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- Volume 2, Issue 1, 1999
South African Journal of Economic and Management Sciences - Volume 2, Issue 1, 1999
Volumes & issues
Volume 2, Issue 1, 1999
Origins of economic instability: real, financial or both? Part I: an account of Minsky's Financial Instability HypothesisAuthor J.S. HartSource: South African Journal of Economic and Management Sciences 2, pp 1 –20 (1999)More Less
The 1990s have put the issue of global economic stability under the spotlight. This calls for a re-examination of the economic theory surrounding the subject. Here a three-fold classification is useful. The first grouping locates the source of stability in the workings of the real sector of the economy. A second, following Hyman Minsky, contends that instability arises in the financial sector. A third grouping draws on a distinction by Schumpeter to argue that any effective analysis of stability or instability requires a theoretical framework that integrates both the real and financial sectors at the most basic level. In the light of the current financial crisis which originated in South-East Asia, the second grouping appears most relevant. Part II will give an appraisal of Minsky's theory.
Small, medium and micro-sized enterprises (SMMEs) and the housing construction industry: a possible solution to South Africa's socio-economic problemsSource: South African Journal of Economic and Management Sciences 2, pp 21 –33 (1999)More Less
South Africa as a developing country faces many socio-economic problems like high unemployment, low levels of working skills, poverty and rampant crime. In this paper it is argued that by targeting SMMEs both in general and specifically in the housing construction industry, there is meaningful scope for the creation of jobs in the South African economy. This is mainly because SMMEs are labour intensive. Using Endogenous Growth theory as a basis, it is argued that by employing greater numbers of workers the level of skills in the economy can be raised too.
Source: South African Journal of Economic and Management Sciences 2, pp 34 –53 (1999)More Less
The providers of professional sport are influenced by the ever-changing nature of sport as a form of entertainment and its subsequent effect on relationship building in the new millennium. The continuous aim of building relationships of high quality in a lucrative business field can only be achieved by means of effective marketing. In order to ensure marketing effectiveness, the quality of the relationship with spectators is a crucial success factor, influenced by the length of the relationship, value for money and the propensity to leave. An empirical study was undertaken in a sporting environment which investigated the quality of the clients' (season ticket holders') current relationship with the service provider (sporting union). An exposition is also given of the methods and procedures used in the study.
Source: South African Journal of Economic and Management Sciences 2, pp 54 –76 (1999)More Less
The analysis is based on survey data collected from small and large sugarcane farms during 1995 in the North Coast region of KwaZulu-Natal. A non-parametric research procedure to analyse farm efficiency was employed. Results indicate that farms smaller than eight hectares exhibit substantial economies of size; such economies tend to decline with size of enterprise; and farms larger than 10 hectares appear to have near constant returns to scale. This implies that efficiency of very small scale sugarcane farms can be enhanced by land consolidation while giving small scale farmers larger than 10 hectares access to the large scale commercial sector, may not lead to a loss in efficiency. Results are relevant as South Africa is embarking on settling small scale farmers on former large scale commercial farm land.
Technical efficiency analysis of Fiji's sugar industry: an application of the stochastic frontier production function approachSource: South African Journal of Economic and Management Sciences 2, pp 77 –92 (1999)More Less
Small developing countries have for long acquired significant benefits through preferential trading arrangements. However, these benefits have led to a proliferation of inefficient industries in the recipient countries. With the recent changes in the GAIT, these inefficient industries may close and thus lead to major economic and social problems in the recipient countries. This paper utilizes the frontier production function approach to examine the efficiency status of Fiji's sugar industry. The analysis reveals that a significant level of inefficiency exists at the farm level of Fiji's sugar industry. Some of the factors that were found to affect the level of efficiency are farming status, land class and ethnicity. These factors are then used to derive policy implications.
Author M. FletcherSource: South African Journal of Economic and Management Sciences 2, pp 93 –114 (1999)More Less
The main problems in service quality programmes seem to stem from methods and strategies used rather than actual service quality improvement itself. The present study is based on a questionnaire survey of organisations that had in fact implemented a service quality strategy. Several organisations studied here, indicated that the implementation of these programmes without measuring results, ended up wasting resources on non-value adding uses. This can be partly attributed to the complexity of available software. Another problem arises because organisations fail to understand the dynamics of change. Service quality was thus seen as a quick fix, treating symptoms instead of underlying problems. This study concludes that organisations should implement such strategies not only with commitment but correct and with relevant information and knowledge.
Author K.K. GovenderSource: South African Journal of Economic and Management Sciences 2, pp 115 –127 (1999)More Less
In financial services marketing, especially among banks, there is limited opportunity to impress the customer because services are becoming more automated. This paper reports the findings of a mail survey using self- administered questionnaires, conducted among a random sample of 1050 bank customers. From a usable sample of 190 respondents, it was found that the customers' perception of the overall service quality [SQUAL] is positively associated with their perception of the bank employees' service quality [EQUAL]. This implies that service firm managers need to understand what kind of employee behaviour most effectively serves to satisfy customers, and also discover ways to foster such behaviour by their customer contact employees. An agenda for future research is proposed.
Author G.M. Jooste, L. & DekkerSource: South African Journal of Economic and Management Sciences 2, pp 128 –142 (1999)More Less
The aim of this study is to determine whether the cash flow statement succeeds in increasing the usefulness of financial data to parties interested in the results of specific companies and related institutions. This South African study uses the same industries as those in a similar study by Giacomino and Mielke (1993) in the USA. The industries concerned are chemicals and oils, food and electronics. Relative performance was measured by calculating nine sufficiency and efficiency ratios. These ratios were calculated for each institution in the industry; weighted averages were also calculated for each industry. The results were compared with the norms developed for American institutions. All the listed South African companies in the industries concerned were included in the study.
Author Richard IlorahSource: South African Journal of Economic and Management Sciences 2, pp 143 –156 (1999)More Less
The availability of oil resources in Nigeria has had a profound impact on the economy, particularly the economy's sectoral structure. Although the oil sector itself never did put pressure on the other sectors directly, since its labour requirements were negligible, the policy response by the authorities towards the oil revenue inflicted adverse effects on the agricultural sector. Exchange rates appreciated both in nominal and real terms, the latter considered to be a spending effect of the oil boom. Consequently, labour costs increased in terms of the exogenously determined agricultural product prices. The oil resource, undoubtedly, contributed to Nigerian agricultural deterioration.
Source: South African Journal of Economic and Management Sciences 2, pp 157 –175 (1999)More Less
The management of diversity manifests itself in a very specific way in Israeli society. This is so because the management process occurs at two levels: a national-political level (first order processes) and the individual enterprise level (second order processes). The interactive nature of the two processes ultimately results in most diverse national groups working together productively towards both national economic and individual goals. Inclusiveness is a property widely found in the average Israeli enterprise. The purpose of this paper is to describe the unique Israeli approach to the management of their diverse workforce, with a view to identifying possible applications for South Africa. The study shows that South Africa has a lot to learn before we can hope to succeed in effectively managing our diverse rainbow nation.