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  • Colin Reddy teaches at the Johannnesburg Business School's Department of Business Management. He has a PhD from the U... moreedit
Early inquiries into the contribution of performance-based cultural norms to growth-oriented entrepreneurship render their influence not significant. In a similar effort to explain cross-country differences in growth-oriented... more
Early inquiries into the contribution of performance-based cultural norms to growth-oriented entrepreneurship render their influence not significant. In a similar effort to explain cross-country differences in growth-oriented entrepreneurship, we propose and test a midrange,
contingency-based model receiving strong support in analysis of 267 country-year observations from 66 countries. Results show economic development complements performance-based cultural norms to increase the extent of a country’s growth-oriented entrepreneurship; and this complementary effect appears only among those countries with high levels of regulatory simplicity. For policymakers targeting economic growth, our research suggests that policies should create a fertile environment for growth-oriented entrepreneurship to thrive on the
established norms within their particular society; rather than benchmark possible approaches against other countries with high levels of growth-oriented entrepreneurship but very different established norms. We hope that our study captures the complexity of the impact of cultural
norms on the levels of growth-oriented entrepreneurship among countries.
We set out to develop a conceptual framework that integrates the social entrepreneurship and venture philanthropy literature. We rely on entrepreneurship theory to do this: in particular, the perspective of entrepreneurship as an... more
We set out to develop a conceptual framework that integrates the social entrepreneurship and venture philanthropy literature. We rely on entrepreneurship theory to do this: in particular, the perspective of entrepreneurship as an individual-opportunity nexus. This perspective is fitting since individuals interested in social entrepreneurship require the resources of venture philanthropists to exploit opportunities in the social space. In the move to understand how social entrepreneurs interact with venture philanthropists to solve social problems in a variety of contexts – within developed and developing countries, for example-we hope that our conceptual framework can serve future research as a basis to examine and compare this interaction against different contexts. We provide the " what " of this interaction so that researchers can proceed to better understand the " how. "
The question of how multinational enterprises (MNEs) respond to local corporate social responsibility (CSR) expectations remains salient, also in the context of many African governments’ attempts to define and regulate business... more
The question of how multinational enterprises (MNEs) respond to local corporate social responsibility (CSR) expectations remains salient, also in the context of many African governments’ attempts to define and regulate business responsibilities. What determines whether MNEs respond to such local, state-driven expectations as congruent with their global commitment to CSR? Adopting an institutional logics perspective, we argue that a higher global CSR commitment will lead to higher local responsiveness when regulatory distance is low, but it will lead to lower local responsiveness when regulatory distance is high. We find support for our hypothesis using data on 93 MNEs’ responses to the South African state’s Broad-Based Black Economic Empowerment policy. We thus contribute to the global–local CSR literature and show how MNEs’ local CSR responsiveness will be shaped by not only the local context but also their home country and firm-internal environments.
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Purpose and problem: Governments through their policy support of new and growing enterprises continue to emphasise economic incentives as if most members of the population prioritise material gain. This article argues that high levels of... more
Purpose and problem: Governments through their policy support of new and growing enterprises continue to emphasise economic incentives as if most members of the population
prioritise material gain. This article argues that high levels of government policy support for new and growing enterprises crowd out the population’s need for autonomy when potential
entrepreneurs perceive government to be controlling.

Methodology: The researchers constructed a country-level panel data set based on the Global Entrepreneurship Monitor, World Bank Group Entrepreneurship Survey, the World
Economic Forum competitiveness reports and the International Monetary Fund database for 44 countries over the period 2000 to 2007. Since we relied on eight years of secondary data, we applied panel analysis to the regressions. We used multiple regression to model the moderating effects of government policy support on the autonomy-entrepreneurship
relationship.

Findings: The findings show that government policy support tends to buffer the effect of autonomy on entrepreneurship, lending support to the article’s argument.

Implications: This research has tested one of the most important anomalies in economics on entrepreneurship data: that ‘crowding out’ might reverse the most fundamental economic law, namely that raising economic incentives increases the supply of entrepreneurship.
