- A-Z Publications
- South African Journal of Economic and Management Sciences
- Previous Issues
- Volume 8, Issue 3, 2005
South African Journal of Economic and Management Sciences - Volume 8, Issue 3, 2005
Volumes & issues
Volume 8, Issue 3, 2005
Source: South African Journal of Economic and Management Sciences 8, pp 255 –271 (2005)More Less
A generally accepted definition of an entrepreneur is an individual with the ability to realise a specific vision from virtually anything, a definite human creative action. A differentiating factor defining the true entrepreneur is represented by the entrepreneurial skills creativity and innovation. The fundamental skill to .create., therefore generating an idea and transforming it into a viable growth-oriented business, forms an unconditional and integrated necessity in entrepreneurship training programmes. Many researchers in this field emphasise the need for and the lack of training models regarding this intervention. <br>Courses offered by training institutions focus on training the traditional manager and not the entrepreneur. A lack of skills training for growth-oriented business is also evident. A critical deficiency in models directly addressing the Creativity, Innovation and Opportunity-finding issues, as part of entrepreneurship training, creates a situation of minuscule differentiation between a business idea and an opportunity in a training context. It is furthermore apparent that a lack of tools, textbooks and approaches to cultivate creativity exists in the field. The latter generates stifling pedagogical paradigms in teaching business and entrepreneurship. <br>This study demonstrates a new action-learning approach and model, developed to increase creative and innovative behaviour and actions of the entrepreneurship learner. Three purposive samples were used, on the basis of an experimental design. Ratio data were obtained by means of a reliable measuring instrument (Chronbach's alpha on an acceptable level). ANOVA as well as a discriminant analysis indicated statistically significant differences between the various groups. <br>This study illustrates that the proposed training methodology that was used enhances the level of creativity and innovation skills of the entrepreneurship learner on this programme. Recommendations regarding future research in this exciting field of study are addressed.
An exploratory qualitative study of brand associations as a means for brand extensions : part 1 : managementSource: South African Journal of Economic and Management Sciences 8, pp 272 –286 (2005)More Less
Brand extension has been regarded as a means to achieve growth by capitalising on the reputation of an established brand. However, the extent to which brand extensions can benefit from or even detract from the original brand, is determined by various factors. This study focuses on brand associations as means to extend the original brand. A qualitative study was used to elicit an unbiased picture of consumers. associations of a brand. The qualitative study, in contrast with the quantitative nature of most previous studies, enables further probing on the comments made by respondents. The study examined consumers. reactions to a variety of fictitious extensions for four different popular brands (Coca-Cola, Benetton, Yamaha, and Kellogg's). The main purpose of this study was to explore in what ways the associations consumers have with a brand name influence the way in which they evaluate brand extensions. Six propositions were investigated. Because of the considerable extent of the findings, the research is reported in two parts. The findings on three propositions are described in this first part of the reported research.
Source: South African Journal of Economic and Management Sciences 8, pp 287 –299 (2005)More Less
There are concerns that HIV / AIDS will impact on South African workplaces. This article reports on some of the findings of a baseline national cross-sectional study of 383 companies, each with more than 50 employees. Issues of HIV / AIDS policies, responsibility for workplace programmes, perceived and measured impact of HIV / AIDS and the response of companies are reported. Findings from this survey are compared with results from four other surveys viewing HIV / AIDS and companies. In line with other surveys, the findings indicate limited responses on the part of workplaces. Unreliability of perceptions and lack of impact measurement are highlighted. We argue that this lack of measurement reflects widespread strategic failure on the part of South African management. This failure is resulting in a de facto shift of workplace responsibility for the burden of the disease onto individuals, communities and society.
