Introducing the composite business success index: Enhancing small and medium enterprise competitiveness in South Africa
Acta Commercii
| Field | Value | |
| Title | Introducing the composite business success index: Enhancing small and medium enterprise competitiveness in South Africa | |
| Creator | Jacobs, Donovan M. Kabaso, Boniface | |
| Description | Orientation: This study explored the composite business success index (CBSI), a novel framework designed to enhance small and medium enterprise (SME) competitiveness in South Africa by integrating financial and cultural metrics.Research purpose: The aim was to introduce CBSI as a tool for assessing small and medium enterprise performance, combining financial indicators like the cash conversion cycle (CCC) and Altman Z-score with cultural metrics such as the Configurational Accuracy Score for a more holistic evaluation.Motivation for the study: Small and medium enterprises in South Africa face significant challenges, including financial instability and misalignment of organisational culture. Existing performance models often fail to address these non-financial factors, which CBSI integrates into one evaluative tool to improve both financial health and cultural alignment.Research design, approach and method: A pragmatist research approach integrated quantitative and qualitative methodologies, including financial data from small and medium enterprise statements, semi-structured interviews with small and medium enterprise owners and experts and questionnaires to collect cultural data for insight into the role of culture in small and medium enterprise success.Main findings: Composite Business Success Index proved effective in predicting small and medium enterprise performance. Higher CBSI scores ( 0.65) were associated with successful small and medium enterprises, while lower scores ( 0.50) indicated areas for improvement, highlighting the link between financial stability and organisational alignment.Practical/managerial implications: The CBSI offers small and medium enterprise leaders actionable insights for enhancing financial performance and organisational culture, boosting competitiveness and long-term sustainability.Contribution/value-add: By integrating both financial and cultural metrics into a single framework, the CBSI provides a novel tool for assessing and developing small and medium enterprise performance for the small and medium enterprise managers. | |
| Publisher | AOSIS | |
| Date | 2025-06-05 | |
| Identifier | 10.4102/ac.v25i1.1328 | |
| Source | Acta Commercii; Vol 25, No 1 (2025); 14 pages 1684-1999 2413-1903 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://actacommercii.co.za/index.php/acta/article/view/1328/2648
https://actacommercii.co.za/index.php/acta/article/view/1328/2649
https://actacommercii.co.za/index.php/acta/article/view/1328/2650
https://actacommercii.co.za/index.php/acta/article/view/1328/2651
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