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Developing a Model to Measure Business Performance for Private Business Schools

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Developing a Model to Measure Business Performance for Private Business Schools Developing a model to measure business performance for private business schools R. Asvat Orcid.org 0000-0002-2545-3001 Thesis submitted in fulfilment of the requirements for the degree Doctor of Philosophy in Business Administration at the North-West University Promoter: Prof CA Bisschoff Co-Promotor: Prof CJ Botha Graduation September 2018 Student number: 25495577 ABSTRACT The South African public post-school education system is not able to absorb the increased in demand and this is an opportunity for private higher education institutions to assist and fill the skills gap. To do so private higher education institutions need a better understanding of the business environment and its role-players. Hence the primary objective of this study is to build a conceptual model to measure the business performance of a private higher education institution in South Africa. This study investigated the business performance measures that impact on a private higher education institution in South Africa. This study aims to analyse the higher education sector in South Africa and provide a basis to develop a model that would be relevant so that a private higher education institution can roll out this model to ensure successful business performance and ultimately ensure growth and sustainability. The study starts by reviewing the literature on higher education and private higher education in order to establish a broad theoretical framework to guide this study. After statistically ensuring that the respective theoretical measuring criteria selected do actually measure the specific business performance antecedents, the paper then presents a model to measure business performance in private higher education in South Africa. The final model has a total of fifteen business performance antecedents. These are: Sales, Growth, Profitability, Technology, Customer, Innovation, Service, Leadership, Return on investment, Stakeholders, Society, Quality, Marketing, Communication, Legality, and General measures of business performance. The study further established the reliability of each antecedent, measured in total by 85 criteria. A total of 250 questionnaires were distributed of which 247 were completed by private business school supervisors and managers and returned, signifying an effective response rate of 98.8%. Using a five-point Likert scale, the questionnaires were analysed and identified ten latent variables (or factors) using exploratory factor analysis explaining a cumulative variance 70.56%. They are Regulatory compliance, Strategic communication, Educational technology stack, Strategic finance, Organisational Development, Customer orientation, Sales, Pricing, Socio political influence and Market focus. The study also succeeded to simplify measuring performance by eliminating 26 questions with low factor loadings (<0.40) or those with strong dual-loadings from the questionnaire while retaining satisfactory reliability (Cronbach alpha 0.974), sample adequacy (0.926) and variance explained. Due to the lack of studies in this regard in South Africa, the literature study as well as the efforts undertaken in this research study could provide valuable insights and basis to suggest a conceptual model that could measure business performance in private higher education. It is envisaged that this research contributes to this area of study and also make a limited contribution to the body of knowledge of business performance with particular reference to developing a model to measure business performance in private higher education in South Africa. In so doing the study contributes to discourse in higher education as well as private higher education within the politically charged South African context as well as providing managerial and business insights. The results of this study are of value to business school directors and managers as well as investors in private higher education to determine the business performance antecedents that lead to a successful private higher education institution. It is also of value to researchers and scholars who intend to further explore this avenue of business performance models. Key terms: business performance, private higher education, higher education, performance, management, model, measurement iii ACKNOWLEDGEMENTS First and foremost, I thank the Almighty for providing me with the opportunity, courage, and ability to undertake this research project. I wish to convey my sincerest appreciation and gratitude to Professors Christo Bisschoff and Christoff Botha, for the patience, guidance and advice. The profound impact that this has had on my life both academically and personally is immensely appreciated. Further the academic and professional expertise was invaluable to ensure that I completed this research project successfully. I wish to express my appreciation to Mrs. Antoinette Bisschoff for encouragement and guidance with regards to the quality of the research as well as the language and technical editing of the research. Also, to acknowledged the critical role and support from the Statistical Consultation Services Department at North-West University in order to complete this research project. I am grateful to Dr Ahmed Shaikh for his guidance and support to complete my PhD programme. As well as to Dr Zaheer Abdul Hamid for his encouragement and assistance in completing my research project. My sincerest gratitude to Professor Yusuf Karodia for his passionate encouragement during the PhD programme. Your support and desire to see people around you to succeed is applauded. Thank you and much appreciated and my you always be blessed with the best. Thank you to the colleagues and friends from REGENT Business School (RBS) and Management College of Southern Africa (MANCOSA) for all the encouragement, support and assistance during the research project. To the respondents who completed and participated in the research project by completing the questionnaires and responding to questions a heartfelt thank you as without you this research project would not have been possible. iv Finally, I am deeply indebted to my family and wish to thank my wife Shenaaz, my son Muhammad and daughter Ammaarah for allowing me the time and space to complete my PhD, and for all the sacrifices as well as the encouragement and support during my journey. To my mother and brothers and sister thank you for all the encouragement and unconditional support. May the Almighty’s blessings and goodness be showered upon you all. v TABLE OF CONTENTS ABSTRACT .......................................................................................................................... ii ACKNOWLEDGEMENTS ................................................................................................... iv LIST OF FIGURES .............................................................................................................. xi LIST OF TABLES .............................................................................................................. xii LIST OF ABBREVIATIONS .............................................................................................. xiii CHAPTER 1 ....................................................................................................................... 14 NATURE AND SCOPE OF THE STUDY ........................................................................... 14 1.1 INTRODUCTION ................................................................................................ 14 1.2 PROBLEM STATEMENT .................................................................................. 18 1. 3 RESEARCH OBJECTIVES ............................................................................... 20 1.3.1 Primary objective ............................................................................................. 20 1.3.2 Secondary objectives ...................................................................................... 20 1.4 RESEARCH METHODOLOGY .......................................................................... 20 1.4.1 Literature base ................................................................................................. 20 1.4.2 Qualitative refinement of the antecedents ..................................................... 21 1.4.3 Quantitative data collection ............................................................................ 22 1.4.4 Statistical analysis ........................................................................................... 22 1.4.5 Ethical considerations ..................................................................................... 24 1.5 LAYOUT OF THE STUDY ................................................................................. 24 1.5.1 Approval of the study programme .................................................................. 24 1.5.2 Chapter layout of the study ............................................................................. 25 1.6 CONTRIBUTION OF THE STUDY .................................................................... 26 1.7 LIMITATIONS OF THE RESEARCH ................................................................. 27 1.8 SUMMARY ......................................................................................................... 27 vi CHAPTER 2 ....................................................................................................................... 29 ARTICLE 1: ........................................................................................................................ 29 AN ANALYSIS
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