A framework for enhancing the transgenerational potential of indigenous african family businesses
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2020
- Subjects: Family-owned business enterprises -- Succession Indigenous peoples -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/48894 , vital:41168
- Description: Family businesses are the backbone of many economies around the globe and are believed to constitute over two-thirds of all businesses worldwide. For nearly 300 years, the Southern African economy has been developing as a consequence of the contribution of family businesses to the region’s economy. Despite their importance to the economies of countries, their overall failure rate remains high. Given the important economic and societal contribution that family businesses make, their survival rates are a matter of concern. As far as can be established, little research has been conducted among indigenous African family businesses. The research done to date lacks depth in terms of the topics covered and the countries sampled. The majority of studies on family businesses have been done in European, American and Asian settings. Notably, the research project on Successful Transgenerational Entrepreneurship Practices (STEP) has investigated transgenerational entrepreneurship among family businesses around the world. The STEP project proposes a theoretical framework, known as the STEP framework, which to date has not been applied to the indigenous African context. There is a great need for deeper insights into, and an increased understanding of the practices implemented among indigenous African family businesses that have survived across the generations, and of the context in which these businesses operate. Therefore, the primary objective of this study is to explore and describe the factors that influence the transgenerational potential of indigenous African family businesses so as to assess the appropriateness of an existing non-African framework, namely the STEP framework, and to reconfigure it for the African context. The STEP framework proposes that various contextual factors influence both the entrepreneurial orientation and the familiness resource pools of family businesses, which in turn influence each other, and ultimately the transgenerational potential of the family business. The underlying theory applied in the study is Hofstede’s Cultural Dimensions model. Hofstede’s model provides theoretical support for the belief that the context in which a theory or framework is applied has a big influence on the successful application of such a framework. Therefore, a need exists to contextualise the STEP framework to the context in which it is being applied. An interpretivist research paradigm and a qualitative methodological approach were deemed the most suitable for the current study, as this paradigm and approach enabled the researcher to address the dynamics and invisible issues within family businesses. The current study adopted a multiple case study methodology. Adopting this methodology allowed for a deeper understanding of the object of interest. The three cases were systematically selected, using purposive sampling, to ensure that a credible and indicative sample was obtained. The criteria used for selection were based on the STEP project guidelines and the three businesses selected were from South Africa, Zimbabwe and Botswana, of indigenous African heritage and have showed sustained growth and success since their establishment. The reason for these selection criteria was to ensure that the study appropriately addressed the defined research objectives and the gap in the body of knowledge on transgenerational entrepreneurship in the African context. The instrument used to guide the key-informant interviews in this research was a semi-structured interview schedule adapted from the STEP project interview schedule. Once all the data was collected, a combination of directed content analysis and explanation building was used to analyse the data. A framework for enhancing the transgenerational potential of indigenous African family businesses is proposed in this study, based on the practices adopted by the successful indigenous African family businesses which participated. The framework developed adapts the STEP framework for the indigenous African family business context. As in the STEP framework, the framework proposed for indigenous African family businesses highlights several external contextual factors as influencing both the familiness resource pools and the dimensions of entrepreneurial orientation. In the context of indigenous African family businesses, the external contextual factors most influential are the philosophy of Ubuntu, the collectivist national culture, as well as the community and extended family commitments. The external contextual factors, namely, the business environment and the industry in which the business operates, were found to be particularly influential on the entrepreneurial orientation displayed by the participating family businesses. All eight familiness resource pools, as well as the five dimensions of entrepreneurial orientation as proposed in the STEP framework, still form part of the framework proposed for indigenous African family businesses. However, for some the nature thereof differed somewhat from the original descriptions. Therefore, the original names were adapted to better describe these concepts as applicable to an indigenous African family business context. The proposed framework supports the multi-dimensional nature of performance outcomes among indigenous African family businesses. It proposes that in an indigenous African family business context, entrepreneurial performance outcomes are important to the extent that they contribute to achieving the financial performance outcomes, while the financial performance outcomes are important to the extent that they contribute to achieving the social performance outcomes. This study contributes to a greater understanding of successful indigenous African family businesses and their best practices, specifically an understanding of the practices adopted with regards to the familiness resource pools and entrepreneurial orientation. Furthermore, this study has expanded on the understanding of paternalism in that it has provides greater clarity on the nature of this leadership style, as well as the positive outcomes associated with it, in an African context. The study also has significance for educators, who can incorporate the lessons learned from it into their entrepreneurship and family business teaching.
- Full Text:
- Date Issued: 2020
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2020
- Subjects: Family-owned business enterprises -- Succession Indigenous peoples -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/48894 , vital:41168
- Description: Family businesses are the backbone of many economies around the globe and are believed to constitute over two-thirds of all businesses worldwide. For nearly 300 years, the Southern African economy has been developing as a consequence of the contribution of family businesses to the region’s economy. Despite their importance to the economies of countries, their overall failure rate remains high. Given the important economic and societal contribution that family businesses make, their survival rates are a matter of concern. As far as can be established, little research has been conducted among indigenous African family businesses. The research done to date lacks depth in terms of the topics covered and the countries sampled. The majority of studies on family businesses have been done in European, American and Asian settings. Notably, the research project on Successful Transgenerational Entrepreneurship Practices (STEP) has investigated transgenerational entrepreneurship among family businesses around the world. The STEP project proposes a theoretical framework, known as the STEP framework, which to date has not been applied to the indigenous African context. There is a great need for deeper insights into, and an increased understanding of the practices implemented among indigenous African family businesses that have survived across the generations, and of the context in which these businesses operate. Therefore, the primary objective of this study is to explore and describe the factors that influence the transgenerational potential of indigenous African family businesses so as to assess the appropriateness of an existing non-African framework, namely the STEP framework, and to reconfigure it for the African context. The STEP framework proposes that various contextual factors influence both the entrepreneurial orientation and the familiness resource pools of family businesses, which in turn influence each other, and ultimately the transgenerational potential of the family business. The underlying theory applied in the study is Hofstede’s Cultural Dimensions model. Hofstede’s model provides theoretical support for the belief that the context in which a theory or framework is applied has a big influence on the successful application of such a framework. Therefore, a need exists to contextualise the STEP framework to the context in which it is being applied. An interpretivist research paradigm and a qualitative methodological approach were deemed the most suitable for the current study, as this paradigm and approach enabled the researcher to address the dynamics and invisible issues within family businesses. The current study adopted a multiple case study methodology. Adopting this methodology allowed for a deeper understanding of the object of interest. The three cases were systematically selected, using purposive sampling, to ensure that a credible and indicative sample was obtained. The criteria used for selection were based on the STEP project guidelines and the three businesses selected were from South Africa, Zimbabwe and Botswana, of indigenous African heritage and have showed sustained growth and success since their establishment. The reason for these selection criteria was to ensure that the study appropriately addressed the defined research objectives and the gap in the body of knowledge on transgenerational entrepreneurship in the African context. The instrument used to guide the key-informant interviews in this research was a semi-structured interview schedule adapted from the STEP project interview schedule. Once all the data was collected, a combination of directed content analysis and explanation building was used to analyse the data. A framework for enhancing the transgenerational potential of indigenous African family businesses is proposed in this study, based on the practices adopted by the successful indigenous African family businesses which participated. The framework developed adapts the STEP framework for the indigenous African family business context. As in the STEP framework, the framework proposed for indigenous African family businesses highlights several external contextual factors as influencing both the familiness resource pools and the dimensions of entrepreneurial orientation. In the context of indigenous African family businesses, the external contextual factors most influential are the philosophy of Ubuntu, the collectivist national culture, as well as the community and extended family commitments. The external contextual factors, namely, the business environment and the industry in which the business operates, were found to be particularly influential on the entrepreneurial orientation displayed by the participating family businesses. All eight familiness resource pools, as well as the five dimensions of entrepreneurial orientation as proposed in the STEP framework, still form part of the framework proposed for indigenous African family businesses. However, for some the nature thereof differed somewhat from the original descriptions. Therefore, the original names were adapted to better describe these concepts as applicable to an indigenous African family business context. The proposed framework supports the multi-dimensional nature of performance outcomes among indigenous African family businesses. It proposes that in an indigenous African family business context, entrepreneurial performance outcomes are important to the extent that they contribute to achieving the financial performance outcomes, while the financial performance outcomes are important to the extent that they contribute to achieving the social performance outcomes. This study contributes to a greater understanding of successful indigenous African family businesses and their best practices, specifically an understanding of the practices adopted with regards to the familiness resource pools and entrepreneurial orientation. Furthermore, this study has expanded on the understanding of paternalism in that it has provides greater clarity on the nature of this leadership style, as well as the positive outcomes associated with it, in an African context. The study also has significance for educators, who can incorporate the lessons learned from it into their entrepreneurship and family business teaching.
- Full Text:
- Date Issued: 2020
The impact of financial developments on economic growth in Ghana: evidence from the manufacturing industries
- Authors: Brafi, Paul Osei
- Date: 2019
- Subjects: Economic development -- Ghana , Finance -- Ghana Manufactures -- Finance -- Ghana
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/37184 , vital:34135
- Description: This study provides an analysis of financial and growth dynamics with a view to assess the impact of financial development on economic growth in Ghana. The study also examines the extent to which financial developments in Ghana are affecting capital accumulation and industrial sector growth. The analysis was performed by examining the financial development indicators and economic growth data for Ghana over the period from 1965 to 2016. The study was motivated by the theoretical indications that improvements in financial intermediation within the economy can induce growth of the real sector and thus lead to economic growth. There have been notable structural and financial sector reforms in Ghana since the early and late 1980s. The indications in the financial sector portray improvement in the measures of financial development in the post-reform era as compared to the years before. The findings of the study complement existing research findings and information on finance-growth association as well as the influence that finance has on the sources of growth. The study adopted real per capita gross domestic product (GDP) as a measure of economic growth. In addition, three real sector indicators serving as the sources of growth, included; capital accumulation, industrial value-added and manufacturing value added. The analysis also adopts four financial indicators, expressed as percentage shares of GDP, namely; domestic credit to private sector, total domestic credit provided by financial sector, broad money supply and financial sector deposits—as measures of financial development. The analysis of the impact of the financial development on capital accumulation, industrial output growth, manufacturing productivity and economic growth were estimated using the linear regression estimation techniques within the GMM estimation approach. The study, additionally, examined the short-run and long-run impacts of financial development on economic growth indicators by employing the Vector Autoregressive Regression (VAR) within the Autoregressive Distributed Lag (ARDL) approach. The study further assesses the direction of causality between financial development and economic growth indicators using the cointegration and Engle-Granger causality testing approach within VAR models. The Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of economic growth and to assess the sensitivity of economic growth to financial development and macro-economic shocks. This assessment was carried out to examine the maximising behaviour of financial development and to find out if there exists threshold point beyond which finance adversely affects economic growth in Ghana. The results showed that credit to private sector shows a strong positive persistence in promoting economic growth in Ghana. The results show that financial development dynamics in Ghana positively affect long run economic growth and further indicate that the rate of impact was relatively higher in the post reform period of 1984 to 2016. The study further found a bi-directional causal association between financial development and economic growth. Regarding the sources of growth, the study found that financial development strongly contributes positively to capital accumulation in the long-term, however, the findings further suggested that, to some extent, the growing size of finance dampens capital formation and economic growth. This suggested the existence of inefficiencies in the expanding size of total credit offered by the financial system in Ghana. The study further found a long-run positive association between financial development and industrial productivity (except for manufacturing) growth in Ghana, with industry growth substantially determined by private credit. The results of the assessment on the sensitivity of economic growth to shocks in financial development indicators show that Ghana ‘s economic growth is, to a larger extent, influenced by domestic credit provided to the private sector. Also, the results showed that economic growth has been highly responsive to macro-economic shocks such as government expenditure and industrial sector growth although industrial growth seems to show a strong negative persistence on Ghana ‘s economy. The results from the analysis of finance and economic growth shows that existence of different optimal growth maximising points domestic credit, broad money, financial sector deposits and the overall financial development ratios as depicted by the various inverted U-shaped relationship between the financial development indicators and economic growth. The optimal size or maximising positions or thresholds for private credit and total credit were found to be at approximately 20.0 per cent and 28.0 per cent of GDP, respectively. On the other hand, the optimal size or minimum positions or thresholds for broad money supply and total financial sector deposits were found to be at approximately 19.0 per cent and 10.0 per cent of GDP, respectively. With regards to broad money supply-to-GDP and financial sector deposit-to-GDP ratios, the respective averages of 23.19 per cent and 13.77 per cent for the period 1965-2015 are higher than the minimum required thresholds of 19.00 per cent and 10.00 per cent, respectively. The findings show that financial developments have a strong positive association with economic growth, but the results also give the indication that although financial development can enhance growth and inefficiencies in the financial system can equally dampen growth at some levels. overall, the study found that financial reforms have positively contributed to economic growth in Ghana and the impacts of financial development on economic growth in Ghana have been higher in the post-reform era. The effect of financial reforms on capital accumulation was not significant although the study established that the impact of structural reforms was strong and adversely affected capital accumulation in Ghana. With regards to the industrial productivity growth, the study found a positive association between financial development and industry growth in Ghana. It was, however, observed that financial reforms have fails to significantly affect growth of industrial productivity and the impact of financial development on industry sector growth in Ghana are low but the sector experienced relatively higher growth in the pre-reform era.
