RESEARCH ARTICLES

 

Organisational antecedents for an enhanced understanding of the effectiveness of organisations in Namibia

 

 

Matthias Mpareke Ngwangwama

Department of Business Management, University of Stellenbosch Business Schoo South Africa. Email: mnawanawama@gmail.com; ORCID: https://0000-0003-0598-008X

 

 

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ABSTRACT

PURPOSE OF THE STUDY: The aim of this study was to highlight key organisational antecedents that are associated with the effectiveness of organisations in a typical developing country, Namibia
DESIGN/METHODOLOGY/APPROACH: This study was based on an interpretivist research paradigm in line with familiar features of qualitative research design. It applied an inductive research approach through data obtained via interviews from 54 key organisational role players and ultra-elites and made use of some features of multiple case studies as a research strategy to collect and analyse data
FINDINGS: The study identified four Namibia-specific contextual influences and ten core contingent organisational antecedents that are associated with the effectiveness of organisations in Namibia. The findings relate to the pertinent need to develop strategies to contain the negative effects of the Namibian-specific contextual impediments, such as heavily politicised environments, lack of proper skills, the size of the economy and population as well as fear in expressing opinions, from adversely affecting the effectiveness of organisations
RECOMMENDATIONS/VALUE: The study findings have theoretical and practical value for those teaching, consulting and leading organisations in developing countries, especially in African organisations. Also, those in the fields of organisational development and design, human resources, business management practice and expatriates who manage business operations in Namibia might benefit from the findings of the study
MANAGERIAL IMPLICATIONS: As contributions to the improvement of the contemporary field of management, continued research efforts are suggested to empirically further investigate ways of how to contain the negative effects of politics and lack of adequate skills and work experience on effective organisational management in developing countries. In addition, employing quantitative research approaches, such as surveys, is suggested as areas for further research to robustly test the level of entrenchment of the ten core organisational practices and activities developed in this study in a larger sample of organisations
JEL CLASSIFICATION: M1, M14

Keywords: Developing country; Effectiveness of organisations; Namibia; Organisational practices; Qualitative research.

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1. INTRODUCTION AND BACKGROUND

Over the years, business management science, with its classical functional areas such as marketing, accounting and finance, has been a key research focus area. In particular, research into the leading organisational antecedents that contribute to the effectiveness of organisations has been a subject that has motivated the writings of economists, organisation theorists, management philosophers, financial analysts, management scientists, consultants, educationists and practitioners (Özgür, 2016; Pandya & Srivastava, 2017). Investigating organisational antecedents associated with the effectiveness of organisations from a developing country perspective is pertinent because business, in a constructive relationship with the government and other stakeholders, could be a cornerstone of prosperity in society. With prosperous organisations come successful economies, and with successful economies come prosperous nations. Like in the case of Namibia, business organisations are generally seen as the "engine for economic transformation and growth" (Namibia Trade Directory, 2008). In this context, business organisations appear to play an important role in people's daily lives and, therefore, might represent a key ingredient, particularly in developing countries' efforts to attain meaningful social and economic transformation and development.

One aspect is often singled out as a barrier to the broad-based understanding of the antecedents to the effectiveness of organisations. There is seemingly a misplaced belief that business management theories and practices are universal and immutable in all contexts. It is commonly suggested that there are universal definitions, "one-size-fits-all" conditions and a priori reasons out there explaining the effectiveness of organisations (Ashraf & Kadir, 2012; Seny Kan et al., 2015; Akpor-Robaro, 2018). As contributions to these debates, there have been growing calls for understanding social phenomena using frameworks that advance a local perspective rather than universal conceptualisation (Rousseau & Fried, 2001; Chabal, 2009; Johns, 2018). This means, for instance, using theories that strive for genuinely African perspectives, for example understanding local factors relevant to solving African business management challenges. Invariably, other research disciplines, such as politics and anthropology, appear to follow the same trend in advocating for the increased use of locally developed concepts as a means of understanding social realities.

The utility of using locally developed concepts as a means of solving African business management challenges is embodied in the term phronesis, an Aristotelian term translated to mean practical wisdom or contextual case-based knowledge (Eikeland, 2014). According to Christensen and Raynor (2003), locally developed concepts and theories are circumstance contingent, in other words, they make explicit the conditions and circumstances in which phenomena occur. As such, locally developed concepts not only define what causes what and why, but also how the causal mechanism produces different outcomes in different situations and contexts.

Despite the seeming need for locally developed concepts, there is a general scarcity of literature on organisational antecedents associated with the effectiveness of organisations from a developing country's point of view (Hoskisson et al., 2000; Jackson, 2004; Oosthuizen, 2005). The bulk of existent literature on the effectiveness of organisations is based on the developed countries' perspectives, especially that of continental Europe, Japan and the United States of America. A few scholars who have investigated some aspects of organisational management from an African perspective, for instance (Nzelibe,1986; Mangaliso, 2001; Mbigi, 2002; Pietersen, 2005, Nwagbara, 2011; Nkomo, 2015) have noted sufficient differences in the organisational behaviours of African and Western organisations. The significant point of difference appears to reside in the cultural and social milieu (Akotia, 2006; Hofstede, 2006; Inyang, 2008). For instance, Oghojafor et al. (2012) stated that "Western management theories stop at the cultural boundary of each nation". It is for this reason that the lack of empirical data on organisational antecedents associated with effective organisations from a developing country's point of view has several implications. For instance, those teaching, consulting and leading African organisations encounter problems in pinpointing the preeminent antecedents associated with the effectiveness of organisations. In as much as there is a general belief that the developing world should move towards and become more like the developed world, developing organisational perspectives from the viewpoints of the developing countries themselves is worthwhile.

Considering the unique and complex attributes of African environments, for instance, home to one billion people in 54 independent countries with plentiful business opportunities in agriculture, retail, banking, natural resources, information and communications technology, and infrastructure, filling the gaps in differences in context and lack of literature are pertinent (Chironga et al., 2011; Parboteeah et al., 2014; Walsh, 2015). The increasing number of multinational companies (MNCs) from Asia, Europe and North America entering African markets necessitates a fine-grained understanding of the country's operating context (Hoskisson et al., 2013). For instance, Chinese companies see Africa as a haven for opportunity due to the continent's wealth in natural resources (Parboteeah et al., 2014). According to Jackson (2004) and Boamah (2003), foreign direct investment (FDI) is a major stimulus to economic growth on the African continent. In Namibia, for instance, FDI is viewed as a fruitful means for alleviating poor socio-economic conditions (Melber, 2010), stimulating rapid economic growth and setting up companies to manufacture goods locally (Boamah, 2003).

