OpenUCT :: Browsing by Department "Graduate School of Business"

Browsing by Department "Graduate School of Business"

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Open Access
Academic freedom and the university: Fifty years of debate
(Stellenbosch University, 2006) Hall, Martin
Contemporary debates about academic freedom and institutional autonomy in South Africa's 'liberal' universities began in the 1950s, stimulated by the policies and legislation for racial segregation. While the form that these debates had taken has differed from university to university, the University of Cape Town stands as a good case study for the arguments and counterarguments that have been made through the years. In this essay, I trace these arguments from the middle of the last century through to the present, and show that different positions remain unreconciled, suggesting in turn a lack of consensus about the role of the university in contemporary South African society.
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An analysis of corporate board networks in South Africa
(2009) Durbach, I N; Parker, H
In this paper we analyse the networks created from directors sitting on the boards of companies in South Africa. We consider two projections of this network: a director network, in which only directors are present and two directors are linked if they sit together on one or more common boards; and a firm network, in which only firms are present and an edge indicates that the two firms share one or more directors. We describe these networks in terms of the statistical properties that they possess, and compare them to theoretical values obtained under various random network models. The network analysis is the first to be applied to a relatively small emerging economy like South Africa. We find that many of the features previously found to hold for highly-developed countries also apply here, suggesting that corporate networks may be fairly robust to stages of economic development.
Open Access
An industry analysis of pharmaceutical production in South Africa
(2013) Naudé, C T W; Luiz, J M
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.
Open Access
Chinese business negotiations: South African firm experiences and perspectives
(2008) Horwitz, F; Hemmant, R; Rademeyer, C
South African business joint ventures in China are increasing. Successful negotiations are a key component when establishing a gateway into the Chinese market. This research is undertaken to establish South African business negotiators’ understanding of Chinese business negotiation styles and behaviours and determinants of cross-cultural negotiation. Primary data was obtained through quantitative ranking style questionnaires and semi-structured interviews with selected South African business people who have had business negotiations with Chinese firms. The research revealed that perceptions held by South African business negotiators do not differ substantially from that of Westerners with regards to aspects such as trust relationships, hierarchical decision making, long-term decision making, networks and the concept of ‘face’.
Open Access
Community structure and centrality effects in the South African company network
(2013) Durbach, I; Katshunga, D; Parker, H
This paper conducts a search for community structure in the South African company network, a social network whose elements are South African companies listed on the Johannesburg Stock Exchange. Companies are connected in this network if they share one or more directors on their respective boards. Discovered clusters, called communities, can be considered to be compartments of the network working relatively independently of one another, making their distribution and composition of some interest. We test whether the discovered communities of companies are (a) statistically significant, and (b) related to other attributes such as sector membership or market capitalization. We also investigate the relationship between the centrality of a company’s position in the network and its market capitalization.
Open Access
Competitiveness of the banking industry in the Southern African development community
(2014) Motelle, Sephooko Ignatius; Biekpe, Nicholas
The literature is replete with the determinants of economic growth and identifies financial development as one of the important drivers of growth. Financial development is viewed as a process through which financial intermediaries such as banks lubricate the economy by creating a conduit for resources to flow from surplus sectors to deficit sectors. Effective financial development depends on many factors such as financial integration which facilitates international trade and free mobility of capital. However, in order for the positive impact of financial integration to be fully felt on financial development, it must stimulate competition in the domestic banking market without eroding financial stability. Therefore, the central hypothesis of this study is that financial integration can enhance financial development if such integration makes the local banking industry more competitive without increasing its vulnerability to financial instability. The study employs various panel data techniques to test this hypothesis using the Southern African Development Community (SADC) as a case study. The findings reveal that the banking industry in SADC is characterised by monopolistic competition. In addition, financial integration enhances banking competitiveness in the region through removal of barriers to free flow of capital between countries. Furthermore, higher competition is found to be good for financial development as it reduces the magnitude of the financial intermediation spread. Moreover, the study finds that the flipside of financial integration lies in its potential to cause financial instability in the region with negative repercussions for financial intermediation. The findings imply that, even though financial integration is good for financial development through its ability to increase the degree of competition in the banking industry and reduce the spread between lending and deposit rates, member states must put policies in place to effectively prevent the likely erosion of financial stability. No single policy is sufficient on its own to achieve this. Therefore, this study recommends that as members of SADC move towards deeper financial integration, they must ensure that they formulate and implement sound and appropriate common policies in order to ensure that financial stability is not compromised as restrictions to capital-flows are abolished or reduced. Such a policy-mix requires four ingredients, namely; sound financial liberalisation policies, competition policies, macroeconomic policies and regulatory and supervisory policies.
