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- Volume 17, Issue 3, 2014
South African Journal of Economic and Management Sciences - Volume 17, Issue 3, 2014
Volumes & issues
Volume 17, Issue 3, 2014
Author Debbie Vigar-EllisSource: South African Journal of Economic and Management Sciences 17, pp 232 –248 (2014)More Less
The smartphone has become the uniquely personal computing device choice for consumers. Applications (apps) for smartphones are set to reach revenues of £25 billion according to Gartner. This presents great opportunities for marketing as apps can provide great benefits for consumers and firms. However it is Information Systems (IS) departments that have traditionally been tasked with the acquisition and/or development of such information technologies within organisations. With such strong implications for marketing, this exploratory research has focused on the sources of app ideas within firms, locations for app development and perceptions of app development success. Results indicate that while most ideas for apps currently come from IS and marketing departments within the organisation, and development of apps is also done mainly within the organisation, these development strategies are not necessarily the most effective. Managerial implications' regarding the role of IS, Marketing and the customer in app development, are discussed.
Source: South African Journal of Economic and Management Sciences 17, pp 249 –265 (2014)More Less
In the field of entrepreneurship and especially during start up, much emphasis is placed on the business plan with regard to entrepreneurship education and training, funding from external investors, business plan competitions and government development agencies in the Small, Medium and Micro Enterprise (SMME) sector. In many earlier studies of well-known entrepreneurship educators, the formulation of a business plan was identified as being the most important feature of any entrepreneurship programme or course. However, the relevance of a business plan has been a topic of intense and unresolved debates in more recent literature. This paper contributes to the literature with regard to the value a business plan adds to potential entrepreneurs. Furthermore it increases the understanding of how a detailed business plan (such as the approved business plan template of the University of Pretoria) can enable a potential entrepreneur to assess opportunities. The paper conducts a comprehensive analysis of business plans and the methods of assessing opportunities, in order to reveal similarities between the business plan and opportunity assessment. Based on descriptive statistics and inferential statistics such as ANOVA, and Kruskal-Wallis tests, the findings support the hypotheses that potential entrepreneurs distinguish between ideas and opportunities and develop opportunities through the formulation of a detailed business plan. The pertinent academic and practical significance of this paper is that it highlights statistically significant differences proving that a detailed business plan is a tool that enables potential entrepreneurs to assess opportunities. From a practical point of view, this should help potential entrepreneurs to establish more viable business ventures; however, this would have to be statistically tested in further research. Finally, the study reestablishes the importance and purpose of a business plan in the field of entrepreneurship.
Is regulatory capital a legitimate, comparable and objective global standard? Evidence from 51 institutions across 17 countriesSource: South African Journal of Economic and Management Sciences 17, pp 266 –283 (2014)More Less
Capital as an instrument for financial regulation has come under scrutiny since the financial crisis of 2007 to 2010 highlighted some deficiencies in the ability of capital to absorb unexpected losses and the procyclical nature of capital. This scrutiny arises mainly from the perspective that one of the principal objectives of capital requirements is to promote and contribute to financial stability. However, the literature on the topic is scarce almost to the point of non-existence regarding capital's validity as tool to level the playing fields between financial institutions. The objective of this article is therefore to investigate financial regulations based on capital requirements from the perspective of its goal of providing equal competitive conditions for financial institutions, the attainment of which is based on the assumption that the cost of capital between institutions (and countries) is the same, which might not necessarily be the case. The cost of capital for 51 financial institutions across 17 countries (three institutions per country) is accordingly calculated in this article using original weighted average cost of capital and capital asset pricing models, as well as modified versions of these to include more country-specific factors. The objective of the article is sought firstly by determining whether the cost of capital is the same among countries and secondly, based on the results, ascertaining whether financial regulations based on capital requirements can therefore realistically achieve this objective of providing equal competitive conditions for financial institutions.
