Thesis (MBA)--University of Stellenbosch, 2010. / In June 2009, there were 56 244 not-for-profit organisations registered with the Department of Social Development in South Africa. In addition, there are about 100 000 informal (non-registered) not-for-profit organisations in South Africa. The budget allocation of these organisations varies from R100 thousand to R20 million. The South African not-for-profit sector comprises of three types of organisations, namely the Section 21 companies, trusts and voluntary associations. The Non Profit Organisations Act, No. 71 of 1997, came into effect on 1 September 1998 to assist and guide the not-for-profit sector in improving its governance practices. Globally and in South Africa, we see a shift in the focus of governance in the not-for-profit sector. In 2005, a broad forum of South African organisations, donors and government representatives developed a code of good governance for not-for-profit organisations. The forum focused on the need of profit-motivated organisations to invest in community and social developments that exhibit good governance practices. Corporate governance in South Africa has its foundation in the first King Report of 1994. This report, King I, was the result of the work of a committee, formed to address a code of good practices for corporate governance. Its purpose was to promote the highest standard of governance in South Africa, and it is not enforceable by law. In 2009, the third version of the King Report, King III, was released to enhance the current set of governance practices. In the South African context, the King Report is the key piece of best practices that drives governance in the for-profit sector. The not-for-profit sector in South Africa is transforming and adapting to the changing external environment. There is a requirement to have good governance practices in the sector. The size and nature of the organisation would determine the areas of governance that the organisation would apply. The “apply or explain” principles of King III provide each not-for-profit organisation with the flexibility to apply good governance practices.

Thesis (MBA)--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The political changes in South Africa since 1994 and globalisation have brought about a dramatic increase in competition for South African companies. To ensure long-term survival and success, companies have to focus their strategies on continuous improvement and the ability to adapt to continuous change. Lean manufacturing principles were derived from the Toyota Production System (TPS) which was created by Taiichi Ohna, who is widely credited to be the father of Lean manufacturing principles. Lean principles originated in the automotive industry and transformed an industry that previously focused all its improvement efforts on the theory of mass production. Lean principles can be summarised as continuous improvement through focus on the elimination of waste from processes. Lean principles specify that organisations: • Change from using their view to using the view of the customer when evaluating value-creating activities; • Change production plans that focus on mass production to production plans that produce only what customers want now in flow production with small production batches; • Reduce lead times; • Improve quality; and • Achieve the above-mentioned by eliminating waste in all processes. Lean principles are based on the assumption that once waste is removed, the process improves and results in reduced lead time, improved quality, reduced costs and improved customer service. The aim of this research study was to test Lean principles by implementing applicable parts of it in the engine rebuilding section of MultiMech, a division of Golden Arrow Bus Services. The changes that formed part of the implementation included: • Reduced work in progress through improved production planning; • Improved performance of inbound processes through improved communication based on improved production planning; and • Improved productivity due to improved inbound processes and improved performance measuring. The results from the pilot implementation of Lean principles at the engine rebuilding section support the benefits documented in the theory. The major results were: • An increase in the number of engines built for the months June to September, from 54 in 2007 to 88 in 2008 which represents a 63 per cent improvement in productivity; • A decrease in the number of works orders from 58 to 21, which represents a decrease of 63 per cent in work in progress; and • A reduction in stores' lead time from 3.5 days to 1.4 days, which represents an improvement of 60 per cent. The results from the pilot implementation is only an indication of the total potential that will be realised when Lean principles are implanted throughout MultiMech. / AFRIKAANSE OPSOMMING: Die politieke veranderinge in Suid-Afrika sedert 1994 en globalisering het 'n dramatiese verhoging in mededinging vir Suid-Afrikaanse maatskappye tot gevolg gehad. Ten einde langtermyn oorlewing en sukses te verseker, moet maatskappye hul strategiee fokus op aanhoudende verbetering en die vermoe om by konstante verandering aan te pas. 