South African Journal of Business Management

Online ISSN: 0378-9098
This study explores and identifies the investment criteria used by South African venture capitalists in their venture screening and evaluation processes. Using a Likert scale type of questionnaire, South African venture capitalists (VCs)were asked to rate the investment criteria identified in similar studies abroad and to report any additional criteria of their own. By evaluating the mean ratings, it was found that South African VCs consider the entrepreneur’s honesty and integrity; a good expected market acceptance; and a high internal rate of return (IRR), to be the three most important criteria. The South African VCs, just like their overseas counterparts, regard management considerations to be the most important criteria group in the evaluation of new investment projects. The results of this study are deemed useful to both venture capitalists in their decision-making process and to entrepreneurs in their venture capital applications to maximise their success rate.
Strategic issues of business relationship networking 
The motivation behind strategic networking 
This study explored the context of business relationships in the networking practices of South African businesses. The objective of this study was to investigate the networking practices of Gauteng businesses and specific perceptions and experiences of business owners and managers on their business networking objectives. A multi-method design was used, which included qualitative research (focus groups) and quantitative research (structured questionnaire). Perceptions recorded amongst the participants indicated that business relationships are built for referrals and strategic networking connections. Different forms of business networking and different motivations behind the building of business networks were identified, such as profit, access to resources and improved efficiency. Different characteristics in terms of business relationships were identified and different age groups, group 1 (44 years and younger) and group 2 (older than 45 years of age) indicated that they felt differently about the number of connections in a network. This article can contribute to the business practice of networking and the awareness of business owners and managers in terms of the importance and influence of networking in their specific business.
Demographic information of the sample
Reliability of the constructs measuring family employee work performance and compensation in family businesses
Correlation between constructs
This study highlighted the importance of establishing clear work roles and responsibilities in the family business, the measurement of family employee work performance and regular feedback on their performance and fair and market-based compensation of family employees in family businesses. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. In this study three factors describing the theoretical dimensions of family employee work performance, clear work roles and responsibilities and family employee compensation in family businesses were extracted. Although statistical significant differences were found between the perceptions of male and female as well as between senior and younger generation family employees regarding the constructs, these differences were not practically significant. This study, however, confirms the important role that an effective family employee work performance management and compensation strategy plays to ensure harmonious family relationships and at the end the sustainability of the family business. Practical recommendations are suggested to improve the effectiveness of family employee work performance and compensation in family businesses. Recommendations are also offered to utilise the questionnaire as a diagnostic tool.
Results of the Pearson correlation coefficients (r) between constructs
This study highlighted the importance of estate and retirement planning in small and medium-sized family businesses. Data from 504 questionnaires linked to 81 family businesses were collected and analysed. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Five factors with eigenvalues greater than one, explaining 65.78% of the variance, were extracted. These five factors describing the theoretical dimensions of retirement planning, perceived fairness of the will, estate taxes, perceived liquidity of the business after succession and acquiring equity ownership were extracted. No practical significant differences could be found between the perceptions of male and female respondents as well as between family members involved in medium-sized or small businesses with regard to the five factors. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the next generation family members.
Article published in the South African Journal of Business Management, vol 38(4) : 9-19, 2007 Includes bibliographical references The emergence of the networked economy implies that traditional management approaches no longer suffice in addressing the challenges of complexity. This is compounded by the existence of divergent approaches to determining organisational performance in both management practice and acedemia, resulting in an execution gap occuring between strategy formulation and results
ROE versus EVA at different levels of financial gearing 
Stepwise regression of shareholders' returns with ROE and other independent variables, excluding Spreads 
Stepwise regression of shareholders' returns with Spreads and other independent variables, excluding ROE 
This article is aimed at analysing the impact of popular financial performance measures on shareholders’ wealth. It tests the strength of the linear relationships between these performance measures and shareholders’ returns, which consist of dividends and changes in the share price. The return on equity (ROE) is weighed up against the present favourite, economic value added (EVA) and the merits and flaws of each approach are discussed. Other approaches, such as a combination of performance measures and the expectations theory are also discussed briefly. The statistical tests performed found Spreads (a standardised EVA) to be slightly superior to ROE in explaining changes in shareholders’ returns. However, the use of same year data resulted in very weak linear relationships between all the performance measures tested, relative to shareholders’ returns. When 5-year medians were used in the analysis, significant correlations were obtained between current shareholders’ returns and the future results for the internal performance measures. This engenders some support for the expectations theory with its contention that the most effective positive impact on shareholders’ returns can be accomplished by managing expectations about future financial results, rather than maximising these results now. It is clear that the debate about the effectiveness of traditional accounting performance measures, as well as the search for the real drivers of shareholder value, will continue and increase in intensity.
A typical securitisation transaction Source: Deloitte (2006).