- Full Text:
- Date Issued: 2019
- Authors: Brafi, Paul Osei
- Date: 2019
- Subjects: Economic development -- Ghana , Finance -- Ghana Manufactures -- Finance -- Ghana
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/37184 , vital:34135
- Description: This study provides an analysis of financial and growth dynamics with a view to assess the impact of financial development on economic growth in Ghana. The study also examines the extent to which financial developments in Ghana are affecting capital accumulation and industrial sector growth. The analysis was performed by examining the financial development indicators and economic growth data for Ghana over the period from 1965 to 2016. The study was motivated by the theoretical indications that improvements in financial intermediation within the economy can induce growth of the real sector and thus lead to economic growth. There have been notable structural and financial sector reforms in Ghana since the early and late 1980s. The indications in the financial sector portray improvement in the measures of financial development in the post-reform era as compared to the years before. The findings of the study complement existing research findings and information on finance-growth association as well as the influence that finance has on the sources of growth. The study adopted real per capita gross domestic product (GDP) as a measure of economic growth. In addition, three real sector indicators serving as the sources of growth, included; capital accumulation, industrial value-added and manufacturing value added. The analysis also adopts four financial indicators, expressed as percentage shares of GDP, namely; domestic credit to private sector, total domestic credit provided by financial sector, broad money supply and financial sector deposits—as measures of financial development. The analysis of the impact of the financial development on capital accumulation, industrial output growth, manufacturing productivity and economic growth were estimated using the linear regression estimation techniques within the GMM estimation approach. The study, additionally, examined the short-run and long-run impacts of financial development on economic growth indicators by employing the Vector Autoregressive Regression (VAR) within the Autoregressive Distributed Lag (ARDL) approach. The study further assesses the direction of causality between financial development and economic growth indicators using the cointegration and Engle-Granger causality testing approach within VAR models. The Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of economic growth and to assess the sensitivity of economic growth to financial development and macro-economic shocks. This assessment was carried out to examine the maximising behaviour of financial development and to find out if there exists threshold point beyond which finance adversely affects economic growth in Ghana. The results showed that credit to private sector shows a strong positive persistence in promoting economic growth in Ghana. The results show that financial development dynamics in Ghana positively affect long run economic growth and further indicate that the rate of impact was relatively higher in the post reform period of 1984 to 2016. The study further found a bi-directional causal association between financial development and economic growth. Regarding the sources of growth, the study found that financial development strongly contributes positively to capital accumulation in the long-term, however, the findings further suggested that, to some extent, the growing size of finance dampens capital formation and economic growth. This suggested the existence of inefficiencies in the expanding size of total credit offered by the financial system in Ghana. The study further found a long-run positive association between financial development and industrial productivity (except for manufacturing) growth in Ghana, with industry growth substantially determined by private credit. The results of the assessment on the sensitivity of economic growth to shocks in financial development indicators show that Ghana ‘s economic growth is, to a larger extent, influenced by domestic credit provided to the private sector. Also, the results showed that economic growth has been highly responsive to macro-economic shocks such as government expenditure and industrial sector growth although industrial growth seems to show a strong negative persistence on Ghana ‘s economy. The results from the analysis of finance and economic growth shows that existence of different optimal growth maximising points domestic credit, broad money, financial sector deposits and the overall financial development ratios as depicted by the various inverted U-shaped relationship between the financial development indicators and economic growth. The optimal size or maximising positions or thresholds for private credit and total credit were found to be at approximately 20.0 per cent and 28.0 per cent of GDP, respectively. On the other hand, the optimal size or minimum positions or thresholds for broad money supply and total financial sector deposits were found to be at approximately 19.0 per cent and 10.0 per cent of GDP, respectively. With regards to broad money supply-to-GDP and financial sector deposit-to-GDP ratios, the respective averages of 23.19 per cent and 13.77 per cent for the period 1965-2015 are higher than the minimum required thresholds of 19.00 per cent and 10.00 per cent, respectively. The findings show that financial developments have a strong positive association with economic growth, but the results also give the indication that although financial development can enhance growth and inefficiencies in the financial system can equally dampen growth at some levels. overall, the study found that financial reforms have positively contributed to economic growth in Ghana and the impacts of financial development on economic growth in Ghana have been higher in the post-reform era. The effect of financial reforms on capital accumulation was not significant although the study established that the impact of structural reforms was strong and adversely affected capital accumulation in Ghana. With regards to the industrial productivity growth, the study found a positive association between financial development and industry growth in Ghana. It was, however, observed that financial reforms have fails to significantly affect growth of industrial productivity and the impact of financial development on industry sector growth in Ghana are low but the sector experienced relatively higher growth in the pre-reform era.
- Full Text:
- Date Issued: 2019
A longitudinal investigation into employability : student transition and experiences from tertiary education into the labour market
- Authors: Harry, Tinashe Timothy
- Date: 2018
- Subjects: Employability Graduate students Labor market
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/11053 , vital:37015
- Description: Orientation: Several policies have been formulated by the government to redress the inequalities of apartheid. However, the policies have not yielded any positive results as many graduates from Historically Disadvantaged Institutes (HDIs) continue to struggle in the open labour market as compared to graduates from Historically Advantaged Institutes (HAIs). This has been mainly attributed to the legacy of apartheid in several previous studies. As a result, most of these previously disadvantaged individuals (mostly Black Africans) struggle to make the transition from higher education into the world of work. Research Purpose: This study thus explores the journeys of these Black African students from HDIs to understand the transition and experiences from tertiary education into the labour market. Further, the research sought to understand how these transitions and experiences manifest in a context of high unemployment. Finally, the resolution tactics used by students in such a context are given attention. Research approach, design and method: A longitudinal qualitative approach was deemed appropriate for the study as the aim was to understand the changes that occurred over time. The data was collected over a two-year period. A narrative inquiry was utilized as it allowed the participants to share their perceptions without limitations. A total of 30 participants partook in the study. The participants were selected using a purposive sampling to ensure the right participants were involved in the study. The main criteria for selection to participate was that the participants had to be enrolled with a HDI. Main findings: The narratives of the participants led to the formulation of six main themes that were regarded as affecting the transitions and experiences of the Black graduates from HDIs; namely, (1) socio-economic background, (2) education system, (3) labour market experiences, (4) geographical location, (5) social capital and (6) student resolutions to the challenges of employability. A previously disadvantaged background resulted in the participants being recipients of poor education quality, no social networks or information to navigate the labour market and limited access to the labour market due to secluded residential areas. Subsequently, most participants were unable to take responsibility of enhancing their own employability. Contribution: It is not the sole responsibility of the higher education institutes to produce employable graduates, but it's a process that should also involve government, students and employers. As long as the social inequality remains an issue in the country all the efforts to improve employability and transition into the open labour market will be in vain. Furthermore, employers must work together with higher education institutes by offering programs such as internships and career expos to enhance the employability of the graduates. A Graduate Transition Model (GTM) is suggested based on the findings of this research.
- Full Text:
- Date Issued: 2018
- Authors: Harry, Tinashe Timothy
- Date: 2018
- Subjects: Employability Graduate students Labor market
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/11053 , vital:37015
- Description: Orientation: Several policies have been formulated by the government to redress the inequalities of apartheid. However, the policies have not yielded any positive results as many graduates from Historically Disadvantaged Institutes (HDIs) continue to struggle in the open labour market as compared to graduates from Historically Advantaged Institutes (HAIs). This has been mainly attributed to the legacy of apartheid in several previous studies. As a result, most of these previously disadvantaged individuals (mostly Black Africans) struggle to make the transition from higher education into the world of work. Research Purpose: This study thus explores the journeys of these Black African students from HDIs to understand the transition and experiences from tertiary education into the labour market. Further, the research sought to understand how these transitions and experiences manifest in a context of high unemployment. Finally, the resolution tactics used by students in such a context are given attention. Research approach, design and method: A longitudinal qualitative approach was deemed appropriate for the study as the aim was to understand the changes that occurred over time. The data was collected over a two-year period. A narrative inquiry was utilized as it allowed the participants to share their perceptions without limitations. A total of 30 participants partook in the study. The participants were selected using a purposive sampling to ensure the right participants were involved in the study. The main criteria for selection to participate was that the participants had to be enrolled with a HDI. Main findings: The narratives of the participants led to the formulation of six main themes that were regarded as affecting the transitions and experiences of the Black graduates from HDIs; namely, (1) socio-economic background, (2) education system, (3) labour market experiences, (4) geographical location, (5) social capital and (6) student resolutions to the challenges of employability. A previously disadvantaged background resulted in the participants being recipients of poor education quality, no social networks or information to navigate the labour market and limited access to the labour market due to secluded residential areas. Subsequently, most participants were unable to take responsibility of enhancing their own employability. Contribution: It is not the sole responsibility of the higher education institutes to produce employable graduates, but it's a process that should also involve government, students and employers. As long as the social inequality remains an issue in the country all the efforts to improve employability and transition into the open labour market will be in vain. Furthermore, employers must work together with higher education institutes by offering programs such as internships and career expos to enhance the employability of the graduates. A Graduate Transition Model (GTM) is suggested based on the findings of this research.
- Full Text:
- Date Issued: 2018
Parental influences on the next generation’s intention to join the family business
- Authors: Saunders, Shelley Beryl
- Date: 2018
- Subjects: Family-owned business enterprises -- Succession , Family-owned business enterprises -- Management Family corporations -- Management Success in business
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/35072 , vital:33612
- Description: Family businesses play an important role worldwide and in South Africa, in terms of their economic contribution and their ability to create jobs. However, the unwillingness of next generation family members (NGFMs) to join the family business seriously jeopardises its long-term survival. This is a matter of great concern for family business owners who in general have a strong desire to pass on the business to the next generation and to preserve the family’s legacy. Of the many factors relating to a person’s choice of career, parents are by far the most influential. Against this background, the purpose of this study was to gain a better understanding of the influence that parents have on the NGFM’s intentions to join the family business as well as the factors that moderate this influence. Establishing how parents influence an NGFM’s intention to join the family business makes an important theoretical contribution to family business, succession and entrepreneurial literatures, and holds both practical and theoretical relevance. The literature review provided an overview of the field of family business and discussed the nature of these businesses. Several frameworks, theories and perspectives relating to family businesses were elaborated on. The important role that family businesses play in the economies of countries and the unique challenges they face were highlighted. One of the most important challenges facing family businesses is that of transgenerational succession and the willingness of the next generation to make the family business their career choice. Several behaviour and career choice theories were discussed, particularly in relation to the South African context, and a summary of all the factors influencing career choice in terms of these theories was presented. Several parental influences on career choice were identified and examined in detail, namely Parent–child relationship, Parents’ job characteristics, Parental financial security, Parental job satisfaction, Parental identification, Parental expectations, Parental support and Parental style. Additionally, the influence of each parental influences on NGFMs, in a family business context, was highlighted. Based on anecdotal and empirical support, these parental influences were hypothesised as influencing the dependent variable in this study, namely Intention to join the family business. Based on the social cognitive career theory, Self-efficacy and Outcome expectations were hypothesised as moderating the aforementioned relationships. This study adopted a positivist research paradigm and a quantitative methodological approach that was deductive in nature. The methodology adopted to collect primary data was a cross-sectional analytical survey. A structured questionnaire was distributed to respondents who were identified by means of judgemental sampling and 453 completed questionnaires were subjected to statistical analysis. The validity of the scales measuring the dependent, moderating and independent variables was assessed by means of factor analysis and the reliability thereof by calculating Cronbach’s alpha coefficients. Both descriptive and inferential statistics were calculated. Multiple regression analysis (MRA) was used to assess the hypothesised relationships. The findings show that only one third of the respondents agreed that they had Intentions to join the family business. Furthermore, the results of the MRA reported significant and positive relationships between the independent variables Parental expectations, Perceived parental outcomes, and Parental identification, and the dependent variable Intention to join the family business. The results of the moderated regression analysis revealed that Self-efficacy and Outcome expectations do not moderate the relationships between all the parental influences investigated and Intention to join the family business as hypothesised. However, a significant positive relationship at the ten per cent confidence level was reported between the interaction effect, Self-efficacy x Perceived parental outcomes, and Intention to join the family business. A significant positive relationship at the five per cent confidence level was also reported between the interaction effect Outcome expectations x Parental identification, and Intention to join the family business. Based on the findings of this study, numerous recommendations were made. This study makes a contribution to both theory and practice. In terms of theory, the results have highlighted the applicability of both the theory of planned behaviour and the social cognitive career theory in explaining an NGFM’s Intention to join the family business. In addition, the applicability of these theories in the family business context has been confirmed. This study also contributes to the family business literature in that it provides new insights into how parents influence one of family businesses’ biggest challenges, namely their children not wanting to take over the family business. In terms of practice, the findings show that that several of the parental influences investigated do indeed increase the intention of NGFMs to join the family business. It is anticipated that these findings will encourage parents who own family businesses to take note of how they influence their children’s decision whether to join them in the family business, and ultimately to contribute to its possible long-term survival and success.
- Full Text:
- Date Issued: 2018
- Authors: Saunders, Shelley Beryl
- Date: 2018
- Subjects: Family-owned business enterprises -- Succession , Family-owned business enterprises -- Management Family corporations -- Management Success in business
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/35072 , vital:33612
- Description: Family businesses play an important role worldwide and in South Africa, in terms of their economic contribution and their ability to create jobs. However, the unwillingness of next generation family members (NGFMs) to join the family business seriously jeopardises its long-term survival. This is a matter of great concern for family business owners who in general have a strong desire to pass on the business to the next generation and to preserve the family’s legacy. Of the many factors relating to a person’s choice of career, parents are by far the most influential. Against this background, the purpose of this study was to gain a better understanding of the influence that parents have on the NGFM’s intentions to join the family business as well as the factors that moderate this influence. Establishing how parents influence an NGFM’s intention to join the family business makes an important theoretical contribution to family business, succession and entrepreneurial literatures, and holds both practical and theoretical relevance. The literature review provided an overview of the field of family business and discussed the nature of these businesses. Several frameworks, theories and perspectives relating to family businesses were elaborated on. The important role that family businesses play in the economies of countries and the unique challenges they face were highlighted. One of the most important challenges facing family businesses is that of transgenerational succession and the willingness of the next generation to make the family business their career choice. Several behaviour and career choice theories were discussed, particularly in relation to the South African context, and a summary of all the factors influencing career choice in terms of these theories was presented. Several parental influences on career choice were identified and examined in detail, namely Parent–child relationship, Parents’ job characteristics, Parental financial security, Parental job satisfaction, Parental identification, Parental expectations, Parental support and Parental style. Additionally, the influence of each parental influences on NGFMs, in a family business context, was highlighted. Based on anecdotal and empirical support, these parental influences were hypothesised as influencing the dependent variable in this study, namely Intention to join the family business. Based on the social cognitive career theory, Self-efficacy and Outcome expectations were hypothesised as moderating the aforementioned relationships. This study adopted a positivist research paradigm and a quantitative methodological approach that was deductive in nature. The methodology adopted to collect primary data was a cross-sectional analytical survey. A structured questionnaire was distributed to respondents who were identified by means of judgemental sampling and 453 completed questionnaires were subjected to statistical analysis. The validity of the scales measuring the dependent, moderating and independent variables was assessed by means of factor analysis and the reliability thereof by calculating Cronbach’s alpha coefficients. Both descriptive and inferential statistics were calculated. Multiple regression analysis (MRA) was used to assess the hypothesised relationships. The findings show that only one third of the respondents agreed that they had Intentions to join the family business. Furthermore, the results of the MRA reported significant and positive relationships between the independent variables Parental expectations, Perceived parental outcomes, and Parental identification, and the dependent variable Intention to join the family business. The results of the moderated regression analysis revealed that Self-efficacy and Outcome expectations do not moderate the relationships between all the parental influences investigated and Intention to join the family business as hypothesised. However, a significant positive relationship at the ten per cent confidence level was reported between the interaction effect, Self-efficacy x Perceived parental outcomes, and Intention to join the family business. A significant positive relationship at the five per cent confidence level was also reported between the interaction effect Outcome expectations x Parental identification, and Intention to join the family business. Based on the findings of this study, numerous recommendations were made. This study makes a contribution to both theory and practice. In terms of theory, the results have highlighted the applicability of both the theory of planned behaviour and the social cognitive career theory in explaining an NGFM’s Intention to join the family business. In addition, the applicability of these theories in the family business context has been confirmed. This study also contributes to the family business literature in that it provides new insights into how parents influence one of family businesses’ biggest challenges, namely their children not wanting to take over the family business. In terms of practice, the findings show that that several of the parental influences investigated do indeed increase the intention of NGFMs to join the family business. It is anticipated that these findings will encourage parents who own family businesses to take note of how they influence their children’s decision whether to join them in the family business, and ultimately to contribute to its possible long-term survival and success.