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The difficulties of exporting require immense commitment on the part of owner-managers of SMEs. This article sought to investigate how the commitment of owner-managers to the export market influences the export capacity of SMEs in a... more
The difficulties of exporting require immense commitment on the part of owner-managers of SMEs. This article sought to investigate how the commitment of owner-managers to the export market influences the export capacity of SMEs in a developing country context such as South Africa. It found that export commitment influences export capacity indirectly by means of the SME’s export capabilities and confirms the importance of an experiential learning process in the case of SME exporters within developing countries. The article emphasises the importance of the SME owner-manager’s commitment to set upon the often difficult and energy sapping experiential learning process for developing export capacity. Up to now, much of the literature on SME internationalisation from developing countries addresses what factors contribute towards their internationalisation but not how they internationalise. We have integrated three concepts in the internationalisation literature - export commitment, export capability and export capacity - into a process model on how export capacity develops among SMEs.
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There are at least two good reasons why linking BEE to CSR and sustainable development is important for companies, as well as for the South African economy as a whole. The first relates to communication with, and perceptions of,... more
There are at least two good reasons why linking BEE to CSR and sustainable development is important for companies, as well as for the South African economy as a whole. The first relates to communication with, and perceptions of, international
stakeholders, especially investors. International investors are often apprehensive about BEE. One of their key concerns is the prospect of value dilution in connection with ownership transfer to HDSAs. This was apparent in the case of the mining
charter negotiations and the subsequent road show by government and big business to ameliorate investors‟ concerns. The broader sustainable development discourse,
however, has generally received greater support from institutional investors, in particular. Linking the BEE and sustainable development discussions may hence
help alleviate some of the negative perceptions and reactive approaches to BEE among investors and managers.

Secondly, understanding the inter-relationship between most BEE objectives and the international CSR requirements will also allow for more effective and efficient management systems within companies. In most prominent companies active in
South Africa, management systems have evolved to respond to increasing requirements and expectations for environmental and social performance enhancement. Concurrently, intense pressure for effective BEE responses have in many instances led to the establishment of separate, more high-level management structures. As far as BEE elements other than ownership are concerned, these new structures have often led to duplication and inefficiencies, or even the eclipsing of
existing CSR efforts. There is thus significant benefit to be derived by companies from a strategic approach that sees BEE as an inherent part of the company‟s broader CSR strategy and management. This would allow for the establishment of
more efficient and synchronised management and reporting systems. Corporate reports would more likely satisfy the South African government‟s demands for BEE related information, as well as stakeholders‟ concerns with broader CSR issues.
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Inconsistent measurement of the various elements of Black Economic Empowerment - since the various charters differ in the definitions of their BEE targets – will hinder monitoring and planning of BEE. Relevance: Several commentators on... more
Inconsistent measurement of the various elements of Black Economic Empowerment - since the
various charters differ in the definitions of their BEE targets – will hinder monitoring and planning of BEE.
Relevance: Several commentators on BEE have called for a global charter to overcome inconsistencies
among the various sector charters. The BEE Codes of Good Practice developed by government, due to be
released before the end of 2004, will go a long way towards reconciling these inconsistencies.
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Research Interests:
The BusinessMap Foundation undertook a study into the ownership of the JSE and the implications for Black Economic Empowerment (BEE). The purpose of this study (Phase 1) was to gain a broad understanding of the ownership structure of a... more
The BusinessMap Foundation undertook a study into the ownership of the JSE and the
implications for Black Economic Empowerment (BEE). The purpose of this study (Phase 1) was
to gain a broad understanding of the ownership structure of a significant part of the SA economy.
The Foundation intends to study the black ownership of the JSE in greater deal in Phase 2 of this
project. BusinessMap Foundation analysed ownership of the JSE from a summary of the top 200
JSE companies as well as case studies of five companies representing five key sectors of the
JSE.
Black ownership was estimated as 12.36% to 14.57% overall, at the end of September 2002,
extrapolated from an analysis of the five case studies. The analysis revealed that the beneficial
owners included both direct owners (such as private investors) and indirect, or institutional
investors. This enabled the Foundation to assign beneficial owners into categories, which were in
turn assigned estimated black ownership percentages.
A broad analysis of the JSE ownership structure was performed. This included a study of how
foreign ownership compared to local ownership. The importance of this was to estimate what
percentage of the JSE could practically be targeted by BEE objectives, since targeting foreign
ownership would have to be managed carefully for fear of disinvestments. Since 68% of the
market capitalization is SA owned, this leaves a large target area for BEE policies.
