Scielo RSS <![CDATA[Acta Commercii]]> vol. 20 num. 1 lang. pt <![CDATA[SciELO Logo]]> <![CDATA[<b>Modelling key predictors that stimulate the entrepreneurial performance of small and medium-sized enterprises (SMEs) and poverty reduction: Perspectives from SME managers in an emerging economy</b>]]> ORIENTATION: In this ever-changing business milieu, poverty alleviation has turned into an important issue after the publication of the 2015 United Nations Sustainable Development Goals, which aim at eradicating poverty in all its forms and dimensions by 2030. RESEARCH PURPOSE: This study investigates the effect of entrepreneurship education, budgeting financial literacy and access to credit facilities on entrepreneurial performance and poverty reduction. MOTIVATION FOR THE STUDY: There is a lack of literature that studies the effect of entrepreneurship education, budgeting financial literacy and access to credit facilities on entrepreneurial performance and poverty reduction in an emerging economy, such as South Africa. RESEARCH DESIGN, APPROACH AND METHOD: The study adopted a quantitative approach. The examination was completed in the Vhembe District of Limpopo province, South Africa, where many people live in poverty. A structured questionnaire was used to collect data from 150 managers of rural small and medium-sized enterprises (SMEs). To test the hypothesised model, structural equation modelling (SEM) analysis was employed using the Smart partial least squares (PLS) software. MAIN FINDINGS: The findings uncovered that entrepreneurship education, budgeting financial literacy and access to credit facilities positively impact entrepreneurial performance of SMEs and reduce poverty. PRACTICAL/MANAGERIAL IMPLICATIONS: The present research provides theoretical implications for academics in the field of entrepreneurship, precisely, by enhancing an understanding of the link between entrepreneurship education, budgeting financial literacy, access to credit facilities, entrepreneurship performance and poverty reduction. On the practitioners' side, this work offers avenues for SME managers to improve entrepreneurial ventures and eventually eliminate household poverty. Moreover, this study also offers policy implications. Existing policies, for example, can be updated, with the goal of improving entrepreneurial performance of SMEs and reducing poverty. CONTRIBUTION/VALUE-ADD: This article provides useful insights into and suggestions on the way forward. Furthermore, it contributes to the existing knowledge base in the field of entrepreneurship. As such, this research is important for SME managers because most of them endeavour to enhance entrepreneurial performance and alleviate poverty in their communities. <![CDATA[<b>Variable executive remuneration and company performance: Insights from the Johannesburg Stock Exchange, South Africa</b>]]> ORIENTATION: Agency theory predicts that agency relationships are subject to the principal-agent problem. Other theories also suggest that executives may tend to maximise sales revenues, or expand their spans of influence through growth, at the expense of the net value of the firm or its profitability. RESEARCH PURPOSE: The purpose of this study is to test which forms of company performance are associated with higher executive variable pay ratios or determine the proportion of variable director remuneration to total remuneration MOTIVATION FOR THE STUDY: The extent to which variable remuneration is associated with different types of firm performance is unclear. RESEARCH DESIGN, APPROACH AND METHOD: This study applies a simple panel regression model to test the extent to which the variable ratio of total director remuneration contributes differently to increases in firm revenue, total assets, return on assets, or measures of Tobin's Q. These relationships are tested for listed companies on South Africa's Johannesburg Stock Exchange, South Africa, for the years 2011-2014. MAIN FINDINGS: Variable remuneration is found to be negatively and strongly related to total revenue and negatively and weakly related to total assets (the gross measures of performance). In contrast, variable remuneration is weakly and positively related to Tobin's Q, a measure which better reflects the interests of shareholders than gross measures. PRACTICAL/MANAGERIAL IMPLICATIONS: Firms in this context should seek to strengthen the linkages between variable remuneration and forms of performance that reflect the interests of stakeholders. CONTRIBUTION/VALUE-ADD: In the wake of global and local governance failures, this study suggests that the use of the variable component of executive remuneration might be helpful in aligning stakeholder interests. Further research might seek to better understand the causal mechanisms that underlie these findings. <![CDATA[<b>Dynamics informing xenophobia and leadership response in South Africa</b>]]> ORIENTATION: The research addressed the issue of leadership response to xenophobia in South Africa that has a unique characteristic of being 'black on black'. RESEARCH PURPOSE: The research purpose was to assess the dynamics informing xenophobia in South Africa, leadership responses and systemic lessons thereon. MOTIVATION FOR THE STUDY: The first black president, the late Nelson Mandela, put in place a Constitution that has an intent to protect all stakeholders in a non-racist, non-sexist and without discrimination based on colour