- Full Text:
- Date Issued: 2018
The impact of intra- and inter- regional integration on trade flows in Africa
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
Financial literacy training in the small, medium and microenterprises sector : effect on business growth in the Eastern Cape, South Africa
- Authors: Akpan, Iniobong Wilson
- Date: 2016
- Subjects: Economics Small business Business enterprises -- Finance
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/13608 , vital:39684
- Description: The centrality of financial literacy to business performance is increasingly becoming established in the literature, with several studies attributing business failures, especially in the small, medium and microenterprises (SMME) sector, to the failure of entrepreneurs to acquire needed levels of formal financial training. This emphasis represents a paradigm shift: small business failures were conventionally blamed on lack of access to capital, infrastructural deficits, lack of markets for SMME goods and services, regulatory constraints, and crime. In South Africa, and elsewhere in the developing world, this new orthodoxy has spurned new policy interventions aimed at improving the financial literacy levels in the SMME sector. Such is the drive to entrench formal literacy provisioning in the SMME sector that some microcredit providers now bundle financial management training into their SMME loan packages. However, there is a dearth of empirical studies that demonstrate, in any conclusive way, the effect of financial literacy training on small business growth and sustainability. The question, therefore, about whether formal financial literacy training actually leads to significant improvements in turnover levels and growth appears to be answered more as advocacy rather than on the basis of empirical evidence. It is against the backdrop of these arguments that the thesis adopted a quasi experimental design to study the business performance of a sample of SMME entrepreneurs who had received financial literacy training (the “treatment group”) at least two years before the study’s commencement and those who had had no financial literacy training at all (the “control group”). The objective was to determine whether any differences in business growth could be attributed to exposure to formal financial management training or the lack thereof. A survey was conducted with 40 respondents from each of the two groups (n = 80). The survey was triangulated with in-depth interviews of a randomly selected sample 10 of SMME operators from each of the two groups. The interviews sought to uncover the entrepreneurs’ narratives regarding the sources and salience of financial literacy in the sector. The study was conducted among SMME operators in Port Elizabeth, East London and Mthatha – the Eastern Cape’s major centres of commerce and industry. Data estimation was conducted using the Difference In Difference (DID) estimation model to determine whether financial literacy training has had any effect on the turnover of training recipients’ businesses (the treatment group) over that of non-training recipients (the control group). Also, the DID coefficient was used as a growth rate indicator to determine whether growth has occurred in training recipients’ businesses over non-training recipients businesses as a result of having received financial literacy training. The Propensity Score Matching (PSM) was used to estimate the average treatment effect (ATE) and the average treatment effect on the treated (ATET). Quantile DID correlations with covariates were also run to reveal the relationship between turnover (a growth variable) and the covariates as possible influencers of firm performance. The key findings of the study were that based on the specific financial variables tested, some basic financial management knowledge existed among members of the two groups of SMME operators, but there was very minimal application of the knowledge in the day-to-day running of the business. Operators utilise both formal financial literacy training and informal knowledge sources in the operation of their businesses. The study also found that in comparison, the difference in turnover between the treatment and control group at follow-up period was significant at a P value of 0.000. This gave rise to an overall DID P value of 0.000 in the estimation. However, the significance was in favour of control group businesses as the business of respondents in the “control group” (with no financial literacy training) performed better than that of respondents in the “treatment group” (who had received financial literacy training). Finally, the study found that financial literacy training had no effect on the growth of businesses in the short term as the growth rate of turnover of the treatment group was lower than that of the control group and the difference between the two rates was significant at a P value of 0.025. Also, compared to itself, the change in turnover levels of the treatment group was not significant in the pre- and post-training periods as revealed by the PSM ATET estimation result. Minimal changes in turnover of the treatment group was not significant at a P value of 0.124. The study concludes from these findings that while financial literacy remains a salient factor in business, scholarship about the real significance of financial literacy training on small business performance in the short term stands on a relatively shaky empirical foundation, especially when viewed against the background that many SMME entrepreneurs also rely on informal knowledge sources to make everyday business decisions. The study thus highlights the imperative of ensuring that knowledge-related interventions in the SMME sector draws on both formal and informal sources of knowledge.
- Full Text:
- Date Issued: 2016
- Authors: Akpan, Iniobong Wilson
- Date: 2016
- Subjects: Economics Small business Business enterprises -- Finance
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/13608 , vital:39684
- Description: The centrality of financial literacy to business performance is increasingly becoming established in the literature, with several studies attributing business failures, especially in the small, medium and microenterprises (SMME) sector, to the failure of entrepreneurs to acquire needed levels of formal financial training. This emphasis represents a paradigm shift: small business failures were conventionally blamed on lack of access to capital, infrastructural deficits, lack of markets for SMME goods and services, regulatory constraints, and crime. In South Africa, and elsewhere in the developing world, this new orthodoxy has spurned new policy interventions aimed at improving the financial literacy levels in the SMME sector. Such is the drive to entrench formal literacy provisioning in the SMME sector that some microcredit providers now bundle financial management training into their SMME loan packages. However, there is a dearth of empirical studies that demonstrate, in any conclusive way, the effect of financial literacy training on small business growth and sustainability. The question, therefore, about whether formal financial literacy training actually leads to significant improvements in turnover levels and growth appears to be answered more as advocacy rather than on the basis of empirical evidence. It is against the backdrop of these arguments that the thesis adopted a quasi experimental design to study the business performance of a sample of SMME entrepreneurs who had received financial literacy training (the “treatment group”) at least two years before the study’s commencement and those who had had no financial literacy training at all (the “control group”). The objective was to determine whether any differences in business growth could be attributed to exposure to formal financial management training or the lack thereof. A survey was conducted with 40 respondents from each of the two groups (n = 80). The survey was triangulated with in-depth interviews of a randomly selected sample 10 of SMME operators from each of the two groups. The interviews sought to uncover the entrepreneurs’ narratives regarding the sources and salience of financial literacy in the sector. The study was conducted among SMME operators in Port Elizabeth, East London and Mthatha – the Eastern Cape’s major centres of commerce and industry. Data estimation was conducted using the Difference In Difference (DID) estimation model to determine whether financial literacy training has had any effect on the turnover of training recipients’ businesses (the treatment group) over that of non-training recipients (the control group). Also, the DID coefficient was used as a growth rate indicator to determine whether growth has occurred in training recipients’ businesses over non-training recipients businesses as a result of having received financial literacy training. The Propensity Score Matching (PSM) was used to estimate the average treatment effect (ATE) and the average treatment effect on the treated (ATET). Quantile DID correlations with covariates were also run to reveal the relationship between turnover (a growth variable) and the covariates as possible influencers of firm performance. The key findings of the study were that based on the specific financial variables tested, some basic financial management knowledge existed among members of the two groups of SMME operators, but there was very minimal application of the knowledge in the day-to-day running of the business. Operators utilise both formal financial literacy training and informal knowledge sources in the operation of their businesses. The study also found that in comparison, the difference in turnover between the treatment and control group at follow-up period was significant at a P value of 0.000. This gave rise to an overall DID P value of 0.000 in the estimation. However, the significance was in favour of control group businesses as the business of respondents in the “control group” (with no financial literacy training) performed better than that of respondents in the “treatment group” (who had received financial literacy training). Finally, the study found that financial literacy training had no effect on the growth of businesses in the short term as the growth rate of turnover of the treatment group was lower than that of the control group and the difference between the two rates was significant at a P value of 0.025. Also, compared to itself, the change in turnover levels of the treatment group was not significant in the pre- and post-training periods as revealed by the PSM ATET estimation result. Minimal changes in turnover of the treatment group was not significant at a P value of 0.124. The study concludes from these findings that while financial literacy remains a salient factor in business, scholarship about the real significance of financial literacy training on small business performance in the short term stands on a relatively shaky empirical foundation, especially when viewed against the background that many SMME entrepreneurs also rely on informal knowledge sources to make everyday business decisions. The study thus highlights the imperative of ensuring that knowledge-related interventions in the SMME sector draws on both formal and informal sources of knowledge.
- Full Text:
- Date Issued: 2016
Local content requirements and the impact on the South African renewable energy sector
- Authors: Ettmayr, Christopher
- Date: 2016
- Subjects: Renewable energy sources -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/6149 , vital:21043
- Description: Economies aim to expand over time, which always implies the need for increased energy availability in support of this growth. Governments can use their procurement of energy generation to further enhance the benefit to their economies via certain policy tools. One such tool is Local Content Requirements (LCR) where procurement of a good dictates that a certain value has to be sourced locally. The argument for this tool is that spend is localised and manufacturing, as well as job creation, can be stimulated due to industry establishing in the host economy. However, this practice is distortionary in effect and it does not create a fair playing field for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all. This study looked into the local content requirements of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and measured the impact of this policy on the renewable energy sector in general. It was found that, in order to implement a policy such as local content, the host economy had to have certain pre-existing conditions in order to avoid any negative welfare effects. Due to SA not holding all supportive pre-conditions for supporting local content policy, the impact and effect of LCRs has not been optimal and it has not been found to be a sustainable mechanism to continue using into the future indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. Therefore, the net welfare impact created for South Africa is diminished in exchange for the creation of jobs and manufacturing, but due to the unsustainability and potential manipulation of the system the country is not maximising the welfare potential from the REIPPPP as it should. It was found that SA renewable energy resources do exist and the logistics infrastructure is strong, providing good potential for investment into renewable energy projects. The demand created by the REIPPPP provided a good market, but there was uncertainty in the long term planning and stability. So, from a market perspective this could be further enhanced. Government had created a sufficient platform for investment, but areas of development such as clusters, R&D and skills training would create a better support environment for LCR policy and strict monitoring of this would also be required to prevent any manipulation. The use of LCRs increases project costs and risk, which is passed onto the energy consumers, but this could be reduced if local goods were more readily available at the right price and at the right quality and quantity. Focus on clusters would once again assist in this regard as independent power producers (IPPs) and engineering procurement and construction (EPC) entities would be able to source components and goods locally in a more cost-effective manner. As the LCRs currently stand in the REIPPPP, it would seem that South Africa is making renewable energy more expensive and although it is argued that this is done for the benefit of creating a new industry and jobs, these are not sustainable and so the current LCR policy will only create short term benefits.
- Full Text:
- Date Issued: 2016
- Authors: Ettmayr, Christopher
- Date: 2016
- Subjects: Renewable energy sources -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/6149 , vital:21043
- Description: Economies aim to expand over time, which always implies the need for increased energy availability in support of this growth. Governments can use their procurement of energy generation to further enhance the benefit to their economies via certain policy tools. One such tool is Local Content Requirements (LCR) where procurement of a good dictates that a certain value has to be sourced locally. The argument for this tool is that spend is localised and manufacturing, as well as job creation, can be stimulated due to industry establishing in the host economy. However, this practice is distortionary in effect and it does not create a fair playing field for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all. This study looked into the local content requirements of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and measured the impact of this policy on the renewable energy sector in general. It was found that, in order to implement a policy such as local content, the host economy had to have certain pre-existing conditions in order to avoid any negative welfare effects. Due to SA not holding all supportive pre-conditions for supporting local content policy, the impact and effect of LCRs has not been optimal and it has not been found to be a sustainable mechanism to continue using into the future indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. Therefore, the net welfare impact created for South Africa is diminished in exchange for the creation of jobs and manufacturing, but due to the unsustainability and potential manipulation of the system the country is not maximising the welfare potential from the REIPPPP as it should. It was found that SA renewable energy resources do exist and the logistics infrastructure is strong, providing good potential for investment into renewable energy projects. The demand created by the REIPPPP provided a good market, but there was uncertainty in the long term planning and stability. So, from a market perspective this could be further enhanced. Government had created a sufficient platform for investment, but areas of development such as clusters, R&D and skills training would create a better support environment for LCR policy and strict monitoring of this would also be required to prevent any manipulation. The use of LCRs increases project costs and risk, which is passed onto the energy consumers, but this could be reduced if local goods were more readily available at the right price and at the right quality and quantity. Focus on clusters would once again assist in this regard as independent power producers (IPPs) and engineering procurement and construction (EPC) entities would be able to source components and goods locally in a more cost-effective manner. As the LCRs currently stand in the REIPPPP, it would seem that South Africa is making renewable energy more expensive and although it is argued that this is done for the benefit of creating a new industry and jobs, these are not sustainable and so the current LCR policy will only create short term benefits.
- Full Text:
- Date Issued: 2016
Risk and portfolio management in microfinace institutional governance in Kampala metropolitan region
- Authors: Kyagulanyi, Ronald
- Date: 2016
- Subjects: Microfinance -- Uganda -- Kampala , Risk management -- Uganda -- Kampala , Portfolio management -- Uganda -- Kampala
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8532 , vital:26401
- Description: This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.
- Full Text:
- Date Issued: 2016
Risk and portfolio management in microfinace institutional governance in Kampala metropolitan region
- Authors: Kyagulanyi, Ronald
- Date: 2016
- Subjects: Microfinance -- Uganda -- Kampala , Risk management -- Uganda -- Kampala , Portfolio management -- Uganda -- Kampala
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8532 , vital:26401
- Description: This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.
