PPM Papers Coming Soon
This section contains information about articles which are already reviewed, accepted and waiting for publication in next issues of the journal.
Dispositional and situational determinants of legal claiming behaviors
Cody Logan Chullen, Ph.D., Department of Management, College of Business, East Carolina University, USA
Abstract. This paper proposes why certain employees move beyond affective reactions to mistreatment across a continuum of behaviors towards formal lawsuits against their employers. In particular, employees' consideration of litigation is influenced heavily by dispositional and situational factors that directly interact with their organizational justice perceptions of managerial decisions. Environmental, organizational, and demographic variables should help shape organizational psychology and thus more fully explain employee-initiated litigation.
Transformational leadership and change readiness and a moderating role of perceived bureaucratic structure: an empirical investigation
Badri Abbasi, Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran
Abstract. The purpose of this study was to examine the relationship between transformational leadership and change readiness through perceived bureaucratic structure among government employees in Rasht. The methodology used was applied descriptive method using questionnaire to collect data. The studied population consisted of 600 employees from three state organizations including Municipality, Gilan Tax Department and Gilan Justice Court. According to Morgan table, the sample size was estimated at 234. This study examined six hypotheses which were tested using multiple regression method. The results showed that transformational leadership had a positive direct effect on employee change readiness and its dimensions. However, substitution of the bureaucratic structure in the model eliminated the effect. Finally, the hypothesis on the effect of transformational leadership on change readiness through perceived bureaucratic structure was rejected.
The relationship among change implementation, job satisfaction and organizational citizenship behavior in the BPO industry in South Africa
George N. Muzanenhamo, Faculty of Business & Management Sciences, Cape Peninsula University of Technology, South Africa
Abstract. The unique and dynamic Business Process Outsourcing (BPO) industry in South Africa strives to thrive in a challenging business environment with the attendant need for stability, loyal and satisfied workforce. An empirical investigation was therefore conducted utilizing managerial and non-managerial employees in a stratified sampling technique. Questionnaires were administered to 250 employees from four selected organizations. The essence was to examine the nature of the relationship among change implementation, job satisfaction and organizational citizenship behavior (OCB). Four significant results emerged. Firstly, there is a positive but moderate relationship between change implementation and OCB; there is a high or strong positive relationship between change implementation and job satisfaction; there is a positive but moderate relationship between OCB and job satisfaction; and lastly the results confirm the assumption that job satisfaction moderates the relationship between change implementation and OCB. BPO firms need to understand the effects of change implementation on OCB and job satisfaction. This is because change management is inevitable in the BPO industry; therefore organizations have to be constantly alert to tackle its demands.
The German corporate governance code and its adoption by listed SMEs - just another ‘Procrustes bed'?
Thomas Steger, Ph.D., Professor, University of Erlangen-Nürnberg, Germany
Abstract. The discussion of companies' compliance with corporate governance standards and codes has widely neglected the situation of small and medium-sized enterprises (SMEs). Accordingly, the authors examine a sample of 151 SMEs listed on the Frankfurt Stock Exchange in 2006 (before the financial crisis) and 2012 (after the financial crisis) and, thus, required to declare whether they comply with the recommendations of the German Corporate Governance Code or not. While code compliance seems to be quite homogenous comparing different branches, the authors found that company size has a positive impact on code compliance. With regard to a remarkably high number of recommendations a lot of companies do not comply to, company size might be a major problem, why the existing GCGC does not fit very well to the situation of SMEs. This is why, most remarkably, code compliance does not exert any significant influence on either market reaction or on operating performance of SMEs.
SMEs: do they follow a shotgun or rifle approach when it comes to target marketing?
Michael C. Cant, D.Com. Marketing Management, Research & Development Professor, Department of Marketing and Retail Management, University of South Africa, South Africa
Abstract. As SMEs are the drivers of employment and GDP in many cases, SMEs are also critical to the development of any economy and their survival and success are, thus, important. With the high levels of failure of SMEs it has become imperative that there is a drive to ensure the survival of SMEs. A way in which SMEs, can enhance their potential success rate and business performance is by means of proper target market selection in order for the business to focus their marketing efforts. This will allow the business to timeously identify opportunities and threats in the market and to react to these situations. The business will also have a greater understanding of their target market, and their needs and wants. Understanding the target market will assist the business in developing marketing strategies that are suited for the target market and enhance its chances of success. This study aimed to identify whether SME owners and managers have target market knowledge within a South African SME context. The main results indicate that although SME owners and managers claim they are aware of their specific target markets (90%), they do not have customer knowledge regarding the psychographic and demographic aspects of their target market. By using effective target marketing communication, SMEs can improve on their merchandising planning and product assortment and offerings to better serve their target market(s).
