Supply chain risk mitigation in South Africa: a case study of Eskom

2019 ◽  
Vol 27 (3) ◽  
pp. 1105-1125
Author(s):  
Ellsworth Chouncey Jonathan ◽  
Chengedzai Mafini ◽  
Joyendu Bhadury
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Economic Development ◽  
Risk Mitigation ◽  
Sampling Technique ◽  
Social Implications ◽  
Structured Interviews ◽  
Content Type ◽  
Academic Literature ◽  
African Context

Purpose Interferences to supply chains (SC), regardless of whether they are regular, unplanned or intentional, are progressively distorting SC execution. As such, risk mitigation in SCs has received sufficient attention in the academic literature. However, there is scant research done on this topic within the African context, and none on the SC of electrical energy on that continent. In an effort to address this gap, the purpose of this paper is to focus on the SC department of Eskom, the primary utility company of South Africa and one of the largest on the continent. Design/methodology/approach Adopting a non-probability sampling approach utilising the purposive sampling technique to choose the sampling components from the target population, data were collected through semi-structured interviews as well as additional documentation in various forms. Data interpretation and codification thereof were done using ATLAS.ti 8 from which ten themes emerged. Findings The ten themes that emerged from the analysis of data show that SC risks emanate from value streams, information and affiliations, SC activities and external situations. Furthermore, these are brought into relief within the African context through examples and quotes from Eskom managers. Research limitations/implications Based on the findings, the paper makes five major recommendations that would broadly apply not only to SC risk management (SCRM) in Eskom, but also other African utility companies. Practical implications Companies in emerging economies such as South Africa and other Sub-Saharan countries face a unique set of challenges with regards to SCRM. Some of these are identified in this paper and appropriate recommendations have been made. Social implications Being the largest utility provider in Africa, services offered by Eskom are vital for economic development of South Africa as well as neighbouring countries. As such, the findings of this paper as well as the recommendations have social implications for economic development in that country as well as the region. Originality/value While SC risk management has been studied extensively in the academic literature, to the best of the authors’ knowledge, this is the first paper that attempts to study it within the context of South Africa with focal emphasis on one of the largest corporations in that country.

Risk management factors contributing to transgressions in the procurement practices in South African SOEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
African State ◽  
Political Influence ◽  
Structured Interviews ◽  
Content Type ◽  
Executive Level

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.

Headquarters site selection preferences: occupiers’ perspectives

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thabelo Ramantswana ◽  
Koech Cheruiyot ◽  
Samuel Azasu
Keyword(s):  
South Africa ◽  
Water Supply ◽  
Developing Country ◽  
Site Selection ◽  
Sampling Technique ◽  
Structured Interviews ◽  
Security Systems ◽  
Content Type ◽  
Listed Firms ◽  
Metropolitan Municipalities

Purpose There are multitudes of sites and buildings offering various services to their occupiers. Studies highlight that companies choose sites and buildings that enable business’ growth and competition. The purpose of this paper is to explore occupiers’ perspectives on headquarters (HQs) site selection preferences with reference to the public listed firms in South Africa’s eight metropolitan municipalities. Design/methodology/approach A literature review was conducted to understand site selection preferences in other countries to inform the current study. Empirical data were collected using a sequential mixed-method approach using interviews and a survey. Semi-structured interviews were conducted first with the executives/management and also personnel who are involved in site selection decisions. Purposive sampling technique was used to select one company per industry to be interviewed. The information gathered from interviews informed the survey that was distributed online using Qualtrics software to all public listed firms located within the eight metropolitan municipalities in South Africa. Thematic analysis was used for analysing the interviews, whereas self-explicated conjoint model was used for the survey. Findings The results reveal that HQs as occupants of space prefer facilities that have good security and security systems, backup generators, air conditioning, parking facilities, energy management, access to the internet, efficient water supply, quality meeting places, cleaning services, the condition of the premises and disabled-friendly facilities. In addition to these preferences, HQs also prefer sites that are accessible. From this study, aspects that are unique to South Africa’s case are around security and security systems. The higher the crime levels, the higher is the demand on HQs to provide security and security systems for not only for their premises but also their employees. The current water and energy outages are also affecting HQs resulting in companies preferring facilities with an efficient water supply and having backup generators. Research limitations/implications The research only focussed on public listed firms located within the eight metropolitan municipalities. The findings may/may not apply to the HQs of non-listed firms and also to those situated outside the metropolitan municipalities. Owing to this, the results cannot be generalised. Further studies are needed to explore preference by industry with larger sample size. Practical implications This study provides insights on HQs site selection preference levels from the context of South Africa as a developing country. The insights would be useful to companies within the South African context to better understand their contextual dynamics and for companies seeking to do business in developing countries. Apart from companies, this study would also be beneficial to policymakers in creating enabling policies for companies, property developers to build facilities that embrace aspects preferred by occupants and investors to understand the preferences of HQs in the selection of sites for their operation. Originality/value In a developing country such as South Africa, there are limited studies on HQs site selection preferences; therefore, this study is one of the few studies bridging the knowledge gap. This study adopts a marketing approach to understand corporate real estate phenomenon.

