African Business Research Articles

The state of crowdfunding in Africa and its potential impact: a literature review

The purpose of this review is to shed light on the current state of crowdfunding and its possible effects on African communities. The goal of this article is to give a narrative overview of how crowdfunding has evolved, along with trends, challenges, and potential effects on African communities. Despite recent advancements in the usage of mobile technology on the continent, the growth of crowdfunding based on internet platforms has been quite gradual. According to research, the success of crowdsourcing initiatives in Africa depends on a hybrid strategy that involves the "offline" network of backers. The majority of research concluded that the biggest barriers to the growth of crowdfunding in Africa were a lack of knowledge and trust in public institutions, lax laws protecting the rights of backers and ensuring transparency, as well as technology (internet connection). Also mentioned was the possibility that significant cultural aspects of offline crowdfunding, if taken into consideration, would make it easier for African business owners to adopt the practice. It has lagged behind other continents in the use of crowdfunding to raise money for small businesses or individuals, which could also help with financial inclusion in Africa, either directly for individuals or by sponsoring small enterprises. It is necessary to have a regulatory framework that promotes technological advancement while also reducing crime and fraud. Additionally, establishing platforms based on continents and creating synergies with existing financial actors would raise awareness, boost confidence, and whet interest in using them.

To Explore or to Exploit? Opportunities, Dynamic Capabilities, and Performance of Maritime Enterprises in Ghana

ABSTRACT This study investigates how the recognition and exploitation of entrepreneurial opportunities influence small business performance via interactions with firm-level innovation capability and learning orientation. We frame the study within the maritime-sector context and seek to contribute to the understanding of how the interplay between opportunity recognition, exploitation, innovation capability and learning orientation affects the entrepreneurial performance of local businesses when there is a technological policy change. The study further frames its arguments from a dynamic capability perspective and tests its arguments with data from 284 local businesses operating in the Port of Tema. Findings reveal that opportunity exploitation and learning orientation as well as their interplay have a positive and significant effect on entrepreneurial performance. The study consequently presents local micro-entrepreneurial reactions to macro-level policy changes within the maritime sector – an issue that has largely remained uninvestigated in the African business literature due to maritime blindness.

DOMAIN NAME PROTECTION IN SOUTH AFRICA

This paper investigates the legal mechanisms that are available when one is dealing with domain name disputes. It describes the domain name system and contrasts this with other forms of intellectual property. The different types of domain name conflicts are discussed and the legal measures available for protection of domain names as intellectual property are highlighted. Reference is made to national protection measures such as the Trade Marks Act 194 of 1993 and common law protection of intellectual property. Certain international legal mechanisms such as the World Intellectual Property Organisation’s rules with regard to online domain name dispute resolution and the United State’s Anticybersquatter Consumer Protection Act of 1999 are also discussed as these measures have a direct influence on some domain names of South African businesses. Lastly the changes to domain name dispute resolution procedures envisaged by the Electronic Communications and Transactions Act 25 of 2002 are discussed.Since the advent of e-commerce a new species of highly valuable intellectual property has developed. Although there are remarkable similarities between domain names and “common law trade marks” and trade marks protected by the Trade Marks Act 194 of 1993 there are also important differences, which cause uncertainty and confusion when disputes involving domain names arise. These differences flow mainly from the unique characteristics of domain names. The purpose of this note is to investigate the domain name system as it is used in South Africa, to compare domain names and trade marks, and to look at the protection mechanisms which an aggrieved party may have at his or her disposal if he should find that his business name or trade mark (or something similar) is being used by a domain name registrant in a way that conflicts with his interests. In addition, a short comparison of how these problems are addressed by the international community, particularly the USA and Britain, will be made.

Exploring the nexus of relevance for south african business schools in the 4th industrial revolution

The world of work is changing at a rapid and alarming pace. These changes have been ushered by several factors, including new technologies due to the 4th industrial revolution, political instability such as the war in Ukraine and the global health crises due to the Covid-19 pandemic. These changes have resulted in an increasingly complex business operating environment, where leaders in the 4th industrial revolution are now facing challenges that previous generations have never encountered. Business schools have a strategic role in developing leaders fit for the 4th industrial revolution. Business schools have remained a steadfast pillar of strategic development across the world with the purpose of cultivating leaders that are able to achieve business success. However, in times of change, business schools need to adapt and align to ensure that they are cultivating leaders that are able and capable of navigating through the changing world of work. This study explored the relevance of South African business schools in programmes such as the MBA. This was done by conducting 30 in-depth qualitative interviews with key stakeholders related to the business school ecosystem. The findings of the interviews were coded, analysed and interpreted into a conceptual model documenting the nexus of relevance for South African business Schools. This model presents a conceptual framework which indicates that if a business school acts within the nexus of industry, society and government, it will remain relevant to key stakeholders in the business school ecosystem.

