Constructs of Successful and Sustainable SME Leadership in East Africa

Despite the markedly increased foreign investment, East African economies remain characterized by low levels of investment and capital formation with high level of attrition amongst indigenous small and medium enterprises. While there is a high failure rate amongst these SMEs, some are beginning to turn the corner and are exhibiting signs of robustness, innovativeness and sustainability. Relying on narrative accounts of successful SMEs leaders in Kenya and Uganda obtained through interviews and focus group discussions, this study sought to construct an account of leadership practices and ascriptions of success for SMEs that had succeeded. The study identified eight leadership constructs characteristic of successful SME leaders in Kenya and Uganda grouped into visioning, building commitment, social capital, personal values, anticipation and resilience, resourcefulness, responsiveness, and entrepreneurial orientation. While these results, on the face value, are apparently not unique, it was in the nuances of the leadership practice that difference was made. In conclusion, the study highlights implications for these findings in relation to policy and leadership practice among SMEs

Inclusive business models? How SMEs are developing inclusive value chains and combating social exclusion in bottom-of-the-pyramid markets

Research suggests that private firms can contribute to addressing poverty by prioritising the inclusion of bottom-of-the-pyramid (BoP) communities in global financing, commerce and consumption value chains. However existing evidence have focused on large multinationals. An understanding of how small firms incorporate the inclusion of BoP communities in their value chain is critical remains under-researched. Drawing on the literature integrating entrepreneurship, inclusion and business model this article develops a qualitative study of how three agribusiness in Sierra Leone, Cameroon and Kenya. The findings highlight opportunities and challenges facing entrepreneurs in pursuing inclusive business opportunities African economies

A conscious leadership model to achieve sustainable business practices

Business sustainability is a fundamental concern amongst business leaders and it is imperative that business defines an environmentally and socially sustainable path to financial prosperity. This focus on sustainable business practices has been caused by the perceived contribution of businesses to undesirable conditions such as environmental and social degradation including global warming and the global financial crises. This study suggests that a leadership style that differs from leadership that is currently causing business unsustainability is needed in order to achieve the goal of sustainable business practices. This study therefore proposes a new kind of leadership, called conscious leadership. The main contribution of the study is to increase the achievement of sustainable business practices by investigating the importance of conscious leadership in achieving this objective. Convenience sampling was used to select senior managers and directors from mainly JSE listed companies. This resulted in a total of 371 usable questionnaires (317 from listed companies and 54 from unlisted companies) being received. A quantitative approach was adopted to investigate whether conscious leadership would be related to increased sustainability competencies and more effective sustainability-related corporate governance and whether these in turn would increase sustainability behaviours which would generate sustainable business practices as measured by financial, social and environmental performance. Regression analyses were conducted to investigate the hypothesised relationships among these variables. Pearson correlations and descriptive statistics were also calculated. The empirical results showed that respondents in this study regarded conscious leadership, not as a separate construct, but as a way they governed their businesses. The empirical results showed that corporate governance and systems thinking competency had a strong interactive relationship and should therefore be cultivated within business firms. Corporate governance (including conscious leadership) and systems-thinking competency were positive influencers of employee relations, equal opportunities and workforce diversity. The empirical results however showed that corporate governance (including conscious leadership) had a negative influence on profitability. The present study cannot argue for the discouragement of corporate governance (including conscious leadership), as measured in this study, because reduced corporate governance would decrease healthy employee relations and the latter would decrease the achievement of equal opportunities and workforce diversity in these firms. A decrease in healthy employee relations would decrease profitability. The most important finding of this study is that senior managers and directors of big business firms, mostly JSE-listed companies, regarded conscious leadership as an important part of corporate governance. Corporate governance that includes conscious leadership must be developed to higher levels in business firms, so that the negative and not-significant relationships to profitability as viewed by lower and high conscious leaders respectively can be changed to positive relationships

Impact of transformational leadership mediated by self-efficacy on employee innovation in the South African local government sector.

Masters Degree. University of KwaZulu-Natal, Durban.The study investigated the impact of transformational leadership as a ‘predictor variable’ on employee innovation ‘predicted variable’. The relationship is mediated by self-efficacy. Studying these variables in isolation is helpful but the challenge is posed by limited resources especially when employee innovation has been identified as an imperative to organizational strategy and a desired positive organizational behaviour. Municipalities will know which predictor variable to primarily focus on in order to enhance innovation. In the previous study conducted by the researcher involving leader member exchange (LMX), self-efficacy and employee innovation, the statistical results from the regressions revealed an R square of .20. This showed that LMX and self-efficacy only had a 20% effect on employee innovation. It indicated that 80% of employee innovation is explained by other constructs hence the inclusion of transformational leadership as one of the predictor variables (Msweli, 2015). The study further recommended examining different predictor variables for future research. A random sample of 141 employees from Mandeni Municipality and the City of Umhlathuze was used in this study. A cross-sectional design was adopted. The analysis included the correlation and regression analysis which examined in isolation the relationships of transformational leadership with self-efficacy, self-efficacy with employee innovation, transformational leadership with employee innovation and finally all three constructs combined. Regressions were also used to examine the main relationship model of transformational, employee innovation with self-efficacy as a mediator. The research findings provide leaders in the South African local government sector with an understanding of the relationship of the constructs. They will also contribute to the body of knowledge by furnishing a better insight with regards to the impact of transformational leadership on employee innovation. Primarily, it provides a prototype that clarifies the relationship of transformational leadership, work self-efficacy with employee innovation in the South African local government context

