Browsing by Author "Luiz, John"

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    An analysis of economic infrastructure investment in South Africa
    (2005) Perkins, Peter; Fedderke, Johann; Luiz, John
    This paper analyses long-term trends in the development of South Africa's economic infrastructure and how this relates to the country's long-term economic growth. A database covering railways, roads, ports, air travel, phone lines and electricity was established for this purpose, and may facilitate further quantitative research. PSS (Pesaran, Shin and Smith, 1996, 2001) F-tests are used to identify directions of association between economic infrastructure and economic growth. These indicate long-run forcing relationships from public sector economic infrastructure investment and fixed capital stock to gross domestic product (GDP), from roads to GDP, and from GDP to a range of other types of infrastructure. There is also evidence of potential simultaneity between specific types of infrastructure and GDP. The evidence suggests three main findings. Firstly, the relationship between economic infrastructure and economic growth appears to run in both directions. Inadequate investment in infrastructure could create bottlenecks, and opportunities for promoting economic growth could be missed. Secondly, South Africa's stock of economic infrastructure has developed in phases. Policymakers should focus on choosing or encouraging the right type of infrastructure at the right time. Thirdly, the need for investment in economic infrastructure never goes away. The maintenance and expansion of infrastructure are important dimensions of supporting economic activity in a growing economy, provided that individual projects are chosen on the basis of appropriate cost-benefit analyses.
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    An analysis of economic infrastructure investment in South Africa
    (Wiley, 2005) Perkins, Peter; Fedderke, Johann; Luiz, John
    This paper analyses long-term trends in the development of South Africa's economic infrastructure and discusses their relationship with the country's long-term economic growth. A database covering national accounts data, railways, roads, ports, air travel, phone lines and electricity was established for this purpose, and may facilitate further quantitative research. PSS (Pesaran, Shin and Smith, 1996, 2001) F-tests are used to identify directions of association between economic infrastructure and economic growth. These indicate long-run forcing relationships from public-sector economic infrastructure investment and fixed capital stock to gross domestic product (GDP), from roads to GDP, and from GDP to a range of other types of infrastructure. There is also evidence of potential simultaneity between specific types of infrastructure and GDP. The evidence suggests three main findings. Firstly, the relationship between economic infrastructure and economic growth appears to run in both directions. Inadequate investment in infrastructure could create bottlenecks, and opportunities for promoting economic growth could be missed. Secondly, South Africa's stock of economic infrastructure has developed in phases. Policymakers should focus on choosing or encouraging the right type of infrastructure at the right time. Thirdly, the need for investment in economic infrastructure never goes away. The maintenance and expansion of infrastructure are important dimensions of supporting economic activity in a growing economy, provided that individual projects are chosen on the basis of appropriate cost-benefit analyses.
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    Enhancing resilience in South African small and medium enterprises: a dynamic capabilities perspective
    (2024) Matikiti, Edmore; Luiz, John; Parker Hamieda
    The resilience of small and medium-sized enterprises (SMEs) in emerging markets, where they confront persistent institutional challenges, is crucial for their ability to survive and thrive in such complex environments. South Africa contends with many challenges, including institutional voids that manifest in various ways, such as electricity blackouts and systemic corruption. These challenges compound the existing difficulties SMEs face, which are already constrained by limited resources. The emergence of the COVID-19 pandemic, as an exogenous shock, exacerbated the challenges small enterprises face. It further heightened transaction costs, introduced additional operational constraints, and underscored the urgency of examining their resilience. The aim of the study is to understand how market dynamism in the form of institutional voids and exogenous shocks influences SME resilience in emerging markets. Additionally, the study investigates the role of the dynamic capabilities framework to deepen comprehension of organizational resilience within these markets. Targeting South African SMEs across diverse sectors with fewer than 250 employees and annual revenue below R220 million, the research employed a mixed methods approach combining case studies and a survey to gather data. The study confirms significant relationships between institutional voids, exogenous shocks, dynamic capabilities, and SME resilience using qualitative and quantitative analysis methods, including regression analysis and structural equation modelling. To survive and thrive, South African SMEs must develop and deploy context-specific and distinctive resilience capabilities to navigate these disruptions and challenges proficiently. Specifically, the study's findings highlight that tacit and explicit knowledge and improvisation capability positively impact SME resilience, enabling these enterprises to mitigate risks and identify opportunities, thereby fortifying their resilience during crises. This thesis contributes to existing theory by introducing a Resilience Framework, depicting essential categories and specific qualities crucial for managing disruptions and enhancing SME resilience within emerging markets. Furthermore, the study offers theoretical advancements in dynamic capabilities and resilience and furnishes practical strategies for SME managers and policymakers. This approach serves as guidance for current decision-making and lays the groundwork for future research endeavors in these domains.
