3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Determinants of headquarters location and site selection for corporations listed on the Johannesburg stock exchange(2019) Ramantswana, ThabeloThe location of headquarters presents an opportunity for economic growth in host countries and cities. The determinants of headquarters location and site selection vary in different contexts. Several studies have been conducted in Europe, USA, and recently in Asia documenting the dynamics of office/headquarters location. The variation in findings from different studies reinforces the importance of context. The African market in particular is under-researched, with little information available on the determinants of headquarters location and site selection. This research explored corporate headquarters (CHQs) location and site selection of companies publicly listed in the Johannesburg Stock Exchange (JSE) in South African metropolitan municipalities. This research explored and described CHQs location and site selection using both secondary and primary data. Location quotient and shift-share analysis was used to understand the competitiveness and specialisation of the metropolitan municipalities and the relationship with the concentration of CHQs. Then, interviews and a survey were undertaken to understand the determinants of CHQs location and site selection. Conjoint analysis, with a particular focus on the selfexplicated conjoint model, was used to understand the trade-offs that companies make when making location and site selection decision. The results indicated that South Africa’s cities’ historical development tends to influence the concentration of CHQs in certain metropolitan municipalities over others. However, in some instances, the competitiveness and/or specialisation explained the concentration. CHQs highly prefer locations that have developed telecommunication infrastructure and amenities, low operating costs, proximity to supporting industries and service providers, a skilled labour force, frequent and efficient local flights, favourable property taxes, tax incentives, and a favourable legal and regulatory framework. Regarding site selection, CHQs highly prefer facilities that have good security, energy efficiency, including backup generators, low operating costs, parking facilities, a flexible building interior, premises in good condition, access for the disabled, HVAC, good lease terms, and a reliable water supply. The findings of this study are beneficial to academics, government, and practitioners in the real estate market. This research helps to bridge the literature gap of headquarters research in the African context. It has open room for meaningful debate and engagement in the academic sphere in terms of unpacking the location and site selection decisions in the African context. The benefit to government is that the research uncovers the preferences of CHQs in location and site selection which can be used as guidelines to attract and retain headquarters. This affects the policy environment, the infrastructure and the general environment considered for headquarters to thrive. In today’s environment, gaining competitive advantage is crucial in industry. Considering the need for companies to be globally competitive, developers have to know the location and site determinants that matters most in real estate. Companies want the most desirable features when making headquarters location and site selection decisions. At the same time, developers and metropolitan municipalities, as well as other spheres of government, want to generate maximum benefits (profits, tax revenues, employment, and clients) from their investments in production and infrastructure developments where applicable. The findings provided the preference level of the determinants of CHQs location and site selection, which could help in the development of strategies to attract more CHQs to (South) Africa and to strengthen the competitiveness of the different metropolitan municipalities in fostering development and economic growth. The research also made a methodological contribution in that it adopted self-explicated conjoint analysis, which is predominately used in marketing. This study took a consumer behaviour approach in understanding the trade-offs that CHQs make in location and site selection decisions.Item Salient factors in executive managements' FDI decisions: a study of South African multinational enterprises(2016) Joosub, Tasneem SulimanPursuit of an international strategy has been a recognised tenet of multinational businesses for centuries. It is an absolute requirement for companies to investigate new and potential markets in order to expand their operations internationally and, in certain circumstances, to secure key supplies, especially minerals, energy and scarce raw material resources. Evaluating new markets remains a daunting task, because companies have to evaluate risk and opportunities in the potential markets. Internationally, enterprises have entered new global markets after following a strategic decisionmaking process, taking into account factors such as the country’s environment, psychic distance, market-based factors such as taxation and competition. However, the exact process followed by MNEs has never been sufficiently elaborated upon by research; in the degree to which it has, the focus has been almost entirely on European and North American MNEs, leaving a gap in the knowledge base. The purpose of this study is to identify key strategic variables that impact the decision-making processes of South African MNEs, when deciding which country to enter. The study attempts to better understand how the enterprise formulates its decision, and looks at elements influencing the decision on whether or not to enter a particular new market, such as perceptions (business risk perception or opportunities), as well as heuristics regarding the factors considered. The research was conducted using a survey instrument directed at South African MNEs executive management (in order to determine trends in their strategic decision making processes), as well as personal interviews with senior management of selected MNEs. The study adopts a mixed methods approach which utilises qualitative and quantitative data and incorporates triangulation analysis to determine the most salient factors considered by SA MNEs.Item Exploring the experiences of expatriate executives in South African multinationals: the role of coaching(2017) Mnengisa, Basareng Isabella BongaSince the lifting of the international sanctions and relaxation of capital controls, South Africa has caught up with the rest of the world in terms of globalisation. This has resulted in a number of South African companies opening job opportunities in other markets. Previous research has highlighted the creation of job opportunities in other markets as an indication of the continuous need for expatriates in future. The purpose of this study was to explore the experiences of executives taking international assignments in South African multinational corporations, and to examine how coaching can support the experience. This study looked at the experiences of expatriates in all three phases of expatriation, that is, (1) to explore the experiences of expatriate executives prior to taking international assignments in South African multinational corporations and understand how coaching can support that experience, (2) to explore the experiences of expatriate executives during the assignment in South African multinational corporations and understand how coaching can support that experience and lastly (3) to explore the repatriation experiences of executives in South African multinational corporations and understand