Issue #3 (cont. 1) (Volume 14 2016)

The purpose of this article is to illustrate how management consulting firms can achieve economic growth through operating locally within an international network using the business federation as a new organizational form. Within the business federation, a local office gains access to resources through an extreme form of delegation where top management does not delegate to local offices, but rather gives local offices the permission to deal with tasks, because it is most efficient. The auhor uses top management consulting firms operating in Norway as the empirical setting operationalizing the business federation through a building block system. The research shows support for the claim that firms move closer to the business federation as over time from 1982 until 1998. It is indicated that firms operating close to principles of the business federation achieve stronger economic growth. The research contradicts claims found in the academic literature that the partnership model supports economic growth.

Keywords: top management consulting, the business federation as a new organizational form, economic growth, Norwegian longitudinal study.
JEL Classification: L1

Entrepreneurship and business creation are a growing alternative for young people in different economies whose age group often faces a labor market with double digit unemployment rates. Due to low economic growth, traditional career paths and opportunities are disappearing rapidly. In response to these challenges, the government introduced the National Youth Policy (NYP), amongst others, to deal with the challenges facing youth in Kenya. It was through the NYP that the Youth Enterprise Development Fund (YEDF) was transformed to a state corporation in 2007 as a strategic move toward arresting unemployment among youth in Kenya. This study sought to report on the factors affecting youth entrepreneurship development in Kibera, a district of Kenya. Kibera is a low income, informal settlement in southwest Nairobi (Kenya) with an estimated population of one million housed on less than 2% of the total municipal residential land (or 3,000 people per hectare). A sample of three hundred entrepreneurs (aged 18-35) within the Kibera district, Kenya was drawn to participate in this study. Structured survey questionnaires were used to collect data from young business owners in Kibera. Findings revealed that government policy (NYP) and access to credit have a moderate to strong positive relationship in the development of youth entrepreneurship. Though the positive relationship shows that the Kenyan government is supporting youth entrepreneurship in Kibera, there have been differing views as to whether the programs to support youth are yielding positive results or not.

Keywords: youth entrepreneurship, Kenya national youth policy, unemployment, Kibera.
JEL Classification: L26, E24

After more than 21 years under the leadership of the African National Congress (ANC), post-1994 South Africa finds itself yet again embroiled in race-related politics. Government policies such as black economic empowerment (BEE) and employment equity (EE) have not brought about the economic growth, social development and political democracy that the late former President Nelson Mandela had envisaged and what the ANC had promised to all the people of South Africa. South Africa is currently disengaging itself from the West including the Unites States of America (USA) and certain European Union (EU) countries and appears to rather embrace and align itself with countries such as Russia and China that pursue socialist and communist ideologies. Both these two issues may have a profound impact on how businesses will be managed in the future. In an exploratory, qualitative study using a “5 Star” research methodology, the direct and indirect impacts of BEE policies were investigated and the possible movement in South Africa’s ideological stance was explored. BEE does not appear to have helped to bring about high economic growth to help to reduce unemployment and eradicate the high levels of poverty and inequality, and government graft and corruption have increased at all levels of government, including local municipalities. BEE appears to have become the ANC’s curse to economic, social and political progress and should be scrapped. A national debate should follow on whether the ANC’s current covenant with pro-socialism and pro-communism rather than Western free-market capitalism is the appropriate ideology for South Africa to pursue.

Keywords: black economic empowerment (BEE), employment equity (EE), African National Congress (ANC), capitalism, socialism, communism.
JEL Classification: M14, M21

Positive entrepreneurial spirit, attitudes and perceptions among the communities, with specific reference to young South Africans in KwaZulu-Natal province, can improve the lives of many young people and alleviate poverty and unemployment challenges in the province. This paper intends to analyze the entrepreneurial spirit, attitudes and perceptions of young South Africans, in addition to which it will also analyze the most critical factors affecting young South Africans when embarking into business. Primary data were collected by means of both qualitative and quantitative methods. Data were collected in eThekweni Municipal areas. The sample consisted of 350 young South Africans between the ages of 18-35, both those who are working, as well as those who are unemployed, with or without tertiary qualifications. Respondents completed a five–point, Likert scale questionnaire, with the assistance of an interviewer. The results disclose that the large number of respondents indicate bank requirements to obtain a loan and financial support as major barriers to starting a business. The findings further indicate start-up capital as another constraint that demoralizes, quelling the entrepreneurial spirit among the young. The results found to be statistical significant at (p = .000*). Further research should aim to examine youth entrepreneurial training programs and entrepreneurial support skills.

Keywords: entrepreneurial, analysis, spirit, attitudes, perceptions, critical, young South Africans.
JEL Classification: M21

An empirical study was conducted in Cape Town – South Africa – to determine whether social values (family, parents’ work and education) have an impact on entrepreneurship students in the universities of Cape Town, University of Stellenbosch, and University of the Western Cape, as well as Cape Peninsula University of Technology. The paper reviewed the literature about the role social values plays in the people’s lives. Respondents were the entrepreneurship university students. Data were collected in classrooms, and, in most cases, with the facilitation of both the lecturer and the researcher. Bivariate and multivariate tests of statistical significance were conducted, while Cronbach’s Alpha was used to measure the reliability of the research tool. Findings suggest that social values of the university students have an impact on their entrepreneurial intentions. The paper ends with recommendations to universities, entrepreneurship lecturers, parents, government and businesses, as well as civil society organizations.