or creed. This pleasantness and warm welcome attracted a large influx of immigrants from across the continent and South Asia who come as international students, skilled professionals and economic refugees. This migratory pattern has led to protracted conflict between immigrants from Africa and indigenous black South Africans. RESEARCH DESIGN, APPROACH AND METHOD: A qualitative, exploratory research that drew data from the semi-structured interviews was carried out. Seven participants were purposefully sampled based on their involvement with the xenophobic affairs in their line of work. Content analysis augmented the primary data. MAIN FINDINGS: The findings of this research showed that xenophobia is a consequence of the socio-economic environment in South Africa and that the leadership response shaped the public opinion on the phenomenon. PRACTICAL/MANAGERIAL IMPLICATIONS: The research informed all South Africans, policy-makers and leadership in government on the consequences of xenophobia on the growth and image of the country. CONTRIBUTION/VALUE-ADD: This article contributed to the current efforts by leadership in both government and civil society towards addressing the socio-economic issues that fuel xenophobia. <![CDATA[<b>The relationship of self-efficacy and entrepreneurial intentions on the commitment of the next generation in family-owned agribusinesses</b>]]> ORIENTATION: Poor intergenerational survival rate of family-owned agribusinesses is a matter of serious concern in family business literature. Ageing population of senior leaders and a lack of commitment from the next generation are often cited as the main contributing factors. RESEARCH PURPOSE: The purpose of this research was to investigate the relationship between cognitive factors (self-efficacy and entrepreneurial intentions) and commitment of the next generation in family-owned agribusinesses. MOTIVATION FOR THE STUDY: Family business literature is extensive regarding the phenomena of high failure rate amongst family-owned business, and agribusinesses are not immune to this phenomenon. However, previous research has focussed more on situational factors that relate to 'contextual' environment surrounding the individual, whilst little research has focussed on 'cognitive' (person-related) factors. RESEARCH DESIGN, APPROACH AND METHOD: Following a positivistic paradigm, a cross-sectional design was followed using a quantitative self-administered questionnaire through multi-stage probability sampling, resulting in a sample of 125 next-generation individuals in family-owned agribusinesses. The data was subjected to an exploratory factor analysis and Pearson's correlation test. MAIN FINDINGS: The results revealed that there was a significant relationship between self-efficacy, entrepreneurial intentions (person-related factors) and commitment of the next generation. Furthermore, the relationship between self-efficacy and entrepreneurial intentions was also found to be positively significant PRACTICAL/MANAGERIAL IMPLICATIONS: A committed, willing and ready next generation is a prerequisite for effective succession in family businesses, given the expected exodus of a large cohort of senior leaders. Therefore, succession planning, especially from the successor's side, needs effective management. Investment in career planning and development of the next generation is a step in the right direction. CONTRIBUTIONS/VALUE-ADD: Given the dearth of research exploring successor-related factors affecting succession, the current article adds to the literature by examining the relationship between person-related factors (self-efficacy and entrepreneurial intentions) and commitment (behavioural outcome) of the next generation within the realm of agribusiness development. <![CDATA[<b>Innovation in small accommodation businesses: A comparative study of Zimbabwe and South Africa</b>]]> ORIENTATION: The accommodation sector has been identified as the most competitive and innovative segment of the tourism offer. However, the uncertainty with regard to persistent fierce competition that often shrouds small accommodation businesses (SABs) from their large business counterparts necessitates the identification and understanding of sustainable drivers of innovation to ensure their survival. RESEARCH PURPOSE: The main purpose of this study was to examine and compare the influence of selected drivers (market and learning orientations [LOs]) on innovation in SABs in Zimbabwe and South Africa. MOTIVATION OF THE STUDY: This study was motivated by the absence of empirical evidence in establishing and comparing the relationship between market and LOs and innovation in SABs in Zimbabwe and South Africa. RESEARCH DESIGN, APPROACH AND METHOD: This study used a descriptive cross-sectional comparative research design. Using simple random sampling, two samples each of 139 from SABs in Manicaland in Zimbabwe and the Free State province in South Africa were analysed using one-way ANOVA, Pearson product-moment correlations and regression analysis. MAIN FINDINGS: The results demonstrate that market and LOs influence innovation in SABs in Zimbabwe and South Africa. PRACTICAL/MANAGERIAL IMPLICATIONS: In view of the strong association between market and LOs and innovation, owners or managers of SABs should embrace and invest more in these orientations to stimulate sustainable innovative behaviour. CONTRIBUTION/VALUE-ADD: This study adds