Faculty of Commerce, Law and Management (ETDs)
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Item Impact analysis of institutional quality on foreign direct investment inflows into the Southern African Development Community (SADC) region(University of the Witwatersrand, Johannesburg, 2022) Malindini, Kholiswa; Pillay, PundyThe quality of governance has increasingly become a significant determinant of foreign direct investment inflows in recipient countries. Although extensive research has been conducted internationally to examine the role of institutional quality on foreign direct investment inflows, this concept has not been thoroughly interrogated in the Southern African Development Community (SADC) context. The region is poverty-stricken, unemployment rates are skyrocketing, economic growth is deteriorating, and the region only accounts for only one percent of global FDI. Thus, this study sought to examine three main objectives critically: first, the effect of institutional quality on foreign direct investment inflows into the SADC region; second, the influence of the financial development on the FDI-institutional quality nexus and thirdly, to assess whether countries’ income levels matter for attracting FDI inflows. FDI as a percentage of GDP was measured as a dependent variable, while institutional quality, financial development, natural resource availability, and GDP growth were the main explanatory variables. The study controlled for inflation rates, trade openness, and trade policy. An interaction term was generated to evaluate the effect of financial development on the FDI-institutional quality nexus in the SADC region. In order to achieve the research objectives, a mixed-methods approach was adopted, and a convergence research design was applied. Secondary data for other macroeconomic variables were drawn from the World Bank Development Indicators. In contrast, data for financial development were drawn from the International Monetary Fund’s Financial Development Index database, and data for governance indicators were drawn from the Worldwide Governance Indicators’ database. Primary data was collected through semi-structured interviews and survey questionnaires. Econometric models were developed to analyse panel data from 2011 – 2018 for 15 SADC member states to achieve the set objectives quantitatively. Specifically, the study adopted the Generalised System Methods of Moments (GMM) as the appropriate and efficient estimation technique for the analysis. Using a Pillar Integration Process, the data were integrated. The overall findings suggested that, while GDP growth, trade openness, and natural resources positively influence FDI inflows into the region and are statistically significant, institutional quality, inflation, trade policy and financial development are negatively and statistically significant coefficients towards FDI. The results revealed that a poor regulatory environment, the rule of law, and weak accountability are the main disincentives to improved quality of governance. The overall results indicated that weak institutional quality is still a significant challenge as far as inward FDI attraction is concerned; the lack of an enforcement mechanism directly impacts foreign investor property rights protection and eventually deters foreign investment inflows. Also, the unstable political framework that fails to sufficiently support economic institutions and ensure certainty, and the lack of political will, particularly by heads of government to implement and prioritize regional objectives over national interests, is a significant problem and stifles progress towards more profound integration. It also transpired that the financial markets and institutions within the region are not efficiently developed and are still fragmented, and this is attributed to macroeconomic instability and weak macroeconomic convergence. The findings also revealed that the countries’ income levels do not matter as far as FDI attraction is concerned. Based on these results, it may be necessary for SADC member states to adopt an institutional framework that promotes collaboration in the region and ensures effective and efficient implementation of the potential protocols. Given the dominance of national sovereignty over regional objectives, it may be worth examining the regimes that govern the member states; based on the view that sometimes non-compliance by member states emanates from the regime, which may sometimes not support regionalism. Convergent bilateral and multilateral arrangements are necessary for the region. The region needs to raise its export competitiveness by attracting domestic and foreign investments, and a rigorous trade integration process is a prerequisite. Policymakers in the region should focus on working together with institutions to promote development in the banking sector. Further, given the adverse effects of financial development on FDI inflows due to rising domestic credit by the banking sector, efforts should be made to maintain domestic credit levels to allow room for more FDItem Collaborative Governance and the Social Compact during the Covid-19 pandemic(University of the Witwatersrand, Johannesburg, 2023) Gilbert, AdeleSouth Africa has a strong history of tripartite co-operation and collaborative governance since democratic rule in 1994. As a democratic developing country, through the constitution, South Africa aims to follow the principles of good governance and promotes broad social actor (labour, business and civil society) inclusion as a means to develop a more equal and inclusive society. This form of governance is used across the various tiers of government in South