Original Research
The strategic implications of black empowerment policy in South Africa: a case study of boundary choice and client preferences in a small services firm
Submitted: 28 July 2010 | Published: 05 June 2012
About the author(s)
Willem H Boshoff, University of Stellenbosch, South AfricaFull Text:
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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.
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Crossref Citations
1. Black Economic Empowerment in South Africa: Challenges and Prospects
Elvin Shava
Journal of Economics and Behavioral Studies vol: 8 issue: 6(J) first page: 161 year: 2017
doi: 10.22610/jebs.v8i6(J).1490