A gender perspective on entrepreneurial leadership:female leaders in Kazakhstan

The paper proposes a conceptual model to understand female entrepreneurial leadership through an exploration of the perceptions and experiences of women entrepreneurs within their leadership roles. The paper addresses an existing knowledge gap on entrepreneurial leadership by bringing together three key constructs of gender, leadership and entrepreneurship. We apply Stewart's model of role demands-constraints-choices (DCC) to women entrepreneurs in Kazakhstan in order to understand their perceptions of the demands, constraints and choices they experience within their leadership roles. The results of in-depth interviews with women entrepreneurs present deeper conceptualization of their leadership enactment as a co-developing, co-constructed relational activity between leaders and others in their wider business environments and context

Organisational structure and management style : perceived effects on employee productivity at an urban university

Abstract: Cost pressures at universities, brought on by declining levels of subsidies in real terms, above inflation wage increases, as well as a volatile rand-dollar exchange rate, have resulted in a renewed quest for efficiency gains. While various cost containment measures have been pursued by universities, employee productivity has not received the same level of attention. Despite a number of studies having investigated the effects of an organisational structure and management style on employee productivity, a gap in literature exists in the context of South African universities. This holds especially true for the administrative, non-academic, part of universities. This study was qualitative in nature, taking the form of a case study, utilising semi-structured face-to-face interviews and direct observation. Twenty-five interviews were conducted at a Student Enrolment Centre at an urban university in Gauteng. Data was analysed by means of content analysis. Results indicated that the prevailing centralised structure and autocratic management style is perceived to negatively affect employee productivity, due to a lack of communication and low motivational levels. The findings assist universities and industry to improve employee productivity by making changes to structure and managerial style

Exploring communication challenges due to language and cultural diversity on South African construction sites

Communication can be traced to, among others, an individual’s language and cultural background. These aspects play a fundamental role in ensuring effective communication. Literature surveys show that language and culture have contributed to ineffective communication, giving rise to a wide range of problems in the construction industry. These problems include an increase in rework and poor product quality, and low employee morale. Given the multicultural environment in which construction activities occur in South Africa, communication can potentially dictate the extent of project performance. In order to explore the impact of this phenomenon, a survey was undertaken among general workers and site managers employed by five general contractors (GCs) in the Eastern Cape province of South Africa. Salient findings include that communication problems occur on construction sites due to language and cultural diversity-related barriers; site managers are generally effective at communicating; the South African workforce is diversely cultured, which potentially leads to misunderstandings on sites, and language barriers between site management and site workers impede performance improvement

A critical analysis of organisational justice in the South African financial service industry

Organisational justice has captured the interest of scholars in recent years since it is associated with the perceptions and reactions of an individual, to the presence of fairness in an organisation. It thus captures what an individual feel or evaluates to be, morally correct rather than viewing it to be something prescriptive. This study was aimed at investigating the extent of organisational justice on organisational citizenship behaviour, ethical behaviour and employee retention in the South African financial services industry. A hypothetical model and measuring instrument was developed in order to investigate factors that may influence the organisational justice in the financial services industry. Six independent variables (trustworthiness of management, employee engagement, reward system, organisational transparency, two-way communication and organisational climate) were identified as variables that have the potential to influence organisational justice (mediating variable). It was also hypothesised that organisational justice) has the potential to affect the dependent variables (organisational citizenship behaviour, ethical behaviour and employee retention). Furthermore, nine null-hypotheses were developed to test the relationship between independent, mediating and dependent variables. All these variables were clearly defined and operationalised with various items that were obtained from other measuring instruments or self-developed items. A quantitative research approach followed. This study made use of the non-probability sampling technique, specifically convenient and judgemental sampling, as there is no data base of financial services firms available in South Africa. A purposive sample of 800 respondents was drawn from four provinces in South Africa. Factor and regression analyses were used to test the significance of the relationship between the various independent and dependent variables. The mediating variable of organisational justice was viewed by respondents as a two-dimensional construct, namely procedural-interactional justice and distributive justice. Consequently, intrinsic rewards, extrinsic rewards, organisational transparency and organisational climate were identified as independent variables that could have an impact on the procedural-interactional justice to predict organisational citizenship behaviour and reputable employee retention in the financial services industry. No relationships were identified between trustworthiness of management and employee engagement and procedural-interactional justice. The independent variables, trustworthiness of management, extrinsic rewards and organisational climate, could have an impact on distributive justice to predict organisational citizenship behaviour and reputable employee retention in the financial services industry. No relationships were identified between employee engagement, intrinsic rewards, organisational transparency and distributive justice. The findings of this study have contributed to the body of knowledge in the financial services literature in South Africa, by developing a theoretical model and a measuring instrument of organisational justice in the financial services industry. The antecedents of organisational justice in the financial services industry are not well documented in literature and findings of this study could thus contribute towards closing this gap in literature. The findings of this study could also inform policy formulation to assist with the implementation of organisational justice programmes in the financial services industry. This study provided useful and very practical guidelines to organisations in order to ensure the effective strategising and management of OJ that could enhance their local and global competitiveness and long-term survival