Faculty of Management Sciences

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An evaluation of budget allocation and expenditure patterns of Sedibeng district municipality on service delivery
(Vaal University of Technology, 2012-10) Imuezerua, Emmanuel Oiseomaye; Naidoo, Prakash, Prof.; Okubena, Olumunyiwa, Dr.
The delivery of service to communities by the municipalities has become a major challenge due to the backlog of service delivery created by the apartheid government in South Africa. The recognition however of local government as a tier of government has gained a new dynamic role as instrument of service delivery. The ultimate objective of this study is to determine the nature of budgetary procedure applicable to the municipality and also examine the budgetary allocation of Sedibeng District Municipality with regard to service delivery. The empirical study consisted of a structured questionnaire handed out to a sample population of officials at Sedibeng District Municipality. The officials were asked to respond to questions on budget allocation and compilation and how service is delivered. A total of thirty - four questionnaires were returned from the forty issued, which generated an 85% response rate. A semi structured interview was also conducted with staff of the budget unit and the Integrated Development Plan unit. The validity and reliability of the data was measured using the Cronbach’s Alpha (a statistical test used in order to generate internal consistency of the questionnaire) and analysed by regression analysis. However the findings of the empirical investigation indicated that although the municipality claim to operate the incremental method of budgeting, the zero based method and trend analysis based method are used in certain sections of the budget which contributes to shortfall in service delivered to the communities. The study concluded with a number of recommendations. These address the short comings and improvements that can be made for effective service delivery to communities.
An analysis of capital structures of listed industrial companies in South Africa
(2016-08) Popoola, Babatunde Adedeji; Beneke, J. D.; Ziemerink, J. E. E.
This study examines the capital structure theories, specifically the trade-off theory and the pecking order theory. It also analyses the influence of the capital structures choice among 72 listed industrial companies on the Johannesburg Stock Exchange ltd (JSE) in South Africa from 2005-2013 to determine whether these firms follow the trade-off theory or the peckingorder theory. The external database (INET BFA) was used to obtain the data needed for the statistical analysis. From the database, annual standardised financial statements, statement of comprehensive income, cash flow statements, financial ratios, statement of change in equity and the retained earnings to debt ratio of all the listed industrial companies in South Africa from 2005- 2013 were extracted in order to enable the conducted research. A multiple regression and correlation analysis were carried out the with leverage ratio (trade-off theory) and the retained earnings to debt ratio (pecking order theory) as the independent variables and share price as the dependent variable, in order to examine which of the two theories is closely related to share prices in South Africa. Furthermore, a multiple regression and correlation analysis was also done with common shares issued, retained earnings, long-term debt and weighted average cost of capital as the independent variables and share price as dependent variable, to determine if there is a relationship between the capital structure and share prices of the listed industrial company. The results indicated that there were little or no influence of capital structure theory on share prices, the financing practices and the performance of listed companies in South Africa. This indicated that industrial companies in South Africa rarely practice capital structure in accordance with the capital structure theories. Moreover, retained earnings and long-term debt have a positive influence on the performance of listed industrial companies in South Africa from 2005-2013.
An analysis of the relationship between working capital management and financial performance of JSE-listed construction companies in South Africa
(Vaal University of Technology, 2021-11) Sejake, Letshaba Abiel; Maseko, G. J., Dr.; Beneke, J. D., Dr.
Working capital management is an important aspect in the business in order to meet its daily activities. Permanent working capital, temporary working capital, gross working capital and net working capital are four types of working capital. The construction industry, as compared to any other industry, plays an important role in the economic growth of the country. The construction industry is regarded as the largest employer in the labour market and appropriate management of liquidity is essential. Construction contracts are divided into lump sum contracts, unit price contracts and cost plus a fee contracts and have the following role players: employer, employer’s representative, professional team, contractor, sub-contractor and adjudicator. This study analysed the relationship between working capital management and financial performance of JSE listed construction companies during the period 2009-2019. Annual financial statements, which included statement of financial position and statement of financial performance of all listed construction companies during the period 2009-2019 were extracted from the external database (IRESS) to obtain the data needed for statistical analysis. This study used a quantitative research method to analyse the relationship between working capital management and financial performance. Multiple linear regression and correlation analysis were used in this study with inventory conversion period (ICP), average collection period (ACP) and average payment period (APP) as independent variables and return on assets (ROA), return on equity (ROE) and gross operating profit (GOP) as dependent variables, in order to analyse the relationship between working capital management and financial performance of JSE-listed construction companies during the period 2009-2019. Results of this study indicated that working capital management has little or no influence on the financial performance of JSE-listed construction companies, therefore, this indicates that listed construction companies in South Africa need to manage their working capital properly by putting some new policies in place on their accounts payables and receivables, in order to have a relationship between working capital management and financial performance.