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Concentration in the South African equity market and its implied restrictions on the long only equity fund manager's opportunity set
(2010) Raubenheimer, Heidi
South Africa‟s Equity market provides a large (in terms of volume) but concentrated investment environment. Domestic pension funds are restricted from diversifying globally and are thus faced with a restricted set of investment opportunities. This article describes and quantifies the extent of the concentration on the JSE historically and at present. The article describes the consequent limitations on long-only equity portfolio construction and the implications for the domestic long-only fund manager subject to various active weight limits. The analysis shows that the higher the allowable active bet sizes, the less consistently asset managers are able to implement their views and the less symmetric their response to forecasted excess returns can be. Consequently, the less competitive a long-only fund manager can be alongside hedge funds and similarly constrained long-short managers.
Open Access
Conflict reduction in cross-functional projects in South African automotive firms
(2008) Mueller, T; Parker, H; Ross, A
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.
Open Access
Designing disclosure
(2016) Sangham, Irani; Griffin-EL, Nosakhere
This research project's main aim was a pragmatic investigation into the process of social techno logy design. Specifically, it was focused on the design of social utilities, which are technologies that enable new spheres of virtual social interaction. This aim was achieve d through the investigation and transcription of the experiences of engaging in the design of a new social technology. The proposed technological system was aimed at addressing computer literacy within the Western Cape, through the design of a virtual learning utility. This project was embedded within an already established learning programme (Western Cape Government's Cape Access Project), which had several limitations regarding g scalability, usability and accessibility. The main research aim therefore was the exploration of these areas of concern through the lens of ontological design. These research goals were achieved through a qualitative approach. The main approach undertaken was a phenomenological one, which was used to grasp the essential experiences present in the situation of context and to understand the experiences of the design process within that context. This phenomenological approach was taken from a researchers point of view while and ethnographical analysis was used in conjunction with phenomenology, to elicit the shared phenomena of the intervention. Design science and design thinking was used to integrate and combine both the phenomenological and ethnographic analysis into a coherent transcription of this design process.
Open Access
Determinants of intention to adopt maize drying technologies among small-scale farmers in Kenya
(2017) Kariuki, Grace; Hamann, R
Maize, being the most common staple food across many parts of the world, especially sub-Saharan Africa, is, in most cases, preserved through sun drying techniques among small-scale farmers. This method is prone to significant losses, which could be avoided through the use of mechanised drying technologies. Unfortunately, many farmers in developing countries such as Kenya have yet to adopt this technique on a large scale. It is against this background that this research sought to identify the factors that influence the adoption of mechanised maize drying technologies among small-scale farmers in Kenya. This study was anchored in the Theory of Planned Behaviour (TPB), which offers a structured framework for predicting and explaining human behaviour based on personal attitudes, subjective norms, and perceived behavioural control. Financial constraints and the knowledge base of the farmers were also included in the analysis, as these are important factors in the likelihood of farmers adopting the technology. Data were collected by means of structured interviews with 397 farmers in Nakuru County, Kenya. Correlation analysis was used to determine the strength, magnitude, and significance of the relationships between the variables. Ordered logit, a regression model, was used to determine the relationship between the independent variables, which were: financial resources, personal attitudes, subjective norms, perceived behavioural control and knowledge, and the dependent variable, which was intention to adopt technologies. In addition, other control variables such as gender of the household head, farm size, age of the farmer, educational level of the household head and farm assets owned by the farmer were included as independent variables. The results indicated that 69.02 percent of farmers did not plan to utilise mechanised maize drying technologies, which is cause for concern from a policy perspective. The ordered logit results revealed that all the independent core factors significantly influenced adoption intentions. The farmers’ views related to their perceived behavioural control, and financial constraints negatively influenced their intentions to adopt mechanised maize drying technologies. Among the control variables, farm size and educational level positively influenced the adoption intention, while age had a negative influence. Based on these results, it is evident that there is a need to consider personal attitudes, subjective norms and perceived behavioural control of farmers, as well as the implementation of a nationwide campaign to encourage the adoption of mechanised maize drying techniques and a government strategy to bring the cost of credit down, while also ensuring its availability to small-scale farmers. The campaign will bridge the information gap and enhance adoption of mechanised maize drying technologies.
Open Access
Early-stage venture capital in South Africa: Challenges and prospects
(2013) Jones, Morgan; Mlambo, Chipo
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.