Value of new securitisation issues (Rm)
Securitisation issuance by classification (R million)
This paper tracks the development of the securitisation market in South Africa since the first securitisation in 1989. It gives a chronological account of securitisation issuance activity on the Bond Exchange of South Africa and identifies factors that have led to the development of the market. It also records some of the topical issues market participants face. Listing data from the Bond Exchange of South Africa was sorted and analysed. The views of market participants were captured through interviews and by attendance of the 2007 annual securitisation conference. The results show that the South African securitisation market has grown exponentially over the last seven years. Market participants expect this market to continue to grow, but at a slower pace, given the pressure that world credit markets are under as a result of the sub-prime crisis in the US. Market participants identified the constraints to growth as being insufficient capacity of local investors to take up the paper. From a supply point of view the South African banks have substantial securitisation capacity that is still untapped.
Summary of hypotheses
Brand recall: sponsor brands
Brand recognition: sponsor brands
Brand recall: non-sponsor brands
Millions of rands are spent on sponsorship in general every year, and on sports sponsorships in particular. Yet little is known about the effectiveness of this expenditure. In addition, sponsors are often not sure whether only their brands benefit from a sponsorship or whether competing brands in the same product category also benefit from their efforts. In this study an attempt is made to clarify these considerations by comparing both the brand recall and the brand recognition of companies (and brands) who sponsored the 2007 Cricket World Cup. To determine whether brand recall and brand recognition increased during a sponsorship campaign, a quasi-experimental study was conducted by means of a one-group pre-test-post-test design. The data were collected using a convenience sample of 131 undergraduate students. The results seem to suggest that both the brand recall and the brand recognition levels of the sponsors increased significantly (α = 0,05), but that neither the brand recall nor the brand recognition levels of non-sponsor brands increased. The results therefore show that sponsorship does in fact increase brand awareness, by significantly increasing unaided brand recall, as well as increasing brand recognition and that non-sponsoring companies and brands do not benefit indirectly from their competitors’ sponsorships in terms of brand recall and brand recognition.
Diagram showing role players during hostile takeovers 
Hostile acquisitions have a significant impact on managers and employees. The possibility of an acquisition creates uncertainty and when the acquisition turns hostile it is even more disruptive to the target organisation. Also, negative perceptions are often created in the media about the acquirer that influence employees' attitudes in the target organisation. Processes to successfully integrate the acquirer and target organisations are impacted by these antagonistic pre-acquisition circumstances. The Companies Act (no.71 of 2008) created opportunities for shareholders to hold an acquired company's management accountable for financial performance and the researchers set out to investigate how the intent of the new legislation played out in practice, by studying an acquisition that turned hostile. The single case study research methodology revealed the manoeuvring of both the acquiring and acquired companies which utilised the mechanisms available to them through the new legislative, regulatory and corporate governance landscapes. The researchers provide an extensive review of the relevant mergers and acquisitions' literature, as well as influence of the international legislative environment on the current local regulations. These regulations in turn, inform corporate governance and ultimately board behaviours. The researchers conducted qualitative interviews with key role players as well as legal and financial experts. The findings of the thematic analysis and triangulation process, informed a conceptual frame of three episodes.
The last decades have been characterised by fundamental changes - a paradigm shift - in organisation theory, management theory and the intellectual constructions through which organisations, managers and individuals working in organisations are understood. The value system of society has been changing, and this has had effects on leadership. Up until recently, the dominant model for leadership has been one which stresses simplicity, order, determinism and linearity. Consequently, today's leaders in the West manifest a moderate tolerance of unequal power distribution in organisations. However, this model has increasingly been coming under fire from conflicting perspectives, for example, new approaches stress complexity, bounded disorder, non-determinism and non-linearity. Under the Eastern and African influences, they also show a shift from the most individualistic approaches to group/team approaches to problem solving. Additionally, strong 'masculine' values, including traits such as aggressiveness, independence and insensitivity to feelings, have been changing moderately to relationship-building, interdependence and concern for others. In the workplace, there appears to be a move away from valuing economic incentives, organisational loyalty and work-related identity and towards valuing more meaningful work, pursuit of leisure, personal identity and self-fulfilment. The modern leader must, hence, be able to recognise value differences and trends among people at work in order to lead them accordingly. This article looks at the plurality of the dilemmas leaders are facing, as we enter the 21st century, because of the multiple realities and perspectives that they have to act out and reflect within the workplace and society.
Domains used to characterise papers in the sample
Regions covered in the sample of academic literature considered
Research themes
This article describes 35 years of academic research into investment practices that in some way integrate a consideration of environmental, social and corporate governance issues. A review of 190 academic papers was undertaken to identify trends in five domains, namely 'Primary Name', 'Research Themes', 'Ethical Foundations', 'Research Approach' and 'SRI Strategies'. The evidence reveals that more than half the researchers refer to such investment practices as Socially Responsible Investing (SRI) and for this reason the name is used in this review as a generic term for the genre. A myriad of other names were also identified. In terms of research themes, one particularly dominant theme was that of financial performance, which was often discussed in relation to fiduciary responsibility and legal aspects. Although the primary ethical foundation was not always directly observable, the majority of papers implied utilitarianism or 'the greatest good for the greatest number'. Increased mention of ethical egoism (self-interest) is observed in later periods. An equal split between qualitative and quantitative research methodologies was noted, with a qualitative approach being more favoured in recent years. Three SRI strategies have dominated academic discussions over the past 35 years, namely negative screening, positive screening and shareholder activism. Gaps in the literature have been identified and suggestions for future research made.