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    Fast moving consumer goods companies penetrating low-income markets in South Africa
    (2024) Polterauer, Christoph; Luiz, John
    This research explores the challenges and opportunities for Fast Moving Consumer Goods (FMCG) companies in penetrating low-income markets in South Africa, particularly focusing on the base of the pyramid (BoP). Employing qualitative, exploratory methods, the study involved in-depth interviews with industry experts to understand the strategic approaches FMCGs can adopt for successful market entry and growth. The findings reveal significant hurdles in distribution and accessibility, stemming from infrastructural deficits and diverse consumer behaviours. Nonetheless, the BoP market presents substantial opportunities for growth through innovative, culturally sensitive, and sustainable business practices. It highlights the importance of local market understanding and suggests innovative product and service solutions tailored to the unique demands of low-income consumers. The research concludes that FMCGs can achieve success in these challenging markets by employing strategies that are not only commercially viable but also socially responsible, aligning with sustainable and ethical business practices to tap into the potential of South Africa's BoP markets. This study contributes to academic and practical understanding by offering a nuanced view of the FMCG sector in BoP markets, emphasizing the necessity of a balanced approach that combines strategic penetration, sustainable growth, and continuous innovation.
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    How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa
    (2023) Nwadeyi, Prince; Luiz, John
    The study explores the impact of information asymmetry and intermediation on the uptake of life insurance in low-income communities in South Africa. The study was motivated by the significantly high penetration of funeral cover in low-income communities with a relatively low adoption of life insurance in these same communities. The literature highlights, in particular, the importance of intermediary incentives, intentions and motives, and how these contribute to the advancement of institutional work in dualistically structured markets. The main research question was, “How do intermediaries engage in institutional work to address information asymmetries in the uptake of life insurance in the South African low-income market?” The theoretical lens applied in this study is that of institutional work. To answer the research question, the researcher adopted a single instrumental case study methodology, specifically focusing on a medium-sized insurance company with a long history in South Africa. Semi-structured interviews based on a questionnaire were used to engage with relevant insurance personnel, intermediaries and consumers. The findings showed that information asymmetry persists because of intermediation and other consumer-specific dynamics which remain, owing to the absence of financial knowledge in low-income communities. The contribution of this thesis is the introduction of a model that has the potential to drive disintermediation and enable innovative access to life insurance in low-income communities in South Africa. The theoretical contribution of this study is to create awareness about the voids in dualistically structured markets, which result in information asymmetry partly as a result of the actions of intermediating actors who are dominant players in the insurance industry.
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    Information technology systems in public sector health facilities in developing countries: the case of South Africa
    (BioMed Central Ltd, 2013) Cline, Gregory; Luiz, John
    BACKGROUND:The public healthcare sector in developing countries faces many challenges including weak healthcare systems and under-resourced facilities that deliver poor outcomes relative to total healthcare expenditure. Global references demonstrate that information technology has the ability to assist in this regard through the automation of processes, thus reducing the inefficiencies of manually driven processes and lowering transaction costs. This study examines the impact of hospital information systems implementation on service delivery, user adoption and organisational culture within two hospital settings in South Africa. METHODS: Ninety-four interviews with doctors, nurses and hospital administrators were conducted in two public sector tertiary healthcare facilities (in two provinces) to record end-user perceptions. Structured questionnaires were used to conduct the interviews with both qualitative and quantitative information. RESULTS: Noteworthy differences were observed among the three sample groups of doctors, nurses and administrators as well as between our two hospital groups. The impact of automation in terms of cost and strategic value in public sector hospitals is shown to have yielded positive outcomes with regard to patient experience, hospital staff workflow enhancements, and overall morale in the workplace. CONCLUSION: The research provides insight into the reasons for investing in system automation, the associated outcomes, and organisational factors that impact the successful adoption of IT systems. In addition, it finds that sustainable success in these initiatives is as much a function of the technology as it is of the change management function that must accompany the system implementation.
