South Sector Research Articles

Evaluating investment decisions based on the business cycle: A South African sector approach

Sector investing aims to guide investors in identifying undervalued securities. Knowing which sectors flourish at different phases of the business cycle, investment returns may be boosted by increa...

Is tourism a spur to economic growth in South Africa? An empirical investigation

ABSTRACT In this study, the dynamic Granger-causality between tourism development and economic growth in South Africa was empirically examined during the period 1995-2016. The study was motivated by the limelight that the South African tourism sector has been enjoying in recent years, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in many sub-Saharan African countries, on the other hand. The study used two tourism proxies, namely tourist arrivals and tourism revenue, to examine this link. In addition, the study used exchange rate and foreign direct investment as intermittent variables in a multivariate Granger-causality model in order to address the omission-of-variable bias. Using the auto-regressive distributed lag (ARDL)-bounds testing approach, the study found that although the direction of causality between tourism development and economic growth in South Africa is sensitive to the proxy used and the time under consideration, in the main, a feedback relationship tends to predominate in the short run. The study, therefore, recommends that short-term policy efforts be directed at developing the tourism and the real sectors as both sectors have been found to reinforce each other in the short run, irrespective of the tourism proxy used.

Corporate sustainability: a focus on entrepreneurship, collaboration and regulation in the South African healthcare industry

The global business landscape is characterised by uncertainty that has compelled firms to look beyond traditional models of management, which are under scrutiny in terms of sustainability. Researchers have advocated entrepreneurship as a means for firms to transform themselves into flexible, more responsive units that provide enhanced services through ongoing innovation. The context and survey population for this study is the South African healthcare sector. Hypotheses are formulated to show how different variables operate through different pathways to increase overall sustainable corporate entrepreneurship activity. Instruments are first subject to validity and reliability testing, and hypotheses are tested statistically using correlational analysis, path analysis and multiple regression analysis. Results support a positive relationship between entrepreneurial orientation and sustainable corporate entrepreneurship in terms of increased internal corporate venturing (ICV), strategic entrepreneurship, and competitive capability. Moreover, the results indicate this relationship is influenced by alliances and moderated by strategic regulatory factors.

Digital Transformation in South Africa's Short-Term Insurance Sector: Traditional Insurers' Responses to the Internet of Things (IoT) and Insurtech

Digital Transformation in South Africa's Short-Term Insurance Sector: Traditional Insurers' Responses to the Internet of Things (IoT) and Insurtech

A SKILLS MEASUREMENT MODEL FOR THE SOUTH AFRICAN ENERGY SECTOR: APPLYING THE ANALYTIC HIERARCHY PROCESS TO THE SOUTH AFRICAN ELECTRIC POWER INDUSTRY

The need to understand the skills value inherent in a project in the South African electrical power sector lies at the core of addressing various skills-related challenges in this sector; and this can hamper the effective implementation of projects. In this study, a model was developed, based on the analytic hierarchy process (AHP), in which three different power generating projects were compared for their skills values at the feasibility stage. A hierarchy was developed, based on identified criteria and sub-criteria. This model was applied by various specialists in an industry-based scenario, where three different types of power generating projects (coal-fired power, nuclear power, and wind power) were compared for their skills values, with the goal of identifying the project that had the highest skills value. This process was conducted through individual guided survey questionnaires with each participant, together with tests, to determine the consensus of the participants. A sensitivity analysis determined that the validity and accuracy of the final result were acceptable. Coal-fired power generation projects were adjudicated as having the highest skills value, followed by nuclear, and then solar.