An Analysis: wealth creation by the industrial companies listed on the Johannesburg stock exchange of South Africa, 2005 - 2014
(2018-10) Oke, Oji Okpusa; Mudhombo, I.; Beneke, John
Numerous studies have been conducted to ascertain factors that impact on wealth creation of companies. It has been suggested by various researchers that economic value added (EVA) could be used to measure company wealth creation and a number of factors have been suggested that contribute to wealth creation for company shareholders. The purpose of this study is to determine the company characteristics that influence wealth creation. The study uses EVA, the dependent variable, as a measure of a company’s wealth creation. The company characteristics, independent variables, are operating capital size, capital gearing, export and domestic distribution market segments, sub-sectors and the type of product companies release into the market. Identifying company characteristics that influence wealth creation could enlighten investors on where capital should be directed in order to maximise wealth creation for the companies’ shareholders and the entire economy. Logistic regression analysis models were used to analyse 61 industrial companies listed on the Johannesburg Stock exchange (JSE) for the 10-year period of 2005 to 2014. The use of logistic regression for this analysis was necessitated by the binary nature of the data (EVA positive or negative) and logistic regression analysis is suitable for such binary data. A series of tests were conducted to assess the suitability of logistic regression analysis in evaluating the impact of company characteristics on EVA. The classification accuracy test, which shows the predictive accuracy or the forecast strength of the logistic regression model for this study yielded a forecast strength of the highest of 97.2 percent for 2006 and lowest of 63.2 percent for 2014. The results indicated the appropriateness of the logistic regression model for the study. The data on the EVA of companies were collected from INET-BFA. Other sets of data also obtained from INET-BFA include companies’ volume of operating capital, capital gearing, company product types, distribution channels and sub-sectors to which each company belongs. The historical inflation and exchange rates were also obtained and applied in comparing with EVA. The comparison was to determine if there was any relationship between EVA, exchange rates and inflation. Results of the logistic regression analysis model reveal that the sub-sector factor, capital size factor and capital gearing factor impact on EVA, while market segment and company product type do not impact on EVA. The results show that the sub-sector categories of manufacturing, retail and extraction have significant positive impact on EVA while property management does not impact on EVA. The large capital category of the capital size factor shows significant positive impact on EVA while the medium capital category shows a negative impact on EVA, leaving small capital size having no impact on EVA. The high as well as moderate capital gearing categories of the capital gearing factor show negative impact on EVA, while low gearing shows no impact on EVA. However, some years covered in the study did not have any significant factors. Results of wealth creation evaluation of the industrial companies using EVA as a metric reveals that the industrial companies created more value than was destroyed in terms of EVA. The results show that manufacturing, extraction and retail sub-sectors achieved net positive EVA, while the property management sub-sector achieved net EVA negative in the 10-year period. Furthermore, results of EVA comparison with foreign exchange and inflation rates indicated a relationship between EVA, exchange rate and rate of inflation. The results show that as inflation rises, foreign exchange depreciates, while EVA performance of companies drops during the same period. Findings and recommendations of this study are important to company managers as they offer crucial information regarding the types of activities organisations could engage in and for investors to consider the types of businesses in which to invest. The findings are also important in suggesting how companies could organise their capital structure as well as the size of the capital in order to optimise wealth creation. Such considerations by company managers and investors alike would help to increase wealth creation within the economic system. This study made use of five company characteristics, which were stated into various categories. Additional company characteristics should be used in a further study to identify other company attributes that may impact on EVA. There is also the need to carry out further studies using other methods to find out if different results could be achieved. In addition, a study is recommended to establish why no significant factor was identified in some of the years.
The application of budgeting process in public secondary schools in Gauteng South Region
(2013-04) Radebe, Lizzie Zanyiwe
A budget is an action plan that is utilized by organisations, private or public, in order to attain their objectives. Budgets are used to ensure better financial performance for organizations. They are also used to identify financial problems and take appropriate corrective measures. Public secondary schools also prepare their budgets to plan for their income and expenditure. It is through developing their budgets that public secondary schools are able to achieve their visions and missions. The purpose of the study is to evaluate the extent to which the budgeting process is effectively implemented in public secondary schools in the Gauteng South Region. To achieve this objective a questionnaire was developed to elicit responses from the participants in the research. The questionnaire was a closed-ended one with two sections, A and B. Section A of the questionnaire was developed to gather biographical information about the units of analysis, whereas Section B dealt with key issues pertaining to the budgeting process. The reliability of the questionnaire was tested through Cronbach’s alpha coefficient. The feedback from the questionnaire was analysed by means of Exploratory Factor Analysis where five factors were extracted and their reliability also tested. The factor loading matrix was computed to identify appropriate items for each factor. The items were analysed using frequencies in respect of each factor. Correlations analysis for the factors was conducted to determine the relationship between them. The findings from the study indicate that: budget planning assists school managers in comparing income and expenditure; coordination of budgeting activities is a problem at schools; lack of communication stifles effective implementation of the budget; there is no effective training and development for those involved in the budgeting process; the financial targets are not set and communicated to key stakeholders; there is lack of budget control and monitoring measures of variances of the planned and actual budget is non-existent; educators are not offered the opportunity to participate in the budgeting process let alone have the authority to make decisions on budgetary issues for those who are involved. The value of this research lies in setting appropriate guidelines for effective implementation of the budgeting process. Effective implementation of the budgeting process will facilitate efficient delivery of quality education to learners. The importance of the study is that it offers various types of budgets that public secondary schools can use to remain financially viable and sustainable.
The application of cost accounting methods by the general engineering companies in Southern Gauteng
(Vaal University of Technology, 2012-12) Sousa De Oliveira Fouché, Regina Maria; Pooe, R. I. D., Dr.; Ziemerink, J. E. E., Dr.