Structural model for the Facebook users motivators model 
Discriminant validity motivators model
Social media is a unique marketing communication medium to engage with a new generation of consumers and it has become an essential element of many organisations' strategic planning. On social media sites, consumers are engaging with and producing information, as opposed to traditional media where the marketer is in control of the media message content and information dissemination. The primary objective of this study was to investigate the intentions of users of social network sites to continue using social network sites in the future, by using a comprehensive, decomposed Theory of Planned Behaviour. The results showed that Dispositional trust, Internet self-efficacy, Psychological risk, Perceived enjoyment and Perceived usefulness exert a statistically significant influence on the intention of individuals to continue to use Facebook in the future. This study provides insights that can guide marketers' efforts to devise customised, multi-layered marketing offerings to encourage the use of social network sites for e-commerce purposes.
Research Framework (adopted from Bailur, 2006)
Power and Interest grid (Freeman, 1984) 
Smart Cape pilot project Stakeholder Diagram 
The Stakeholder Importance Influence Map 
This paper reports of a study that uses the Stakeholder Management Theory to analyse the implementation of a pilot phase of public access project, the Smart Cape Access Initiative, a Cape Town City Council e-government initiative. Data for the study was gathered through in-depth interviews with individuals who were involved, influenced and were affected by the implementation of the pilot project. The study identified the major stakeholders of the project and assessed their importance and influence on the project. Numerous interactions between the stakeholders were identified. It was further noted that no formal stakeholder management was undertaken at the identification and planning stages of the project lifecycle. In addition, results showed that there were missed opportunities for appropriate stakeholder management throughout the project. This study offers insights into agencies involved in planning and running public access projects.
Sampling framework
Number of benefit options analysed
The purpose of the Medical Schemes Act, No. 131 of 1998 was inter alia to ‘promote non discriminatory access to privately funded health care’. A number of reforms were proposed as steps on a path to Social Health Insurance (SHI) with the ultimate goal of the reforms being to increase the number of people contributing to a private financing mechanism, thereby reducing the burden on the public sector. The increase in health care costs over time has been the focal point of industry discussions regarding affordability. In recent years the industry has responded positively to the affordability challenge by developing new products aimed at the lower end of the market. With medical inflation as a significant challenge, this paper argues that in 2003 the cost of entry-level medical scheme options was largely unaffordable and that this state of affairs has not improved over time. The proportion of the population covered by medical schemes declined marginally during the time period under review (2003 – 2006), despite the regulatory environment. The analysis, done from the perspective of a prospective medical scheme member, aims to identify the proportion of medical scheme options affordable to each of four ‘benchmark’ families.
Campsite preferences 
The purpose of this research is to determine ecotourists' needs and preferences concerning national parks in South Africa. A survey was conducted at the Tsitsikamma National Park, focusing on fixed-roof accommodation, camping and ecolodges. Results showed that the preferences for each aspect are unique and that setting remains paramount when it comes to fixed-roof accommodation. The research also confirmed that a variety of accommodation types, including provision for self-catering, is preferred by ecotourists. This research makes a valuable contribution to the managing of accommodation in South African National Parks.
Research process A literature review was used to clearly define Information Technology Governance (ITG) (Section 3). The King III principles on ITG as set out in Chapter 5 of the King Report were then analysed to compile ITG focus areas that provide a macrolevel description of ITG according to King III (Section 4). The role and limitations of industry frameworks were determined (Section 5), and the correlation of the King
Management levels and ITG focus areas
Seven IT Governance principles of King III
With the increasing dependence on IT in modern enterprises and the significant risks associated with omnipresent IT systems in business, IT governance is becoming imperative to all organisations. King III is based on the "apply or explain" approach, that forces South African entities for the first time to apply the IT governance principles as contained in the report, or explain the reasons for not applying these principles. This paper provides a macrolevel view of IT governance, derived from King III, and determined that it correlates strongly with the growing body of knowledge on IT governance. The paper investigates the responsibilities for IT governance within organisations and provides clear guidelines on the responsibilities of management roles, from the board to the operational level, involved in IT governance to ensure accountability.
Research model  
Variable measurement
Results of regression analyses for direct effect
The role of small and medium enterprises (SMEs) is recognized globally given their contribution to total productivity and job opportunities. However, the majority of SMEs tend to fail due to a lack of marketing knowledge and managerial skills or technical expertise. Professional accountants are in a unique situation to help SME owner/managers to achieve their business objectives and bridge the skills gap. Therefore, this paper aims to identify the factors that affect the decisions of owner/managers of SMEs in Iranian manufacturing sector to utilise the professional accountants' advisory services and to examine the impact of these advisory services on SME performance using the Resource-Based View (RBV) of the firm. Based on a questionnaire survey data of 658 Iranian manufacturing SMEs, our regression analysis reveals a significant positive relationship between utilisation of professional accountants' advisory services and three independent variables, namely, knowledge of owner/manager, competitive intensity and complexity of marketing decisions. Furthermore, we evidence that the use of advisory services is significant and positively associated with SME performance. More importantly, utilisation of professional accountants' advisory services partially mediates the relationship between knowledge of owner/manager, competitive intensity and complexity of marketing decisions and firm performance. Therefore, we provide a specific, theoretically and empirically grounded prediction of how utilisation of professional accountants' advisory services influences performance with implications for theory and practice.
