Theses and Dissertations (Economics and Finance)

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    The challenges of inclusive industrial development in South Africa's clothing and textile sector
    (2022) Wesi, Boingotlo
    South Africa’s clothing and textile sector has undergone a recovery process form nearly disappearing to reaching a stable condition. Over the years policies have been implemented to aid the sector and make it more competitive. However, the sector continues to be faced with developmental challenged. The study finds that within the clothing and textile sector, industrial policy has played an inadequate role as a tool of development and transformation. Secondly, the political economy of financing has been challenged as a result of pressures from transformational policies such as B-BEE. Lastly, there is a need for a policy agenda shift from competitiveness to transformation in South Africa’s clothing and textile sector.
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    The social and economic relationship between renewable energy (solar) and gendered labour
    (2021) Taylor, Julia
    The world faces a climate crisis due to the extraction and burning of fossil fuels which has supported industrialisation and capitalist expansion. One of the solutions to the climate crisis is to reduce carbon emissions by transitioning from a fossil fuel-based energy system to one based on renewable sources such as solar or wind energy. The just energy transition promises to address unemployment and poverty while reducing the carbon intensive nature of the energy system. However, this energy transition is complex and holds uncertainty and risk for many people, particularly workers and communities who depend on the coal value chain. This research report adopts a feminist political economy lens to explore the relationship between the development of renewable energy and gendered labour. This approach highlights the importance of the economy, the household and the state in the process of social reproduction. It is relevant to debates about a just energy transition because it highlights gender and racial inequalities and the undervalued and unpaid work required for social reproduction which should be addressed in any effort to achieve justice. By analysing the impact of the development of solar power plants on the workers and communities in three towns in the Northern Cape, and focusing on the three components of social reproduction, I find that the energy transition in its current form will not deliver justice for the poor and working classes.
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    The trajectory and determinants of dividends on the Johannesburg stock exchange
    (2022) Sekgosana, Nomasonto
    This study examines factors affecting the decisions of firms to pay dividends using non-financial firms listed on the Johannesburg Stock Exchange (JSE). The study uses 1) descriptive statistics to draw trends from the data, 2) logit regression using firm-specific factors as independent variables and a firm's decision to either pay or not pay dividends, 3) and portfolio analysis to check the robustness of the results. There is confirmation that firm-specific factors and propensity can explain the declining number of dividend-paying firms over the sample period. The South African stock market has seen a significant decline in the number of firms paying dividends from 1994 to 2020. Additionally, the pool of JSE firms declined from the late 1990s to the early 2000s. However, the overall number of firms on the JSE has remained stable since 2004 while that of dividend-paying firms continuously declined throughout the sample period. Thus, the shrunk market of the JSE does not seem to explain the drop in the number of firms paying dividends. In pursuit of specific reasons to explain the declining dividend payment trend, the study proposes five hypotheses based on the evidence from the literature. The first four predictions are based on firm-specific factors (profit, size, free cash flow and investment opportunities), while the last one is based on the propensity of firms to pay dividends over the sample period. All three methods of analysis used show either very strong or some evidence that profitability and size play a significant role in the decision of a firm to pay dividends. Although there is evidence regarding a firm’s investment opportunities, the study shows that this would be subject to a particular time frame and the size of the firm. Additionally, the fifth prediction based on the firms ‘propensity to pay dividends was supported by all three methods of analysis. Therefore, firms, in general, were less inclined to pay dividends over time during the sample period irrespective of firm-specific factors. Furthermore, the study incorporates the contribution of certain major economic and regulatory events in explaining the observed declining number of dividend-paying firms.
