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27 August 2019 | Story Valentino Ndaba | Photo Pierce van Heerden
Prof Brownhilder Neneh
Prof Brownhilder Neneh’s research paper was selected as Highly Commended in the 25th annual Emerald Literati Awards for Excellence.
Customer orientation is a firm strategic capability that enables businesses to identify opportunities that can be exploited to improve their performance outcomes. However, the gap between this capability and actual firm performance is quite wide when it comes to Small and Medium Enterprises (SMEs), possibly because of the limited resources to effectively utilise this capability. So what can be done to ensure that all businesses that have this capability benefit from it?

This is the question which a paper by Prof Brownhilder Neneh seeks to address. The article, titled Customer orientation and SME performance: the role of networking ties, was recently published in the African Journal of Economic and Management Studies. Both the theoretical weight and practical implications of the research led to the journal’s editorial team selecting the article as Highly Commended in the 2019 Emerald Literati Awards. 

Finding solutions to real-world problems 

Not only is Prof Neneh responsible for innovating the way she leads as the Head of the Business Management Department at the University of the Free State (UFS), but her goal is to also constantly impact the way problems are solved in the business world. “Growing up, I was always fascinated about entrepreneurial stories, how people start and grow their businesses. However, I later learned that businesses had a very high failure rate,” she says. 

“As such, given the significant role that entrepreneurship plays in economic growth and addressing socioeconomic issues in our societies, I became motivated to find evidence-based solutions that could be implemented by businesses to enhance their chances of success.”

Research goals

Prof Neneh says her outlook for the future is “to continue producing high-quality research that can make a meaningful impact in advancing both the theory and practice of entrepreneurship”.

Seeing that governments the world over are increasingly depending on entrepreneurship for economic growth and addressing most of the existing socioeconomic issues, evidence-based entrepreneurship is increasingly needed. For Prof Neneh, moving forward means continuing to channel focus in this area.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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