'Spilvrye' vervaardigingsbeginsels ('Lean manufacturing principles') is afgelei van die Toyota produksiestelsel ('Toyota production system') (TPS), wat ontwikkel is deur Taiichi Ohno, wat algemeen beskou word as die vader van spilvrye vervaardigingsbeginsels. Hierdie beginsels het ontstaan in die motorvervaardigingsindustrie en 'n industrie transformeer wat voorheen al sy verbeteringspogings gefokus het op die teorie van massaproduksie. Spilvrye beginsels kan opgesom word as konstante verbetering deur te fokus op die eliminasie van verspilling uit prosesse. Spilvrye beginsels bepaal dat organisasies: • Nie meer vanuit hulle eie perspektief nie, maar vanuit die klient se perspektief waardeskeppende aktiwiteite beoordeel; • Produksieplanne verander wat fokus op massaproduksie tot produksieplanne wat slegs produseer wat kliente nou wil he in 'n vloeiproduksieproses met klein produksievolumes; • Wagperiodes verminder; • Kwaliteit verbeter; en • Bogenoemde bereik deur verspilling in alle prosesse te elimineer. Spilvrye beginsels is gebaseer op die aanname dat sodra verspilling verwyder is, die proses verbeter en verkorte wagperiodes volg, kwaliteit verbeter, kostes verminder en klientediens verbeter. Die doel van hierdie navorsingstudie was om Spilvrye beginsels te toets deur toepaslike gedeeltes daarvan te implementeer in die enjinbou afdeling van MultiMech, 'n divisie van Golden Arrow busdienste. Die veranderinge wat deel uitgemaak het van die implementering sluit in: • Verminderde werk-in-proses deur verbeterde produksiebeplanning; • Verbeterde prestasie van inkomende prosesse deur verbeterde kommunikasie gebaseer op verbeterde produksiebeplanning; en • Verbeterde produktiwiteit as gevolg van verbeterde inkomende prosesse en verbeterde prestasiemeting. Die resultate van die loodsimplemetering van Spilvrye beginsels by die enjinbou afdeling ondersteun die voordele wat in die teorie gedokumenteer is. Die vernaamste resultate sluit in: • 'n Toename in die aantal enjins gebou vir die maande Junie tot September, van 54 in 2007 tot 88 in 2008 wat 'n 63 persent verbetering in produktiwiteit verteenwoordig; • 'n Afname in die aantal werksopdragte vanaf 58 tot 21, wat 'n afname van 63 persent in werk-in-proses verteenwoordig; en • 'n Afname in store se wagperiode van 3.5 dae tot 1.4 dae, wat 'n verbetering van 60 persent verteenwoordig. Die resultate van die loodsimplementering van Spilvrye beginsels is 'n teken van die totale potensiaal wat gerealiseer sal word met die implementering in ander departemente van MultiMech.

Thesis (MBA)--University of Stellenbosch, 2010. / The purpose of this study was to determine the relationship between corporate governance and the profitability of banks in Nigeria. This has been done in line with previous studies in other parts of the world where it was discovered that the corporate governance culture of a firm does have an effect on its profitability. The corporate governance variable employed in this study was that of ownership. Four types of ownership were used as the independent variables, namely board ownership, institutional ownership, foreign ownership and government ownership. Whilst the dependent variables employed were return on assets (ROA) and non performing loans ratio (NPL). Information on banks’ return on assets and non performing loans was generated from year end financial statements and yearly bank reviews from a Nigerian based research firm called Agusto and Company. Also the banks’ ownership variables information was also pooled from financial reports, the Agusto report on banking industry as well as bank websites. A descriptive statistic data was generated to review the trend of banks’ return on assets and non-performing loan performance indicators, whilst a Pearson correlation table was generated to review the correlation between the ownership variable and the performance of banks. The results generated were found to be similar to what has previously been done. This study makes a significant contribution to research by exposing the importance of corporate governance, a concept which has been neglected in the Nigerian corporate world. Finally it provides further justification to do further research in this area in the Nigerian banking and corporate environment.