In light of the foregoing, the objectives of this study were twofold: First, to discover new insights that elucidate the leading organisational antecedents associated with the effectiveness of organisations in a developing country context and second, to highlight contextual variables that alter understanding about organisational antecedents in a developing country context.

 

2. LITERATURE REVIEW

Researchers have been discussing antecedents associated with the effectiveness of organisations from the divergence, universality, convergence, and situational perspectives. Proponents of the divergence perspective argued that cultural differences between societies, such as those identified by Seny Kan et al. (2015) and Hofstede (2006) and others, make it difficult for the universality stance to apply in organisations around the world. Accordingly, cross-cultural researchers are said to believe that there is no such thing as a universal theory of management (Akpor-Robaro, 2018). In sharp contrast, those with universal nuances believe that culture does not limit the applicability of management theories nor that there are certain similar universal antecedents within organisations in different contexts of the world (Gutterman, 2017). According to the convergence perspective, universal management theories and practices may not be applicable in all contexts because of technical and economic difficulties rather than cultural constraints (Oghojafor et al., 2012). Situational or contingency theorists, as opposed to universalists, consider different situational factors, such as the manager's personality, the firms' ownership and sector (i.e. private or public), and their hierarchy, as the main determinants of the effectiveness of organisations (Hafsi & Farashahi, 2005; Oghojafor et al., 2012). Due to differing perspectives, as evident from the above viewpoints, several scholars, such as Rousseau & Fried (2001), Chabal (2009), and Johns (2018), have been suggesting that developing organisational antecedents from a local context might be appropriate therapy to the improved understanding of the effectiveness of organisations.

2.1 The need for developing contextual and local organisational antecedents

In its broadest sense, the phrase locally developed organisational antecedents refer to frameworks that advocate for developing and using environment-specific concepts (rather than generic conceptualisations) as departure points for an improved understanding of social realities within the context of the organisation (Rousseau & Fried, 2001; Chabal, 2009; Johns, 2018). In other words, locally developed concepts can serve as practical wisdom and contextual case-based knowledge that can result in a better understanding of social phenomena, in this case, the effectiveness of organisations. As used in this article, the proposition is that organisational antecedents developed from a Namibian context can contribute to the improved understanding of the effectiveness of organisations in Namibia much better than applying generic organisational antecedent conceptualisations.

2.2 Effectiveness of organisations

Business organisations are entities set up for a purpose and, therefore, instruments of intended purposes (Nwadukwe & Court, 2012). Hence, the efficiency with which organisations achieve their intended purposes and outcomes compared to actual results or outputs is distilled in the notion of organisational effectiveness. The concept of the effectiveness of organisations resides in the notion of organisational effectiveness. Organisational effectiveness comprises processes, activities and practices through which organisations achieve their intended objectives and outcomes through a range of variables at the micro (employee behaviour, leadership styles, organisational strategy and structure) and macro level (industry, technology and socio-political environments) (Ojo, 2014; Alsharoa et al., 2017; Ibidunni et al., 2018).

Scholars often agree that organisational effectiveness is a broad, multi-dimensional and enigmatic construct (Cameron, 1986; Ashraf & Kadir, 2012; Zoogah et al., 2015). Despite its enigmatic nature, multiple measures exist and are routinely used to assess the effectiveness of organisations. Such measures relate to criteria used to analyse and interpret the extent to which organisations are effective in relation to intended goals. To date, much of the academic literature holds a view that the effectiveness of organisations is evidenced through objective accounting measures such as cash flow trends, market share, profits, return on assets, return on equity, return on investment, return on net assets, sales growth, earnings per share, beta-coefficient and share price (Ibidunni et al., 2014). These measures are thought to be the primary evidence of the effectiveness of organisations and are the most commonly and readily available. Other measures include reputation rankings by asking well-informed respondents, balanced scorecards and survivorship (Richard et al., 2009). Literature sources agree that it is theoretically sound to use multiple measures, such as the triple bottom line (TBL) approach of economic, social and environmental dimensions, to measure the effectiveness of organisations (Pandya & Srivastava, 2017).

Over the years, business management philosophers and practitioners have attempted to distil organisational antecedents associated with the effectiveness of organisations into several categories. These antecedents can be categorised into higher-level indicators that espouse either a voluntaristic stance (uses micro-level analysis) or a deterministic stance (uses macro-level analysis) (Lakshman, 2012). In this regard, Astley et al. (1983) explicated the voluntaristic stance as one in which individuals and their organisations are autonomous, proactive and self-directing agents. On the other hand, the deterministic stance suggests that individuals and their organisations are not autonomous and self-directed but dependent on the structural arrangements of the environment. A deterministic stance argues that organisations are embedded in their environments and, accordingly, external factors have more explanatory power than firm-level factors. Frameworks using micro-level analysis, or using single organisations as the unit of analysis, assume that the causes of effectiveness are internal to the organisation. Alternatively, macro-level analysis, which focuses on the population of organisations, attributes effectiveness to factors that are external and out of the control of the organisation (Lakshman, 2012).

The foregoing perspectives have further been distilled into prominent models to indicate the effectiveness of organisations. These comprise of the following: Firstly, the contingency model that propagates a fit between a set of contingencies, such as a group of organisational antecedents related to structure, people, technology, strategy and culture (Deng & Smyth, 2014; Chinoperekweyi, 2019). Some of the specific organisational antecedents frequently cited as examples within the contingency models include well-defined organisational vision, mission and purpose, the type, and design, of organisational structures, well-functioning internal systems and processes, vertical and horizontal communication flows, the type of organisational culture and individual behaviours (Buford, 2006; Ekwoaba et al., 2015). Secondly, the population ecology model posits that organisations which survive are those that respond appropriately to their environment, in other words, indicating that effectiveness has to do with contextual factors, such as industry variables and political dynamics (Hannan & Freeman, 1977). Variables associated with judicial systems, polity, rule of law, private property rights, cultural norms and kinship patterns are connected to population ecology models (Zoogah et al., 2015).