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    An overview of corporate income tax in South Africa
    (2022) Ramsunder, Julita
    This paper investigates the corporate income tax regime in South Africa in order to determine if it has a comparatively high cost corporate tax regime compared to other jurisdictions. The paper also explores the relationship between corporate income tax and investment, as a higher tax cost relative to other jurisdictions is likely to discourage investment in South Africa. The paper uses three different measures to compare South Africa to other jurisdictions namely: the statutory rate, the backward effective rate and the forward effective rate. South Africa has a relatively high statutory rate, forward and backward effective tax rate which suggests the country imposes a higher corporate income tax cost compared to other jurisdictions in the sample. In South Africa, economic growth is key for driving both corporate tax collections and investment, where certain studies suggest that economic conditions are far more important than the tax structure for investment decisions. Further studies are required to fully unpack the investment and tax regime relationship in South Africa.
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    What fiscal policy measures are associated with higher economic growth in South Africa? With specific reference to spending and taxation
    (2022) Qomoyi, Siyasanga
    This paper investigated fiscal policy measures that impact economic growth by testing variables such as expenditure, personal income tax (PIT), corporate income tax (CIT), government debt and household consumption expenditure from 1994 to 2019. The study employed the Vector Autoregressive Model (VAR) for short-run and the Vector Error Regression Model (VEMC) for long-run models for model 1 and model 2 since there was more than two cointegration in the models. The study employed the Ordinary Least Squares (OLS) for model 3 since there was no cointegration. The findings indicated that the variables have varying effects on private investment and economic growth in the short run. At the same time, an increase in debt will likely increase expenditure in the long run. A decreased household consumption expenditure would likely increase economic growth in the long run. There is a significant negative relationship between corporate tax and economic growth and a significant positive relationship between government debt and economic growth. The study further provides recommendations.
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    How to win real-life Monopoly: the roles of tax havens and finance in the monopolisation of multinational corporations
    (2022) Nadarajah, Kristin Dilani
    Much like individual income inequality, there is an increasing gap between top corporations and the rest, in terms of revenue, profits, and power more broadly. This gap is reinforced and exacerbated by the largest corporations’ ability to minimise taxes through the use of tax havens and the offshore system. There has been extensive research mapping the issue of corporate tax avoidance, as well as documenting the rise of market and monopoly power (concentration), however, there is less research combining these two. Monopoly power is thoroughly dealt with in the Monthly Review School tradition with their monopoly capital roots. Recent developments within the tradition have also incorporated finance as a key aspect of the tendency of capital to concentrate and centralise. Nevertheless, tax havens and the system around them have been excluded from this debate. This paper finds that tax havens play a crucial role in the process of concentration and centralisation of capital for three key reasons: (i) they act as a driver of financialisation which in turn accelerates the centralisation process, (ii) they provide cost minimising tools which have become central parts of capital accumulation, and (iii) they contribute to creating more opaque markets and increase the competitive advantages of the giant corporations, allowing them to increase barriers to entry. Tax havens and their usage by multinational corporations (MNCs) must therefore be seen as a systematic issue that plays a key role in not only the financial system, but also in the economy and capitalist system as a vehicle of capital accumulation in the hands of a few.
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    Financial sector development and economic growth in South Africa: role of the banking sector
    (2022) Monareng, Kabelo Precious
    This “study examines effects of the efficiency of the financial sector on economic growth in South Africa through an augmented Solow-Swan growth model using annual data from 1975 to 2020. The financial sector development is characterised by the role of the banking sector in enhancing growth through the productive use of a country’s stock of financial capital. In this study, autoregressive distributed lag (ARDL) and instrumental variable (IV) models are used to estimate the derived augmented financial sector induced growth regressions. The ARDL method observes a positive but insignificant effect of financial sector development on economic growth. However, using internal instruments, instrumental variable regression provides joint endogeneity between regressors. The IV estimation results show that financial sector development has a significant positive effect on economic growth, hence, increased efficiency in the banking sector can lead to enhanced growth. In addition, the results observe that the quality of institutions are crucial to the relationship between financial sector and economic growth. To this end, policymakers should continue to improve financial inclusion and the quality of institutions, which could potentially spur economic growth in South Africa.
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    The analysis of ICO and IEO performance in the shortand long-run
    (2022) Matereke, Ngonidzashe N.