Geographic range and conservation of the Cipo CanasteroAsthenes luizae, an endemic furnariid of Brazilian sky islands

SummaryCipo CanasteroAsthenes luizaeis a relict ovenbird restricted to rocky outcrops at high elevations within thecampo rupestrevegetation of the Espinhaço Range in the state of Minas Gerais, south-eastern Brazil. This poorly known species is considered ‘Near Threatened’, but recent studies have suggested that it should be listed under a higher category of threat. To contribute to the knowledge of this species and its conservation assessment and related planning, we compiled all literature records of the species distribution (n= 16 locations), collected new data on its occurrence (n= 72 locations), and calculated its geographic range using four different approaches. First, we defined the sky islands where the species occurs (nine units) using the lowest elevation value recorded (1,100 m asl) as a cut-off. Second, we performed species distribution modelling (SDM) across the sky islands and identified an area of 2,225.21 km2. Third, we measured the species’ extent of occurrence (EOO = 24,555.85 km2) and used SDM to estimate its upper limit (EOOup = 30,697.58 km2). Fourth, we measured the area of occupancy (AOO = 228 km2) and used SDM to estimate its upper limit (AOOup = 1,827.39 km2). We analysed the Cipo Canastero sky islands in terms of landscape metrics including size, isolation, protected area coverage, shape index, core area index, and proportion covered by SDM. We observed a very fragmented distribution, especially in the North sector of the species distribution, composed of small and isolated populations (separated by up to 112 km); the South sector is the core of its distribution and is composed of larger, more connected patches with differences in shape complexity that are not strongly influenced by an edge effect. The range sizes calculated, along with other reported information regarding population and habitat trends, justifies the inclusion of the species in at least the ‘Vulnerable’ category.

Exploring divergent aspects of middle-of-the-pyramid consumers’ dining experience

Orientation: This study seeks to identify the most important dimensions related to restaurant dining among middle-of-the-pyramid consumers. Research purpose: This article aims to determine the expectations of South African middle-of-the-pyramid (MOP) consumers during a dining experience. Motivation for the study: To develop an up-market segmentation framework that will assist restaurateurs to reposition themselves to better understand the needs of MOP consumers. Research design, approach and method: Both qualitative and quantitative methods were followed. The sample in the study consisted of 18 interviewees and 363 respondents selected from full-service restaurants in Gauteng Province. Exploratory factor analysis with varimax rotation was used to analyse the dining experience dimension items, and confirmatory factor analysis was performed to achieve the objective of the study. Qualitative data was analysed using a constant comparative method. Confirmed themes and patterns were determined by the frequency with which each was mentioned for similarities, differences and general patterns. Main findings: The results show that on a six-point Likert scale, the commonality between the various dining experience dimensions was relatively high, ranging from 0.377 to 0.768. The dining experience dimension items yielded eight factors that were interpretable. The coefficient alpha varied between 0.69 and 0.92 for all eight dining experience dimensions. The eight underlying dimensions (service, social, food, layout, restaurant health, atmosphere, food health and accessibility) are independent variables that influence MOP consumers in their choice with respect to dining out, but each dining experience dimension has a particular level of importance. Practical/managerial implications: The findings of this research have implications for the restaurant industry. Restaurateurs targeting this MOP customer segment should do so by using a unique marketing mix that applies the eight dimensions identified in this study to this segment’s dining experience. Contribution/value-add: This article offers the South African restaurant service sector increased insight into the South African MOP market segment’s dining behaviour, and proposes and confirms the implications for their expected dining experience dimensions.

Impediments in promoting the functional status of African languages in higher education

This paper seeks to provide an analysis of obstacles that hinder progress in promoting the functional status of African languages in the South African higher education sector. African languages suffer marginalisation despite the existence of various empowering and restorative legislative provisions and policies. In this study, we argue that African languages have a central role in driving the transformation agenda in the South African higher education sector. In particular, marginalising African languages has disastrous implications for the achievement of social justice and cohesion, and the access to and success of indigenous African language-speaking students. A language management approach was adopted as a foregrounding theory for this paper. A language planning and policy framework was also employed as a complementary theory. The study is based on data collected through semi-structured interviews with academics in the college of humanities at a university in the province of KwaZulu-Natal. The study revealed a number of challenges, ranging from negative linguistic ideologies, orthography, weak bilingualism, among other factors. In rising to these pertinent challenges, higher education institutions need therefore to consider language management strategies designed to address language problems, particularly in multilingual contexts.

