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- Volume 17, Issue 4, 2014
South African Journal of Economic and Management Sciences - Volume 17, Issue 4, 2014
Volumes & issues
Volume 17, Issue 4, 2014
The influence of the quality of working life on employee job satisfaction, job commitment and tenure intention in the SME sector in ZimbabweSource: South African Journal of Economic and Management Sciences 17, pp 363 –378 (2014)More Less
A major reason for advocating for quality of work life has been the promise that it creates a win-win situation: improved employee satisfaction and welfare, hence increased productivity, longer employee tenure and consequently increased company profitability. Nevertheless, in the context of small to medium enterprises (SMEs), scant attention has been given to the empirical investigation into the influence of the quality of work life on employee tenure intention in Southern Africa. The purpose of this study is to fill this gap by examining the influence of SME employees' perceptions of the quality of work life on their tenure intention and the mediating role of job satisfaction and job commitment in this relationship as far as Zimbabwe is concerned. Five hypotheses were posited and sample data of 282 were collected from Harare, Zimbabwe's biggest city, to empirically test these hypotheses. The results of this study showed that, in the SME context, quality of work life positively and significantly influences employee job satisfaction, job commitment and consequently tenure intention. The managerial implications of the findings are discussed and limitations and future research directions are indicated.
Source: South African Journal of Economic and Management Sciences 17, pp 379 –395 (2014)More Less
The core of South Africa tourism industry is based on wildlife tourism. Private game reserves and game farms which forms part of wildlife tourism constitute most of the wildlife products in South Africa. On these private reserves and game farms, hunting is one of the major income generators for product owners. The aim of this study is to analyse the economic impact of hunting on the regional economies of three of South Africa's most important hunting provinces. The study used economic multipliers, input-output analysis, and related modelling processes through input-output (supply-use) tables and social accounting matrices (SAM). The results differed significantly for the three provinces, with Limpopo receiving the biggest impact (R2.6 billion) and the Free State having the highest multiplier (2.08). The geographical location of the game farms, the number of farms per province and the species available all influenced the magnitude of the economic impact of hunters over and above the traditional determinants of economic impact analysis. The implication of the research is that it will help product owners in the development of game farms or hunting products, contribute to policy formulation, especially for government decisions on what products to offer where, and how to create more jobs.
Source: South African Journal of Economic and Management Sciences 17, pp 396 –411 (2014)More Less
The interpretation of financial data obtained from the accounting process for reporting purposes is regulated by financial accounting standards (FAS). The history and mechanisms used for the development of 'The Conceptual Framework for Financial Reporting' (the Conceptual Framework) as well as the financial accounting standards resulted in impressive volumes of material that guides modern financial reporting practices, but unfortunately, as is often the case with textual manuscripts, it contains descriptions that are vague, inconsistent or ambiguous. As part of the on-going initiatives to improve International Financial Reporting Standards (IFRS), the International Accounting Standards Board (IASB) promotes the development of principle-based IFRS, which aim to address the problems of vagueness, inconsistency and ambiguity.
This paper reports on the findings of a design science research (DSR) project that, as artefact, developed a first version ontology-based formal language representing the definitions of asset, liability and equity (the fundamental elements of the statement of financial position as defined in the Conceptual Framework) through the application of knowledge representation (ontology) techniques as used within computing. We suggest that this artefact may assist with addressing vagueness, inconsistencies and ambiguities within the definitions of the Conceptual Framework. Based on our findings, we include suggestions for the further development of a formal language and approach to assist the formulation of the Conceptual Framework. The project focuses on the Conceptual Framework for Financial Reporting after the incorporation of Phase A in the convergence project between the Financial Accounting Standards Board (FASB) and IASB.