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    Marketing strategies of multinational enterprises and their adaption to culturally distant host countries
    (2023) Mdladla, Ntandokayise; Luiz, John
    This research study explored how multinational enterprises (MNEs) adapt their marketing strategies to the level of cultural distance in their host countries. The research topic is relevant today as companies continue to expand their reach and enter countries which may have a high level of cultural distance compared to the home country. The research explored the marketing strategies of MNEs, for instance how different organisational communication structures such as a centralised and decentralised approach can impact the marketing communications of a company and their adaptation to different levels of cultural distance in host countries. To gain a more in-depth understanding, a qualitative and exploratory research was undertaken, and the case study approach was selected in analysing an advertising campaign in West Africa. Semi-structured interviews were conducted with experts within the marketing industry and employees within an MNE. The findings showed certain themes that came up in relation to the topic as found through the interviews. These included the generational difference in views on culturally or racially insensitive advertisements, how social media has possibly fuelled sensitivity to such advertisements, how the composition of the team could impact a company's ability to adapt to countries with a high level of cultural distance, and how the organisational structure of a company can impact the marketing communications of the company. It was found that a company's ability to adapt their marketing strategies to countries with a high level of cultural distance is also dependent on many factors, as identified in the themes previously listed, and to look at just the cultural distance in the Hofstede's model in isolation may prove more as a way an MNE may start to understand the impact of cultural distance and not an overall way in which to understand its impact on the marketing strategies. Culture distance is a topic that shall remain relevant to businesses that continue to expand their operations into different countries of the world. Therefore, this research explored how MNEs can adapt to the level of cultural distance and its role in their marketing strategies
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    Measuring fiscal incidence and its redistributive impact in Swaziland
    (2017) Lukhele, Mathale'a; Luiz, John
    According to Swaziland's National Development Strategy, the country's objectives are to improve the standard of living of all citizens, eradicate poverty, create employment, enhance gender equality and improve the country's human development ranking from a low human development rank to a high human development rank by 2022. Persistent poverty and the unequal distribution of income have, however, posed significant challenges for the country in achieving these development goals. This study assessed the extent to which the government of Swaziland has been able to use its fiscal policy, in particular the tax and public expenditure policies on health and education, to redistribute resources and reduce income inequality. The study also investigated the incidence of out-of-pocket expenses incurred by households in accessing public health and education facilities. Based on both the Swaziland Household Income and Expenditure Survey data collected in the 2010 national survey and the government's 2010 budget, the study found that the tax policy had had a slight redistributive effect, as the Gini coefficient, had dropped from 0.7909 (pre-tax income distribution) to 0.7424 (post-tax income distribution). Public expenditure on education improved the income of poor households by 32.83 per cent and had led to a further reduction in the Gini to 0.7185; however, public expenditure on tertiary education was poorly targeted as rich households were deriving a higher benefit than poor households. Out-of-pocket expenses on health were not regressive despite the fact that there was a low usage of health facilities by the low income households. On the other hand, education out-of-pocket expenses were found to be regressive and had a negative impact on the progression rates from primary education to higher learning institutions in the low income households. Overall it would appear that the country's fiscal policy has led to a reduction in the country's income inequality. However, the country has not made significant progress towards the achievement of its development goals, with the 2010 national household survey revealing that the poverty rate was still relatively high at 0.630, while the 2010 labour force survey revealed that unemployment was still high at 0.406 and the 2014 human development report showed that the country was still ranked low in terms of human development.