Leadership of change in South Africa public sector turnarounds

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mampe Kumalo ◽  
Caren Brenda Scheepers
Keyword(s):  
South Africa ◽  
Public Sector ◽  
Current Literature ◽  
Organisational Change ◽  
Director General ◽  
Change Processes ◽  
Structured Interviews ◽  
Content Type ◽  
The Public ◽  
Financial Consequences

PurposeOrganisational decline has far-reaching, negative emotional and financial consequences for staff and customers, generating academic and practitioner interest in turnaround change processes. Despite numerous studies to identify the stages during turnarounds, the findings have been inconclusive. The purpose of this paper is to address the gap by defining these stages, or episodes. The characteristics of leaders affect the outcome of organisational change towards turnarounds. This paper focusses, therefore, on the leadership requirements during specific episodes, from the initial crisis to the full recovery phases.Design/methodology/approachA total of 11 semi-structured interviews were conducted with executives from the public sector in South Africa who went through or were going through turnaround change processes and 3 with experts consulting to these organisations.FindingsContrary to current literature in organisational change, this study found that, in these turnaround situations, leadership in the form of either an individual CEO or director general was preferable to shared leadership or leadership distributed throughout the organisation. This study found four critical episodes that occurred during all the public service turnarounds explored, and established that key leadership requirements differ across these episodes. The study shows how these requirements relate to the current literature on transactional, transformational and authentic leadership.Practical implicationsThe findings on the leadership requirements ultimately inform the selection and development of leaders tasked with high-risk turnaround change processes.Originality/valueFour episodes with corresponding leadership requirements were established in the particular context of public sector turnaround change processes.

Integrated reporting and integrated thinking in Italian public sector organisations

2017 ◽  
Vol 25 (4) ◽  
pp. 553-573 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes-Rossi ◽  
Rebecca Levy Orelli
Keyword(s):  
Public Sector ◽  
Processes Of Change ◽  
Press Releases ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Academic Literature ◽  
Reporting Framework ◽  
History Of

Purpose This paper aims to explore the linkages between integrated reporting (IR) and organisations’ internal processes, specifically focusing on investigating the internal mechanisms of change that can lead organisations to adopt IR disclosure and how this impacts on integrated thinking internally. Design/methodology/approach The paper draws upon previous analysis and insights provided in the IR academic literature, as well as analysing several directives, policy and framework pronouncements. The study also draws on the management accounting change literature, using it as a lens to observe early adopters’ practice. In addition, it provides detailed case studies considering the internal processes of change in five early adopters of the integrated reporting framework (<IRF>) and whether the adoption leads to internal “integrated thinking”. Five Italian public sector organisations are analysed, and the authors make use of official documents, press releases and in-depth semi-structured interviews with the major internal actors. Findings The research highlights that the processes of change in organisations adopting IR is their adoption of a way of thinking, that is, integrated thinking, as a result of the process of internalisation. Research limitations/implications Given the short history of IR, this sample is small due to the small number of early adopters. Originality/value The paper provides academics and policymakers with insights into the process of change to be considered while adopting the <IRF> and responds to calls in the IR literature for further field-based studies on IR’s impact on internal processes. Also, the paper highlights that the European Directive on the disclosure of non-financial and diversity information (2014/95/EU) has the potential to increase environmental, social and governance disclosures amongst European companies.

