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- Volume 10, Issue 4, 2007
South African Journal of Economic and Management Sciences - Volume 10, Issue 4, 2007
Volumes & issues
Volume 10, Issue 4, 2007
Source: South African Journal of Economic and Management Sciences 10 (2007)More Less
A central focus of strategic management research and practice has been the development of concepts, models and tools to guide effective market-based, competitive strategies. Today, however, strategists face mounting external pressures from increasingly mobile, influential, new media savvy and demanding stakeholders.
Accelerating the implementation of the clean development mechanism in South Africa : environmental and ecological economicsSource: South African Journal of Economic and Management Sciences 10, pp 395 –411 (2007)More Less
One of the responses to the threat of global warming is the Kyoto Protocol and the associated Clean Development Mechanism (CDM) to reduce greenhouse gases. South Africa is an ideal country for the implementation of industrial CDM projects, yet lags behind many other countries. This qualitative research determines the factors that cause South Africa to lag other developing countries in the implementation of industrial CDM projects and the interventions that will have the most impact on accelerating implementation. The research involved interviews with 30 experts involved in the South African CDM process. The results identify the factors perceived to be facilitating and inhibiting the use of CDM opportunities and a framework for CDM practitioners to develop an implementation strategy within South African industry is established.
The current orthodoxy in environmental economics : a review and a challenge : environmental and ecological economicsAuthor Anthony B. LumbySource: South African Journal of Economic and Management Sciences 10, pp 412 –422 (2007)More Less
Perhaps the most noticeable feature in the burgeoning literature devoted to environmental economics has been the primacy of the neo-classical model (or what is often referred to as the "market solution"). This strategy, embodying individual property rights and the use of the private discount rate, assumes that market signals will elicit satisfactory solutions to the problems of excessive resource depletion and pollution. It has been argued, however, that methodological problems have undermined the feasibility of the orthodox approach to environmental economics. Furthermore, it has been suggested that this approach is fundamentally anthropocentric in character and therefore unsuited to resolving problems which are seen to be essentially ecological in character. Accordingly, this paper seeks to review the neo-classical model of environmental economics and outlines the challenges posed by the alternative strategies of sustainable development and ecological economics, as well as some of the conceptual problems which still remain to be resolved.
The ecological and economic consequences of changing land use in the southern Drakensberg grasslands : environmental and ecological economicsSource: South African Journal of Economic and Management Sciences 10, pp 423 –441 (2007)More Less
The grassland biome of the southern Drakensberg region of South Africa is characterised by a relatively rich floral biodiversity, including a high level of endemics. Land use in the area was traditionally dominated by livestock ranching based mainly on indigenous grassland that conserved biodiversity to some degree. Currently, however, market demands and risk factors are shifting land use in the area to a matrix of beef, cropping, dairy and, in particular, plantation forestry. A spreadsheet model was constructed to assist understanding of how expected land-use conversion will in all likelihood influence the biodiversity, and, consequently, the total economic value (TEV) of the area. Six scenarios of increasing dairy and forestry intensification were modelled, incorporating biophysical and legal constraints to development. Results indicate that enhanced development is likely to have significant negative biodiversity impacts, including the reduction of the alpha diversity of the indigenous plants in the region, a diminished local invertebrate diversity and an increase in invasions. This could also jeopardise the long-term survival of the rare Wattled Crane and Oribi. Furthermore, while the direct-use value derived from agriculture and forestry increases with increasing development, its negative influence on the indirect value of water runoff, by far the greatest value of the area, is sufficient to potentially offset the benefits. Other major direct-use, indirect-use, option and existence values are also considered.
Source: South African Journal of Economic and Management Sciences 10, pp 442 –456 (2007)More Less
The travel cost method was used to estimate the economic recreational value of flower viewing at the Namaqua National Park. Demographic, time, expenditure, preference and route information was collected by means of interviews with 160 South African nationals who visited the park in their own vehicles. Visitors spent an average of $US108 on transportation and $US84 on accommodation in the region. A zonal travel-cost model was developed which suggests that flower viewing is of greater economic recreational value than the annual net loss to the park of $US50 000 when only its expenses and revenue are considered.
The role of hunting in village livelihoods in the Ashanti region, Ghana : environmental and ecological economicsSource: South African Journal of Economic and Management Sciences 10, pp 457 –469 (2007)More Less
The article describes the results of two surveys conducted in six villages in the Ashanti region of Ghana. The first was undertaken in August 2002 and the second during July 2004. A total of 468 hunters and non-hunters were surveyed using targeted and systematic interviewing techniques. The results indicate that hunting is an important contributor to total income in the villages, particularly for poorer households. We find some evidence that hunting increases during lean periods, especially for hunters in the household survey. Distance to Kumasi is a significant determinant of the number of animals sold on the market, and also influences the type of gear used for hunting. Compliance with wildlife laws, notably species restrictions and the closed season is low, particularly amongst professional hunters.
An economic case for drainage for sustainable irrigation : case studies in the lower Vaal and Riet catchments : environmental and ecological economicsSource: South African Journal of Economic and Management Sciences 10, pp 470 –481 (2007)More Less
Where evaporation exceeds precipitation salinisation is inevitable. This paper presents a multidisciplinary framework of the dynamic interactions between the hydrology, bio-physical and economics of irrigated agriculture in a semi arid area. Status quo drainage and cropping situations are compared to a scenario of increased drainage and leaching and subsequent higher value crops. Stochastically generated hydrology data fitted to a salinisation:yield production function is inputted in a crop enterprise budget (CEB) simulation model.