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.
Expanded ACSI model
Expanded ACSI model for the motor vehicle industry Table 2: Variance explained and composite reliability of the motor vehicle industry R 2 Composite Reliability Product overall quality(POQ) 0,584 0,909 Customer expectations(CE) 0,878 Perceived value(PV) 0,509 0,939 Customer satisfaction(CS) 0,732 0,887 Customer loyalty(CL) 0,368 0,508
Variance explained and composite reliability of the individual motor vehicle brands
Longer relationships with customers, with an anticipated concomitant increase in profitability flowing from such relationships, have become the focus of many businesses. Over time numerous measures to gauge and predict loyalty and commitment have been developed with the purpose to assist management in this respect. However, one of management’s major challenges is to employ a model that is appropriate to explain and predict customer retention for a particular company or brand. This study investigates the reliability of the ACSI for South Africa and reports on the empirical findings in respect of the relationships between various dimensions in the ACSI model as applied in the South African motor vehicle industry. Apart from a paper in press, no research or application of the ACSI has been published in any South African academic journal (Terblanche, 2006). The motor vehicle industry as a whole as well as two individual motor vehicle brands is the focal point of this study. The strengths of various relationships such as, for instance, the relationship between customer satisfaction and customer loyalty and the relationship between customer expectations and perceived value were studied. The interpretations of the findings between the various dimensions, which are useful from both a theoretical and a managerial perspective, are offered.
Studies have suggested the positive effect of customer orientation on superior performance. However, these studies have not shown how to covert customer orientation into superior performance through new product development (NPD) activities. The purpose of this study was to fill the gap between customer orientation and new product performance and elucidate the mediating influence of product launch, product development capability, and innovativeness on the relationship between customer orientation and new product performance. From the contract manufacturer’s perspective, it was proposed that customer orientation toward new product performance affects NPD activities. Focus was placed on product launch because the launch stage is the most expensive and riskiest aspect of NPD activities. Focus was also given to product development capability, which facilitates superior product performance. Product innovativeness also plays a crucial role in building competitive advantage. NPD activities include product launch, product development capability, and product innovativeness. We used a questionnaire to collect data to test the postulated research model and hypotheses from project, account and product managers in the high-tech industry. The results demonstrated the strong positive effect of customer orientation on NPD activities, and NPD activities play crucial roles as mediators between customer orientation and new product performance.
This article highlights two themes that emerged from an in-depth multiple-case study of management teams in South African corporations that deserve closer attention in future research. First, it is shown that team composition is not static and changes adaptively in response to changing task demands. Hence, team characteristics such as maturity, or team member characteristics, including skills and competencies, need to be understood and modelled as variable rather than constant. To date, this has not been the case in the management team literature. Second, the findings highlight the prevalence and importance of within-team dynamics with particular reference to subgroup interaction. It is shown that spontaneous, informal sub-group formation is a common and constructive feature of management team functioning. This calls for a reconceptualisation of management teams to acknowledge that they are not indivisible units of analysis. Yet the very essence of the notion of a team, as consistently defined in the management literature, need not be violated or invalidated. The defining attributes of teams, including a common purpose, task interdependence among members and a shared identity may remain intact. What needs to change is our theorising about management teams, to take due cognisance of their dynamic, adaptive, self-regulating functioning in business organisations.
Leadership factors and effectiveness
Pearson Chi-square results: leadership versus effectiveness
Observed frequency table Transactional factors (•/o)
After years of isolation from the international sporting arena, South African sports teams have recently achieved much success. This article is concerned specifically with managing for organisational effectiveness in South African cricket. According to the theory of transformational leadership, there should be a positive relationship between this style of leadership and organisational effectiveness. The Multifactor Leadership Questionnaire was used to collect information about leadership while data for organisational effectiveness, the dependent variable, was collected using the Effectiveness Survey for Cricket Administration. Most of the results regarding the relationship of the transformational leadership factors and organisational effectiveness were significant. On the other hand, most of the results regarding the relationship of the transactional leadership factors and organisational effectiveness were not significant. The overall results provide general support of Bass' (1990) argument of the universal application of the transformational leadership theory.
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.
Electronic commerce is rapidly replacing the old ways of doing business. Although many studies have been conducted on the adoption of various forms of e-commerce, there are few on this topic in African countries; in particular, there is no research on Tanzania. Therefore, this paper analyzes the factors determining e-commerce and their impact on its adoption in Tanzania. This paper extends the technology acceptance model (TAM) to an empirical study analyzing the factors influencing e-commerce adoption in Tanzania. A survey involving 111 respondents including Tanzanian government officers was conducted, and structural equation modeling was used to assess the model for the influence of three new factors: national policy initiatives, technology infrastructure, and trust in e-commerce adoption. The results show that technology infrastructure is an important factor in e-commerce adoption, and national policy initiatives are important in building online trust and improving technology infrastructure in Tanzania. Therefore, government policy makers need to encourage the presence of good technology infrastructure and build trust in e-commerce through national policy initiatives such as e-commerce promotion. Limitations of this paper are that the respondents are limited to people who have access to the Internet and some might not have enough knowledge about e-commerce. Further, the survey is conducted only in Tanzania; therefore, the results may differ in other African countries.
