Faculty of Commerce, Law and Management (ETDs)
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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 The evolution of consolidation accounting: an application of chaos and memetic evolution theory(University of the Witwatersrand, Johannesburg, 2024) Van Zijl, Wayne; Maroun, WarrenMany researchers have explored the evolution of accounting either as a technical and quasi- scientific discipline or as a social construct that both influences and is influenced by history. Some researchers have considered the role played by agency costs, economic pressures, regulation and the complexity of modern business. Other researchers have focused on political lobbying, the socialisation of accountants and the agency they have when applying accounting prescriptions as key evolution factors. The impact of power struggles and acts of resistance have also received much attention. This thesis builds on these earlier works by proposing a novel framework of accounting evolution inspired by two non-accounting theories: Darwin’s theory of evolution by natural selection and chaos theory. Using the case of consolidation accounting, 30 detailed interviews with local and international financial reporting experts illustrate how accounting theory and practice evolve at the macro- and micro-level. In doing so, the thesis helps to reflect how different perspectives highlighted by the prior literature can function concurrently under the proposed framework. The application of chaos theory suggests that consolidation accounting’s macro evolution is characterised by five observations. Firstly, consolidation accounting’s evolution is intertwined with and influenced by other systems, including business practice, taxation regulations, social norms and economic pressures. Secondly, accounting’s future state is highly dependent on its current state. This creates a path-dependency where its trajectory up to a specific point constrains its trajectory after that point. Thirdly, consolidation accounting remains relatively unchanged (stable) until it is disturbed. The presence of feedback loops may amplify or dampen disturbances leading to the possibility of disproportional change. Fourthly, consolidation accounting’s evolution indicates the presence of fractals, where the evolutionary pattern observed at one level resembles that of another. Fifthly, the accounting “rules-of-thumb” that develop over time may more accurately be described as strange attractors that pull accountants towards specific techniques, concepts and disclosures. In doing so, they create a sense or order because they limit the countless possibilities about how transactions and events might be treated. The application of Darwin’s theory of natural selection to non-biological systems is called memetic evolution. Considering memetic evolution of consolidation accounting at the micro-level reflects five core observations. Firstly, memetic evolution explains why accounting’s future state is Page 6 of 217 dependent on its current state. No “new” consolidation accounting technique, concept or disclosure (meme) is truly original but is a modification or recombination of one or more existing memes. Accordingly, consolidation accounting’s future state is dependent on its current state. Secondly, memetics shed additional light on how and what constitute disturbances under chaos theory. Disturbances can arise from changes to related systems, inaccurate inheritance processes, through the active modification of existing memes or the degradation of memes in accountants’ memory. Thirdly, memetic evolution enhances our understanding of feedback loops identified by chaos theory and why radical changes are often rejected in favour of marginal change. Fourthly, memetic evolution exhibits that consolidation accounting’s evolution is about the selfish replication of accounting memes. Consequently, researchers should not assume that currently accepted theory and practice represents the “best” or most “desirable” accounting prescriptions. Supporting chaos theory’s path-dependency, memes use different strategies to “win” the accounting meme selection game and become more prolific. Consequently, the criticism that accounting incentives short-term profit seeking behaviour may not represent a shortcoming of the accounting community but rather the power of evolution by natural selection. Finally, related systems co-evolve creating a complex and chaotic dynamic evolutionary environment. While the focus of the thesis is consolidation accounting, the findings are broadly applicable to accounting evolution in general. For example, the findings suggest that the accounting standard setters may serve the profession better by developing short- to medium-term accounting standards as opposed to striving to set more permanent standards. The findings form the foundation of a new research agenda into the chaotic and memetic evolution of accounting. However, there are limitations to the current study. Only purposive sampling 30 interviews were conducted to ensure participants had the qualifications and experience to provide meaningful insights, introducing an inherent bias potential.Item Institutional determinants of dividend policy: the case of African listed firms(University of the Witwatersrand, Johannesburg, 2024) Tembo, Margret; Chipeta, ChimwemweThis study examines the institutional determinants of dividend policy of African listed firms over the period from 2006 to 2020. While existing research extensively examines institutional influences in developed markets, there is a significant gap in understanding these dynamics within the African context. Utilizing a panel regression approach with generalized method of moments (GMM) estimations, the study comprises three essays. The first essay offers a comprehensive analysis of institutional determinants, specifically examining how investor protection, press freedom, property rights, financial development, and corruption shape dividend policy in African firms. The results underscore the pivotal role of institutional factors, highlighting investor protection, financial development, and press freedom as key determinants. Based on these findings, policymakers should prioritize strengthening investor protection laws, advancing financial sector development, and ensuring press freedom