Africa namely national, provincial and local, taking on a range of different institutional forms. It has also been used to tackle a diverse range of issues in sectors including but not limited to health, environment, economic and education. The purpose of this research study was to investigate collaborative governance in the local manufacture of Personal Protective Equipment (PPE) and the insights this has provided on the challenges, obstacles and prospects for establishing a social compact for a South African economic recovery post the COVID-19 pandemic. This was done by exploring the understanding of collaborative governance and social compacting and the perspective of different social actors to the success of using these forms as a means to achieve successful collaborative outcomes for society during the pandemic. The study then considered what insights this process of collaborative governance has provided to guide the development of a social compact. Lastly the study explored if social solidarity plays any role in collaborative governance and what this enables within such an institutional setting. The outcome of the research has revealed the importance major external shocks such as a global pandemic play in creating a context of shared risk, creating the potential for uniting social actors in the pursuit of solutions which serve the broader society. This has been contrasted by findings in relation to the effects of sectoral interests on the outcomes of collaborative governance, as well as the layered complexity of social actor groupings within South Africa and its impact on long term societal gains. It appears that this, along with a number of other challenges, poses significant obstacles to the development and implementation of a more society-centred social compact for South Africa, which is supported by implementation and accountability across social actors aimed at real societal transformationItem The role of decentralisation in managing intra-state conflict in South Africa(University of the Witwatersrand, Johannesburg, 2023-07) Fourie, Reneva Esther; Van Nieuwkerk, AnthoniThis research study investigates the imperatives that led to the formation of South Africa’s post-apartheid decentralisation model and the conditions that enabled it to relatively appease the key role-players in South Africa’s pre-1994 conflict, as well as to critique the contribution of the model to state legitimacy. It is set in the context of decentralisation and intra-state conflict on the African continent in an endeavour to contribute to the African Union’s efforts to ‘Silencing the Guns’ by 2030. Regardless of its form, decentralisation is profoundly controversial, yet it is crucial to transitional governments and post-conflict reconstruction debates. However, current literature does not sufficiently enable us to understand the conditions under which a country can devise a decentralisation model that responds to the drivers of conflict. South Africa’s unique historical experience in the development of its post-apartheid model of decentralisation provides an opportunity to critique and discuss these debates through a fascinating case study. Qualitative data collection methods, analysed through a specially constructed three dimensional framework, underpin this interpretive case study. The data collection method for dimension one of the decentralisation framework of analysis is semi-structured interviews with persons who either participated directly in the design of the decentralisation model, or influenced, or observed the process. It responds to the research question, ‘What is the role of decentralisation in managing intra-state conflict in South Africa?’ The sub-questions relate to the context, formation process, and design of the decentralisation model and its perceived effectiveness. Furthermore, document analyses are applied to critique the model’s contribution to state legitimacy. In this regard, primary sources are analysed in dimension two to demonstrate how regulatory prescripts support the decentralisation model to facilitate a reciprocal interrelationship between power and authority; to promote compliance, trust, accountability and innovation; to drive the interplay between these former two aspects; and to enable citizen influence and oversight and social reciprocities. Additionally, document analyses of domestic and international quantitative secondary sources are applied in dimension three to critique governance effectiveness concerning economic management, social development, government orientation and citizen participation. The research study provides new insight into the conditions that preceded and surrounded South Africa’s transition and the different challenges and interests to which the negotiations over decentralisation tried to respond. In South Africa, the depth of the conflict had attained such severity that it had reached a point where there was mutual agreement that some accommodation had to be found. The collectively agreed, unitary post-apartheid decentralisation model, which has significant federal features, sustained the peace for almost three decades. The research study, by applying the three-dimensional framework of analysis, also provides theoretical insights into the relationship between a given decentralisation model and state legitimacy as part of managing intra-state conflict. However, by focusing only on the intrinsic aspects of managing intra-state conflict, the study does not deal with the complexities that arise from adverse external interests and interferences. Furthermore, so many factors shape state legitimacy, which cannot be addressed by a decentralisation model only. Accordingly, the