A conceptual research model Source: Author's design The model identified three variables upon which the three hypotheses were formulated:  Predictor variable: The information technology (IT) adoption  Moderator variable: The supply chain integration  Outcome variable: The supply chain collaboration 
Response from the questionnaires
This study probed the influence of information technology adoption by small and medium enterprises (SMEs) in Gauteng and Free State Provinces of South Africa. The supply chain integration and collaboration of the SMEs was also explored to ascertain the IT influence. A quantitative methodology was used as it was the best way to measure the extent of the information technology (IT) influence. The participants were sent questionnaires via the e-mail and provided feedback to the researcher via the same medium. The sample size of 300 comprised the owner/manager in the manufacturing and service sector SMEs from the two provinces. The data collected was analysed using a Confirmatory Factor Analysis (CFA) method and Structural Equation Modelling (SEM) using AMOS 22 Statistical Analysis software. The findings from the study indicated that information technology adoption enhanced integration and collaboration of SMEs supply chain. It also emerged that there was wide application of information technology amongst most of the SMEs approached. The other benefits that emerged from the increased use of IT in the supply chain included enhancement of customer service, inventory management, lead time, and relationship building. Indeed, Instilling IT skills to the SMEs employees was actually knowledge enhancement in performing business tasks.
In a business environment of continuous change and in light of a defined need to fast track skills improvement and development in South Africa and Africa, training strategies and practices are under increasing pressure to develop a more productive and skilled workforce. Demands on training and the practices it employs increasingly focus on the alignment with strategic imperatives of organisations and the country. This research presented an instructional design (ID) model positioned in intersection between the positioning-based and resource-based theories and used a multi-disciplinary approach to extend the literature on ID models with the aim to offer measurable improvements in job-specific knowledge and productive behaviour as proxies for sustainable competitive advantage. The research confirmed the contribution of the ID model in this regard and described and substantiated the pivotal link between training and ID models and the application thereof in practice to aid organisations and, by extension, countries, in the achievement and sustainability of competitive advantage. This, the first of two articles, presents not only the theoretical and practical context of the research, but also the development of a revised and advanced ID model. In the second article the ID model will be subjected to empirical investigation and evaluated through the application thereof in a case organisation and a grounded conclusion provided. This is the first in a series of two articles.
YouTube summary of statistics for the three CG advertisements analysed
While branding is an area that is extensively studied in the marketing literature, there is a noticeable lack of attention to the study of luxury brands, and even more so from an online perspective. In this exploratory study, we make use of the content analysis software Leximancer to comprehend the consumer feedback around conversations about luxury brand ads posted online. We study consumer comments posted on YouTube around three different luxury brands and analyse these comment in order to find meaning among the large volume of consumer discussion. We attempt to shed some light on how these conversations can be tracked and interpreted in order to gain valuable insight into the consume's role in advertising through discussing the ads for well known luxury brands that were chosen for this study and the subsequent reactions to them. We go on to discuss the Leximancer tool that can be used for deciphering and interpreting the consumer conversations surrounding these ads and the results of the analysis. We conclude by acknowledging the limitations of this methodology, identifying implications for managers, and suggesting avenues for future research.
Typical lovelife advertisement  
PLS path analysis: Male versus female
PLS path analysis: Culture/racial groups
The purpose of social advertising is to influence human behaviour for societal benefit. Given concern about the Aids pandemic in South Africa, this study used structural equation modelling and partial least squares to investigate whether the use of fear in social advertising increases the likelihood of adopting appropriate behaviour pertaining to HIV/Aids prevention. Fear, attitude towards the advertisements, severity, susceptibility, response efficacy and self-efficacy were examined for their effect on behavioural intent of young adults within specific market segments. Relationships were found among susceptibility, fear, attitude, and behavioural intent, and different relationship paths were identified for segments based on gender and culture/racial groupings. These differences show the value in tailoring fear appeals to different segments when addressing social cause advertisements.
Agency retention consideration set 
Constructs and variables with a positive relationship with retention
Client satisfaction: Item total statistics
Total variance explained
Total variance explained
Commercial reality demands long and lasting relationships that are beneficial to both advertising agencies and their clients. This article presents a conceptual model to illustrate the salient choice criteria employed by advertisers when renewing advertising agency contracts. The model was empirically tested, and data obtained from 116 respondents were subjected to factor and correlation analysis to explore the dimensionality of the retention construct. Research results support that retention is multidimensional and highlights the limitations of research that measure single factors related to retention. The model postulates that retention is the result of a good working relationship, service satisfaction, respect and support, clear terms of engagement; and affective conflict resolution. Insight into the nuances of each of these antecedents is also offered. In management practice, this model will provide valuable insight to agencies with regard to client retention management. Findings of this study may also be extended to other high-value professional service industries.