Midwifery prescribing in the South Australian public sector: Turning the vision into a reality

Midwifery prescribing in the South Australian public sector: Turning the vision into a reality

Critical success factors for the successful initiation of Lean in public hospitals in KwaZulu-Natal: a factor analysis and structural equation modelling study

BackgroundLean thinking is one of several operations-management techniques which have yet to be fully embraced in the South African health care sector. In most health care managers’ service delivery mandates, what needs to be done might be known, but it is how it should be done which might be alien to most managers. In order to recognise the “how”, one needs to know the critical success factors for Lean initiation.MethodsThe research took the form of an observational descriptive study with quantitative methods. The objectives were to identify the key variables for the successful initiation of Lean and then to conduct factor analysis and structural equation modelling (SEM) on these variables leading to the identification of critical success factors (CSFs) for Lean initiation. Simple random sampling was applied to select the participants from various categories of 500 senior managers across 73 KwaZulu-Natal (KZN) public hospitals. The sample size was 218, with a response rate of 96.8% (n = 211). For the purpose of identifying key variables for the successful initiation of Lean and then of conducting factor analysis and SEM on these variables, a self-administered, structured questionnaire was used. Data were reduced using exploratory factor analysis (EFA) to identify latent constructs. Confirmatory factor analysis (CFA) was used to determine the reliability and validity of these factors. Structural equation modelling (SEM) fit indices were then applied to assess acceptability of the measurement model.ResultsCertain variables were eliminated during EFA if they cross-loaded onto more than one factor, since this caused discriminant validity problems. In addition, if variables loaded weakly onto a factor, they were not retained. Three critical success factors (CSFs) were identified in this study: strategic leadership and organisational attitude; integration of Lean elements, tools, and techniques; and basic stability in operational processes. All reliability and validity conditions have been met (RMSEA = 0.085; CFI = 0.956 and χ2/df = 2.513), consequently rendering the model reliable and valid.ConclusionNone of the three CSFs can be viewed in isolation, as they all have significance at different dimensions of capability within the organisation. The use of these CSFs and the context, content, application, and outcome of Lean should be viewed in light of the organisation’s strategic, technical, structural, and cultural environment. Further research in the effectiveness of these CSFs for the rollout of Lean in South African hospitals would be of benefit to the Lean body of knowledge.

Identifying the strength and weaknesses of the South African tech-based industries: Insights from the Swiss South African business development programme

Previous studies have considered the importance of technological development to economic growth, which lead to more research on policy interventions that would promote innovation and technological development. However, developing new technologies without a vehicle or mechanism to deliver the technologies to the marketplace implies that the impact of new innovations and technologies will be limited. Consequently, research that investigates the development of tech-entrepreneurs, the conduits who deliver new technologies to the market place, forms a crucial component in developing policies that link innovation to economic growth in today’s modern, knowledge-based economies. This study therefore considers the outcome of the training provided by the Swiss-South African Venture Leader Programme. By using the results from the Tech-Entrepreneurship Survey, which was administered by the authors, this study provides a review of South African tech-entrepreneurs’ views on tech-based concepts, South African tech-based industries within a global framework, as well as the tech-entrepreneurs’ reflections on the relative strengths and weaknesses of the South African tech-based sector. The latter views provide an insight for policymakers as to areas where the South African tech-based sector can be assisted.

Occupational Health Screening in South Asian health care sector - Time to wake up!

Occupational Health Screening in South Asian health care sector - Time to wake up!