    Initial Coin Offering (ICO) and Initial Exchange Offering (IEO) today present themselves as fastgrowing alternatives and innovative ways to raise external financing for entrepreneurial ventures or fintech start-ups through the selling of coins directly to investors. This study analyses both the ICO and IEO in the short-and long-run. Examined are 101 ICOs listed between January 2017 and June 2021, as well as 22 IEOs listed between January 2018 and June 2021. Furthermore, the study explores various ICO and IEO performance determinants using a fixed effects regression model. The variables analysed are proxies for asymmetric information that exists between the issuing firm and investors, size was found to be the only significant variable. More so, the study finds that generally ICO and IEO are over-priced, this eventually results in coins performing poorly following aftermarket performance. Short-run performance seems to play little to no role in determining the long-run performance of newly issued coins. The results of this study suggest that the availability of white paper is not adequate to address the asymmetric information that persists between the issuing firm and investors. Lastly, using a buy-and-hold strategy the study finds that coins underperform in the long-run as given by negative abnormal returns of 35.06% after 3 years.
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    The impact of discretionary taxation on economic growth in South Africa
    (2022) Masipa, Makoto Tryphosa
    This paper considers the impact of taxes on long run growth in the South African context for the period: 1994 to 2019. The Autoregressive Distributed Lag (ARDL) bounds test was employed to test the long run cointegrating relationship between the variables. Further, in the study, the long run and the short run models were estimated. The results from the cointegration tests show that there is a significant long run relationship between GDP growth and tax revenue. Supply-side theorists advocate for tax cuts to improve growth; however, the results investigated in this paper are contrary to those espoused by supply-side theorists. Tax revenue can potentially improve growth in South Africa if put to good use. There is a stable long run relationship with high levels of significance between GDP and total factor productivity and between GDP and labour forces. Further, the results show a positive yet insignificant relationship between GDP growth and human capital growth. In the short run, results show that there is a positive and insignificant relationship between GDP and tax revenue as well as between GDP and human capital and labour forces. Finally, the results show a significant and positive relationship between Total factor productivity and GDP. It is recommended that adjustments in the level of government expenditure should be made to promote economic growth in South Africa (Example, invest in education and labour forces for growth).
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    Testing the adaptive efficiency of bitcoin
    (2022) Maredi, Maromo
    This research aims to investigate an alternative view of market dynamics referred to as the Adaptive Markets Hypothesis which posits that an asset’s efficiency will change over time. As such, this research will test whether Bitcoin is time-varyingly efficient. This will be accomplished in three stages. Firstly, whether Bitcoin returns follow a random walk/martingale will be investigated. If they do, that means that they cannot be predicted, thereby providing evidence of the weak-form market efficiency. If they do not follow a random walk, however, the second phase of the investigation turns to whether they can be modelled. The first attempt models the current Bitcoin return as a function of its own lagged values, which is predicated the idea of all relevant information being reflected in historical returns. The inadequacy of this model in its description of the returns generating process, provides evidence that there is private information that historical returns do not reflect which impacts returns. To account for this, the returns generating process is thus modelled using both historical returns and exogenous lagged variables without need to specify the model’s functional form. If the model performs better in some periods than in others, it can be inferred thus that Bitcoin is timevaryingly efficient.
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    The interconnection of the South African, African and BRICS equities markets
    (2022) Kabisoso, Muyamba
    This study aims to find out whether the South African equities market is integrated with the remainder of the BRICS markets and with other selected African markets (Botswana, Nigeria, and Namibia). The sample period used for this study spans from January 2000 – December 2021 for the BRICS markets and February 2004 – December 2021 for the African markets. These periods were chosen to allow for the same number of years before and after the 2008 global financial crisis to be roughly the same without having to separate the two periods. The study makes use of a Vector Autoregression (VAR) model to see whether lagged values of the dependant variable and other variables have some sort of predictive power. The model is used for all the respective market indices as dependent variables. This is then followed by a Granger Causality test, which is used to see in which direction causality flows, or if indeed it flows in both directions (reverse causality). Results point to the existence of interconnection between BRICS markets as there is significant predictive power, with the Russian market appearing to be the most dominant market as it granger causes the majority of markets within the group. Within Africa, interconnection is also present with the Nigerian market showing to be the leader. This all points to the bigger economies leading the groups while the smaller ones follow, with China being an exception within the BRICS group, as it appears to neither significantly affect nor significantly be affected by other markets.