Source: South African Journal of Economic and Management Sciences 17, pp 412 –426 (2014)More Less
International trade has grown exponentially since the days of the Cold War, and today consumers in most countries are exposed to a growing range of product offerings from around the world. As the origin of products might have an influence on consumer buying behaviour, many marketers realise that an improved understanding of consumer attitudes towards both domestic and imported products could be useful in formulating more effective marketing strategies. Previous research in the field of international marketing suggests that the concept of consumer ethnocentrism can be an important factor when consumers decide to purchase locally produced rather than imported products. While the concept of consumer ethnocentrism has been actively researched in a number of contexts and countries, research on this phenomenon has been limited to developed countries. The purpose of this study is to contribute to the existing body of knowledge on consumer ethnocentrism in developing markets by investigating the possible relationships between consumer ethnocentrism and a number of demographic variables in South Africa. A unique contribution of this study is that the investigation focused on two different ethnic samples - 'white' respondents and 'black' respondents - to account for the ethnic diversity in South Africa. An online survey was used to collect data on ethnocentristic tendencies in both sub-samples, as well as on their demographic characteristics. The results of the study revealed that for both groups of respondents there was a positive relationship between age and consumer ethnocentrism, while a negative relationship was found for both groups in the relationship between consumer ethnocentrism and income. In respect of the relationship between consumer ethnocentrism and gender, the results differed between the two groups of respondents.
Promoting sustainable economic growth in South Africa through the export of low-carbon environmental goodsSource: South African Journal of Economic and Management Sciences 17, pp 427 –439 (2014)More Less
Many countries, particularly those in the developing world, are under increasing pressure to improve their growth rates in order to tackle pressing economic problems at the domestic level. Increasing export volumes can make a positive contribution to a country's economic growth rate, but it can also endanger the environment. How to reconcile the often conflicting phenomena of increased export activity, stronger economic growth and a lower carbon footprint is the focus of this study.
A core outcome of the study was the creation of a single list using a cross-section of international sources, of low-carbon environmental goods, and their ranking according to their inherent ability to reduce greenhouse gas emissions, South Africa's capacity to produce them, and their economic benefits, as reflected in the export opportunities they present. These export opportunities were revealed through the application of the Decision Support Model (DSM), an export market selection tool that incorporates a systematic filtering and screening system.
The results of the analysis should help guide policymakers in their strategic deliberations on which export sectors to incentivise and support with a view to encouraging more 'green' growth in South Africa in the years ahead.
Source: South African Journal of Economic and Management Sciences 17, pp 440 –456 (2014)More Less
Despite the importance attached to MI and other marketing information functions, surprisingly few studies have explicitly examined the relationship between MI and strategic marketing decision-making. This article reports on a study conducted with the aim of determining the relationship between marketing intelligence (MI) and strategic marketing in South African organisations. A quantitative survey was conducted among 166 South African marketing decision-makers. The findings suggest a substantial gap between the importance and availability of key types of MI. Marketing decision-makers found the traditional MI and marketing tools of great value in supporting marketing decision-making, but the value of several of the newer MI tools and technologies was less clear. An analysis of MI practices suggested that MI quality and particularly information and communication technology (ICT) support for MI are areas requiring further attention.
Source: South African Journal of Economic and Management Sciences 17, pp 457 –470 (2014)More Less
In a competitive cell phone industry where consumers have a wide variety of cell phone brands to choose from, it is imperative for marketers to foster brand loyalty in order to establish enduring consumer-brand relationships. Nurturing brand romance has been suggested to marketers to cultivate emotional attachments between consumers and brands so as to increase brand loyalty. This study focussed on determining the extent to which the three underlying dimensions of brand romance, namely pleasure, arousal and dominance predict brand loyalty among cell phone users in the North West province. In total 371 respondents participated in the study. Results indicate that with respect to brand romance, respondents' current cell phone brands generate brand pleasure and brand arousal, but that these brands are not dominant in their minds. Although respondents participating in the study did not exhibit strong levels of brand loyalty towards their current cell phone brands, the three underlying dimensions of brand romance are statistically significant predictors of brand loyalty.
