Wits Business School (ETDs)
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Item Currency Volatilities of BRICS Countries: The Impact of Commodity Prices, Interest Rates and Geopolitical Risks(University of the Witwatersrand, Johannesburg, 2024) Luo, Heng; Odei-Mensah, JonesCurrency volatility in emerging markets is an interesting topic for managers, investors, and regulators. This study investigated the currency volatility of the five BRICS nations, examined the risk sources of the BRICS currencies and observed the connectedness of their currency risks, in the context of the COVID-19 pandemic, Russia-Ukraine war and current interest rate hikes, using data spanning between September 2011 and September 2023. The ARDL model was the main econometrics approach applied for identifying the long run and short run currency volatility determinants. In addition, Quantile Regression was adopted to observe the currency markets’ tail behaviours. The research has three major findings. Firstly, the research confirmed that interest risk, commodity risks, geopolitical risk, and economic policy uncertainty are the risk sources of BRICS nations’ currencies, especially when volatilities are at high levels. Additionally, the research provided support for spillover of the commodity market, the USA’s geopolitical risks and economic policy risks to the BRICS’ currency markets, and the volatility spillover across BRICS currency markets. Finally, the study revealed the shock evolution trend of Chinese RMB, with accelerating impacts of US geopolitical risk, US and home economic policy risk, and oil price exposure on RMB’s volatility. Overall, the heterogeneity of BRICS nations’ currency markets responding to external shocks, and the asymmetry of the connectedness of BRICS currency markets, were important implications of the research. The findings are crucial for investors and policy makersItem The Impact of Digital Leadership on Digital Maturity: A South African Case Study(University of the Witwatersrand, Johannesburg, 2024) Jaffer, Aasma; Sethibe, TebogoIn the rapidly evolving landscape of digital transformation, the role of digital leadership in driving organizational maturity has become increasingly crucial. This study investigates the impact of digital leadership on digital maturity within the South African fintech sector, aiming to provide insights into the mechanisms through which leadership practices influence digital maturity at a factor level. This was broken down into two key areas: identifying the most critical indicators of digital maturity and investigating the impact of digital leadership on five factors of digital maturity based on the digital maturity model used. Drawing upon a conceptual framework rooted in the literature on digital leadership and digital maturity, the study utilises an established digital maturity instrument, the Unified Digital Maturity Model by Armstrong & Lee (2021). The research employed a quantitative approach, utilizing a sample of 150 employees from various fintech companies in South Africa. Data was collected through a structured survey instrument, and statistical analysis, including regression analysis, was conducted to examine the relationship between digital leadership behaviours and organizational digital maturity levels. The findings reveal significant positive correlations between digital leadership and all five factors of digital maturity studied, namely Customer Orientation & Engagement, Digital Product Innovation, Workforce Enablement & Performance, Core Processes Digitisation and New Value Streams & Business Models. The study identifies the top three most critical digital maturity constructs as Organisational Culture, Workforce Enablement & Performance, Customer Orientation and at indicator level, found eight critical variables. These results underscore the importance of cultivating digital leadership capabilities to foster high digital maturity and in turn, streamline digital transformation in the South African fintech context. The study concludes by highlighting the imperative for organizations to prioritize investments in digital leadership development as a strategic imperative for navigating the digital landscape effectively.Item Digital innovation and disruptive potential by FinTech companies in South Africa(University of the Witwatersrand, Johannesburg, 2024) Freund, Amelia; Omotoso, PelayoFinTech companies are seen bring innovation to the financial services industry that provide an enhanced customer experience and improves financial inclusion. A contradiction exists between academic and business literature around the potential impact of the FinTech revolution on the industry and banks as incumbents in the financial services industry. This paper aims to clarify this by assessing the degree of potential disruption that domestic new-entrant FinTech companies in the payments sub-sector have on incumbent banks in South Africa, so that both parties could make informed decisions that benefit the industry and its customers. This qualitative study examines the drivers of potential disruption and the decisions made by both FinTech new-entrants and banks to develop a synthesis for a likely future scenario relating to potential changes in dominance within the financial services industry. It further analyses the advantages and challenges of each party in the context of a potential partnership and examines management views to determine alignment with the drivers of disruption. This cross-sectional study employs document analysis to examine 42 new-entrant FinTech companies in the payments sub-sector and 5 banks, in addition to the thematic analysis of semi-structured interviews 15 semi- structured interviews conducted. It was found that domestic new-entrant FinTech companies are not likely to disrupt banks (to the point where FinTech companies