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- Volume 10, Issue 1, 2007
South African Journal of Economic and Management Sciences - Volume 10, Issue 1, 2007
Volumes & issues
Volume 10, Issue 1, 2007
Societal power shifts and changing social identities in South Africa : workplace implications : managementAuthor Lize BooysenSource: South African Journal of Economic and Management Sciences 10, pp 1 –20 (2007)More Less
The enormous social, economic and political transformation South Africans have experienced especially over the past 12 years, since the systematic dismantling of apartheid in the era of social and economic reconstruction, has brought about numerous societal and social identity changes. Due to these changes in social identity, societal norms and power shifts, major changes are occurring in the workplace, and societal level identity crises and conflicts are increasingly spilling over into the workplace. This article unpacks these social identity changes and power shifts on the political, social, economic and management levels, by employing social identity theory, self-categorisation theory and embedded intergroup theory, and highlights some resultant workplace implications.
Developing a model to investigate the personal financial management knowledge of individuals : managementSource: South African Journal of Economic and Management Sciences 10, pp 21 –32 (2007)More Less
This article focuses on the development of a framework for investigating the personal financial management knowledge of individuals. Content analysis is used to derive the components included in the personal financial management requirements framework. The framework developed includes six components, namely basic concepts in personal finances, management of personal finances, risk management, future planning, investing in financial resources and miscellaneous factors. A qualitative validation process revealed that the framework indeed covers what the average South African citizen is required to know about personal financial planning. The real test of this framework will be to use it in developing an instrument to test individuals' knowledge of personal financial management. This process of empirically testing the framework, using such an instrument, warrants a separate article.
Perceptions on the of use of a corporate business incubator to enhance knowledge management at ESKOM : managementSource: South African Journal of Economic and Management Sciences 10, pp 33 –50 (2007)More Less
The knowledge economy impacts on the way enterprises should address their business requirements, forcing many of them to review the potential mechanisms they could employ to improve their competitive advantage. The business incubator approach is one such mechanism. This article explores the application of knowledge management, knowledge creation and innovation in a corporate incubator. It focuses on the process of knowledge management, to ensure that a culture and appropriate strategies conducive to enhancing knowledge creation are developed in an enterprise. Innovation as a strategic imperative is considered, as well as the challenge of driving it within an enterprise. The purpose of this empirical survey was to determine whether the corporate incubator model applied by Eskom conforms to the attributes of knowledge management, knowledge creation and innovation, and whether the synergies to be exploited amongst these disciplines can be harnessed to give Eskom a competitive advantage.
Source: South African Journal of Economic and Management Sciences 10, pp 51 –71 (2007)More Less
Diversity is an inevitable aspect of organisational life, which has to be deal with at one time or other. How employees perceive diversity impacts on their behaviour and therefore managing it is imperative. The objective of this study was to investigate perceptions among staff members at a tertiary institution in the Eastern Cape of diversity management. A further aim was to assist the institution in developing ways to improve diversity management. A diversity management questionnaire was administered to employees to determine perceptions. Results confirmed that employees perceived a small number of diversity-related problems to be present. Employees believed that the university understood the value of change and that they were in the non-discriminatory phase of evolution towards becoming multicultural. A follow-up study in this field is necessary.
Tax compliance burden for small, medium and micro establishments in the business services industry : managementSource: South African Journal of Economic and Management Sciences 10, pp 72 –88 (2007)More Less
The aim of this study is to determine whether the size of a business, classified as small, medium or micro establishment (SMME), has an impact on its management of the compliance burden placed on it by taxation laws. A survey was conducted amongst small, medium and micro establishments in the business services sector in Gauteng province, South Africa. The study finds that the majority of SMMEs in the business services sector outsource their tax responsibilities due to lack of skills and time. Also, the significance of taxation inputs for making business decisions and preferences for administrative relief measures varies according to the size of the organisation.