Contested Notions of Ubuntu as a Corporate Social Responsibility (CSR) Theory in Africa: An Exploratory Literature Review

Culture significantly influences corporate social responsibility (CSR) behaviours and business ethics in Africa. In that context, various claims exist about how Ubuntu ethics can also serve as a practicable theory to guide CSR actions. In line with such claims, this study critically interrogated the practicability of utilising an Ubuntu-based approach to guide CSR actions among African businesses. It drew perspectives from published theoretical and empirical literature focusing on Ubuntu as a CSR construct. In conclusion, based on the analysed views, the article argues that although the Ubuntu philosophy adds valuable insight into how firms and managers in Africa can conduct their CSR activities, its transition from a cultural philosophy to a business ethics theory needs to be revised. This implies that the current aspirations of Ubuntu-based CSR relevant to local contexts may not be realised soon.

COLLABORATIVE APPROACH TO FLEXIBILITY, VISIBILITY AND VELOCITY IN SUPPLY CHAINS: A MULTI-GROUP ANALYSIS

Most studies focus on developed economies when investigating resilience, creating a gap in research in developing countries. This study addresses two literature gaps by examining supplier collaboration's effect on supply chain flexibility, visibility, and velocity in an African business environment and assessing the relevance of company size to this relationship. This study used a descriptive design. The population and sample were 1332 and 264 respectively. 219 questionnaire copies informed the analysis and it was performed using percentages and a structural equation model. The study reveals that resource sharing is the most effective strategy for improving supply chain resilience and collaboration practices are most effective for supply chain flexibility. Organisations pursuing supply chain resilience can implement resource-sharing and information-sharing strategies to yield resilience. Additionally, managers must note that supplier collaboration may not yield similar results across all resilience performance measurements. Medium-scale firms must focus on information sharing to improve supply chain flexibility.

South African business rescue regime

In South Africa, the devastating effects of the COVID-19 plague forced several corporates to resort to business rescue proceedings to guarantee the continuance of their operations. However, the low success rates associated with the current South African business rescue regime are a thing of concern among policymakers. In this article, we conduct a systematic literature review highlighting the shortcomings of the current South African business rescue mechanism and recommendations that can be adopted to improve its success rates. The study then proposes a broad agenda for future research. We discover that even though the South African business rescue mechanism is an economically significant, promising framework that gives companies time and space to find solutions for their problems, it is associated with numerous shortcomings that lessen its success rates. Also, the study results indicate that the regime can be improved in more than a few dimensions to augment its success rates. Further, the review divulges that implementing the current South African business rescue framework has some uncharted areas that need to be investigated. As a recommendation, policymakers should improve the business rescue regime to increase its success rates.

A Management Model for Transformative Corporate Social Responsibility Practices: The Case of the South African Business Sector

Purpose/objectives: In the absence of a socio-economic transformative business agenda, our purpose is to propose a transformative Corporate Social Responsibility (CSR) management model for businesses in South Africa. Design/methodology: A case study design was followed, using document analysis and a questionnaire as data collection methods. Thirty respondents, representing nine businesses from the banking, food and telecommunication sectors, were sampled. Findings: The results suggest that businesses do not follow a systematic, uniform reporting format annually and do not fully comply with Global Reporting Initiative (GRI) standards or B-BBEE compliance targets. Furthermore, no clear evidence could be found in the sampled companies’ sustainability reports of how much money was contributed annually to socio-economic development, and no progressive CSR trends could be discerned. Practical implications: A practical model with guidelines is presented to assist South African businesses to successfully comply with statutory and regulatory obligations and international CSR reporting requirements. Originality/value: The proposed transformative CSR management model offers a tangible framework for businesses in the absence of such a framework. The main elements of the final model are the oversight and management of CSR and CSR activities, stakeholder management, intervention impact planning, stakeholder engagement, implementation, and sustainable impact reporting. This model can be implemented and used by various stakeholders in the business sector to accelerate tangible and sustainable socio-economic transformation in South Africa.

