Faculty of Commerce, Law and Management (ETDs)

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Identifying obstacles to the growth of new SMEs: A Factor Analysis Approach
(Identifying obstacles to the growth of new SMEs: A Factor Analysis Approach, 2019) Mphahlele, Dorothy B.; Merino, Andres
It is widely acknowledged that Small and Medium-Sized Enterprises (SMEs) are key drivers of economic growth and job creation in developing countries. It has also been established that new SMEs face common problems that arise as they grow and develop. These challenges stem from internal as well as external factors that can have an adverse impact on their survival and growth. The objective of this study was to identify the internal and external obstacles to the growth of SMEs. A questionnaire was used to collect data on factors affecting the growth of SMEs. The results of the questionnaire were analysed using Factor Analysis. Eight different factors were identified. These factors were further analysed to determine their impact on SMEs. The ranking of the factors in order of importance was as follows: lack of access to finance, overregulation, the economic environment, high competition, lack of internal resources, high input costs, lack of experience of the entrepreneur and poor service delivery. The report examines possible ways of mitigating the adverse factors identified and makes a series of recommendations to increase the likelihood of the survival of SMEs in the South African context.
A legal analysis of the complexity of race and gender disadvantage in terms of the Employement Equity Act in South Africa
(2019) Mushariwa, Muriel Tapiwa
Centuries of colonialism and Apartheid created a legacy of inequality in South Africa that the democratic Constitution, 1996, seeks to address. The constitutional mandate in section 9 of this Constitution, enacted through the Employment Equity Act 55 of 1998 (EEA), requires designated employers in the public and private sphere to address the inequality in the workplace through the application of affirmative action. The EEA identifies the beneficiaries of affirmative action policies as black people, women and persons with disabilities. It is clear that these constitute three distinct groups, but that it is also possible for an individual to belong to more than one of these collectives. For example, black women fall within two designated groups on the basis of race and gender, and this dual disadvantage creates a multi-layered, unique and complex type of inequality. The main aim of the EEA is to create a representative workforce, and designated employers have a duty to break down the barriers that prevent members of the designated groups from entering the workplace. Once employed, employers need to assist members of the designated groups to progress in the workplace. However, having a representative workforce does not translate into a transformed workforce. It will be argued in this thesis that a transformed workplace is representative, but also requires the breakdown of institutional norms, processes and structures that prevent the progression of members of the designated groups. The question to be asked is whether affirmative action, in its current form, is able to transform the workplace. To answer this question, it is vital that consideration be given, firstly, to the type of substantive equality that is to be achieved in the application of affirmative action. It will be shown that the aim should be a transformative substantive equality of outcome. Focus will be placed on the fact that individuals who fall within the designated groups are not equally placed in terms of their experience of disadvantage. It is submitted that consideration of differing experiences of disadvantage needs to be taken into account so as to avoid the creation of an elite middle class black, and possibly male, group, which benefits from affirmative action to the exclusion of others, thus hampering the achievement of equality in the workplace. This thesis will show that a transformative form of substantive equality of outcome needs to be applied to affirmative action in the workplace. This transformative form of substantive equality includes a situation sensitive approach to the implementation of affirmative action in the workplace. A situation sensitive approach will apply affirmative action strictly on a case by case basis with regard to the demographic profile of the specific workforce, and the employment equity policy of the particular workplace. A one size fits all approach cannot deal with the complexity of disadvantage that needs to be addressed. It will be argued that, besides a situation sensitive approach to race, gender and disability, the issues of social, political, economic and educational disadvantage are factors that should be given consideration in identifying the true beneficiaries of affirmative action. To further illustrate this point, particular attention will be given to women within the designated groups, in order to unpack the nature of disadvantage they experienced in the workplace. Two case studies, focusing on women in male dominated professions, the legal profession and the mining industry, will be used to illustrate this point. This thesis will show that ultimately, the goal of affirmative action must be seen to be to change the workplace by breaking down both the visible and invisible barriers of equality and, in doing so, create an environment where, constitutional values of equality, human dignity and freedom are truly recognized and protected.
