The Strategic Implications of Black Empowerment in South Africa: A Case Study of Boundary Choice and Client Preferences in a Small Firm | Zendy

Willem H. Boshoff | Zendy

Open Access

The Strategic Implications of Black Empowerment in South Africa: A Case Study of Boundary Choice and Client Preferences in a Small Firm

Author(s) -

Willem H. Boshoff

Publication year - 2010

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.1576512

Subject(s) - empowerment , boundary (topology) , business , marketing , economics , economic growth , mathematics , mathematical analysis

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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