study finds that despite the post-apartheid decentralisation model’s effectiveness in relatively appeasing all the negotiation participants, it was an incomplete arrangement in that it could not contribute to stemming poverty and inequality or empowering local communities. The conclusion flowing from this research is that decentralisation is an eminently political process that, at its best, is dynamic and elastic in responding to changing times and that its application in conditions of conflict is relative.Item Examining the extent which the SAIVCET support institute for TVET colleges in South Africa has accomplished its primary roles one to six(University of the Witwatersrand, Johannesburg, 2023) Tutu, Bongiwe; Motsepe, DikgangThe National Development Plan (NDP) envisions South Africa’s economic transformation by focusing on higher education and skills development. Since its adoption in 2012, it has emphasised the crucial role of Technical, Vocational Education and Training (TVET) colleges as the major institutions to improve education, skills development and to enhance economic growth. Despite this realization, there are shortfalls that remain within TVET colleges, whereupon the NDP states, “the FET (TVET) system is not effective, it is too small and the output quality is poor” (NDP, 2012: 40). The Department of Higher Education and Training (DEHET) established the South African Institute for Vocational and Continuing Education and Training (SAIVCET) to support the TVET colleges. The SAIVCET was established on six primary roles and three implementation objectives. Using the qualitative survey research approach, adopting questionnaires and semi-structured interviews to gather and assess data, this research examines the extent to which the institute has accomplished the six primary roles and fulfilled the purpose behind its establishment. Through the purposive sampling of the research participants used, this research has found that the rationale and importance for the SAIVCET to strengthen the TVET and CET sector is unquestionable. However, research findings and conceptual analysis indicates that there have been challenges to the formal implementation of the SAIVCET. The institute was projected for 2012, however has yet to be established due to funding and governance constraints. As a result, SAIVCET has no governance structure. In the interim, a “SAIVCET Project” which is an informal body was formed to fulfil some of the functions and primary roles of the main SAVICET body. In a recent 2020/21 DHET Annual Performance Plan, the SAIVCET is still presented as a planned initiative, which has been projected for implementation in the period 2020 – 2025 (DHET, 2020: 10). In examining the primary roles of the SAIVCET support institute for TVET colleges in South Africa, this research has found that, the extent to which the SAIVCET, even as acting through the SAIVCET Project, fulfilled its primary roles is poor. The findings indicate that the SAIVCET has attained average to poor results in effectively fulfilling of its primary roles. Each of the primary roles received consolidated scores that are below average (below 50 percent) from the participants’ primary data. The conceptual framework and analysis further indicates the lacking impact of the institute, particularly under assessments of the Good governance framework and the Education policy implementation framework. This research recommends DHET uphold publishing annual reports to the functions and progress of the SAIVCET and SAIVCET Project, in order to enable public awareness and engagement on developments within higher education. Further, this research recommends a two-year progress review of the SAIVCET once it has been established. Further, this research study recommends coordinated efforts among various ministries, stakeholders, public and private sectors and higher education institutions, on the functions and resources for SAIVCET. Furthermore, this study recommends an institutional push for shifts in mind-sets, particularly among employers with bias when selecting candidates from higher education institutions and TVET colleges. Furthermore, this research recommends funding and resources, which are allocated without reservations, but for the sole purpose of advancing progressItem Assessing Forward Planning in Rural Local Government: A Case Study of Moqhaka Local Municipality(University of the Witwatersrand, Johannesburg, 2023) Sebola-Samanyanga, Jackson; Pooe, T. K.Rural planning in post-apartheid South Africa faces challenges in addressing the future proactively. This is largely due to the unjust policies and governmental approaches of the colonial era and apartheid that continue to this day. Literature suggests that little attention has been paid to the relationship between rural planning and future orientation, with planning being reduced to solving today's problems rather than developing a vision for the future (Isserman, 1985; Meng, 2009; Muñoz-Erickson et al., 2021). Against this background, Ngumbela (2021, p. 84) poses a critical question: Are South African local municipalities the tools of effective and efficient local service delivery, backed by a capable state and Developmental Local Government whose impact is merely a short drive from the fog into the light – or are they moving further into the dark? (2021:84) The study problematises rural local government development as preoccupied with redressing past injustices and aims to determine whether a proactive engagement with the future informs non-metropolitan rural local government planning. Adopting a qualitative approach, the study evaluated Moqhaka Local Municipality's planning systems