Thirdly, the institutional theory model holds the central view that organisations are shaped by the institutional environment and the social, political and economic systems that surround them (Lakshman, 2012). Thus, explaining that effectiveness is a function of specifically identifying institutional factors, such as governance and basic management principles as well as regulations and markets, that interact not only with each other but also with resources and capabilities at industry and firm levels to influence organisational effectiveness (Zoogah et al., 2015). Examples of organisational variables in institutional theory models include good corporate governance aspects such as board composition, recruitment processes for senior management and the board, and the use of information technology as an enabler for strategy implementation (Institute of Directors in Southern Africa, (IODSA) 2016).

Fourthly, the resource-based models propagate the role of resources and capabilities as drivers for the effectiveness of organisations, meaning effectiveness is a function of harnessing resources effectively (Parboteeah et al., 2014; Yu-Ting et al., 2016; Davis & Simpson, 2017; Kiiza & Basheka, 2018). Examples of variables in the resource-based models include people recruitment and selection procedures, training and development, performance management and employee retention, as well as adequate financial and physical resources (Buford, 2006; Zoogah et al., 2015). Fifthly, the psychological models provide insights into why people act as they do in the context of work and include theories related to motivation, reciprocity, positivity and group belonging. For instance, factors related to insufficient rewards and poor leadership in African environments can serve as examples of organisational factors associated with the psychological models (Chabal, 2009). Finally, the historical models suggest that the effectiveness of organisations, especially in African organisations, depends on the extent to which colonial practices are reshaped or transformed mind-sets decolonised and geared towards effective behaviour after political independence (Zoogah et al., 2015). Examples of variables in the historical models include dysfunctional African cultures such as high-power distance relationships, highly centralised and bureaucratic systems, internal wrangling taking up much time, intuition rather than formal objective data analysis guiding decision making and the perception that knowledge rests with seniors (Akotia, 2006)

 

3. RESEARCH DESIGN AND METHODOLOGY

The research design and methodology section provides a summary of how the research was planned and carried out in this study. It covers the research approach and strategy as well as research methodology, broken down into study population, sample size, sampling techniques, data collection and analysis. These aspects are discussed next:

3.1 Research approach and strategy

Several scholars have pointed out that research designs need to be chosen to suit the particular location in which the research is being conducted (Rousseau & Fried, 2001; Akpor-Robaro, 2018; Johns, 2018). It has been stated that in order to fit the conditions of a particular location, research instruments must take into account social and institutional factors, contextual characteristics, resource constraints and cultural traits. Despite the foregoing exhortations, Africa-focused studies on various spheres of organisational management are few compared to almost any other region in the world (Nkomo, 2015). This means that organisational antecedents associated with the effectiveness of organisations are relatively non-existent within the developing country context. Relevant to a local context in Namibia, a priori list of locally developed organisational antecedents associated with the effectiveness of organisations is not available. Such antecedents need to be developed by applying an inductive research approach in which identifying the organisational antecedents is a product of an active joint venture between the researcher and organisational members (Creswell, 2014).

In light of the foregoing, this study was based on an interpretivist research paradigm in line with familiar features of qualitative research design, as described by Eisenhardt (1989), and other qualitative researchers (Glaser & Strauss, 1967; Lincoln & Guba, 1985; Coffey & Atkinson, 1996; Bogdan & Biklen, 1998; Charmaz, 2006; Silverman, 2006; Creswell, 2014 ). In general, the study applied typical inductive (interpretive) reasoning as an iterative theory refinement tool to identify organisational antecedent patterns and trends that can serve as practical wisdom for the improved understanding of effective organisations in Namibia. As a research strategy, the study made use of some features of multiple case studies to collect and analyse data.

3.2 Study population

A list comprising 622 companies that had submitted annual affirmative action reports to the Employment Equity Commission (EEC) during the financial year ended 31 March 2008 was used as a proxy of business organisations in Namibia. The EEC is a Namibian statutory body established through the Affirmative Action Employment Act No. 29 of 1998 (Republic of Namibia, 1998). The main objective of the EEC is to redress what is referred to as the conditions of disadvantage in employment arising from past discriminatory laws and practices experienced by persons in designated groups (Republic of Namibia, 1998). In achieving these statutory provisions, the EEC requires that all Namibian companies which employ more than 23 persons annually submit affirmative action reports and other employment data. Failure to submit such reports is a contravention of the law. For this reason, all bona fide Namibian business organisations ought to register with the EEC. Therefore, the EEC list was considered an appropriate proxy of the Namibian organisations.

3.3 Sample size

The list of organisations obtained from the EEC comprised all types of organisations. Two preliminary selection criteria had to be applied. Firstly, only organisations from the Namibian tertiary industry were eligible. Secondly, only those organisations in the Namibian tertiary industry that employ more than 200 permanent people were selected. In the end, 18 organisations out of the 622 Namibian organisations were selected as a study sample. The Namibian tertiary industry is a major segment of the Namibian economy concerned with the provision of a wide variety of personal and business services (intangible goods) rather than tangible products. It is the biggest economic sector of the Namibian economy. The Namibian tertiary industry comprises several sub-industries. These sub-industries include the wholesale and retail trade, tourism, financial services, transport and communication services, real estate and business services (Republic of Namibia, 2008).

In order to categorise the 18 organisations into the categories of effective or less effective organisations, five measures, based on their relative importance to stakeholders in the Namibian context, were used to score and rank organisations. These measures included profitability, return on equity (ROE), employment creation, tax payments and ethical behaviour. By applying these criteria, 12 organisations were selected as effective organisations and six (6) as less effective. The organisations that were selected comprised of two effective organisations and one less effective organisation per each of the six sub-sectors of the Namibian tertiary industry. In general, organisations that ended first and last in the respective six tertiary industry sub-sectors were adjudicated as either effective or less effective.