to create a more attractive environment for investment. The second essay explores the relationship between innovation and dividend policy in Africa, revealing a significant negative correlation. It also investigates whether institutional development influences this relationship. Results indicate that institutional development moderates the innovation-dividend policy relationship. The negative relationship is pronounced in countries with weak institutional development and tends to be positive in those with strong institutional development. Based on these findings, policymakers should focus on improving institutional quality to facilitate both innovation and dividend distribution, thereby supporting sustainable corporate growth and shareholder returns. This third essay examines the institutional factors influencing dividend smoothing in African firms. The study finds that African firms exhibit a speed of adjustment (SOA) of 0.539, indicating a moderate level of dividend smoothing, and a target payout ratio of 0.484, suggesting they pay out a high percentage of their earnings as dividends. The research highlights that firms operating in environments with low economic growth, civil law regimes, weak investor protection, weak property rights, low press freedom, underdeveloped financial institutions and markets, high corruption, weak government effectiveness, weak political stability, weak regulatory quality, and weak rule of law tend to engage in increased dividend smoothing. To address this, policymakers and business leaders in African emerging markets should prioritize improving governance and institutional quality. This can mitigate agency costs and information asymmetry, reducing the need for dividend smoothing. Strengthening investor protection, property rights, press freedom, financial markets, and governance standards will create a more stable investment climate. In conclusion, this research underscores the importance of institutional improvements in shaping dividend policies in African non- financial firmsItem How does Integrated Report Quality Affect Decision-Making? An equity analyst perspective in the South African market(University of the Witwatersrand, Johannesburg, 2024) Sebastian, Avani; Seetharam, YudhvirA key source of information about a company is their integrated reports, whose main purpose is to improve the quality of information available to investors. Seminal behavioural finance literature shows that, in situations where market participants perceive potentially imperfect information, they may be inclined to behavioural biases in their estimation of the value of a firm’s shares. However, prior literature also shows that behavioural bias may be present even when there are no evident deficiencies in the information environment. This study explores the relationship between the quality of integrated reports and behavioural bias in the South African equity market. Integrated report quality is approximated by the scores awarded by adjudicators of the EY Excellence in Integrated Reporting Awards. The study focuses on sell-side equity analysts as market participants. A convergent mixed methods design was used. Quantitative analysis was in the form of a structural equation model with latent variables for quality and each of the behavioural biases. The model incorporated data from 2208 forecasts from 316 analysts, across 342 company-years. Semi-structured interviews with 20 sell-side equity analysts were conducted to provide the context necessary for a meaningful evaluation. Across all methods of analysis, findings show that the quality of information in the integrated reports has little to no effect on the analysts’ decision-making processes. Findings from the interviews indicate that analysts consider direct interactions with management to be the most important source of information for their reports and forecasts. In these interactions, they rely on “gut feel” to establish credibility of management’s assertions. Regarding bias, the quantitative analysis showed that herding has a negative and significant association with the quality of analysts’ forecasts. The qualitative analysis confirmed the analysts’ view of the consensus forecast as a benchmark. Considered with findings of the lack of use of integrated reports, it is inferred that analysts view the consensus forecast as a more useful source of information than the information in the integrated reports. Despite the use of indicator variables with prior literature as precedent, the results of the analysis can vary depending on the choice of measurement approximations for the behavioural biases. The study makes a theoretical contribution by connecting research on integrated report quality and behavioural bias. It shows that analyst coverage, even if sponsored by the company, is considered necessary to reduce information asymmetry, despite the production of integrated reports. The study makes a methodological contribution with its analysis of qualitative data from interviews with analysts. Based on the findings, it considers how general debiasing strategies could be used in the context of analysts, thereby making a practical contribution.Item Two Perspectives Study of the 4Ps of Brand Leadership for two African Brands: Effect of Employee Customer Oriented Behaviours and Brand Admiration(University of the Witwatersrand, Johannesburg, 2024) Olumide-Ojo, Nkiru Juliet; Duh, Helen InsengA Brand leader is viewed in four dimensions of being relatively superior in the marketplace (brand quality), provides relatively high financial value compared to costs (brand value), is relatively open to new ideas and solutions (innovativeness) and has high brand awareness, preference and consumption (popularity). Being a brand leader brings a myriad of both financial and non-financial benefits, such as customer and employee brand admiration, profitability, and market share. Dangote and DSTV are consistently ranked as two of the top admired and brand leaders in Africa, but research is yet to be conducted as to the varied determinants of the brand admiration and leadership. Considering that African brand leaders are diverse in terms of the person and people behind the brand, segments they serve, the product and services that they offer and the place/country of origin, this study develops and tests these aspects into 4Ps