The classes of JSE ownership were analysed. Institutional investors own 35% of the JSE, and, at
least, the Government Pension Fund owns about 10%. This is where the largest area of black
ownership occurs, specifically that of “ordinary” black people (those who don’t own shares or
businesses directly). As direct black ownership increases, resulting in the furthering of
employment equity and black skills development, this indirect ownership should increase as more
employed black people take out pension policies and invest their earnings in insurance and life
assurance policies. Since most of the institutional investment occurs in large companies, it will be
useful to explore models that translate this empowerment ownership into greater black influence
or control. What would occur is greater black representation on the board of directors who would
be able to promote empowerment initiatives in both employment equity and skills development.
The benefit for large corporates is that they could then enjoy the support of the broader
community regarding the business risks they face.
The top ten shareholders were noted. Anglo American Plc. Leads the list with the PIC
representing the government pension fund a close second. It was observed that most companies
“owned one another” so that it is difficult to obtain exact results of ownership figures.
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According the Statistics SA Census 2001, women make up about 52% of the SA population. Catalyst1, which specialises in gender research found a strong correlation between the number of women in top executive positions and financial... more
According the Statistics SA Census 2001, women make up about 52% of the SA
population. Catalyst1, which specialises in gender research found a strong correlation
between the number of women in top executive positions and financial performance
among Fortune 500 companies between 1996 and 2000. Among Black women in
particular lies a major resource pool to draw from in achieving Broad-based Black
Economic Empowerment (BBBEE) targets. In fact Black women make up 46% of the
economically active population among Black people2 (both men and women).
This study makes use of secondary research through a desktop study. We made use
largely of a few major primary research studies as follows:
1. BBBEE baseline report 2007- Presidential Black Business Working Group;
2. Mind the Gap: The Gender Gap in the SA Workplace, July 2005, Empowerdex
3. 8th Commission for Employment Equity (CEE) Annual Report, 2007-2008,
Department of labour, 2008
4. Monitoring Changing the Guard, KPMG, 2008
5. Review of Trends on Entrepreneurship and the Contribution of Small Enterprises
to the Economy of SA in 2000-2006, Small Enterprise Development Agency
(Seda), 2007
The aim of this study was to arrive at the latest snapshot of how Black women feature in
the latest status of BBBEE. A weakness with several existing studies remains its
qualitative nature. Where an effort has been made to gather quantitative data, there still
lacks data specific to Black women. Thus despite this study, there may still be a need to
conduct primary research through a proper survey that measures the extent to which
Black women feature in the implementation of BBBEE. One of the benefits of this study
then, aside from making a smart estimate of the extent of Black women within all the
1 The Economist, 23 July 2005
2 Labour Force Study, September 2007
Black women and BBBEE
BBBEE and women 5 Nov08 rev3
4
elements of BBBEE, is to locate the gaps within existing research where primary research
is still needed specifically on Black women.
The following discussion alludes to some areas of possible research focus going forward
from this study viz. preferential procurement, enterprise development and socioeconomic
development.
• Black women ownership - The influence of Black women has to be increased in
line with their level of economic interest. Useful insights can be gathered if we
delve deeper into why the Limpopo and North West provinces perform well in
both economic interest and voting rights of Black women compared to other
provinces. Similarly we can learn more about how the BBBEE policy works at an
industry level if we delve deeper into why the Electricity supply, Water and Gas
industries perform well in both economic interest and voting rights of Black
women compared to other industries. We also need to delve deeper into why
Black women do not have significant influence in legal forms of genuine
enterprises like listed companies and private companies that are both of a Closed
Corporation (CC) and Pty Ltd nature. The main legal form used seems to be a
Trust. When we delve into the influence of the size of enterprise we find that it is
largely for small enterprises where Black women’s influence through voting
rights is much less than their economic interest. It will be worth investigating such
peculiarities.
• Black women management control - It seems Black women have progressed in
areas especially where Black people have immense influence viz. government and
state-owned enterprises. The private sector is lagging behind. It follows that when
the overall Black influence in the private sector increases the management control
of Black women in the private sector will also follow.