Assessing digital transformation within a South African mining firm
(2019) Benzane, Mahene Patrice
South Africa is still one of the top global producers of various mineral commodities, including gold, coal, platinum, palladium, manganese, titanium, and uranium. The mining industry contributes about 8% to the GDP of South Africa, and it used to be a dominant sector in the past. This industry is known to be a labour-intensive sector with little application of the digital technologies which many industries that were born after the boom of mining in South Africa are currently using. The recent example is the increasing depth of gold which tends to require technology interventions to access these resources where it is not feasible for physical humankind intervention, and this shows the need to transform the mines digitally. The effects of various digital technologies in the mining industry due to the Fourth Industrial Revolution (4IR) phenomenon means that mining organisations can mine smarter, improve safety, reduce cost, develop new insights from their current operation, and contribute towards the sustainable economic and social development of the country. However, the required level of digital maturity, the applicable digital transformation model in terms of what to digitally transform within the mining value chain, as well as understanding the mechanism required to drive maximum adoption and successful implementation of these digital technologies across all levels of the organisation remains unclear and challenging. In a quest to address these, a qualitative research strategy was selected as a means of getting to understand what needs to be digitally transformed in the mining value chain, this would then help identify an applicable Digital Transformation Framework for a mining firm willing to embark on this transformation journey. This qualitative approach is further used in the research to unpack the effective ways to engage various stakeholders within the organisation to help enable successful implementation and adoption of these digital technology initiatives. To do this, a single case study method was utilised and Company X was identified as an ideal mining company in which to conduct the study. Company X has embarked on a digital transformation journey which they run through an internal initiative called Digital@Comapany X, and they have been making a buzz across the South African mining industry as the pioneers in adopting and embracing digitisation in mining, hence they were selected for this study. Based on the reviewed literature, the research made several propositions. One of the propositions indicated that the digital transformation of the internal processes within the mining value chain is the key area of focus for a South African mining firm. The key findings from this case showed that 100% of the interviewed executives, junior managers, middle managers, and senior managers believe that the introduction of the digital technologies within Company X will lead to worker enablement through digitised processes that will eventually improve decision making by using the power of visualised data. Therefore, according to the first proposition made, it is evident from the research that digitalisation of the internal process within the mining value chain is an important area of focus. In summary, the findings showed the following areas as what the digital transformation initiative aims to transform: Digital Capability, Human Resources, Worker Enablement, Culture, Customer Experience, Process Digitisation, Unified Data, and Performance Management. 50% of the executives indicated the importance of customer experience in their digital transformation journey. 65 % of the respondents indicated the importance of unified data by having integrated operations centres, whereas 36% mentioned performance management as the key area of focus, and only 14% of the respondents mentioned IT infrastructure to enhance digital capability as another focus area for the internal digital transformation journey. According to the reviewed literature, it was further proposed that the Digital Piano framework is the most appropriate or relevant transformation model to be used by Company X, and can be further tested by mining firms intending to embark on a digital transformation journey. The aim was to test this proposition by comparing what to transform in practice according to Digital@Company X roadmap to what other various theoretical and conceptual frameworks focus on in terms of the digital transformation process. The findings were not entirely in agreement with the proposition made. Based on what is currently done at Company X, the combination of these following frameworks in the context of the mining firm proves to be more appropriate than using a specific model: Digital Piano framework, Digital Orchestra Framework, Six Keys to Success Framework, Digital Enterprise Integrative Management Framework, Digital Transformation Framework, by Corver and Elkhuizen, The Digital Reinvention Framework, and the Digital Innovation Strategy Framework. Therefore, choosing a single framework from the literature to apply to the mine as a relevant digital transformation strategy may have a dire digital transformation process or journey that leads to poor implementation, lack of adoption and wastage of resources with no realisation of intended digital benefits if it does not holistically cover various aspects of the mine or organisation as a whole. The researcher named the combination of these frameworks an Integrated Digital Transformation Framework for Mining (IDTFM). The last proposition made in this research was that to embark on the digital transformation journey in the mining sector in the 4IR era requires the co-operation and participation of all stakeholders to ensure the successful implementation and adoption of digital technology initiatives. According to the findings, the following themes in terms of what may or may not lead to success emerged: Poor Change Management, Unclear Vision, Value Realisation, Stakeholder Involvement, and Ease of Use and Adoption. According to the findings gathered from the 14 respondents, it is evident that there is a clear understanding of what could lead to the failure of digital technology interventions within Company X. Respondents further echoed the importance of change management, vision, stakeholder engagement, the value brought by these technologies as well as the importance of Ease of use to drive adoption. The managers have a strong interest in the practicality of any IT system implemented to drive productivity and efficiency, and the ease of use of the system is an important factor for them as key stakeholders that need to drive these initiatives at the operations. 