richness to extant research by affirming market and LOs as drivers of innovation in SABs in Zimbabwe and South Africa. <![CDATA[<b>Stemming the sportswear counterfeit tide: Emerging market evidence of rational and normative drivers</b>]]> ORIENTATION: Increasingly, there is an urgent need to curb the scourge of counterfeiting, which is fast becoming a global economic threat with severe implications on employment creation and societal well-being RESEARCH PURPOSE: The aim of this study was to examine the effect of rational and normative factors on consumers' willingness to buy counterfeit sportswear in South Africa MOTIVATION FOR THE STUDY: This study contributes input to the development of long-term strategies of curbing the escalating scourge of counterfeiting in the sportswear sector. RESEARCH DESIGN, APPROACH AND METHOD: The study was conducted in South Africa's southern Gauteng region and Johannesburg central business district, which are considered to be amongst the major counterfeit sportswear promoting segments in South Africa. Cross-sectional data were collected from a convenient sample of 390 respondents. Study hypotheses were tested using standard multiple regression analysis. MAIN FINDINGS: Perceived financial control and subjective norm emerged as the main factors that engender favourable attitudes towards counterfeit products. Furthermore, attitude towards counterfeits had a strong positive effect on consumers' willingness to purchase counterfeit sportswear PRACTICAL/MANAGERIAL IMPLICATIONS: The findings of this study suggest that a combination of normative and rational strategies have the potential to change consumers' attitudes and willingness to purchase counterfeit sportswear. CONTRIBUTION/VALUE-ADDED: The study findings highlight the importance of attempting to address the problem of counterfeiting not only from a regulatory perspective but also from a rational and normative perspective. <![CDATA[<b>The influence of inventory sequencing for the improvement of inventory control: Evidence from a South African automotive assembly organisation</b>]]> ORIENTATION: Control of inventory is a central issue in operations management and has received a considerable amount of attention in literatures. One of the reasons behind this attention is that inventory holding comprises a significant cost in the supply chain RESEARCH PURPOSE: The study investigates whether the inventory sequencing system has an influence in improving inventory control in an automotive assembly organisation in KwaZulu-Natal, South Africa MOTIVATION FOR THE STUDY: There is a lack of coordination and control in the management of the inventory in the supply chain in South Africa. The traditional supply chain practice uses sequences of weakly connected activities both within and outside the organisation. This leads to misalignments in the supply chain. RESEARCH DESIGN, APPROACH AND METHODS: The automotive company that has adopted an inventory sequencing strategy participated in the study. The collection of data was carried out in two phases. This includes the collection of pre- and post-inventory sequencing results from company records for production volumes, inventory costs and product damages. The pre-inventory sequencing results were quarterly data reflecting the company's performance over the 4-year period prior to the implementation of inventory sequencing. The study was quantitative in design and examined the production and related experiences of the automotive assembly organisation that has adopted an inventory sequencing procedure. The Ordinary Least Squares (OLS) model, using the Statistical Package for Social Sciences (SPSS) was used to analyse data. The company operates in the eThekwini District Municipality in KwaZulu-Natal. MAIN FINDINGS: The study established that the inventory sequencing has no influence on either the production volumes or inventory costs. However, it has the ability to reduce product damages PRACTICAL/MANAGERIAL IMPLICATIONS: The automotive sector should revise their operations and develop inventory control strategies, policies and practices that help to achieve new business goals. CONTRIBUTION/VALUE-ADD: The original value of this article is its approach in uncovering strengths and weaknesses of inventory sequencing for the improvement of inventory control in the automotive sector. <![CDATA[<b>An exploration into the role of personality on the experiences of work-family conflict among the mining industry personnel in South Africa</b>]]> ORIENTATION: Workers within the mining industry are often exposed to hazardous and strenuous working conditions that arise from the nature of their job and these demands from work tend to conflict with family demands resulting in work-family conflict (WFC). However, individuals possess different personality traits and these are assumed to play a role in the extent of the experiences of WFC RESEARCH PURPOSE: The study had an objective of investigating the role of personality in the experiences of WFC among employees in the mining industry MOTIVATION FOR THE STUDY: By understanding personality traits and their varied influences in the experiences of WFC in different individuals, steps can be taken to address WFC in a manner that meets every employee's demands instead of adopting a holistic approach. RESEARCH DESIGN, APPROACH AND METHOD: The quantitative discipline was adopted with the use of structured questionnaires. The