Performance evaluation of AR5-CMIP5 models for the representation of seasonal and multi-annual variability of precipitation in Brazilian hydropower sector basins under RCP8.5 scenario

ABSTRACTRepresentations of precipitation from CMIP5 models over the 1950–1999 period in hydrographic basins that are relevant to the Brazilian electricity sector are evaluated in this study. The majority of ensemble members adequately represented seasonal variability, although they differed about the patterns of high-frequency interannual variation. The models did not adequately represent seasonal-scale precipitation in the southern region of Brazil. Relative to other models, the CNRM_CM5 and HadGEM2-ES models demonstrated good seasonal and interannual representation over most basins, while the global CanESM2, GFDL-ESM2M and IPSL_CM5A-LR models demonstrated relatively poor performance. The models concur on the impact of the RCP8.5 scenario in the Southeast/Midwest and South sectors over the period 2015–2044, suggesting that precipitation will decrease up to 15% in the basin supplying the Furnas hydropower plant and by 12% in the basin supplying the Itaipú plant, which represents 25% of the hydroelectric production in Brazil.

Organisational alignment of South African mining organisations

Background: South African mining organisations are facing numerous challenges: decreasing commodity prices, policy uncertainty, rising input costs and increasing stakeholder expectations. To successfully address these challenges, each mining organisation needs to respond in a unified, aligned way.Objectives: This study determined the degree of perceived organisational alignment among managers within South-African-based mining organisations and uncovered the key enablers of organisational alignment.Method: Data were collected from 286 managers from a selection of all the major South African mining commodity sectors on their perceptions of the degree of organisational alignment, as well as on the enablers of organisational alignment. Applying structural equation modelling, 5 of the 11 organisational alignment enabling factors indicated a unique influence of practical importance on perceived organisational alignment. Three data-model fit tests confirmed the pattern of variances and covariance in the data.Results: This study not only presented a concept of perceived organisational alignment and associated enabling factors but also provided a wide range of recommendations on how each of the enabling factors can be leveraged in order to improve perceived organisational alignment.Conclusion: Taking a largely sociological perspective of organisational functioning within the South African mining industry’s fast-changing internal and external stakeholder environment, this study contributed to the discipline of strategy planning and execution in general and in particular to the subject area of organisational alignment.

Corporate Communication—Adversarial, Transmission, Dialogical

ABSTRACTThe trauma that followed organisational change through the twin inductions of transformation and New Public Management in some South African institutions of higher learning during the decade of the 2000s illustrates the need to pay attention to the communicative dimensions of organisational change. By means of a discussion of four kinds of workplace communication, this actual workplace study examines some specific instances of transformation and the restructuring of the South African tertiary sector, specifically, the hypothetical analytical composite New Name University (NNU) that represents an agglomeration of newly named and merged institutions that have become the visible form of the transformed edu-scape. The methodology was a lived one—action research—in that the authors were consulted by the university in which they were employed to analyse the prevailing corporate relations communication strategy and to suggest alternatives. The additional changes wrought by managerialism include new levels of bureaucracy alien to traditional academic culture and requirements of performance management that are no less onerous. The discussion suggests that a dialogical model of communication may well have brought about a different and more inclusive outcome than those that transpired in the NNU.

Carbon capture and storage retrofit: Case study for Croatia

ABSTRACT Considerable efforts are made in order to reduce the power sector’s carbon footprint. Paired with a realization that thermal power plants are likely to play a significant role during the transitional period towards a 100% sustainable energy system, carbon capture and storage (CCS) retrofit is becoming a growingly important consideration for a number of power plant operators. This paper analyzes the possibility of retrofitting a coal-fired power plant based in Croatia. A techno-economic model of the proposed unit is built setting up key elements of the technological solution and determining their capital and operational costs. Both a sensitivity analysis and a market analysis are conducted in order to best evaluate the feasibility of the CCS retrofit project. Particularities of South East Europe power sectors are considered utilizing an optimization software. Special consideration is given to the influence of the EU emission trading scheme (ETS) on CCS projects. Further research focuses on the main factors influencing the potential implementation of CCS. Key recommendations that might aid CCS deployment are outlined signaling stronger government support, stable regulatory framework, and market incentives as crucial factors able to foster CCS development. Considering the project in the study, analyses showed that, although technically feasible, CCS retrofit is currently not a financially viable option. Without a stable regulatory framework able to guarantee an adequate supporting scheme, the project is not market competitive. It is important to note that the economic gap of CCS retrofit has been considerably reduced during the past years.

