Thesis (MBA)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: South Africa has developed a significantly large number of highly successful global firms relative to its economy size – as evidenced by the market capitalisation of the South African stock exchange representing more than 180% of the country’s gross domestic product, and its inclusion in the BRICS nations of leading emerging national economies. Whilst some of this success has been documented, the author found no evidence of the application of internationalisation theory to South African firms, whilst other emerging market research has yielded results that challenged early theoretical underpinnings and added value to a further understanding of internationalisation behaviour and motivation. SABMiller is the second largest brewer in the world and originated in South Africa. A great part of their success has been attributed to the culture and history of the organisation within its home market. The aim of this research report was therefore to uncover the drivers, strategies and critical success factors of SABMiller’s internationalisation move. Their motivations, enablers and modes of entry employed were further compared to extant literature in order to determine which, if any, theories are best suited to describe their process of internationalisation. This research report made use of a holistic, single, qualitative case study of SABMiller. Primary and secondary source data were collected in the form of semi-structured interviews conducted with 29 current and former senior managers of SABMiller or their investment partners, all of whom were involved in some degree with the organisation’s internationalisation. The individuals interviewed related experience pertaining to particular cross-sectional time-periods within SABMiller’s internationalisation process. Data were then examined using thematic analysis and compared to theories posited in literature on the subject. It was found that whilst extant literature on internationalisation provides useful, broad frameworks within which to analyse the paths followed by an organisation, a more holistic regard of the body of literature is recommended, particularly in analysing emerging-market multi-national enterprises (EM MNE) whose history and culture play a significant role in determining internationalisation behaviour. The role of SABMiller’s South African home culture as a differentiator, as well as the development of a deep talent pool in enabling rapid expansion, was telling in their success. Operating excellence was a competitive advantage in the majority of markets they entered, whilst their in-house mergers and acquisitions (M&A) competence, coupled with a distinctive partnering ability, demonstrated clearly the advantage of building and maintaining strong relationships and network positions when internationalising. SABMiller’s initial expansion sought to counter the threat of becoming a takeover target in their own right, as well as seeking new markets that were both affordable and could match the relative competitive advantages they had developed. As the company grew, their motivations expanded to a portfolio consideration of balancing risk and currency exposure in emerging markets, with more stable profit pool participation in developed markets. In entering new markets, SABMiller utilised a beachhead approach whereby their main aim was to secure entry to a desired market from which they would be able to expand further – through either organic market share gain, increased ownership of their joint ventures, or further acquisitions within the market. Firms engaging in foreign expansion for the first time need to understand clearly their relative advantages, to what they owe that endowment, and to what extent those advantages are sustainable in the face of global competition. Furthermore, locational advantages of a target country must be viewed relative to the competitive advantages they possess within the context of their product class, industry structure, nature of the knowledge to be transferred, and where the value generation lies within their structure. Global government priorities and political stability are varied and can have an overriding impact on a firm’s choices and ability to internationalise effectively. Investment into local communities and alignment to priorities of social development and environmental preservation are becoming increasingly important and internationalising firms need to factor this into consideration in order to increase their chances of success. The significant impact of governments on internationalisation is highlighted in the literature and is particularly evident in the case of SABMiller. With the added importance of investment towards societal goals, a study of the motivators and priorities of host governments may add value to firms in partnering effectively when internationalising, particularly within the realm of value chain development. The author further recommends research be conducted on the impact of South African culture on internationalisation success – particularly where expatriation forms part of a firm’s strategy, whilst the role of leadership as a differentiator in successful internationalisation is an area not explored extensively within this study, nor was significant reference found in the literature. It was uncovered as a significant theme in SABMiller’s expansion, however, and thus is an area that may warrant further exploration.

M.Com. ( Business Management) / Please refer to full text to view abstract

Thesis (M.M. (Innovation Studies))--University of the Witwatersrand, Faculty of Commerce, Law and management, Graduate School of Business Administration, 2016 / FDI is a buzzword used in the discourses of many emerging market politicians over the last two decades and SA politicians make no exception. It is commonly accepted that many multinationals (MNEs) provide employment opportunities and contribute to the transfer of technological knowledge in support of the host country’s catch up activities. This study aims to provide insight into how the South African subsidiaries of innovative ICT MNEs invest in skills development and why their local leaders chose to act in this way by comparing the case studies of IBM SA, Cisco SA and Dimension Data. It also seeks to find which of these three firms is more efficient at this investment and how South Africa, as a host country, influences their investment activities. The theoretical foundation for this study contains the literature review under the topic framed by the research problem: “How innovative ICT firms based in SA invest in skills.” The researcher gained knowledge about the habit of investment in skills in these branches of MNEs, in particular, their behaviour when they operate within South Africa, and produced a set of propositions that were investigated under the framework of the three case studies using qualitative research methodology. On one hand, the outcome of the study is that these researched branches are not innovating in SA because of the special emerging market context of SA and consequently, at present, they do not invest in R&D and innovation activities. On the other hand, SA government business consultants consider the branches of MNEs as sources of strong innovative and R&D activities that may influence SA innovation successes, different from what these firms do. Moreover, the results of the analysis show that the studied firms intensively exploit their existing products for maximum short-term profit. Policy makers could be assisted by this study in developing adequate policies in support of R&D and innovation activities. The study could also provide guidance for those HQs and leaders of local branches who want to improve their performance in SA and to SA innovators who are seeking to understand the twofold effect of globalisation. / DM2016