- Full Text:
- Date Issued: 2016
The relationship between electricity supply and economic growth in South Africa
- Authors: Khobai, Hlalefang
- Date: 2016
- Subjects: Economic development -- South Africa , Electric power failures -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9251 , vital:26483
- Description: Since democratisation of South Africa in 1994, the economy of South Africa underwent significant structural changes. Among these structural changes was electrification for the poor rural areas. During the apartheid era, about two-thirds of the nation lacked access to electricity and hence, provision for electricity to everyone was considered a crucial part of the economic development, post 1994. Since then economic growth and the demand for electricity in South Africa have been increasing at an unprecedented rate. The electricity supply did not increase proportionally to the increase in the consumption of electricity. In responding to the high increase in the demand for electricity, the electricity utility planned to build new power stations and put back in use the ones which were mothballed. But unfortunately the plan for investment in these power stations was late and in 2008, the existing power stations could not manage to supply enough electricity. The demand for electricity was such that it nearly damaged the power generating circuit and the electricity supply utility had to resort to load shedding. The imbalance between electricity supply and demand led to industrial sectors losing on production and as a result led to a downturn in economic growth. It also led to an increase in electricity prices which had a negative effect on individual and private sectors’ purchasing power. It is against this background that this study is designed to investigate the long term relationship between economic growth and electricity supply. The additional variables such as electricity prices, trade openness, capital and employment were included as intermittent variables to form a multivariate framework. This study also assesses the Granger causality between these variables to determine which variable supersedes the other. Two models were applied in this study: The Auto-regressive Distributed Lag (ARDL) bounds approach and the Vector Error Correction Model (VECM) Granger-causality. The ARDL bounds technique was used to detect the long term relationship between economic growth, electricity supply, electricity prices, trade openness, capital and employment using annual data from 1985 to 2014. The ARDL technique was chosen over the conventional models such as Engle and Granger (1987) and Johansen (1988) for the research for the following reasons: Firstly, the ARDL technique uses a single reduced form of equation to examine the long term relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. Secondly, it is suitable to use for testing co-integration when a small sample data is used. Thirdly, it does not require the underlying variables to be integrated of similar order e.g. integrated of order zero I(0), integrated of order one I(1) or fractionally integrated, for it to be applicable. Lastly, it does not rely on the properties of unit root datasets and this makes it possible for the Granger-causality to be applied in testing the long term relationships between the variables. The VECM Granger-causality is used to examine the Granger-causality between the chosen variables. It was chosen for its ability to develop longer term forecasting when dealing with an unconstrained model. The unit root results confirmed that the variables were stationary at first difference using Augmented Dickey Fuller (ADF), Phillips and Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shit (KPSS). The ARDL bound approach outcomes revealed that economic growth, electricity supply, trade openness, electricity prices, employment and capital move together in the long term. There were three co-integrated equations under the export and trade models while under the import model there was one co-integrated equation. The results are such that electricity prices have a negative impact on economic growth. The results further evidenced that; electricity supply, trade openness, employment and capital have a positive impact on economic growth in the long term. The VECM Granger causality findings suggested a unidirectional causality flowing from electricity supply, trade, exports, electricity prices, employment and capital to economic growth in the long term. There was another unidirectional causality established flowing from economic growth, trade openness, electricity prices, employment and capital to electricity supply. A one-way causality flowing from economic growth, electricity supply, electricity prices, employment and capital to export was evidenced. Overall, the study’s results of bidirectional Granger-causality between electricity supply and economic growth have a number of implications for forecasters and policy makers. This feedback hypothesis implies that the high level of economic growth leads to a high level of electricity supply, which would stimulate economic growth. Hence, South Africa demonstrates a kind of electricity dependence in a manner that a sufficiently large supply of electricity seems to ensure high economic growth. Electricity supply is a vitally important factor for economic growth in South Africa. It is therefore necessary that South African policy makers formulate investor friendly policies that will encourage, promote and attract capital inflows to stimulate electricity supply. The South African government needs to primarily deregulate the electricity supply industry which is owned by Eskom (a monopoly), and allow more investors into this industry. The government should promote a change to other forms of energy sources such as renewable energy sources which will play an important role in restoring the balance between electricity supply and consumption. Moreover, it is recommended that the electricity regulator should take steps to curb the severe electricity price increases and to ensure prices affordable to the poor communities. The policy makers need to implement some investor friendly policies that will encourage and promote capital formation. Furthermore, the government should invest towards more job creating sectors such as (Small and Medium Enterprises) SMEs. Finally, the government should take into consideration the importance of trade openness to attract international investments into the economy. It is hoped that the findings of this study would prove beneficial to policy makers in South Africa and elsewhere in the world where power outages are experienced, and assist them in combating the problem.
- Full Text:
- Date Issued: 2016
- Authors: Khobai, Hlalefang
- Date: 2016
- Subjects: Economic development -- South Africa , Electric power failures -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9251 , vital:26483
- Description: Since democratisation of South Africa in 1994, the economy of South Africa underwent significant structural changes. Among these structural changes was electrification for the poor rural areas. During the apartheid era, about two-thirds of the nation lacked access to electricity and hence, provision for electricity to everyone was considered a crucial part of the economic development, post 1994. Since then economic growth and the demand for electricity in South Africa have been increasing at an unprecedented rate. The electricity supply did not increase proportionally to the increase in the consumption of electricity. In responding to the high increase in the demand for electricity, the electricity utility planned to build new power stations and put back in use the ones which were mothballed. But unfortunately the plan for investment in these power stations was late and in 2008, the existing power stations could not manage to supply enough electricity. The demand for electricity was such that it nearly damaged the power generating circuit and the electricity supply utility had to resort to load shedding. The imbalance between electricity supply and demand led to industrial sectors losing on production and as a result led to a downturn in economic growth. It also led to an increase in electricity prices which had a negative effect on individual and private sectors’ purchasing power. It is against this background that this study is designed to investigate the long term relationship between economic growth and electricity supply. The additional variables such as electricity prices, trade openness, capital and employment were included as intermittent variables to form a multivariate framework. This study also assesses the Granger causality between these variables to determine which variable supersedes the other. Two models were applied in this study: The Auto-regressive Distributed Lag (ARDL) bounds approach and the Vector Error Correction Model (VECM) Granger-causality. The ARDL bounds technique was used to detect the long term relationship between economic growth, electricity supply, electricity prices, trade openness, capital and employment using annual data from 1985 to 2014. The ARDL technique was chosen over the conventional models such as Engle and Granger (1987) and Johansen (1988) for the research for the following reasons: Firstly, the ARDL technique uses a single reduced form of equation to examine the long term relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. Secondly, it is suitable to use for testing co-integration when a small sample data is used. Thirdly, it does not require the underlying variables to be integrated of similar order e.g. integrated of order zero I(0), integrated of order one I(1) or fractionally integrated, for it to be applicable. Lastly, it does not rely on the properties of unit root datasets and this makes it possible for the Granger-causality to be applied in testing the long term relationships between the variables. The VECM Granger-causality is used to examine the Granger-causality between the chosen variables. It was chosen for its ability to develop longer term forecasting when dealing with an unconstrained model. The unit root results confirmed that the variables were stationary at first difference using Augmented Dickey Fuller (ADF), Phillips and Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shit (KPSS). The ARDL bound approach outcomes revealed that economic growth, electricity supply, trade openness, electricity prices, employment and capital move together in the long term. There were three co-integrated equations under the export and trade models while under the import model there was one co-integrated equation. The results are such that electricity prices have a negative impact on economic growth. The results further evidenced that; electricity supply, trade openness, employment and capital have a positive impact on economic growth in the long term. The VECM Granger causality findings suggested a unidirectional causality flowing from electricity supply, trade, exports, electricity prices, employment and capital to economic growth in the long term. There was another unidirectional causality established flowing from economic growth, trade openness, electricity prices, employment and capital to electricity supply. A one-way causality flowing from economic growth, electricity supply, electricity prices, employment and capital to export was evidenced. Overall, the study’s results of bidirectional Granger-causality between electricity supply and economic growth have a number of implications for forecasters and policy makers. This feedback hypothesis implies that the high level of economic growth leads to a high level of electricity supply, which would stimulate economic growth. Hence, South Africa demonstrates a kind of electricity dependence in a manner that a sufficiently large supply of electricity seems to ensure high economic growth. Electricity supply is a vitally important factor for economic growth in South Africa. It is therefore necessary that South African policy makers formulate investor friendly policies that will encourage, promote and attract capital inflows to stimulate electricity supply. The South African government needs to primarily deregulate the electricity supply industry which is owned by Eskom (a monopoly), and allow more investors into this industry. The government should promote a change to other forms of energy sources such as renewable energy sources which will play an important role in restoring the balance between electricity supply and consumption. Moreover, it is recommended that the electricity regulator should take steps to curb the severe electricity price increases and to ensure prices affordable to the poor communities. The policy makers need to implement some investor friendly policies that will encourage and promote capital formation. Furthermore, the government should invest towards more job creating sectors such as (Small and Medium Enterprises) SMEs. Finally, the government should take into consideration the importance of trade openness to attract international investments into the economy. It is hoped that the findings of this study would prove beneficial to policy makers in South Africa and elsewhere in the world where power outages are experienced, and assist them in combating the problem.
- Full Text:
- Date Issued: 2016
Environmental management systems in South African small and medium-sized businesses
- Authors: Lillah, Riyaadh
- Date: 2015
- Subjects: Business enterprises -- Environmental aspects -- South Africa , Environmental management -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/2909 , vital:20362
- Description: Businesses have been criticised for their contribution towards the ever-increasing rate of destruction of the natural environment. Although businesses have responded by adapting their management practices, production processes and products, they still face a number of challenges in reducing their environmental impact. One way in which businesses have responded to the environmental crisis is by implementing environmental management systems. Despite the importance of environmental management implementation, researchers have neglected to identify the antecedents that could lead to environmental management system implementation in South African small and medium-sized businesses. Indeed, much of the research on environmental management has concentrated on large business in Europe or the United States. The limited research that has been conducted on environmental management in small and medium-sized businesses has been descriptive in nature, and fails to produce results that are generalisable and that advance the understanding on this topic. Given this situation, the objective of this study was to develop and empirically test a theoretical model to explain the implementation of environmental management systems in small and medium-sized businesses. A quantitative survey methodology was adopted in this study to test the proposed theoretical model empirically. In total, 417 small and medium-sized businesses participated in the survey; 326 of these were not implementing an environmental management system, and 91 were implementing such a system. Descriptive statistics were used to summarise the sample data. The findings of this analysis suggest that the respondents had a favourable attitude toward environmental management systems; they were aware of environmental issues; they perceived themselves and their businesses as able to deal with the barriers to environmental management system implementation; they felt personally obligated to reduce their business‟ environmental impact; and they perceived actions aimed at reducing their businesses‟ environmental impact as socially desirable. To test the hypothesised relationships in the theoretical model, correlation and multiple regression analyses were used. The hypotheses dealing with the relationship between the environmental antecedents and the owner-manager‟s intention to implement an environmental management system, and the actual implementation of an environmental management system, were supported in this study. Thus, the environmental antecedents were found to be positively related to the small and medium-sized business owners‟ intention to implement an environmental management system; to their formal and informal implementation of an environmental management system; and to their practices related to waste management and legal compliance. Empirical evidence to support the hypothesised effect of resource constraints as a moderating variable was found in this study. In terms of environmental values, support was found for the moderating effect of egoistic, altruistic, and biospheric values. In terms of the biographical characteristics of the business owners, significant moderating effects were found for gender and age, but not for education. Gender influenced the relationships between the environmental antecedents, attitude towards an environmental management system and personal pro-environmental norms, and the intention to implement an environmental management system. Age moderated the relationship between subjective pro-environmental norms, waste management, and legal compliance. Given the empirical evidence provided in this study, it is recommended that greater awareness of environmental issues be fostered among small and medium-sized business owners as well as the individuals who influence their decision-making. There is also a need to reinforce the positive business outcomes of environmental management system implementation, as well as the personal and social obligations to protect the natural environment among small and medium-sized business owners.
- Full Text:
- Date Issued: 2015
- Authors: Lillah, Riyaadh
- Date: 2015
- Subjects: Business enterprises -- Environmental aspects -- South Africa , Environmental management -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/2909 , vital:20362
- Description: Businesses have been criticised for their contribution towards the ever-increasing rate of destruction of the natural environment. Although businesses have responded by adapting their management practices, production processes and products, they still face a number of challenges in reducing their environmental impact. One way in which businesses have responded to the environmental crisis is by implementing environmental management systems. Despite the importance of environmental management implementation, researchers have neglected to identify the antecedents that could lead to environmental management system implementation in South African small and medium-sized businesses. Indeed, much of the research on environmental management has concentrated on large business in Europe or the United States. The limited research that has been conducted on environmental management in small and medium-sized businesses has been descriptive in nature, and fails to produce results that are generalisable and that advance the understanding on this topic. Given this situation, the objective of this study was to develop and empirically test a theoretical model to explain the implementation of environmental management systems in small and medium-sized businesses. A quantitative survey methodology was adopted in this study to test the proposed theoretical model empirically. In total, 417 small and medium-sized businesses participated in the survey; 326 of these were not implementing an environmental management system, and 91 were implementing such a system. Descriptive statistics were used to summarise the sample data. The findings of this analysis suggest that the respondents had a favourable attitude toward environmental management systems; they were aware of environmental issues; they perceived themselves and their businesses as able to deal with the barriers to environmental management system implementation; they felt personally obligated to reduce their business‟ environmental impact; and they perceived actions aimed at reducing their businesses‟ environmental impact as socially desirable. To test the hypothesised relationships in the theoretical model, correlation and multiple regression analyses were used. The hypotheses dealing with the relationship between the environmental antecedents and the owner-manager‟s intention to implement an environmental management system, and the actual implementation of an environmental management system, were supported in this study. Thus, the environmental antecedents were found to be positively related to the small and medium-sized business owners‟ intention to implement an environmental management system; to their formal and informal implementation of an environmental management system; and to their practices related to waste management and legal compliance. Empirical evidence to support the hypothesised effect of resource constraints as a moderating variable was found in this study. In terms of environmental values, support was found for the moderating effect of egoistic, altruistic, and biospheric values. In terms of the biographical characteristics of the business owners, significant moderating effects were found for gender and age, but not for education. Gender influenced the relationships between the environmental antecedents, attitude towards an environmental management system and personal pro-environmental norms, and the intention to implement an environmental management system. Age moderated the relationship between subjective pro-environmental norms, waste management, and legal compliance. Given the empirical evidence provided in this study, it is recommended that greater awareness of environmental issues be fostered among small and medium-sized business owners as well as the individuals who influence their decision-making. There is also a need to reinforce the positive business outcomes of environmental management system implementation, as well as the personal and social obligations to protect the natural environment among small and medium-sized business owners.