scholarly journals Sponsorship and social identity in advancement of women leaders in South Africa

2018 ◽  
Vol 33 (6) ◽  
pp. 466-498 ◽  
Author(s):  
Caren Brenda Scheepers ◽  
Anastasia Douman ◽  
Preya Moodley
Keyword(s):  
South Africa ◽  
Career Development ◽  
Social Identity ◽  
Senior Management ◽  
Female Executives ◽  
Content Type ◽  
Management Positions ◽  
African Context ◽  
Gender Based ◽  
Executive Level

Purpose In South Africa, women in senior management positions experience social identity dilemmas, necessitating more research into this domain. While research has been conducted into coaching and mentoring of these women, limited scholarly attention has been paid to sponsorship. This paper aims to explore the social identity of women at senior management levels and sponsorship as a proposed mechanism to develop talented women. Design/methodology/approach This qualitative research included two studies using two sample groups, both of which included executive-level respondents in corporate organisations. One study focussed on sponsorship; here, the 29-strong sample included 14 male and 15 female executives, of whom 15 were White; 9 were African and 5 were Indian. The second study, consisting of only African, coloured and Indian (ACI) female executives (23 interviewees), focussed more broadly on their development path to the C-suite. Findings A common theme across the two studies was the inclination to give developmental support, in turn, once supported. There were prerequisites in this support-giving, however. For example, sponsors identified criteria that protégés had to meet. Despite evident gender inequality at senior management levels in South Africa, this paper reveals that in the Study 1 sample, gender and race were ostensibly irrelevant when choosing a sponsor or who to sponsor. A closer examination revealed a gender-based expectation, embedded in the South African context. Study 2 showed that ACI women above 50 years of age were more inclined to mentor others; even when they themselves were not mentored, some purposefully developed other ACI women. This paper thus suggests age as an important additional diversity dimension in relation to the career development of ACI women towards the C-suite. The findings have implications for the career development of individual ACI women and for organisations in reaching equality. Research limitations/implications Gender differences with regard to perceptions also revealed that male respondents perceived sponsorship more as task-based actions, whereas female respondents focussed on relational elements. The paper concludes with recommendations on how individual ACI women and organisations can proactively develop talented women. Originality/value The paper offers insight into the gendered expectations of sponsors and gendered perceptions around merit in identifying protégés worthy of sponsorship. ACI women’s social identity changed when they joined the C-suite to identify more with their roles as executives and became less associated with their original ACI women group.

Determinants of voluntary formation of risk management committees

2014 ◽  
Vol 29 (7) ◽  
pp. 649-671 ◽  
Author(s):  
Nkoko Blessy Sekome ◽  
Tesfaye Taddesse Lemma
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Emerging Economy ◽  
Board Structure ◽  
Content Type ◽  
Listed Firms ◽  
Practical Implications

Purpose – The aim of this paper is to examine the nexus between firm-specific attributes and a company’s decision to setup a separate risk management committee (RMC) as a sub-committee of the board within the context of an emerging economy, South Africa. Design/methodology/approach – The authors analyse data extracted from audited annual financial reports of 181 non-financial firms listed on the Johannesburg Securities Exchange (JSE) by using logistic regression technique. Findings – The results show a strong positive relationship between the existence of a separate RMC and board independence, board size, firm size and industry type. However, the authors fail to find support for the hypotheses that independent board chairman, auditor reputation, reporting risk and financial leverage have an influence on a firm’s decision to establish RMC as a separately standing committee in the board structure. The findings signify the role of costs associated with information asymmetry, agency, upkeep of a standalone RMC, damage to the reputation of directors and industry-specific idiosyncrasies on a firm’s decision to form a separate RMC. Research limitations/implications – As in most empirical studies, this study focuses on listed firms. Nonetheless, future studies that focus on non-listed firms could add additional insights to the literature. Investigating the role of firm-specific governance attributes other than those considered in the present study (e.g. gender of directors, ownership structure, etc.) could further enhance the understanding of antecedents of risk-management practices. Practical implications – The findings have practical implications for the investment community in assessing the quality of risk management practices of companies listed on the JSE. Furthermore, the results provide insights that are potentially useful to the King Committee and other corporate governance regulators in South Africa in their effort to improve corporate governance practices. Originality/value – The present study focuses on firms drawn from an emerging economy which has profound economic, institutional, political and cultural differences compared to advanced economies, which have received a disproportionately higher share of attention in prior studies. Thus, the study contributes additional insights to the literature on corporate risk management from the perspective of an emerging economy.