study consisted of 270 respondents. Probability sampling was used to select respondents from the population. The program SPSS was used to apply linear regression analysis to examine the association between variables. MAIN FINDINGS: The findings of the study showed that a negative relationship exists between personality traits and the various forms of WFC as well WFC holistically. The results also showed significant negative correlations with the different forms of WFC, with the exception of the agreeableness trait, and that personality traits combined had greater influence on the experiences of WFC than each distinctly PRACTICAL/MANAGERIAL IMPLICATIONS: The findings of the study assist in the implementation of procedures and policies that will help in reducing WFC and its consequences in the work environment. CONTRIBUTION/VALUE-ADD: The findings confirm that personality traits influence the experiences of WFC among individuals and the study also contributes towards adding to existing knowledge and insights concerning WFC. <![CDATA[<b>Precursors and outcome of satisfaction in business-to-business relationship building: An information communication technology industry perspective in South Africa</b>]]> ORIENTATION: To secure a competitive business position, mobile business service providers need to explore the factors that, in predicting customer loyalty, will enable them to focus marketing efforts on improving their current customer management strategy, ultimately leading to enhanced satisfaction RESEARCH PURPOSE: This study intended to determine the influence of selected customer relationship management factors on customer satisfaction and customer loyalty MOTIVATION FOR THE STUDY: To ensure the loyalty of their customer base, mobile business service providers need to understand the factors that secure customer satisfaction in a competitive ICT business-to-business (B2B) market. RESEARCH DESIGN, APPROACH AND METHOD: Data were gathered by means of a self-administered questionnaire, and a total of 253 responses were eligible for analysis. Simple regression analysis was applied to validate the hypotheses formulated. MAIN FINDINGS: It was established that corporate image, service quality, perceived value, customisation and trust have a significant and positive influence on ICT business customer satisfaction and loyalty PRACTICAL/MANAGERIAL IMPLICATIONS: The findings suggest that efforts towards improving corporate image, service quality and customer perception of the value provided, focusing on the level of customisation and establishing trust among business customers will aid B2B mobile service providers in achieving satisfied and loyal customers. CONTRIBUTION/VALUE-ADD: This study adds to the body of knowledge by identifying and demonstrating the influence of five customer relationship management factors that contribute to achieving customer satisfaction and loyalty in the Business-to-business information communication technology (B2B ICT) industry of an emerging African market. <![CDATA[<b>The strategising roles of public sector middle managers</b>]]> ORIENTATION: Whilst research on middle managers has increased considerably, research on the role of middle managers in the public sector context remains a rich context for exploring strategising RESEARCH PURPOSE: The purpose of this research was to explore the strategising roles of middle managers in the public sector through the strategy-as-practice perspective MOTIVATION FOR THE STUDY: The article responds to calls for research using the strategy-as-practice perspective to explore the role of middle managers in the public sector. RESEARCH DESIGN, APPROACH AND METHOD: The research adopted a qualitative exploratory case study design. The data was gathered using semi-structured interviews conducted with 14 middle managers at a selected government department. MAIN FINDINGS: The research findings confirm that the strategising roles of middle managers in the public sector comprise of three key roles: sense-making and sense-giving role, the implementation role and monitoring and evaluation role. Within the public sector context, strategies are mostly deliberate and driven from national plans. When middle managers `receive' these strategies, they make sense of it and then communicate the strategy to their subordinates through their own interpretations involving both horizontal and vertical communication channels PRACTICAL/MANAGERIAL IMPLICATIONS: The findings confirm benefits for involving middle managers in the crafting of high-level strategy in government departments which may lead to them owning the strategy and implementation thereof. CONTRIBUTION/VALUE-ADD: The research adds value by confirming the middle managers' strategising roles within the chosen government department and identifying how changes to their roles can enhance strategising. <![CDATA[<b>Investigating the subjective well-being of the informally employed: A case study of day labourers in Windhoek and Pretoria</b>]]> ORIENTATION: Day labouring is becoming more frequent in developing countries. Long spells of unemployment and the uncertainty of informal wage employment impact negatively on the subjective well-being (SWB) of day labourers. RESEARCH PURPOSE: The aim of the article was to investigate the level and possible determinants of the SWB of day labourers in Pretoria and Windhoek. MOTIVATION FOR THE STUDY: Up to now, only one study has