Increasing wine sales through customised wine service training – a quasi-experiment

Purpose The selling of wines is usually performed by a sommelier in the context of an upmarket restaurant. However, many restaurants cannot afford to employ a sommelier and must rely on the food and beverage service personnel to assist customers with the selection of wine. The food and beverage service personnel are generally not qualified to do this. Restaurants usually do not provide training with regard to wine knowledge, wine service skills and wine selling skills. The purpose of this paper was to establish whether wine service training had an influence on the wine sales of a restaurant. Design/methodology/approach A quasi-experimental research design used two restaurants from the same franchise. One restaurant was the control group while the other was the experimental group. Wine sales were monitored and recorded for a period of three months, the second month being used for the training intervention of the experimental group. Findings Although the results were not statistically significant, the results indicated that wine service training increased the wine sales in the restaurant of the experimental group. Originality/value This study contributes to the literature in the South African hospitality sector and establishes that wine service training is a necessity for wine sales to explore further in the restaurant industry.

Bank stability in South Africa: what matters?

The study examined the determinants of bank stability within the South African banking sector. By controlling for individual bank characteristics and market characteristics, the study determined possible determinants of solvency, a proxy for bank stability, measured by z-score within the South African financial sector. The South African financial sector is highly concentrated but with a significantly large number of banks, the greater portion being foreign owned banks. The business models of some of the financial intermediaries differ from the big four and therefore the influence of the type of business model is of great interest in this study, as it highlights a unique feature of the South African financial sector. The study’s investigation used panel data estimation techniques and found that among the specific bank characteristics, lending activity and capitalization do significantly affect solvency of banks and at sector level concentration was significant. The crisis dummy also revealed that the presence of a financial crisis heightened insolvency. The results have implications for financial institutions and therefore are of interest to regulators, bank management and researchers. Policy prescription in the form of Prompt Corrective Action framework is made to ensure proactive reaction to trends likely to cause instability.

Modelling systemic risk in the South African banking sector using CoVaR

ABSTRACTIn this paper, we model systemic risk by making use of the conditional quantile regression to identify the most systemically important and vulnerable banks in South Africa (SA). We measure the marginal contributions of each bank to systemic risk by computing the difference between system risk of individual banks when they are in a normal state and when they are in distress. Using daily stock market prices of six SA commercial banks1 from June 2007 to April 2016; Our results show a considerable increase in the market risk of all the six banks during the 2008 global financial crisis with African Bank being the riskiest bank in the country. Our systemic risk ranking shows that First Rand Bank was the largest contributor to systemic risk followed by Standard Bank, Barclays Africa, Nedbank, Capitec and lastly African Bank. These results suggest that the largest banks pose a bigger threat to the banking system than the smaller banks. These findings clearly indicate that different banks pose different threats to the banking system and the economy at large. Hence, specific actions that go beyond limiting idiosyncratic risk are needed if stability is to be attained through macro prudential regulation.

Measuring the systemic risk transfer from the United States to the South African financial sector

ABSTRACTThe sub-prime crisis in 2008 illustrated how systemic risk in the financial sector of one country could spread to the financial sectors in other countries, and subsequently result in a global financial crisis. This direct transfer of systemic risk was made possible by phenomena such as contagion and common shocks. The way in which these elements of interconnectedness can magnify seemingly small levels of systemic risk, and subsequently transfer between financial sectors illustrate the necessity for a more in-depth analysis. This measurement is done using three approaches. A dynamic conditional correlation (DCC) model is used to investigate contagion. To analyse the volatility spillover effect from the US to SA, an exponential generalized autoregressive conditional heteroskedastic (EGARCH) model is employed. Finally, a new contribution is made where a marginal expected shortfall (MES) model is used to set the FTSE/JSE All-Share Index (ALSI) as a hypothetical bank in the financial sector of the S&P 500. All approaches show weak evidence for a direct systemic risk transfer and therefore indicate that any systemic risk transfer is more likely to take an indirect form through changes in capital flows or interest rates.