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Acta Commercii - Volume 10, Issue 1, January 2010
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Volume 10, Issue 1, January 2010
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The supplier relationship practices of travel agencies in the Western Cape Province - what is the status quo?
Author Mornay Roberts-LombardSource: Acta Commercii 10, pp 1 –14 (2010)More LessPurpose : The purpose of the article is to explore the supplier relationship practices of travel agencies in the Western Cape province. The article wants to establish the current supplier relationship practices of travel agencies in the province and to identify limitations in supplier market relationships which might exist in the industry.
Problem investigated : Relationships are the basis on which trade in the travel industry is built (George, 2006:224). The establishment and management of these relationships must be to the advantage of all parties in the relationship (Swart, 2003:120). Townes (2007) indicated that the current level of relationships that exists between travel agencies and their suppliers, especially the South African Airways (SAA), the Protea and Southern Sun hotel groups and motor vehicle rental companies such as AVIS is fragmented and negatively impairs on the ability of travel agents to deliver a quality service to their customers. To improve their overall level of service delivery to both corporate and leisure customers, it is important for travel agencies to know and understand the current level of their relationships with suppliers. It is against this background that the research was undertaken.
Methodology : The target population for this study was 118 travel agencies of which 61 managers and/or owners participated through personal interviews in the completion of questionnaires. Data analysis was done by calculating averages and standard deviations, Explorative Factor Analysis (EFA), Cronbach Alpha-values and practical significance by means of effect sizes.
Findings : The owners and managers of travel agencies are of the opinion that the strengthening of their existing relationships with suppliers must be prioritised. More emphasis should be placed on the strengthening of existing communication channels between travel agencies and their suppliers to secure the faster resolution of queries and complaints and to enhance the sharing of information, skills and knowledge between the two parties. The results further indicated that the development of long term relationships with suppliers are important for the future existence of the travel agency industry in the Western Cape. The establishment of these relationships must, however, be to the advantage of both parties in the relationship
Conclusion : Travel agencies and their suppliers should work in collaboration to improve their service delivery to customers by sharing information on product development, marketing and promotional strategies as well as future distribution initiatives. It is also important that both travel agencies and their suppliers should believe in the long term value of establishing a relationship with each other. It is for this reason that trust and commitment are prerequisites for the establishment of such a relationship.
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(Mis)managing labour markets? The decline of the contemporary global labour market for British seafarers.
Author S. RuggunanSource: Acta Commercii 10, pp 15 –26 (2010)More LessPurpose : The purpose of this article is to investigate the ways in which states are still significant actors in creating and shaping the nature and characteristics of global labour markets. My argument is demonstrated through an empirical case study of the global labour market for British seafarers.
Problem Investigated : The last 30 years has witnessed a decimation of the number of employed British seafarers, particularly at lower rank levels, such as ratings. I contend that despite Britain's long and rich maritime history, the British state has not acted meaningfully to reverse the decline of British seafarers. The lack of meaningful action I contend is an attempt to crew British owned ships with cheaper seafaring labour from Asia, particularly south east Asia. In so doing the British state has contributed to the decline of a once thriving labour market. There has simultaneously been an upsurge in the employment of seafarers of other nationalities, and thus the creation of new labour markets in countries such as the Philippines. This paper is an attempt to understand some of the factors responsible for the decline of the British labour market for seafarers.
Methodology and Approach : This paper is the outcome of a larger qualitative study undertaken for my doctoral thesis in industrial sociology which examined the transformation of the global labour market for South African, Filipino and British seafarers. The methodology consists of in depth interviews with maritime officials and trade union leaders. These were conducted in person in London, United Kingdom between 2005 and 2008. These interviews are supported by extensive literature and documentary research, to validate, support and test claims made by my interviewees.
Implications and Value of the Research : The theoretical contribution of this paper is to reinsert the state more critically into the literature on labour markets. Empirically, seafaring labour markets are largely ignored by the disciplines of both sociology and commerce. The paper attempts to fill this gap by investigating a much neglected occupational sector. Very little empirical work is being done by South African researchers on global labour markets outside South Africa. This paper is therefore primarily addressed to a South African audience.
Conclusion : The paper demonstrates that the state has to be a willing and active partner in ensuring employment security of its worker-citizens in global labour markets. The private sector and organised labour by themselves are unable or unwilling to prevent massive job losses without state intervention. As increasing numbers of workers join global labour markets, states need to become more involved rather than less involved in ensuring the stability of employment for their citizens.
