Acta Commercii

Orientation: Agency theory predicts that agency relationships are subject to the principalagent problem. Other theories also suggest that executives may tend to maximise sales revenues, or expand their spans of influence through growth, at the expense of the net value of the firm or its profitability.

Research purpose: The purpose of this study is to test which forms of company performance are associated with higher executive variable pay ratios or determine the proportion of variable director remuneration to total remuneration.

Motivation for the study: The extent to which variable remuneration is associated with different types of firm performance is unclear.

Research design, approach and method: This study applies a simple panel regression model to test the extent to which the variable ratio of total director remuneration contributes differently to increases in firm revenue, total assets, return on assets, or measures of Tobin’s Q. These relationships are tested for listed companies on South Africa’s Johannesburg Stock Exchange, South Africa, for the years 2011–2014.

Main findings: Variable remuneration is found to be negatively and strongly related to total revenue and negatively and weakly related to total assets (the gross measures of performance). In contrast, variable remuneration is weakly and positively related to Tobin’s Q, a measure which better reflects the interests of shareholders than gross measures.

Practical/managerial implications: Firms in this context should seek to strengthen the linkages between variable remuneration and forms of performance that reflect the interests of stakeholders.

Contribution/value-add: In the wake of global and local governance failures, this study suggests that the use of the variable component of executive remuneration might be helpful in aligning stakeholder interests. Further research might seek to better understand the causal mechanisms that underlie these findings.

Orientation: Poor intergenerational survival rate of family-owned agribusinesses is a matter of serious concern in family business literature. Ageing population of senior leaders and a lack of commitment from the next generation are often cited as the main contributing factors.

Research purpose: The purpose of this research was to investigate the relationship between cognitive factors (self-efficacy and entrepreneurial intentions) and commitment of the next generation in family-owned agribusinesses.

Motivation for the study: Family business literature is extensive regarding the phenomena of high failure rate amongst family-owned business, and agribusinesses are not immune to this phenomenon. However, previous research has focussed more on situational factors that relate to ‘contextual’ environment surrounding the individual, whilst little research has focussed on ‘cognitive’ (person-related) factors.

Research design, approach and method: Following a positivistic paradigm, a cross-sectional design was followed using a quantitative self-administered questionnaire through multi-stage probability sampling, resulting in a sample of 125 next-generation individuals in family-owned agribusinesses. The data was subjected to an exploratory factor analysis and Pearson’s correlation test.

Main findings: The results revealed that there was a significant relationship between selfefficacy, entrepreneurial intentions (person-related factors) and commitment of the next generation. Furthermore, the relationship between self-efficacy and entrepreneurial intentions was also found to be positively significant.

Practical/managerial implications: A committed, willing and ready next generation is a prerequisite for effective succession in family businesses, given the expected exodus of a large cohort of senior leaders. Therefore, succession planning, especially from the successor’s side, needs effective management. Investment in career planning and development of the next generation is a step in the right direction.

Contributions/value-add: Given the dearth of research exploring successor-related factors affecting succession, the current article adds to the literature by examining the relationship between person-related factors (self-efficacy and entrepreneurial intentions) and commitment (behavioural outcome) of the next generation within the realm of agribusiness development.

Orientation: Increasingly, there is an urgent need to curb the scourge of counterfeiting, which is fast becoming a global economic threat with severe implications on employment creation and societal well-being.

Research purpose: The aim of this study was to examine the effect of rational and normative factors on consumers’ willingness to buy counterfeit sportswear in South Africa. Motivation for the study: This study contributes input to the development of long-term strategies of curbing the escalating scourge of counterfeiting in the sportswear sector.

Research design, approach and method: The study was conducted in South Africa’s southern Gauteng region and Johannesburg central business district, which are considered to be amongst the major counterfeit sportswear promoting segments in South Africa. Cross-sectional data were collected from a convenient sample of 390 respondents. Study hypotheses were tested using standard multiple regression analysis.

Main findings: Perceived financial control and subjective norm emerged as the main factors that engender favourable attitudes towards counterfeit products. Furthermore, attitude towards counterfeits had a strong positive effect on consumers’ willingness to purchase counterfeit sportswear.

Practical/managerial implications: The findings of this study suggest that a combination of normative and rational strategies have the potential to change consumers’ attitudes and willingness to purchase counterfeit sportswear.

Contribution/value-added: The study findings highlight the importance of attempting to address the problem of counterfeiting not only from a regulatory perspective but also from a rational and normative perspective.