become more dominant) in the payments sub-sector in South Africa due to the influence of banks in the industry and the proactive response from banks to potential disruptions. Banks should, however, take notice of developments and more seriously consider solutions in the cross-border remittance and blockchain spaces. Managers may have slight differences in their opinions, but overall, they are aligned with the factors driving disruption and the influence of FinTech companies on the financial services sector. This alignment enables them to make strategic decisions effectively without significant misconceptions. The study discovered a potential mutually beneficial link between FinTech companies and banks that indicate partnerships between them might enhance their services to customers and enhance their overall competitive standing in the marketItem Exploring the role of social media influencers and brand ambassadors in influencing purchase intention(University of the Witwatersrand, Johannesburg, 2024) Da Fonseca, Helen; Saini , YvonneThis study investigates the comparative influence of social media influencers and celebrity brand ambassadors on purchase intention within the South African cosmetics industry, specifically targeting millennial and Generation Z consumers. Grounded in the Source Credibility Model, the research examines how credibility, trustworthiness, and expertise shape consumer decision-making. Social Media Influencer-Driven Purchase Intention (SIPI) and Brand Ambassador-Driven Purchase Intention (BAPI) were introduced as higher-order constructs to evaluate and compare which type of endorser has a stronger influence on overall purchase intention. A Structural Equation Modeling (SEM) methodology was used to analyse survey data collected from 130 respondents. The findings indicate that both Social Media Influencer-Driven Purchase Intention (SIPI) and Brand Ambassador-Driven Purchase Intention (BAPI) influence consumer purchase intention, with celebrity brand ambassadors exerting a more substantial effect due to their higher perceived credibility and expertise. Celebrity brand ambassadors were shown to play a pivotal role in enhancing consumer trust and confidence, making them more effective in driving purchase behaviour compared to social media influencers. These insights offer strategic guidance for marketers and brands looking to refine their influencer marketing strategies to better resonate with the evolving preferences of millennial and Generation Z consumers in the South African market.Item The Balance Sheet Effects of Exchange Rate Fluctuations in Emerging Markets(University of the Witwatersrand, Johannesburg, 2024) Asad, Bhushra Zamir; Malakani, ChristopherThe main objective of the research is to check the effect of GDP growth, beside baseline model for investment (including only previous investment, output growth and real interest rate), while in Tobin Q equation investment model including (change in real interest rate, equity value, exchange rate depreciation and lag term of investment growth on growth of real investment has been investigated) as Q ratio has been consider valid porky for Investment opportunities. The results have been obtained in scenario of eight Emerging Markets Chile, Czech Republic, Hungary, India, Mexico, Poland, South Africa and South Korean in order to check which estimation is more robust, and which model best forecast actual growth with respect to investment in selected emerging markets. Dynamic models have been used and in all countries except Chile, the significant influence of real GDP growth on real investment growth has been found in both models. Moreover, in scenario of South Korea, the influence of Real interest Rate has also been found. The practical implication and future direction of the study has also been discussed in detailItem How Diversity and Inclusion May Transform South African Commercial Property Organisations at Top Management Level(University of the Witwatersrand, Johannesburg, 2017-08) Motshegare, Reabetswe Regina; Levy, DeborahThe purpose of this report is to outline contemporary transformation frameworks that emphasise diversity and inclusion and how the latter may likely transform Growthpoint Properties South Africa (Growthpoint S.A). The main focus of the consultancy report is to compare and contrast traditional transformation methodologies and contemporary diversity and inclusion methodologies as strategies to assist Growthpoint S.A transform its senior and executive management. The propositions are that; an effective transformation strategy for Growthpoint S.A is one that focuses on identification; inclusion; attraction; diversification and retention of key talent at senior levels. Furthermore, that once diversity and inclusion interventions are implemented, there will be transformation at senior and executive levels. Out of 15 executives in the management team, six representatives were interviewed. The limitations highlight that the majority of participants are South African and may have certain biased perceptions about the topic as opposed to the rest of the participants, who are foreign nationals. The methodology focuses on a thematic analysis and four themes namely: leadership; corporate culture; strategies and communication are identified. Following in-depth discussions, six recommendations are provided. These include 360-degree feedback; diversity and inclusion workshops; introduction of a diversity and inclusion forum; KPI’s that measure diversity and inclusion targets; workplace enhancement programmes that focus on diverse candidates and lastly, robust succession plans. The role of the researcher as a professional Human Resource Business Partner ensured that any work dealt with is approached ethically, and the researcher’s ability to do this ensured quality, reliability, validity