Thesis (MBA)--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The purpose of this study was to determine the impact possible revisions to the international accounting standard (IAS) for intangible assets, under international financial reporting standards (IFRS), could have on the perception of value of information technology. Furthermore, the study discusses the fact that value of IT is still a debate and asks the question why. The use of the term information technology capability in IT research is used in many different contexts. The study also tested a framework that could possibly be used to view IT capability as, and used this framework to ascertain how accounting treatment of IT capability is happening in practice. The study is exploratory in nature since the impact of the possible revisions on IT capability is a current event. The revisions are in a second round of discussion and as such this study could provide insight to the discussion regarding the possible influence on IT capability. The revisions primarily focus on the recognition and measurement of internally generated intangible assets. It is currently being proposed that internally generated intangible assets be recognised as it would during a business combination at any point and also that fair value be considered as an alternative to the cost basis during initial recognition. While those are the most significant revisions, the discussion paper makes minor proposals regarding the identification of intangible assets and makes no suggestions regarding disclosure. A number of CIO’s and CFO’s or their direct delegates were interviewed to determine from a practitioner perspective what the impact of the revisions could be from both a financial perspective and IT management perspective. The participants were engaged through a semi-structured interview and the collective responses analysed for common themes. The study found that while the debate around IT value still exists, from the participant’s perspective, it centres on the fact that in the absence of appropriate performance measurement of businesses, it is difficult at best to reflect how IT contributes value to the organisation. The participants do not see the currently proposed revisions as being able to improve the perception of value of IT. This is primarily due to the fact that the financial reports are not for consumption of internal business stakeholders to whom CIO’s need to communicate the value contribution. Secondly, the cost focus of the financial reports is acknowledged and as well as the fact that increasing the uncertainty of values in financial reports due to subjective valuation of IT capability, will detract from the integrity of the financial accounting and reporting. Lastly, participants also recognised that it would be a significant revision if internally generated assets are recognised in the same way as during business combinations and that the use of fair value during initial recognition is allowed. As such the participants felt that it would be a long time before the revisions move onto the next stage. This pragmatic response indicated that the focus should rather be on ensuring business performance is measured and IT capability measured through business measures. The study is limited by focusing on organisations that do not create IT capability for resale. Also, the focus is on internally generated IT capability, and excludes the process of acquiring IT capability through merger and acquisition activity. Lastly, the focus has been limited to the impact of the revision on IT value perception. Practically, given the fact that the revisions are not seen to create an opportunity for IT value to be reported, practitioners are advised to focus on using benchmarking to report IT value for the business-as-usual IT capability, in business terms. Furthermore, in terms of ensuring the value of investment in IT capability is articulated, the upfront business case and investment decision process must articulate the business benefits clearly and thereafter ensure benefits tracking is done to measure the performance and value of the constituent parts that deliver the benefits can be measured. This study has value since these particular concepts have not been analysed in this way before. Previous studies have focused on certain elements of IT capability, or organisations that create IT capability for resale, not internal use, amongst others. The originality stems from linking accounting treatment to the definition of IT capability and investigating the impact it has on how the value of IT is perceived. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie was om vas te stel wat die impak van moontlike hersienings van die internasionale boekhoudingstandaard (IAS) vir ontasbare bates, volgens internasionale finansiële verslagdoeningstandaarde (IFRS), sal wees op die persepsie van inligtingstegnologie (IT) se waarde. Voorts bespreek die studie die feit dat die waarde van IT steeds 'n voortgaande debat is en vra waarom dit die geval is. Die term inligtingstegnologievermoë in IT-navorsing word in verskillende kontekste gebruik. Die studie het ook 'n raamwerk getoets wat moontlik gebruik kan word om IT-vermoë holisties te bekyk. Die studie is verkennend van aard aangesien die impak van moontlike hersienings op IT-vermoë 'n gebeurtenis is wat tans plaasvind. Die hersienings is tans in die tweede ronde van bespreking en die studie sou insig kon verskaf oor die moontlike invloed van die bespreking op IT-vermoë. Die hersienings fokus primêr op die erkenning en meting van intern gegenereerde ontasbare bates. Tans word voorgestel dat intern gegenereerde ontasbare bates erken moet word soos dit in 'n besigheidskombinasie op enige punt erken sou word, en ook dat billike waarde oorweeg moet word as 'n alternatief tot die kostebasis gedurende aanvanklike of inisiële erkenning. Terwyl hierdie die mees belangrike hersienings is, sluit die besprekingsdokument kleiner voorstelle in oor die identifisering van ontasbare bates, maar verskaf geen voorstelle oor die bekendmaking van ontasbare bates nie. 