how coaching can support that experience. Qualitative research methodology was chosen to explore the expatriates’ experiences and the world in which they live. Sixteen semi-structured interviews were conducted with respondents from three South African multinational corporates (MNCs) in telecommunications, oil and hospitality industries. Out of sixteen respondents, three were Human Resource (HR) managers whose responsibility it is to administer and manage global mobility in the three MNCs. Global mobility includes expatriates’ management. The results of this study have implied that South African MNCs are inconsistent in terms of the way they prepare their expatriates before departure, support expatriates during the international assignments and repatriation. As a result of that, expatriates have also revealed mixed experienced in all three phases of the expatriation journey. For example, during pre-departure, some have experienced a pleasant preparation, such as look-see-visits, medical examinations and CEO on-boarding programmes, whereas others were never prepared (thrown in the deep-end). The misalignment between head office objectives and host country’s objectives came out as the most frustrating experience by the majority of the respondents. In terms of the last phase of the repatriation cycle, the results of this study suggest that a repatriation strategy is ineffective or non-existent in South African MNCs. Expatriates come back and get absorbed by competition as a result of the lack of a repatriation strategy. The glue to the findings of this research implies that coaching does have a critical role to play in all three phases of expatriation, that is, during pre-departure, during the assignment and during repatriation. The key message to South African MNCs is, if they want to use expatriates as their vehicle to succeed in global markets, they must involve former expatriates in crafting their realistic, practical expatriates’ strategy which must be communicated and applied to all expatriates and host companies.Item International opportunity recognition by South African entrepreneurial firms(2016-08-25) Willard, CandiceThe global market is a dynamic, competitive environment offering business growth and development, and as such a pull towards international activities exists for firms. Despite this globalisation of markets, international entrepreneurship research has not focussed on the opportunity recognition process in an international context. In addition, the cross-national differences that may exist, and the validation of perspectives to emerging economies, is poorly understood. This research was conducted in South Africa, a country considered to be an emerging economy, with the purpose of ascertaining how local entrepreneurial firms recognise international opportunities, and the main factors influencing this process. This was done using a quantitative statistical research methodology, in the form of a cross-sectional study. An online self-administered survey was utilised for data collection, which was then subjected to the research selection criteria. Prior experiential knowledge and the levels of entrepreneurial orientation, in terms of proactiveness, risk-taking and innovativeness, did not seem to have a significant effect on the international recognition process by South African firms. The effect of organisational learning could not be conclusively drawn. However, international social networks, in relation to the amount of time invested in interacting with contacts, and developing and maintaining contacts, seemed to have a significant effect on this process. This research provides the initial insights into an under-researched area, and contributes to international entrepreneurship research with empirical testing of a sample from South Africa.Item Internationalisation of South African SMMEs: the role of capital factors.(2013-02-18) Shree, Sanam.The purpose of this paper is to investigate the influence of capital factors on the internationalisation of South African Small Medium and Micro-Enterprises (SMMEs). These capital factors are Financial, Social and Human capital. The study concentrates on determining how various levels of capital act as a preventative factor when a firm internationalises. The low levels of Financial capital is accentuated as it prohibits South African SMMEs from internationalising. Social capital emphasises that few social ties and networks prevent South African SMMEs from globalising. Lastly, the focal point of Human capital are the low levels of international knowledge and experience of management, which prohibits South African SMMEs from expanding internationally. To address these issues, this study draws upon a sample of 136 South African internationalised and non-internationalised SMMEs studied via an online questionnaire. The major theories underlying this research include the Resource-based theory, the Social Network theory and the Organisational Learning theory. Multivariate statistical analysis were used to test the results and confirmed that Financial Funding had an influence on an organisation’s ability to internationalise. Results from this study can potentially provide policy-makers and practitioners with additional insights into the key constraints to internationalisation of South African SMMEs.Item Prescriptiveness of the South African transfer pricing tax legislation in providing guidance on how to transact at an arm's length price(2011-02-25) Manyaka, Puleng OwenTransfer pricing is a significant taxation problem facing both tax authorities and multinational enterprises. Tax authorities around the world regulate transfer pricing through tax legislation, which requires that cross-border transactions within multinational enterprises be at arm’s-length. A number of countries in the international community have amended their transfer pricing tax legislation to be prescriptive by including regulations in their legislation on how to transact at arm’slength price. This research study presents an argument that the South African transfer pricing tax legislation is non-prescriptive as it does not have regulations on how to transact at arm’s-length price. With reference to the transfer pricing guidelines issued by the Organisation of Economic Development and Corporation and the experience of the United States of America in the enforcement of transfer pricing, this research study examines whether or not the South African transfer pricing tax legislation should be amended to be prescriptive by including regulations on how to transact at arm’slength price. The research findings reveal that to a certain extent the South African transfer pricing tax legislation is consistent with the transfer pricing guidelines issued by the Organisation of Economic Development and Corporation, but to a certain extent it is not. The research findings also reveal that non-prescriptive legislation has in the past created a problem in certain countries. Furthermore, the research findings reveal through an analysis of the United States of America’s transfer pricing enforcement experience, that prescriptive transfer pricing tax legislation in a tax system has a positive impact. Recommendation is therefore made in this research study that the South African transfer pricing tax legislation should be amended to be prescriptive by including regulations on how to transact at arm’s-length price. viii Keywords of the study: arm’s-length price, arm’s-length principle, income tax, IRS, multinational enterprise, non-prescriptive, OECD, Practice Note 7, prescriptive, SARS, section 31, section 482, South Africa, tax legislation, taxation, tax law, tax authority, transfer pricing, transfer pricing methods, United States of America.