and effectiveness of the research.Item Dynamic capabilities in strategy formation and knowledge conversion in Zimbabwean organisations(University of the Witwatersrand, Johannesburg, 2023) Kagondo, Brian Victor Tinashe; Carmichael, TeresaThis qualitative research study adopts a Strategy-As-Practice approach to theorise organisational strategy formation and knowledge conversion processes. Using the theoretical lenses of Contingency Theory and Institution-, Resource- and Knowledge- based views, the study explores the dynamics of the interactions between organisation systems and people activities in strategy formation. The research context is Zimbabwe, a developing country with high literacy levels but has traditionally been marred by poor institutions and high levels of regulation. The research adopted a generic qualitative research design with triangulated interviews, documents, and a review of records. Data was collected from 13 participants using semi-structured interviews. The participants were senior management and employee representatives who were purposively selected from large organisations from each agriculture and tourism sector, two industry institutions, and one consultant from each sector. This was supplemented with data from documents, records, and minutes of strategy meetings and organisational processes. The findings suggested that: a) While the strategy formation process is formalised, structured and well recorded, the praxis is instead to follow the expectations of tradition and of stakeholders, which produces aesthetically compliant blueprints which are archived; b) Organisations abide by tenets of Contingency Theory in their wish to establish the best fit between internal and external environments. However, they tend to achieve the fit through random and often chaotic systems that feed off the tacit capabilities of individuals or views of managers in positions of power and authority; c) While managers enlist strategy consultants, ‘politically correct’ institutions and specialist technical advisors in sensing the environment, it is the firm owners that direct the seizing and configuration decisions and determine the ideal culture and strategies; d) Tacit knowledge among shop-floor employees is a key but poorly tapped intelligence source, as management elects to preserve the privilege of strategising. Brian V T Kagondo, Stud No. 1316671, PhD Thesis - WBS Page | iii The study concluded that due to an overriding desire for perceived political and procedural correctness, there is fractured and inconsistent understanding and interpretation of the strategy formation processes and strategic outcomes. Strategy- making in Zimbabwe is not absolutely defined and, therefore, is positioned between deliberate and emergent. Organisations navigate the context through turbid harnessing of internal social dynamics, individuals’ tacit knowledge and a broader range of stakeholders. The study makes two theoretical contributions. In the Knowledge-Based View, the study proposes a review of the assumptions to include that tacit knowledge in its pure form is intrinsic and unshareable. Therefore, individuals may only transfer and share those skills they have conscious control of and voluntarily wish to impart to others. To the Institution Based View, the study proposes; the isolation and recognition of the owners or founders of organisations as a distinct Institution that falls in a realm between the external and the internal environments of the organisations. These founders or owners (and sometimes through their representatives, the Board of Directors) are not just advisors but are actually definers of the organisation's culture, mission and broader goals. Management are therefore mere implementers of the institutionalised practices. This challenges the traditional theory, definition and role of management to imply that they are not deciders, planners, organisers and controllers but are simply administrators.Item Customer retention strategies for the prepaid mobile telecommunications sector in South Africa(University of the Witwatersrand, Johannesburg, 2010) Flynn, Teresa; Peters, MarkThis study will propose ways in which companies can focus retention strategies in the local prepaid mobile telecommunications sector. Currently there is little academic literature on this topic, even though in-house marketing research has been done by the operators. The purpose of this research is to investigate the customer retention strategies in the prepaid mobile telecommunications sector in South Africa. This will be done by triangulation of what consumers believe is important in their retention, what the organisations deem as paramount, and what retention experts state are the motivators of retention. Data was collected using both a survey questionnaire for consumers, and through face to face interviews with marketing management at mobile telecommunications operators, as well as independent expert consultants on the topic of customer retention. The findings from this study were that the consumers want to keep the same cell phone number as it is part of their identity. The customer looks at the total offering when considering pricing, and not just certain costs, and prefers a prepaid model as spending is controlled in this manner. Both consumers and management agree that rewards and loyalty programs are seen as a value add, especially where they offer instant gratification. A reliable product is necessary for a consumer to stay with the company, as is accessibility to support and other products. Management realises that the total customer experience across all touch points is a retention enabler, with one really bad experience being enough cause for a customer to churn. The consumer survey indicated that customer service is a driver that all market players need to improve on. An