Abstract
Trust in business alliances between traditional companies and previously disadvantaged institutions: A barometer for black economic empowerment
Highlights
Business organisations continue to be engrossed in alliances for a variety of reasons, which include obtaining access to new markets and technology, gaining access to resources outside their purview and acquiring business knowledge that lies outside their repertoire of skills (Choi, Garcia & Friedrich 2010; Grant & Baden-Fuller 2004; Yang, Lin & Peng 2011)
Managers may use perceptions of trust as a barometer for the functioning of alliances because trust affects managerial behaviour and, whether or not such alliances enhance the prospects for black economic empowerment
The results reveal the intricacy of trust dynamics in a South African milieu, with reference to the country’s history of institutionalised racism
Summary
Business organisations continue to be engrossed in alliances for a variety of reasons, which include obtaining access to new markets and technology, gaining access to resources outside their purview and acquiring business knowledge that lies outside their repertoire of skills (Choi, Garcia & Friedrich 2010; Grant & Baden-Fuller 2004; Yang, Lin & Peng 2011). Unlike experiences in most countries of the world, South Africa’s business alliances between white or traditional companies (TCs) and black or previously disadvantaged institutions (PDIs) are neither purely voluntary nor driven purely by economic considerations (Ahwireng-Obeng & Ogunjobi 2001). Rather, they are largely the result of government suasion and legislation and are meant to facilitate the transfer of business skills to PDIs and thereby impact black economic empowerment in a desired manner (Ahwireng-Obeng & Ogunjobi 2001). For example, the mining sector, the Scorecard for the Broad-based Socioeconomic Empowerment Charter for the Mining and Mineral Industry (the Mining Charter) (RSA 2004) (and its subsequent revisions) endeavours to attain government’s objectives of redressing historical socio-economic inequalities and http://www.sajems.org ensuring broad-based and meaningful participation of black persons and black-owned companies, that is, PDIs, in the mining sector
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