Source: South African Journal of Economic and Management Sciences 17, pp 284 –296 (2014)More Less
Nowadays, a third generation of ethics has come to the fore, whereby ethical issues are approached in an integrated manner, emphasising the management of ethics, which entails a cause-effect relation. One of its evaluation instruments is the ethical audit. This paper presents the findings of research focused on 47 executives involved in the management of quality in Romanian hospitals. The research concerns, in particular, the relevance and the opportunity for an ethical audit and the assessment of its possible effects. The data were gathered using a questionnaire. The research shows that Romanian managers consider the introduction of the ethical audit within the accreditation process as being relevant and pertinent. They believe that ethical monitoring is beneficial for the activity of healthcare institutions, but also that these institutions are as yet not sufficiently prepared to implement ethical audits. This study might be useful for sounding an alarm bell or for suggesting a direction for the qualitative and quantitative improvement of accreditation criteria and for the management of change in healthcare institutions worldwide.
The influence of 'buffering' variables on clients' willingness to engage in retribution behaviour after a service failureAuthor Christo BoshoffSource: South African Journal of Economic and Management Sciences 17, pp 297 –309 (2014)More Less
Source: South African Journal of Economic and Management Sciences 17, pp 310 –318 (2014)More Less
Emerging markets' small and medium sized enterprises (SMEs), despite having enormous growth potential and significance in the economy, have not been able to harness the advantages of internationalisation and subsequently have fallen short in facing the challenges of globalised competition. The purpose of this study was to review and explore the importance of the resource capabilities, building on the literature from the resource based view (RBV), (core) competency and dynamic capabilities theory, as the main rationale behind their significance in the SME internationalisation. This study intends to provide conceptual clarity about the resource capabilities and their importance in providing the SMEs in the emerging economies, the competitive edge to sustain themselves in today's business environment. The study concludes with an agenda for future research.
Investment promotion in the South African manufacturing industry : incentive comparisons with Malaysia and SingaporeSource: South African Journal of Economic and Management Sciences 17, pp 319 –335 (2014)More Less
South Africa needs to increase its inward foreign direct investment (FDI) in order to achieve economic growth. The purpose of this article is to explore which interventions could be launched in the short term to enhance the country's attractiveness for foreign investors. The findings of the literature review demonstrated that incentives, as a determinant of investment, are the short-term intervention with the most significant potential to attract additional FDI. A comparative study, which provided insight into the incentives that are currently offered to the manufacturing sectors of three countries (South Africa, Malaysia and Singapore), assisted in identifying two additional incentives that the South African government could introduce and three existing incentives that could be amended. The introduction or modification of these incentives could ensure that South Africa has a competitive advantage to attract investment from foreign investors and thereby increase its inward FDI in the manufacturing industry.
Source: South African Journal of Economic and Management Sciences 17, pp 336 –348 (2014)More Less
Rapid changes in highly competitive economic environments have created the need for sound financial management in organisations. In order to source sufficient numbers of skilled financial managers, specialised career guidance should be high on the agenda of educational and labour policy makers. While the chartered management accountant (CMA) enjoys international status, not many studies have been conducted to measure South African students' and accounting teachers' awareness of the CMA designation. This article reports on the results of first-year accounting students' perceptions of a career in management accounting as well as on the career guidance they received on how to become a CMA. It also reports on accounting teachers' awareness of the management accounting designation. This study found that first-year accounting students and accounting teachers do not possess sufficient knowledge of the career opportunities in the management accounting field and of the route to follow on how to become a CMA. Recommendations are made for tertiary institutions and professional bodies to alleviate this information gap by distributing brochures and posters to accounting and career guidance teachers and by providing information sessions to them as well as to first-year accounting students on career opportunities in the management accounting field.
Author Eliada Griffin-ELSource: South African Journal of Economic and Management Sciences 17, pp 349 –362 (2014)More Less
This study qualitatively explores the embeddedness of the innovation process of South African microbusinesses by investigating how small local entrepreneurs in the Greater Johannesburg area utilise their social networks to source entrepreneurial value. A comparative grounded theory analysis enabled the original conceptualisation of Network Diversity Structure and formulates the central proposition that the network dimensions of diversity and closeness enable the innovation process among manufacturing microbusinesses more so than in service microbusinesses. Furthermore, the study proposes that both a structural and relational/experiential dimension of closeness, enables micro-entrepreneurs to create meaning and knowledge collaboratively with other entrepreneurs and actors. This socially facilitated process of exchanging ideas, information, and resources is central to the innovation process of firms traditionally limited by both their size and historical social institutions.