Author C.A. BisschoffSource: South African Journal of Economic and Management Sciences 8, pp 300 –309 (2005)More Less
Business schools throughout the world strive to admit .quality. students to their MBA programmes. To achieve this, various measures are employed during the selection processes. These measures include various tests such as the General Management Admissions Test, Test of English as foreign language and the Common Admission Test, to name but a few. Although these tests may be successful in indicating the quality of applicants, their predictive capabilities with reference to the academic performance in the discipline of management and leadership are unproven, while some researchers even regard these tests to be biased or unscientific across cultural boundaries. This article attempts to provide a preliminary model that could be applied to applicants in order to predict their academic success on an MBA programme. To do so, the model makes use of historical academic performance of 729 MBA students who enrolled during the years 1999, 2000 and 2001 at the Potchefstroom Business School of the Northwest University. These students graduated in the years 2001, 2002 and 2003. A vast array of demographic, academic and historical variables is employed by discriminant analyses to categorise the applicants into 2 groups, namely: <br>Low-to-no-risk. applicants for the MBA programme (most preferred applicants that should graduate within the minimum period of 3 years); <br>Applicants who did not complete their degree in 3 years. This category contains two groups of students, namely those who extended their studies to 4 years, and those who failed and subsequently dropped out of the MBA programme. Further analysis of this category identified: <ul> <li> Medium-to-low-risk. applicants who are expected to complete their degree in 4 years (they need an additional year to complete the 3-year degree). Although this category is less favourable, they do complete their studies. </li> <li>High-risk. applicants are those who are not expected to complete their degrees and would probably exit the programme without obtaining any qualification. These applicants should not be allowed to enter into the MBA programme.</li> </ul>
Socio-economic consequences of technical change in palm fruit processing in Osun State, Nigeria : economicsSource: South African Journal of Economic and Management Sciences 8, pp 310 –325 (2005)More Less
The traditional palm fruit processing method is basically manual, but is currently undergoing changes. This study identifies the stages that have been mechanised in traditional processing methods and the socio-economic implications of the technical change to assist decision-making on the superiority or otherwise of the mechanised (modern) method over the traditional method used by processors in Osun State of Nigeria. Primary data were collected during the 2004 production season with the aid of a structured questionnaire on the production resources and outputs of the two methods. These were analysed using descriptive and inferential statistics, budgetary technique dominance and sensitivity analyses, and attitudinal measure. <br>Results indicate that only two (pounding to form paste and cracking) of the stages identified in the traditional method were mechanised in the modern method. This resulted in greater efficiency of palm oil extraction, higher labour productivity, more income to stakeholders, greater market orientation, increased volume of operation and unchanged product types and quality. Other consequences are the creation of one additional group of stakeholders (machine owners), dominance, resilience to adverse yield and machine charges by 27 per cent and 150 per cent, respectively; more favourable attitude, less drudgery and health hazards, less labour requirements (female) and lower processing time in the modern method than the traditional method. This made the modern method a better choice, which could boost palm oil production at the aggregate level.
Source: South African Journal of Economic and Management Sciences 8, pp 326 –338 (2005)More Less
This paper examines whether or not the Economic Community of West African States (ECOWAS), comprising fifteen countries, constitutes an Optimum Currency Area (OCA). The paper uses secondary data obtained from the International Financial Statistics Bulletin, covering the period 1986 to 2003. The Vector Autoregressive (VAR) modelling technique was used to investigate the optimality of the community as a currency area. The study found that shocks to the output growth rate and inflation rates aligned symmetrically. Except for Nigeria and Sierra Leone, shocks to the real exchange rates also aligned symmetrically across countries. However, the degree of openness variable showed asymmetrical disturbance across countries. This paper thus concludes that a low trade link exists among member countries of ECOWAS, traced principally to the fact that these countries. exports were competitive rather than complementary. The asymmetric disturbance of real exchange rate shocks and the low degree of openness across the countries implied that the sub-region could not effectively form a successful Optimum Currency Area (OCA). Nevertheless, the sub-region exhibits some potential for forming an optimum currency area in the future.
The voice from the periphery : towards an African business ethics beyond the western heritage : economicsAuthor M.F. MuroveSource: South African Journal of Economic and Management Sciences 8, pp 339 –347 (2005)More Less
This article argues that African business ethics should go beyond the western heritage by taking into account African indigenous values and knowledge systems. While western business practices are part and parcel of Africa's heritage, African post-colonial scholarly efforts have worked at enriching this heritage by arguing for the incorporation of African indigenous knowledge systems and values in our way of thinking and doing business. There is a realisation that the western homo economicus who is solely self-interested is irreconcilable with the African understanding of a person. The success of any business venture in Africa depends on incorporating African values in the way it operates.
The impact of monetary policy on the economic growth of a small and open economy : the case of South Africa : economicsSource: South African Journal of Economic and Management Sciences 8, pp 348 –362 (2005)More Less
This study evaluates the impact of monetary policy on the economic growth of a small and open economy like that of South Africa. Structuralists contend that changes in money supply (M3) and inflation (CPI) are not significantly related to changes in economic growth (GDP), while orthodox economists argue that they are. Stucturalists also hold that monetary authorities cannot control M3, whereas orthodox economists believe they can. To structuralists, when monetary authorities pursue an expansionary policy, the opposite effect is achieved. Orthodox economists counter this argument. The ADT test statistic against the McKinnon critical values was used and it was found (i) that money supply changes and inflation are significantly related to changes in economic growth, and (ii) whereas monetary authorities can control M3 through the repo rate, they cannot keep it within set targets.
The relative efficiency of bank branches in lending and borrowing : an application of data envelopment analysis : economicsAuthor G. Van der WesthuizenSource: South African Journal of Economic and Management Sciences 8, pp 363 –376 (2005)More Less
The relative efficiency of fifty-two branches of a small South African bank was estimated using Data Envelopment Analysis (DEA). A factor responsible for the difference in efficiency between branches might be the difference in managing the asset (loans) and the liability (deposit) side of the balance sheet. For this reason, the relative efficiency of the lending and borrowing activities was also estimated and compared to the relative efficiency of the combined (lending and borrowing) activities. <br>In the case of the efficiency estimates for loans and deposits, the indications are that the branches were more efficient in managing the liability side (deposits) than in managing the asset side (loans). This means that purchased funds were not utilised efficiently.