been carried out in South Africa on the SWB of day labourers and none in Namibia. This study aimed to start filling this gap in the literature. The choice of the two cities was based on their status as the capital cities of two countries that are both experiencing increasing numbers of day labourers. RESEARCH DESIGN, APPROACH AND METHOD: A mixed-method research design and purposeful sampling were used to obtain representative samples. Data were sourced from comparable surveys amongst day labourers in the two cities between 2015 and 2017. Questionnaires with quantitative and qualitative sections were completed during structured interviews with 290 and 80 day labourers in Pretoria and Windhoek respectively. The ordinary least squares model and ordered-probit analysis were employed to analyse the data. MAIN FINDINGS: In Pretoria, the number of dependents, the living conditions and whether they had a full-time job before were all significant in explaining the SWB of the day labourers. In Windhoek, education levels, total days without food, staying with their families and being a foreigner were also significant. PRACTICAL/MANAGERIAL IMPLICATIONS: The needs of the informally employed must be addressed in the integrated development plans of municipalities and integrated with day labour worker centres. CONTRIBUTION/VALUE-ADD: This is the first study to analyse SWB amongst day labourers in Namibia and lays the foundation for future expanded studies. <![CDATA[<b>Employment growth constraints of informal enterprises in Diepsloot, Johannesburg</b>]]> ORIENTATION: Informal enterprises in South Africa's townships play an important role in employment creation and social protection. While some informal enterprises in inner cities grow, those in townships experience stagnant growth RESEARCH PURPOSE: The aim was to identify and analyse the internal and external growth constraints, regarding employment growth, of informal enterprises in Diepsloot, Soweto. MOTIVATION FOR THE STUDY: Knowledge of internal and external growth constraints can inform policymakers on aspects that needs attention in assisting informal enterprises to realise their growth potential. RESEARCH DESIGN, APPROACH AND METHOD: A quantitative research approach was followed. Primary data were collected from 300 informal enterprises using a convenience sampling technique and structured questionnaire. Descriptive statistics, a matrix analysis and logistic regression models were used to analyse the data MAIN FINDINGS: The statistically significant growth constraints faced by informal enterprises in Diepsloot are external constraints over which the owner or manager has no control. Local authorities have an important role to play in the growth of informal enterprises PRACTICAL/MANAGERIAL IMPLICATIONS: Managers need skills and training to manage the external growth constraints. Local authorities should also provide proper infrastructure, public services and increased security. An alternative source of funding, with the ease of access of micro-lender financing but at the rates of commercial bank lending, should be investigated. CONTRIBUTION/VALUE-ADD: This study focuses on the growth constraints of informal enterprises in a township offering a wide range of goods and services. The increase in the number of employees is used as the measure for the enterprises' growth. <![CDATA[<b>Investigating the impact of antecedents of internal audit function effectiveness at a private university in Ghana</b>]]> ORIENTATION: The need for sound corporate governance has directed attention to internal auditing as a corporate governance tool and mechanism in both public and private sector organisations. RESEARCH PURPOSE: The study examined the impact of management support and commitment, staff competence and independence of internal auditors as the antecedents of the effectiveness of an internal auditing function. MOTIVATION FOR THE STUDY: This study was motivated by the need to assess the effectiveness of internal auditing as a corporate governance tool in a non-profit organisation. RESEARCH DESIGN, APPROACH AND METHODS: A quantitative case study design was employed in this study. A structured questionnaire was administered to 250 respondents, systematic randomly selected from a target population of 480. Data collected were analysed descriptively and inferentially. The inferential statistics employed were correlation and multiple regression. MAIN FINDINGS: The results reveal that, independence of the internal auditing staff (mean = 6.05, standard deviation [SD] = 1.032); their competence (mean = 6.00, SD = 1.132); and support and commitment of management (mean = 4.80, SD = 1.679) have impact on the effectiveness of internal auditing (mean = 6.44, SD = 0.863). Further more, the antecedents (r = 0.834*, r² = 0.686, p < 0.01, adj. r² = 0.677) have a positive correlation with internal audit effectiveness, and collectively account for 68.6% of the effectiveness of internal audit function PRACTICAL/MANAGERIAL IMPLICATIONS: Management should ensure, (1) full support and commitment to the internal auditing function; (2) adequate resources are available; (3) appropriate skills and experience and (4) consistent training and development of internal auditing staff. CONTRIBUTION/VALUE-ADD: This study extends the academic debate on internal auditing as a corporate governance tool of managing the agency problem inherent in non-profit organisations.