80% of all the respondents emphasised on the ease of use. 57% indicated the importance of stakeholder involvement, and further findings showed the significance of good change management is one of the driving factors for successful implementation and adoption. In addition to these findings, one of the two executives interviewed highlighted the importance of everyone understanding the vision of the company. Therefore, the third proposition is validated through the research findings and literature that any lack of effective stakeholder engagement when pursuing a digital transformation roadmap or efforts within a mining firm will lead to a lack of adoption and ineffective implementation. To link some of the findings to the literature, the Diffusion of Innovations Theory developed by E.M. Rogers in 1962, states that Innovation, communication channels, time, and social system are the four key components of the diffusion of innovations, and when promoting innovation to a target population, it is important to understand the characteristics of the target population that will help or hinder the adoption of the innovation. The Technology Acceptance Model (TAM) theoretical framework helps explain the usage of technology within a specific context, and the usage could either be the ease of use or the usefulness of that specific technology as perceived by the users (Venkatesh and Bala, 2008). Therefore, based on the 80% of the respondents believing that the ease of use of these technologies and the perceived usefulness in terms of practical application will lead to easier adoption indicates that TAM is accurate in the case of Company X. Therefore, the research further recommends the use and applications of these theories when embarking on the digital transformation journey of a mine. Further to these findings, the Diffusion of Innovations Theory has been used successfully in many industries including communication, agriculture, public health, criminal justice, social work, and marketing, therefore it can also be applied in a case of a mining firm to ensure adoption of innovations brought in the form of digital technology implementations. TAM is also applicable in the context of a mining firm and must be utilised. With the support of literature and the findings of the research, It is further recommended that the leadership team in a mining firm must create and follow an integrated digital transformation compass (Westerman, Bonnet & McAfee, 2014).
The effects of individual and organizational factors on ethical behavior in the South African construction industry
(2019) Makonye, Chido
Employees often face many difficult situations that demand ethical decision making from the viewpoint of society and organizations. Various factors influence the outcome of ethical or unethical decision-making and behaviour of employees. This paper briefly examined some of the major factors that may affect ethical behaviour in construction companies. The strength of these factors may vary from individuals to individuals, organizations to organizations, and situation to situation. The factors that were investigated are personal values, corporate ethical values and the organisational climate. Age and gender were used as moderators in this study. South Africa is a developing country in which many private and public organizations are being faced with a lot of fraud and corruption. It is not only in private organization but also the government. This call for an investigation on ethical behaviour but to solve a problem one must find the source of the problem. The study was designed to answer the major question: Are there any significance relationships between personal values, corporate values and organisational climate and ethical behaviour in the South African construction industry? The researcher employed a quantitative research method. Data collection was done by use of questionnaires distributed to various construction companies. A computer programmer called SPSS version 25 and Microsoft excel were used to analyse data. Descriptive statistics was used to interpret data collected from the first section of the questionnaire that is the biographic information. Linear regression and correlations were used to test the proposed hypothesis. Multiple regression was used to test the moderation effect of age and gender. The findings largely confirm previous studies that personal values and corporate values influence ethical behaviour. However contrary to some previous studies, there was no significant relationship between ethical behaviour and organisational climate. Conclusions, findings and recommendations were drawn from the results.
A critical analysis of the rationale for the introduction and implementation of sugar tax
(2019) Parker, Shuaib Ahmed
In the 2016 Budget Speech, the then Minister of Finance, Pravin Gordhan, announced a decision to introduce a Health Promotion Levy (‘sugar tax’) on sugar-sweetened beverages (‘SSBs’). Sugar tax came into effect on 1 April 2018 in South Africa. In its Policy Paper released by the National Treasury in July 2016, titled “Taxation of Sugar Sweetened Beverages” (‘Policy Paper’), the National Treasury outlined the proposed sugar tax. It argued that the primary objective of the introduction of sugar tax was to reduce excessive sugar intake and curb the growing problem of obesity. Obesity and other non-communicable diseases (‘NCDs’) have significantly escalated over the past 30 years and has become a growing concern in South Africa. This has resulted in South Africa being ranked the most obese country in sub-Saharan Africa. The impact of SSBs on obesity and other NCDs has received widespread attention on the international stage and by the World Health Organisation (‘WHO’). This is evident from the fact that South Africa is not the first country in recent years to introduce a form of sugar tax which has been gaining traction as popular intervention to combat the growing concern of NCDs. The argument arises as to whether the tax is actually intended to meet its desired health benefits or simply increase revenue for the fiscus. This research will examine whether the implementation of sugar tax will contribute to its intended health objectives envisaged. In order to achieve this, a study will need to be undertaken with countries which have successfully introduced sugar tax including, Mexico, Norway, Denmark, the United Arab Emirates, Chile and United Kingdom. Lastly, this study will also explore the success of the implementation of sugar tax and the impact it has had on the fiscus of these countries.