Keywords: social values, entrepreneurship intentions, university students, Cape Town.
JEL Classification: Y4

The research aims to evaluate different levels of management understanding and performance on Corporate Social Responsibility (CSR) of traditional banks and Islamic banks in Bangladesh. Moreover, the paper points out the philosophy of both banks’ policy makers. The study is exclusively analytical in nature where 14 banks were selected on the basis of availability of branches in the research area. The research was based on primary data sources through a structured questionnaire. The research findings revealed that there is a gap between policy makers’ assurance of CSR contribution and its real implementation. The analysis found that Islamic banks are better than traditional banks with regard to the implementation of CSR policies. The result also showed that there are still some controversies on CSR performance of Islamic and traditional banks in general. The study also observed that Islamic, as well as traditional banks’ different levels of management conceive that CSR activities are performed by banks for their own interest rather than for social welfare. Therefore, it must be emphasized that good CSR policy is inevitable for all types of banks in Bangladesh. For the betterment of the society, as well as the banks, all levels of management should harmonize their CSR philosophy.

Keywords: corporate social responsibility, management performance, traditional bank, Islamic bank, Bangladesh.
JEL Classification: G21, M10, M14

The aim of this study is to investigate the role of control and develop the common approaches to the control in a key area of management – the organization of the process of preparation, adoption and implementation of managerial decisions, which could serve as the basis for creating and maintaining an efficient system of control in organizations and a reference for solving problems in a variety of managerial situations. The structured analysis of the necessary and sufficient set of stages (phases) and the procedures of development, adoption and implementation of managerial decisions that ensure the managerial cycle have allowed the author to evaluate the role and place of the stages and procedures, specify the role of control in the process of management, and the relationship of the control and other managerial procedures. Understanding the characteristics of the relationships and the role of control can be required by the management in order to create a system of control taking into account the specifics of the organization. Analysis of the “managerial” and “executive” decisions allowed the author to identify the ratio of different types of control at their implementation. Interconnection between development technologies, adoption and implementation of managerial decisions and control procedures provides some practical importance for management. The results of the study can be used by management of various organizations to develop common approaches to solving problems in various managerial situations, using the conclusions drawn by the author.

Keywords: management, control, managerial decisions, purpose of the managerial decision, problem.
JEL Classification: M19, L29, D80

Integrated corporate reporting (ICR), which entails the process of compiling, documenting and reporting on company’s resources, its ongoing relationships with key stakeholders; business models; products (services); and the impact of such products (or services) on stakeholders, society, as well as the environment to optimize company value, has generated considerable interest among top 100 Johannesburg Stock Exchange (JSE) listed companies in South Africa over the last decade. Despite the surging interest in ICR to leverage the social responsibility, transparency and public accountability of companies in the developing African countries, little is known about the combined influence of ICR and internal company resources and/ capabilities (e.g., age and experience of the Chief Executive Officer (CEO)) on the performance of South African listed companies. The main objective of this study, therefore, is to examine the impact of Integrated Reporting Ratings (IRR); the company CEO’s age; and his/her years as a CEO on the share price of the company within the South African context. The top-106 JSE listed companies for the period Year-end 2014 constitute the sample for this study. Multivariate non-parametric regression is used to model the relationship between the predictor (i.e., independent) variables and the response (i.e., dependent) variable using MATLAB. The model developed in this study is, then, used to evaluate the impact of IRR; the CEO’s age and years of experience as CEO on the share price of individual companies. The proposed methodology is illustrated step-by-step. The finding of the study reveal that the share price of a company tended to increase with an increase in IRR, age and years of experience of the CEO, demonstrating that a company’s established history in integrated reporting and corporate experience positively impact its performance (i.e., the share price).

Keywords: integrated corporate reporting, corporate responsibility, JSE listed companies, MATLAB.
JEL Classification: G17

The majority of SMEs fail in the first five years of operation (Cant and Ligthelm, 2003). Human resource management (HRM) has been identified as a crucial key success factor for SMEs in today’s world. This research study investigates small business owners’ perception of the importance of HRM. The objective of this paper is to determine the perceived importance of human resources (HR) among South African SMEs and the management of it. A questionnaire was constructed and judgement sampling was used to gather the responses of 88 small business owners. The research revealed that the majority of SMEs have HR practices of some sort in place, as well as areas to improve on HR practices. The challenge now is to further increase the adoption of HR management and practices among small businesses in South Africa to ensure their success, as they play a vital role in the South African economy.