scholarly journals Exploring Teachers' Views on Code-Switching as a Communicative Technique to Enhance the Teaching of Mathematics in Grade 4

2021 ◽  
Vol 7 (4) ◽  
pp. 637-6478
Author(s):  
Ailwei Solomon ◽  
Sizwe Blessing
Keyword(s):  
South Africa ◽  
Mathematics Teachers ◽  
Social Constructivism ◽  
Primary Schools ◽  
Single Case ◽  
Sampling Technique ◽  
Further Education ◽  
Code Switching ◽  
Structured Interviews ◽  
Learning And Teaching

<p style="text-align: justify;">The teaching and learning of mathematics in South Africa are conducted through the authorised Language of Learning and Teaching (LoLT). South Africa has eleven official languages, and English is a Language of Learning and Teaching (LoLT) from the Intermediate and Further Education and Training (FET) Phase. This study explores teachers' views on code-switching as a communicative technique to enhance teaching mathematics in Grade 4 in selected primary schools in South Africa. This qualitative single case study employed the interpretivist paradigm and social constructivism theory. A convenient purposive sampling technique was used to sample six grade 4 mathematics teachers from three primary schools in the Alexandra township in South Africa. Researchers collected data through the use of semi-structured interviews, which were later analysed and discussed using themes. Findings indicate that teachers often code-switch from LoLT (English First Additional Language) into Home Language (H.L.) to enhance learners' understanding of the mathematics concepts. Researchers suggested the integration of code-switching into the curriculum policy and followed by in-service training for Grade 4 mathematics teachers in code-switching.</p>

scholarly journals Revisiting currency swaps: hedging real estate investments in global city markets

2018 ◽  
Vol 36 (2) ◽  
pp. 191-209
Author(s):  
Philipp Bejol ◽  
Nicola Livingstone
Keyword(s):  
Real Estate ◽  
Foreign Currency ◽  
Risk Mitigation ◽  
Sampling Technique ◽  
Real Estate Market ◽  
Small Scale ◽  
Negative Consequences ◽  
Content Type ◽  
Net Worth ◽  
Individual Asset

Purpose The purpose of this paper is to re-examine currency swaps as an effective hedging technique for individual asset performance in today’s global real estate market, by considering hypothetical prime office investments across six different cities and five currency pairs. The perspective of a risk-averse, high net worth, non-institutional, smaller-scale Swiss investor is paired with investors from five additional national markets. Design/methodology/approach The study examines currency swaps in key office markets across three continents (Frankfurt, London, New York, Sydney, Warsaw and Zurich) and extends previous work on the topic by adopting both Monte Carlo (MC) and Latin Hypercube (LH) techniques to create stochastic samples for individual asset performance analyses. This is the first paper to apply LH sampling to currency swaps with underlying real estate assets, and the validity of this method is compared with that of MC. Four models are presented: the experience of the domestic investor (no exchange rate (ER) fluctuations); an unhedged direct foreign investment; hedging rental income and initial purchase price via a currency swap; and hedging rental income and anticipated terminal value. Findings The efficacy of a swap depends on the historical framework of the ERs. If the foreign currency depreciates against the domestic one, hedging the repatriated cash flow of a property investment proved superior to the unhedged strategy (EUR, GBP, PLN and USD to the CHF). An investor would benefit from exposure to an appreciating foreign currency (CHF to the EUR, GBP, PLN and USD), with an unhedged strategy clearly outperforming the currency swap as well as the domestic investor’s performance, while a historically sideways fluctuating ER (AUD to the CHF) also favours an unhedged approach. In all scenarios, unexpected economic or market shocks could cause negative consequences on the repatriated proceeds. Practical implications This research is of interest to small-scale, non-institutional investors aiming to develop strategies for currency risk mitigation in international investments for individual assets; however, tax-optimising strategies and the implications on a larger portfolio have not been taken into account. Originality/value There is no recent academic work on the efficacy of currency swaps in today’s global office market, nor has the position of smaller-scale high net worth investors received much academic attention. This research revisits the discussion on their validity, providing contemporary insight into the performance of six markets using LH as an alternative and original sampling technique.