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Building customer relationships as retention strategy in the South African domestic passenger airline industry
Authors: Pierre Mostert and Christine De MeyerSource: Acta Commercii 10, pp 27 –42 (2010)More LessOrganisations are increasingly focusing on building long-term relationships with customers, thereby increasing their probability for success by offering customers higher levels of satisfaction, increasing customer loyalty, and ultimately retaining customers. Airlines in particular can benefit from retaining customers as the airline industry is characterised by fierce competition and many airlines are finding it difficult to survive against the backdrop of enormous challenges in the past decade, including the significant decline in demand for air travel together with rising costs and the worldwide economic downturn.
This study investigates the effect which a strategy by airlines of building relationships with customers has on customer satisfaction, loyalty, and ultimately customer retention. The effect of service failures on customers' relationships with airlines are also considered as a negative experience could results in customers defecting to competitors.
A questionnaire, comprising six sections, was specifically compiled to determine customer retention in the South African domestic passenger airline industry. Data were collected by trained fieldworkers from OR Tambo International Airport by means of a non-probability convenience sampling method from 324 passengers flying with the various domestic airlines.
Findings indicate that most respondents were satisfied with the airlines' overall service; respondents who formed relationships with domestic airlines were more loyal toward the airlines; and the relationships of respondents who were satisfied with airlines' service recovery efforts were either strengthened or unchanged.
The findings from this study support findings from international studies by providing a unique South African perspective on the effect of a strategy of building relationships with customers on their satisfaction, loyalty and ultimately retention. It can therefore be recommended that the organisations competing in the South African service sector, and specifically the domestic airline industry, make special efforts to build relationships with existing customers, rather than to continually try to acquire new customers. This strategy could result in a higher probability of success by increasing customer satisfaction, customer loyalty, and ultimately customer retention.
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Organisational culture : a contemporary management perspective
Author Richard WeeksSource: Acta Commercii 10, pp 43 –58 (2010)More LessPurpose : The purpose of this paper is to analyse the concept "organisational culture from a traditional and a more contemporary management perspective.
Problem investigated : The concept organizational culture has assumed a very prominent place within the management literature and has been analysed from diverse multidisciplinary perspectives. Central to the importance attributed to the concept is the fact that it acts as a perceptual and behavioural determinant, which implies that it will have a significant impact on all human related institutional activities and thus the interest in the concept and its management. Researchers and management practitioners have come to assume that while the concept is difficult to manage in practice, it is possible to determine the prevailing culture of an institution, identify what is termed to be a desired culture for an institution and then analyse the cultural gap that exists. Based on the analysis conducted, it is further frequently assumed that the transition from the prevailing to a desired culture can be managed. A more contemporary management perspective, based on complexity theory, would appear to challenge the assumption of being able to actively manage the organisation's culture transformation process to ensure that a desired culture is manifest within the institution. The traditional and more contemporary approaches for dealing with the concept "organisational culture" are the focus of discussion and analysis in this paper.
Methodology : A multidisciplinary literature review and analysis is undertaken to gain an insight of traditional and contemporary management theory and practice, as it relates to the concept "organisational culture" and its management.
Findings : An important conclusion drawn from the study is that traditional paradigms of organisational culture management, that evolved within a more mechanistic manufacturing economy, is no longer effective for dealing with the unpredictable and disruptive changes of a highly complex, competitive and turbulent global services economy. It is suggested that a more contemporary complexity theory approach in dealing with the concept may in fact be more appropriate.
Value of the research : Increasingly executives and managers are confronted with the complex realities associated with managing a modern day enterprise in a very turbulent and emerging global services economy. The concept organisational culture, as a perceptual and behavioural determinant, will have a multifaceted influence in the management of the enterprise and the insights derived from this research study could assist executives and managers in dealing with organisational culture as an emergent property, as opposed to a purposefully managed entity.
Conclusion : A primary conclusion drawn from the study is that within a contemporary management setting the notion of organisational culture as an emergent, as opposed to actively managed, concept would appear to be more realistic. This would imply that executives and managers at best can attempt to influence its emergence and consequently its impact as a perceptual and behavioural determinant.
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How do small business managers influence employee satisfaction and commitment?
Authors: Janine Kruger and Chantal RootmanSource: Acta Commercii 10, pp 59 –72 (2010)More LessPurpose : The purpose of this research is to scrutinise motivational factors that may influence the levels of satisfaction and commitment of small business employees.