Discretionary disclosures: reactivity and proactivity in the chairpersons' statements of JSE-listed companies in South Africa
Nthabeleng Mmako, PhD student, Lecturer, Department of Entrepreneurship, Supply Chain, Transport, Tourism and Logistics Management, University of South Africa, South Africa
Abstract. A review of the literature on corporate governance and narrative disclosures highlights the need for assessment of the formulation of the chairperson's statement. This research is justified as corporate reporting today is more integrated. The significance of the study may be that even though only the chairperson's statement is investigated, it may be a good starting point for understanding how change is ushered into an organization and from what perspective this takes place. Findings of content analysis of 100 Johannesburg Stock Exchange (JSE)-listed chairperson's statements suggest that as part of the communication intended mainly for investors and other stakeholders of the company, the chairperson's statement is written as a reactive statement to environmental factors or as a proactive statement to counter environmental factors that may affect or have affected the company's performance. This study will be useful in helping readers to improve their understanding of a company's efforts to communicate with them, from the chairperson's perspective.
A synthesis of changing patterns in the demographic profiles of urban street vendors in Botswana, South Africa and Zimbabwe
Gwendoline Vusumuzi Nani, Department of Business Management, National University of Science and Technology, Zimbabwe
Abstract. Street vending is a phenomenon that has been in existence for hundreds of years. It has since increased owing to economic challenges experienced, especially in developing countries. This paper sought to highlight changing patterns in the demographic profiles of urban street vendors in Botswana, South Africa and Zimbabwe through a desk research study. The aim was to sensitize local governments, particularly in Zimbabwe, to develop appropriate policies in line with changing patterns in the demographic profiles of urban street vendors. Findings revealed that there has been an increase in the number of single and married women in urban street vending; more young people have joined this practice and more educated people are also part of urban street vendors. The study concluded that street vending is a dynamic phenomenon with changes having been noticed in gender, marital status, age and level of education of urban street vendors. Recommendations were that local governments need to re-visit policies pertaining to planning for urban street vending in line with the changing circumstances.
Factors influencing the perceptions of youth entrepreneurship development in South Africa
Germinah Evelyn Chiloane-Tsoka, School of Operation and Management sciences, University of South Africa, South Africa
Abstract. Youth unemployment is one of the central concerns affecting global economics in the world today. The recent World Economic Forum held at Davos prioritized the discussions on issues confronting youth unemployment. The International Labour Office (ILO, 2013) projected a global youth unemployment rate of 12.7% by 2017. According to the ILO, (2013), 202 million people are unemployed globally and 40% are under the age of 24. South Africa fares even worse. Statistics SA (2012) indicates that 71% of the unemployed are aged 25-34 and the unemployment rate among youth is 36%. About 3.3 million youth aged 15-34 are not employed or studying (Financial Mail, 7th February 2013). With this in mind, the paper intends to look at the perceptions affecting youth entrepreneurship development in South Africa and whether entrepreneurial education and training fosters the development of entrepreneurial orientation in the South African youth. A five point Likert Scale was used, 1 = Strongly disagree 3 = Neutral and 5 = Strongly agree. Furthermore, a quantitative research method was used and 132 grade eleven learners were purposefully selected randomly in Crawford high school in Gauteng. Findings indicate that entrepreneurship education and training can direct students towards certain career choices; secondly, planned behavior can be predicted; and thirdly, practically is able to increase the propensity of students to start a business.
Human capital intelligence and economic development
Alexander Maune, CIMA Dip. MA, B.Com., M.Sc., Ph.D., Post-Doctoral Research Fellow, CEMS, Department of Business Management, University of South Africa, South Africa
Abstract. This article explores human capital intelligence and economic development in Zimbabwe with some examples adopted from Israel and many other countries. A qualitative-exploratory literature review methodology was used for the purpose of this study because of its suitability. The primary concern of the author was to have and provide an in-depth analysis and understanding of the multiple realities and truths pertaining to human capital intelligence and economic development in Zimbabwe. An inductive approach was adopted for the purpose of this study. The findings of this article will make it possible to generalise the role of human capital intelligence towards economic development of a country and to develop some valuable propositions for future studies. The findings show that human capital intelligence plays a critical role in economic development, through laying a foundation for economic development, attracting foreign direct investment, personal remittances, as well as attracting venture capitalists. Empirical evidence from countries such as Israel shows the criticality of human capital intelligence development to economic development of a nation. This article will assist business managers, societal leaders, policymakers, as well as governments to understand the criticality of human capital intelligence towards the development of a company, society and nation at large. This article has, therefore, academic, societal and business value.