scholarly journals CSR practices of Palestinian Islamic banks: contribution to socio-economic development

2017 ◽  
Vol 9 (2) ◽  
pp. 133-147 ◽  
Author(s):  
Abdalrahman Mohamed Migdad
Keyword(s):  
Economic Development ◽  
Secondary Analysis ◽  
Annual Reports ◽  
Islamic Banks ◽  
Structured Interviews ◽  
Human Welfare ◽  
Content Type ◽  
Main Research ◽  
Socio Economic Development ◽  
Islamic Financial Institutions

Purpose Corporate social responsibility (CSR) is an important corporate activity that affirms the importance of giving back to the community. This research aims to examine the CSR practices of Palestinian Islamic banks and their contribution to socio-economic development. There is an ongoing debate regarding Islamic financial institutions’ profit motive versus their motivation to achieve human welfare. The Palestinian Islamic banks are not disconnected from this debate, and this paper aims to discuss this issue. Design/methodology/approach For the purpose of assessing the CSR practices of Palestinian Islamic banks, a secondary analysis of the banks’ annual reports was carried out. In addition, 11 structured interviews were conducted with Islamic banks’ practitioners at the decision-making level and with some of the banks’ Sharīʿah board members to gather their views on CSR. These have been analyzed in light of the actual CSR practices disclosed in each bank’s annual reports. Findings The main research findings suggest that the CSR practice is highly valued by the Palestinian Islamic banks, but it is small and has marginal effects on the community’s socio-economic development. Another important observation from report analysis is that Islamic banks have great potential for expansion, given that the demand for Islamic financial transactions is double of what Islamic banks currently offer. If Islamic banks live up to that opportunity, they could deliver more in CSR practices, which is their ultimate goal according to the majority of the interviewees. Originality/value Existing literature has presented findings on the CSR of Palestinian corporations in general, but there is no available literature on the CSR practices of Palestinian Islamic banks. This research attempts to fill in the gap by presenting preliminary findings on Palestinian Islamic banks’ CSR practices.

Youth high unemployment/unemployability in South Africa: the unemployed graduates' perspectives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zethembe Mseleku
Keyword(s):  
South Africa ◽  
South African ◽  
Work Experience ◽  
Critical Role ◽  
Structured Interviews ◽  
Cooperative Effort ◽  
Content Type ◽  
South African Universities ◽  
Skills Mismatch ◽  
Graduate Unemployment

PurposeThe purpose of this paper is to explore youth graduate unemployment and unemployability as a development problem in South Africa.Design/methodology/approachThis exploratory study applied a qualitative research method to elicit the perspectives of youth graduates regarding their unemployment and unemployability. A total of 30 face-to-face semi-structured interviews were conducted with unemployed youth who recently graduated from five South African universities.FindingsThe results indicate that, as youth graduate unemployment increases in South Africa, graduates become hopeless in terms of securing employment. The participants attributed their unemployment to multidimensional factors that include limited demand in the labour market, skills mismatch and lack of work experience.Research limitations/implicationsThis research exclusively focused on graduates from five South African universities; hence, the results of this small qualitative study cannot be generalised to the entire South African population. However, this paper offers important insights that may form the foundation for a nationwide study on a related topic.Originality/valueThis paper presents important insights that influence policy makers, government and other relevant stakeholders to develop alternative solutions to youth graduate unemployment. This paper recommends that government should play a critical role in bridging the gap between higher education and industry in order to address youth graduate unemployment. It also calls for a more cooperative effort between government, higher learning institutions and employers in order to create job opportunities for youth graduates in South Africa.

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