This study investigated the expansion strategies of hotel companies that want to expand away from their local market. Due to the growing importance of services in economic development, there is an impressive body of knowledge on the process of internationalisation and service industries. Due to the major changes impacting upon the industry due to the effects of technology and globalisation, it would be useful to establish the important key factors and processes involved during internationalisation. Expanding cross border for a hotel group signifies a number of challenges that must be focused on at the same time. Markets need to be identified, political stability needs to be scanned and cultural differences must be taken into consideration. Logistics and supply chain have to be developed together with operational issues from financial reporting, marketing and human resources. Organisational structures must be adapted to take into account the new levels of responsibility. An in-depth review of the literature regarding internationalisation was conducted, which evidenced that the most useful model for answering the questions was the eclectic paradigm as developed by John Dunning (1993). The paradigm has been used in many manufacturing and service sector studies, including that of the hotel sector (Contractor and Kundu, 1994). A questionnaire was compiled and interviews were set up with the directors and executives tasked with the respective companies’ expansion programmes. Due mainly to the effects of new technology and globalisation on the hotel industry, there have been many changes in the last decade, including increasing consolidation and concentration and an increasing importance upon branding and financial performance. It was apparent from the research that the time taken to internationalise by hotel chains has reduced significantly in the last decade, especially if one looks at the performance of hotel companies such as Accor Hotels. iii Only two of the three companies studied in this treatise had undertaken expansion into Africa with the third company ready for entering soon. Nonequity involvement in general was the most favoured form of involvement with majority of their expansions based on management contracts, joint partnership or franchises. The role of the functional departments, the importance of a global outlook and the necessary structural changes during international expansion was also explored. In order to answer the various research propositions that are posed, the researcher chose to base this research on a phenomenological approach through case study analysis.

The study focused on funding availability for small and medium enterprises for women entrepreneurs. In order to do a situational analysis the study was conducted in the Nelson Mandela Metro looking at the operations of Community Investment Fund (CIF) as a case study. The CIF was a partnership between a local non-governmental organization (NGO) operating in the Northern Areas of Port Elizabeth and one of the four big banks in the Republic of South Africa. The study investigated the challenges that women as entrepreneurs face in particular. The qualitative approach was used as methodology and the sampling of five (5) of the seventeen (17) women beneficiaries and their businesses were conducted. Given the fact that the Republic of South Africa has a high unemployment rate and the government‟s strategy of providing support for small, medium and micro-enterprises (SMMEs), the study provided an opportunity to look at the realities that people with ideas are faced when starting what seemed to be a daunting task of starting a business. The research findings provides conclusive evidence that starting a business in the current economic climate is a difficult task and it is more challenging if you are a woman with no financial securities. It is therefore of imperative importance that an approach to funding and supporting women entrepreneurs be implemented to create much needed jobs in the country and address the gap between the first and second economy.