Measuring exchange market pressure in South Africa : an application of the Girton-Roper monetary model : economicsAuthor Emmanuel ZirambaSource: South African Journal of Economic and Management Sciences 10, pp 89 –98 (2007)More Less
The monetary approach to the balance of payments is based on the assumption of a fixed exchange rate, while the monetary approach to exchange rate determination is based on perfectly flexible exchange rate. Girton and Roper (1977) introduced another monetary model designed to capture the properties of the managed float, where the pressure on the external position of a country is absorbed by both a change in reserves and a change in the exchange rate. This model is called the Exchange Market Pressure model (EMP hereafter). Exchange market pressure is the sum of exchange rate depreciation and reserve outflows (scaled by base money). It summarises the flow of excess money supply in a managed exchange rate regime. This paper applies the monetary model of the EMP to the South African experience with floating exchange rate and managed float systems over the period 1970-1993. We show that the EMP model is superior to the traditional monetary approach, which uses either international reserves or exchange rate as a dependent variable. Regression results show that the hypothesised effects on the exchange market pressure are confirmed, with monetary variables having strongly significant impacts. We do not find evidence of the impact of domestic real income on EMP. The variable Q, which is included to determine whether EMP is independent of its composition, is insignificant. Diagnostic tests suggest that the model is well specified and the residuals pass the typical checking.
Determinants of foreign direct investment in Lesotho : evidence from co-integration and error correction modeling : economicsAuthor Malefa Rose MalefaneSource: South African Journal of Economic and Management Sciences 10, pp 99 –106 (2007)More Less
Over the past decade, Lesotho has recorded a substantial increase in levels of foreign direct investment (FDI) inflow, part of it prompted by trade privileges. Building on the extant literature, this study provides an empirical analysis of determinants of FDI in Lesotho. The study looks at how macroeconomic stability, regulatory frameworks, political stability and market size affect FDI. The evidence from this study shows that some of the foreign enterprises in Lesotho are there to serve a bigger South African market. Also, the country has benefited from a more export-oriented investment promotion strategy. Critical issues however remain that must be addressed if the country is to attract more FDI and retain existing investors. These issues pertain to bureaucratic red-tape, corruption and political instability.
Rational expectations and the effects of financial liberalization of price level and output : economicsAuthor Rangan GuptaSource: South African Journal of Economic and Management Sciences 10, pp 107 –115 (2007)More Less
This paper develops a generalized short-term model of a small open financially repressed economy, characterized by unorganized money markets, intermediate goods imports, capital mobility, flexible exchange rates and rational expectations, to analyze the price- and output-effects of financial liberalization. The analysis shows that financial deregulation, in the form of increased rate of interest on deposits and higher cash reserve requirements, unambiguously and unconditionally reduces domestic price level, but fails to affect output. Moreover, the result does not depend on the degree of capital mobility. The paper recommends that a small open developing economy should deregulate interest rates and tighten monetary policy if reducing inflation is a priority. Such a policy, however, requires the establishment of a flexible exchange rate regime.
Source: South African Journal of Economic and Management Sciences 10, pp 116 –129 (2007)More Less
Using a GARCH model the paper sought to test the hypothesis that price volatility of key Sub Saharan Africa primary commodity exports, have not changed over the past four decades. Whilst crude oil, aluminium, cocoa and six others have not experienced significant change in price volatility over the period, nine other major commodities recorded changes. Efforts need to be made to extensively diversify the portfolio of agricultural commodity exports by including new products of which price volatilities in the past decades have been reduced. This is crucial for countries that depend on up to three primary commodities for the bulk of their foreign exchange earnings. Other measures such as value addition can also help in reducing impacts of unfavourable price movements.
Source: South African Journal of Economic and Management Sciences 10, pp 130 –144 (2007)More Less
This paper provides a study of the theory and empirical evidence of intra-industry trade (IIT) and relates it specifically to South Africa's automobile industry. The automobile industry in South Africa is a key sector within the national economy and has experienced increased trade and foreign investment in recent years, and thus represents an important case study of IIT. In view of this, the paper proposes a methodology that may be used in future to assess the pattern and determinants of IIT between South Africa and its main trading partners in the automobile industry.
Source: South African Journal of Economic and Management Sciences 10, pp 145 –154 (2007)More Less
Following on five pilot studies on inflation credibility in South Africa aimed at the construction of inflation credibility barometers and a literature review of the international measurement of inflation perceptions, this paper reports the findings of a study on inflation credibility among 493 students at the University of Pretoria. Credibility barometers are reported for different genders, for Asians, blacks, coloureds and whites, and for students in different faculties. The main conclusions are that the inflation perceptions by the different genders in this study do not correspond with international experience in this regard; international use of inflation barometers will ensure comparability of inflation credibility; and that inflation-targeting countries should sample inflation credibility and calculate an inflation credibility barometer.
Special issue on : workplace diversity management, issues, controversies and practices : call for papersAuthor Stella M. NkomoSource: South African Journal of Economic and Management Sciences 10 (2007)More Less