Open Access
Enabling a generation of social entrepreneurs: A study to establish if the practice of social entrepreneurship offers inclusive self-employment opportunities for disenfranchised South African youth
(2018) Carpenter, Janine; Shelley, Elanca
This study is concerned with contributing to solutions that address the problems of youth unemployment, inequality and poverty in South Africa, specifically among those youth who are being marginalised from participating equally in mainstream economic activities. It argues that financial and digital exclusion, as well as poor access to a quality education, are factors which are currently limiting these youths' economic potential and perpetuating a cycle of unemployment, inequality and poverty in South Africa. The literature and theory of social entrepreneurship presents a strong case to address unemployment, inequality and poverty, as well as to stimulate economic growth by creating new business and self-employment opportunities for the youth. This qualitative grounded theory study evaluates the theory of social entrepreneurship in practice, by comparing the theory to the lived realities of some disenfranchised youths in Cape Town. The study also provides an analysis of the systems of privilege and the dual economy that exist in South Africa. Through feedback received during interviews with a representative sample of the target group, the study offers new insights into the challenges faced when young people are seeking employment or want to start a business in the South African economy. Youth social entrepreneurship development and start-up incubation programmes arguably perform a critical function in facilitating inclusive economic participation among the youth. Developing new insights, concepts and recommendations to maximise these programmes' social impact is a critical function of this study, which ultimately hopes to contribute to the creation of more inclusive entrepreneurial opportunities for disadvantaged South African youth.
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Factors influencing venture capitalists' project financing decisions in South Africa
(2009) Van Deventer, B; Mlambo, C
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.
Open Access
A financial economic approach to management information in the wine industry
(2010) Du Toit, Chris
Wine is a beverage that accompanies and enhances a wide range of occasions, cuisines and even religious ceremonies in many cultures. It claims health benefits and brings wonderful memories to mind. We all have our own story to tell when it comes to wine. This however represents the consumer's experience. What is the producer's experience? Situation Wine markets across the globe are under pressure. According to Nielsen, over 3300 wine brands have flood grocery stores since 1999 and they now represent about 70% of active brands. South Africa owns 2.4% of the world's export market share, the 9th biggest, while wine production ranks 8t1, the world, producing 855,3 million liters for 1.7% of the worlds total production. Wine producers receive only 2% of the average R24 shelf price per 750m1 bottle of wine sold in supermarkets and at other retail outlets. On top of this the VinPro agricultural economist says wine production costs have increased by 17% but producers' incomes have risen only by an average of 3%. The industry had to deal with many challenges in its more than 300 year history e.g. the complete destruction of vineyards in 1890's due to phylloxera, single channel marketing, etc. but the economic reality of income not keeping pace with rising production costs brings one of the biggest challenges yet to the industry. Currently South Africa is known for its superb technical skills as far as wine making and viticulture is concerned. This can be seen from the amount of awards we as a country win in international competitions. It does not however create the necessary profits on the bottom line. It helps to sell the product, but still wine producers are more and more under extreme financial pressure and the current world economic condition is not helping. It is just not good enough to make the best possible wine any more, as several other forces are obviously at play here. We need to get an improved understanding of what really makes this business viable.
Open Access
Monitoring and evaluation practice to discern meaningful change in community-based early childhood development centres
(2017) Sikobi, Thembeka; Hall, Martin
After 23 years of democracy South Africa still faces poor education quality, a class-based education system and poor academic performance. These issues are exacerbated by South Africa’s apartheid history and perpetual inequality. Access to quality Early Childhood Education (ECD) is recognised as a solution that can improve education outcomes and overcome poverty and inequality in the country. However, challenges remain in the effective implementation of ECD programmes. This study seeks to investigate the quality of ECD centres in rural communities in order to gain a deeper understanding of the context in which they operate and be in a better position to inform public funding policies and investment decisions. The main research question asks how the quality of ECD that is delivered through community-based ECD centres can be improved either through the use of public funding other funding sources? Approaches to monitoring and evaluation (M&E) and impact considerations are examined in community settings. From this, theoretical and practical lessons are drawn to form the basis for analysis of the research findings. The study adopts a predominantly qualitative approach using interviews with parents and teachers, as well as observations and questionnaires. A total of 40 ECD centres were surveyed and 21 interviews conducted in KwaZulu-Natal (KZN) province in South Africa. The study areas are three rural communities, namely Vulamehlo, Izingolweni and Msinga. Based on quality definitions explored in this dissertation, the study finds that the need to improve the quality of ECD service delivery remains pertinent and that there is a gap in parental ECD knowledge and practice.