organisation's brand allows a consumer to identify with the firm, and is more a pull factor than a push factor, unless it is perceived as dishonest or unethical. The only time a consumer's demographics came into play regarding customer behaviour was age making a difference was when using a cell phone to access the internet -older age brackets use it sparingly if at all. Although other value added services such as SMS and MMS are used across the board. Companies model consumer behaviour, and base it on data from previous churners to identify possible churners. Of these, only profitable churners are then recognised for retention campaigns. Retention campaigns are measured for success. The prepaid market makes up 80% of the mobile telecommunications market in South Africa, and the revenue they contribute is approximately 35% of the total. Therefore this customer base should not be neglected or ignored. Due to the demographics of emerging markets, prepaid offerings are the way of the future. The research paper finishes with several recommendations on how to enrich customer retention strategies for the prepaid mobile communication market.Item External Factors Influencing the Sustainability of Social Entrepreneurial Ventures in South Africa(University of the Witwatersrand, Johannesburg, 2020) Govender, Ramona; Murimbika, McEdwardSocial entrepreneurship is increasingly seen as a solution in addressing some of the social ills in the world. However, in order for the social enterprises to be more effective there is a need for them to be sustainable, particularly in terms of financial sustainability. Social enterprises that are financially sustainable are usually better able to create social value. The study sought to investigate the contributing factors towards social enterprise (SE) venture sustainability in South Africa using Cape Town as a case study. In doing so, quantitative research was conducted, with data being collected from the sampled social enterprises using an online survey. In this research it was found that, while government assistance was important, it was not significant in determining a social enterprise’s performance. The research also found that high social innovation improves a social enterprise’s access to philanthropic venture capital. In this regard, high social innovation was also seen to have a positive effect on social enterprise performance. The research thus concludes that social innovation is an important contributor to the sustainability of a social enterprise. The study offers updated information and adds to the theory on social enterprises in South Africa which is useful to prospective social entrepreneurs seeking to structure such organizations. In addition to this, the new knowledge and new insights will help government and civil society policy makers to formulate policies that can encourage social entrepreneurship in the country, especially with regards to funding. The study also offers useful insights on social innovation and emphasises its importance within the social enterprise context.Item Attitude and acceptance of Artificial Intelligence technologies in the South African financial services. industry(University of the Witwatersrand, Johannesburg, 2024) Wotela, Ruth Rumbidzai; Maier, ChristophDespite Artificial Intelligence (AI) being topical, the successful adoption of AI technologies within organisations has been slower than expected. Literature and past research highlights the mixed and contradictory views and findings regarding employees’ attitude and acceptance of AI technologies, which challenge the successful implementation and use of AI technologies. Further, research on employees’ attitude and acceptance of AI technologies in emerging market economies, such as South Africa, and specifically within mandatory settings is limited. The purpose of this research was to investigate and determine factors influencing employees’ attitude and acceptance of AI technologies amongst employees within the financial services industry, where the use of AI technologies is mandatory. The Technology Acceptance Model (TAM) and the Technology-Organisation-Environment (TOE) framework were integrated and extended. This quantitative research study used a cross-sectional design. An online survey was distributed to employees within financial services organisations. A total of 410 valid responses were analysed using descriptive statistics, correlation analysis and regression analysis. Textual responses from the open-ended questions were categorised and presented visually in the form of word clouds. The research results indicate that each of the technological, individual, organisational, and environmental factors have a significant positive effect on attitude towards use of AI technologies. Multiple regression and stepwise regression analysis were used to identify the most influential determinants of attitude towards use of AI technologies from all the technological, individual, organisational and environmental factors. The results indicate that employee wellbeing, competitive pressure, perceived usefulness, management support, perceived ease of use, organisational justice and customer pressure are key determinants of attitude towards the use of AI technologies. The attitude-acceptance relationship is confirmed, as attitude towards use of AI technologies positively influences the acceptance of AI technologies. Although employees’ job roles do not moderate the relationship between attitude and acceptance of AI technologies, their experience with using AI technologies does. Based on these findings the ITOE model for implementing AI technologies is developed, and can be used to facilitate the successful implementation and use of AI technologies. The implications of this research, as well as recommendations for organisations and future research are also discussed.