General engineering is characterised by its ability to manufacture and service a number of diverse products. Companies that manufacture various products can only measure costs accurately by using a job-order costing system whereby costs such as material, labour and overheads can be recorded. General engineering companies in Southern Gauteng supply precision manufactured components and services to the petrochemical, mining and steel manufacturing industries. When submitting a tender to a prospective client, companies often rely on informal methods such as “hearsay benchmarking”. Traditional costing methods are often ignored. Due to the competitive environment as well as to ensure sustainability, companies have to ensure that their pricing structures are efficient. The review of literature and research seem to indicate that companies often neglect cost accounting and often use methods that are obsolete and no longer relevant to the changing manufacturing environment. The main objective of this study was to explore the extent to which general engineering companies in Southern Gauteng are employing cost accounting methods. The study focused on the current methods and their relevance and effectiveness in providing the information required by the users to maintain a competitive edge in the market and still conduct a sustainable business. The research was conducted on the general engineering companies within Gauteng South. A literature study on cost accounting methods was undertaken, focusing primarily on cost accounting methods used by engineering companies involved in the manufacturing and servicing of diverse products. The empirical study was carried out in two phases: • A case study on a reputable general engineering company. • A survey was done on the cost accounting methods used by other general engineering companies. The study adopted a quantitative approach. The case study was used as a benchmark to draw up the structured questionnaire that was used to survey 91 general engineering companies that were selected using purposive sampling. The questionnaire embodied four sections; A, B, C and D. Section A requested general information and the demographic profile of the respondents. Section B invited views on cost accounting methods applicable to the general engineering environment. Section C gathered information regarding cost accounting methods currently used in the company. Section D examined the relevance and effectiveness of costing methods in decision making. Questionnaires were delivered by hand to owners and managers who are responsible for the costing methods at the designated general engineering companies. The study found that the respondents had a good understanding of the costing methods applicable to the general engineering environment. Although respondents had a good understanding of costing methods, the implementation thereof at their organisations was still wanting in some areas. Significant differences between companies’ views on costing methods their relevance and effectiveness and the methods they currently use were found. When companies were categorised according to their turnover it was evident that turnover did play role in the companies’ views on costing methods and their relevance and effectiveness in decision making. Those with a higher turnover had relatively more costing methods and systems in place.
The application of management accounting principles in the Emfuleni local municipality minibus taxi industry
(Vaal University of Technology, 2022-09) Mukhodeni, Mbobo Muthige; Robbetze, N.; Beneke, J. D., Dr.
The minibus taxi industry in South Africa is one of the biggest, fastest growing, and riskiest industries in the world. The minibus taxi industry contributes to the economy by creating over 600,000 jobs, providing fast and cheap transport and fighting poverty and unemployment. However, the recent COVID 19 pandemia restrictions has caused a sudden and movement of economic growth and competition has forced the minibus taxi industry to be competitive in all aspects. This has resulted in intense competition for minibus taxi owners. Minibus taxi owners are constantly in rivalry amongst themselves and with other public road transport providers. In early 1988, the minibus taxi industry started seeing an influx in the number of new minibus taxis and minibus owners. This influx created problems of competition within the industry and among minibus taxi owners. Due to the importance of this industry, this research study investigated whether minibus taxi owners in the Emfuleni Local Municipality apply selected management accounting principles in the management of their minibus taxi businesses. Selected management accounting principles in this study refers to cost volume profit analysis, cost structure, and budgeting. This research study followed a quantitative research design and a questionnaire was used to collect primary data from a census of 500 minibus taxi owners from the following five associations: Get Ahead Taxi Association (GATA), Vaal National Taxi Association (VNTA), Vanderbijlpark Taxi Association (VTA), Sharpeville to Vereeniging and Vanderbijlpark Taxi Association (SVVTA) and Civic Centre Taxi Association (CCTA) operating in the Emfuleni Local Municipality. Using descriptive statistical analysis to present the findings, the study used Statistical Package for Social Sciences Version 27. Findings obtained using an online questionnaire and printed questionnaire distributed revealed a lack of management accounting principles application among these minibus taxi owners. Furthermore, the minibus taxi owners do not apply cost volume profit analysis and most do not use budgets. However, it was found that some minibus taxi owners apply very basic cash budgeting through a pen-on-paper approach. It was also found that minibus taxi owners understand the application of cost structures. This research study recommends that minibus taxi owners should be offered training by skills sectors to apply the selected management accounting principles. The limitations of this research study included that the census was geogracial restrictions, level of education, and corona virus restrictions. Despite these limitations, the research study was able to fulfil its main objective by determining that majority of minibus taxi owners do not apply the selected management accounting principles.
Assessing the influence of internal environmental management systems on green packaging management, green information systems and organisational performance
(Vaal University of Technology, 2021-07-26) Mahlangu, D. M.; Chinomona, E., Dr.; Hove-Sibanda, P., Prof.