The role of values in enhancing longevity among indigenous black South African family businesses

Background: Values play a fundamental role in the longevity of family businesses. However, not fully understanding these roles threatens their long-term survival. Given their potentially large numbers and subsequent ability to reduce unemployment and poverty, it is critical that black-owned South African businesses achieve entrepreneurial success. While much research exists on family business values in a Western and European context, research on family business values in an indigenous black South African (IBSA) context is nonexistent.Aim: The aim of this research is to determine the role that family business values play in enhancing the longevity of IBSA family businesses.Setting: The study focused on IBSA family businesses that are independently owned and managed by one or more IBSAs and which are located in various major cities of South Africa.Methods: A qualitative methodological approach following a multiple–case study design was adopted. Semistructured interviews were conducted with several key participants using a combination of face-to-face, telephone and online interviews. The six steps of reflexive thematic analysis were used to analyse the data.Results: Four themes describe the role of family business values in enhancing longevity among the IBSA family businesses. Family business values were found to guide the behaviour of family business members, build the identity of the business-owning families and their businesses and build a sense of community in both the family and the family business. The continuity and success of their family businesses were also attributed to these underlying family business values.Conclusion: Family business founders and/or current leaders should articulate the value set they uphold and use it as a resource to build the identity of both their families and family businesses while moderating the behaviours of family business members.Contribution: The study responds to several research calls to investigate family businesses in African cultural settings and provides practical guidance to scholars, entrepreneurs and practitioners on how family businesses can use values as strategic resources to enhance business longevity and success.

AN EXPLORATORY STUDY OF PREDICTORS OF COMPLIANCE WITH OCCUPATIONAL HEALTH AND SAFETY GUIDELINES IN EMERGING BUSINESS ENTERPRISES

A key operational and strategic priority of the City of Tshwane is to ensure satisfactory compliance with occupational health and safety guidelines in business enterprises that are formally registered as well as businesses that operate informally without being formally registered. Formal registration enables businesses to benefit from assistance programmes that are meant for small, micro and medium-sized business enterprises. A report published by the Statistics South Africa (2021) shows that 55.6% of South African businesses are formally registered. A study conducted by Mphai (2022) shows that the main shortcomings in terms of ensuring satisfactory compliance are poor awareness and inability to enforce applicable guidelines and municipal bylaws in business enterprises. As part of the survey, quantitative information was collected from 406 businesses in and around the City of Tshwane. The level of compliance with occupational health and safety guidelines was measured by using a set of 24 standard indicators of compliance with occupational health and safety that are used by the WHO and ILO. The level of compliance in businesses that were chosen for the survey was 53%. By WHO and ILO standards, this level of compliance is inadequate. Recommendations are made with a view to improve the current level of compliance.

Strengthening Gender Equality in Small Business and Achieving Sustainable Development Goals (SDGS): Comparative Analysis of Kenya and Nigeria

There is an increasing understanding that Sustainable Development Goals (SDGs) can protect the planet, reduce inequality and tackle poverty. However, many small business owners and entrepreneurs in Africa still see it as a misery. This study aims to determine whether the SDG's goal number five (5) is being used to motivate gender equality among small and medium-sized enterprises in Africa, particularly in Kenya and Nigeria. The study focuses on female entrepreneurs. The target population comprised 110 randomly selected businesses operating in Embakasi East constituency in the Embakasi ward in Nairobi County, Kenya, and Ikeja Local Government in Lagos Mainland of Lagos state Nigeria. The sample size was determined by relying on a prior study on women in business in Africa. The study adopted a qualitative research method, administering open-ended interviews to the respondents, and the response rate was 90.91%. Descriptive statistical analysis was adopted, and the examination of the data demonstrated that a significant number of women working in SMEs are unaware of the SDGs in the two countries despite the United Nations (UN) supporting gender equality. The research concludes that there is still a considerable difference between men and women in SMEs in Africa and the awareness of SDG goals is limited. It is recommended that the management of small businesses, regulators, and policymakers should increase the knowledge of the global goals for more awareness and sustainability adoption in African countries. This can also support sustainable business growth and close the inequality gap in small African businesses