Problem investigated : An unmotivated workforce leads to dissatisfaction and low commitment levels among employees. Possible consequences of these unproductive trends include higher costs, business closures and a negative effect on a country's economy. Employee satisfaction and employee commitment are thus vital for the success of any business. It is essential for business managers to keep their employees satisfied and committed to the business. In order for business managers to motivate their employees to keep them satisfied and committed, they need to know how to motivate employees. A number of factors influence employee satisfaction and employee commitment, which include working conditions, managerial abilities, employee participation, company policies, recognition and feedback, as well as job interest and job importance. Managers should know how to apply each of these factors to ensure that employees are satisfied and committed.
Methodology : A quantitative research approach was followed using a self-administered questionnaire. This measuring instrument consisted of three sections covering the biographical information of respondents, statements on motivational factors, and statements about satisfaction and commitment. A five-point Likert-type scale, ranging from strongly disagree to strongly agree, was applied. Simple random sampling was used to elicit the responses of 444 respondents from small businesses in the Nelson Mandela Metropole in South Africa. Cronbach Alpha coefficients were calculated to measure the internal consistency and reliability of the measuring instrument. Descriptive statistics, Pearson correlation coefficients and simple linear regression analyses were used to analyse the data.
Findings and implications : The research revealed that significant positive relationships exist between all the motivational factors and satisfaction, as well as with commitment. The strongest positive relationships exist between the independent variable job interest and importance and both the dependent variables. The weakest relationships exist between the independent variable rewards and both the dependent variables. Levels of satisfaction and commitment should continually be developed and improved through management training about the application of motivational factors. Small businesses should implement the motivational factors discussed in this research in creative ways, in order to have a positive effect on the satisfaction and commitment levels of employees.
Originality and value of the research : This research focused on what small business managers should concentrate on when motivating their employees. Small business managers should also realise that motivation cannot be separated from employee satisfaction and commitment. The value of the research is that when small business managers pay more attention to these factors as identified in this study, it may lead to better business performance in the long run. With regard to the originality of this research, previous research has focused mainly on motivational theories without reaching a conclusion or highlighting possible strategies that could be used by small businesses to motivate employees.
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Advantages and pitfalls of South Africa-Angola strategic alliances
Authors: A.J. Vogel and G.B.L. Pires da CunhaSource: Acta Commercii 10, pp 73 –88 (2010)More LessPurpose : Owing to a shortage of South African research focusing on international strategic alliances, this study aimed to determine whether the advantages and pitfalls of international strategic alliances referred to in international business publications are also applicable to South African international strategic alliances.
Design / Methodology / Approach : This was a formal, empirical study that targeted the 163 South African enterprises which were members of the South African-Angolan Chamber of Commerce in 2005 and 2006.
Findings : The results identified joint ventures as the most prominent mode of entry when expanding into developing countries and, with few exceptions, the findings support the advantages and pitfalls of international strategic alliances identified in other international publications.
Value of the research : A great deal of international management research over the years has been focused on the importance of strategic alliances as a mode of entry, as well as on the pitfalls experienced by alliance partners, particularly in developed countries. However, the lack of such research in Africa in general and South Africa in particular means that South African enterprises must base their entry mode selection on non-South African research findings, and although this sample size was small, the lack of other Africa-specific research makes this research significant.
Implications : With South Africa being the largest source of FDI into the rest of Africa, the findings of this paper show that South African enterprises can attain the advantages associated with international strategic alliances when using this mode of entry into Africa. In terms of pitfalls, the findings highlight the need for multinational enterprises to pay specific attention to the role of governments when forming strategic alliances.
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Levels of poverty and the poverty gap in rural Limpopo
Authors: R.R. Mears and P.F. BlaauwSource: Acta Commercii 10, pp 89 –106 (2010)More LessPurpose / objectives : The aim of this paper is to obtain a better understanding of the income and expenditure patterns of selected deep rural villages. This is done by measuring the level of poverty and/or the poverty gap of 132 households in Limpopo, one of the poorest provinces in South Africa.
Problem investigated : The Millennium Declaration symbolises the commitment to end extreme poverty, but limited data is available for rural areas to inform policy decisions. The relative income shares for individuals, households and percentile groups within a population provide the best information on poverty for policy formulation. The nature and size distribution of income are therefore central to analysing the poverty problem within low-income areas. The survey area is one of the poorest areas in South Africa, and shows what data is needed to measure and understand the extent of poverty.