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management with specialisation in Entrepreneurship and New Venture Creation. University of the Witwatersrand, Johannesburg, March 2016 / New technology-based firms (NTBFs) or technopreneurs are assumed to be one of the most important sources of economic value creation and development. Apart from bringing innovation with high growth and impact potential, NTBFs are faced with high uncertainty and demand a supporting environment that enhances firm’s performance. It can be concluded that new firms or new incubatees operate in competitive settings and demand systems that aid them to realize sustainable growth. Globally, there is a well-established body of knowledge that scrutinizes factors and relationships between factors that enhance NTBFs innovation performance. Majority of existing literature concurs that there are numerous variables of factors that can influence the product or service performance in respect to turnover. Within sub-Saharan Africa, technology incubation support programmes are seen as factors that affect a firm’s performance. However, the rise of NTBFs, the startups concept and technology incubator practices are all very much in their infancy in South Africa. From this point of view, it is significant to qualify the existing global body of knowledge to Gauteng’s context in order to identify the right mix factors impacting innovation performance of new technology-based firms. Factors such as survival, research and development (i.e. R&D propensity) and technological capability are seen as levers that impact new technology-based firm’s innovation performance. In a narrow sense, in this study, we aim to extend existing research by identifying determinant factors related to survival, R&D propensity and technological capability as independent variables; and analyse the nexus of these factors and innovation performance, the independent variable. We prudently identify startup firms that are in technology and embrace innovations while most of these new startups are still in an early development stage and receive comprehensive investment from university or government innovation in Gauteng. A total of 206 NTBFs were surveyed. Initially, the study employs exploratory factor analysis to first estimate the underlying variables and estimate of latent loadings. Subsequently, the correlations between survival, technological capability, R&D propensity and innovation performance measurements were tested. ii The findings suggest that there is no relationship between the number of years under the incubation management and producing new products and services that firms can launch to new market to gain profits in order to survive. Particular, in South Africa, the technology incubator movement is still in an infancy stage; hence for firms starting new ventures and producing products, it is difficult. The evidence from this study also found no relationship between survival (i.e. access to knowledge and collaboration) and innovation performance i.e. turnover. On the other hand, it was expected that investing vigorously in R&D would create patents, publications, products and services which would impact turnover. In opposition, the empirical results found no statistical relationship between R&D propensity and turnover. Our results should also be interpreted in the broad sense; measuring R&D propensity should be viewed with the understanding of complexity in measuring R&D impact to turnover. The study also found no relationship between marketing and firm turnover. Although theoretical studies suggest applying marketing capability is a key in launching and commercialising innovations, these firms tend to place more focus on product developments and pay less attention to marketing capabilities. Consistent with existing literature, the study found that there is a positive relationship between technological capability - innovativeness and innovation performance i.e. turnover. This is in line with the researcher’s position that generation, developing and implementation of new ideas leads successful performance of innovation, while we have contended that adapting or modifying existing technologies, emphasising introduction of new products, marketing of tried and true technologies and using previous research to implement technologies as determinant factors to technological capability (i.e. Technology Adaptation) impacts innovation performance. The results of the study concluded that there is a relationship between Technology Adaptation and innovation performance. In regards, competitive environment, the study found that no relationship between introducing innovation ahead of competitors and innovation performance. It was expected that these firms would avoid taking risks, these firms are not equipped with resources to experiment innovation methods or lead in new market identification. The empirical evidence generated from this study is significant and contributes to the existing body of knowledge for this reason: the study advances literature of measurements of innovation performance which varies from one study to the other. / GR2018

