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- Management Dynamics : Journal of the Southern African Institute for Management Scientists
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- Volume 11, Issue 4, 2002
Management Dynamics : Journal of the Southern African Institute for Management Scientists - Volume 11, Issue 4, 2002
Volume 11, Issue 4, 2002
The application of new-product development principles in the pharmaceutical industry : a replication study of marketing practitioners' perceptionsAuthor N.S. TerblancheSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 11, pp 2 –13 (2002)More Less
New products are indispensable to the growth of the modern business enterprise. Increased global and local competition, better-informed consumers, rapidly changing technology, and the short life-span of many products, are typical reasons why it is necessary to develop new products. The increased pressure to produce new products in shorter time-spans has led to the development and application of less streamlined and rigid processes for the development of new products. The pharmaceutical industry has certain unique characteristics important for new product development. New product development is highly regulated by governments. The pharmaceutical industry spends more than five times the average of all industries on research and development, and new product development depends largely on the discovery of new clinical entities. The focus of product evaluation has also undergone a major shift towards consumer acceptance. This shift stems firstly from better-informed consumers who take part in decisions regarding their health and medical care, and secondly from the genetic understanding of patients that enable pharmaceutical companies to segment patients on the basis of pharmaco-genomic descriptions. The objectives of this study were to assess whether marketing practitioners in the South African pharmaceutical industry concur with the fundamental principles of new product development, to compare the findings in respect of the South African pharmaceutical industry with those of the study undertaken by Calantone, Di Benedetto and Haggblom in 1995, and to establish whether the new product development principles taught in marketing management courses are relevant for the pharmaceutical industry. The findings of this study indicate that marketing staff in the South African pharmaceutical industry strongly agree with those fundamental principles of new product development which have been identified in the academic literature. There was also a great deal of similarity between the findings of this study and the study undertaken by Calantone, Di Benedetto and Haggblom (1995). It may thus be concluded that new product development principles taught in marketing managing courses are relevant for, and are applied by, marketing staff in the pharmaceutical industry in South Africa.
The prediction of intention to quit by means of biographic variables, work commitment, role strain and psychological climateSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 11, pp 14 –28 (2002)More Less
Work commitment (job involvement, organisational commitment, work involvement, and career commitment), role strain (role conflict and role ambiguity), psychological climate of the employing organisation, and biographical variables were measured in 1484 respondents from two organisations : a financial services group, and a university. The respondents' intention to quit was predicted to the level of approximately 50% common variance between independent and dependent variables, with work commitment variables making the major contribution to the prediction.
Variables determining the shareholder value of industrial companies listed on the JSE securities exchangeAuthor John H. HallSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 11, pp 29 –37 (2002)More Less
This study aimed to address issues of shareholder value creation. The Economic Value Added (EVA) model of value creation was used in this study, as it is arguably one of the best methods to express and quantify shareholder value creation. As a starting point, EVA was "dissected" into various building blocks or components (value drivers). In the empirical section of this study, multiple regression analyses of a company's EVA and identified variables were undertaken.
The variables that explained or contributed most to EVA were a number of profitability ratios (in the case of the "all company" sample). Balance sheet ratios or variables did not provide significant explanations of a company's EVA in this sample.
For companies that generated positive EVAs, the total regression coefficients not only increased in value, but, more importantly, profitability ratios contributed less than balance sheet ratios. When the regression analyses were performed on the top 20 EVA companies, balance sheet ratios provided the best explanations.
One can conclude that initially profitability (income statement) ratios are the most important factors in the wealth creating process. However, as companies become established wealth creators and keep improving on their performance, profitability ratios become less important. Efficient financing of the balance sheet, efficient fixed asset and working capital management then become top priorities in creating shareholder value.
Dispositional factors and coping as predictors of expatriates' performance and desire to terminate the assignmentSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 11, pp 38 –50 (2002)More Less
The objective of this study was to assess the relationships between expatriates' personality dispositions and their desire to terminate the overseas assignment as well as with their performance. A cross-sectional survey design was used. The study population consisted of 32 expatriates and their supervisors. Descriptive statistics and effect sizes were used to analyse the data. The NEO-Personality Inventory Revised, Orientation to Life Questionnaire, General Perceived Self-Efficacy Scale, Work Locus of Control Scale, COPE and expatriates' desire to terminate the assignment, and supervisor ratings of expatriates' performance, were administered. The results showed that the 'Big Five' personality dimensions, locus of control and coping, are related to expatriates' performance. Coping was also found to be related to expatriates' desire to terminate the assignment. Implications regarding selection procedures for potential expatriates are discussed.