Economic incentives for family controlling shareholders and the monitoring role of non-dominant large shareholders in corporate governance : evidence from the manufacturing firms in MalaysiaSource: South African Journal of Economic and Management Sciences 17, pp 471 –483 (2014)More Less
This article explores the economic incentives of dominant controlling shareholders with regard to the expropriation of minority shareholders, on the one hand, and the monitoring role of non-dominant large shareholders in family firms, on the other. The authors argue that family controlling shareholders (or family owners) do not share common interests with other shareholders. Drawing on 141 family firms in the manufacturing sector that were listed on Bursa Malaysia (the Malaysian stock exchange) from 2003 to 2006, the article finds an inverted U-shaped relationship between excess control rights and a firm's market performance. The findings also show that both the cash flow rights (i.e. claims on cash payouts) of family controlling shareholders and the presence of non-dominant large shareholders with the ability to contest control of the firm have a positive relationship with market performance.
This study contributes to the literature by indicating that family owners are unlikely to collude with other large shareholders to expropriate minority shareholders. Furthermore, low levels of excess family-owner control rights are beneficial for market performance because firms may benefit from group affiliations and receive patronage from wealthy owners. However, high levels of excess control rights are understood to be an economic incentive for family owners to expropriate minority shareholders during non-crisis periods.
Source: South African Journal of Economic and Management Sciences 17, pp 484 –500 (2014)More Less
The South African labour market is characterised by sharp segmentation, high unemployment and apparently limited informal sector employment. Recent work has focussed on the importance of the quality of education while others have argued that the rigidity of the labour market constrains employment growth. This paper considers the spatial aspects of the day labour market and argues that the size and proximity of economic activity found in agglomerations ensure a thick labour market that allows for better matching between workers and jobs. The results indicate that the day labourers who were hired by the same employer more often received higher earnings. Once workers have a matric qualification they receive earnings above the average, as do workers who have completed vocational training. Skills, as well as factors associated with a thicker labour market are positively associated with wages. The thicker metropolitan labour market allows workers to become more specialised and receive higher earnings. This has important policy implications and calls for the development of people and places.
Seeking rigor in South African business research : aspirational principles in contrast to a recent publicationAuthor Gregory LeeSource: South African Journal of Economic and Management Sciences 17, pp 501 –514 (2014)More Less
Studies of organisational success and other aspects of management are critical in understanding and improving critical areas of African economic stability. This article seeks to urge high levels of rigor in South African research in this area, notably empirical research, proposing several aspirational research principles. First, the article considers claims of uniqueness versus the practical value of embedding research as a replication in a well-considered wider body of knowledge. Second is the desirability of conforming to sufficiently high norms of model fit and effect size and accuracy. Third is empirical comparison of South African studies with previous findings, with attendant possibilities for new theory development. Fourth is proper tests for and treatment of common method bias. Fifth is specification of appropriate sets of constructs. Finally, this article proposes specification of alternate models that will add substantial rigor to such research. In advocating these possibilities, the current article contrasts these aspirational principles to a recent SAJEMS article. This critique serves an exclusively illustrative purpose, showing some pitfalls of not conforming to the aspirational principles, the benefits of explicitly including certain easy to achieve solutions, and the ease with which greater rigor can sometimes be achieved. Ultimately, this article seeks to constructively advance African business research standards.
Source: South African Journal of Economic and Management Sciences 17, pp 515 –530 (2014)More Less
The aim of this study was to investigate the relationships between work-home/home-work interaction, psychological conditions and employee engagement. A cross-sectional survey was used. The participants were 292 employees of a uranium mine in Namibia residing in towns distant from their workplace. The following measuring instruments were used: Survey Work-Home Interaction - Nijmegen, Psychological Conditions Scale and Work Engagement Scale. Positive work-home interaction and negative home-work interaction had direct positive and negative effects on psychological meaningfulness and psychological availability respectively. Psychological meaningfulness, psychological availability, positive work-home interaction and positive home-work interaction had direct effects on employee engagement. An analysis of the indirect effects showed that positive work-home interaction affected employee engagement via experiences of psychological meaningfulness and psychological availability. Negative home-work interaction affected employee engagement negatively via low psychological meaningfulness and low psychological availability. Implementing policies to promote meaningfulness and availability at work, to build positive work-home interaction and to protect employees against negative home-work interference, will contribute to personal engagement at work.