• Black women employment equity - Let alone the 10 year targets, one would have
expected to be closer to the 5 year target by now but we still have a much as 50%
of the target still to achieve in senior and middle management and about 33% of
the target to achieve in junior management.
Black women and BBBEE
BBBEE and women 5 Nov08 rev3
5
• Black women skills development - Results show that skills development is a
stronger area among all the elements of BBBEE where Black women are being
empowered.
• Black women enterprise development - Enterprise development is a key area
where the private sector can assist in the support of Black women entrepreneurs.
Private sector compliance is low in this area and we need to explore ways in
which enterprise development especially for Black women run enterprises can be
substantially increased. It is suggested that the dti’s requirements for local
content in the purchases of State Owned Enterprises (SOEs) be aligned with the
enterprise development initiatives of BBBEE. In this way large private sector
companies like Original Equipment Manufacturers (OEMs) can support second
and third tier enterprises that could potentially supply products and services to an
OEM.
• Black women preferential procurement - Preferential procurement is a key driver
of transformation in the economy and especially among supplier companies.
Compliance in using Black women run suppliers is very low here. We think that
this is a key strategic area for policymakers to consider in increasing the overall
progress of Black women within the implementation of BBBEE. Of course one
would have to delve into the possible constraints. For example, we need to ask if
sufficient women run enterprises exist in various sectors of the economy in the
first place before we challenge the weaknesses in sourcing from Black women run
suppliers.
• Black women socio-economic development - Compliance on the contribution
made on Black women socio-economic development is low. Yet this is a key
strategic area to bridge the gap between the second and first economies here in
South Africa. Also bear in mind that women make up the major portion of the
population here. Policymakers thus must look at ways to increase compliance here
since it forms the grassroots phase of economic development.
For some elements of BBBEE, research data on Black women does not exist. However
data exists on all Black people viz. Black men and women. In this instance we will use
Black women and BBBEE
BBBEE and women 5 Nov08 rev3
6
the economically active population ratios (see Table below) to estimate the participation
of Black women in such elements of BBBEE.
Economically active population ratios
EAP Male Female
Black 54% 46%
KPMG’s 2008 BEE survey3 has revealed a regression in progress on the BEE scorecard,
which has been mainly caused by the impact of the adjusted gender recognition principle.
This principle penalises organisations that have not addressed gender transformation in
management control, employment equity and the skills development elements of the BEE
scorecard.
The Table below gives a possible BEE scorecard for Black women compliance. However
in all areas except ownership and to a certain extent in management control there are no
specific targets for Black women set out in the BBBEE Codes. Thus we have made an
attempt here to pro rate the targets for women4.
3 2008 BEE Survey: Monitoring the change of guard , KPMG, 2008
4 Pro rating the targets for Black women, where such targets do not exist in the BBBEE scorecard, simply
included multiplying the targets for all Black people (men and women) by the economically active
population ratio of women or where data exists on Black women involvement e.g. The Seda document
called Review of Trends on Entrepreneurship and the Contribution of Small Enterprises to the Economy of
SA in 2000-2006, shows that the respective share of Black women business is 27.5% of all Black
businesses. Here we scaled down the enterprise development target by 46% (EAP of Black women relative
to all Black people) and the compliance by 27% arising from the proportion of women owned enterprises.
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This study is one of the few to analyse mergers in the tertiary education sector and to scrutinize the perception of employees about line management support. This study investigated employee perceptions of organisational climate during a... more
This study is one of the few to analyse mergers in the tertiary education sector and to scrutinize the perception of employees about line management support. This study investigated employee perceptions of organisational climate during a tough merger process between RAU, Vista and Technikon Witwatersrand. In particular, this study looked at the role of employee recognition, employee training, employee empowerment and organisational communication on employee perceptions of supervisor support. Of the 123 questionnaires distributed, 61 staff members from the Faculty of Business Management at Technikon Witwatersrand responded to them. The study found that visible recognition of employees by their line managers, especially of the employee’s workload has the most significant effect on their perception of line management support. Next to employee recognition, organisational communication was important to the way how employees perceived the support of their line management. The key theoretical contribution of this article lies in nudging the dialogue on the choice of suitable tertiary education line managers to consider weighting interpersonal skills as much as scholarship and teaching when selecting for management level positions.
Guide for graduate students
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A guide to the inferences made during scholarly research and tips on writing about one's research.