Design / Method / Approach : A representative sample of 132 households was drawn, which represents 6,9 percent of the estimated 1900 households in selected villages of rural Limpopo. A total of 740 household members were represented in the survey, with an average of 5,6 members per household.
Originality / Value : Although this is a relatively small sample, it generated much-needed data on this very poor area of South Africa. Detailed empirical data on the income and expenditure patterns is not available, especially for rural areas. The socio-economic data from this research supported an important health project of the Water and Health Research Unit (WHRU) of the University of Johannesburg. The article also lays the foundation for further research in this field of study, facilitating engagement with a number of related debates such as those about satisfaction of life, vulnerability to poverty, the geography of deprivation and the mapping of poverty.
Conclusion : The main finding is that the government provides for many needs of the poor, especially in the deep rural areas. Only 18 percent of the sample households did not receive a state grant in 2007. This was an injection of R88 800 or 33,4 percent of the total income per month, which excludes the social wage in terms of free basic water, electricity, subsidised or free housing, health care subsidies and other support to poor people and rural communities. Of the 485 non-economically active people in the sample, more than 364 or 75 percent receive an income, mainly in the form of state grants. Education suggests itself as a route out of poverty, rather than the child grant and other subsidies that encourage poor people to have more children. Poor couples and single-member households fall through the safety net, because they do not qualify for state grants and have no children yet.
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Adapting SMME business functions during economic turmoil
Authors: Chantal Rootman and Janine KrugerSource: Acta Commercii 10, pp 107 –119 (2010)More LessPurpose : The purpose of this study is to investigate how SMMEs should adapt their business functions to improve business performance during times of economic turmoil.
Problem investigated : SMMEs are important contributors to the economy as these firms provide employment opportunities and create economic wealth. However, many SMMEs fail due to reasons such as the influence of economic factors (low sales and growth prospects) as well as the lack of finance, managerial skills and expertise. SMMEs could possibly increase their chances of success if they adjust aspects in their firms which the owners and managers of the SMMEs can control. Business functions are regarded as internal forces influencing a firm and SMME owners and managers can control these functions. These business functions include general and strategic management, purchasing management, production management, marketing management, financial management, human resources management, business communication management and information management. It is important to investigate how SMMEs can adapt their business functions, during difficult economic times, to improve their business performance.
Methodology : A self-developed, self-administered and structured questionnaire was distributed to 300 SMMEs in the Eastern Cape and the Garden Route area. A total of 250 usable questionnaires were received, therefore a response rate of 83% was obtained.
Findings and implications : The findings of this study revealed that all eight of the business functions require adjustments during difficult economic times to improve the business performance of SMMEs. Respondents regarded the financial management function as the area in SMMEs that needs the most focus and adjustments, during challenging economic times to improve business performance. Following financial management is the purchasing- and information management business functions.
Originality and value of the research : This study specifically focussed on how SMMEs should adapt their business functions during economic turmoil to improve business performance. This type of study has never been conducted in South Africa. The results and recommendations contribute to SMMEs understanding of how to change their business functions to improve business performance, especially during difficult economic times. The implementation of these recommendations may lead to improved business performance and higher levels of success among SMMEs in South Africa, which will be beneficial to the economy.
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An assessment of the determinants of successor development in family businesses
Author S.P. Van der MerweSource: Acta Commercii 10, pp 120 –136 (2010)More LessPurpose : The primary objective of this study is twofold: Firstly, to assess some of the determinants of successor development in family businesses with the focus on the role of the senior generation family members, and secondly, to make practical recommendations on actions that families can take to ensure successful management succession.
Research methodology : The construct validity of the measuring scale was assessed by means of an exploratory factor analysis and by calculating Cronbach alpha coefficients. Thereafter, the correlation between the variables was explored by means of correlation analysis, t-tests and effect sizes.
Findings : In this study the exploratory factor analysis provides some evidence of construct validity, but further research is needed before the measuring scale can be utilised to diagnose these issues in small and medium-sized family businesses. It is recommended that more advanced statistical procedures for scale validation, such as structural equation modelling, should be utilised in further development of the questionnaire. Supplementary research on the use of the measuring scale is also necessary to refine its norms.