of brand leadership (person, people, product and place). Guided by the social exchange, social identity, and brand-specific leadership theories, this study integrated ideas from Aaker et al. (2012), Park et al. (2016) [for product factors], and elements of the models of Adehn et al. (2016) [for place factors], Tuan (2012) [for person factors], Löhndorf and Diamantopoulos (2014) [for people factors] and Chiu and Cho (2021) [for the four dimensions of brand leadership] to examine the product, people, person and place (4Ps) factors impacting brand admiration and resultant brand leadership of Dangote and DSTV brands. An integrated conceptual model was developed that was to be tested in two perspectives. The person factors (brand specific transactional and transformational leadership) and the people factors (employee-brand fit, employee brand knowledge, employee brand belief, employee brand congruent behaviour, perceived organizational support and organisational identification) were hypothesised to first impact employee customer-oriented behaviour before influencing the four dimensions of brand leadership through brand admiration. The product factors (enabling, enticing and enriching benefits, warmth and competence) and place factors (product and service availability, basic country image, product-country image, category-country image) were hypothesised to impact brand admiration and in turn influence the four dimensions of brand leadership. A positivism philosophy with quantitative methods was used for data collection and analyses and to test the employee and customer models. After assessing and confirming measurement model for reliability and validity, a partial least square structural equation modelling (PLS-SEM) with SMART-PLS V4 was used to test the models and hypotheses considering the multi-variate nature of the relationships. The results showed that for Dangote employees, only perceived organisational support (people factor) significantly impacted employee customer-oriented behaviour. Because of low Dangote employee sample size (i.e., 143), most of the relationships were not significant. For DSTV, and with a higher employee sample size (i.e., 169), four people factors (i.e., employee-brand fit, employee brand knowledge, employee brand belief, and perceived organizational support) and one person factor (i.e., transactional leadership) significantly impacted employee customer-oriented behaviour). Additionally, and for only DSTV employees, brand admiration significantly impacted all four dimensions of brand leadership. In v terms of Dangote customers, brand admiration was influenced by only functional product factors of brand competence and enabling factors and place factors of product and services availability and product country image. Dangote customers brand admiration significantly impacted all four dimensions of brand leadership. For DSTV customers the 4Ps that significantly influenced admiration were person factors (customer appreciation of brand-specific transactional leadership); people factors (customer appreciation of employee customer-oriented behaviour); product factors (brand warmth, enabling and enriching benefits) and place factors (product and service availability, basic country image, and category-country image). DSTV customers brand admiration also significantly impacted all four dimensions of brand leadership of brand quality, value, popularity and innovativeness. Multigroup analyses conducted should that there were some significant differences in how some 4Ps factors impacted brand leadership though brand admiration from customers perspective and not employee perspective. The customer perspective model of Dangote explained 73% of changes in brand admiration, 23.8 % of brand innovativeness, 23.1% of brand popularity, 42.9% of brand quality and 12.2% of brand value. Conversely, the customer perspective model of DSTV explained 88.1% of brand admiration, 62.5% of brand innovativeness, 31.4 % brand popularity, 48.8% of brand quality and 45.4% of brand value. The explanatory powers of the employee models were weak probably because of the low sample size and the many constructs deleted from further analyses. This study makes theoretical and practical contributions. Theoretically it makes interdisciplinary contributions into the fields of brand management, human resource management and consumer behaviour. It develops the first 4Ps of brand leadership by demonstrating the pathway through which brand leadership can be gained from employee and customer perspectives and through employee customer-oriented behaviour and brand admiration. The 4Ps and the integrated models can be used to identify determinants of brand admiration and leadership for other leading brands in Africa, emerging economies and developed countries. Practically the managers of leading brands can get insights into important people, person, product and place factors that can drive brand admiration and leadership. For example, and for employee perspective, it was found that perceived organizational support is important for both Dangote and DSTV if employee customer-oriented behaviour (ECOB) is to be achieved. ECOB is a good determinant of customer brand admiration and resultant brand leadership, especially shown in the case of DSTV. In the customer perspective, enabling benefit and product and services availability which are all functional product and place factors are common and important factors if brand admiration and resultant brand leadership are to be achieved.Item Supply Chain Resilience and Carbon-Neutral Supply Chain Performance: Examining the Mediating and Moderating Role of Information Sharing Capability(University of the Witwatersrand, Johannesburg, 2024) Nyamvura, Elliothis study investigates the impact of supply chain resilience (SCR) on carbon-neutral supply chain performance (SCP), focusing on the mediating and moderating roles of information-sharing capabilities. Conducted within the food manufacturing and retail sectors, the research highlights how SCR, characterised by preparedness, alertness, and agility, is crucial for sustaining operations and achieving carbon neutrality amidst disruptions. The findings underscore that robust information-sharing capabilities enhance the effectiveness of SCR, enabling organisations to better manage disruptions, reduce inefficiencies, and