3.4 Sampling techniques

Since specific criteria informed the selection of organisations, the selection of the study participants was based on purposive sampling techniques. Purposive sampling, also known as judgment, selective or subjective sampling, is a non-probability sampling method in which the researcher relies on their own judgment informed by the purpose of the study to select members of a population to participate in the study (Creswell, 2014). Three research participants were selected for each of the 18 company cases. In each organisation, the board chairperson, the CEO and a non-managerial employee were selected as research participants. The diverse participants were necessary to enable a wide range of insights to emerge. The board chairperson and CEO were selected because they were considered elites and ultra-elites in their organisations - Elites refer to people who have significant decision-making powers within or outside the organisation. A non-managerial employee, with the potential to provide rich descriptions based on their years of work experience, was selected for purposes of triangulating views obtained from senior management.

3.5 Data collection

From September 2011 to April 2014, a total of 54 interviews, which comprised three (3) interviews (Board, CEO and non-managerial employee) per each organisation, were conducted with research participants in the field. The interviews consisted of probing questions and semi-structured questions. The first part consisted of probing and non-directive questions aimed at soliciting spontaneous answers. The second part of the interviews consisted of semi-structured questions aimed at soliciting Namibia-specific organisational practices, activities and behaviours.

Ethical clearance was obtained from the University to conduct the research. On average, each interview lasted about one (1) hour. Written permission to conduct the study was obtained from the respective chief executive officers (CEOs) and managing directors (MDs) of the selected companies before entering the research setting, and permission was obtained to publish the results. The researcher had sent the study participants a letter in which they were formally invited to participate in the study. The letter explained the purpose of the study in broad terms and invited the participants to an interview. At the commencement of each interview, the participant was welcomed, the purpose of the interview was explained, and the interview process was outlined. Anonymity was highlighted, and participants were allowed to ask questions, which were dealt with immediately.

The interviewing strategy centred on asking questions that circumvented self-reporting and "halo effect" answers. For example, questions such as "Which organisational antecedents do you believe contributed to the effectiveness of your organisation" were avoided in favour of questions that aimed at untangling antecedents that contributed to the effectiveness state of the organisation as perceived from the participant's point of view. These included questions such as "from your perspective, which management practices are currently used in your organisation to achieve intended organisational objectives?" Halo-effect is the common human inclination to make inferences about vague, ambiguous and hidden information based on tangible and known information (Rosenzweig, 2007).

3.6 Data analysis

The study collected and analysed data in a phased and reiterative approach and not as a once-off event. This meant that data were continuously collected and analysed until no new data, information, or categories emerged from the interview data. Initially, ten interviews were collected and analysed. This was followed by 26 interviews in the second round and, ultimately, 18 interviews in the final round. The phased approach in collecting and analysing data assisted in the continuous improvement of the research instrument (interview guide) as well as in the data coding and analytical processes. Some features of the strategies described by Schurink (2003), as analytic induction and thematic approach, were employed to analyse and narratively report data. This is in line with the theoretical framework of Strauss and Corbin (1998) on coding; line-by-line coding was used to code data. Data analysis in this study consisted of three phases. Phase 1 involved the collecting of 10 initial interviews, the first level reading and coding of data based on the initial interviews, and further collecting further 26 interviews. Phase 2 entailed deep comprehension of data from the 10 initial and subsequent 26 interviews. The final phase involved collecting and analysing 18 final interviews and importing all 54 interviews in Atlas.ti for easier electronic identification of recurrent patterns and trends. Frequent conversation topics, namely words and phrases regularly used by participants, were highlighted and interpreted as a basis for identifying organisational antecedents associated with the effectiveness of Namibian organisations.

 

4. FINDINGS AND DISCUSSION

By working through the data, 14 contingent themes were constructed as contextual case-based antecedents for an improved understanding of the effectiveness of organisations in Namibia. In addition, it became apparent that organisational antecedents associated with the effectiveness of organisations in Namibia fell into two broad categories. As per Table 1, the first category comprised antecedents that appeared to be dependent on the broader structural arrangements in the local operating context. As it will later become apparent, Table 1 highlights that a particular Namibian historical reality seems to be influencing organisational antecedents in the Namibian operating environment in a particular way. The second category constituted antecedents that seemed to be within the sphere of control of the organisation. Table 1 portrays the organisational antecedents identified to be associated with the effectiveness of organisations in Namibia.

The two categories of organisational antecedents associated with the effectiveness of organisations in Namibia are discussed below. The discussion is organised as follows: first, the antecedent identified is provided, followed by a brief description of the antecedent; then two or three quotes are provided which support the rootedness of the antecedent in data; and finally, the discussion ends with a short concluding and interpretive statement. The concluding statements are further elaborated under the final conclusion, theoretical contributions and management implications sections. An attempt is made to provide a "hearts and minds" account of the study participants; hence, direct quotes are quoted verbatim.

4.1 Antecedents dependent on structural arrangements in the local operating context

Antecedents dependent on structural arrangements in the local operating context refer to context-specific realities in the Namibian environment that affect the effectiveness of organisations. Four organisational antecedents, namely political influences, risks of expressing opinions, scarcity of skills and experience and size of economy and population, were identified as antecedents dependent on structural arrangements in the local operating context of Namibia. The antecedents dependent on structural arrangements in the Namibian environment reinforced the deterministic stance that suggests that individuals and their organisations are not autonomous and self-directed but dependent on the structural arrangements of the environment (Astley et al., 1983; Lakshman, 2012)

4.1.1 Political influences

Politics seem to have spilled over into the business management domain in Namibia. Due to the country's relatively recent political independence in 1990, politics ostensibly influences all spheres of life. Political nuances seem to be destroying the balance between accountability and autonomy required for an effective principal-agent principle as a standard of effective business management. In the participants' own voices, political influences were perceived as follows:

"Political figures must be avoided. I know we cannot get that right all the time but really they must be kept to a bare minimum. Because they have a political constituency to respond to. Corporate governance is strictly about doing the right thing at the right time for the right reasons and it is about fairness and transparency" (Management participant).

"Because you are not only dealing according to the best business principles, but you also need to consider the political and social environment that you are operating in, so it is even more difficult and more challenging" (Management participant).

The institutional theory model holds the central view that organisations are shaped by the environment that surrounds them (Lakshman, 2012). This implies that politics are also likely to affect business management. However, if Namibian organisations have to be effective, ways should be found, as with the case of companies in developed economies such as Japan, the United States of America and continental Europe, to eschew politics from eroding good business management practices and corporate governance principles. Political influence is a specific local antecedent in Namibia, unlike other contexts in which systems and practices appear to have been institutionalised, and a clear separation between politics and business management exists.

