out to develop a model of entrepreneurial leadership that can recognize success factors of the owners of small and micro tourism enterprises within the South African context. The study attempts to combine various reliable and valid measurement instruments together, in conceptualising a more comprehensive and unified model that could test the nature and extent of the interrelationships between entrepreneurial leadership, market orientation, relationship marketing orientation and small tourism performance identified in a previous study by Van Zyl and Mathur-Helm (2007). Hence, a complex measurement instrument was conceptually constructed by the present study.
Problem investigated : The Van Zyl and Mathur-Helm's (2007) study found that entrepreneurial leadership could best be described through a combination of distinct components. Hence the following instruments, entrepreneurial proclivity, ethical orientation, revised self-leadership, market orientation and relationship marketing orientation, with wide ranging dimensions of entrepreneurship, tourism, marketing and leadership, were brought together in formulating a comprehensive and complex measurement instrument.
Methodology : It is a descriptive and a theoretical article that conceptually describes the development of a complex measurement instrument and thus secondary data from previous studies are used as comparative analysis for discussions and examinations.
Implications : The paper recommends implications for South Africa's small tourism businesses, the government and the training institutions, by suggesting a model of performance predictors that can measure entrepreneurial leadership and can distinguish between successful (performing) and unsuccessful (non-performing) owner-managers of such ventures. Moreover, the instrument is aimed at providing insights into the kind of skills that a particular entrepreneurial leader and / or an owner manager of a small tourism enterprise may need in order to perform optimally in a complex and competitive environment.
Originality and Value of Research : The present study will add immense value as South Africa is one of the most popular tourist destination that stands a good prospect of expanding its opportunities for the existing and upcoming tourism ventures. Hence owners, managers and leaders of small tourism enterprises demonstrating leadership characteristics such as high internal locus of control, autonomy and achievement drive, through awareness of such characteristics and acquiring them through skills development will be able to build high performing future businesses.
Conclusion : The complex measurement instrument constructed in the present study, by combining the existing tools : entrepreneurial proclivity instrument (Matsuno et al., 2002); ethical orientation instrument (Forsythe, 1980); revised self leadership instrument (Houghton and Neck, 2002); market orientation instrument (Narver and Slater, 1990); relationship marketing orientation instrument (Sin et al., 2002) and small tourism performance (Lerner and Harber, 2000; Wood 2002 and 2006) would help in identifying the vital entrepreneurial characteristics described through a combination of different dimensions.

Managing a South African organisation within a dual manufacturing and services economy

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Author: Weeks, R. Benade, S.
Vol 8
Publication: 2008
Page: 208-218
Abstract: Purpose : The purpose of this paper is to analyse the nature of the South African dual manufacturing and services economy and the impact thereof on organisations from a management perspective.
Problem investigated : Services account for over 65% of South Africa's gross domestic product (GDP) and reflects an escalating trend. The manufacturing sector of the economy is just over 26% of GDP. This by implication implies that the South African economy is dualistic in nature. The economy functions as an integrated component of the global economy, one that is highly competitive and turbulent in nature. The traditional management approach tends to be one based on a mechanistic, analytical and deterministic manufacturing perspective that is no longer effective in dealing with the services economy.
Methodology : A literature study is undertaken and a narrative enquiry conducted by means of discussions with 24 South African executives to determine the impact of the dual economy on South African organisations and the influence thereof from a management perspective. The approach adopted was intentionally analytical-descriptive in nature. The narrative enquiry constituted open ended but structured discussions with executives in order to learn from their personal experiences in managing an organisation in what is termed to be the dual South African services and manufacturing economy.
Findings : An important conclusion drawn from the study is that traditional paradigms of management that evolved within a mechanistic manufacturing economy is no longer effective for dealing with the unpredictable and disruptive changes of a highly competitive global services economy. A complexity theory based management approach it would appear may be more relevant in dealing with the emergent realities associated with a turbulent services economy.
Value of the research : Seen within the context of the changing nature of the global and South African economy, the insights gained from the study could assist executives and managers in exploring alternative paradigms of management that would be more appropriate for dealing with the paradoxical nature of a dualistic economy.
Conclusion : Appropriate management paradigms differ in terms of contextual realities confronting managers, namely dealing with ordered and un-ordered contextual conditions. The Cynefin Framework (Kurtz & Snowden, 2003) serves as a means of sense making in finding the most appropriate management response for dealing with the contextual realities associated with a dualistic economy.

Secondary tax and its effect on the cost of capital and shareholder value of South African JSE listed companies

2013-06-11T13:30:08Z

Author: De Wet, J.H.v.H. Das, A.D.
Vol 8
Publication: 2008
Page: 219-230
Abstract: Background : The introduction of a secondary tax on companies (STC) and the lowering of the normal income tax rate in 1993 constituted a dramatic change in the tax structure of South African organisations. The original intention of these changes was to encourage organisations to re-invest profits to make use of capital investment opportunities. It was also anticipated that these tax changes would lower the cost of capital of organisations.
Problem investigated : Announcements during the 2007 budget again raised questions about how the proposed changes in STC would affect the value of organisations. The impact of these tax changes has been the topic of some speculation in the absence of concrete research results to date.
Purpose : The purpose of this study was to investigate the effect of these tax changes and all subsequent changes since 1993 on the cost of capital and shareholder value.
Approach : A model of a hypothetical company, representing the 'average' listed South African organisation was used to determine the effect of the introduction of STC and the changes to the STC and company tax rate on the cost of capital and the value of the organisation.
Findings : The study found that, contrary to expectations, the tax changes actually caused the cost of capital to go up. Overall, the combined effect of the higher cost of capital and the lower company tax rate caused the theoretical value of organisations to increase, constituting an improvement of shareholder value.
Value of research : It is the first local study that endeavoured to analyse and quantify the impact of the introduction of STC and the lowering of the company tax rate on the cost of capital and the value of organisations.
Conclusion : The introduction of STC in and the lowering of the company tax rate in 1993, as well as changes to these two forms of taxes since then, seem to have been justified in terms of shareholder value creation.

Conflict reduction in cross-functional projects in South African automotive firms

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Author: Mueller, T. Parker, H. Ross, A.
Vol 8
Publication: 2008
Page: 231-240
Abstract: Purpose : The purpose of this article is to explore whether certain organisational control mechanisms can reduce conflict associated with cross-functional projects.
Methodology : This is an exploratory study and individuals who had recently engaged in a cross-functional process improvement or change implementation project at automotives firm in South Africa were surveyed. The information collected from the survey was analysed using exploratory factor analysis and correlation analysis.
Findings : The results of this study indicate that of the three control mechanisms examined, formalisation in project structure had the strongest association with a reduction in conflict. Reward systems that reward both the team as well as the individual were also found to have a significant association with a reduction in conflict. Use of performance measurement systems aimed at achieving strategic alignment did not have an association with conflict reduction in the organisation.
Implications : These findings yield the following implications for management practice. Firstly managers need to be conscious that initiatives such as process improvement projects that require individuals from different functions to work together can often result in conflict. Secondly, this conflict can be reduced by formalizing roles and responsibilities and decreasing ambiguity in the project. Thirdly, design of reward systems that incentivise both the cross-functional team as well as the individual can also help to reduce conflict.
Contribution and value : This study has shed light on the role of certain organisational control mechanisms on reducing conflict associated with cross-functional projects. It has also contributed to our understanding of how formalisation in project structure influences conflict in comparison to how performance measurement and reward systems influence conflict.