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ISSN : (Online) ISSN 1750 4562 (Print) ISSN 1750 4554
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This final issue of 2017 brings together six papers that tackle the turbulence in the African Business and Economic environment from discussions revolving around the subject of weak institutions (Ayadi, Williams, Desselle and Hyman; El Ebrashi and Abdel Aziz, this issue), to public-sector management challenges (Amoako, Okpattah, Gameti and Attasitsey; Modise and Rambe, this issue), and the role of ethical leadership (Kirsten, Wordsworth and Du Plessis ; Grobler, this issue).
Starting with the first set of two papers, Ayadi et al., set out to highlight how weak institutional environments accentuate macroeconomic performance. The study examines the relationship between a measure of sustainability and the components of the Country Policy and Institutional Assessment (CPIA) launched in Nigeria in 2004. The results show that genuine savings was not positively correlated with any of the components of CPIA. Therefore, the establishment of oil funds in Nigeria has not yielded positive results in terms of sustainability due to the inherent institutional weaknesses prevalent in the country. In the second paper, El Ebrashi and Abdel Aziz, argue that Multinational corporations identify various profitable opportunities in subsistence and Bottom of the Pyramid (BOP) markets, due to continuous population growth and changing lifestyles. These authors went on to posit that MNCs experience institutional voids in BOP markets, such as the lack of qualified labor, poor infrastructure, the inability to access quality suppliers. In order to tap into those opportunities, MNCs choose to tackle such institutional voids by integrating the BOP population into their value chains to access local experience and knowledge in partnerships. The focus of the study is on Egypt using a multiple case study research protocol involving four companies in the Fast-Moving Consumer Goods sector.
The next set of two papers focusing on public sector organisations, take the perspective of two of the dominant (in business and economic terms) regions – i.e. West Africa (notably Ghana – albeit smaller than the sub-regional giant, Nigeria) and South Africa. In the case of Ghana, Amoako et al., in the third paper in this issue, explored why state-owned enterprises embark upon rebranding strategies, and why such strategies have been met with disdain, particularly in Ghana where stakeholders and other commentators question the rationale for such strategies; labelling them as needless and wasteful due to the high associated financial implications. Using the 2010-2012 re-branding exercise undertaken by Ghana Oil Company in the petroleum downstream sector of Ghana as a case illustration, the impact of rebranding on firm performance is assessed through investment in employees and brand equity. In the fourth paper on a South African public sector organisation, Modise and Rambe investigated the influence of locus of control of the engineering workforce on improved job performance the high-risk, high-voltage environments within which Eskom Bloemfontein engineering workforce (engineers, technologists, and technicians) is exposed to in the design, installation and maintenance of coal-fired power plants, sub-stations, transmission lines and electrical equipment, their psychological dispositions especially locus of control (LOC) should be an interesting area of research interest. The proposed measures for eliminating power related risks, accidents and deaths emanating from work-related fatigue, job stress and exhaustion. Organisational performance is at the centre of the debate. The results demonstrate a positive relationship between internal locus of control and job performance. It also demonstrates that a sizable number of the Eskom engineering workforce are easily influenced by external forces, with implications for the job performance of the engineering workforce.
The final set of two papers take the conversation towards ethical leadership and the role this may play in ensuring longevity of the African business environment. Interestingly both of these papers were from the South African context. Consequently, in our fifth paper in this issue, Kirsten, Wordsworth and du Plessis posit that much research has gone into establishing the nature of ethics initiatives adopted by organisations in an attempt to enhance ethical behaviour. Less attention, however, has been given to the actual efficacy and impact of such initiatives. The authors sought to address this gap directly, utilising cluster analysis to investigate the combined effects of various ethics initiatives on levels of observed unethical behaviour and the propensity to report such behaviour. Significant differences were found to exist between clusters with respect to level and type of observed unethical conduct, and whether or not this behaviour was reported. Contrary to expectations, the findings reveal that the strength of an organisation’s ethics management programme does not ensure lower rates of observed unethical behaviour. It is argued that the quality, rather than the quantity, of ethics initiatives determines the overall impact of ethics management programmes. Emphasis is placed on highlighting the role of ethics training, over and above other initiatives such as ethical codes, ethics support and rewarding ethical behaviour. Sticking with the discourse of ethical leadership, and management programmes, the measurement of success and/ or failure, need to be exploited, and clearly re-articulated. Considering this imperative, the sixth, and final paper in this issue, sought to explore the construct validity of an Ethical Leadership Questionnaire. In this final paper, Grobler investigated the subject from what he describes as an “etic” position. A representative sample of the South African workforce was used in the study. According to him, “the results confirmed the factorial composition of ethical leadership in terms of three elements [morality and fairness; role clarification; and power sharing leadership].”
Overall the six papers that make up this issue have highlighted some key areas requiring further theoretical exploration with the attendant managerial and/ or policy implications that would inform accountability at various levels – institutional (governmental and public sector) as well as ethical leadership in both the public and private sectors in sub-Saharan Africa.