4.1.2 Fear of expressing opinions

Linked to the theme of political influences is the theme of fear of expressing opinions by the general Namibian populace. The fear of expressing opinions is due to perceived or real risks in doing so. Because of Namibia's small population, many people actually know each other. As a result, there might be a fear of expressing opinions because of the possibility of easily being identifiable. Yet, bottled up in people's hearts and minds might be valuable ideas that could unlock organisational efficiencies, but these ideas remain unspoken and hidden, which could negatively affect organisational performance.

The below quotes from data epitomise the possible risks of expressing opinions:

"You see, I think one of the biggest differences is fearfulness and holding back; not being open to have honest debates" (Employee participant).

"I may not say it in front of you out of fear that I might lose my job" (Employee participant).

The antecedent fear of expressing opinions seems unique to the circumstances of Namibia, hence, a contingent organisational antecedent. The uniqueness is a result of Namibia's small population, which increases the vulnerability of views expressed as being easily identifiable.

4.1.3 Scarcity of skills and experience

It appears that the levels of human, educational and social development in Namibia are low compared to, for instance, the developed countries classified as high on human and social indexes. Low human and social development levels could have an adverse impact on the effectiveness of organisations. There seems to be a general lack of appropriate skills and work experience in Namibia. For instance, people with no formal education, or those with junior and secondary educational levels, constitute 81 percent of Namibia's employed population, whereas those with a certificate or degree constitute 15 percent, and Master and PhD education constitute one percent (Namibia Statistics Agency (NSA) 2016).

From the data, it is evident that the lack of adequate skills and experience in the country was perceived as follows:

"We need to realise that we are working in a country where there is an acute shortage of skills. And therefore, one will not always find the right mix or the optimum mix of skills that you would want to employ or attract. That is why it becomes so critical that you as management or the chief executive or the managing director understand exactly the short comings or the development needs of his or her subordinates" (Management participant).

"I think in various levels there are a lack of depth of skills in Namibia, especially on senior executive level, because skills come in as a function of experience, I am not talking about technical skills, for those you have to learn, but when you talk about experience it is a function of time and a function of mistakes that you have made in the past, you do not pick up experience by doing things right. It is the number of times that you failed that makes you grow" (Management participant).

The role of human resources and management capabilities as drivers of organisational effectiveness is widely acknowledged in extant literature (Parboteeah et al., 2014; Yu-Ting et al., 2016; Davis & Simpson, 2017; Kiiza & Basheka, 2018). However, the impact of lack of skills and experience in Namibia can have negative consequences in the long-term and requires particular attention in the country.

4.1.4 The size of the economy and population

Due to the small size of the Namibian economy and population, negative tendencies observed around the globe, such as anti-competitive practices, price fixing, marketing sharing cartel agreements and other vertical restraints, might also negatively impact the effectiveness of organisations in Namibia. Organisations may do as much as possible to be effective, but if the market is limited, the effect on organisational outcomes can be adverse.

The following quotes from data solidify the seemingly apparent influence of the size of the economy and population on the effectiveness of organisations:

"In this town in Windhoek, and in this country Namibia, the only competition that you have, that maybe somebody else is doing business in this country is sitting in Swakopmund, three hundred and sixty kilometres away from here. They do not care if they do not treat you right because you will not drive to Swakopmund to get your product, you still go to them that's why Namibian customer service is that bad" (Board participant).

"Do we have as many as a place like Germany or America would have? I do not think so and the reason for that is that quite simple, if we have a look at our economic liberation on the African continent, it is much later than what happened in Europe and America, and we must therefore expect few good managers, leaders and business men" (Management participant).

The lack of competition and the small size of the Namibian economy relative to bigger economies has several implications. First, the prices for goods and services in the country may become expensive. Secondly, the government becomes the major role player in the economy on which business organisations depend for survival due to the lack of vibrant competition. Government tenders become significant in the economy, and, as a consequence, organisational outcomes depend on being in the "good books" of the government. Finally, the small size of the Namibian economy implies that most organisations operating in Namibia tend to have head offices situated elsewhere where major decisions on business strategies are made. As a result, local branches merely have to follow suit in implementing the decisions made elsewhere, which means that they do not have a determining say in the organisation's performance and culture.

4.2 Antecedents within the sphere of control of the organisation

Antecedents that seem to be within the sphere of control of the organisation refer to key organisational antecedents that can be relatively controlled or mitigated within the organisation. The study identified the following 10 themes: recruitment practices and activities, human fundamentals in the organisation, managerial patience, good indigenous knowledge systems and western knowledge systems, social investment and community presence, active and transparent communication, fit-for-purpose human capital development, performance management and reward systems, beneficial union relationships, and ethical and moral leadership.

4.2.1 Recruitment practices and activities

Careful recruitment practices and activities refer to recruitment processes that guard against negative tendencies such as political interferences, favouritism, nepotism and corruption that erode the quality of people recruited and retained in the organisation.

Participants perceived careful recruitment processes and activities as follows:

"Where do our problems originate from? It is usually management. What type of board has been appointed? Was it a political appointment? Was it based on ethnicity or was it actually truly a board made up of skilled people?" (Employee participant).

"Unless and until you recruit the right people who you know understands the concept of what you really want to achieve, you are not going anywhere" (Board participant).

Existing literature acknowledges the significant role of resources and human capabilities, including correct recruitment procedures, as inevitable practices associated with effective organisations (Parboteeah et al., 2014; Yu-Ting et al., 2016; Davis & Simpson, 2017; Kiiza & Basheka, 2018). However, new insights into the unique Namibian-specific contextual influences, especially political interferences and lack of appropriate skills that seem to be affecting merit-based recruitment practices and processes, do not always appear to be explicit in existing organisational development and design theories. The net effects of the seemingly compromised recruitment practices and processes are low-level organisational outputs and dysfunctional organisational cultures, which negate the effectiveness of organisations.

4.2.2 Human fundamentals in the organisation

The ability to engage the human fundamentals (for example, fostering abilities to work well with other organisational members) in the organisation refers to a concerted organisational effort to be "human" to others in the organisation by, inter alia, creating friendly and fitting workplaces in which people are fully engaged and can unleash their full potential.

