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Journal for Development and Leadership 1 2 Journal for Development and Leadership JOURNAL FOR DEVELOPMENT AND LEADERSHIP (JDL) Faculty of Business and Economic Sciences Nelson Mandela Metropolitan University Port Elizabeth Eastern Cape, South Africa Tel: +27(41) 504 4607I2906 Electronic Mail: [email protected] [email protected] Web Address: http://jdl.nmmu.ac.za EDITORIAL COMMITTEE Editor-in-chief and Chairperson of the Editorial Committee Prof. H.R. Lloyd Managing Editor Prof. R. Haines Consulting Editor: Academic Standards Prof. C.V.R. Wait Consulting Editors: Future Studies Prof. K. Jonker Prof. C. Adendorff Consulting Editor: Ethics Prof. C. Rootman Consulting Editors: Management Sciences Prof. M. Tait Prof. E. Venter Consulting Editors: Industrial Psychology and Human Dr M. Mey Resources Management Prof. R. van Niekerk ConsultingEditor: Business School Prof. C. Arnolds Consulting Editors: Economics, Development and Tourism Prof. P. le Roux Prof. R. Ncwadi Prof. J. Cherry Mr H.H. Bartis Consulting Editors: Accountancy Prof. H. Fourie Editorial Co-ordinator Prof. I.W. Ferreira Administrative and Logistics Co-ordinator Mrs R. Petrakis Journal for Development and Leadership 3 JOURNAL FOR DEVELOPMENT AND LEADERSHIP Faculty of Business and Economic Sciences Nelson Mandela Metropolitan University Volume 4, Number 1, June 2015 Journal for Development and Leadership First Publication 2012 ©Nelson Mandela Metropolitan University ISSN: 2226-0102 Printed and bound by: Bukani Print, Port Elizabeth, South Africa 4 Journal for Development and Leadership NATIONAL AND INTERNATIONAL EDITORIAL BOARD SURNAME AND TITLE AFFILIATION CONTACT DETAILS INITIALS Prof Allais, C. University of South Africa (UNISA) [email protected] Prof Allegrini, M. University di Pisa, Italy [email protected] Prof Bank, L. University of Fort Hare [email protected] Prof Barac, K. University of Pretoria [email protected] Prof Bayat, M.S. University of Zambia/University of Fort Hare [email protected] Dr Bermingham, J. IDC and Highline Community College [email protected] Prof Biesmans, F. Lorraine University, France [email protected] Prof Binza, M. Cape Peninsula University of Technology [email protected] Prof Bradshaw, G. Nelson Mandela Metropolitan University [email protected] (NMMU), Port Elizabeth, South Africa Prof Burnaby, P. Bently College, Massachusetts, USA [email protected] A/Prof Bushney, M. University of South Africa (UNISA) [email protected] Prof Calitz, A. Nelson Mandela Metropolitan University andré[email protected] (NMMU), Port Elizabeth, South Africa Prof Coetzee, G.P. Tshwane University of Technology [email protected] Prof Cooper, B.J. Deakin University, Melbourne, Australia [email protected] Prof Cording, M. Rice University, Houston, Texas [email protected] Dr Davids, G. University of the Western Cape [email protected] Dr De Jager, M. Institute for People Development [email protected] Prof Dorfling, N. Nelson Mandela Metropolitan University [email protected] (NMMU), Port Elizabeth, South Africa Prof Dunne, P. University of West England, UK [email protected] Dr Erasmus, L. Tshwane University [email protected] Prof Fine, B. Birkbeck College, London University [email protected] Prof Hass, S. Simmons College, Boston, Massachusetts, USA [email protected] Dr Ismail, N. Parliament, Cape Town, South Africa [email protected] Prof Jackson, T. Middlesex University, UK [email protected] Prof Kaczynsksi, V. University of Washington and Warsaw [email protected] School of Economics Dr Ketshabile, L. University of Botswana [email protected] Prof Kumaran, M. University of Florida, USA [email protected] Prof Leung, P. Deakin University, Melbourne, Australia [email protected] Prof Lynch, C.E. University of Texas, USA [email protected] Prof Lynch, T.D. Louisiana State University, USA [email protected] Dr Meyer, M. SABPP [email protected] Prof Miller, M. University of Washington, USA [email protected] Prof Minkley, G. University of Fort Hare [email protected] Dr Mouchili, I. Coega IDZ [email protected] Prof Naylor, L. University of Baltimore, USA [email protected] Prof Noon, D. Coventry University, UK [email protected] Dr Ntonzima, L. Cape Peninsula University of Technology [email protected] Prof Parsons, R North West University [email protected] Dr Plant, K. University of Pretoria [email protected] Dr Robino, C. IDRC, Latin America [email protected] Prof Sadler, E. University of South Africa (UNISA) [email protected] Prof Sarens, G. Louvian School of Management (IAG), Belgium [email protected] Ms Steyn, B. Monash University (South Africa) [email protected] Prof Emer. Tummala, Krishna K. Kansas State University, USA [email protected] Dr Van der Nest, D.P. Tswane University of Technology [email protected] Prof Van Staden, M. University of South Africa (UNISA) [email protected] Prof Wissink, H.F. University of KwaZulu-Natal [email protected] Prof Wood, G. Sheffield University, UK g.t.woodsheffield.ac.uk Journal for Development and Leadership 5 CONTENTS OPINION PIECE Development and leadership through broadening the concept of marketing 1 N.K. Malhotra ARTICLES Factors influencing loan repayment by small-scale enterprises in developing 4 countries N.G. Kiliswa and M.S. Bayat Internal controls and financial performance of banks in Uganda. 