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    A tale of tweets: the influence of Twitter on the technology sector
    (2022) Eltringham, Bradley
    Investor sentiment has emerged to be a very topical subject within the context of behavioural finance. In more recent times textual analysis has emerged to be one such way of attempting to quantify investor sentiment. This study utilises textual sentiment and attempts to examine the predictive power of social media networks with regard to the technology sector during the course of unprecedented market wide volatility as a consequence of a global pandemic. More specifically, this study analyses the association between tweet features (bullishness/sentiment , message volume and overall investor agreement ) and market features (daily trading volume, volatility and raw returns, closing price, intraday high, intraday low) with regard to the 10 current largest technology sector firms by market capitalisation. The study spans over the period of February 2016 to December 2021, which encompasses the COVID-19 pandemic. The first finding of this study indicates that most of the tweet features are observed to be contemporaneously associated to the stock returns of the ten biggest technology firms by market capitalisation. Second, the results show the that for the most part there is no monotonic relationship between tweet features and technology sector stock market returns with exception of the relationship between the magnitude of message agreement and stock returns. Third, there is no evidence that the past values of tweet features contain any useful information that could be used to predict future stock returns. Finally, by comparing the pre-COVID data and intra-COVID data, it is noted that for the most part there is no monotonic relationship between tweet features and technology sector stock market returns. There is however evidence that the use of increased usage of Twitter as an investment tool following an exogenous shock to the market.
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    Local is lekker: cam the Mining Charter III create a new black industrialist class
    (2022) Davids-Green, Larah-Ann
    Despite the vast resource endowment, South Africa has experienced a hollowing out of industrial capabilities and entered into premature de-industrialisation. This research was motivated by the State of the Nation Address on the 16th of February 2019, given by the current President of South Africa, Cyril Ramaphosa. He spoke of the government taking action to transform the economy using the mining and manufacturing industry not as a sunset industry, but rather as a sunrise industry. The President highlighted the critical role of the Mining Charter Three would play as “truly an effective instrument to sustainably transform the face of mining in South Africa.” This informed the research objective: to assess whether the Mining Charter Three can successfully foster a new black industrialist class. Qualitative research underpinned the study. Data was collected from five companies which have emerged as BBEE partners to determine whether they are enjoying the fruits of forward and backward linkages in the mining sector. From the data collected, it is evident that the sector is empowering a new breed of black entrepreneurs, hence the sector is acting as a sunrise industry
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    Fostering diversity through South Africa's broad based black economic empowerment act
    (2018) Ijasan, Eseigboria Grace Paula
    South Africa gained strong recognition all over the world after the fall of apartheid. Alas their quest to depolarizing the economy of the country has not ended. Several transformational initiatives have been set up by the government to accomplish this feat, the latest and most successful, in terms of economic empowerment, is the Broad-Based Back Economic Empowerment (BBBEE) Act. This initiative has however, been criticized by academics and its direct beneficiaries as not fulfilling its underlying purpose which is to smooth the coexistence of its diversified society. The question has been “is this just another initiative that gives the picture-perfect demographic representation in the work environment or is it giving us much more?” A major discourse has been controversies about the Act’s operationality in achieving its aim and its possible contribution in reinforcing discrimination resulting from societal power shift; hence, the backlash effect on beneficiaries and reverse discrimination on the non-PDI’s (previously disadvantaged individuals). It is on the premise of these questions and criticisms that this research strives to evaluate the Broad Based Black Economic Empowerment initiative as a diversity initiative that has gone beyond managing diversity to fostering diversity. It introduced a framework for fostering diversity which was used as a guideline in developing the Fostering Diversity Index questionnaire. Purposive sampling was used, focusing on nine top BEE companies as rated by EmpowerDex. A well-structured questionnaire was developed and distributed within the companies. These companies had their organisational culture assessed, psychological empowerment evaluated and social perceptions of diversity through the implementation of BBBEE evaluated. Findings from this research indicate that the BBBEE Act has a good potential for fostering diversity; however, fostering diversity requires an organisation to have a culture which embraces diversity as well as an adequate level of psychological empowerment. Without both, there will always be the disconnect between a government diversity initiative, such as the BBBEE and the internal state of affairs of the organisation. This study shows the dynamic relationships between organisational culture, social perception of diversity and psychological empowerment within these top-rated BEE companies. Gender was the only factor that predicts workplace diversity. Among the implication to policy, it is recommended that the implementation process of BBBEE be reviewed to attend to the salient issues of diversity.
