Search

In the realm of demarketing within the banking industry, banks often need to reject customers for certain products while maintaining overall relationships. Understanding the interplay of satisfaction, trust, and commitment is crucial in this delicate dance. This study, grounded in the commitment-trust theory of relationship marketing, investigates how these factors predict customer loyalty in demarketing situations. Using a quantitative approach with an experimental design, the study employed a vignette followed by a survey to gather data. A total of 505 responses were analyzed through Structural Equation Modelling. The findings indicate support for four hypotheses while two were rejected. Satisfaction had a positive but weak and marginally significant effect on commitment and a very strong, highly significant positive effect on trust. Conversely, satisfaction had no significant direct effect on loyalty. Trust demonstrated a significant positive effect on commitment but no direct impact on loyalty. Commitment, however, showed a very strong and highly significant positive effect on loyalty. Commitment and trust also played key roles as mediators in the relationship between satisfaction and loyalty. The study provides valuable insights for firms navigating demarketing scenarios, aiming to foster stronger and more enduring customer relationships.

Purpose: As elsewhere in the world, family firms (FFs) play a critical role in the South African economy. There is, however, scant research on how, if at all, listed South African FFs differ from their non-family counterparts concerning board composition and independence. The purpose of this study was to address this knowledge gap by investigating director and chair independence, chair-chief executive officer (CEO) role duality, board race and gender diversity, as well as board rotation at FFs listed on the Johannesburg Stock Exchange (JSE) over the period 2006 to 2022. The study was informed by the agency, socioemotional wealth, and stewardship theories. Design/methodology/approach: Data were collected on 753 directors who served on the boards of 37 JSE-listed FFs. Data sources included Bloomberg and the FFs’ integrated reports and websites. Data were analysed by examining trends in the considered variables over time. Findings/results: While family involvement at board level remained relatively constant, considerably fewer family members served as board chairs and CEOs towards the end of the research period. Board independence increased significantly over the research period. Practical implications: Shareholder activists’ requests for improved board governance of JSE-listed FFs seem justified. Activists should, however, also consider the benefits of family stewardship when evaluating director and chair independence in these firms. This study also identifies practical implications for nomination committees and investor education. Originality/value: The use of multiple theoretical lenses provides a balanced view of board governance at JSE-listed FFs. The study contributes to the scant body of knowledge on board composition and independence in listed FFs in South Africa, which will enable future FF research.

No abstract available.

Purpose: To identify the business values underlying the strategic decisions of indigenous black South African (IBSA) family businesses and to explore a possible relationship between these values and business outcomes. Design/methodology/approach: The study adopted a qualitative methodological approach and utilised seven IBSA family business cases. Data were collected from 17 selected participants using semi-structured interviews. The reflexive thematic analysis method was used to analyse the data transcripts. Findings/results: Ten business values were identified as underlying the strategic decisions of IBSA family businesses, namely customer focus, innovation and creativity, business traditions, continuous learning, employee empowerment and development, open communication, business sustainability, teamwork, partnerships and business reputation. These values are considered a strategic resource because they influence the strategic business decisions made and ultimately contribute to the business outcomes and long-term survival of the family business. Practical implications: The study provides insights into the relationship between business values, strategic decisions and business outcomes in the context of IBSA family businesses. Therefore, family business owners and leaders should ensure that behaviours, actions and strategic decisions are aligned to their business values so that these values can serve as the strategic resource that scholars claim they are. Originality/value: While several studies on values have been conducted in European or Western contexts, this study provides insights into the possible relationship between business values, strategic decisions and business outcomes from an indigenous African family business perspective.

Orientation: Good strategic decision-making (SDM) is vital for continuous long-term business performance and sustainability. Research purpose: This study aimed to determine the influencing factors of SDM in small-, medium- and micro-enterprises (SMMEs) and how they relate to each other. Motivation for the study: Strategic decision-making literature for SMMEs is underrepresented, particularly in South Africa. This article addressed this gap by investigating these factors, thereby improving the current understanding of SDM and enhancing environmental scanning and effective SDM in SMMEs. Research design, approach, and method: A qualitative approach was adopted, implementing the interactive qualitative analysis (IQA) research technique involving a focus group session and interviews. Themes where identified through inductive and deductive coding. A total of 13 SMME owners participated in the study. Main findings: The main findings identified five categories of influencing factors, namely Risk, SMEracter, Operations, Limitations and/or Opportunities and/or Rewards. The sub-themes highlighted unique influencing factors such as ‘fuzzy feel good’, financial potential, time, capacity, core of the entity and ‘engine’. The findings also highlight how the five categories of influencing factors relate to each other in the SDM context. Practical/managerial implications: The findings provide SMME managers and/or owners with insight into that which influences their SDM, and how these factors relate to each other. Such knowledge improves SDM, environmental scanning, and assists in identifying how to mitigate influencing factors during SDM. Contribution/value-add: This article makes a theoretical contribution by providing additional insights pertaining to the influencing factors of SDM in SMME, and how they relate to each other, adding to the body of knowledge related to SDM in SMME.