The effective practice of green supply chain has been a focus of both practitioners and researchers for almost a decade, mostly focusing on greenhouse effects and implementing full green supply chain control systems. However, not much attention has been given to empirical relationships between internal environmental management systems, green packaging management, green information systems adoption and organisational performance. The chief objective of this study was to assess the internal environmental management factors of the plastic packaging manufacturing organisations in Gauteng province in South Africa, mainly focusing on the three major internal environmental factors, namely pollution prevention plans, total quality management and environmental audits. Secondly, the study aimed to determine the relationship between green packaging management, green information systems and organisational performance. A positivist approach was used as this study is quantitative. A total number of 250 questionnaires were distributed to managers and employees of the chosen plastic packaging organisations. Although 250 questionnaires were distributed to the chosen organisations, only 230 were deemed to be fit for capturing due to some errors on the other 20 questionnaires. For data analysis the Statistical Package for Social Sciences (SPSS 24) was used to generate frequency tables and graphs. Furthermore, structural equation modelling (SEM) was used to generate regression weights and standard regression weights. The factor loading was also generated using SEM as well as model fitness and path co-efficiency values. A detailed research approach was followed using a sample size of 230; the results of this study show that there is a positive significant relationship between internal environmental management systems, green packaging management and green information systems. Further, it was found that most organisations that adopt green management systems are more likely to perform better than those that do not. The study also discovered that the government policies that place emphasis on green practices, not only pressurise organisations, but also help them to be strategic. Most plastic packaging manufacturing organisations usually find it difficult to operate without polluting the environment, but this study discovered that if they control their internal environmental systems, it will be easy for these organisations to adopt environmental management systems and produce green products. Also, given the changing market environments, currently most consumers prefer green products and if organisations go green this might open up new markets for their new products and enhance performance. This study examined the importance of green packaging management from the perspective of both government policies and organisational policies. The results showed that some organisations are still struggling to align their internal environmental management process with the external environment; however, the market changes are enforcing that most plastic packaging organisations start aligning their internal management systems with external systems, as it gives them opportunities towards new products and new competitive strategies that will lead to better performance. An environmental management framework was developed in this study. The framework aims to help guide plastic manufacturers with their long- and short-term strategies. In line with non-linear relationships between variables, the study recommends the following to the plastic packaging organisations: to create pollution prevention policies and strategies to improve organisational performance by eliminating pollution and avoiding penalties from the government. Pollution prevention plans, total quality management and environmental audits were used as independent variables to measure organisational performance. In line with the linear relationship between the adoption of green packaging management and organisational performance, it is recommended to the plastic packaging organisations that enterprises facing slow-moving sales growth, profitability and general performance challenges, should use green technologies as a remedy for their problems.
Budgetary planning and expenditure control processes at public Universities in Gauteng, South Africa
(Vaal University of Technology, 2022-04) Marx, Magaretha; Maseko, Johannes, Dr.; Beneke, John, Dr.
Efficient planning and effective budget and cost control are key to the financial survival of universities in South Africa. Given the #FeesMustFall, students and their parents, starting in 2018, no longer contribute to the development of new infrastructure, payroll expenditure, maintenance and other daily operational expenses of public universities in South Africa. A new funding model for higher education calls for even stricter planning and allocation of budgets to departments within an institution of higher education. Evenly important, stricter control over the actual spending of these allocated funds needs improved planning and implementation of more effective policies and procedures to answer to the needs of the post #FeesMustFall funding model. Public universities will then be even more greatly funded by taxpayer’s money via government grants. There is this constant factor of the current situation of the South African economy, which will always bring the need for best possible use of scarce resources of funds. To eliminate the abuse of funds and elements of corruption, internal control strategies and systematic automation of controls need to be employed and even more rigorously enforced. The current phenomenon of different political parties’ that interfere with autonomous public universities to use #FeesMustFall and free education as a political “play-ball” is in full swing. These political structures and unions will in all probability have a huge impact, largely on the principals and methods used to plan an annual budget and the procurement policies and procedures of operational needs and on the expenditure control in public universities in South Africa. This study investigates the budgetary planning processes and expenditure control in universities in Gauteng, South Africa. This research is done by means of a detailed empirical study of the budgeting processes, cost and expenditure control processes, procedures followed and the internal control mechanisms at some universities in Gauteng. The empirical study was conducted with public universities in Gauteng and applicable research online questionnaire were used to analyse. The primary objective of this empirical study was to investigate what budget model and budgetary processes and principles regarding decision making to allocate budgets to specific allocations in the budget. Furthermore, the research study investigated how cost management and expenditure are controlled and how internal control mechanisms are applied in higher education institutions that formed part of this study. This study investigated the manner in which the budgets for annual expenditure are planned and how the internal controls are employed to ensure effective control over expenditure at public universities in Gauteng, South Africa. This research is supported by a literature study into the role of higher education in South Africa, the different controlling bodies in South African Higher Education, funding of South African public universities, budgetary planning and earmarked spending, procurement and expenditure control and reporting by universities in South Africa.
Business growth challenges and opportunities facing small and medium enterprises in the Sedibeng region
(Vaal University of Technology, 2020-03) Ngobena, Nadege Ngonkem; Hove-Sibanda, Progress, Prof.; Mafini, Chengedzai, Prof.