- Full Text:
- Date Issued: 2015
Monetary policy transparency in Sub-Saharan Africa evidence and lessons
- Nhavira, John Davison Gondwe
- Authors: Nhavira, John Davison Gondwe
- Date: 2015
- Subjects: Monetary policy -- Africa, Sub-Saharan , Banks and banking, Central -- Africa, Sub-Saharan
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/5262 , vital:20827
- Description: This research deals with achieving and maintaining price stability in Sub-Saharan Africa (SSA) through the practice of monetary-policy transparency (MPT). On the one hand, MPT refers to a monetary strategy whereby the central bank is insulated from political influence and made accountable to society through disclosure of its policies, procedures, economic models, data and forecasts, operations and political practices (such as objectives, personnel independence, and the like). On the other hand, price stability refers to achieving and maintaining low and stable levels of inflation conducive for long-term planning and poverty alleviation. The primary objective of this research was to investigate MPT in SSA as it represents a powerful means whereby economic agents’ expectations may be coordinated and managed by the central bank to achieve its societal, objective function of low inflation. The empirical evidence shows that, first, a dependent central bank is more likely to slip into hyperinflation. Second, a SADC (2008) model central bank law is not independent enough to be used as a benchmark for any central bank or as a charter for a regional central bank. Third, the degree of central bank independence in SSA is relatively lower than that in industrialised economies. Fourth, the determinants of MPT in SSA are trade openness, and financial depth that are important factors influencing policy-makers to adopt monetary-policy transparency. Fifth, MPT is associated with a decline in the inflation rate. Sixth, MPT had no significant effect on economic output, whilst trade openness was positively associated with real GDP.
- Full Text:
- Date Issued: 2015
- Authors: Nhavira, John Davison Gondwe
- Date: 2015
- Subjects: Monetary policy -- Africa, Sub-Saharan , Banks and banking, Central -- Africa, Sub-Saharan
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/5262 , vital:20827
- Description: This research deals with achieving and maintaining price stability in Sub-Saharan Africa (SSA) through the practice of monetary-policy transparency (MPT). On the one hand, MPT refers to a monetary strategy whereby the central bank is insulated from political influence and made accountable to society through disclosure of its policies, procedures, economic models, data and forecasts, operations and political practices (such as objectives, personnel independence, and the like). On the other hand, price stability refers to achieving and maintaining low and stable levels of inflation conducive for long-term planning and poverty alleviation. The primary objective of this research was to investigate MPT in SSA as it represents a powerful means whereby economic agents’ expectations may be coordinated and managed by the central bank to achieve its societal, objective function of low inflation. The empirical evidence shows that, first, a dependent central bank is more likely to slip into hyperinflation. Second, a SADC (2008) model central bank law is not independent enough to be used as a benchmark for any central bank or as a charter for a regional central bank. Third, the degree of central bank independence in SSA is relatively lower than that in industrialised economies. Fourth, the determinants of MPT in SSA are trade openness, and financial depth that are important factors influencing policy-makers to adopt monetary-policy transparency. Fifth, MPT is associated with a decline in the inflation rate. Sixth, MPT had no significant effect on economic output, whilst trade openness was positively associated with real GDP.
- Full Text:
- Date Issued: 2015
Stability of the money demand function and monetary inflation in the East African community
- Authors: Nsabimana, Adelit
- Date: 2015
- Subjects: Monetary policy -- Africa, East , Inflation (Finance) -- Africa, East , Equilibrium (Economics)
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9163 , vital:26470
- Description: This research attempts to evaluate the stability of money demand functions and estimate monetary inflation models in the East African Community (EAC), using quarterly aggregate data that range from 2000Q1 to 2012Q3. We used Johansen co-integration analysis to estimate and analyse the stability of the M3 money demand model for each country member of the EAC. From this estimation, we derived a country-specific measure of money overhang. We compared its forecasting power of future inflation with that of money stock growth, and money stock available in the economy. Regarding country-specific money demand functions, with the exception of Uganda, we identified a reasonable and stable country-specific M3 money demand model. Also, for predicting future inflation, the estimation results showed that M3 money stock growth is more reliable in Burundi and in Kenya, while M3 money overhang is preferable in Rwanda and M3 money stock in Tanzania. As both country-specific and regional (EAC area) information on monetary quantity growth and its impact on price level is important to know in a monetary union, we considered the EAC area as a single market and attempted to estimate the aggregate (EAC area) demand functions for broad money M2 and M3 using Johansen co-integration analysis. The estimated long-run aggregate money demand models M2 and M3 appeared to be stable over the sample period. However, the aggregate M2 and M3 at the EAC level were proven to be weakly exogenous, which should discard them for consideration at the EAC level as the intermediate targets variables in order to achieve the overall objective of price stability in the EAC region. Instead, short-term interest rate should be given a prominent role in monetary policy framework at the EAC level.
- Full Text:
- Date Issued: 2015
- Authors: Nsabimana, Adelit
- Date: 2015
- Subjects: Monetary policy -- Africa, East , Inflation (Finance) -- Africa, East , Equilibrium (Economics)
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9163 , vital:26470
- Description: This research attempts to evaluate the stability of money demand functions and estimate monetary inflation models in the East African Community (EAC), using quarterly aggregate data that range from 2000Q1 to 2012Q3. We used Johansen co-integration analysis to estimate and analyse the stability of the M3 money demand model for each country member of the EAC. From this estimation, we derived a country-specific measure of money overhang. We compared its forecasting power of future inflation with that of money stock growth, and money stock available in the economy. Regarding country-specific money demand functions, with the exception of Uganda, we identified a reasonable and stable country-specific M3 money demand model. Also, for predicting future inflation, the estimation results showed that M3 money stock growth is more reliable in Burundi and in Kenya, while M3 money overhang is preferable in Rwanda and M3 money stock in Tanzania. As both country-specific and regional (EAC area) information on monetary quantity growth and its impact on price level is important to know in a monetary union, we considered the EAC area as a single market and attempted to estimate the aggregate (EAC area) demand functions for broad money M2 and M3 using Johansen co-integration analysis. The estimated long-run aggregate money demand models M2 and M3 appeared to be stable over the sample period. However, the aggregate M2 and M3 at the EAC level were proven to be weakly exogenous, which should discard them for consideration at the EAC level as the intermediate targets variables in order to achieve the overall objective of price stability in the EAC region. Instead, short-term interest rate should be given a prominent role in monetary policy framework at the EAC level.
- Full Text:
- Date Issued: 2015
Assessing the optimal size and composition of public debt in Zimbabwe
- Authors: Mupunga, Nebson
- Date: 2014
- Subjects: Debts, Public -- Management , Debts, Public -- Zimbabwe
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8977 , vital:26448
- Description: This study provides an analysis of public debt dynamics with a view to assess the optimal size and composition of public debt in Zimbabwe that is consistent with maintaining public debt at sustainable levels. The analysis was performed by applying public debt data for Zimbabwe over the period 1980 to 2012. Robustness checks were conducted, using data for selected low income countries in the sub-Saharan Africa. The study was motivated by the public debt management concerns caused by the 2008/09 global financial crisis and the European sovereign debt crisis as well as the external public debt overhang experienced by Zimbabwe since the year 2000. The findings of the study complement existing research findings and information on public debt management of the International Monetary Fund (IMF) and other researchers. The major contribution of this thesis is the determination of optimal public debt thresholds for Zimbabwe. The optimal public debt thresholds were estimated from a joint analysis of the macroeconomic variables that affect public debt and the reaction of fiscal policy to changes in debt. The classical linear regression and Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of debt accumulation and to assess the sensitivity of debt to macroeconomic shocks. The information from the drivers of public debt accumulation, together with the fiscal response mechanism was used to calibrate the long-run stable (optimal) public debt target. The optimal public debt threshold was also determined by assessing the link between public debt and economic growth. This assessment was carried out to establish the tipping point beyond which public debt adversely affects growth. Such a tipping point provides valuable information on the optimal size of public debt. The study also applied simulation approaches to determine the optimal composition of public debt. The results show that public debt dynamics in Zimbabwe largely comprised extensive stock flow adjustments emanating from extra budgetary expenditures to meet social and political related needs. The results of the assessment on the sensitivity of public debt to macroeconomic shocks show that Zimbabwe‟s public debt has been more vulnerable to economic growth, exchange rate and interest rate shocks. The significant influence of these variables highlights the role of automatic debt dynamics in public debt management. The results from the fiscal reaction function show that government has been responding positively to increases in public debt. This analysis also shows that government‟s policies are a-cyclical; as explained by the negative and insignificant response of the primary balance to the output gap. The dynamic stochastic simulation analysis suggests that Zimbabwe‟s public debt could follow an array of potential paths depending on the policy stance implemented by government. The simulated risk to public debt dynamics is larger, with an upper bound public debt to GDP ratio of 100 per cent and a lower bound public debt ratio of 32 per cent. The simulated lower bound provides a measure of a natural debt limit, which the government could adopt without fearing the risk of default. The results suggest that the main risks to public debt sustainability lie in growth shocks, whose volatility have been high for the period under study. The results from the analysis of growth and debt confirm the existence of an optimal growth maximising public debt ratio depicted by an inverted U-shaped relationship between public debt and economic growth. The optimal size of public debt was found to be at public debt levels of between 45-50 per cent of GDP. This means that higher public debt ratios have been associated with lower economic growth rates at debt levels above 50 per cent of GDP. The results are consistent with empirical findings for low income countries which suggest the existence of a debt laffer-curve. The results from an analysis of an optimal composition of public debt show a trade-off between a debt composition with more external concessional debt and one with more domestic debt. While a composition with more concessional borrowing was found to be desirable from a cost perspective, it proved to be less desirable from a risk perspective after taking into consideration stock flow adjustments due to changes in cross exchange rates. The findings of the study point to a need for the Zimbabwean government to swiftly respond to increases in public debt to control the swings in debt dynamics caused by macroeconomic shocks. The inverted U-shaped relationship between debt and growth suggests that government borrowing must be done in a way that simultaneously entrenches debt sustainability and ensures sustained economic growth rates in the medium to long-term. The study also highlights the need for counter-cyclical macroeconomic policies to avoid explosive debt dynamics emanating from frequent changes in the business cycle, and to minimise the interest/growth rate differential to ensure sustainable public debt dynamics. There is also a need for authorities to ensure a true balance between external and domestic borrowing to minimise the volatility in debt service costs caused by macroeconomic shocks. Generally, the findings from this study can assist in informing the policy agenda to address the imperatives of debt resolution, fiscal consolidation and economic growth acceleration.
- Full Text:
- Date Issued: 2014
- Authors: Mupunga, Nebson
- Date: 2014
- Subjects: Debts, Public -- Management , Debts, Public -- Zimbabwe
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8977 , vital:26448
- Description: This study provides an analysis of public debt dynamics with a view to assess the optimal size and composition of public debt in Zimbabwe that is consistent with maintaining public debt at sustainable levels. The analysis was performed by applying public debt data for Zimbabwe over the period 1980 to 2012. Robustness checks were conducted, using data for selected low income countries in the sub-Saharan Africa. The study was motivated by the public debt management concerns caused by the 2008/09 global financial crisis and the European sovereign debt crisis as well as the external public debt overhang experienced by Zimbabwe since the year 2000. The findings of the study complement existing research findings and information on public debt management of the International Monetary Fund (IMF) and other researchers. The major contribution of this thesis is the determination of optimal public debt thresholds for Zimbabwe. The optimal public debt thresholds were estimated from a joint analysis of the macroeconomic variables that affect public debt and the reaction of fiscal policy to changes in debt. The classical linear regression and Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of debt accumulation and to assess the sensitivity of debt to macroeconomic shocks. The information from the drivers of public debt accumulation, together with the fiscal response mechanism was used to calibrate the long-run stable (optimal) public debt target. The optimal public debt threshold was also determined by assessing the link between public debt and economic growth. This assessment was carried out to establish the tipping point beyond which public debt adversely affects growth. Such a tipping point provides valuable information on the optimal size of public debt. The study also applied simulation approaches to determine the optimal composition of public debt. The results show that public debt dynamics in Zimbabwe largely comprised extensive stock flow adjustments emanating from extra budgetary expenditures to meet social and political related needs. The results of the assessment on the sensitivity of public debt to macroeconomic shocks show that Zimbabwe‟s public debt has been more vulnerable to economic growth, exchange rate and interest rate shocks. The significant influence of these variables highlights the role of automatic debt dynamics in public debt management. The results from the fiscal reaction function show that government has been responding positively to increases in public debt. This analysis also shows that government‟s policies are a-cyclical; as explained by the negative and insignificant response of the primary balance to the output gap. The dynamic stochastic simulation analysis suggests that Zimbabwe‟s public debt could follow an array of potential paths depending on the policy stance implemented by government. The simulated risk to public debt dynamics is larger, with an upper bound public debt to GDP ratio of 100 per cent and a lower bound public debt ratio of 32 per cent. The simulated lower bound provides a measure of a natural debt limit, which the government could adopt without fearing the risk of default. The results suggest that the main risks to public debt sustainability lie in growth shocks, whose volatility have been high for the period under study. The results from the analysis of growth and debt confirm the existence of an optimal growth maximising public debt ratio depicted by an inverted U-shaped relationship between public debt and economic growth. The optimal size of public debt was found to be at public debt levels of between 45-50 per cent of GDP. This means that higher public debt ratios have been associated with lower economic growth rates at debt levels above 50 per cent of GDP. The results are consistent with empirical findings for low income countries which suggest the existence of a debt laffer-curve. The results from an analysis of an optimal composition of public debt show a trade-off between a debt composition with more external concessional debt and one with more domestic debt. While a composition with more concessional borrowing was found to be desirable from a cost perspective, it proved to be less desirable from a risk perspective after taking into consideration stock flow adjustments due to changes in cross exchange rates. The findings of the study point to a need for the Zimbabwean government to swiftly respond to increases in public debt to control the swings in debt dynamics caused by macroeconomic shocks. The inverted U-shaped relationship between debt and growth suggests that government borrowing must be done in a way that simultaneously entrenches debt sustainability and ensures sustained economic growth rates in the medium to long-term. The study also highlights the need for counter-cyclical macroeconomic policies to avoid explosive debt dynamics emanating from frequent changes in the business cycle, and to minimise the interest/growth rate differential to ensure sustainable public debt dynamics. There is also a need for authorities to ensure a true balance between external and domestic borrowing to minimise the volatility in debt service costs caused by macroeconomic shocks. Generally, the findings from this study can assist in informing the policy agenda to address the imperatives of debt resolution, fiscal consolidation and economic growth acceleration.