Interne sosiale verantwoordelikheid as beeldhouer in organisies

Alvin Toffler from "Future Shock" (1982) fame may be regarded as the futurist who gave renewed impetus to social responsibility. Big business has marked social responsibility as a priority on their business agenda. Successful organisations, such as the Anglo-American Corporation, Barlows, Murray and Roberts, and food chains like Checkers and Pick-n-Pay realise that profits cannot be the sole aim of business anymore. The Southern African business environment is complex. It has numerous socio-economical and political problems. In order to survive in this environment, business needs a market Ing and business philosophy which Incorporates and solves these issues. People should be regarded as the most important as set of business. By practising social responsibility, business helps people to help themselves. A positive effect this has brought about is that it creates a favourable image of the organisation among external publics in society (Cutlip and Center, 1988). The question is whether the same principle can be applied to the building of positive images among employees in organisations. In other words, what about an internal form of social responsibility?

"It's only when somebody says a tool worked for them that I believe it will work for me": Socio-tecture as a lens for Digital Transformation

Small and Medium sized Businesses (SMBs) make up majority of employment in Africa (around 80%). Understanding the digital transformation that SMBs in Africa went through during the pandemic can play an important role in uncovering how to build solutions that better support the African business and African worker. In this paper we report on findings from a qualitative study with 40 SMBs in Kenya. The study aimed to understand the lived experience of digital transformation, the impacts of COVID-19 on their businesses, and how they responded to such impacts using technology. We found that COVID-prompted digital transformation was reactive and opportunistic, plus social and collective. Moreover, the socialness of business goes way beyond digital transformation, and influences how SMBs in Kenya start, develop and are sustained. In illustrating this, we offer a lens to understanding work and workers of SMBs in Kenya and similar contexts across the globe.

COMPETENCY~BASED APPROACH TO COMMUNICATION MANAGEMENT AS APPLIED TO THE SOUTH AFRICAN BUSINESS ENVIRONMENT

Change in the external environment, without exception, impacts upon the organisation and in particular the practising of public relations. Since the beginning of the nineties, the South African business environment Is characterised by the redefinement of business practices and partners and the shifting of boundaries as an expression of the globalization of the world economy. The lifting of sanctions, together with the events that took place in the political arena, introduced unprecedented changes in the legal-political, economic and social environments. Against this background, an urgent need for the development of a context sensitive generic framework of required outputs for communication managers in a changing business envlronment, based on an integrated approach, was identified. This article provides an overview of the dynamics of change in the external environment and the impact it has on the public relations function. A brief discussion regarding standard setting as envisaged by the National Qualifications Framework (NQF) and the professionalisation of public relations, with specific reference to training needs and accreditation, is included. The article also attempts to provide Insight into the empirical process that led to the development of a generic framework and the hierarchial classification of outputs according to levels of work.

'No Person Shall Sell Goods at an Unjust Profit': A Review of Consumer Price Controls in Southern Rhodesia, 1939-1949

This article explores the regime of consumer price controls instituted in Southern Rhodesia during World War II and continued in the post-war period up to 1949. The 'war effort' required the colony to change rapidly and tackle emerging shortages, bottlenecks, and general wartime disruptions. Southern Rhodesia responded to rising consumer prices and the spiralling cost of living by assembling price control officials, institutions, legislation and policies. Besides evaluating the immediate outcome of consumer price controls, the article also examines their socioeconomic impact. It argues that while the first few years saw some success in stabilising prices and curtailing price hikes, controls incentivised contravention and other unscrupulous practices as businesses sought to realise profits. Furthermore, controls sacrificed industrial competitiveness because businesses had little incentive to improve their production methods. On consumer price controls extended to Africans in this colonial society, the article argues that the measures were socially retrogressive because they slowed down the emergence of African business enterprises in rural areas while also stifling African wages in urban areas. Thus, while deliberately protecting white consumers, consumer price controls simultaneously enforced African under-consumption to maintain the settler colonial model.