The following quotes support this theme:

"If you have all the management capabilities, but you do not have the capability to work with the hearts of people, you will not make it. People must believe in you, they must see that you are sincere and that you are not playing games, you must be genuine" (Management participant).

"He is a very good person to work for. I should have got other numerous jobs at other places, but he is a very good person to work for. He is humane, you know, he is strict but never disrespectful. I worked for many bosses before who shout at you and curse you. He just has his way of strictness but he will always be a gentleman to you. You know, it says a lot of that man's character" (Management participant).

As highlighted under Section 4.2.1 (Table 1), existing literature acknowledges the role of human resources as a critical organisational aspect in business management. However, this study emphasises a contextual insight into a unique Namibian environment-specific feature, namely recent colonial history and past discriminatory laws and practices that might have contributed to mistrust and complicated relationships between people and thus make people engagement tense and sensitive. The effects of colonial history and past discriminatory laws that might have deprived people of their human dignity and how that aspect can be corrected are often not emphasised in the mainstream organisational management literature.

4.2.3 Active and transparent communication

Active and transparent communication refers to the extent to which the organisation entrenches authentic and transparent communication in the organisation to, in particular, accelerate strategy execution.

From the participants' perspective, this theme is perceived in data as follows:

"He takes out a day, a whole, in fact 2 to 3 days. He meets people here in Windhoek and then for the rest of the regions he will meet them via video conferencing, because we have video conferencing facilities, but in addition to that he has also made it a point that on annual basis he has got what we call road shows. He goes throughout the country to see for himself what is actually happening, speak to the people on the ground but at the same time also speak to the communities and other national and regional leaders in the community to establish what their needs are" (Board participant).

"I have a unique one that I am just implementing here in Namibia, if you are operating in an emerging market, you must understand that you need to engage with all the stakeholders, and that means you need to engage with the Unions whether you like them or not" (Management participant).

The ability to communicate is a universal activity and practice. The extent to which leadership entrenches highly interactive communication practices to enhance employee and organisational performance is commonly acknowledged in extant literature (Chabal, 2009; Zoogah et al., 2015). However, it is a unique and non-negotiable local antecedent in the Namibian context, as in any other country, because of recent colonial history and past discriminatory laws and practices, as referred to in the preceding discussion.

4.2.4 Fit-for-purpose human capital development

Fit-for-purpose human capital development refers to the extent to which a company implements customised training and development programmes informed by managerial clarity on the strategic intent and observed employee performance shortcomings. The participants perceived implementing fit-for-purpose human capital development in the following manner:

"No, firstly every month we have a "own our world" training, and we take about 64 people through the training and you can imagine that in the last 7 to 8 eight years, we have taken 800 people through that, so we really teach the purpose and values" (Management participant).

"We do our own in-house training where they tap from certain specialised departments such as Internal auditing or finance, say there is a course on management or basic administration, accounting, debits and credits, one of my Auditors or myself can go there and do the training" (Employee participant).

Unlike the developed economies, such as the United States of America, Japan and continental Europe, which are classified as high on the human development index, Namibia is classified as a medium on the human development index (World Economic Forum (WEF) 2015:46-50). As a result, there is a need for intensified efforts to develop and implement fit-for-purpose human capital and intellectual development programmes in a manner and with processes different from other contexts.

4.2.5 Ethical and moral leadership

Ethical and moral leadership refers to the extent to which the organisation emphasises ethical and moral leadership as a departure point in the organisation. The participants emphasised the importance of ethical conduct as follows:

"Because, for example, it might be a good business, but if you have got wrong people, that business might fall down" (Employee participant).

"For example, you can be a good company, your financials can look good, but if you achieve those financial performances through illegal business which is unethical. And, that is where the ethical part comes in, because whatever you do should be in line with corporate governance, the social aspect, because you are serving people and people have got a certain social obligation or they expect a certain social obligation from an organisation" (Employee participant).

Existing literature often highlights the extent to which the organisation emphasises ethical and moral leadership as a departure point in the organisation's quest for effectiveness (Lakshman, 2012; Zoogah et al., 2015; IODSA, 2016). Considering particular Namibian contextual realities, it should not just be about generic ethical and moral leadership education and training programmes but about finding ways of instilling ethical and moral leadership in the hearts of people.

4.2.6 Managerial patience

Managerial patience, namely, the ability to persevere, and achieve organisational efficiencies, despite setbacks and changing conditions in the operating context, was emphasised by the participants as instrumental to organisational effectiveness. From the study data, it is clear that interviewees perceived managerial patience as follows:

"If you are going to a developing market and you find a lack of skills, you cannot turn unskilled people into skilled people overnight, most of the times as unfortunately as evident, throughout Africa at the moment, you get strikes and upheavals by people and there is a lot of anxiety and people being unhappy about things" (Management participant).

"I can only think of patience. I think in terms of management, one need to be a lot more geared to the human element, certainly in Namibia, than you would find in Germany. There if somebody does not perform, he gets fired, finish, because I can find a lot of qualified and skilled people out there" (Board participant).

Researchers in a variety of disciplines have emphasised the concept of resilience, which refers to the capability of a strained body to recover from or adjust to external changes (Watanabe et al., 2004). However, in the context of this study, managerial patience refers to particular Namibian realities, such as genocidal and liberation wars, colonial legacies, limited resources, poor socio-economic conditions, and scarcity of skills, necessitating managerial patience to be more pronounced than in other contexts without these realities.

4.2.7 Social investment and community presence

Active social investment and community presence refer to the extent to which the organisation aligns its social investment agenda to meaningfully impact community development and societal transformation and not necessarily only be preoccupied with financial performance. In the participants' own voices, the theme of active social investment and community presence was perceived as follows:

"We therefore do plough back into the community we have a professional services department that gives public lectures to upcoming farmers, communal farmers, you pay a N$50 and then you get your lunch and all the advice, they show you how to do various things" (Board participant).

"For sure, if you have a look at social investment, the Bank is committed to dedicate a certain percentage of yearly profit after tax for social work, primarily on three pillars that is health, job creation and education" (Management participant).

Research, such as that by House et al. (2004) and Hofstede (2006), has cited African cultures to be collectivistic, unlike Western countries with individualistic cultures. In agreement with the foregoing views, this study has identified active social investment and community presence as local organisational antecedents vital in Namibia.