Keywords: South African SMEs, developing countries, human resource functions, human resources management, HR, HRM.
JEL Classification: M19

This paper examines the manner in which risk is governed in certain selected sectors of the South African economy. To extract the statement deemed as a proxy of risk management practices in the certain selected South African organizations, the disclosure risk measurement instrument was developed. This instrument was used as a gauging tool for the information disclosed in the integrated/annual report. Risk practices statements were formulated using the governance of risk chapter of the King III Report on Corporate Governance, applicable to all organization regardless of manner or form of incorporation and the Public Sector Risk Management Standards, applicable to South Africa’s public service organizations.
The results obtained indicated a high level of risk management practices by the JSE listed companies. This could be attributed to the fact that the King Code has been incorporated as part of the JSE listings requirements. This paper further theorized that the high level practices in JSE listed companies could be attributable to the high level of scrutiny by shareholders in companies where they have vested interest. With regards to the National Government Departments and the South Africa’s higher education institutions, a lot of work still has to be done to embed key risk practices in these respective organization’s internal processes.

Keywords: Higher Education Institutions (HEIs), Enterprise Risk Management (ERM), Johannesburg Securities Exchange (JSE), National Government Departments (NGDs), Risk Disclosure Index (RDI).
JEL Classification: M4

Problem: We don’t know how tacit knowledge, organizational learning and innovation are linked. Research question: What is the relation between tacit knowledge, organizational learning and innovation? Methodology: Conceptual generalizing. Purpose: To create a link between tacit knowledge, organizational learning and innovation.
Contribution:
1. The authors develop a typology for tacit knowledge and organizational learning that may help us to understand the interaction between different types of tacit knowledge, organizational learning and innovation.
2. The research of the authors shows that tacit knowledge may be said to have three faces: one conservative that limits the continuous improvement process, a second that guards an organization against imitation, and a third that promotes innovation.
3. The authors develop a theory, i.e., a system of propositions related to how do different types of tacit knowledge and organizational learning influence innovation?

Keywords: tacit knowledge, organizational learning, innovation.
JEL Classification: M10

This paper investigated barriers to the implementation of public supply chain management strategy in the South African public sector. The public sector in South Africa faces serious supply chain management challenges that are detrimental to the effectiveness and efficiency of public sector operations. A structured questionnaire was administered to a sample of 309 public supply management professionals based in Gauteng Province, South Africa. Data were analyzed using the Statistical Packages for the Social Sciences (SPSS version 23.0). The Exploratory Factor Analysis (EFA) using the Principal Components Analysis (CPA) technique was applied to identify the intended barriers. Seven factors which are the barriers to supply chain management strategy implementation; namely, management practices, human resource capabilities, customer service, external orientation, internal communication, innovation and employee motivation were extracted. Management practices emerged as the most influential barrier after the application of the mean score ranking technique.

Keywords: public supply chain management, management practices, human resource capabilities, customer service, external orientation, internal communication, innovation and employee motivation.
JEL Classification: H57

The present economic realities, the effects of globalization, the thirst for innovation and the public’s demand for improved services have led many developing states to review their approaches to service delivery. Most public service managers and professionals spend most of their time dealing with the day-to-day pressures of delivering services, operating and reporting to senior managers, legislators and agencies. They have little or no time to think about innovation, which would ease the pressures and burdens of service delivery. The intention of this paper is to point out the fact that capacity building is the bedrock of new public management development. This paper proposes that innovation management could be used as a form of organizational learning capability in challenging the maze of diplomacy and negotiation with experienced multinational extractive industries for the benefit of developing states. This could be achieved through excellent public investments and nurturing capability, from which they execute effective innovation processes, leading to new service innovations and processes, and superior service performance results. To achieve this objective, extensive literature on innovation management and organizational learning was consulted and the need for future research. In trying to unpack the discussion in the paper, the New Public Management Theory (NPMT), which is a pro-private sectors human resources management is proposed, though other available theoretical positions are explored taking into consideration the lapses entrenched in NPMT.

Keywords: innovation, NPMT, learning culture, public management, developing states, development.
JEL Classification: O10

The central tenet of the new Constitution of South Africa is to create equal and socially just economic order. This resulted in the higher education sector being restructured through incorporations and mergers. The limited financial resources, forces universities to evaluate and review their marketing strategies in order to attract suitably prepared and qualified students. The universities have not fully explored the role played by choice factors in influencing the students’ decision of enrolling at a particular university.
The purpose of this study is to identify the factors that may influence students in their choice of selecting a public university in the Tshwane Metropolitan Region, South Africa. An empirical study was conducted amongst first year students at two public universities in the Tshwane Metropolitan Region, Pretoria. The study design was quantitative in nature, using a descriptive technique, cross sectional and collected data through the application of a non-probability sampling being utilized to obtain data from a sample of 216 respondents.
The results of this study suggest that South African education landscape has evolved towards a market-orientated system in which Higher Education Institutions operate as businesses with marketing challenges. The results provide HEIs a guide to identify the key factors that influence students in the selection of a university in a developing country. University management should take cognizance of the gaps and position the university as an institution of first choice in South Africa.

Keywords: demographics, choice factors, universities, higher education institutions (HEIs).
JEL Classification: M31, L14, L31