The humble beginnings of business incubators date back to the 1970s in the USA and United Kingdom, where abandoned industrial buildings were converted to rent out to small businesses. South Africa (SA) was first introduced to business incubation in the 1980s when the Small Business Development Corporation (SBDC) established a number of business ‘hives’ and provided business space to entrepreneurs to operate their businesses. In their most basic form, business incubators provide a safe and nurturing environment for entrepreneurs to establish their small businesses. While in incubation, the Small and Medium Enterprises (SMEs) are supported with a number of services which assist their growth and development until they are able to exit the incubator as sustainable and viable businesses. Global incubator models have matured significantly, and now include assisting with business idea generation, accelerating business start-ups and commercialisation processes, and identifying high-growth orientated SMEs to assist them with gaining market access. The establishment of business incubators was a government-driven initiative, and more than 33 SME incubators exist in SA. Most of the incubators are government-funded, and have focused on the establishment and growth of SMEs to act as a catalyst to promote economic development and alleviate socio-economic challenges such as unemployment and poverty. Despite these noble objectives, incubation in SA has not been fully utilised, and a high SME failure rate still prevails in the country. One of the reasons for SME failure may be ascribed to the lack of an enabling SME incubation environment in SA. When compared to other developing countries such as Brazil with as many as 400 incubators, it is clear that the SA incubation industry still needs further development. The purpose of this study therefore was to ascertain the best practices of global business incubators in both developed and developing countries, and how SA incubators could learn from these best practices to create a more conducive and enabling SME incubation environment. Background literature on business incubation with a specific focus on best practices in world incubators in both developed and developing countries, was reviewed. Some of the literature reviewed included Aernoudt (2004), Buys and Mbewana (2007) and Chandra (2009). From the literature review, four main best practice areas were identified, namely strategic focus, sources of funding, incubator services, and the role of government. The study followed a qualitative approach, and an interview schedule was developed to seek the perceptions of incubator managers on how the four identified best practices can be utilised to create an enabling SA incubation environment. A survey was conducted by interviewing 14 incubator managers (twelve government and two private) in SA. Data was collected over a six-month period, using face-to-face and telephonic interviews. Data was analysed using the content analysis, constant comparison, grounded theory and case study methods. The biographical profiles of the incubator managers and incubators were presented in case studies. An initial analysis was made to identify themes and sub themes within the four best practices explored, using the constant comparison method. Thereafter a provincial comparative analysis was made, as well as a comparison of government funded versus privately funded incubators. The findings suggested that there is a relatively high turnover in incubator management, and that they often do not have incubator management experience. A provincial comparison of SA incubators revealed that their strategic focuses are greatly influenced by the industry prevailing in the various provinces. All SA incubators provide pre- and post incubation services, but few are utilising virtual incubation. Most SA incubators are government-funded, and some use a hybrid funding model. It was evident that most SA incubators are aware of government policies and programmes available to assist them on local, provincial and national levels. A comparison of the best practices of two developing countries and three developed countries, as well as suggestions made by SA incubator managers indicated that SA has indeed followed best practices from both developing and developed countries, but there are areas of non-alignment which provide scope for improvement, to create a more conducive and enabling incubation environment. This study recommends that incubators should have an entrepreneurial focus, and reposition and align their strategic focus with government policies and instruments. SA incubators must pursue opportunities for virtual incubation as well as linkages with academic institutions, in order to offer value-added services such as research, development and commercialisation of the product ideas. Incubators in SA must pursue a hybrid funding model with a combination of government and private funding, and generate some or their own income. With regard to the role of government, it is recommended that the roll-out of more industry-specific incubators be privatised, and that an overseeing body for incubation be established.