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    Twin deficits and the sustainability of public debt in sub-Saharan Africa
    (2018) Gichuki, James Kiiru
    Sub-Saharan African (SSA) debt has attracted attention since the 1980s. Countries in the region moved from healthy debt levels in their formative years,tobecomeoneofthemostheavilyindebtedregionsintheworldrelative to their size of gross domestic product. Policy response to the debt has been unfolding the same way as the debt. First, countries adopted a wait and see attitude in the late 1980s and early 90’s, then swung to debt forgiveness in the 2000s involving 30 out of 48 nations. This research adopts a three-tier approach to an investigation of debt in the region. First, it examines whether internal debt has a relationship with the external debt by evaluating a twin deficit hypothesis by use of a trend analysis and a panel generalized method of moments. Secondly, it controlsforthehighdebtregimeandexamineswhetherdebtreliefmanagedto bringdebtsustainabilitybacktotheregionusingcross-countryautoregressive distributive lag models. Lastly, it evaluates the performance of debt relief in the region with respect to its fiscal space effects. Here, the study investigated whetherdebt forgivenesscrowdedout aid andgrants, increasedconsumption expenditure, or affected poverty alleviation through education and health expenditure. This thesis reports that there exists a positive relationship between the current account and the primary balance and that the relationship is twined so that an increase in one deficit leads to an increase in the other. Specifically, a percentage point increase in the primary deficit leads to a 0.3 percentage pointincreaseinthecurrentaccountdeficit. Italsofindsthatbyreducingdebt from the high debt regime of the 1990s, debt relief had managed to bring back sustainability to the region. Debts had fallen to levels below the formative years of independence, and the two low debt regimes had sustainable debt with the exception of Zambia whose debt remained unsustainable and relatively high as a fraction of GDP. On the impacts of debt relief, this study findsthatdebtreliefpartlyimprovedthefiscalspacebyincreasinggovernment expenditure, domestic revenue, and education expenditure, but found no effects on recurrent and health expenditure.
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    Acceptance of online shopping by individuals in South African townships
    (2018) Dzimati, Shorai
    Internet connectivity has revolutionised the way we conduct our day-to-day activities like banking, communication, travelling arrangements and shopping. Internet has enabled the birth of many technological innovations throughout the world including online shopping. Online shopping is the process of purchasing goods and services from online stores also known as e-tailers over the internet. In developing countries like South Africa, buying and selling of commodities makes up most of the economic activities. Individuals. With the increase in internet connectivity, individuals now have an option to replace the traditional brick and mortar shopping with online shopping. Although online technology is already in maturity phase in the developed countries, for South Africa as a developing country, it is still in its infancy. This might be attributed to factors that may include late penetration of the internet as well as logistical challenges which common in most developing countries. South Africa as a developing country needs technology to grow its economy into a developed country and online technology is one of the key technologies required to achieve this. The majority South African population comes from the townships which means that township dwellers constitute the majority of the consumers. Online shopping technology has potential to contribute towards the growth of small and medium-sized enterprises (SMEs) which is a key part of the South African economy. This demographic set up in South Africa makes it critical for business and academics to understand the acceptance of technology in South African townships, with online shopping being one of these key technologies. The study investigated factors affecting acceptance of online shopping by individuals in South African townships using the adapted unified theory of technology acceptance theory (UTAUT). Using a hypothetical model to test various hypotheses, the study followed a positivist research paradigm. Through the theoretical lens of the adapted unified theory of acceptance and use of technology (UTAUT). A survey was used as the data collection method. The hypotheses were tested and analysed to further understand the factors affecting acceptance of online shopping by individuals in South Africa. Findings of this study revealed that the elements of the adapted unified theory of technology acceptance theory (UTAUT) are strong in predicting acceptance of online shopping in South African townships. Elements like performance expectancy, effort expectancy, social influence as well as trust proved to be significant in predicting acceptance of online technology. This research will assist academics and practitioners to further understand the acceptance of online shopping by individuals.