Open Access
Network diversity structure closeness and innovation of South African micro-entrepreneurs
(2014) Griffin-EL, Eliada
This study qualitatively explores the embeddedness of the innovation process of South African microbusinesses by investigating how small local entrepreneurs in the Greater Johannesburg area utilise their social networks to source entrepreneurial value. A comparative grounded theory analysis enabled the original conceptualisation of Network Diversity Structure and formulates the central proposition that the network dimensions of diversity and closeness enable the innovation process among manufacturing microbusinesses more so than in service microbusinesses. Furthermore, the study proposes that both a structural and relational/experiential dimension of closeness, enables micro-entrepreneurs to create meaning and knowledge collaboratively with other entrepreneurs and actors. This socially facilitated process of exchanging ideas, information, and resources is central to the innovation process of firms traditionally limited by both their size and historical social institutions.
Open Access
Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty
(Multidisciplinary Digital Publishing Institute, 2023-06-14) Olalere, Oluwaseyi Ebenezer; Mukuddem-Petersen, Janine
This study examines the effects of product market competition on corporate investment and firm value and the moderating role of economic policy uncertainty on this relationship. The firm-level data of 1971 listed corporate firms for BRIC (Brazil, Russia, India, China) countries during 2009–2020 were used, totaling 23,652 observations. Using the GMM estimates, our results depict that product market competition significantly influences corporate investment and firm value in BRIC countries. The result also reveals that economic policy uncertainty plays a significant role in the impact of product market competition on corporate investment and firm value at Brazilian, Russian, Indian, and Chinese firms. The study’s findings contribute to the body of knowledge by providing new evidence on the relationship between PMC, corporate investment, and firm value. These findings are vital for policymakers and regulatory bodies to focus on economic uncertainty in a competitive environment without jeopardizing investment returns in emerging markets.
Open Access
The role that courage plays in an experiential learning process
(2014) Shelley, Elanca; Ryan, Tom
Experiential learning is a well-known learning theory that underpins management development. This study presents a causal theory that is based on experiential learning and explains why some students experience a transformational learning experience that increases their management effectiveness and others do not. This theory was developed within a critical realist ontology and it used a constructivist grounded theory methodology to emerge the key variables that formed the theory. Prior to the grounded theory study, a pilot study was conducted to develop the conceptual framework for the research. This pilot study included approximately 240 research participants from within the classrooms in my work context. The conceptual framework facilitated the development of the key research question: How do engaged, learning ready students, who can manage their own learning process, undergo transformational learning experiences that increase management effectiveness?
Open Access
Securitisation in South Africa: 2000-2007
(2008) Moyo, Z; Firer, C
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.
Open Access
The impact of farm input subsidies on economic efficiency of maize production in Malawi
(2018) Chiromo, John; Alhassan, Abdul Latif; Ocran, Matthew
The study analyzed the impact of the farm input subsidy programme (FISP) on the technical, allocative and economic efficiency and determining factors associated with these efficiencies of 12, 271 smallholder maize farmers from 2010 IHS3 dataset in Malawi. Descriptive statistics, stochastic frontier approach as and a Cobb-Douglas production function were applied. Yield responsiveness to production inputs was estimated by computing input elasticities. The findings indicate that technical efficiency of smallholder maize farmers ranged from 15.7 to 78.9 with a mean of 61.3 percent reflecting a substantial level of inefficiency. The allocative efficiency scores were between 23.5 and 86.2 with a mean of 66.9 percent reflecting a substantial level of allocative inefficiency. The economic efficiency scores were between 14.1 and 74.6 with amean of 59.2 percent reflecting a substantial economical inefficiency. An estimated return to scale was 0.87 indicating that during the period under review, smallholder maize farming decreased by about 13 percent. The results of second stage Tobit regression estimations indicates that the FISP programme improved the efficiencies of maize farmers in Malawi. In addition, t farmers’ age, farming experience, education years, having an income generating activity and receiving remittance were also identified as significant drivers of production capacity of smallholder farmers maize. However, farmers’ marital status, family size and distance to the market had a negative impact on smallholder farmers’ capacity in maize production. Smallholder farmers in Malawi were experiencing a decreased return to scale meaning that they were technical, allocative and economically inefficient in maize production. From the findings, among other issues to be considered for the improvement of technical, allocative and economic efficiencies of maize production among smallholders farmers, the government should support only energetic farmers, make farm inputs available and accessible to farmers, continued advocacy on v adoption of family planning to reduce population growth to carter for scarcity of resources, increase and enhance extension services to help in educating these smallholder farmers in handling new technologies associated with modern agriculture, encourage them to engage in IGAs to complement FISP in purchasing farm inputs, increased and extended cash transfer program to economically empower these smallholder farmers.