The role of small and medium enterprises (SMEs) is to stimulate economic growth and competitiveness in many countries. The same applies to South Africa, where the SME sector has grown tremendously to become the engine and the lifeblood of the economy by becoming a contributor to social and economic development through employment creation and constant input to the gross domestic product. However, despite these contributions, South African SMEs face numerous challenges and opportunities which might negatively or positively impact their prospects for growth, success and sustainability. This study aimed to investigate the business growth challenges and opportunities facing SMEs in the Sedibeng Region. Through a review of literature, some challenges were identified, namely, the limited access to financial, managerial competencies, economic variable, regulations and laws, crime and corruption and lack of appropriate technology and high cost of production. Despite these challenges, SMEs are faced with some opportunities which have been created by the government to facilitate their growth, with examples including the SEDA, Ntsika Apex Fund, Khula, the National Small Business Act, Black Economic Empowerment, National Development Plan (NDP) and the Local Economic Development (LED). A four-section questionnaire was then developed using adapted measurement scales and distributed to 230 SMEs in the Sedibeng region. Respondents were selected using the non-probability convenience sampling technique. The collected data were analysed using the Statistical Packages for the Social Sciences (SPSS (Version 25.0). After testing for validity and reliability, descriptive statistics were applied in testing the perceptions of respondents towards the challenges, opportunities and business growth. Exploratory factor analysis (EFA) was applied to assess the factor structure of the collected data. Pearson correlations were used to test for the strength and direction of associations between challenges, opportunities and business growth. Regression analysis was applied in testing whether challenges, opportunities and business growth (business sustainability and external business aspects). Two SME challenges, namely, crime and technology and economic aspects, were extracted in the EFA. Additionally, two SME opportunity factors, namely ‘information technology’ and ‘environment’ were extracted in the EFA. In the same procedure, two SME growth factors, namely, external business aspects and business sustainability, were extracted. Pearson correlation analysis revealed positive and significant associations between all challenges, opportunities and business growth factors. In the regression analysis, both challenges and opportunities positively and significantly predicted SME growth. The study concludes by suggesting recommendations for limiting the impact of the identified challenges on business performance.
Business strategy, financial performance and the survival of women-owned small and medium enterprises in Gauteng province
(Vaal University of Technology, 2021-04) Mudara, Zwanaka James; Mafini, C., Prof.
Small and Medium Enterprises (SMEs) are economic drivers and key in job creation in emerging economies. In the past, the difficulties faced by women have deprived them of opportunities to establish and run successful businesses. Previous research reveals that women’s involvement in businesses creates sustainable economic growth, thereby reducing poverty. Women-owned SMEs in South Africa receive minimal government support, and many women lack the resources required to run a business successfully. Ensuring growth and profitability in women-run enterprises can alleviate the extent to which women have been disadvantaged in South Africa. In the Fourth Industrial Revolution, women have a significant role in creating jobs, which can grow the South African economy. This study aimed to determine the influence of strategy implementation in women-owned SMEs in South Africa, specifically Gauteng Province. The study considered constructs such as strategy implementation, financial performance and SME survival in women-owned SMEs. Against this background, a deductive reasoning based quantitative approach was adopted using a cross-sectional survey design to assess the connection between the constructs under consideration. The final sample consisted of 347 women entrepreneurs and managers and employees of selected SMEs in various regions of Gauteng Province. The data collected were analysed using the Statistical Packages for the Social Scientists (SPSS) version 25.0 software. Statistical analyses techniques applied in the study included descriptive statistics, exploratory factor analysis, person correlations and regression analyses. The results of the study showed that corporate and business strategies exert a significant influence on SME financial performance. However, operational strategy was statistically insignificant. Financial performance, in turn, influenced SME survival. Additionally, all three strategies, namely, corporate, business and operational, significantly influenced SME survival. Thus, the financial performance and ultimate survival of women-owned SMEs in South Africa are both dependent on strategy formulation and implementation. The research is practical in that its results may be used as a reference source for ideas in strategy formulation and implementation in stakeholder committees. The results may then be directed towards alleviating the challenges facing women-owned SMEs in South Africa and stimulate their chances of success. The study, therefore, has implications in generating employment, improving the efficiency and effectiveness of women-owned SMEs. Theoretically, the study contributes by closing the gap in literature within the area of the nexus between strategy implementation, financial performance and SME survival in the context of South Africa.
Buyer-supplier commitment and competitive performance among small and medium enterprises in Southern Gauteng
(Vaal University of Technology, 2020) Nwele, Uju Kingsley; Chinomona, E., Dr.; Omoruyi, O., Dr.
Economic growth, job creation and improved standard of living have resulted to focus mostly on small and medium enterprises (SMEs) across the world. Hence, establishing and maintaining relationships with partners across the supply chain has become a prerequisite for achieving long-term competitive benefits in the present business competitive environment. For this reason, buyer-supplier commitment is deemed an important long-term business relationship strategy towards achieving competitive performance. Although buyer-supplier commitments can serve as the basis for the development of relational standards, unbalanced commitments, on the other hand, may become a harbinger of opportunistic behaviours. This development is inimical to continued business relationship and its consequential benefits for the SMEs’ supply chain collaborators. Guided by the theoretical lens of the social exchange theory (SET), this study examines the influence of communication, product quality, flexibility, and buyer-supplier commitments on SMEs competitive performance in southern Gauteng. Using a convenience sampling technique, the study quantitatively analysed the 396 returned questionnaires. Data analysis was conducted using the statistical package for social sciences (SPSS) version 25.0 and AMOS 25.0 for the confirmatory factor analysis and the structural equation modelling (SEM) respectively. The SEM analysis helped to confirm the suitability of the model fit as well as the positive and significant relationships of the proposed hypotheses. The analysis revealed that communication, product quality and flexibility are important variables in predicting buyer-supplier commitment as they displayed positive association with buyer-supplier commitment and the latter is significant in a firm’s effort towards achieving competitive performance. The study recommends the anchoring of SMEs strategies on commitment inorder for partners to efficiently and effectively enjoy competitive benefits. This research contributes new knowledge to the body of literature by developing a research framework on SME’s business growth and competitive performance and offered recommendations based on the study, which if implemented, could improve the economy. The study also revealed a higher relationship among the baseline constructs (communication, product quality and flexibility) which have received little or no conceptualisation in literature.