An assessment of the quality of South African and Indian listed companies’ financial reporting
(2019) Haarburger, Carla Peta
Orientation: The accounting profession has been put in the spotlight as a result of the high amount of public failures and corporate collapses. The importance of high-quality financial reporting has been demonstrated not only by the past corporate failures, but also due to the scarce level of capital that is available to be allocated within capital markets. Research aim: The primary objective of this study was to investigate the quality of financial reporting in South Africa and India. Motivation for the study: This study contributed to the existing body of literature on financial statements. The focus of this study was on two of the emerging markets of the BRICS nations, South Africa and India. The members of the BRICS are suspected to be some of the strongest economies of the future; therefore, it is imperative that research is conducted in the context of these developing markets. This research analysed financial statement quality, which extends beyond the pure financial aspect of financial reporting since there is a demand for research that is focused on the qualitative aspects of financial reporting as opposed to solely quantitated financial figures. Research approach and method: This research followed a quantitative approach. The approach employed a 21-index scorecard to score the application of the qualitative characteristics in the financial statements of 50 entities from the JSE and BSE. The entities were selected based on the highest market capitalisation entities for the 2017-year end. The data was analysed using descriptive statistics. Main findings: The main finding of this study was that the application of the qualitative characteristics in South African companies was high. The application of the qualitative characteristics in India is not as high when compared with South Africa in most aspects; however, timeliness was a characteristic where India outperformed South Africa. Applications: This research contributes to the existing body of knowledge on financial statements. This research was also a contribution and an investment into the developing markets, as both South Africa and India are emerging markets. This study also unlocked opportunities for further research that can be conducted in relation to this topic such as the motives behind Indian listed entities not preparing integrated reports as well as a study which analyses the link between financial statement quality and audit quality. Contributions: This study contributes to the academic literature on financial statements. It also contributes towards the research into developing economies and it unlocks opportunities for future research.
The implementation of Section 139(1) of the Constitution in the Ngaka Modiri Molema District Municipality
(2017) Kampi, Zoliswa
The Ngaka Modiri Molema District Municipality (NMMDM) is situated in the North West Province, South Africa. It has persistently been placed under provincial administration (s139 (1) of the Constitution) and continuously resisted the interventions including taking legal actions against the North West Provincial Executive. The objectives of the research study were to explore and provide insights into the factors that informed and impacted the planning and implementation of s139(1) interventions in the NMMDM, and to explain how these factors either promoted or undermined the success of these interventions. From the literature review undertaken, the researcher drew critical themes and concepts that underpin the research study. The leadership and governance theories provided the theoretical perspectives and the principal-agent theory underscored the conceptual framework. In line with the exploratory nature of the research study, the qualitative research method was preferred and the NMMDM was adopted as a single case study to get a deeper understanding of the intricacies involved in the planning and implementation of s139(1) interventions. The researcher obtained the primary data through semi-structured interviews with the municipal leadership and used document analysis to gather secondary data. The research findings revealed the richness and complexity of the local government discourses. Through analysing the results of these discourses, a number of critical aspects that informed and impacted these interventions in the NMMDM emerged. These aspects range from the nature of to the quality of support provided to the NMMDM prior to the interventions. These include the communication of the directives and notices to assume responsibility, details given on the rationale for the interventions, political dynamics and their influence on reactions to the interventions, capacity of the province to plan and implement the interventions, and perceptions of the impacts of the interventions. Nevertheless, it is not the intention of the research study to generalise the findings but to present them as they manifested in the NMMDM.
Caught in a gap? An examination and human rights assessment of immigration detention laws and practices in South Africa
(2013-03-19) Tay, Roanna
Abstract: This study examines the laws and practices relating to immigration detention in South Africa. It provides an in-depth examination of the legislation, with reference to known state practices and cases where migrants have been subjected to prolonged and repeated periods of immigration detention. The study highlights gaps in South African law that contribute to certain categories of migrants being especially vulnerable to immigration detention. Four categories are identified: (1) asylum seekers; (2) persons with difficulty obtaining travel documents; (3) stateless person; and (4) persons subject to other prohibitions against refoulement. The study offers recommendations for legislative reforms to fill the gaps in the law that contribute to these migrants’ vulnerability to immigration detention

Faculty of Commerce, Law and Management (ETDs)

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