Practical implications : The importance for family businesses is that a better understanding of the determinants of the senior generation's role in the development of the prospective successor could contribute to the successful transfer of the business from the senior to the younger generation family members. It is, however, important to provide feedback on the diagnosis based on the proposed scale to individual family businesses.
Originality / Value : Understanding the determinants of the role of the senior generation owner-manager in the development of the prospective successor is important to sensitise both role-players', as well as the senior and younger generations regarding their expectations, fears and needs in the process. This makes this measuring scale a useful tool to identify the state of these factors in the family business.
Conclusion : This study confirms the important role that the senior generation family members play in the development of the younger generation successors to ensure that the prospected successor is competent to successfully manage the family business after management succession and to ensure the sustainability of the family business.
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Expenditure-based segmentation of visitors to the Tsitsikamma National Park
Authors: M. Kruger, M. Saayman and A. SaaymanSource: Acta Commercii 10, pp 137 –149 (2010)More LessPurpose and / or objectives : The purpose of this article is to apply expenditure-based segmentation to visitors at the Tsitsikamma National Park. The objective of the research is twofold, to identify the socio-demographic and behavioural variables that influence spending at the Tsitsikamma National Park and to make recommendations on how to attract the high-spending market.
Problem investigated : The Tsitsikamma National Park is Africa's oldest and largest marine reserve and plays a vital role in the preservation and conservation of marine fauna and flora. The park is also a popular holiday destination for international and local tourists and therefore plays an important role in the regional economy. Due to the importance of the park to the community and region, the Tsitsikamma National Park needs to attract more high spenders since this will contribute to the sustainability of the park. Expenditure-based segmentation is regarded as the best method for creating a profile of the high-spending market.
Design and / or methodology and / or approach : To achieve this, tourist surveys from 2001 to 2008 were used. In total, 593 questionnaires were used in the analysis. Statistical analysis was done by applying K-means clustering and Pearson's chi-square as well as ANOVA analysis.
Findings and / or implications : The research revealed that the province of origin, group size, length of stay and accommodation preference have a positive influence on higher spending.
Originality and / or value of the research : Even though this type of research has been done for the Kruger National Park, a more innovative approach was followed by using K-means clustering, which is also the first time that this approach was used in determining the high-spending market at the Tsitsikamma National Park.
Conclusion : Two distinct markets were identified. These were the high and low spenders where the most significant differences were with regard to province of origin, group size, length of stay and preferred type of accommodation. Interestingly, aspects such as owning a Wild Card (which is a loyalty card) showed no significant difference. The same applied for age, marital status or frequency of visits. Therefore, the results (if one compares this research with that done at the Kruger National Park) confirm that the size of operations and activities available have a dual impact.
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The role of demographics in students' selection of higher education institutions
Authors: M. Wiese, C.H. Van Heerden and Y. JordaanSource: Acta Commercii 10, pp 150 –163 (2010)More LessPurpose : To investigate the choice factors students consider when selecting a higher education institution, with a focus on the differences between gender and language groups.
Problem investigated : The educational landscape has seen several changes, such as stronger competition between institutions for both student enrolments and government funding. These market challenges have led to an interest in students' institution selection processes as it has implications for the way higher education institutions (HEIs) manage their marketing and recruitment strategies. The research objective of this study was to identify the most important choice factors of prospective South African students. It also aimed to determine if any gender and language differences exist with regard to students' institution selection processes.
Methodology : A convenience sample of 1 241 respondents was drawn, representing six South African universities. A self-administrated questionnaire was used to collect the data. Questions from the ASQ (Admitted Student Questionnaire) and CIRP (The Cooperative Institutional Research Programme) were used and adapted to the South African context after pilot testing. Hypotheses were analysed using the multivariate analysis of variance (MANOVA) test with Wilks' lambda as the test statistic.
Findings / Implications : Irrespective of gender or language, the most important choice factor for respondents was the quality of teaching at HEIs. The findings showed that males and females differ according to the selection of certain choice factors which suggest that HEIs can consider recruitment strategies for each gender group. Significant differences between the language groups were found for 17 of the 23 choice factors, signalling that different language groups make decisions based on different choice factors. African language-speaking students have, amongst other, indicated that the multiculturalism of the institution is a very important choice factor for them.
Conclusion : The findings provide HEIs with an indication of the importance of choice factors considered by students in selecting a HEI. This will enable HEIs to use their limited funds more efficiently to attract the right calibre student (recruitment policies), to create a unique position, to segment the student market more appropriately and to gain a competitive advantage.