H 1-Two-way interaction viewers' racial group × Model's racial group on advertising attitude 
H 2-Two-way interaction viewers' racial group × Model' racial group on felt targetedness 
This study examines the effects of consumers' multiple identities on advertising effectiveness. Based on the In-group Bias Theory, the study investigates how the race of an advertisement model, in comparison to another social identity (i.e. socioeconomic position), influences advertising effectiveness. Results indicate that, even though race "matters", the socioeconomic position of the model also predicts advertising effectiveness depending on viewers' racial group. Findings suggest ways to design successful cross-cultural advertising strategies in post-apartheid South Africa.
ANOVA analysis of mean values differences between experimental groups (Chinese Celebrity -Western celebrity).
This study asks if endorsers function as surrogates for country-of-origin, and if the effectiveness of the tactic varies with the perceived ethnicity (Western versus Chinese) of the celebrities. It finds no significant influence on the country-oforigin perception, brand attitudes or product quality evaluations in the reactions of 797 consumers in Shanghai to magazine advertisements featuring celebrities of Chinese vs. Western ethnicity. The lack of any significant effect of the ethnicity of celebrities on a brand's perceived country of origin precludes country image having any effect on those variables for the case of the cosmopolitan Chinese consumer.
Beta coefficients for hypotheses
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.
Analysis of variance results Dependent variable: INTENTIONS TO BUY
Duncan's multiple range test results: two way interactions
Against the background of the challenge service marketers face in influencing the risk perceptions of service buyers, this study attempts to assess the impact three independent variables can have on potential service buyers’ intentions to buy a service. The three independent variables were: providing general service information; providing price information; and providing a service guarantee. The empirical study was of an experimental nature and used a factorial design to assess the impact of different mock advertisements on intentions to buy. The 18 different advertisements showed different combinations of information, prices and three levels of service guarantees. The empirical results indicate that combing all three of the independent variables (providing general service information, providing price information and providing a service guarantee) in printed advertising significantly enhances consumers’ intentions to buy. Another important finding of this study is that an unconditional service guarantee is not as important as is often suggested in the service literature.
Demographic information of the sample
Hypotheses HO 1 to HO 4 -ANOVA
Hypothesis HO 5 -Linear regression
Since the end of the apartheid regime, the number of advertisements casting actors from different racial backgrounds simultaneously has significantly increased. Comments about this development are multi-faceted. While some observers praise this technique as the ideal social mirror of the "new" South Africa, others criticize it as a pervasive commercial tactic. Consistent with this debate, it is important for brands to understand consumers' perceptions of multi-racial advertising. Indeed, these perceptions are also assumed to influence consumers' attitude towards the advertised brand. Based on the attribution theory, this study investigates whether South African companies, by integrating a multi-racial feature in an advertisement, create the perception amongst consumers that their advertisement is socially responsible and, in so doing, increase their brand equity. The empirical results of this study support that consumers' attitude towards a brand is significantly influenced by the extent to which they attribute a social responsibility to its advertisements. Nevertheless, it is also found that using multi-racial advertising is a necessary but not sufficient condition to generate this social attribution.
This paper analyses the risk factors relevant to South African software projects. Findings included the fact that project managers of varying experience perceive a different set of important risks.In addition, hard risks were not perceived as more important than soft risks (people related). Lack of top management commitment was the highest risk.
The objective of this study was to assess the relationship between job insecurity, job satisfaction and affective organisational commitment of maintenance workers (N = 178) in a parastatal in Gauteng. A cross-sectional design was used. Stratified random samples of maintenance workers (N = 178) were taken. The Job Insecurity Inventory, Minnesota Job Satisfaction Questionnaire and Organisational Commitment Questionnaire were used as measuring instruments. The results revealed small but significant relationships between job insecurity and extrinsic job satisfaction and job insecurity and affective organisational commitment. Job satisfaction was found to mediate the relationship between job insecurity and affective organisational commitment.
This research examines the extent to which the moderating variable of awareness influences the relationship between Corporate Social Responsibility beliefs and consumers' attitudes towards their banks, and whether this significantly affects their willingness to recommend the company. The research was limited to the four major South African retail banks. The study finds that consumers' attitudes do not, in fact, mediate the relationship between CSR beliefs and willingness to recommend. However, a direct positive relationship appears to exist between attitude and willingness to recommend. The authors find that a superficial awareness of CSR initiatives has minimal impact on their behaviour. Whilst an increased intimate knowledge of their CSR activities may thus lead to business rewards, banks should focus on their core offerings as consumers see CSR as an added benefit.
Pearson correlation matrix among personality traits and verbal content preference 
Worldwide, visual content, such as photos and videos, have increased dramatically on social network sites (SNS), with South Africa being no exception. The purpose of this study was to investigate the relationship between two personality traits -need for cognition and need for affect -and visual and verbal content preference on SNS in South Africa. A survey was conducted and data were obtained from 307 social network site users. The main findings showed that personality does have an influence on SNS users' preference for visual or verbal content. Implications for both theory and practice are discussed.