'n Aantal hoof inligtingsbeamptes en hoof finansiële beamptes of hulle direkte gedelegeerdes, is ondervra om vas te stel, vanuit 'n praktisyn se oogpunt, wat die impak van die hersienings sou kon wees – gesien uit beide 'n finansiële en 'n IT-bestuursperspektief. Die deelnemers is betrek deur 'n semi-gestruktureerde onderhoud en die kollektiewe response is geanaliseer vir gemeenskaplike temas. Die studie het bevind dat, hoewel die debat rondom ITvermoë steeds bestaan, vanuit die deelnemers se perspektief, die debat sentreer rondom die feit dat in die afwesigheid van toepaslike prestasiemeting van besighede, dit op sy beste moeilik is om te besin oor hoe IT waarde bydra tot die organisasie. Die deelnemers sien nie in dat die voorgestelde hersienings by magte sal wees om die persepsie oor die waarde van IT te verbeter nie. Dit is primêr as gevolg van die feit dat die finansiële verslae nie beskikbaar is vir interne besigheidsbelanghebbers nie aan wie hoof inligtingsbeamptes die waardebydrae moet kommunikeer. Tweedens word die kostefokus van finansiële verslae erken, asook die feit dat om die onsekerheid van waardes in finansiële verslae te verhoog weens die subjektiewe waardasie van IT-vermoë, die integriteit van die finansiële boekhouding en verslagdoening sal benadeel. Laastens het deelnemers ook erken dat dit 'n belangrike hersiening sal wees indien intern gegeneerde bates op dieselfde manier erken word as gedurende besigheidskombinasies en dat die gebruik van billike waarde gedurende aanvanklike erkenning toegelaat word. As sodanig was die deelnemers van mening dat dit nog lang sal duur voordat die hersienings na die volgende fase sal beweeg.

Thesis (MBA)--University of Stellenbosch, 2010. / AFRIKAANSE OPSOMMING: Waarde- en groei-beleggingstrategieë dateer terug na Fama en French (1992) en Lakonishok, Shleifer en Vishny (1994). Bogenoemde studies is gebaseer op vroeë navorsing wat die fokus verskuif het om sodoende waardasieverhoudinge en maatskappygrootte te gebruik as toonaangewende verklarende maatstawwe vir aandele-opbrengste. Toenemende studies in hierdie beleggingsveld het die akademiese en beleggingsgemeenskap oortuig dat ’n waardegebaseerde beleggingstrategie, gemiddeld, ’n groeigebaseerde beleggingstrategie oortref. Waarde- en groei-eienskappe word algemeen aanvaar en deur fondsbestuurders en beleggers as onderskeidende beleggingstrategieë aangewend. Hierdie eiesoortige beleggingstrategieë is op die Suid-Afrikaanse mark vir die periode 1990 tot 2009 toegepas. Die beduidende veranderinge binne die ekonomiese klimaat en aandelemarkte was die oorhoofse rede vir die insluiting van die ekonomiese siklusse in die navorsing, spesifiek die opswaai- en afswaai-fases van die ekonomie. Die Sharpe-, Treynor- en Inligting–prestasiemaatstawwe vir waarde- en groei-portefeuljes is in hierdie studie vergelyk en geanaliseer. Normaalweg word prestasie-beoordeling nie begin met ’n gedetailleerde analise van die opbrengsverdelings om te bepaal watter prestasie-maatstaf meer voortreflik is nie. Die opbrengsdensiteit vir alle portefeuljes is bepaal om sodoende die opbrengsverspreidings en risikooorwegings beter te verstaan binne die onderskeie ekonomiese siklusse. Die bevindinge binne die Suid-Afrikaanse konteks was wel ooreenstemmend met voorafgaande navorsing dat waardegebaseerde investering groeigebaseerde investering oortref vir aandele met hoër waardasieverhoudinge teenoor aandele met laer waardasieverhoudinge. Die gemiddelde maandelikse prestasie van waarde-portefeuljes het ook groei-portefeuljes oortref in die ekonomiese opswaai-siklusse, wat ooreenstemmend is met soortgelyke navorsing wat in ander markte gedoen is. In die ekonomiese afswaai-siklus het groei-portefeuljes waarde-portefeuljes oortref, ooreenstemmend met die van die Amerikaanse mark. Die navorsing dui daarop dat waardegebaseerde investering voortreflik is oor die volle steekproefperiode, wat beteken dat beleggers wat waarde-beleggingstrategieë volg hoër opbrengste kan verwag in alle ekonomiese siklusse, maar die voordele sal groter wees in tye van ’n ekonomiese opswaai. Die wisselvalligheid van opbrengste binne die twee ekonomiese siklusse is sigbaar en beklemtoon die noodsaaklikheid om die ekonomiese siklus in beleggingstrategieë en -besluite in te sluit. Die ekonomiese siklus verbreed die dimensie tot die evaluasie van waardegebaseerde beleggingstrategie en dit is noodsaaklik dat dit ’n geïntegreerde deel vorm van die evaluasieproses. / ENGLISH ABSTRACT: Value and growth investment strategies can be traced back to Fama and French (1992) and Lakonishok, Shleifer and Vishny (1994). The studies built on earlier work done and lead to attention being shifted to valuation ratios and company size as leading explanatory indicators for stock returns. Based on the accumulated evidence from studies, the academic and investment community came to agree that value investment strategies, on average, outperform growth investment strategies. Value and growth, are widely recognised and used by money managers and investors as distinctive investment strategies. These style-specific investment strategies were tested on the South African market for the period 1990 to 2009. The significant changes within the economic conditions and securities markets motivated the research to include the business cycle – specifically, contraction and expansion of the economy – within the scope of this study. The Sharpe, Treynor and Information performance ratios, that were calculated for compiled value and growth portfolios, were compared and analysed. The performance evaluation is not normally initiated with a detailed analysis of the return distribution in order to determine which performance measure is superior. The return densities