- Full Text:
- Date Issued: 2014
The impact of economic freedom on economic growth in the SADC
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2014
- Subjects: Free enterprise -- Africa, Southern , Economic development -- Africa, Southern , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9030 , http://hdl.handle.net/10948/d1020786
- Description: The role of institutions – economic freedom – is a critical determinant of economic growth, yet the global distribution of economic freedom is skewed. Economic freedom focuses on personal choice, the ability to make voluntary transactions, the freedom to compete and the security of property rights. The SADC is attempting to alleviate poverty and achieve sustainable development and economic growth. This thesis illustrates that economic freedom, in aggregate, and on an individual component basis, drives economic growth. The annual data for the 12 SADC counties from 2000 to 2009 are used to construct a panel data model to conduct the empirical analyses. Cross-sectional effects, as well as time (period) effects, are valid; and thus, a two-way error-component model is estimated. The Hausman test showed the regressors to be endogenous and correlated with the error term. The Pesaran CD test, suitable for dynamic panels, determined that cross-sections are interdependent; and the cross-correlation coefficient indicated a relatively weak, yet substantial, correlation. The LSDV two-way error-component model is re-estimated using the Driscoll and Kraay standard errors and time-demeaned data to correct for cross-sectional dependence. Given the endogeneity between the idiosyncratic disturbance term and the regressors, the presence of heteroskedasticity and serial correlation, as well as the interdependence amongst the cross-sections, the econometric model is then estimated using the two-step system general method of moments with forward orthogonal deviations – instead of differencing. The results meet all the post-estimation diagnostic requirements: the Arellano and Bond test for second-order serial correlation fails to reject the null hypothesis of no autocorrelation; theSargan test for over-identification fails to reject the null hypothesis that the over-identification restrictions are valid, and the difference-in-Hansen test fails to reject the null hypothesis that the instrument subsets are strictly exogenous. The empirical results confirm the a priori expectations. Economic freedom is a positive and significant driver of economic growth. Investment and economic openness are positively related to growth, whereas government debt decreases growth. Government consumption is an insignificant driver of a country’s growth. The Granger causality test confirmed the direction of causality; economic freedom precedes economic growth; and it is possible for the SADC to improve their growth rates by becoming economically freer. The coefficient of adjustment derived from the error-correction model indicates that the dynamic system takes approximately two years to adjust to the long-run structural level. The Koyck Transformation indicates that the relationship between economic freedom and growth is intertemporal, requiring a lag structure. An impulse-response function shows that a permanent, positive ‘shock’ to economic freedom results in an increase in economic growth, although the extent differs for each country, as well as for the different freedom components. The five individual economic freedom components are all highly significant and positive drivers of growth; however, the magnitude of the elasticity parameters varies. The causality amongst the components indicates that bidirectional causality is present. Therefore, improving economic freedom in one area improves economic freedom in another, creating a multiplier effect.
- Full Text:
- Date Issued: 2014
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2014
- Subjects: Free enterprise -- Africa, Southern , Economic development -- Africa, Southern , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9030 , http://hdl.handle.net/10948/d1020786
- Description: The role of institutions – economic freedom – is a critical determinant of economic growth, yet the global distribution of economic freedom is skewed. Economic freedom focuses on personal choice, the ability to make voluntary transactions, the freedom to compete and the security of property rights. The SADC is attempting to alleviate poverty and achieve sustainable development and economic growth. This thesis illustrates that economic freedom, in aggregate, and on an individual component basis, drives economic growth. The annual data for the 12 SADC counties from 2000 to 2009 are used to construct a panel data model to conduct the empirical analyses. Cross-sectional effects, as well as time (period) effects, are valid; and thus, a two-way error-component model is estimated. The Hausman test showed the regressors to be endogenous and correlated with the error term. The Pesaran CD test, suitable for dynamic panels, determined that cross-sections are interdependent; and the cross-correlation coefficient indicated a relatively weak, yet substantial, correlation. The LSDV two-way error-component model is re-estimated using the Driscoll and Kraay standard errors and time-demeaned data to correct for cross-sectional dependence. Given the endogeneity between the idiosyncratic disturbance term and the regressors, the presence of heteroskedasticity and serial correlation, as well as the interdependence amongst the cross-sections, the econometric model is then estimated using the two-step system general method of moments with forward orthogonal deviations – instead of differencing. The results meet all the post-estimation diagnostic requirements: the Arellano and Bond test for second-order serial correlation fails to reject the null hypothesis of no autocorrelation; theSargan test for over-identification fails to reject the null hypothesis that the over-identification restrictions are valid, and the difference-in-Hansen test fails to reject the null hypothesis that the instrument subsets are strictly exogenous. The empirical results confirm the a priori expectations. Economic freedom is a positive and significant driver of economic growth. Investment and economic openness are positively related to growth, whereas government debt decreases growth. Government consumption is an insignificant driver of a country’s growth. The Granger causality test confirmed the direction of causality; economic freedom precedes economic growth; and it is possible for the SADC to improve their growth rates by becoming economically freer. The coefficient of adjustment derived from the error-correction model indicates that the dynamic system takes approximately two years to adjust to the long-run structural level. The Koyck Transformation indicates that the relationship between economic freedom and growth is intertemporal, requiring a lag structure. An impulse-response function shows that a permanent, positive ‘shock’ to economic freedom results in an increase in economic growth, although the extent differs for each country, as well as for the different freedom components. The five individual economic freedom components are all highly significant and positive drivers of growth; however, the magnitude of the elasticity parameters varies. The causality amongst the components indicates that bidirectional causality is present. Therefore, improving economic freedom in one area improves economic freedom in another, creating a multiplier effect.
- Full Text:
- Date Issued: 2014
The application of property value models to assess government housing policy : a Nelson Mandela Bay Case Study
- Authors: Sale, Michael Charles
- Date: 2013
- Subjects: Real property -- Valuation -- South Africa -- Port Elizabeth , Housing policy -- South Africa -- Port Elizabeth , Planned communities -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9023 , http://hdl.handle.net/10948/d1020007
- Description: Two developments that may impact house prices have dominated the residential property landscape in South Africa in recent years, namely government’s planned social housing developments and residential property value assessments carried out by local municipalities across South Africa for property tax purposes. Social housing developments are often plagued by “local opposition”, who argue that subsidised housing units may have a negative effect on adjacent non-subsidised residential housing. Negative preconceptions of social housing form the basis of this argument, which is commonly referred to as the “not-in-my-backyard” (NIMBY) syndrome. International studies conducted have, however, produced mixed results with some concluding that social housing developments lead to a reduction in nearby property prices, whilst others conclude that they lead to an improvement in surrounding property values. Currently, the state of the South African economy and demographics are limiting previously disadvantaged, poor peoples’ access to affordable and safe housing, and for this reason the basis of the NIMBY rationale deserves closer attention. In order to test the validity of the NIMBY rationale, this study examines, by means of the hedonic price method, the effect of an existing housing establishment catering for low-income earners (the Walmer/Gqebera Township) on adjacent property values in the suburb of Walmer, Port Elizabeth, Nelson Mandela Bay in the Eastern Cape. The study concludes that the low-cost housing development exerts a negative impact on the property values of nearby houses - the average owner of a non-subsidised residential property in Walmer would be willing to pay between R38 033 and R46 898 to be situated 200 metres further away from the Walmer Township. This conclusion is subject to three qualifications. The first is that the Walmer Township is not a recognised social housing development but merely a proxy for one. The second qualification is that a relatively small data set was used in this study and only one social housing development was considered. The third qualification is that the study period is from 1995 to 2009, which necessitated the adjustment of market prices to constant 2009 rands. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used. It was not possible to disaggregate the indices further to obtain a Walmer-specific index. It is possible that an imperfect correlation exists between the Walmer property trend and the metropolitan (Port Elizabeth and Uitenhage) trend used in this study. Based on the results of this doctoral investigation it is recommended that a monthly rebate on property rates of between R269.40 and R332.19 be implemented for affected Walmer residents. This amount could be sufficient to mitigate the capital loss associated with proximity to the Walmer Township. In terms of the management of social housing projects, it is strongly recommended that the following occur in order to alleviate the NIMBY syndrome: existing dwellings should be renovated, tenants should be monitored, dwellings should be appropriately designed and maintained, the composition of the host neighbourhood should be assessed and the image of social housing should be improved. With regard to the renovation of dwellings, social housing site preference should be given to existing structures in need of renovation, as positive externalities are associated with the renovation of such properties. The monitoring of tenants needs to take place in order to ensure that the financial and behavioural obligations of the tenants are met, and that informal “shack dwellings” do not materialise on site, and finally, that tenant default rates remain low. The appropriate management of these projects will also aid in combating the perception that social housing developments lead to private residential property devaluation. In respect of residential property value assessments, many homeowners have recently argued that there is very little equivalence between the municipality’s valuations and true market values. This study uses, inter alia, the hedonic price model to investigate the accuracy of the Nelson Mandela Bay Municipality’s 2007/2008 valuation roll. The investigation was limited to the valuation roll applicable to the Walmer neighbourhood. The study finds that there is, on average, a 13.89 percent difference between market prices and the 2007/2008 municipal assessed values. In addition, this study finds that an attributebased hedonic price model produces property price predictions that are more in line with true market values. This finding is subject to two qualifications. The first qualification is that only the Walmer neighbourhood’s assessed values were considered, thus limiting the findings. The second qualification is that a relatively small data set was used.
- Full Text:
- Date Issued: 2013
- Authors: Sale, Michael Charles
- Date: 2013
- Subjects: Real property -- Valuation -- South Africa -- Port Elizabeth , Housing policy -- South Africa -- Port Elizabeth , Planned communities -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9023 , http://hdl.handle.net/10948/d1020007
- Description: Two developments that may impact house prices have dominated the residential property landscape in South Africa in recent years, namely government’s planned social housing developments and residential property value assessments carried out by local municipalities across South Africa for property tax purposes. Social housing developments are often plagued by “local opposition”, who argue that subsidised housing units may have a negative effect on adjacent non-subsidised residential housing. Negative preconceptions of social housing form the basis of this argument, which is commonly referred to as the “not-in-my-backyard” (NIMBY) syndrome. International studies conducted have, however, produced mixed results with some concluding that social housing developments lead to a reduction in nearby property prices, whilst others conclude that they lead to an improvement in surrounding property values. Currently, the state of the South African economy and demographics are limiting previously disadvantaged, poor peoples’ access to affordable and safe housing, and for this reason the basis of the NIMBY rationale deserves closer attention. In order to test the validity of the NIMBY rationale, this study examines, by means of the hedonic price method, the effect of an existing housing establishment catering for low-income earners (the Walmer/Gqebera Township) on adjacent property values in the suburb of Walmer, Port Elizabeth, Nelson Mandela Bay in the Eastern Cape. The study concludes that the low-cost housing development exerts a negative impact on the property values of nearby houses - the average owner of a non-subsidised residential property in Walmer would be willing to pay between R38 033 and R46 898 to be situated 200 metres further away from the Walmer Township. This conclusion is subject to three qualifications. The first is that the Walmer Township is not a recognised social housing development but merely a proxy for one. The second qualification is that a relatively small data set was used in this study and only one social housing development was considered. The third qualification is that the study period is from 1995 to 2009, which necessitated the adjustment of market prices to constant 2009 rands. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used. It was not possible to disaggregate the indices further to obtain a Walmer-specific index. It is possible that an imperfect correlation exists between the Walmer property trend and the metropolitan (Port Elizabeth and Uitenhage) trend used in this study. Based on the results of this doctoral investigation it is recommended that a monthly rebate on property rates of between R269.40 and R332.19 be implemented for affected Walmer residents. This amount could be sufficient to mitigate the capital loss associated with proximity to the Walmer Township. In terms of the management of social housing projects, it is strongly recommended that the following occur in order to alleviate the NIMBY syndrome: existing dwellings should be renovated, tenants should be monitored, dwellings should be appropriately designed and maintained, the composition of the host neighbourhood should be assessed and the image of social housing should be improved. With regard to the renovation of dwellings, social housing site preference should be given to existing structures in need of renovation, as positive externalities are associated with the renovation of such properties. The monitoring of tenants needs to take place in order to ensure that the financial and behavioural obligations of the tenants are met, and that informal “shack dwellings” do not materialise on site, and finally, that tenant default rates remain low. The appropriate management of these projects will also aid in combating the perception that social housing developments lead to private residential property devaluation. In respect of residential property value assessments, many homeowners have recently argued that there is very little equivalence between the municipality’s valuations and true market values. This study uses, inter alia, the hedonic price model to investigate the accuracy of the Nelson Mandela Bay Municipality’s 2007/2008 valuation roll. The investigation was limited to the valuation roll applicable to the Walmer neighbourhood. The study finds that there is, on average, a 13.89 percent difference between market prices and the 2007/2008 municipal assessed values. In addition, this study finds that an attributebased hedonic price model produces property price predictions that are more in line with true market values. This finding is subject to two qualifications. The first qualification is that only the Walmer neighbourhood’s assessed values were considered, thus limiting the findings. The second qualification is that a relatively small data set was used.
- Full Text:
- Date Issued: 2013
An estimate of the cost of electricity outages in Zimbabwe
- Authors: Kaseke, Nyasa
- Date: 2012
- Subjects: Electric power failures -- Zimbabwe , Electric utilities
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:8997 , http://hdl.handle.net/10948/d1011119 , Electric power failures -- Zimbabwe , Electric utilities
- Description: This thesis estimates the cost of electricity outages in Zimbabwe for the year 2009. Much reference is made to government, the power utility - Zimbabwe Electricity Supply Authority (ZESA) and other countries in the Southern African Power Pool (SAPP), also experiencing electricity outages. An electricity outage is a complete loss of power supply to an area. An outage may result from planned or unplanned load shedding or faults. Load shedding is accelerated by power supply shortages. The shortages are experienced during peak demand times. In 2009, Zimbabwe’s peak demand was about 1574MW. ZESA had the capacity to supply 1080MW and imported 100MW (guaranteed from Mozambique), leaving a shortfall of 394MW. This shortfall is worsened by transmission losses (about 108MW) and consumption by ZESA properties (about 200MW) bringng down the supply to customers of about 700MW. The supply shortage is the result of a lack of investment in the power sector by government for expanded generation capacity, incorrect pricing, droughts, internal conflicts, skills flight, government energy sector regulation, vandalism of equipment and under supply of coal to thermal power stations. Consumers in all sectors are experiencing power outage incidences of different duration. The severity of the inconvenience depends on the load shedding time table, preferences of the power utility and arrangements that can be made with the utility. Power outages negatively affect (and result in cost to) the productive sectors (industry, mining and farming) and households. The main objective of the thesis is to estimate the cost of power outages to the sectors. Sub-objectives of the study include: to identify the main features of power crisis in Zimbabwe and government response to it with a regional power generated setting; to formulate a model that clearly identifies the different cost components of power outages in Zimbabwe; to identify appropriate methods by which to estimate these cost components; to estimate the cost of power outages to the productive sectors (mining, agriculture and industrial) and households of Zimbabwe; to critically analyse the credibility of these estimates, and to consider the saving of the costs of outages achieved through increased investment in generating capacity in Zimbabwe. ZESA undertook reforms (institutional and tariff) in order to improve management efficiencies and supply. It was divided into five entities resulting in management and financial improvement, but its reform of tariffs has been stiffled by subsidies and price regulations. ZESA adopted the cost plus rate of return pricing strategy in 2004 but regulation kept the tariff below cost. The regulation is pro-poor in aim but it encourages wasteful consumption. Similar supply shortages are affecting the whole SAPP group. The power pool load shed 758MW in 2009. In Zimbabwe alone load shedding was 315MW. In an attempt to solve the problem, member utilities engage in bilateral contacts and short-term trading through Short Term Energy Markets (STEM). A number of Southern African countries have to load shed - the average frequency being three to five (3-5) times per week for the region. A number of studies have been carried out by different scholars attempting to assess the impact and cost of outages. The general conclusion is that power outages cause significant costs to consumers, both direct and indirect. From a global perspective, the increase in the quality of electricity supplied has fallen behind the increase in quantity demanded, causing an increase of incidence in power outages. An analysis of Sub-Saharan Africa shows that the causes of supply shortages are natural (drought), oil price shocks, conflict and the lack of investment in generation capacity. This generates two outage cost estimates – a direct cost (welfare loss) and indirect cost (backup cost). The sum of these estimates is the total outage cost. The direct cost estimate is based on direct loss incurred during the power outages - lost production, lost materials, and lost time or leisure. In order to derive an estimated direct cost, it is necessary to obtain an accurate respondent self-assessment, which, in turn depends on the keeping of good records of hours of outages and losses incurred during outage times. The estimated indirect cost (backup cost) is derived from the cost of investment in backup sources and running of these sources as a mitigating measure during a power outage. The expected gain from self-generated kWh is assumed to be equal to the expected loss from the marginal kWh electricity not supplied by the utility (the outage). The annualised capital cost of backup source plus the variable cost of generating electricity by the backup source are another element of the cost of power outages. The prices of backup sources were obtained from the two leading retailers, Tendo Power and Ellis Electronics. To the extent that the captive generation includes investment in emergency or optional plant (as part of normal production infrastructure), it may overestimate cost.