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Barriers to e-marketing adoption among small and medium enterprises (SMEs) in the Vaal Triangle
Source: Acta Commercii 10, pp 164 –180 (2010)More LessPurpose : The purpose of the study is to complement existing literature by examining the relevant barriers contributing to the non-adoption of electronic marketing practices by SMEs in the Vaal Triangle.
Methodology : Primary data was collected using a quantitative research technique with the use of a structured questionnaire as the survey instrument. A total of 168 businesses were selected randomly and visited within the various municipal areas in the Vaal Triangle. These businesses were visited between August and November 2008. Thirty-two small, medium and medium enterprises SMEs refused to participate resulting in 123 usable questionnaires for the purposes of the analysis. Factor analysis was used to examine the robustness of the factor structure using principal component analysis.
Findings : A five-dimensional structure was established comprising a 16 item-scale. The major impediments towards the non-adoption of e-marketing include technology incompatibility with target markets, lack of knowledge, stakeholder unreadiness, technology disorientation and technology perception. The reliability analysis, reflected coefficient values ranging from 0.70 to 0.88 indicating satisfactory internal consistency amongst variables within each dimension.
Implications : By analysing the barriers that inhibit the adoption of e-marketing strategies among SMEs, marketers are presented with recommended strategies and implications on how to approach the challenges presented by Internet technological advancements. Internet capacities of SMEs may be strengthened through nurturing e-marketing awareness and providing adequate information tools through diverse Internet Marketing training programmes.
Originality / Value : SMEs can prove to be a major source of economic growth for many African countries if sufficient guidance and support on how best to overcome the challenges of adopting advanced marketing practices is available.
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Empirical testing of Kotler's high-performance factors to increase sales growth
Authors: O. Dayan, C.A. Arnolds and M. StruwigSource: Acta Commercii 10, pp 181 –202 (2010)More LessPurpose and / or objectives The primary objective of this study is to empirically test Kotler's (2003) high-performance model which ensures an increase in sales growth. More specifically, the study explores the influence of process variables (as measured by marketing strategies), resources management (as measured by the management of labour, materials, machines, information technology and energy) and organisational variables (as measured by TQM and organisational culture) on sales growth in the food, motorcar and high-technology manufacturing industries.
Problem investigated Various research studies suggest that the managers of firms are continuously challenged in their attempts to increase their sales (Morre, 2007; Pauwels, Silva Risso, Srinivasan & Hanssens, 2004: 142-143; Gray & Hayes, 2007: 1). Kotler (2003) suggests a model that leads to a high performing business. The question is posed as to whether this model can be used to increase sales growth in all businesses. This study seeks to develop a generic model to increase sales growth across industries by using an adapted version of Kotler's (2003) high-performance model. The study investigates the application of this adapted model on the food, motorcar and high-technology manufacturing industries.
Design and / or methodology and / or approach An empirical causal research design that includes 770 marketing and product development practitioners from multinational food, motorcar and high-technology manufacturing firms, was used in this study. A response rate of 76.1% was achieved as only 571 useable questionnaires were returned.
The internal reliability and discriminant validity of the measuring instrument were assessed by the calculation of Cronbach alpha coefficients and the conducting an exploratory factor analysis respectively. Structural Equation Modelling SEM) was used to statistically test the relationships between the independent variables (marketing strategies, resource management, TQM and organisational culture) and the dependent variable (sales growth).
Findings and / or implications As the achievement of increased sales, profits and market share is important to all industries, companies spend large amounts of money on research and development to increase sales and market share. The study's empirical results lead to a proposed model that shows the factors influencing sales growth. These factors include distribution channel development, third-party agreements, e-business, e-savings and a market-oriented organisational culture.
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Using executive information systems as a business management tool in listed Johannesburg Stock Exchange (JSE) companies : an exploratory study
Authors: E. Papageorgiou and H.E.C. De BruynSource: Acta Commercii 10, pp 203 –217 (2010)More LessPurpose : The aim of the study is to investigate the extent and use of Executive Information Systems (EISs) as a business management tool in listed Johannesburg Stock Exchange (JSE) companies.
Problem : This study is important in order to establish the existence of EISs in these companies and whether it is being used as a business management tool to analyse and measure companies' performances.
Research Methodology :The research methods were both quantitative and qualitative in nature and are based on the literature study, questionnaire and interviews.