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    Opportunities and Challenges in African Real Estate Markets: Perceptions of Institutional Investors
    (2023) de Bruin, Rutger; Luiz, John
    The current body of literature regarding the African real estate environment is limited. While investing in emerging markets like Africa has demonstrated potential benefits, the actual inflow of investments into the African real estate sector remains low. One of the primary factors contributing to this is the inadequate availability of comprehensive information about the African real estate market. This study contributes to the body of knowledge by examining the primary opportunities and barriers perceived by institutional investors active in the African real estate market. The research is a qualitative, exploratory study into the perceptions of institutional investors on the African real estate environment. The findings are based on eleven semi-structured interviews with institutional investors that are responsible for making investment decisions into the real estate environment across Africa. The findings highlight that institutional investors consider a wide range of factors when making investment decisions into the African continent. The factors under consideration by institutional investors can give rise to challenges that render real estate investments potentially risky and unsafe. Nevertheless, institutional investors adeptly navigate these challenges through the implementation of specific strategies, which enable them to harness the existing opportunities. The study concludes that success in the African real estate environment hinges on possessing a comprehensive understanding of risk dynamics and a profound knowledge of the operating environment. The research acts as an information source for practitioners and lays groundwork for future research. The study contributes to the body of literature about the African real estate market and enhances our understanding about the decision-making process of institutional investors
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    Refugee entrepreneurship in Malawi: the nexus between social capital and entrepreneurship among refugees in adversity
    (2024) Msowoya, Richmond; Luiz, John
    The influx of refugees across the globe and largely confining refugees to refugee camps remains unresolved, complex, and uncertain. The quest for refugees to improve their livelihoods by engaging in entrepreneurship in host countries leads to harsh policies including encampment policies that restrict refugees to camps. Despite these restrictions and tough conditions in camps setups many refugees continue to thrive with entrepreneurship. Thus, the problem being addressed in this thesis is to explore how social capital develops to promote business entrepreneurship amongst refugees living in camps amid adversity in Dzaleka refugee camp in Malawi. The purpose is to comprehend how social capital develops among refugees in adversity to promote entrepreneurship within camps, between camps and host communities, between host countries and home countries despite various impediments imposed on refugees by host governments. I conduct an inductive, qualitative study of 64 participants over a period of three years. Due to biopolitics of encampment (the use of “state and humanitarian power” to control and manage displaced populations with the pretext of creating order of management), I managed to find four entrepreneurship pathways that refugees’ entrepreneurs utilize, namely homophilic networks(connections, affiliations, bonds, or linkages developed among groups or individuals sharing similar characteristics, aspirations, purposes, or intentions), bricolage, diversification, and adapting supply chains around institutional rules. My findings make four key contributions. Firstly, the study contributes towards research on the biopolitics of encampment, which has been under explored in extant literature. Secondly, the study provides insights on homophilic networks and how they promote business entrepreneurship ventures within the camp, and between the camp and host and home and third countries, and the role of social capital development amongst refugees in promoting business ventures. Thirdly, extant literature has not fully unpacked the interplay between intracamp, intercountry and international business entrepreneurship ventures among refugees living in camps, adding importance to the findings here. Finally, this study makes contributes to the literature by giving insights into the linkages refugee entrepreneurs develop to complex supply chains as they develop their business enterprises. My thesis concludes by providing practical contributions, strategies, and future research recommendations.
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    The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
    (2023) Butcher, Francis Hope; Luiz, John
    Firms have the ability to be influenced by their institutions and in turn have to capability to influence them. This relationship can become deeply complicated and nuanced in emerging economies where the quality of institutions is low and is worsened when the country is experiencing extreme turbulence in the form of conflict. This dissertation intends to discuss how firms may be impacted by institutions in resource intensive host markets, as well as their effect on fragile conflict dynamic ecosystems that existed prior to their arrival. Mozambique is used as a case study. The northern province, where internationalisation of foreign oil firms has occurred, has been impacted by a violent insurgency, causing the firms to declare force majeure (FM). The study aims to theoretically add to conflict dynamics in international business literature, through demonstrating the overall impact of MNEs in fragile ecosystems. The development and quality of institutions is what creates an ecosystem within a country. Therefore, focus will also be placed on the role of institutions in global strategy, and specifically how they played a significant part in determining the impact of an MNEs impact on the conflict ecosystem within Mozambique. The study concludes that the relationships in the business ecosystem are put under strain due to the unique insurgency in Mozambique, resulting in a collapse of business operations. This research is an inductive, exploratory, qualitative study, using multiple case studies of extractive multinational enterprises (MNEs) that have been operational in the northern province of Mozambique, and have been so since the discovery of gas in the area. The findings presented in this study were based on thirteen interviews, with participants being from either the MNEs in the area, the government or experts on the matter. There are many areas in which this research can make a significant contribution: the main are conflict dynamics, internationalisation into emerging economies, institutions within global strategy