4.2.8 Beneficial union relationships

Beneficial union relationships refer to the extent to which the organisation entrenches good relationships with the union as described by the participants:

"We have a very good relationship, because we introduced and encouraged our staff to form a Union, because we wanted a platform where we could engage them as a collective unit" (Board participant).

"Whether you like it or not, in Namibia, they (Union) are a necessary part of the social contract that we have so, yes, there are times that one feels that they could have behaved differently, but by and large I must say that Unions give direction and they make valuable input in the way we run this company, sometimes we overlook the needs of our people, sometimes when you are sitting in big conferences, travelling all over the world, you get excited and taken over by what you see there, you just want to come running with it, but you forget that you have people that must help you run, and then the Union brings you back to that reality" (Management participant).

The findings of the study seem to be in accord with stakeholder relations theories of minimal satisfaction of all stakeholders' interests in the organisation (Ashraf & Kadir, 2012). However, the recent colonial history as well as past discriminatory laws and practices, magnify the significance and role of unions in Namibia. Accordingly, unions are part and parcel of the organisational efficiency conundrum.

4.2.9 Good indigenous knowledge systems and western knowledge systems

The extent to which an organisation blends the indigenous knowledge practices and systems and the Western knowledge systems in business paradigms and practices refers to adopting inclusivity rather than a "my-approach-is-better-than-yours" approach. Interviewees emphasised the importance of harnessing both good indigenous knowledge systems and Western knowledge systems as follows:

"But I say you cannot divorce business principles from life or how we grew up or how we managed our relationships or children, from basic business principles, and I think that is an important thing to remember, especially in developing countries; our families are much closer than in Europe and in the United States of America" (Management participant).

"Well, look I am European; I am from Belgium originally. I came here with the European Commission and I fell in love with the country. I met a few other Belgians. The group is owned by Belgians. So, all the money that was invested in lodges is also European money that came in. So we see how things are run on the other side and then try to bring the experience over here" (Board participant).

Effective management has to hinge on the successful harnessing and harmonising of both indigenous and traditional corporate cultures. Unfortunately, the emphasis up to now has been on suppressing indigenous systems rather than appreciating their added value (Mangaliso, 2001). Organisational effectiveness models should be rooted in the African culture, value system and beliefs to provide a practical way for the efficient and effective running of organisations in Africa, with its global competitiveness (Inyang, 2008).

4.2.10 Performance management and reward systems

The theme of effective performance management and reward systems refers to the extent to which the organisation implements effective performance management systems and practices, which allow for identifying employee needs and fair rewards. The theme of effective performance management and reward systems were perceived in the data as follows:

"We implemented it about 5 years ago, we designed a system, we designed the tool that we used to capture the performance agreements or the review, we picked that there was a lot of resistance from the employees, but we gained a lot of support from management and more especially from the Board, because it was now an instruction from the Board that it must be implemented, and they had a carrot like they said if you are not implementing it forget about the reward, and I think that is how people started buying in" (Management participant).

'Sometimes you do things that are outside the normal accepted theories. Like people would say money is not a motivator, but when you come to the real world, then you would see even the most senior person in the organisation, if you say I will throw this carrot in front of you in terms of a bonus or whatever, you seem to get more commitment and more productivity and loyalty from that person" (Management participant).

Psychological models in business management literature provide insight into why people act as they do in the context of work and include theories related to motivation, reciprocity, positivity and group belonging (Zoogah et al., 2015). One of the well-known psychological models is Maslow's (1943) Hierarchy of Needs which suggests that people need in order of first, physiological needs (food, water, shelter, rest), then safety needs (security, safety), then belongingness and love (relationships, friends) and then esteem needs (prestige, accomplishment). With poor socio-economic conditions (low education and skills, high unemployment and poverty levels) in Namibia, basic needs take precedence over self-actualisation needs, as might be the case in developed economies. Financial rewards and benefits, such as good remuneration and benefits, profit-sharing schemes, company-sponsored holidays and study assistance schemes, seem to be vital organisational antecedents in the local context.

 

5. STUDY CONTRIBUTIONS

Organisational effectiveness is a broad, multi-dimensional and enigmatic construct. The difficulty in understanding this topic seems to be the tendency to treat it as a "one-size-fits-all" construct instead of perceiving it as a contextual manifestation. National contexts should be considered when assessing the effectiveness of organisations. This is not to argue that the clearly established universal management theories do not matter, but that contextual influences seem to form a critical base for comprehensively understanding the effectiveness of organisations as a whole.

5.1 Contributions to the context of the application

By identifying specific contextual antecedents (such as political interferences, fear of expressing opinions, scarcity of skills and experience, the size of the Namibian economy and population size), this study supports the debate that contextual influences play a greater role in the effectiveness of organisations than previously acknowledged.

5.2 Contributions to resource-based theories

The findings of the study, more especially careful recruitment practices and activities, ability to engage the human fundamentals in the organisation, entrench active and transparent communication and implement fit-for-purpose human capital development inclined towards theoretical contributions to resource-based theories. The premise of the resource-based theories is that people and their collective skills, abilities and experience are recognised as significant contributors to organisational performance and competitive advantage (Zoogah et al., 2015). The resource-based view suggests that the major part of the organisation's strength or weakness stems from the calibre of its human resources and the quality of its working relationships. In a resource-based view, the effectiveness of organisations is seen to depend more on the effective utilisation of human capital than physical capital (Liedong, 2017; Mishra & Maiko, 2017).

5.3 Contributions to good governance principles theories

The theme of ethical and moral leadership inclines towards theoretical contributions to good governance principles. The concept of good corporate governance principles refers to a system of rules, practices and processes, as set by the institution's board of directors, through which an organisation is directed and controlled (IODSA, 2016; NamCode, 2014). Considering particular Namibian historical realities (i.e. genocidal crimes, recent colonial history, discriminatory legislative practices and cultural diversity), it should not just be about generic ethical and moral leadership education and training programmes but about finding ways of instilling ethical and moral leadership in the hearts of people. This study contributes to good corporate governance principles by identifying a theme that speaks to the concept of virtuous leadership, ethical and moral leadership as bases for successful organisational management.