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Entrepreneurship and New Venture Creation Johannesburg, 2017 / The aim of this study was to analyse and investigate the link between organisational antecedents that enhance corporate entrepreneurship, and entrepreneurial orientation, followed by entrepreneurial orientation’s impact on firm growth and performance. The study focused primarily on recent graduates in companies operating in South Africa. The organisational antecedents analysed were management support, work discretion, rewards and reinforcement, time availability, and organisational boundaries. The entrepreneurial orientation factors used were proactiveness, risk-taking, and innovativeness. The impact of entrepreneurial orientation was measured against firms’ growth and performance. A sample of 193 recent graduates, employed in an array of sectors in South Africa was analysed. The findings reveal that recent graduates place a particular emphasis on management support, and rewards and reinforcement as particular enablers for creating the context for corporate entrepreneurship. A significant positive relationship between these antecedents and entrepreneurial orientation, and a strong association between entrepreneurial orientation and firm growth and performance was found. Population trends reflect that 58.13 percent of South Africans are under the age of 29 (Stats SA, 2016), reflecting that young people, under the age of 30, will serve as the dominant demographic in the workforce in South Africa, over the next 15 years. This study was thus particularly relevant as it aligns the changing external environment that compels companies to become more entrepreneurial, with the perspective of a new generation of workforce that will be primarily responsible for driving this change. / MT2017

Submitted in partial fulfillment of the requirements for the degree of Master of Commerce in Information Systems (Coursework) at the School of Economic and Business Sciences, University of the Witwatersrand, June 2017 / Small Medium Enterprises (SMEs) are now recognized as the driving force behind most thriving economies. This is mainly attributed to the role they play in most economies in reducing unemployment and their contribution towards Gross Domestic Product. This means that SMEs should have the right resources to enable them to enhance performance. Choosing the right technology to support their businesses is one of the important decisions that SMEs should make. Understanding the benefits and challenges of different technologies is often a problem for most SMEs. One of the new technologies that has gained prominence in recent years is cloud computing. Even though the value associated with this technology has been widely researched especially for large enterprises, the rate at which SMEs adopt cloud computing still remains low. The purpose of this research sought to explore and describe the determinants influencing the adoption of cloud computing by SMEs in South Africa. The study used Technology Organization Environment (TOE) framework as the theoretical lens in understanding the adoption of Could Computing phenomenon. Further, this qualitative exploratory and descriptive study used semi-structured interviews to collect data from five SMEs based in Johannesburg, Gauteng Province, operating in different industries and belonging to the National Small Business Chamber. The main factors that were identified as playing an important role in the adoption of cloud computing by SMEs are, relative advantage, complexity, compatibility, awareness, trialability, culture, top management support, size, regulation and trade partner relationship. It is worth noting that there was not enough evidence that competitive pressure played a significant role in SME cloud adoption. / XL2018

Submitted in the Sociology department at the University of the Witwatersrand, Johannesburg / Andrew Chakane 2018