lower carbon emissions. By fostering collaboration and communication among supply chain partners, firms can optimise logistics, engage suppliers in sustainable practices, and enhance overall environmental performance. This study provides empirical evidence supporting the integration of SCR and information-sharing capabilities as strategic tools to achieve carbon-neutral goals. The insights gained offer valuable implications for policymakers and business leaders aiming to balance economic growth with environmental sustainability. The research contributes to the existing literature by providing a comprehensive framework that underscores the importance of SCR and information sharing in achieving sustainable supply chain practices. It also suggests that adopting a holistic approach that includes these factors is critical for businesses transitioning to a low-carbon economy.Item Growth effects of human capital and innovation in small and medium sized South African firms before and after the Covid-19 pandemic(University of the Witwatersrand, Johannesburg, 2024) Maingehama, Francisca Nyasha; Callaghan, ChrisThis thesis examines the growth of small and medium-sized enterprises (SMEs) in South Africa before and after the COVID-19 pandemic. The COVID-19 pandemic introduced new challenges, which makes this research relevant for contemporary issues in firm growth. The problem addressed in this study was the need to understand how various factors, such as human capital, innovation, entrepreneurial orientation and motivation, affect SME growth. Previous research has focused mainly on organisational-level determinants without considering how these factors interact in a post-COVID-19 context. This gap is particularly relevant in South Africa, where SMEs face high failure rates despite efforts to support entrepreneurship. The study filled this gap by exploring the specific growth dynamics of SMEs in this contemporary and challenging context. Several key research questions guided the study and aimed to achieve two main objectives. The study used a two-phase methodology. First (Phase 1), it systematically reviewed the literature to synthesise knowledge on human capital, innovation, and firm growth before the COVID-19 pandemic. The systematic literature review analysed 206 articles published between 2000 and 2020 using descriptive statistics, bibliometric analysis, and content analysis to synthesise pre-pandemic research. Secondly (Phase 2), it developed and tested a theoretical model to understand the relationship between human capital, innovation, entrepreneurial orientation, motivation and SME growth in South Africa post- pandemic. In this phase, primary data was collected using a structured questionnaire with 497 responses from small firm owner-managers and analysed using Smart PLS (version 3.2.9). This research adopted a positivist philosophy, focussing on empirical patterns and causal relationships. Key findings indicated that innovation mediates the relationships between entrepreneurial orientation, human capital, and the growth of SMEs. Human capital has a direct impact on firm growth in the post-pandemic context. At the same time, motivation significantly mediated the link between entrepreneurial orientation and growth, though its effect on the human capital-growth relationship was less pronounced. This study advances knowledge by providing a detailed analysis of SME growth determinants in a post-pandemic context, offering a customised theoretical model for South African SMEs. This study also has practical implications, providing insight for SMEs and policymakers to enhance innovation capabilities and adapt strategies to post-pandemic challenges. Future research could explore the long-term ii impacts of COVID-19 on firm growth, the role of additional contextual variables, and comparative studies in different regions or sectors.Item Determinants of Corporate Social Innovation in South Africa’s Commercial Banking Sector(University of the Witwatersrand, Johannesburg, 2024) Larbi, Lee; Venter, RobThis study is situated within the realm of Social Innovation (SI), specifically focusing on Corporate Social Innovation (CSIn) within the South African commercial banking sector. Addressing a significant gap in the understanding of the determinants of CSIn within this context, the study draws upon Institutional Theory and Social Capital Theory to extend theoretical insights in the domain of SI. While traditional Corporate Social Responsibility (CSR) practices often view social and environmental issues as external to core business strategy, the concept of Creating Shared Value (CSV) has emerged, emphasising the creation of economic value while addressing societal challenges. Employing a sequential mixed methods approach, the study first administered a seven-point Likert scale questionnaire to 219 CSR professionals within commercial banks in South Africa. Subsequently, semi-structured interviews were conducted with 14 CSR senior managers and leaders to deepen the findings. Path analysis and Confirmatory Factor Analysis (CFA) were used for quantitative analysis, revealing positive and significant relationships between management support, transformational leadership, and internal social capital with CSIn in South African commercial banks. Furthermore, the study found that internal social capital mediates the relationship between transformational leadership and CSIn, and that transformational leadership mediates the relationship between management support and CSIn, as well as social proactiveness and CSIn in South African commercial banks. The qualitative phase of the study involved thematic analysis of interview data to complement the quantitative findings. Methodological triangulation was employed to enhance the validity of the iii results. Given the underdeveloped and empirically lacking literature on CSIn, particularly in the commercial banking industry, this study makes a substantial contribution by identifying key determinants and enriching the theoretical understanding through empirical insights. It underscores the importance of social innovative behaviours within banks in addressing societal challenges, fostering a culture of social innovation that contributes not only to meeting Environmental, Social, and Governance (ESG) targets but also brings numerous implicit benefits.