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- Management Dynamics : Journal of the Southern African Institute for Management Scientists
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- Volume 18, Issue 4, 2009
Management Dynamics : Journal of the Southern African Institute for Management Scientists - Volume 18, Issue 4, 2009
Volume 18, Issue 4, 2009
An exploratory study of some of the determinants of management succession planning in family businessesSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 18, pp 2 –17 (2009)More Less
This study highlights the importance of management succession planning in small and medium-sized family businesses. The primary objective of this study is twofold : firstly to identify the potential influence of selected variables (determinants) on the management succession planning process in small and medium-sized family businesses, and secondly to make practical recommendations for actions that families can take to improve their chances of a successful succession and thereby ensure the sustainability of the family business for future generations. Structured questionnaires were received from 270 active family members from 77 family businesses. The data collected were subjected to various statistical analyses. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. In this study three factors describing the theoretical dimensions of management succession planning, perceived suitability of the prospective successor and the expected outcome of the succession were extracted. Based on the results of the regression analysis, both management succession planning and the perceived suitability of the prospective successor have a positive influence on the expected outcome of the succession. Although statistical significant differences were found between the perceptions of male and female as well as between senior- and younger-generation family employees regarding the variables, these differences were not practically significant. This study, however, confirms the important role that an effective management succession planning process plays in ensuring the successful transfer of the family business from the senior-generation owner-manager to the younger-generation family.
The mediating effect of brand image and information search intentions on the perceived risks associated with online purchasing on a generically-branded websiteSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 18, pp 18 –28 (2009)More Less
Against the background of the slow adoption of the Internet as a channel of retail distribution, the primary objective of this study was to investigate perceived risks associated with intention to purchase online on a generically-branded website. A secondary objective was to examine the influence of brand image and information search behaviour on perceived risk, by investigating whether these two variables can act as intervening variables in influencing consumer intention to purchase on a generically-branded website.
Of the different types of risk perceptions investigated in this study, only performance risk influenced the intentions to purchase on a generically-branded website. The study also found that brand image mediated the influence of performance risk on intentions to purchase on a generically-branded website. Enhancing the brand image would thus lower concerns about the performance risk associated with a generically-branded website. Information search intentions did not, however, mediate the influence of performance risk on intentions to purchase on a generically-branded website. Thus, adding additional information on the website that consumers may find useful will not reduce performance risk or increase intentions to buy.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 18, pp 29 –39 (2009)More Less
The government of South Africa introduced AsgiSA (Accelerated and Shared Growth Initiative for South Africa) in 2006 as an attempt to evaluate South Africa's economic growth rate. The aim is to achieve a sustainable rate of real Gross Domestic Product (GDP) growth of 4.5% per annum over the period 2004-2009 and at least 6% per annum over the period 2010-2014. It was anticipated that the introduction of these measures will halve poverty and unemployment by 2014.
In this exploratory study, the real growth in value added (VA) (as a micro-economic substitute for growth in GDP) was compared with the real growth in salaries and wages for 62 companies listed on the JSE Limited (formerly the JSE Securities Exchange South Africa). The real growth was calculated by means of the compound rate method over the period 2000-2005. It was found that the real growth rate in value added per employee was not significantly different from the desired GDP growth rate during the same period, and that it exceeded the desired real growth rate of 4.5% in 2002. It was further found that the real growth rate in salaries per employee was not significantly different from the real growth rate in VA per employee, except in 2002 and 2003. In these two years employees were generally underpaid compared to their contribution to real economic growth.
Pool regression (longitudinal) analysis was used to examine the extent to which the real growth rate in VA per employee could be used to determine the real growth rate in salaries per employee and vice versa. It was found that the relationship between the two variables was much stronger when productivity was used as the dependent variable and salary increments as the independent variable. It was also established that the causality between the two variables was unidirectional, with salary increments preceding productivity. It is apparent, therefore, that South African employers use salary increments not to reward productivity, but rather as a driver of productivity.