Thesis (Ph.D.)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017. / The study is aimed at empirically investigating the dynamic interaction between the demand and supply factors affecting SMME access to credit in the Eastern Cape. The study is also aimed at conducting a comparative evaluation of lending criteria used by development finance institutions (DFIs) and commercial banks in evaluating SMME funding applications. The study is geared towards proposing a funding framework aligned to the characteristics of SMMEs which can be used by both DFIs and commercial banks to assess applications for SMME funding. In order to meet the objectives of the study, a sample of 80 SMMEs from the manufacturing, construction, services, agriculture, automotive, mining, security, merchandising and retail sectors was, through proportionate stratified sampling, selected from the population of all the SMMEs from the eight metropolitan and district municipalities (Nelson Mandela, Buffalo City, Joe Gqabi, Chris Hani, OR Tambo, Cacadu, Alfred Nzo and Amathole) constituting the Eastern Cape Province. Three separate structured open and closed-ended questionnaires were used to collect data from the 80 SMMEs owner/managers, 8 DFIs’ regional/branch managers and 5 major commercial banks branch managers in the province. The design of both questionnaires was underpinned by the credit rationing theoretical framework as well as the 5C’s of credit (capacity, collateral, capital, condition and character). A response rate of 100% was achieved. Content analysis and Relative Importance Index (RII) were used to analyse data. The results of the dynamic interaction between the supply and demand factors affecting SMME access to credit show that generally, there is an alignment between the SMME and the funding institutions survey results. This shows that the lending criteria of funding institutions are transparent. On the other hand, it is evident that there is poor awareness of the funding institutions criteria by SMMEs. SMMEs seem not to know what funding institutions are looking for when they evaluate funding applications. The results also pointed out that the characteristics of SMMEs in the study are representative of those of SMMEs countrywide. SMMEs in the study are characterised by poor/no business plans, lack of financial statements, lack of collateral, tax clearance certificates, poor cash flow, lack of owners’ contribution and lack of previous industry experience. The results also indicate that funding institutions’ lending criteria do not take into account the unique characteristics of SMMEs in the Eastern Cape. The results of the comparative evaluation of the lending criteria of DFIs and commercial banks show that there are no substantive differences between how commercial banks and DFIs evaluate the credit applications made by SMMEs. Both groups of lenders place significance on the business plans, financial statements, cash flows, owners’ contribution, collateral and experience of owner/managers. Moreover, the study also found that there is significant discrepancy between what the lending documentation of DFIs and commercial banks indicates as key requirements and what the survey results indicate. This means that what funding institutions practice is not congruent with what is enshrined in their lending criteria/policy. If we proxy lend in practice with what the key informants indicated as critical variables, the results show that both groups are more stringent in practice in key areas of their lending criteria. The review of the characteristics of SMMEs in South Africa showed that they lack collateral, are low on savings and experience. Furthermore, they have little capacity for writing business plans and cash flow management. The results here indicate that these are the very same areas which the financial institutions place significant importance on. The findings indicate that the lending criteria used by both groups tend to favour large and well established firms which have the required capacities. Based on the above findings, it is evident that in order to address the SMME access to credit constraint, a new framework that can be used by DFIs to lend to SMMEs needs to be developed. The framework must take into account the peculiar nature of SMME characteristics. Without such an approach, the funding gap for SMMEs in SA will continue. In response to the above findings, the study proposes that government must incentivise funding institutions to innovatively provide capacity building and training programmes targeted at improving the skills and expertise of their staff. It is proposed that DFIs should simplify their loan application forms to cater for the historically low literacy levels of SMMEs in the Eastern Cape. In addition, DFIs should adopt a more streamlined loan application process as well as a shared due diligence process. Credit application forms as well as key lending documents should be standardised. DFIs should conduct road shows to take their potential SMME customers through their application form, how they must be completed and the documents to accompany the form. SMMEs must be personally involved in the gathering of the relevant business plan information as well as in the writing up of their business plans. DFIs must organise quarterly workshops aimed at taking their potential clients through their lending criteria. The SEFA Credit Guarantee Scheme must be reviewed. Government must provide support to its venture capital industry by creating a good investment climate. The study proposes that a knowledge portal that will enable the sharing of knowledge and learning among SMMEs in the Eastern Cape be established. DFIs must set up SMME divisions or units to provide specialised credit services to their SMME customers. DFIs should evaluate SMME credit applications based on alternative risk evaluation methodologies such as the psychometric screening developed by the Harvard University’s Entrepreneurial Finance Laboratory. DFIs should explore alternative means of financing that do not require collateral. To increase SMME access to credit, government should establish specialised banks that can exclusively cater for the needs of the SMME sector. Government could consider granting certain incentives to funding institutions that actively promote SMME financing and have achieved a sizeable SMME loan book. / MT 2017

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management (ENVC) Johannesburg, 2016 / Entrepreneurial Leadership is a fledgling discourse within the entrepreneurial fraternity, yet its absence in enterprises contributes to most of the firms’ abrupt ending. Studies show the lifespan of SMEs in South Africa only lasting the first three years of existence. Entrepreneurial Leadership plays critical role in the business performance of the SME in Johannesburg. A sample of 123 respondents was drawn from mostly owners and managers of SMEs in Johannesburg. A multi-prong approach for data collection was administered in the study; this included calling the prospective respondents both on their landline telephones and mobiles and some were given hard copies of the questionnaire to complete. For the convenience of other prospective respondents, an e-link questionnaire was sent by email, and directly, to the mobile phones. The conclusion of the study showed a correlation between entrepreneurial leadership and business performance, correlation between entrepreneurial orientation and business performance and finally, the moderating effect of entrepreneurial leadership on entrepreneurial orientation and business performance in Johannesburg. Given the gap in the market for the practitioners in the sphere of SME, the application of findings of this report will be helpful to the prolonged tenure of the SME in Johannesburg. The theory amassed in the study will also contribute towards further studies in Entrepreneurial Leadership. / MT2017

A dissertation submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Building. / With changing supply and demand economic conditions which may be unfavourable, it is imperative that investors time redevelopment of a property asset in order to maximise profitability. When correlating the relationship between capital values and vacancy rates of super regional shopping in South Africa between the years 2003 – 2012 there is a positive correlation, meaning that investors are not adequately timing the redevelopment of super regional shopping centres in order to maximum profitability. This research utilizes multi-stage real options to time redevelopment of shopping centres in order to maximise profits, through the analysis of supply and demand economic variables; and the Black-Scholes Model. The research methodology of the study ensured that the research results utilized were thoroughly investigated and tested through reliability and validity testing measures; and that the data collected was harvested from credible and reputable databases such as the Investment Property Databank Limited, Statistics South Africa and the City of Johannesburg.