Crowdsourcing strategy: how openness changes strategy work
Kurt Matzler, Faculty of Economics and Management, Free University of Bolzano, Italy
Abstract. Strategy development has traditionally been exclusive and secretive. Social software offers new opportunities to harness the collective intelligence of the crowd within organizations and allows more open, participatory modes of strategizing. This paper describes this new phenomenon of open strategy though crowdsourcing and discusses its implications for research and practice. It draws on first examples of crowdsourcing strategy and is further based on observations and theoretical reflections. To understand the phenomenon with its requirements and consequences a number of questions and challenges are identified which remain to be investigated. These include how the process of opening up needs to be designed, how individuals can be motivated to engage, for which topics and under which conditions crowdsourcing strategy is a suitable approach, how strategies emerge in such initiatives, the appropriate role of management, and how corporate culture affects and is affected by crowdsourcing strategy. Open strategy through crowdsourcing is a newly emerging empirical phenomenon, which seems to fundamentally change the strategist's work. More open, and inclusive ways of strategizing offer new opportunities but also create some challenges for organizations. This paper deepens the insights in this new phenomenon and identifies seven topics critical for research and management practice.
Emotional labor in academe. Challenges faced
Nelesh Dhanpat, Department of Industrial Psychology and People Management, University of Johannesburg
Abstract. Interest in the study of emotions have always been present. Academic jobs are susceptible to multiple demands from various stakeholders. This paper presents the occasion to question whether academics are emotional laborers? The concept of emotional labor have been heavily investigated and researched in the customer service domain. Notably, emotional labor in higher education institutions are a relatively understudied research area. A theoretical framework of emotional labor is presented. It is essential to understand the demands that emotional labor place on academics and its impact on higher education institutions. Subsequently, the paper explores emotional labor among academic staff in higher education institutions, namely, the university system. The consequences and challenges of emotional labor are further evaluated. The paper is a conceptual meta-analysis and qualitative in nature. The study uses secondary data and reviews various literature on emotional labour, teaching and higher education institutions, and presents a conceptual paper. It considers the evaluation of academics in higher education institutions as emotional labourers. Literature was further probed to investigate academics as emotional labourers. Subsequently, the consequences and challenges were discussed. The paper further suggests that higher education intuitions need to be cognisant of the demands that emotional labour place on academic staff and the impact on their well-being. It is essential that the quality of work life of academics within higher education are addressed, as such studies are long overdue and under researched.
Determining shopping mall visitors' perceptions on mall attributes
Sipho Makgopa, University of South Africa
Abstract. The challenging retail environment necessitates a need to manage shopping malls effectively to understand the attributes that attract shopping mall visitors to visit shopping malls. The purpose of the study aimed to determine shopping mall visitors' perceptions or ratings towards shopping mall attributes they consider when choosing which shopping mall to visit. A quantitative approach was followed to realise research objective using interviewer-administered questionnaires for data collection. The data were collected at shopping centre in the capital city of South Africa, City of Tshwane. A descriptive analysis method was used to analyse the quantitative data. The findings of the study revealed that the shopping mall visitors' ranked adequate parking availability high. This study contributes to the current literature and provides valuable information to South African retailers and shopping mall developers, with regard to marketing communications and marketing strategies that aim to attract shopping mall visitors. Suggestions for future research are provided.
Best practice in entrepreneurship education
Cecile Nieuwenhuizen, Ph.D. Business Management, Head of Department, University of Johannesburg, South Africa
Abstract. This study identifies and discovers best practices in entrepreneurship education from highly-ranked universities and business schools globally. The study has been qualitative in nature, utilizing semi-structured interviews with 23 respondents at 12 higher education institutions. The study has made use of non-probability sampling by means of a convenience sampling approach. Data has been analyzed by means of thematic analysis. Results indicate that best practices in entrepreneurship education include little to no specialization at undergraduate level, with a strong preference for generic and widely applicable entrepreneurship modules. Individual entrepreneurship-related modules contain distinct individual themes. These modules are most commonly structured as electives, thereby allowing students to structure their courses according to areas of personal preference. At postgraduate level, it has been discovered that programs are often specialized in entrepreneurship and highly interdisciplinary in nature, most commonly with areas of specialization such as engineering and other sciences. Practical assignment and teaching tend to be favored in entrepreneurial teaching, rather than traditional classroom-based approaches. Entrepreneurship hubs and centers are mainly independent units loosely linked to a prominent university, with independent mandates and processes. The best practices identified in this study will assist universities and business schools to effectively structure entrepreneurship curriculums in line with global best practices.