17 Case study: Post Bank Uganda B. Sempebwa, R. Kyagulanyi and M.K. Nimusiima Capital markets and financial resource mobilisation in developing 33 countries: The case for EAC economies F. Mayanja and D. Sekiwu Enabling performance measures for an effective and efficient public 48 service delivery: The case of South Africa’s local sphere of government Z. Ndevu Leadership crisis in Africa: Contextualising African leaders’ avarice 62 regarding power B. Mngomezulu An econometric analysis of the impact of local business service centres on 75 small, medium and micro enterprises in the Eastern Cape, South Africa R. Ncwadi British polity in selected British novels 97 K.K. Tummala Journalism vs. public relations: Situation analysis 114 V. Kaul BOOK REVIEW 129 M.R. Mey and K. Weatherall-Thomas JOURNAL POLICIES 132 6 Journal for Development and Leadership Journal for Development and Leadership 1 DEVELOPMENT AND LEADERSHIP THROUGH BROADENING THE CONCEPT OF MARKETING N.K. Malhotra1 Marketing, both as a discipline and a practice, has become increasingly important in the current business environment. The factors driving its importance include globalisation, technology and competition. However, for marketing to realise its potential, the concept must be broadened to address the larger issues and current and future problems. I argue that an important aspect of broadening is that marketing should address the needs of the underprivileged and the disadvantaged in an effort to raise their living standard. This is not only altruistic, but also good business, since it will build goodwill, resulting in enhanced customer equity, brand equity, and firm equity. The American Marketing Association (AMA) defines marketing as follows: “Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” Although the AMA recently enlarged its definition of marketing, it needs further enlargement, which can be achieved by taking a broader view of “offerings,” traditionally known as the product. A broad view is that a product is anything that can be offered to anyone (customers and noncustomers) for attention, acquisition or consumption. It includes goods, ideas, services, personalities, places and organisations. Taking a broad view of what a product is means that marketing concepts can be applied to virtually anyone, anything, or any situation. The definition of a customer also needs to be enlarged to include other customer groups, in addition to those mentioned in the AMA’s recent definition. Traditionally, customers as consumers have been the focus of marketing. However, there are other customer groups, including intermediate customers (e.g. retailers, wholesalers), suppliers, employees, shareholders, governments, the underprivileged and disadvantaged segments of society, and the public at large. The Internet and social media have empowered ultimate consumers, making it even more important for marketers to attend to them. For example, Delta Airlines recently charged American military personnel returning home after active duty overseas excess baggage fees. There was such a hue and cry in the social media that Delta apologised and refunded the fees. In the USA and South Africa, the failure of local government to attend to citizen complaints about poor service delivery or high municipal taxes has prompted demonstrations and public activism. The following example illustrates why marketers must take intermediate customers’ interests to heart. Fast food restaurants dispense a high volume of soft drinks. A few years ago, PepsiCo bought several fast food chains, including KFC, Pizza Hut and Taco Bell, so that it would have a captive market for its soft drinks. Coca-Cola considered similar acquisitions, but decided not to do so. Coca-Cola’s decision was guided by the fact that fast food restaurants are a very important part of its channel and therefore an important customer group, and one does not compete with one’s customers. Which company made