Findings and conclusion :The findings of the study provide evidence that companies with an EIS or planning to implement an EIS view it as an excellent business management tool. This tool has built-in features, is critical for real-time decision-making, solves problems and creates a competitive edge.
Value of the research :The value of the study adds to the current understanding and awareness of EISs. EISs create an environment in which business and management can enhance sustainability and strategic competitiveness.
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Drivers and moderators of business decline
Author Marius PretoriusSource: Acta Commercii 10, pp 218 –233 (2010)More LessPurpose: Reports of business failure elicit various reactions, while research in this domain often appears to be limited by a lack of access to information about failure and by the negativity that surrounds it. Those who have experienced failure do not readily talk about it, or they disappear from the radar screen of researchers. Yet failure is preceded by decline which, when focused on strategically, can reduce eventual failures if early action is taken. The main purpose of this study is to develop a conceptual framework or typology of the drivers and moderators of business decline.
Design/methodology/approach: After applying the "grounded theory" approach to the academic literature on decline and failure, a conceptual framework for the variables that drive and moderate business decline is proposed.
Findings: The study proposes that decline has three core drivers, three peripheral drivers and four moderators. The core drivers identified are: resource munificence; leadership as origin; and causality (strategic versus operational origin of decline). The three peripheral drivers are: unique preconditions; continuous decisions impact; and extremes dichotomy. The study describes four moderators of the drivers: life cycle stage; stakeholder perspective; quantitative versus qualitative nature of signs and causes; and finally the age and size effects.
Research limitations/implications: The proposed conceptual framework is based on literature only, although it has found support during discussions with practitioners. It is proposed to readers of this journal for scrutiny and validation.
Practical implications: Strategists need to understand what drives decline in order to act timeously; practitioners who have an insight into the moderators with their impacts could make better decisions in response to decline in organisations and possibly avoid business failure.
Originality/Value: Understanding business decline is still a huge theoretical challenge, which drives turnaround strategies chosen by management. The proposed conceptual framework has this as its focus.
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The relevance of operational skills towards business sustainability : a focus on SMME manufacturers in the Vaal triangle region
Source: Acta Commercii 10, pp 234 –248 (2010)More LessPurpose : Activities in the manufacturing sector are often considered the bedrock of an economy and a key driver of growth and development. Within the South African manufacturing sector, operations skills are reported to be deficient and are often cited as a main cause of failure in small, medium and micro enterprises (SMMEs). This study explores and tests this fragile relationship between operations skills and SMME sustainability. Empirical investigations are conducted in a high-density SMME manufacturing environment - the Vaal Triangle Region.
Design / Methodology / Approach : Building on previously established literature on SMME sustainability and operations skills, various measures are developed and tested for reliability and validity. Factor analysis is used to identify relevant factors in terms of operations skills. Co-relational analysis is then employed to test the hypothesised relationship. The study is cross-sectional in design and relies on trained fieldworkers administering surveys for data collection.
Findings : Five clear factors for operations skills are identified through factor analysis with an overall high reliability value. Based on descriptive and co-relational analysis results reveal that operations skills are positively associated with sustainability.
Implications : SMME owners, educators and service providers may benefit from the study's findings in terms of the nature and associations that operational skills have on developing sustainable SMME's.
Originality / Value : The study focused on a neglected area of SMMEs - the importance of operations towards business sustainability, and made an important contribution towards theory development through empirical explorations. In South Africa, this is the first time an instrument measuring operations skills has been validated and associated with SMMEs in a manufacturing context.
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A conceptual framework to improve the delivery capability of an organisation
Authors: C. Marnewick and L. LabuschagneSource: Acta Commercii 10, pp 249 –263 (2010)More LessPurpose : The article focuses on organisations' capability to deliver their vision and strategies through the use of project management and, in particular, the project delivery capability of organisations themselves.
Problem investigated : Although quantitative evidence does exist that organisations do receive value from project management, the track record of failed projects shows the opposite. This can be attributed to the fact that there is no holistic approach in the implementation of project management, which means that organisations do not receive the value they are supposed to get from project management.
Design and / or methodology : The problem of a holistic approach is addressed through a theoretical framework that shows the various building blocks of project delivery capability as well as the relationship between the various components within the building blocks. The benefits of such a holistic framework are the improvement of project delivery capability and an understanding of what is required by organisations to ensure that the value is realised.