for all portfolios were calculated in order to gain a better understanding of return distributions and risk considerations within the different business cycles. The results indicated that, within the South African context, value investing did outperform growth investing as indicated by previous research that stocks with high valuation ratios tend to outperform stocks with low valuation ratios. The mean monthly performance of value portfolios also outperformed growth portfolios in the period of economic upswing, which is a similar result as that of other markets where this kind of research has been conducted. In the economic downturn period growth investing seems to be superior to value investing similar to that of the US market. The study indicates that the superior performance of value investing is robust for the whole sample period, meaning that investors will be better off investing in stocks with high valuation ratios for all economic conditions, but the benefits of value investing would be greater during periods of economic upswing. The volatility of returns within the two economic conditions is quite evident and highlights the importance of incorporating business cycles into investment strategies and decisions. The business cycle adds another dimension to value investing strategy evaluation and should be incorporated in the evaluation process.

Thesis (MBA)--University of Stellenbosch, 2011. / Research has shown that a large percentage of projects do not deliver expected outcomes on schedule and within budget. Further many projects are cancelled before completion. One of the reasons provided is that project managers usually only focus on three technical elements of a project; namely performance, cost and time. Literature on this matter indicates that project managers tend to neglect an important aspect of the process namely the people dynamics. The manner in which people are treated becomes a critical success factor in the successful execution of projects. Further reasons for project failure include bad team selections, poor communication and poor leadership. These hindrances need to be addressed in order for the project to be a successful. Guidelines to address these issues are available; however, research suggests that it is not commonly implemented. The aim of this research is to investigate project teams in practice. Questionnaires were sent to project managers enquiring whether the suggested guidelines are applied and whether any other behavioural problems, which are not identified in the literature, exist. After compiling and analyzing the data from the returned questionnaires, solutions were investigated to address these problems. Finally, feedback and recommendations were provided to the respective project managers. 56 Pages.

Thesis (MBA)--University of Stellenbosch, 2010. / The introduction of King III has resulted in many changes to corporate governance practices. The changes inevitably have implications and challenges for organisations. If the changes introduced by King III as well as the implications and challenges are not well understood, implementing King III could be a very challenging exercise. This research report outlines the key differences between King III and King II. The research report also highlights the major implications and challenges of implementing the King III principles. In addition, those aspects of King III that are covered in the new Companies Act have also been outlined. In analysing the changes between King II and King III, and the implications and challenges of King III‟s principles and recommendations, the author followed the layout of the chapters in King III, namely ethical leadership and corporate citizenship, boards and directors, audit committees, the governance of risk, the governance of information technology, compliance with laws, codes, rules and standards, internal audit, governing stakeholder relationships and integrated reporting. The differences between King III and King II were analysed through a study and comparison of the King III and King II Reports. The implications and challenges were analysed through reading literature on King III and corporate governance in general. Aspects of King III covered in the Companies Act were analysed through a study of King III and the Companies Act. The author analysed the differences, implications and challenges of both the principles and the recommended practice in the King Reports. No distinction was made between principles and recommended practices. The main changes introduced by King III relate to the composition and role of the board, the board committees and the new topic on IT governance and the need to publish an integrated report. Though discussed in different chapters, King III has emphasised the link and interplay between ethics, corporate social responsibility, governing stakeholder relationships and integrated reporting. In addition to the above, the most contentious change is probably the applicability of King III to all entities regardless of form of incorporation. King III has also attempted to bring about a physiological change in the way companies perceive King III by changing the “comply or explain” concept to the “apply or explain concept”. The direct implications and challenges brought about by King III relate to the time, efforts and costs needed to implement the various King III principles and recommendations. King III could also result in an increase in the size or diversity of the board, and companies are likely to find it challenging to get qualified people to fill directorship posts. Integrated reporting is going to change the way companies view corporate social responsibility and the way they report non-financial information to stakeholders. Despite the challenges, there is no doubt that King III goes a long way to ensure that South Africa‟s corporate governance system is at par with the rest of the world.