Investigating the use of strategic management process in the mining industry
Dinko Herman Boikanyo, B.Sc., MBA, Ph.D. Graduand, North-West University in South Africa's Potchefstroom campus, South Africa
Abstract. The objective of this study is to investigate the extent to which Strategic Management process is utilised within the mining industry. Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ascertain that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes, and assess and adjust the organization's direction in response to a changing environment. A typical strategy management process has the following steps: initial assessment, situation analysis, strategy formulation, strategy implementation, monitoring and evaluation. The other objective was to determine which analytical tools are commonly used for situational, internal and external assessment as input to the strategic management process. A structured questionnaire was used for the study. A total of 300 mines were randomly selected from a research population of mining organizations in South Africa, Africa and globally. The respondents were all part of senior management. A response rate of 64% was achieved. The results indicated that about 20% of the organizations did not institutionalize their strategic planning functions and did not have a good strategic foundation. The results also showed that 60% were not satisfied with their productivity and 30% indicated that their cash flows were not stable at all. There was a significant number of organizations who do not use strategic analytical tools. A statistically and practically significant positive relationship was found between Strategic Management dimensions and Business Performance implying that the use of strategic management process can lead to improved business performance.
Legal relations between participants in guarantee business in international trade
Abstract. In modern business environment, which is characterized by the conquest of new markets and growing distrust among the participants in international trade, bank guarantees represent one of the safest security instruments, and without them, no important business deals could be carried out in international traffic. The widespread use of bank guarantees in international goods and payment transactions can be explained by increased volume and intensity of international trade, whereby relations between partners who previously didn't know each other and who are located throughout large geographic distances, are often established. The essence of this mechanism is in the fact that, with bank guarantee, the bank undertakes the obligation to pay a certain amount of money to the guarantee, who is the creditor in the basic contractual agreement, if the bank's client, who is the borrower from the main deal, doesn't fulfill his contractual obligations. In addition to that, the bank guarantee always arises from a complex set of legal and business relations involving at least three entities, and it is based upon three legal relations, each of them being autonomous and independent from the other, regardless of the fact that the set of these relations makes a single, indivisible economic-financial integrity. Due to the complexity of these relations and the importance that bank guarantee has as a mean of security in international trade, the subject of this paper will be the analysis of the legal relations among the participants in the guarantee business.
The role of perceived economic well being and conspicuous consumption in creating customer wealth
Pranay Verma, Footwear Design Development Institute, India
Abstract. Technology acceptance model (TAM) is a well documented field of study. At the aggregate level the impact of intention to use mobile phone based services is analyzed comprehensively but at an individual level it is not well documented. If we consider the user as a customer of mobile based services, consequence of intention to use mobile phone based services in creation of wealth for this customer has not been researched. Therefore in this paper we define the constructs of customer wealth and develop the conceptual model linking intention to use and customer wealth. After due diligence a twelve item questionnaire was floated to test the construct. Factor analysis was run on the data followed by a confirmatory analysis. Both the tests confirmed the customer wealth scale involving the role of perceived economic well being and conspicuous consumption.
The impact of competitive strategies on hotel performance. Case study of five-stars hotels Northern Cyprus (Kyrenia)
Blend Ibrahim, Ph.D., Department of Business Management, Faculty of Business & Economic, Girne American University, North Cyprus
Abstract. The main purpose of this article is to examine the impact of competitive advantage strategies on the performance of hotels. five and four stars hotels in TRNC have been taken as a case study. Three kinds of competitive strategies had been studied; cost leadership, differentiation, and focus strategy. A questionnaire has been designed for the study and data of 112 responses from executive managers, vice-managers and the head of all departments have been analyzed by using SPSS program. Our finding shows that: (a) the competitive strategies impact positively on the financial performance, (b) the competitive strategies impact positively on the non-financial performance.