- Full Text:
- Date Issued: 2012
- Authors: Kaseke, Nyasa
- Date: 2012
- Subjects: Electric power failures -- Zimbabwe , Electric utilities
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:8997 , http://hdl.handle.net/10948/d1011119 , Electric power failures -- Zimbabwe , Electric utilities
- Description: This thesis estimates the cost of electricity outages in Zimbabwe for the year 2009. Much reference is made to government, the power utility - Zimbabwe Electricity Supply Authority (ZESA) and other countries in the Southern African Power Pool (SAPP), also experiencing electricity outages. An electricity outage is a complete loss of power supply to an area. An outage may result from planned or unplanned load shedding or faults. Load shedding is accelerated by power supply shortages. The shortages are experienced during peak demand times. In 2009, Zimbabwe’s peak demand was about 1574MW. ZESA had the capacity to supply 1080MW and imported 100MW (guaranteed from Mozambique), leaving a shortfall of 394MW. This shortfall is worsened by transmission losses (about 108MW) and consumption by ZESA properties (about 200MW) bringng down the supply to customers of about 700MW. The supply shortage is the result of a lack of investment in the power sector by government for expanded generation capacity, incorrect pricing, droughts, internal conflicts, skills flight, government energy sector regulation, vandalism of equipment and under supply of coal to thermal power stations. Consumers in all sectors are experiencing power outage incidences of different duration. The severity of the inconvenience depends on the load shedding time table, preferences of the power utility and arrangements that can be made with the utility. Power outages negatively affect (and result in cost to) the productive sectors (industry, mining and farming) and households. The main objective of the thesis is to estimate the cost of power outages to the sectors. Sub-objectives of the study include: to identify the main features of power crisis in Zimbabwe and government response to it with a regional power generated setting; to formulate a model that clearly identifies the different cost components of power outages in Zimbabwe; to identify appropriate methods by which to estimate these cost components; to estimate the cost of power outages to the productive sectors (mining, agriculture and industrial) and households of Zimbabwe; to critically analyse the credibility of these estimates, and to consider the saving of the costs of outages achieved through increased investment in generating capacity in Zimbabwe. ZESA undertook reforms (institutional and tariff) in order to improve management efficiencies and supply. It was divided into five entities resulting in management and financial improvement, but its reform of tariffs has been stiffled by subsidies and price regulations. ZESA adopted the cost plus rate of return pricing strategy in 2004 but regulation kept the tariff below cost. The regulation is pro-poor in aim but it encourages wasteful consumption. Similar supply shortages are affecting the whole SAPP group. The power pool load shed 758MW in 2009. In Zimbabwe alone load shedding was 315MW. In an attempt to solve the problem, member utilities engage in bilateral contacts and short-term trading through Short Term Energy Markets (STEM). A number of Southern African countries have to load shed - the average frequency being three to five (3-5) times per week for the region. A number of studies have been carried out by different scholars attempting to assess the impact and cost of outages. The general conclusion is that power outages cause significant costs to consumers, both direct and indirect. From a global perspective, the increase in the quality of electricity supplied has fallen behind the increase in quantity demanded, causing an increase of incidence in power outages. An analysis of Sub-Saharan Africa shows that the causes of supply shortages are natural (drought), oil price shocks, conflict and the lack of investment in generation capacity. This generates two outage cost estimates – a direct cost (welfare loss) and indirect cost (backup cost). The sum of these estimates is the total outage cost. The direct cost estimate is based on direct loss incurred during the power outages - lost production, lost materials, and lost time or leisure. In order to derive an estimated direct cost, it is necessary to obtain an accurate respondent self-assessment, which, in turn depends on the keeping of good records of hours of outages and losses incurred during outage times. The estimated indirect cost (backup cost) is derived from the cost of investment in backup sources and running of these sources as a mitigating measure during a power outage. The expected gain from self-generated kWh is assumed to be equal to the expected loss from the marginal kWh electricity not supplied by the utility (the outage). The annualised capital cost of backup source plus the variable cost of generating electricity by the backup source are another element of the cost of power outages. The prices of backup sources were obtained from the two leading retailers, Tendo Power and Ellis Electronics. To the extent that the captive generation includes investment in emergency or optional plant (as part of normal production infrastructure), it may overestimate cost.
- Full Text:
- Date Issued: 2012
Relationships between psychological capital, work engagement and organisational citizenship behaviour in South African automative dealerships
- Authors: Harris, Chantel
- Date: 2012
- Subjects: Work -- Psychological aspects , Employee motivation , Job satisfaction -- South Africa , Organizational behavior , Automobile industry and trade
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9395 , http://hdl.handle.net/10948/d1008059 , Work -- Psychological aspects , Employee motivation , Job satisfaction -- South Africa , Organizational behavior , Automobile industry and trade
- Description: Psychological capital (PsyCap), work engagement (WE) and organisational citizenship behaviour (OCB) are all positive constructs which research has indicated will have a positive impact on the bottom line. In light of Positive Organisational Behaviour, this has become increasingly important, particularly in the service industry where good service leads to satisfied customers and ultimately repeat purchases. This research took on the form of a cross- sectional design, using a composite questionnaire to measure PsyCap, WE and OCB. This was a self-report electronic questionnaire which was distributed via email to customer service representatives (N=276) from a national automotive company with dealerships in Gauteng and the Western Cape. The measurement models were revalidated for the South African sample of customer service representatives through conducting Exploratory Factor Analysis. PsyCap remained a four-factor structure, however lost items in the elimination process. Both the UWES and OCB instruments lost items and became two-factor structures. This makes the notion that these instruments are portable to the South African situation questionable. To confirm these structures, item parcelling was utilised and Confirmatory Factor Analysis was conducted. The results indicated that the new measurement models were better suited to the South African sample. Demographic groups had significant differences in the means for PsyCap, WE and OCB. Further to this, relationships between the constructs were tested through multiple regression and structural equation modeling. The most significant relationship was found between PsyCap and work engagement. Finally, PsyCap (barring optimism) and WE were found to load onto a single factor when testing for factorial independence, while OCB came out as a separate factor.
- Full Text:
- Date Issued: 2012
- Authors: Harris, Chantel
- Date: 2012
- Subjects: Work -- Psychological aspects , Employee motivation , Job satisfaction -- South Africa , Organizational behavior , Automobile industry and trade
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9395 , http://hdl.handle.net/10948/d1008059 , Work -- Psychological aspects , Employee motivation , Job satisfaction -- South Africa , Organizational behavior , Automobile industry and trade
- Description: Psychological capital (PsyCap), work engagement (WE) and organisational citizenship behaviour (OCB) are all positive constructs which research has indicated will have a positive impact on the bottom line. In light of Positive Organisational Behaviour, this has become increasingly important, particularly in the service industry where good service leads to satisfied customers and ultimately repeat purchases. This research took on the form of a cross- sectional design, using a composite questionnaire to measure PsyCap, WE and OCB. This was a self-report electronic questionnaire which was distributed via email to customer service representatives (N=276) from a national automotive company with dealerships in Gauteng and the Western Cape. The measurement models were revalidated for the South African sample of customer service representatives through conducting Exploratory Factor Analysis. PsyCap remained a four-factor structure, however lost items in the elimination process. Both the UWES and OCB instruments lost items and became two-factor structures. This makes the notion that these instruments are portable to the South African situation questionable. To confirm these structures, item parcelling was utilised and Confirmatory Factor Analysis was conducted. The results indicated that the new measurement models were better suited to the South African sample. Demographic groups had significant differences in the means for PsyCap, WE and OCB. Further to this, relationships between the constructs were tested through multiple regression and structural equation modeling. The most significant relationship was found between PsyCap and work engagement. Finally, PsyCap (barring optimism) and WE were found to load onto a single factor when testing for factorial independence, while OCB came out as a separate factor.
- Full Text:
- Date Issued: 2012
The relationship between authentic leadership, psychological capital, psychological climate, team commitment and the intention to quit in a South African manufacturing organisation
- Authors: Munyaka, Sharon Audley
- Date: 2012
- Subjects: Leadership -- South Africa , Organizational commitment -- South Africa , Work environment -- South Africa , Employees -- Resignation -- South Africa , Tire industry workers -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9418 , http://hdl.handle.net/10948/d1021088
- Description: Grounded in the positive psychology paradigm the recently recognised core construct of psychological capital was focussed in a South African study. A non-experimental, correlational study (n=204) examined the relationship between authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. The present study was exploratory in nature and the pattern of relationships being investigated had not been previously tested in a South African context. A self-administered composite questionnaire consisting of five psychological scales were distributed to employees in the junior to senior management level at a global tyre manufacturing organisation based in Port Elizabeth, South Africa. The five scales were the Authentic Leadership Questionnaire by Walumbwa, Psychological Capital Questionnaire by Luthans, Psychological Climate by Koys and DeCotiis, Team Commitment by Bennett and the Intention to Quit Scale by Cohen. All the measures applied on the South African sample were developed outside South Africa and model equivalence had to be established. The content and structure of the measures were investigated through confirmatory factor analysis and exploratory factor analysis. With the exception of the Cohen scale of intention to quit, all other measures changed their factorial structures to suit the present data. The propositions in the study were tested through descriptive statistics, t-tests, ANOVA, post hoc tests, Cohen’s d, Pearson product-moment correlation and multiple regressions. Structural equation models were built to test the relationships between the scales and sub scales of authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. Results of the analyses carried out, show significantly strong relationships between the variables. Of note is the marked relationship between authentic leadership and psychological climate. Most of the propositions were accepted in light of the relationships that emerged. The proposition indicating structural equation models was rejected because none of the models built in the study successfully produced an adequate fit on the data. Contributions of the study were in terms of the portability of the measurement instruments applied in the study as well as the relationships that emerged. Re-validation of the measures is required to enable clarity on how the variables in the study are interpreted across cultural contexts. Directions for future research include extending the study to other samples and other cultures. Measuring social desirability of the instruments could possibly provide clarity on how the different samples respond to the measures. Studies that compare the reading ability as well as the ability to comprehend the items in the measures would provide valuable information.
- Full Text:
- Date Issued: 2012
- Authors: Munyaka, Sharon Audley
- Date: 2012
- Subjects: Leadership -- South Africa , Organizational commitment -- South Africa , Work environment -- South Africa , Employees -- Resignation -- South Africa , Tire industry workers -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9418 , http://hdl.handle.net/10948/d1021088
- Description: Grounded in the positive psychology paradigm the recently recognised core construct of psychological capital was focussed in a South African study. A non-experimental, correlational study (n=204) examined the relationship between authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. The present study was exploratory in nature and the pattern of relationships being investigated had not been previously tested in a South African context. A self-administered composite questionnaire consisting of five psychological scales were distributed to employees in the junior to senior management level at a global tyre manufacturing organisation based in Port Elizabeth, South Africa. The five scales were the Authentic Leadership Questionnaire by Walumbwa, Psychological Capital Questionnaire by Luthans, Psychological Climate by Koys and DeCotiis, Team Commitment by Bennett and the Intention to Quit Scale by Cohen. All the measures applied on the South African sample were developed outside South Africa and model equivalence had to be established. The content and structure of the measures were investigated through confirmatory factor analysis and exploratory factor analysis. With the exception of the Cohen scale of intention to quit, all other measures changed their factorial structures to suit the present data. The propositions in the study were tested through descriptive statistics, t-tests, ANOVA, post hoc tests, Cohen’s d, Pearson product-moment correlation and multiple regressions. Structural equation models were built to test the relationships between the scales and sub scales of authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. Results of the analyses carried out, show significantly strong relationships between the variables. Of note is the marked relationship between authentic leadership and psychological climate. Most of the propositions were accepted in light of the relationships that emerged. The proposition indicating structural equation models was rejected because none of the models built in the study successfully produced an adequate fit on the data. Contributions of the study were in terms of the portability of the measurement instruments applied in the study as well as the relationships that emerged. Re-validation of the measures is required to enable clarity on how the variables in the study are interpreted across cultural contexts. Directions for future research include extending the study to other samples and other cultures. Measuring social desirability of the instruments could possibly provide clarity on how the different samples respond to the measures. Studies that compare the reading ability as well as the ability to comprehend the items in the measures would provide valuable information.