Thesis (MBA)--University of Stellenbosch, 2011. / The study was undertaken to determine whether companies listed on the Johannesburg Stock Exchange disclose shareholder spread in line with the available statutes such as the JSE Listing Requirements. Further, the study explored the closing balances for group, company, trusts, subsidiaries, and treasuries of all the 50 companies studied to ascertain whether there were differences with the ex WDH share program. Various sources to answering the question were used including the Internet, McGregor BFA, Annual Reports of the companies, and material from University of Stellenbosch Business School (USB). There were varying findings with regards to the study as it was found that some companies had differences in group, company, trusts, subsidiaries, and treasuries. Most of the differences were due to company mistakes, non-consolidation of trusts, and use of different methods. It was found that certain companies tend to omit certain information in disclosing the shareholder spread and this has resulted in many companies with differences in their closing balances for the company, group, trusts, subsidiaries, and treasuries. In addition, it was also discovered that certain companies disclosed major shareholders of less than the prescribed five percent which proved to be very helpful in this study.

Thesis (MBA)--University of Stellenbosch, 2011. / The global business environment has evolved since 1990. This change has brought companies new realities in the form of new business opportunities for growth and, at the same time has exposed them to new competitors. This has caused companies to invest many resources in devising new effective strategies to take advantage of the new opportunities, whilst protecting their market positions, which are crucial to their continued economic existence. Effective implementation of strategy has become the goal of many organisations. However, in translating their grand plans into action, unacceptably high rates of failure have been reported among many companies. In most organisations, this responsibility has been left to lower levels of management. The purpose of this research was to establish what factors affected the implementation of strategy and more specifically, what role lower levels of management play in the implementation process. A qualitative study was undertaken where in-depth interviews were held with a senior executive and middle managers of a global company. Eight propositions were posited after a detailed review of literature on strategy implementation and middle managers. These were tested in relation to the results of the research and conclusions were then drawn. The data was analysed using content analysis and frequency tables. The research findings showed that middle managers play a critical role in facilitating the effective implementation of strategy. It also showed that the execution process is fraught with numerous challenges, some of which are lack of sufficient budgets, high staff turnover affecting continuity and the destructive nature of internal competition.

Thesis (MBA)--University of Stellenbosch, 2011. / The objective of this research is to characterise the factors influencing Open Source Software (OSS) adoption decisions in South African organisations. OSS is used extensively throughout the world, but there is a large amount of fear, uncertainty and doubt surrounding decisions to adopt OSS. The research improved this situation by determining the adoption factors that are relevant to South African organisations. OSS adoption is influenced by individual and organisational technology adoption factors. An extensive literature revealed the technology adoption factors relevant to OSS adoption. Adoption factors identified in literature were localised to the South African context, taking into account both public and private sector organisations. The research has found that OSS adoption factors identified in literature are relevant in a South African context. Factors investigated include access to source code, adoption costs, software freedom and control, technological factors, support factors, organisational factors and environmental factors. An important factor in OSS adoption decisions is the choice between vendor and community based OSS and the skills and resource requirements. Choosing community based software requires additional training, skills and resources. Organisations should take into account the effect of OSS development methodology on adoption decision factors. Important adoption decision factors include software compatibility (open standards), compatibility different hardware platforms (cross platform capabilities) and software and hardware vendor independence. The research concludes with recommendations approaching OSS adoption decisions when considering the choice between OSS and proprietary software.