Department of Business Management

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Browsing Department of Business Management by browse.metadata.advisor "Bloom, Jonathan Z."

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    Determinants of the South African residential real estate grown cycle
    (Stellenbosch : Stellenbosch University, 2007-12) Franken, Marika; Bloom, Jonathan Z.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management.
    ENGLISH ABSTRACT: As from the beginning of 2000 house prices have seen four consecutive years of sustained price increases for the first time since 1984. These price increases enhanced activity in and redirected investment focus to the residential property market. It appears that the boom in house prices was preceded and supported by a number of economic variables, such as growth in disposable income, greater affordability, low inflation and low interest rates. Based on the above, the primary objective of this study is to identify through regression analysis the leading indicators of the house price growth cycle. The results indicate that one-quarter lagged growth in house prices, onequarter lagged interest rate growth, one-quarter lagged growth in the rand/dollar exchange rate and growth in the one-quarter lagged construction cost could be used to predict the growth in house prices. The analysis is extended to include a regression analysis of the upswing and downswing phases of the house price growth cycle, which is intended to identify potential leading indicators of an upswing and downswing in the property cycle. The results for the upswing phase indicate that one-quarter lagged growth in house prices, one-quarter lagged interest rates, one-quarter lagged growth in household consumption, one-quarter lagged growth in JSE ALSI and one-quarter lagged growth in the rand/dollar exchange rate may be used to predict the growth during the upswing phase of house prices. The results for the downswing phase indicate that one-quarter lagged growth in house prices, one-quarter lagged growth in interest rates, one-quarter lagged growth in household saving and one-quarter lagged growth in construction cost could be used to predict the growth of house prices during the downswing phase. No indicator series could consistently predict the direction of growth in house prices. To test which economic variables appear most frequently as indicators of growth in house prices a second regression analysis is performed for the cycle and the upswing and the downswing phases using a longer predictive period. The initial regression analysis is based on data from 1974 to 2000 and the second regression analysis is performed on data from 197 4 to 1995 and tested on data from 1996 to 2004. A comparison between the relevant regression analyses performed on the complete house price growth cycle found that only one-quarter lagged growth in house prices is a common variable for the prediction of growth in the complete house price cycle. The regression analysis performed on data from 197 4 to 1995 for the upswing phase produced three models. The regressions have four variables in common; one-quarter lagged growth in house prices, one-quarter lagged growth in building plans passed, one-quarter lagged household savings and one-quarter lagged consumption. The regression is repeated on the downswing phase and a comparison of the results of the regression analysis from 197 4 to 2000 and the regression analysis from 197 4 to 1995 showed that one-quarter lagged growth in house prices, one-quarter lagged growth in interest rates and one-quarter lagged growth in construction costs consistently predicted changes in the growth of house prices during the downswing phase. Only one-quarter lagged growth in house prices are consistently identified as a growth indicator for the complete cycle, upswing phase and downswing phase.
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    Entrepreneurial intensity: the influence of antecedents to corporate entrepreneurship in firms operating in South Africa
    (Stellenbosch : University of Stellenbosch, 2007-12) Scheepers, Margarietha Johanna; Hough, J.; Bloom, Jonathan Z.
    The turbulent, rapidly changing knowledge economy has forced enterprises to become more entrepreneurial in order to capitalise on new opportunities and to create value. Previous research has shown the financial and non-financial benefits of corporate entrepreneurship (CE), but the implementation and management of CE remains problematic. Despite heightened awareness and interest by both scholars and practitioners in studying and better understanding entrepreneurship within large organisations, CE is still regarded as an emerging field of inquiry. Furthermore, limited research has thus far been conducted on CE and entrepreneurial intensity (EI) in the South African context. A review of the CE literature revealed a research gap that culminated in the following research question: How do the antecedents to CE influence the entrepreneurial intensity of firms active in e-business operating in South Africa? To address the research question stated above a literature review of antecedents to CE, and entrepreneurial intensity was conducted, and an empirical study was executed. The literature review emphasised five salient internal antecedents to CE: management support for CE; autonomy of employees; rewards for CE; time and resource availability; and flexible organisational boundaries. The external antecedents which influence CE were identified as munificent, opportunity-rich environments, and hostile environments filled with threats. Other factors that also play a role in influencing the level of entrepreneurship in enterprises are the type of industry, size and age of a company, managerial influence and the role of the individual in the CE process. The level of entrepreneurship was defined as entrepreneurial intensity, a function of frequency and degree of entrepreneurship. To address the research problem, empirical cross-sectional telephone surveys were conducted in two stages. The sample selected for the study was companies active in e-business operating in South Africa and aware of innovation practices. Two groups of companies were identified, namely JSE companies and Information and Communication Technology (ICT) companies. The key respondent targeted in JSE companies was the Information Technology (IT) Manager or the Chief Information Office (CIO), while the Chief Executive Officer (CEO) or Sales Manager was the key respondent in ICT companies. The population consisted of 715 companies. The response rate for first stage of the study was 44%, while the response rate was 20% for the second stage of the study. Measurement instruments were adapted, developed and revised where necessary to ensure the reliability and validity of the data. The collected data were analysed using descriptive and inferential statistics. The findings indicated that internal antecedents to CE have a significantly stronger influence on degree of entrepreneurship than munificent, external factors. This finding underlines the important role managers can play in providing a supportive climate for CE. The prominent internal antecedents in this study were management support for CE, autonomy of employees and rewards for CE. The findings also emphasised the importance of a positive, munificent business climate, as perceived by managers inside the organisations. Furthermore, the findings suggested that the more frequently enterprises act entrepreneurially, the higher their degree of entrepreneurship should be. Differences in EI, degree of entrepreneurship, internal and external antecedents were also discernable between JSE and ICT companies, with ICT companies showing higher levels of entrepreneurship than JSE companies. Moreover, the findings suggested that the size of a company did not influence EI, but the age of companies showed a negative relationship with EI, degree of entrepreneurship and the internal antecedents to CE. It appears that as companies become older, their internal environments become less supportive of entrepreneurial behaviour. The most important contribution of this study is the testing of CE-theories in the South African context. The managerial implications of the behavioural model tested in the study are that top and middle management could create a supportive environment for CE, while munificent environments encourage entrepreneurial behaviour. Measurement instruments have been developed, which may be used by managers, consultants and other researchers to measure these phenomena in future. Furthermore, the findings suggest that there are country differentials with regard to CE, while opportunities for further research were also identified.