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    Empirical study of the reverse-causality between organisation performance and employee behaviour in the agricultural manufacturing sector of Malawi
    (2018) Mvula, Ronnie Timpuza
    Many organisations claim that Human Resources are their critical resource. However, what is most critical is not merely the human resources but how the Human Resources are managed. Human Resource Management is achieved through practices that the firm implements; these give the firm sustained competitive advantage. Many studies have found positive and significant relationship between HR management and firm performance. Previous studies have also studied reverse causality investigating whether organisational performance affects HR management policies and found significant positive relationship implying that it is good performing organisations that can afford adopting HRM practices. The purpose of this study was to investigate whether organisational performance motivates how employees behave at work in the reverse causality in the agricultural manufacturing firms in Malawi. To achieve this purpose a survey design was adopted using quantitative research strategy. Data were collected from a probability sample of 77 managers and 308 employees totalling 385 participants. Descriptive and inferential statistics using Structural Equation Modelling (SEM) were used to analyse and test seven hypotheses. The proposed relationships were tested using a number of statistical methods. Adequate reliability was achieved on all measurement scales. Confirmatory factor analysis was conducted on the content and structure of the measured constructs and were confirmed necessary. Reasonable fit was achieved for all the refined measurement models. A Lisrel based SEM was applied to examine whether the model fitted the data obtained from the sample and test the relationships between latent variables. Consistent with previous research; results of SEM revealed that Human Resource Management (HRM) practices are significant correlates of organisational performance. Further results showed positive relationships between business strategy and HRM practices; HRM practices and organisational performance. Significant negative relationship was found between employee attitudes and employee behaviour and employee behaviour and organisational performance.
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    Supply chain management predictors of sustainable procurement and inclusive business in South Africa
    (2018) Mashele, Faith
    With the rise in volatility of local and global markets, organisations are becoming attuned to the need for creating sustainable economic value for stakeholders. Procurement channels, as a result, have become potential gateways for enabling market access and for encouraging participation by marginalised groups in the economy. For this reason, it was considered interesting to examine how inclusive business approaches, can be adopted as part of the procurement landscape as a tool for creating concerted socioeconomic and environmental value for both business and society. The purpose of this study therefore, was to investigate the potential supply chain antecedents of sustainable procurement and inclusive business in South Africa. The study was grounded in three theories, namely: stakeholder theory, institutional theory and resource-based view theory. Structural equation modelling (SEM) was adopted to quantitatively test primary data that were collected from supply chain and procurement practitioners based in South Africa using an online self-administered survey. Out of the 385 responses that were received, 249 were usable and analysed using the Statistical Package for Social Sciences (SPSS version 23) and Analysis of Moment Structures (AMOS version 23) statistical software packages. Through investigating the eight hypothesised relationships that were developed, this study theoretically positioned sustainable procurement to empirical literature that focuses on strategic partnerships, competitive advantage, familiarity with policies, trust within supply chains, organisational incentives and inclusive business. Secondly, it was observed that business models and strategies that are inclusive in nature, are able to facilitate increased access to procurement markets and resources. Managers thus, may consider establishing pilot projects and specialised programmes for promoting sustainable procurement initiatives. Lastly, the results have shown, a strong and positive relationship between organisational incentives and sustainable procurement. Policy makers and practitioners, thus, may use this study as a reference point for, adopting procurement policies and strategies that are aimed at promoting responsible and inclusive procurement practices.