5.4 Contributions to organisational resilience theories

The theme of managerial patience suggests theoretical contributions to organisational resilience theories. Organisational resilience theories refer to the capability of a strained body to recover from or adjust to external shocks, the perseverance and toughness to emerge from devastating circumstances without losing hope (Watanabe et al., 2004). The development of the theme of managerial patience indicates distinguishing differences in the organisational management context of developed and developing countries. The organisational realities referred to in this study, such as lack of skills and political influences, might appear new to the context of developed economies. On the contrary, these aspects are daily observed realities in a developing country context and in Namibia in particular. From the foregoing viewpoint, this study contributes to the theory by identifying managerial patience as a foremost organisational antecedent that is helpful to business management in a developing country context. The study contributes to the existing body of knowledge by identifying a developing country-specific attribute, namely managerial patience, that might not be relevant in developed countries due to their level of social and economic development, which is in contrast to the daily-lived experiences and concrete realities in developing countries.

5.5 Contributions to stakeholder relations theories

The themes, active social investment and maintaining beneficial union relationships, incline towards theoretical contributions to stakeholder relations theories. In broad, stakeholder relations theories refer to the minimal satisfaction of interests of all the organisations' stakeholders (Ashraf & Kadir, 2012). The study identified active social investment and community presence as vital aspects in Namibia relative to developed countries. Within this context, the study contributes to the existing body of knowledge by suggesting an authentic and shared value approach between government, labour and business as appropriate in ensuring meaningful social and economic development that benefits the country. Meaningful social and economic development as well as societal transformation, might not be applicable in a developed country context due to the realities of high human and social development.

5.6 Contributions to the decolonisation of mind-set theories

The theme harnesses both good indigenous knowledge systems and Western knowledge systems and represents contributions to the decolonisation of mind-set theories. Underlying much of the arguments and rhetoric of decolonisation of mind is the assumption that a person, a nation or a state had, before colonisation, a recognisable and stable identity (Olusoji & Ogunkoya, 2015). As such, decolonisation seeks to rescue that identity and restore it to its original, authentic, pure ante-colonial mental state. Nevertheless, it is not an easy task to restore, for instance, an "African identity" and history that is mainly based on an oral tradition spanning over years to its original state. Consequently, less radical forms of decolonisation of the mind, such as some sort of acknowledgement of valuable elements in the systems of the coloniser and the colonised, are suggested. These types of decolonisation construct new mental frameworks by developing new hybrid systems from the systems of the coloniser and the colonised, such as harnessing both good indigenous knowledge systems and Western knowledge systems.

5.7 Contributions to psychological models

The theme of effective performance management and reward systems represent contributions to psychological models. Psychological models seek to explain the reasons why people behave as they do, provide insight into why people act as they do in the context of work, and include theories related to motivation, reciprocity, positivity and group belonging (Zoogah et al., 2015). The organisational behaviours espoused by employees in Namibia with poor socioeconomic conditions could be different from those of employees in developed economies with sophisticated processes, institutions and infrastructure. The aspect of financial rewards and benefits is a significant dynamic in this study which suggests that financial rewards, such as good remuneration and benefits, profit-sharing schemes, company-sponsored holidays and study assistance schemes, are vital. These rewards and benefits were also perceived by participants to be motivators relative to non-financial rewards. It might be due to the fact that with poor socio-economic conditions in Namibia, basic needs take precedence over self-actualisation needs, as in the case of developed economies.

 

6. CONCLUSIONS AND MANAGEMENT IMPLICATIONS

As an attempt to understand the local factors relevant to solving African business management challenges, this study proposed 14 contextual organisational antecedents as vital to the effectiveness of organisations in Namibia. There seem to be circumstance-contingent management practices and activities, unique from those typically cited in developed countries, that are influencing the effectiveness of organisations in Namibia. This viewpoint corroborates with the situational (contingency) theory of management that suggests that different situational factors, such as country-specific variables, leader and manager personality, the firm's ownership and sector (i.e. private or public), and their hierarchy, are the main determinants of the effectiveness of organisations. Despite Western and African environments and circumstances being greatly different in many ways, many of the theories which managers in Africa apply in their organisations have been built in the west under western environmental circumstances without sensitivity analysis of their suitability to other environmental circumstances. As such, the quest for workable theories for organisations in African contexts has resulted in a great deal of arguments, theorising, suggestions and propositions.

Instead of relying upon universal organisational antecedents that may not be applicable in certain environments, this article contributes to the body of knowledge by drawing the attention of the management of organisations to design circumstance-contingent (specific and tailor-made) antecedents to improve organisational efficiency. The findings of this study have implications for those teaching, consulting and leading Namibian organisations, in particular, and those in similar developing countries, in general, to be sensitive to context-specific realities. Rather than championing a universal and generic outlook on the effectiveness of organisations, sensitivity to context-specific realities, as key dynamics affecting the performance of organisations, is advised.

 

7. LIMITATIONS OF THE STUDY

The research was based on a study population of 622 Namibian organisations. As such, the main limitation of the study was incomplete and unavailable data to construct fully the organisational antecedents associated with effective organisations in Namibia. In addition, the study categorised companies into effective and less effective cases. Due to limited and unavailable data, accurate categorisation of companies into effective and ineffective organisations might have been compromised. Also, due to time and money constraints and the unavailability of data, this study was limited to medium and large organisations that employ more than 200 employees in the Namibian tertiary industry.

The non-parsimonious nature of Namibian organisations and the diversity of industries from which samples of organisations were selected were additional limitations. The Namibia tertiary industry characteristics are diverse. For instance, the six sub-industries in the Namibian tertiary industry do not have analogous features. In the same way, the characteristics and structure of companies are not easily comparable. This makes generalisations and comparisons of sub-industries somewhat difficult.

 

8. DIRECTIONS AND RECOMMENDATIONS FOR FUTURE RESEARCH

Future research could focus on further optimal ways of operationalising the 14 contextual case-based organisational antecedents identified in this study into testable hypotheses to investigate the relationships between the antecedents and the effectiveness of organisations in Namibia. There is also a further suggestion of empirically establishing ways how to contain the negative effects of politics and lack of adequate skills and work experience on effective organisational management in developing countries in general and Namibia in particular. In addition, employing quantitative research approaches, such as surveys, is suggested as areas for further research to robustly test the level of entrenchment of the ten core organisational practices and activities developed in this study in a larger sample of organisations.

 

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