Given the importance of family businesses with regard to the economic growth of South Africa, and the fact that their high failure rates have a negative influence on the country’s economy, this study focused on ineffective leadership among family businesses and the influence thereof on business performance. People’s perceptions of leadership are changing, and an ethical, people-centred, character-orientated approach to leadership may be what businesses require. In addition, innovation and employee well-being are being given high priority, and leadership that is ethical and caring is of great importance. The primary objective of this study was twofold, firstly to establish the levels of Ethical, Authentic, Participative and Servant leadership displayed by family business owners and employees in the Eastern Cape, and secondly to establish the influence on the Perceived business performance of the family business of displaying these styles. Poor leadership was identified as a major challenge that family businesses are faced with, and a challenge that contributes to their high failure rate. The literature dealt with the nature and importance of leadership, and both traditional and contemporary leadership styles were elaborated on. The traditional leadership styles identified were autocratic, laissez-faire, transactional, transformational and participative leadership, while the contemporary styles identified and discussed were ethical, authentic and servant leadership. From the literature it was evident that a more ethical, people-centred, character-orientated approach to leadership may be what businesses require to be successful today. The literature highlighted Ethical, Authentic, Participative, and Servant leadership as the more character-orientated leadership styles that positively influence the performance of any business, including family businesses. These leadership styles formed the main focus of this study. In this study a quantitative research design was adopted and a descriptive study of a cross-sectional nature was undertaken. A convenience sampling technique was used owing to the inaccessibility of a family business database. The sample size in this study consisted of 250 small family businesses. A survey was undertaken and a structured, self-administered questionnaire was used to gather the necessary data. The measuring instrument was developed by sourcing items from several existing studies. Family business owners and employees working in the family business were approached by fieldworkers and asked to participate in the study. In total, 266 questionnaires were usable, 133 from family business owners and 133 from family business employees. An effective response rate of 53.20 percent was achieved. The validity and reliability of the measuring instrument were confirmed by means of an exploratory factor analysis (EFA) and by the calculation of Cronbach’s alpha coefficients. Descriptive statistics were calculated in order to summarise the sample data, while t-tests were used to determine whether the differences in mean scores returned by the family business owner and employee sample groups for the leadership styles under investigation, were significantly different from each other. Pearson’s product moment correlations were used to assess the associations between the variables under investigation. A multiple regression analysis (MRA) was used to assess the relationships between the independent variables and the dependent variable Perceived business performance. Lastly, the relationships between selected demographic variables and leadership styles displayed by family business owners were tested by means of an Analysis of Variance (ANOVA). Five factors were extracted from the EFA, four of which were considered for further analysis. The four usable factors extracted could be identified as the theoretical dimensions of Ethical leadership, Participative leadership, Perceived business performance and Servant leadership. The items measuring Ethical and Authentic leadership did not load as expected, as several items measuring the two factors loaded onto one factor. The Cronbach’s alpha coefficients returned for the four usable factors extracted from the EFA were greater than 0.7, and thus the scales measuring the independent and dependent variables provided satisfactory evidence of validity and reliability. The findings of this study show that for both the family business owner and employee sample group, Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The great majority of the family business owners therefore agreed that they adopted these leadership styles. In addition the majority of family business employees agreed that the family business owner, for whom they worked, adopted these leadership styles. T-tests were conducted to assess whether the differences in mean scores returned by the two sample groups were statistically significant. Significant differences were found between the means scores returned by both sample groups with regard to the level of Ethical and Servant leadership displayed by the family business owner. No significant difference was found between the mean scores returned by both sample groups for Participative leadership. This finding was not surprising, given that socially desirable bias occurs when individuals describe or rate themselves in a manner that is untruthful or in a way that they feel may be viewed favourably by others. From the MRA, no relationships were reported between the independent variables (Ethical, Participative and Servant leadership) and the dependent variable Perceived business performance. The results of ANOVA revealed that there was no relationship between the Gender, Age, Ethnicity, Tenure, Generation, Number of employees and the Nature of the family business and the Ethical, Participative, and Servant leadership styles. However, the results show that family business owners with a tertiary qualification are more likely to adopt a Participative leadership style. Despite no significant relationship found in this study, it is well supported in the literature that the leadership styles investigated have a positive influence on business performance. Family business owners should take cognisance of this, and measures should be taken to ensure that the leadership style implemented in their businesses is ethical, participative and servant-orientated. This study has attempted to enlarge the body of knowledge available on leadership, especially concerning the servant, ethical, people-centred and character-orientated leadership styles. The results of the study differ somewhat from existing literature, and therefore add to the body of knowledge on leadership. Furthermore, this study has addressed a gap in the current literature regarding the influence of leadership on business performance among family businesses in a developing economy such as South Africa.

Family business literature reveals that the majority of family businesses do not make it to the second generation, and quite a few are fortunate to be passed onto the third generation. Succession planning is the critical issue that enhances continuity of the family business. Relational influences indicate that the balancing of family systems and business systems is more likely to encourage high quality succession. The development of effective practical governance systems can help the family business achieve its strategy. External influences indicate that owner role adjustment, defined as the predecessor’s “letting go” in the firm, as well as the development and mentoring of the successor, shape the effectiveness of succession in the family business.