and tools using two methods: interviews and content analysis. The study found that the question posed by Ngumbela (20210) highlights the need for local governments to be restructured and redefined in order to be developmental. It also proposes that future studies and planning be (re)merged to maximise the known and minimise the unknown. In essence, the study provides valuable insights into the realities of local rural planning and its engagement with the future.Item The relationship between sustainability reporting and banks financial performance(University of the Witwatersrand, Johannesburg, 2023) Msimanga, Thokozani; Godspower-Akpomiemie, EuphemiaSustainability reporting, which involves environment, social, governance (ESG) is about reporting non-financial information regarding a company. It explains how the three sustainability components affect a company. ESG has gained significant popularity in the last ten years as new risk factors for investors are introduced by global sustainability concerns such as climate change, growing regulatory constraints, and social transformations. There is limited ESG-related research in South Africa, hence the aim of this study is to empirically evaluate whether sustainability reporting, improves financial performance and value for investors and other stakeholders. This has created a knowledge gap that may be investigated and used to start a discussion about the relationship sustainability has with financial performance from a South African banking perspective. This study’s data covered a 16-year period being, 2006 – 2021, across the six largest locally controlled banks listed on the JSE; Absa, Capitec, FirstRand, Investec, Nedbank, and Standard Bank. To examine for a statistical association, panel data regression analysis is used in this study.Multiple methods of estimation were considered, ultimately various diagnostic tests conducted concluded the fixed effects model as the most robust. A negative relationship with financial performance was found. Two models, Return on Equity and Tobin’s Q model showed a negative and significant relationship with the performance of banks. The Return on Assets model also indicated a negative relationship, but it was not statisticallysignificant. This indicates that an increase in sustainability reporting, leads to a decline in financialperformance from both an accounting and market perspectiveItem Land management and the use of communal land: The case of the Mchunu Traditional Authority and Alfred Duma Municipality(University of the Witwatersrand, Johannesburg, 2023) Khanyile, Nonkululeko Nomfundo; Abraham, CarynFor centuries, traditional leadership in Africa was the sole authority over traditional land. They were in charge of allocating and managing land. The beginnings of colonisation and, later, apartheid in South Africa, disrupted these functions by traditional authorities. This posed a significant challenge to the traditional authorities. African countries were decolonized in the years that followed. Following decolonisation and the apartheid government, the citizens in South Africa elected a democratic government that established laws that could regulate how traditional leaders performed their duties in areas under their jurisdiction. However, in 2013, the Spatial Planning and Land Use Management Act (SPLUMA) was introduced, and this act presented conflicts between traditional authorities and the local government. The conflict emanates as a result of ambiguities in the act that do not specify the particular roles of local government and traditional authorities in relation to land use management. The research looked into how the Mchunu Traditional Authority (MTA) and Alfred Duma Municipality in Ladysmith, KwaZulu Natal, interact on land governance issues. The study employed a qualitative research methodology and utilised snowball sampling. It used in-depth interviews to gather primary data. The questions focused on the governance interface between the two institutions and their distinct functions and roles. The study found that the local government and the traditional authorities are knowledgeable about their functions, which is contrary to some of the findings in studies referenced in the literature. It also found that the institutions have never experienced conflict on issues of land governance and continue to efficiently co- governItem The impact of organisational governance on team autonomy in large-scale agile projects(University of the Witwatersrand, Johannesburg, 2023) Dhlamini, Bridgette Sebueng; Appiah, Erasmus KofiTraditional software development methods have proven to be ineffective for large- scale projects in the current digital era. This, as well as the complexities of large-scale projects, has exacerbated the need for more and more organisations to adopt agile project methodologies for large-scale projects to keep up with the fast-paced technology landscape. The adoption of agile methodologies can only work if it is supported by organisational structures that enable agile to be effective. These include governance structures and organisational culture that enable continuous rapid delivery of quality software. Team autonomy is key in enabling fast-paced delivery, and there should be alignment between the organisational governance structures and the autonomy of project teams. It is not clear as to what level of autonomy should be afforded to project teams, at the same time ensuring that the project receives the right level of oversight. The research followed a qualitative research approach, and 10 participants who had experience working on agile projects in one of the big banks in South Africa were interviewed. The