The strategic implications of black empowerment policy in South Africa : a case study of boundary choice and client preferences in a small services firm
Date
2012
Authors
Boshoff, Willem H.
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Economic & Management Science, Department of Economics, University of Pretoria
Abstract
This paper studies the relationship between a firm’s boundary choices within its value chain and the BEE
pressures it faces from its clients. The paper shows that BEE policy alters the value chain preferences of a
firm’s clients. These changes in client preferences motivate the firm to altering its boundaries. More
important, boundary changes due to BEE are implemented in a way that ensures that the firm retains crucial
architectural knowledge, which preserves its competitive advantage. Firms therefore do not respond
passively to BEE-induced changes in client preferences, but aim to meet BEE aims within their broader
strategic environment.
Description
The original publication is available at http://www.sajems.org/index.php/sajems/article/view/54
Keywords
Black economic empowerment -- South Africa, Affirmative action programs -- South Africa, Strategic planning -- South Africa, Value chains -- South Africa
Citation
Boshoff, W.H. 2012. The strategic implications of black empowerment policy in South Africa: a case study of boundary choice and client preferences in a small services firm. The South African Journal of Economic and Management Sciences, 15(2):207-221.