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    Market and socio-psychological factors affecting organic food purchase decision and post-purchase outcomes in South Africa
    (2018) Chauke, Xitshembhiso Difference
    Organic food consumption is an aspect of green consumption which is increasingly making inroads into consumers’ consumption patterns across the globe, especiallyin Europe and North America. In South Africa, the growth is slow, both in supply and demand. Even though mainly sold in specialised markets, such as the Bryanston organic food market in Johannesburg, retail chains, such as Pick’n Pay, Shorprite-Checkers and Woolworths are getting into the organic food market, selling items, such as vegetables, herbs, grains and oil seeds, fruits and dairy products. The consumers are reportedly mainly medical patients, middle to upper income consumers, the “younger” consumer generation, who shop in the upmarket food stores and parents of younger children. Research has been conducted to understand the drivers of organic food purchase by employing various models and theories across the globe. For example, Aertsens, Verbeke, Mondelaers and Van Huylenbroeck’s (2009) untested model linked Schwartz’ values theory and the theory of planned behaviour (TPB) to propose personal factors affecting organic food purchase intention and behaviour. Even though the study combined two theories to suggest drivers of organic food purchase intention and behaviour, mainly psychological drivers were suggested. In addition to this limited focus, the study does not consider the resultant pleasure or satisfaction that consumers may get from purchasing and consuming a more natural and environmentally friendly food, which the Biophilia hypothesis theory suggests. More so, there are suggestions that external factors, such as marketing, economic, governmental and social factors can influence organic food purchase. The explanatory powers of some of these factors (e.g., social factors) have either not been empirically tested, or the studies of their impact are fragmented and lack integration. The fragmented studies in some cases provide contradictory findings. Studies show that when consumers purchase green products and are satisfied with their decision, their overall image of the products improves and leads to positive outcomes, such as positive word of mouth communication, repurchase intentions and the willingness to pay a high price iii associated with green products. Whether these will be the case for organic food in South Africa is one of the objectives of this study.To answer this question, and for better comprehension of the drivers of organic food purchase and post-purchase outcomes, ideas from the Biophilia Theory, Aertsens et al.’s (2009) adapted TPB and Yiridoe et al.’s (2005) model that suggests external drivers are integrated into a conceptual model in this study. This is to understand the impact of marketing, psychological and social factors on organic food purchase decision, satisfaction and three post-purchase outcomes (word of mouth communication, repurchase intentions and willingness to pay price premium). A survey of 611 South African organic food consumers in the cultural and socio-economically rich and diverse Gauteng province of South Africa, the proposed conceptual model with fourteen hypotheses (H1 – H14) were quantitatively tested using Partial Least Square (PLS) structural equation modelling.The results revealed that market factors (i.e., price, distribution and communication), even though they made no significant impact, explained 04% of organic food purchase decision. With an explanatory power of 53%, the psychological factors (perception of product attributes, environmental attitude, behavioural beliefs, perceived value and overall image) were found to havestrong impact on the purchase decision. Out of these psychological factors, only environmental attitude did not make a significant impact. Social factors explained 16% of organic food purchase decision, with family influence making a significant impact. While the purchase decision explained 66% of organic food consumption satisfaction, the satisfaction in turn had an explanatory power of 74%, 63% and 62% of repurchase intention, word of mouth and willingness to pay a price premium respectively. This study’s tested conceptual model of organic food purchase decision, satisfaction and postpurchase outcomes in an economically and socio-culturally diverse country such as South Africa, makes important theoretical and practical contributions. For example, it provides a comprehensive conceptual model, which can be used to understand other green consumption behaviour, not only in South Africa, but in other countries. It also reveals that marketers are ineffective in promoting, distributing and pricing organic food products. Further studies should be conducted in other South African provinces and should consider product related, economic and governmental factors helping and hindering organic food purchase and consumption.