Results show losses due to salinisation of up to R6 962/ha, which exceed the direct costs of installing drainage to control salinisation. Although feasible, farmers at this stage of degradation often do not have the financial ability to repay the loans. Where losses do not exceed the financial costs of drainage, soils are further degrading, higher value crops cannot be planted and potential benefits are lost to society, motivating a green box grant. A macro-economic analysis reveals that the potential benefits to society of drainage can repay the total cost of all necessary drainage in a short period of time.
Is there a need to audit CVM applications to the environment? : environmental and ecological economicsAuthor S.G. HoskingSource: South African Journal of Economic and Management Sciences 10, pp 482 –489 (2007)More Less
It is well known to economists that the contingent valuation method (CVM) fills an important gap in valuation technology with respect to managing public environmental goods and services. Currently acceptable CVM practice requires many challenging steps to be followed. One of these important steps is that of assessing the theoretical validity of the household willingness to pay (WTP) finding, but it is far from being a sufficient basis for reaching conclusions as to the credibility predicted community willingness to pay for environmental services. This paper reviews the step of testing for theoretical validity and challenges its importance relative to other more fundamental assessments of the credibility of the predicted household and societal WTP. This paper then deduces that an external "audit" assessment may be necessary, in addition to an internal one, for these values to attain credibility in the determination of public choices.
Black economic empowerment (BEE) in the Eastern Cape automotve industry : challenges and policies : managementAuthor Gideon S. HornSource: South African Journal of Economic and Management Sciences 10, pp 490 –503 (2007)More Less
Original Equipment Manufacturers (OEMs) in South Africa are under pressure to meet the Black Economic Empowerment (BEE) policies and charters of the South African government by giving BEE suppliers additional opportunities to tender. However, many BEE suppliers, due to being historically disadvantaged, experience various problems which make it difficult for them to win tenders, including lack of finances, opportunities to tender and management and business skills, and problems with quality and capacity. This paper outlines these practical problems experienced by BEE suppliers, the effects of these problems on risk and complexity in the South African automotive industry and policies that address these problems and assist BEE suppliers to become A-rated suppliers. Data for the paper was obtained from interviews with: senior employees of the AIDC involved with supplier development training; middle managers of supplier quality and development departments at the three OEMs in the Eastern Cape Province; and BEE and small suppliers identified to undergo AIDC training. The findings of the study are that unless sufficient training is given to BEE and potential BEE suppliers, supply to OEMs will remain in the hands of existing established suppliers and very little transformation will occur within the automobile industry in South Africa.
Entrepreneurial training curriculum assessment : the case of new venture creation learnerships : managementSource: South African Journal of Economic and Management Sciences 10, pp 504 –529 (2007)More Less
This paper joins the debate about how best to assess entrepreneurial training interventions, using a case-study. Contextual secondary literature about the structure and content of such interventions is briefly reviewed. Based on this review, a framework is developed and applied to the Provincial Skills Development Pilot Project's current New Venture Creation Learnership programme. This in-depth case study uses an evaluation instrument based on the entrepreneurial assessment model proposed by Pretorius (2001: 264). Results show that the chosen programme exhibits certain limitations, which restricts its success in developing entrepreneurs in line with the National Skills Development Strategy. However, the programme possesses many strengths and its limitations are easily remedied. The proposed assessment method successfully identifies the strengths and weaknesses of the programme.
Source: South African Journal of Economic and Management Sciences 10, pp 530 –543 (2007)More Less
Exports and export growth are cornerstones of South African economic development policy, although they are not explicitly mentioned in ASGISA. One implication of an export-orientated economy is that many of its exporters must, of necessity, conform to the technical requirements in export markets. Here, it is shown that local exporters, particularly smaller firms, often incur export delays associated with meeting foreign technical requirements. The research, therefore, supports policies aimed at increasing the use of local conformity- assessment activities and improving information availability for local firms looking to meet foreign technical requirements.
Globalisation and global economic governance : contextualising the interpretations and the debate. A review of literature : managementAuthor Arno J. Van NiekerkSource: South African Journal of Economic and Management Sciences 10, pp 544 –557 (2007)More Less
As one of the most contentious and fascinating issues of modern times, globalisation is a notion in desperate need of conceptual clarification. By creating a theoretical framework and adding historical depth to the analysis of the globalisation thesis, this article attempts first to provide a contextual basis on which to weigh up the credence of globalisation as a process that is transforming the contemporary world economy. Secondly, it highlights the significance of global economic governance in performing both a somewhat regulatory function and a rather stimulating role in the advancement of globalisation. In essence, the article provides a survey of the literature concerned with theories and the historical context for globalisation and global economic governance. The third aim is to emphasise the importance of the debate surrounding globalisation and global economic governance. The evolution and outcome of this debate is seen to be a factor that will make a significant impact on the future direction of the world economy, mainly in terms of helping to shape leading economic thinking.
Author Hendrik S. KriekSource: South African Journal of Economic and Management Sciences 10, pp 558 –571 (2007)More Less
The use of teams has become one of the standard features of the South African organisational landscape. Internationally this phenomenon has attracted the interest of researchers and scholars alike. The current study reviews local research on teams according to the model of theory building proposed by Carlile and Christensen (2005). It provides a heuristic framework to present the literature review within the categorisation stage of this model and indicates the research according to the various categories of the framework. It has found that local research addresses a wide array of these categories and that the majority of research is done from a descriptive perspective.