Career mobility of employees with disabilities in a Gauteng-based state-owned enterprise
(Vaal University of Technology, 2022-08) Modise, Catherine Mmanare; Joubert, P. A., Prof.; Kasonkola, K., Dr.
This study noted the implications of the absence of a strategic framework to manage the career mobility of employees with disabilities in the Gauteng-based, state-owned enterprise (SOE). In response to the limited research on career mobility of employees with disabilities (EwDs), the study aimed to investigate EwDs understanding of the phenomenon, identify its enablers and inhibitors, as well as propose a strategic framework for managing it. The study is significant for the inclusion of EwDs and contributing to employers achieving employment equity targets, as required of them by the Employment Equity Act (55 of 1998). In order to achieve the study’s objectives, an exploratory design was employed by conducting individual interviews with five purposively selected participants on junior management levels. A semi-structured interview schedule was developed and piloted with two champions who represent the interests of EwDs in disability forums within the SOE. Given the prevailing circumstances of the COVID-19 pandemic, the researcher collected the data online via Microsoft Teams (MS Teams). The data were analysed manually for emerging themes using Braun and Clarke’s six steps of data analysis. The study found that career mobility was understood by participants to include promotion (job change), succession planning and gainful employment supported by opportunities for skills transfer and reasonable accommodation. Factors identified as enablers of career mobility are training and career development, disability awareness and sensitisation, reasonable accommodation, social networks and benchmarking. Those factors perceived as inhibiting career mobility are mind-set, inaccessible training, lack of confidence and poor succession planning. Through conversations with the participants, the researcher identified critical components for the development of a strategic framework to enhance career mobility for EwDs as organisational diagnostics (input factor), enabling policies and support systems (process factors) and inclusion and career mobility evident in employment equity targets being met (outcomes) to manage career mobility of EwDs in the workplace. The main limitations of the study are that the results cannot be generalised to other settings without validation of the proposed strategic framework due to the sample size involved. It is recommended that future studies consider sensitivity regarding the prevailing circumstances around research during periods of pandemics and the use of language in the field of disability research. It is further recommended that employers consider implementing benchmarked disability awareness and sensitisation programmes to create a conducive environment for EwDs to achieve career mobility in the workplace. Lastly, employers should develop and implement programmes that will enhance mental health and well-being of EwDs and consider the establishment of empowered disability forums.
A comparative analysis of the effective use of transfer pricing policies in multinational manufacturing corporations in Southern Gauteng
(2016-04) Siewe, Constantain Lendeu; Ziemerink, J. E. E.; Beneke, J. D.
This study was undertaken to assess the extent to which transfer pricing was effectively used by multinational manufacturing companies operating in the Southern Gauteng region of South Africa. The target participants of the study traded their products across international borders and as such made use of transfer pricing in one way or the other to achieve strategic objectives. Scant research has been undertaken to analyse the degree to which transfer pricing can be used to effectively influence managerial performance. On the other hand there is a wealth of knowledge on the relationship between transfer pricing and taxation. In-depth review of literature showed that even though multinationals formulated their transfer pricing policies to target financial and managerial objectives, self-interest and outside influences tended to hinder the equitable realization of both types of objectives. The study therefore set out to establish whether this is true of Multinational corporations (MNCs) in Southern Gauteng and in the process answer questions about the procedure for formulating transfer pricing policies by these MNCs, the relationship, if any, between transfer pricing and profitability and the use of transfer pricing for performance enhancement and assessment. The study made use of a mixed methods research methodology to collect and analyze data from 45 MNCs operating in the target geographical area. Of the 45 companies, 15 cooperated fully with the study. Data was collected via the use of questionnaires and follow-up face-to-face and/or telephonic interviews. Collected data was analysed using statistical methods including the Chi Square Test, standard deviation, frequency tables and the Kruskal-Wallis H test. The results from the questionnaire and interviews show that there is no universally appropriate Transfer Pricing Policies(TPP) which applies equally to all organizations in all circumstances. Firms are affected by different environmental factors while striving for tax-compliance and value creation. The fear of falling on the wrong side of tax laws is a major driving force behind transfer pricing policies of MNCs. As such other objectives that are managerial in nature become secondary and tend to be neglected if/when they conflict with the primary objective.
A comparative study of entrepreneurship education and entrepreneurial intentions amongst students at selected South African institutions of higher education
(Vaal University of Technology, 2022-01) Matsheke, Moses Jametane; Dhurup, M., Prof.; Mafini, C., Prof.