This treatise investigates how information technology (I.T.) enables growth in a family business (the firm) in Port Elizabeth. The firm operates in the mobile telecommunications sector. The objective of the study is to gain a deeper understanding on why family businesses adopt information technology in their firm by means of a case study. The firm found its technology (or lack thereof) completely out-dated compared to the competition and customer demands. The future of the firm was in jeopardy. The study starts with a literature review of the following three topics which form part of the scope of the research: 1. Family businesses; 2. Influence of I.T. as a driver of growth in business; and 3. An introduction into the mobile telecommunications industry. Data are collected through structured interviews with family members involved in the business. The data are consequently linked to the theory and provides insight as to what the drivers are for I.T. adoption and the required core competencies or critical success factors of the firm. Although it might seem trivial for a small family business to adopt information technology, the research concludes that I.T. is critical for continuous growth and survival of this family business. Conversely due to a lack of internal skills the firm is heavily reliant upon outside consultants for advice, implementation and support. Recommendations which are of particular interest to family businesses in a similar environment are: • Embrace technology early, utilise I.T. solutions to grow and enhance current competitive advantage, do not see I.T. as a competitive advantage alone (Pavlou & Sawy, 2006); • If information expertise is not present within the company it is advisable to invest in that expertise through recruitment, training, partnership, or outsourcing; • Ensure software meets specification / is effective enough – this can be achieved by frequent releases cycles with small changes instead of infrequent release cycles with many big changes; • Engage the consultants in a partnership by i.e. providing a profit share – this will ensure that the consultants are committed to the cause and will also ensure that their involvement is also in their own best interest; • Choose local consultants who are easily accessible – build relationships and focus on trust; • Create lock-in (Amit & Zott, 2001), provide tools free-ofcharge for customers, this will make switching to competitor more difficult; • Automate as much as possible, enable standard work practices, routinize; • Be ready to adjust the organisational structure or relinquish control (Bruquea & Moyanob, 2007)

Family businesses are considered to be among the most important contributors to wealth and employment in virtually the world. This qualitative study looked at farming family businesses. Farming family businesses present certain unique features that discern them from other family businesses and are worthy of investigation. Two domains are identified in the literature and research about conflict in family business: The business and the family. The researcher postulated that the domain of the family is too broadly drawn and that farming family systems in the Sibling Partnership Stage, with their unique way of life and functioning, consist of several sub-systems which impact on the business. Conflict develops in and between the sub-systems. This study looked at conflict within farming family businesses from a systemic viewpoint, particularly focusing on the process aspects, the interactional dynamics in and between the sub-systems. Four active types of subsystems were identified in the case studies: Couples subsystems, parent child subsystems, sibling subsystems, in-law subsystems or subsystems of which at least one member is an in-law. The research aim was to explore the circular patterns in the two cases as systems and to uncover the function of the conflict in these systems. In both cases, circular conflict patterns came to the fore with the subsystems part of the feedback loops. The conflict escalation happened between the subsystems as elements and the conflict paths were circular, not linear. Sub-themes around family scripts, communication and perceptions about fairness were also uncovered in the research. Both cases were family businesses in the two-generational development stage. The function of the conflict in both systems could only be hypothesised due to the exploratory nature of the research. The researcher hypothesized that the function of the conflict in the systems centred around conflict as an attempt in the system to shake loose from entrenched restricting family scripts. The important themes that presented themselves in the research not envisaged in the planning stage. These themes are part of the systemic patterning in both the cases: Perceptions of fairness or rather unfairness feed into the conflict loop. Rewards and compensation are sensitive matters in all families. The more there are perceptions of unfairness in a subsystem, the more entrenched that belief becomes, the more the conflict in the system escalates and the bigger the emotional distance gets from the assumed beneficiaries of benefits.

South Africa and more specifically Port Elizabeth is faced with many challenges with regard to economic growth and unemployment. It is generally acknowledged that the “Small to Medium Enterprises” (SME) are the largest employers in any economy, additionally SME’s are large contributors to the gross domestic product. Successful SME’s are the catalysts of the economy and over time they can develop into large enterprises. It is clear that in order for a country to have a strong and sustainable economy it needs to have a strong and successful SME sector. Unfortunately the South African SME sector performs relatively poorly in comparison with the SME sectors around the world (Herrington, Kew & Kew, 2009). With the knowledge of the importance of the SME sector to the economy and the knowledge that the South African SME’s are generally underperforming, this study will identify how to improve the relative success rate of the SME sector in Port Elizabeth South Africa. In order to achieve this, this study needs to identify why the SME sector is not performing on a par with other SME sectors from around the globe and what initiatives need to be implemented in Port Elizabeth that will enable its SME sector to perform at the same level or better than other SME sectors from around the globe. This study identifies that the South African SME’s are provided with a number of support initiatives. Some of these support initiatives have been very effective, while other support initiatives have been unsuccessful or have failed. This study concludes by identifying a number of areas that need improvement; of these areas two are identified as being critical to SME’s success and sustainability, these two areas are: · The need to make SME’s more aware of the government / business initiatives that are available; and · Establish more effective mentoring and coaching. In order to address these critical areas, the study suggests the use of an internet portal that can be used to coordinate all the activities between the mentors and the SME’s. This internet portal will be expanded to become the core information hub and collaboration centre for the flow of information between the SME’s and any of their stakeholders. Once all this information is centralised it will be a relatively simple process to measure the success rate of the SME’s and the effectiveness of the different mentors.