study found that the lack of team autonomy in large-scale agile projects was due to the organisation’s little to no tolerance for risk and the blaming culture. To change this, the organisation needs to cultivate a learning culture that will allow project teams to learn and grow through their mistakesItem Examining the extent which the SAIVCET support institute for TVET colleges in South Africa has accomplished its primary roles one to six(2023-02) Tutu, BongiweThe National Development Plan (NDP) envisions South Africa’s economic transformation by focusing on higher education and skills development. Since its adoption in 2012, it has emphasised the crucial role of Technical, Vocational Education and Training (TVET) colleges as the major institutions to improve education, skills development and to enhance economic growth. Despite this realization, there are shortfalls that remain within TVET colleges, whereupon the NDP states, “the FET (TVET) system is not effective, it is too small and the output quality is poor” (NDP, 2012: 40). The Department of Higher Education and Training (DEHET) established the South African Institute for Vocational and Continuing Education and Training (SAIVCET) to support the TVET colleges. The SAIVCET was established on six primary roles and three implementation objectives. Using the qualitative survey research approach, adopting questionnaires and semi-structured interviews to gather and assess data, this research examines the extent to which the institute has accomplished the six primary roles and fulfilled the purpose behind its establishment. Through the purposive sampling of the research participants used, this research has found that the rationale and importance for the SAIVCET to strengthen the TVET and CET sector is unquestionable. However, research findings and conceptual analysis indicates that there have been challenges to the formal implementation of the SAIVCET. The institute was projected for 2012, however has yet to be established due to funding and governance constraints. As a result, SAIVCET has no governance structure. In the interim, a “SAIVCET Project” which is an informal body was formed to fulfil some of the functions and primary roles of the main SAVICET body. In a recent 2020/21 DHET Annual Performance Plan, the SAIVCET is still presented as a planned initiative, which has been projected for implementation in the period 2020 – 2025 (DHET, 2020: 10). In examining the primary roles of the SAIVCET support institute for TVET colleges in South Africa, this research has found that, the extent to which the SAIVCET, even as acting through the SAIVCET Project, fulfilled its primary roles is poor. The findings indicate that the SAIVCET has attained average to poor results in effectively fulfilling of its primary roles. Each of the primary roles received consolidated scores that are below average (below 50 percent) from the participants’ primary data. The conceptual framework and analysis further indicates the lacking impact of the institute, particularly under assessments of the Good governance framework and the Education policy implementation framework. This research recommends DHET uphold publishing annual reports to the functions and progress of the SAIVCET and SAIVCET Project, in order to enable public awareness and engagement on developments within higher education. Further, this research recommends a two-year progress review of the SAIVCET once it has been established. Further, this research study recommendscoordinated efforts among various ministries, stakeholders, public and private sectors and higher education institutions, on the functions and resources for SAIVCET. Furthermore, this study recommends an institutional push for shifts in mind-sets, particularly among employers with bias when selecting candidates from higher education institutions and TVET colleges. Furthermore, this research recommends funding and resources, which are allocated without reservations, but for the sole purpose of advancing progress, transformation and human development. This requires rigid policy interventions within South Africa’s education system. This research can be used to build on new and existing studies of frameworks on TVETs and SAIVCET.Item Governance and dynamic capabilities in South African state-owned energy companies(University of the Witwatersrand, Johannesburg, 2022) Stock, XolaGovernance of state institutions is widely accepted to be one of the critical levers to unlock clean energy technology innovation that fosters energy transition. The dynamic capabilities framework has been successfully used globally by State Owned Entities to unlock the bureaucratic competencies of senior management towards increasing innovation outcomes, but the framework is not usually associated with entities’ governance. This research highlights the criticality of this framework in the governance structures of entities. The prolonged past governance and financial woes at the two South African state-owned energy entities of PetroSA and iGas invite a level of scrutiny regarding the true extent of the deployment of the dynamic capabilities therein This qualitative research sought to explore how the deployment of dynamic capabilities by senior management in the two entities impacted their innovation outcomes. Data collection was done through semi-structured interviews of seven participants. The research findings show that the dynamic capabilities were not holistically deployed by the entities in the six business areas wherein they reside. The DC’s framework is the appropriate strategic framework to be deployed by entities and their management if true innovation outcomes are to be increased.