Entrepreneurial intention (EI) is considered as an element used by researchers to measure the propensity of individuals to become entrepreneurs. Higher education institutions (HEIs) have been utilised globally by governments as mechanisms to increase the EIs of students by establishing entrepreneurship as an academic discipline and instituting entrepreneurship programmes at all educational levels. However, in South Africa, the Global Entrepreneurship Monitor (GEM) reports a decline in EIs in the last decade of the population aged 18-64 years. The current study investigated the influence of the entrepreneurship education (EE) at one selected Technical and Vocational Education and Training (TVET) college and a University of Technology (UOT) located in the Gauteng Province, South Africa through a comparative analysis. The Theory of Planned Behaviour (TPB) and the Theory of Reasoned Action (TRA) were used as theories to underpin the study. In addition, Self-efficacy (SE), Need to Achieve (NA) and Instrumental Readiness (IR) were included as constructs to examine further variables for EIs. The study adopted a survey design and followed a quantitative research approach in determining the relationship between the identified variables. A self-administered survey questionnaire was used to gather the data from the sampled students at the selected HEIs. The total number of usable questionnaires was 390 from the TVET college and 362 from the UOT, giving a total of 752 responses. The empirical analysis was performed by means of the descriptive statistics, exploratory factor analysis (EFA), Pearson correlations, and regression analysis. The descriptive analysis procedure was utilised to examine the demographic profile of the respondents as well as the perceptions of the respondents towards the research constructs of the study. The EFA procedure confirmed that all measurement scales applied in the study were unidimensional. The Pearson correlation analysis was used to examine the linear association between the constructs while the regression analysis was used to test the hypotheses. The results of the hypotheses tests revealed that EE was statistically significant in predicting the EI of the students from both the TVET college and UOT. The tests further revealed that EE was also statistically significant in predicting the Attitude towards Behaviour (ATB), Subjective Norm (SN), Perceived Behavioural Control (PBC), SE, NA and IR of the students from both HEIs in a similar manner. However, PBC, SE, and NA were found to be statistically insignificant for the TVET college students while for the UOT students only SN, NA and IR were statistically insignificant. The study concludes that EE is an important tool that can be used to enhance the EI of the students at both types of HEIs. It further draws the conclusion that students from the TVET college are more dependent on external factors such as the support of their families and friends as well as the availability of resources to start thinking of starting their own business, whereas those from the UOT are more reliant on internal motivation. Based on the results, the study recommends that subjects in the curriculum in HEIs should have a learning unit dedicated to stimulating entrepreneurship amongst students. Such an approach might inspire students to venture into entrepreneurship.
Computer literacy as additional empowerment mechanism in learning programmes
(2004-01) Van Staden, A; Hoffmann, E. C.
The world of digital interactivity, of computers, of cyberspace and the "e-revolution', is making computer literacy more indispensable than ever. There is an increasing demand for ICT skills worldwide- South Africa is not alone in identifying shortages. The information and communication technology in South Africa is exacerbated by emigration on the one hand and the previously disadvantaged learners on the other hand. With an education system that is stretched, higher education has not kept pace with information and communication technology training in South Africa, therefore learners display a shortcoming of basic computer skills. The purpose of this study is to emphasise the importance of implementing computer literacy training throughout the entire learning programme of learners at higher education institutions. Learners randomly selected from the Faculty of Management Sciences, Vaal University of Technology, indicated their computer literacy via questionnaires and levels of experience. It is clear that the abilities of the learners are not sufficient to ensure that they are computer literate or that they will be effective users in the workplace. This study results in a powerful argument in support of the extension of continued growth in computer usage in the workplace.
A constructive analysis of safety control mechanisms and production costs at a coal mine
(2016) Mokoena, Mothemba Cecilia; Oberholzer, Merwe; Joubert, Deidre
Statistics in South Africa show that the fatality and injury rates within the mining industry have dropped since the end of the apartheid era. Regardless of the drop the fact remains that the mine workers, who are often the breadwinners, are still dying in the country’s mines leaving their families behind without any source of income. If they do not die they may suffer crippling injuries due to mine accidents making it impossible for them to perform their daily duties at work which results in the loss of income, loss of quality of life and this produces a humanitarian and a socio-economic problem. Mining companies incur enormous costs due to fatalities and injuries. Hence a target for zero fatalities was set in the mining industry for 2013. However, the industry has failed to reach this target that it set for itself and it is therefore of the utmost importance to encourage mining companies to invest more than they do currently in safety in order to prevent these fatal and crippling injuries due to mine accidents. The purpose of this study was to determine whether or not the requirements of safety legislation are observed and complied with by a single Colliery in South Africa that was selected for this study. The study also sought to investigate whether or not the employees of this mine observe the safety regulations to ensure safety and to maintain an accident free working environment. An analysis of organizational safety control mechanisms and production cost was conducted through the use of a structured questionnaire, completed by 151 participants. Descriptive statistics, frequency tables, exploratory factor analysis (EFA), one-way analysis of variance (ANOVA) and t-test were utilized to analyse the data. The results indicate that the Colliery was compliant with the safety legislations, a positive employee safety attitude had been cultivated and there was provision of adequate safety facilities through safety investments. Cost reduction due to the application of safety controls was also established, yet it was found necessary for the Colliery to enforce and encourage the application of safety measures to reduce the costs that are still incurred as it is evident that the application of safety controls results in reduced costs. Although the Colliery was considered compliant, with its employees showing a positive attitude towards safety controls, and with safety investments made and cost reduction achieved due to safety measures, ANOVA revealed different perceptions based on the departments in which the employees work, years of experience, English proficiency and qualifications. However, no differences were found in relation to gender and designation.
Contract of employment and its impact on the job security of domestic workers
(2013-07-19) Ntisa, Atang Azael; McFarlane, N.; Moolman, L.