The impact of organisational culture as a context of interpersonal meaning on the management of organisational diversity

Changes in the South African business environment is placing South African businessorganisations under increasing pressure to move toward democratic, non-racial andfully representative organisational structures. In an attempt to accelerate this process,companies are embarking on affirmative action and black empowerment programmes inorder to develop previously disadvantaged groups and to assimilate these groups intoexisting organisation cultures. The results of these efforts are viewed with interest andscepticism. This article explores the link between organisational communication andsuccessful diversity management. An overview of existing literature indicates thatsuccessful diversity management is facilitated by communication processes throughwhich sufficient shared or negotiated meaning and agreed upon language and behavioursappropriate to the workplace are constructed. This article explores the importance ofinterpersonal communication in organisational sensemaking through the framework ofthe Schemata Model of Interpersonal Communication in Organisational Contexts. Theresults of the empirical research indicate that individuals’ experiences of theorganisational culture as a context for the construction of meaning, are more importantto diversity management than individual value differences as a result of diversity interms of age, gender or race.

The impact of the South African business environment on SMEs trade credit management effectiveness

Background: Given that the impact of the South African business environment on small and medium-sized enterprises’ (SMEs) management of trade credit is largely unknown, this article argues that certain internal or external business environment variables could significantly impact SMEs’ management of trade credit effectiveness, making it necessary to ask the impact of business environment in South Africa on SMEs’ trade credit management effectiveness.Aim: To determine the impact of internal (managerial competencies, collateral, financial and business information and networking) and external (legal system, ethics, macroeconomy and corruption) business environment variables on SMEs’ management of trade credit effectiveness.Setting: This study was conducted by administering an online questionnaire.Method: Quantitative research design with purposive sampling as the sampling method, administrated to 10 450 SMEs within South Africa.Results: The results reveal several internal (5) and external (4) business environment factors significantly impacting SMEs’ effectiveness in managing trade credit.Conclusion: The article reveals how internal and external business environment factors contribute to increased SME effectiveness in managing trade credit and, in so doing, helps mitigate financial problems associated with SMEs’ trade credit as a result of asymmetric information such as adverse selection, moral hazard and credit rationing, while also understanding the significance of corruption on SMEs’ effectiveness in managing trade credit.

The Relationship Between Business Strategy and Customer Satisfaction: A study of South African business performance

The purpose of this paper is to investigate the inter-connected relationships of business strategy, customer satisfaction and business performance. Data was collected from senior executives in small, medium, large and corporate businesses in South Africa, and supplemented with existing available national customer satisfaction data. A total sample of 1,069 business leaders was realised of which 64 businesses had available customer satisfaction data. Findings revealed a relation between a clear business strategy and high levels of customer satisfaction. More importantly, both business strategy and customer satisfaction differentiate businesses on overall performance/success. This single survey study could not capture business-performance drivers within a value chain of decisions, actions and outcomes. The association between business strategy and customer satisfaction cannot be ignored by practitioners who aspire to improve business performance. Thus, if customer satisfaction aligns with a clear business strategy it can provide superior business performance in comparison to industry competitors. These results show conclusively that the clarity of a business’s purpose, through consistently prioritising one of Porter’s generic strategies, succeeds in satisfying customers. While previous research analysed the relationship between both business strategy and customer satisfaction with business performance, the originality of this study lies in linking business strategy with customer satisfaction. Furthermore, the research adapted existing business measurements to bring it in line with Porter’s generic strategies, and then adjusted the strategy classification to be consistent with how businesses prioritise strategies.

Strategic Procurement's Impact on East African Public Enterprise Performance

Purpose: The aim of this study was to determine the level of strategic procurement adoption by East African businesses. 
 Methodology: Both primary and secondary data were employed in the investigation. Secondary data from study proposals, the internet, journals, and books were combined with primary data using a semi-structured questionnaire to collect data. Correctly completed questionnaires were coded, and descriptive statistics were used to evaluate the data after entering it into a social sciences statistical tool. 
 Results: According to the study's findings, strategic procurement improves the performance of public companies by lowering costs and raising the caliber of the organization's products and services. 
 Conclusion: Corruption and a lack of coordination during implementation are significant barriers to strategic procurement impact on East Africa public enterprise performance. 
 Recommendation: According to the report, strategic procurement should always be seen as crucial to the success of a business. To plan the future of the procurement function, organizations should make sure they have qualified personnel in both strategic management and procurement.

The influence of digital transformation on the growth of small and medium enterprises in South Africa

From a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.