Information and Communication Technology (ICT) outsourcing is a strategic initiative adopted by many organisations across all industries. Outsourcing is seen as a means for organisations to concentrate and improve their core business functions. Despite the vastly dynamic environment businesses operate in, few global studies have uncovered the factors influencing outsourcing decisions, thus the need for this paper. The research was performed using a number of statistical tests and descriptive analysis methods to explore the literature and to determine the current status of South Africa's ICT outsourcing market. Key findings reveal that cost is the most influential factor when deciding whether to outsource or not, irrespective of organisations size or type. Other important factors include concentrating on core-functions, and the availability of in-house expertise. The form of outsourcing used is not affected by the size of the organisation. Application Service Providers (ASP) is the most common form, followed by co-sourcing.
Instrument reliability: coefficient a for dimen- sions and overall index of service quality
Content validity
Convergent validity Multiple regression of dimensions on overall evaluation of service quality
The drive to measure service quality has become a major focus in many organizations, as the links between service quality and business performance have become more clear. Similarly, the development of SERVQUAL, an instrument for the measurement of service quality, has spurred much research in this area. Most of the research concerning SERVQUAL has focussed on the psychometric properties of rehability and validity. SERVQUAL has received considerable academic and practitioner research attention in South Africa; however, while isolated studies have commented on its robustness none have considered SERVQUAL across a range of industries and settings using different approaches. The study reported here attempts to redress this. It reports the results of SERVQUAL studies across a range of organizations and examines issues of reliability and validity. A major conclusion is that SERVQUAL in a South African context generally possesses strong statistical properties but needs further refinement particularly to overcome problems of discriminant validity. Opportunities for further research are identified.
This article reports on a qualitative study of how the corporate identity management process is perceived and managed by senior executives in large South African companies. The concepts of identity, corporate reputation, corporate branding, and the corporate identity management process are discussed. It is suggested that these concepts create confusion among executives and academics and therefore the image and reputation of a company may be affected. Results are reported from an in-depth study of 14 senior managers and directors from 8 large companies. Key recommendations are made and a step-by-step guide is given on how to develop an effective and successful corporate identity, leading to a good reputation in the long term.
In the past two decades, considerable efforts have been made to promote small and medium enterprises as a catalyst for job creation in many countries, including South Africa. However, globally a growing body of evidence shows that only a small segment of small and medium enterprises in an economy accounts for 50 to 70% of net new jobs. Using the World Bank Enterprise Survey and logit and quantile regressions, this paper empirically explores the characteristics of high growth firms in South Africa. The study finds that firms that are less than 6 years create more jobs than the average firm in the sample. The results further suggest that the typical high-growth firms are black-owned.
The aim of this paper is to assess which factors impact the development of early-stage venture capital in South Africa. Factors identified for other markets and countries are explored and their relative importance in South Africa determined from the perspective of market participants. These include venture capital and private equity fund managers, government institutions, intermediaries and university research coordinators. The study used both an online survey, to capture a broad representation of opinion, and interviews, for in-depth responses. There was broad consensus among respondents with regards to the key factors requiring attention, which include the lack of funds targeted at early-stage investments, the lack of specialised fund managers, and the low entrepreneurial skillsets in the country. Through a detailed analysis of the responses, certain measures are proposed that can enhance the development of early-stage venture capital in South Africa such as engaging more with angel investors and improving the cooperation between the different market players in the sector.
Proposed way forward for pharmaceuticals in South Africa Source: Maloney and Segal, 2007 
The purpose of this research is to investigate the shifting structure of pharmaceutical production in South Africa and examine the global and local factors that have contributed to this change. Generally, these factors have resulted in a decline in the number of pharmaceutical manufacturers in South Africa and in particular manufacturing operations owned by multinational companies. Simultaneously the global demand for generic medicines has increased due to their ability to improve access to affordable medicines. As a result, the supply of medicines in South Africa is being increasingly met by imported generic medicines and to a lesser extent locally manufactured generic medicines. These changes, together with a turbulent and sometimes uncertain regulatory environment, have led to interesting dynamics and changes within the structure of the pharmaceutical manufacturing industry in South Africa.
This paper reviews the capital budgeting survey literature in South Africa over the period 1972 to 2008. The survey evidence indicates a significant growth in Discounted Cash Flow (DCF) methods and a fall in the use of other methods. In particular, there has been growth in the use of Net Present Value (NPV). Yet, the Internal Rate of Return (IRR) technique remains the primary method used in practice despite some serious drawbacks. Larger companies are more likely to use DCF methods. There has been a significant growth in the use of sensitivity analysis and scenario analysis. However, there is little use of sophisticated risk analysis tools such as Monte Carlo simulation, and decision trees. Although financial theory predicates the use of risk adjusted discount rates, surveys indicate that the majority of companies use a single firm discount rate. Companies have increasingly used inflation-adjusted cash flows but the process of ranking mutually exclusive projects is not aligned with finance theory. There is limited use of the Modified Internal Rate of Return (MIRR) method and DCF dominant companies do not outperform non-DCF dominant companies. The most important phase of project evaluation is the project definition and cash flow estimation phase and yet research studies have focused mainly on the financial analysis and project selection phase.