Findings : The article lists three levels of management as well as two dimensions, i.e. proficiency and organisational requirements, that form the Project Management Capability Delivery Framework. The PMCDF provides a holistic framework that can be utilised to increase project success within organisations.
Originality / value : The value of this article is that the holistic view provides organisations and the project management office ultimately with a way to manage projects, programmes and portfolios within the organisation, taking into account the synergy that is required. Components can no longer be managed in isolation.
Conclusion : The conclusion can be drawn that although there are various aspects and components within the PM discipline, these affect other components and are interrelated. Without this holistic view, efforts to improve delivery capability could prove to be fruitless.
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NETWORK, HOW? Perceptions of business people on networking practices
Authors: S. De Klerk and M. GreeffSource: Acta Commercii 10, pp 264 –280 (2010)More LessPurpose : The purpose of this paper was to contribute to literature on networking from a South African perspective. Literature on networking is mainly concentrated on the European and American contexts with homogeneous groups and traditional divisions. The business landscape of South Africa thus requires more investigation.
Problem investigated : Literature regarding networking in an South African context with its dynamic business environment is limited. This article addresses the concerns of how South African business owners and managers perceive networking in their businesses and specifically focus on the South African perspective. Therefore, the focus is on the perceptions of business owners and managers on current networking practices in South Africa.
Methodology : A qualitative research design to uncover the rich underlying feelings of business owners and managers was used. The qualitative enquiry consisted of five focus group discussions (n=41 participants) among prominent business owners and managers in the Gauteng Province, South Africa. The Gauteng Province was selected since it is the economic and innovation hub of South Africa.
Findings and implications : The main findings showed the following main themes of networking that emerged from the data, and included (1) networking as a skill versus a natural ability; (2) the motivation behind networking; (3) the loci of networking; (4) the type of relationships that determine the character of the network; and (5) the relationship characteristics of successful networking. The main contribution of this is that there seems to be different networking situations and applications for different circumstances. According to the participants, it seems that networking in the South African landscape appears to be either relationship or business based.
Originality and value of the research : The value of these findings lies in the fact that they contribute to networking literature from a South African perspective and that networking skills form an important part of management and entrepreneurship. The conclusion is that this research supports the notion that networking skills are important and should be developed on a wider basis. Formal courses on networking or incorporation in existing management training and development courses need to be implemented on all levels by educational institutions and government.
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Forecasting tourist arrivals in South Africa
Authors: A. Saayman and M. SaaymanSource: Acta Commercii 10, pp 281 –293 (2010)More LessPurpose: The aim of this paper is to model and forecast tourism to South Africa from the country's main intercontinental tourism markets. These include Great Britain, Germany, the Netherlands, the United States of America and France.
Problem investigated: Tourism to South Africa has grown substantially since the first democratic elections in 1994. It is currently the third largest industry in the country and a vital source of foreign exchange earnings. Tourist arrivals continue to grow annually, and have shown some resilience to a number of emerging market crises, including the terrorist attacks in the USA. Business success, marketing decisions, government's investment policy as well as macroeconomic policy are influenced by the accuracy of tourism forecasts, since the tourism product comprises a number of services that cannot be accumulated. Accurate forecasts of tourism demand are paramount to ensure the availability of such services when demanded. In addition, the seasonal nature of tourism leads to a pattern of excess capacity followed by shortage in capacity.
Method: Since univariate time series modelling has proved to be a very successful method for forecasting tourist arrivals, it is also the method employed in this paper. The naïve model is tested against a standard ARIMA model, as well as the Holt-Winters exponential smoothing and seasonal-non-seasonal ARIMA models. Forecasting accuracy is assessed using the mean absolute percentage error, root mean square error and Theill's U of the various models. Monthly tourist arrivals from 1994 to 2006 are used in the analysis, and arrivals are forecasted for 2007.
Findings: The results show that seasonal ARIMA models deliver the most accurate predictions of arrivals over three time horizons, namely three months, six months and 12 months.
Value: This paper is the first tourist arrivals forecast using South African data for the country as a whole, and therefore it forms an interesting case study as a long haul and growing tourist destination.
Conclusion: The univariate forecasts provide fairly accurate forecasts of tourist arrivals in South Africa, especially over the short run. As such, it is understandable why it remains a popular approach to forecast tourist arrivals. However, this method does not make provision for assessing the influence of external events and therefore its policy application is limited.