Since 1994, the opening up of the South African economy has presented South African companies with opportunities to exploit the bigger global market and also with challenges of competing with international companies. Companies must consider both external environmental forces and internal organizational factors before arriving at a suitable international strategy. This treatise explores the wiring harness industry in the Nelson Mandela Bay to determine whether the industry is adopting international strategies in line with globalization, thus ensuring sustained growth and profitability. A literature survey was conducted to discover the main strategies that are used by companies in order to achieve global competitiveness. These strategies were used in conjunction with Porter's (1990) theory of National Competitive Advantage to analyse the wiring harness industry in the Nelson Mandela Bay. Porter's (1990) theory of National Competitive Advantage was used to analyse the competitiveness of the wiring harness industry in the Nelson Mandela Bay. A questionnaire was developed to test the degree to which the wiring harness industry in the Nelson Mandela Bay is in agreement with the findings of the literature study. This information was used to determine whether the wiring harness industry in the Nelson Mandela Bay is following global trends to remain profitable.

This study investigates the interface between financial and marketing management in South African businesses by investigating the financial and marketing-management processes. This process orientation highlighted important interactions between the two functions. A critical analysis of secondary resources produced a clear theoretical foundation on which the development of the proposed interface framework was based. The critical literature analysis indicates four steps in the financial management process, namely, financial analysis, financial decision-making, financial planning and financial control (independent variables) and five steps in the marketing management process, namely, understanding the marketplace as well as customer needs and wants, designing a customer-driven marketing strategy, constructing an integrated marketing programme, building profitable relationships and capturing value from customers in the form of profits and customer equity. These steps were used to derive a proposed theoretical framework that shows how the steps in the financial-management process relate to those in the marketing-management process. The framework also indicates the perceptions of managers on the interface between the two functions. The perceptions on the interface include aspects such as the level of communication between the two departments, the understanding of each other‟s function and the flow of information between the two departments. From this framework, the six hypotheses were formulated to test the proposed relationships. The focus of the study is on the interface between financial management and marketing management; therefore, the population of this study comprised of financial and marketing managers in South Africa. The primary data relating to the interface between financial management and marketing management was acquired by means of an on-line web-based survey. Descriptive statistics was used to present, analyse and interpret the results of the data analysis. Various inferential statistical techniques (T-tests and chi-squared tests) were employed to determine whether respondents‟ perceptions of the items in the measuring instrument differed as result of whether they were employed in the finance or marketing sections of the business. Correlations (Pearson Product Moment correlations) were calculated for the purpose of investigating the relationships between the financial and marketing management variables used in this study. Factor analysis showed that financial management consisted of four factors that corresponded with the steps in the process, and marketing management produced five factors that related to the steps in the marketing management process. Lastly, statistical tests (MANOVA) were conducted to determine whether the perceptions of respondents, with regard to the financial and marketing management variables, were influenced by selected demographic variables. The results of the empirical study indicated positive relationships between all the variables in the framework. The marketing management factors, namely, mix and profit, reported the lowest correlations compared to the financial management factors. It was also found that financial and marketing managers had different perceptions of the steps in the financial-management process but that they did not have different views of the steps in the marketing-management process. Furthermore, financial and marketing managers had different opinions about the long-term perspective of the business as well as conflicting views with regard to the flow of information from finance to marketing. Financial managers were of the opinion that marketing managers did not understand financial methods and procedures and were unable to specify their requirements to finance. The proposed framework could be seen as the start of marketing theory development on finance interaction as it showed that interface relationships could be further explored.