The hypothesised model 
The objective of this study was to investigate the influence of an entrepreneurial orientation on the perceived success of agribusinesses in South Africa. Business success, for the purpose of this study, was measured by means of two dependent variables, namely Business development and improvement and Business growth. Structured questionnaires were administered to managers in five of the largest and three smaller agribusinesses in South Africa. In total, 533 usable questionnaires were returned. Construct validity of the measuring instrument was assessed by means of a principal component exploratory factor analysis and by calculating Cronbach alpha coefficients. The results show that the managers in the participating agribusinesses perceived that the entrepreneurial orientation factors of Proactiveness, Risk-taking and Autonomy have a positive influence on their business development and improvement. A positive relationship was also found to exist between the entrepreneurial orientation factors of Proactiveness, Autonomy and Innovativeness and the dependent variable Business growth in the participating businesses. To enhance the entrepreneurial orientation in agribusiness, it is recommended that the word "entrepreneurship" should specifically be included in the vision statement of the business, setting goals and developing strategies for entrepreneurship. The focus of the business then becomes opportunity identification, discovery of new sources of value, and product and process innovation that could lead to greater success.
Joint tests for differences in the rationales for syndication
Pair-wise tests for differences in the means and medians of the composite rationale variables
Comparison of rationales for syndication: Small vs. Large firms
Measures of central location for the non-syndication composite rationale variables
Joint tests for differences in the non-syndication composite rationale variables
This paper examines the syndication behaviour of South African private equity and venture capital firms. Three possible rationales for syndication are tested: risk reduction through portfolio diversification (finance rationale), accessing the skills of other firms (resource-based rationale) and improved access to future investment opportunities (deal flow rationale). The finance-based rationale and deal flow rationales are found to be more important than the resource-based rationale. A number of firms additionally list Black Economic Empowerment (BEE) as an additional important reason for syndication. The reasons for syndication behaviour did not vary when small and large firms were considered separately. While firms taking part in start-up investments were more likely to syndicate, their reasons for doing so were not different from those who invest later in the investment life-cycle. While there is currently a low level of syndication of private equity investments in South Africa compared to Europe and the US, most SA firms regard syndication as beneficial and are more likely to syndicate in the future.
This study describes the political-economic dimension of corporate governance reform in South Africa. It then investigates the relationship between corporate governance institutions and systems on the one hand and the political, economic and historical context of South African society on the other. The study establishes the political, economic and historical determinants of corporate governance reform as they evolved in the course of South African corporate history. The study concludes that South African corporate governance reform and such reform in the Commonwealth economic systems have a lot in common in terms of their historical evolution. This is despite the reasons for such reform being vastly different. The outcome of the political process in South Africa, for very specific reasons, is that a specific shareholder model of corporate governance became the corporate governance system in South Africa.
Strategic value chain synergies between the NMO, SAC and Stats SA.
A SWOT matrix for the NMO
Weighted competitive strength assessment of public sector competitors
This paper explores the transferability and application of business-driven strategic thinking to that of a public sector context, namely national mapping organisations. These organisations exist throughout the world because the economies of the world require geospatial information to support economic and social growth. As such their strategic positioning within government is of prime importance. In South Africa, however, there is a paucity of knowledge in this regard and consequently triggered the research which forms the basis of this paper. A macro-environmental analysis suggests significant growth opportunities for the South African geospatial industry, fuelled by a micro-industry borne out of the 2010 Soccer World Cup event. A profile description of the characteristics of consequence, boundaries between the private and public the industry and expected changes reflect a large industry which is expanding at a rapid rate but is fragmented and displays a complex network-system of inter and intra-industry relationships. As such it is attracting increasing numbers of competitors but, as an industry, appears to be slow to adjust to technological advancement. An internal analysis of the value chain of the National Mapping Organisation (NMO), the single most important player in the local public sector geospatial industry, reveals significant value creation in its inhouse activities. However, the external deconstructed operations, outbound logistics and procurement processes are not allowing the organisation to realise any benefits from efficiencies it may introduce. Key to achieving efficiencies lies in the human capital, which by all accounts, it is failing to retain. Future strategic thrusts for the NMO have been identified by constructing a SWOT model and by analysing its relative competitive strength. These thrusts were found to concentrate on actions and themes related to staff, communication, marketing, general management, production (cost and capacity) and product (quality and innovation). Interpreting and applying those themes on an interorganisational basis will enable the NMO to best position itself in the industry. In this regard sufficient related strategic fit is evident between the value chains of the NMO, The Satellite Application Centre (SAC) and Statistics South Africa (Stats SA), enabling the NMO to leverage on the sales, marketing and distribution activities of SAC and the financial leveraging capabilities of Stats SA. This paper has presented an example of how delivering an efficient and effective service delivery may be hampered through the inappropriate strategic configuration of South African public sector activities. It is therefore suggested that the government revisits the strategic positioning of public sector organisations engaged in the provision of geospatial information.
Performance of firms reporting finance as obstacle vs. those not
Marginal effects of the binding constraints
Interaction for each obstacle
Mean-comparison test (paired) for access to finance: 2003 vs. 2007
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.
Top-cited authors
Sebastiaan Rothmann
  • North-West University
Hans De Witte
  • KU Leuven
Joey Buitendach
  • University of KwaZulu-Natal
Eon Smit
  • Stellenbosch University
Tobias Johannes de Coning
  • Stellenbosch University