When the South African authorities decided, in the 1970's, to recognize statutorily other Black workers who were engaged in other spheres of employment as employees, domestic workers were excluded from all Industrial Legislation. This resulted from the fact that domestic work, as an occupation, had been excluded from the definition of an employee. It is estimated that over one million people are engaged in this service, comprising eleven percent of overall employment in the informal sector of the South African economy. This significantly large sector of the labour market performs its work under some of the most oppressive working conditions and such exploitation is unchallenged, as it has been noted that some domestic workers do not sign contracts of employment with their employers on appointment, which can lead to insecurity in the domestic worker sector. The purpose of this research was to determine the efficiency of the contract of employment and its effect on the job security of domestic workers. Through a theoretical foundation, a number of studies have advocated that the contract of employment can be trusted to be the perfect instrument in securing jobs in the domestic sector. A survey was carried out for measuring job security. The research instruments used for data collection from 203 domestic workers, were interviews and questionnaires. The SPSS program was used to analyze the data. The results of the empirical study are presented and discussed in detail. Findings of this study revealed, that the majority of domestic workers don't have contracts of employment while a very small percentage of domestic workers do have contracts. Conclusions drawn, indicated that domestic workers who have signed contracts, enjoy reasonable conditions of employment and employment benefits than those without contracts. Recommendations based on this study are that the government encourages a very strong Trade Union Movement in the domestic sector services. The Commission for Conciliation Mediation and Arbitration (CCMA) and/or the Department of Labour facilitates annual workshops for employers of domestic workers. The CCMA, Trade Unions and/or the Department of labour facilitate training programmes for domestic workers. The government makes it a binding norm, for every employer in the domestic sector, to conclude a contract of employment with his/her domestic worker and furnish such employee with a copy of the contract, regardless of the nature of services rendered by employee. Ongoing research on many aspects of domestic workers will enhance better conditions of employment in making the lawmakers aware of other hidden agendas that require attendance in the domestic sector.
The contribution of innovation capabilities to business performance in state owned enterprises in South Africa
(Vaal University of Technology, 2022-04) Marweshe, Sefako Isaiah; Van der Westhuizen, J. P., Dr.; Mafini, C., Prof.
State owned enterprises (SOEs) form one of the largest sectors within the economy in many countries and are important contributors to national development. They globally make up a greater part of the national gross domestic product (GDP). However, the performance of most SOEs in developing countries, such as South Africa, is substandard, prompting practitioners and researchers to continue searching for lasting solutions. The aim of this study was to investigate the contribution of innovation capabilities to market and business performance in SOEs in South Africa. The study followed a quantitative survey research method. A self-completion questionnaire was distributed to a purposive sample of 278 professional employees and managers in a selected South African SOE who were based in three provinces, namely, Gauteng, North-West and the Free State provinces. The collected data were analysed using the Statistical Packages for the Social Sciences (SPSS version 25.0) and Analysis of Moment Structures (AMOS version 25.0). The techniques used to analyse the data include descriptive statistics, exploratory factor analysis, and structural equation modelling to test the hypotheses. Out of the seven hypotheses tested in this study, six were accepted. Innovative strategy, market innovation and technological innovation all significantly predicted market competitiveness. Market competitiveness significantly predicted three business performance dimensions, namely, environmental, financial, and operational. The study proposes a unique model for managing the contribution of innovation capabilities to business performance in SOEs in South Africa. Theoretically, the study contributes to the existing body of knowledge since it is an addition to the available literature on innovation capabilities and performance of SOEs. Practically, in the study for the optimisation of market competitiveness and business performance, in SOEs, emphasis should be placed on understanding and considering the appropriate innovation capabilities as input factors.
The contributions of organisational agility towards business performance within small and medium scale enterprises in Gauteng province
(2018-06) Govuzela, Sithembiso; Ntshingila, Lydia; Mafini, Chengedzai
Only one in ten newly established business enterprises survive for longer than ten years in the business environment. The reasons behind the failures of these small enterprises include the lack of access to financing, lack of financial and managerial skills, lack of expertise, as well as economic factors such as poor sales and weak growth prospects. The new norm in industry requires organisations to have a remarkable amount of agility to survive and succeed. This is important in South African SMEs given their significant contributions to the national economy. A major research gap exists, which pertains to the scant evidence of studies that focus on the influence of organisational agility on business performance of small to medium enterprises in South Africa. The purpose of this study is to investigate the influence of organisational agility on business performance in small to medium enterprises in the Gauteng province. Using a quantitative approach and a cross-sectional survey research design, a structured questionnaire was administered to 564 randomly selected owner-managers of small to medium enterprises in the Gauteng province. Questionnaire items were adapted from previously validated scales. Simple descriptive statistics in the form of percentages and mean scores were utilised in testing the perceptions of respondents towards organisational agility, its sub-elements and business performance. Hypotheses were tested using the structural equation modelling approach, which was conducted after implementing a confirmatory factor analysis to test the psychometric properties of the measurement scales. The results of the study show that owners and managers of small and medium enterprises perceived that the performance of their organisations was satisfactory in terms of technology capability, collaborative innovation, organisational learning, internal alignment, organisational agility and business performance. Upon testing the hypotheses, positive and significant relationships were observed between organisational agility and its four dimensions, namely technology capability, collaborative innovation, organisational learning and internal alignment. In turn, organisational agility exerted a significant and positive influence on business performance. The results of the study imply that the performance of small to medium enterprises can be improved significantly through adjustments to organisational agility and its subdimensions. This study is important in that its results can be applied to assist small to medium enterprises to survive and succeed in today’s turbulent and tomorrow’s dynamic operational environments, where agile organisational abilities are required.

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