- Full Text:
- Date Issued: 2012
Travelling shoppers' perceptions on the comprehensive servicescape within the South African retail environment
- Authors: Zinhumwe, Cephas
- Date: 2012
- Subjects: Retail trade -- Customer services -- South Africa , Consumer satisfaction -- South Africa , Consumption (Economics) -- Social aspects , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9296 , http://hdl.handle.net/10948/d1013610
- Description: The study is on the influence of comprehensive servicescape on shopping behaviour of road and rail travelling shoppers. The comprehensive servicescape is referred to as synchronization of the multidimensional servicescape dimensions, which are the physical environment, social environment, socially symbolic and the natural dimensions into one entity that the travellers encounter during the shopping exercise. The servicescape cues that include shoppers and the physical set-up of the service firm are important in influencing service quality evaluation and consumer satisfaction. The aim of this study was to establish the impact of servicescape on travelling shoppers’ buying behaviour and shopping motivations amongst different shoppers that were identified within the South African bus and railway stations. The bus and railway station environment induces an interesting type of shopping behaviour amongst the travelers. The purpose of the study was also to explore the travelling shoppers’ expectations and perceptions on the comprehensive servicescape within the bus station’s retail environment. Additionally the study attempted to address important gaps in the South African literature in respect of the influence of socialservicescape on the buyer behaviour and hedonic motivation of travelling shopper. The questionnaires used in the study were constructed along five dimensions of service quality containing statements linked to a five-point Likert-type interval scale anchored by “strongly agree” and “strongly disagree. Self administered questionnaires were used for data collection from the travelling shoppers through “mall intercept technique” and 300 questionnaires were collected from respondents. The academia benefits from this study from the comprehensive servicescape model of the South African bus and railway stations that was developed. The study built on literature by nvestigating the influence of the comprehensive servicescapes as perceived by travelling shoppers within the South African retail environment. Additionally it was shown both theoretically and empirically, that, that service quality in high contact service environment like the bus and railway station can best be explained by an analysis of the comprehensive servicescape or the multidimensional and hierarchical model. As a result of this study retailers will have a full picture on the specific needs, perception and expectations of road and rail travellers in relation to the quality of the stations’ servicescape, which retailers have to improve in order to increase customer patronage. It is assumed that retailers will be aware that store image and the store ambience should meet the challenges of the perceptions, motivations and consumer behaviour of travellers within the comprehensive servicescape of the station. This study provides a trigger effect to spatial planners to design high quality servicescape that will attract travellers for both hedonic and utilitarian shopping. Hirschman and Holbrook (1982) believed that shoppers derive pleasure from the experience of shopping itself, regardless of the joy from acquiring goods, this more so with travelling shoppers. A bus station can be both a growth node and a tourist attraction, if its features are attractive, therefore planners can benefit from this study. In this study theory that forms the bases of the influence of social servicescape on the behaviour of travelling shoppers that frequently visit and participate in shopping at various South African bus station retail outlets is provided. Additionally, this study provided empirical information on the relationships that exist amongst the characteristics of the South African Park Stations’ physical retail environments, user perceptions and interpersonal encounters. The behaviour of shopping travellers was extensively discussed to provide the background of theories and various models concerning shopping behaviour of travellers. Through this work, clarity on consumer behavioural trends of travelling shoppers in the South African retail sector is provided, which assist in differentiating retail products, services and segmentation of markets in a way that could enhance marketing effectiveness amongst the travelling shopping segment. Special attention was paid to factors that motivate road travellers’ choice of stores; the type of products they purchase and their decision making processes. Effort were made to identify, categorize and segment shopper typologies and their shopping behaviours. Effort was also made to discuss extensively the social and physical influences of environments in a retail environment such as that of the bus and railway station. The discussions in this study focussed on describing the comprehensive servicescape model dimensions which shoppers encountered during their shopping activity. The study also indicated the significance of the interaction of service staff with the customers in determining the service quality, customer satisfaction and the future intention of travelers. Additionally this study emphasised the importance of social encounters and perceptiveness to cues within the station, which determine whether they actively or passively are involved in the shopping encounter. The research findings reveal that, travellers perceive the servicescape within the bus station as unattractive and lack appropriate facilities. Furthermore travelers considered the two dimensions (store image and store ambience) of the store’s servicescape as one composite unit of the servicescape. This position is supported in literature, where it is argued that people respond to their environment holistically, rather than to individual stimuli. The travelling shoppers reveal that although they always find the shops from the bus station clean and neat, consumers expect a certain level of ambient environmental conditions to be present. The empirical findings in this study indicate that travelling shoppers are not interested in visiting the stores at the bus and railway station for shopping because merchandise from the bus station stores is poor in quality and unreliable; the surroundings at the station as unpleasant and the bus and railway station stores are congested. Thus, hasty shopping and spending more time or stay longer than planned for shopping at the bus and railway station is not useful to travelling shoppers. Therefore, travellers feel strongly that the shopping environment of the station is not conducive to shopping. These facilities (stations) are only used for travelling purposes; therefore there is a need for improvement in the retail and station facilities in order to increase shopping activities within this servicescape. The research findings reveal that shopping at the bus station seems to be driven by traditional needs such as functional and experiential motivations as well as travelrelated needs such as busstation-atmosphere-related and bus station-infrastructurerelated motivations. It was difficult to deduce a particular typology of shoppers in this environment, but due to the stress related to travelling. Passive shopping was observed amongst travellers, which is not a positive shopping behaviour for retailers.
- Full Text:
- Date Issued: 2012
- Authors: Zinhumwe, Cephas
- Date: 2012
- Subjects: Retail trade -- Customer services -- South Africa , Consumer satisfaction -- South Africa , Consumption (Economics) -- Social aspects , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9296 , http://hdl.handle.net/10948/d1013610
- Description: The study is on the influence of comprehensive servicescape on shopping behaviour of road and rail travelling shoppers. The comprehensive servicescape is referred to as synchronization of the multidimensional servicescape dimensions, which are the physical environment, social environment, socially symbolic and the natural dimensions into one entity that the travellers encounter during the shopping exercise. The servicescape cues that include shoppers and the physical set-up of the service firm are important in influencing service quality evaluation and consumer satisfaction. The aim of this study was to establish the impact of servicescape on travelling shoppers’ buying behaviour and shopping motivations amongst different shoppers that were identified within the South African bus and railway stations. The bus and railway station environment induces an interesting type of shopping behaviour amongst the travelers. The purpose of the study was also to explore the travelling shoppers’ expectations and perceptions on the comprehensive servicescape within the bus station’s retail environment. Additionally the study attempted to address important gaps in the South African literature in respect of the influence of socialservicescape on the buyer behaviour and hedonic motivation of travelling shopper. The questionnaires used in the study were constructed along five dimensions of service quality containing statements linked to a five-point Likert-type interval scale anchored by “strongly agree” and “strongly disagree. Self administered questionnaires were used for data collection from the travelling shoppers through “mall intercept technique” and 300 questionnaires were collected from respondents. The academia benefits from this study from the comprehensive servicescape model of the South African bus and railway stations that was developed. The study built on literature by nvestigating the influence of the comprehensive servicescapes as perceived by travelling shoppers within the South African retail environment. Additionally it was shown both theoretically and empirically, that, that service quality in high contact service environment like the bus and railway station can best be explained by an analysis of the comprehensive servicescape or the multidimensional and hierarchical model. As a result of this study retailers will have a full picture on the specific needs, perception and expectations of road and rail travellers in relation to the quality of the stations’ servicescape, which retailers have to improve in order to increase customer patronage. It is assumed that retailers will be aware that store image and the store ambience should meet the challenges of the perceptions, motivations and consumer behaviour of travellers within the comprehensive servicescape of the station. This study provides a trigger effect to spatial planners to design high quality servicescape that will attract travellers for both hedonic and utilitarian shopping. Hirschman and Holbrook (1982) believed that shoppers derive pleasure from the experience of shopping itself, regardless of the joy from acquiring goods, this more so with travelling shoppers. A bus station can be both a growth node and a tourist attraction, if its features are attractive, therefore planners can benefit from this study. In this study theory that forms the bases of the influence of social servicescape on the behaviour of travelling shoppers that frequently visit and participate in shopping at various South African bus station retail outlets is provided. Additionally, this study provided empirical information on the relationships that exist amongst the characteristics of the South African Park Stations’ physical retail environments, user perceptions and interpersonal encounters. The behaviour of shopping travellers was extensively discussed to provide the background of theories and various models concerning shopping behaviour of travellers. Through this work, clarity on consumer behavioural trends of travelling shoppers in the South African retail sector is provided, which assist in differentiating retail products, services and segmentation of markets in a way that could enhance marketing effectiveness amongst the travelling shopping segment. Special attention was paid to factors that motivate road travellers’ choice of stores; the type of products they purchase and their decision making processes. Effort were made to identify, categorize and segment shopper typologies and their shopping behaviours. Effort was also made to discuss extensively the social and physical influences of environments in a retail environment such as that of the bus and railway station. The discussions in this study focussed on describing the comprehensive servicescape model dimensions which shoppers encountered during their shopping activity. The study also indicated the significance of the interaction of service staff with the customers in determining the service quality, customer satisfaction and the future intention of travelers. Additionally this study emphasised the importance of social encounters and perceptiveness to cues within the station, which determine whether they actively or passively are involved in the shopping encounter. The research findings reveal that, travellers perceive the servicescape within the bus station as unattractive and lack appropriate facilities. Furthermore travelers considered the two dimensions (store image and store ambience) of the store’s servicescape as one composite unit of the servicescape. This position is supported in literature, where it is argued that people respond to their environment holistically, rather than to individual stimuli. The travelling shoppers reveal that although they always find the shops from the bus station clean and neat, consumers expect a certain level of ambient environmental conditions to be present. The empirical findings in this study indicate that travelling shoppers are not interested in visiting the stores at the bus and railway station for shopping because merchandise from the bus station stores is poor in quality and unreliable; the surroundings at the station as unpleasant and the bus and railway station stores are congested. Thus, hasty shopping and spending more time or stay longer than planned for shopping at the bus and railway station is not useful to travelling shoppers. Therefore, travellers feel strongly that the shopping environment of the station is not conducive to shopping. These facilities (stations) are only used for travelling purposes; therefore there is a need for improvement in the retail and station facilities in order to increase shopping activities within this servicescape. The research findings reveal that shopping at the bus station seems to be driven by traditional needs such as functional and experiential motivations as well as travelrelated needs such as busstation-atmosphere-related and bus station-infrastructurerelated motivations. It was difficult to deduce a particular typology of shoppers in this environment, but due to the stress related to travelling. Passive shopping was observed amongst travellers, which is not a positive shopping behaviour for retailers.
- Full Text:
- Date Issued: 2012
Factors contributing to the success of professional and business women in South Africa
- Authors: Doubell, Marianne
- Date: 2011
- Subjects: Women executives -- South Africa , Women in the professions -- South Africa , Businesswomen -- South Africa , Career development -- South Africa , Women in development -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9275 , http://hdl.handle.net/10948/1622 , Women executives -- South Africa , Women in the professions -- South Africa , Businesswomen -- South Africa , Career development -- South Africa , Women in development -- South Africa
- Description: Women remain notably underrepresented in management and leadership positions despite the enactment of Equal Opportunity and Affirmative Action policies. A critical literature review yielded evidence of a multitude of barriers inhibiting women’s career advancement beyond an apparent glass ceiling, but not which of the factors constitute the major barriers. A knowledge gap was further identified in research pertaining to characteristics of successful professional women and the environments that enable them to succeed in their professions. The purpose of the current study is to expand the empirical body of research and knowledge on factors contributing to the success of professional women, and of factors inhibiting the career progression of women in business. The study extends that of Punnett, Duffy, Fox, Gregory, Lituchy, Monserrat, Olivas-Luján and Santos (2006) and of Duffy, Fox, Punnett, Gregory, Lituchy, Monserrat, Olivas-Luján, Santos and Miller (2006), conducted in the Americas, to the South African context. The study suggests a conceptual framework for investigating factors that influence professional success of women. The developed conceptual framework of factors perceived to influence professional success was employed to empirically test the relationships between the variables presented. The empirical data collected was subjected to a series of statistical tests and the results considered in testing the hypotheses. Statistica 10 was employed to analyse the empirical data collected. Univariate and multivariate tests (MANOVA) were employed to determine whether sufficient evidence existed to make conclusions about hypotheses one to five of the study, relating to differences between two success groups of women based on their demographics and the selected variables. Pearson Product Moment Correlation (Pearson r) was employed to determine whether sufficient evidence existed to make conclusions about vi hypotheses six to ten, relating to significant relationships between the selected independent variables for the study and the professional success of women. Professional success was measured as job seniority level. For the pipeline success group, professional success was measured as seniority in relation to years in the employment sector and age. The contribution of the study to management science and possible limitations are discussed and recommendations made for future research. Recommendations for the development of women and for the social transformation of organisations are made. The study identifies a number of internal organisational support factors and government interventions which are recommended for inclusion in development initiatives for the achievement of gender equity.
- Full Text:
- Date Issued: 2011
- Authors: Doubell, Marianne
- Date: 2011
- Subjects: Women executives -- South Africa , Women in the professions -- South Africa , Businesswomen -- South Africa , Career development -- South Africa , Women in development -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9275 , http://hdl.handle.net/10948/1622 , Women executives -- South Africa , Women in the professions -- South Africa , Businesswomen -- South Africa , Career development -- South Africa , Women in development -- South Africa
- Description: Women remain notably underrepresented in management and leadership positions despite the enactment of Equal Opportunity and Affirmative Action policies. A critical literature review yielded evidence of a multitude of barriers inhibiting women’s career advancement beyond an apparent glass ceiling, but not which of the factors constitute the major barriers. A knowledge gap was further identified in research pertaining to characteristics of successful professional women and the environments that enable them to succeed in their professions. The purpose of the current study is to expand the empirical body of research and knowledge on factors contributing to the success of professional women, and of factors inhibiting the career progression of women in business. The study extends that of Punnett, Duffy, Fox, Gregory, Lituchy, Monserrat, Olivas-Luján and Santos (2006) and of Duffy, Fox, Punnett, Gregory, Lituchy, Monserrat, Olivas-Luján, Santos and Miller (2006), conducted in the Americas, to the South African context. The study suggests a conceptual framework for investigating factors that influence professional success of women. The developed conceptual framework of factors perceived to influence professional success was employed to empirically test the relationships between the variables presented. The empirical data collected was subjected to a series of statistical tests and the results considered in testing the hypotheses. Statistica 10 was employed to analyse the empirical data collected. Univariate and multivariate tests (MANOVA) were employed to determine whether sufficient evidence existed to make conclusions about hypotheses one to five of the study, relating to differences between two success groups of women based on their demographics and the selected variables. Pearson Product Moment Correlation (Pearson r) was employed to determine whether sufficient evidence existed to make conclusions about vi hypotheses six to ten, relating to significant relationships between the selected independent variables for the study and the professional success of women. Professional success was measured as job seniority level. For the pipeline success group, professional success was measured as seniority in relation to years in the employment sector and age. The contribution of the study to management science and possible limitations are discussed and recommendations made for future research. Recommendations for the development of women and for the social transformation of organisations are made. The study identifies a number of internal organisational support factors and government interventions which are recommended for inclusion in development initiatives for the achievement of gender equity.
- Full Text:
- Date Issued: 2011