International socially responsible funds: Financial performance and managerial skills during crisis and non-crisis markets
Kathrin Lesser, Center of Finance, University of Regensburg, Germany
Abstract. Nofsinger and Varma (2014) provide evidence that U.S. socially responsible funds outperform conventional funds during periods of market turmoil, and therefore grant some crisis insurance. To investigate whether the U.S.-based evidence can be transferred to international markets, we analyze a comprehensive sample of internationally-investing socially responsible equity funds in a period from 2000 to 2012. As abnormal returns are model-specific, we apply standard and q-theory based performance measurement models. At first glance, we observe no crisis protection for internationally-investing socially responsible funds. However, splitting our sample in funds domiciled in North America, Europe, and Asia-Pacific to account for biases due to the origin of a fund, we find that socially responsible funds from North America outperform their peers in crisis periods irrespective of the applied performance evaluation model. We suggest that the U.S.-based evidence is restricted to internationally-investing funds domiciled in North America, and discover that this outperformance seems to be owed to the stock-picking abilities of North American fund managers and their advantage due to the nature of the North American market.
Leadership aiming at innovation: suggesting and discussing four roles of an innovation leader
Daniel J. Adriaenssen, Research Fellow, Århus University, Dept. Psychology, Denmark
Abstract. Organizations often experience problems and challenges due to the development of rigid bureaucratic rules and procedures, which may represent obstacles to creativity and innovation. In a global knowledge economy, innovation is an important competitive parameter. Consequently, anything that may stimulate innovation in an organization's creative energy fields is valuable. This paper addresses one question: What management roles of an innovation leader may enhance the development of innovation in an organization's creative energy fields? Methodology used is conceptual generalization.
Fight against administrative corruption within governmental organizations from motto to practice (case study: Ministry of Economic Affairs and Finance)
Samieh Darsareh, University of Tehran Kish International Campus, Kish, Iran
Abstract. Administrative corruption in a simple definition is violation of a law for personal benefits by utilization of job position. It is a phenomenon within today's world, as one of the most important obstacles on the way of societies' progress. The impact of different factors in forming corruption has given it a complicated nature. Administrative corruption is a correlative issue and it is different according to value system of each society. This article is trying to present a solution in order to fight against administrative corruption through classification of staff with the help of explaining the relation of their perception, sensation and commitment towards corruption and corrupted situations. Present study in terms of purpose is developmental-practical, and in terms of execution and based upon research purposes is a survey. The study population is the staff of Ministry of Economic Affairs and Finance in 2015. In order to explain perception, sensation and the behavior of staff, the questionnaire of administrative corruption is designed in three dimensions: perceptive aspect (cognitive) which includes items for assessing the status of awareness and recognition of staff from instances and consequences of administrative corruption; sensation aspect which includes items for assessing the vision and tendencies of staff towards corruption, and behavioral aspect which is formed from items for assessing the behavior of staff in facing with corruptive situations. In order to identify the reasons of corruption two questionnaires of "National identity" and "Organizational culture" have been designed. The result of the research was that the perpetrators of corruption can be divided into three categories. First category is the staff that their perception is positive, it means that they have adequate cognition from manifestations and corruption consequences and their feeling about corruption is negative, it means that they consider it as an ominous phenomenon, but they are guilty of corruption. Second category is the staff that their perception is positive, they don't see corruption as an ominous phenomenon. Consequently, their feeling toward corruption is positive, and they perpetrate it. The third category is the staff whose perception is negative, their feeling is uncertain, and they perpetrate it. The behavior of these categories will be interpreted in form of related theories. The significant note is that despite the tendency average to practice administrative corruption among governmental staff is lower than assumed average and it indicates that there is a protection of corruption perpetration but the rank of our country is not favorable the International Organization report. This warning made the researchers to provide new solutions to help resolving this social issue by reviewing current solutions for prevention, and fighting against administrative corruption, regarding the richness of evaluating system in Iran.
Evaluating the effect of accruals quality, investments anomaly and quality of risk on risk premium (return) of stock of listed companies in Tehran Stock Exchange
Seyed Kazem Ebrahimi, Assistant Professor in Department of Accounting, Economics, Management and Administrative Sciences, Semnan University, Semnan, Iran
Abstract. Nowadays reaching to economic goals in any society requires public participation, which is only the result of people participation. Investment in stock market is one of people participation methods. So awareness from stock return and its affecting factors is one of anxieties of investors and owners of shares. In this research we evaluated the effective factors on stock return using Fama and French models. So we studied the effect of some factors including accruals quality, anomalies of investments, size factor, market's risk premium factor, and book equity to market equity factor, on stock's risk premium which is representative of stock returns, in 70 listed companies in Tehran stock exchange from 20 March 2003 to 20 March 2014.Results showed that accruals quality and quality of risk had meaningful effect on risk premium, which is representative of stock returns. Results also showed that investment anomaly has no meaningful effect on risk premium and consequently on stock returns.