THE IMPACT OF BUSINESS TRANSFORMATION ON THE PROVISION OF PRODUCTS AND SERVICES IN OPERATIONAL-LEVEL RETAIL BUSINESSES:  CASE STUDY

Xolani Protus Simamane; Robert Walter Dumisani Zondo

doi:10.12955/cbup.v5.978

Xolani Protus Simamane Durban University of Technology, Faculty of Management Sciences, Durban
Robert Walter Dumisani Zondo Durban University of Technology, Faculty of Management Sciences, Durban

DOI: https://doi.org/10.12955/cbup.v5.978

Keywords: business transformation, employee motivation, financial performance, retail, products and services

Abstract

The retail industry is arguably one of the most prosperous sectors in the global economy. It serves as an intermediary between producers and consumers. Given its significance in the everyday lives of people in communities, and its role in national economies, the industry operates under extensive competition driven by growth in Information Technology which has dramatically changed the consumption patterns and buying behavior of consumers today. This study investigates the impact of transformation on the provision of products and services in operational-level retail businesses of KwaZulu-Natal (KZN). This is a case study and the South African Post Office (SAPO) in KwaZulu-Natal (KZN) participated in the study. Of the 101 branch managers of SAPO, 72 participated in the study, representing a 71 percent response rate. The sample frame was obtained from both the Human Capital and the Infrastructure Management departments of SAPO in KZN. Descriptive statistics and chi-square tests were used to analyze the two objectives. That is, to establish if the change brought about by business transformation activities improves the provision of products and services in retail businesses and thereby improves the financial performance. It also determines if retail businesses undergoing transformation inspire confidence amongst employees, and thereby achieving their financial goals. The findings revealed that business transformation has the ability to improve the provision of products and services of retail businesses. Continuous communication with regards to transformation inspires confidence among employees, thereby leading to productivity improvements and the achievement of the organizational goals. Productive employees contribute positively to the financial performance of the business. The original value of this study is its approach in uncovering strengths and weaknesses of business transformation in the operational-level retail businesses.

References

Aberdeen Group. (2012). Service excellence and the path to business transformation. Journal of analyst insight (online), 54(2): 34-37. Available www: http://www.arbedeen.com (Accessed 30 October 2013).

Brüggen, E. C., Foubert, B. and Glemler, D. (2011). Extreme makeover: short and long term effects of a remodelled servicescape. Journal of marketing, 75(2): 71-87.

Dagger. S. and Danaher, P. J. (2014). Comparing the effect of store remodelling on new and existing customers. Journal of marketing, 78(62): 62-80.

Fisher, E. A. 2005. Facing the challenges of outcome measurement: the role of transformation leadership. Administration in social work, 29(4).

Higuera, V. 2010. Loss due to unmotivated employees (online). Available: http://www.smallbusiness.chron.com/ managing employees (Accessed 14 June 2014).

Huddleston, P. and Good, L. (1999). Job motivators in Russian and Polish retail. International journal of retail and distribution management, 27(9): 383-93.

Kanfer, R., Chen, G., and Pritchard, R. D. (2008). Work motivation: past, present and future (online). Available: http://www.psychology.gatetech.edu (Accessed 23 October 2014).

Kumar, S. (2011). Motivating employee: An exploratory study on knowledge workers. South Asian journal of management, 3(2): 18-27.

Liao, H and Chuang, A. (2007). Transforming service employees and climate: a multi-level multi-source examination of transformational leadership in building long-term service relationships. Journal of applied psychology, 92(4): 1006-1019.

McGregor, J. (2009). When service means survival (online) .Available: http:// www.businessweek.com/magazine/toc/09.../B4121customer_service (Accessed 12 August 2014).

Mishra, S. and Gupta, B. (2009). Work place motivators and employees satisfaction: Study of retail sector in India. The Indian journal of industrial relations, 44(3).

Nadiri, H. and Tümer M. (2009). Retail service quality and behavioral intentions (online).Available:http://www.ekonomiemanagement.cz/download/...78d0/10_nadiri_tumer (Accessed 01 November 2013).

Parfvonova, N. (2009). Employee motivation, performance and well-being: the role of managerial support for autonomy, competence and relatedness needs: The University of Western Ontario, London.

Sidikova, M. (2011).The impact of change on employees’ motivation. Doctor of philosophy, Turku University of Applied Sciences.

Simon, D. H., Gomez, M. I., McLaughlin, E. W. and Wittink, D. R. (2009). Employee attitudes, customer satisfaction, sales performance: assessing the linkages in US grocery store. Wiley InterScience, 30(2): 27-41.

Thurlow, A., Helms, J. and Mills, .S. (2009). Change talk and sense making. Journal of organizational change management, 22(3): 457-579.

Vlad, S. (2012). The motivation and ways of motivating the human resources: Best Western hotel central Arad. Annals of the university of Oradea, Economics science series, 21 (12):398-403.

Wang, B. 2006. Effects of dissatisfaction on customer repurchase ddecisions in e-commerce: an emotion based pperspective. Journal of electronic commerce research, 13(3): 224-237.

Weng, L. 2011. Superior service performance through transformational leadership. Asia Pacific management review, 16(2): 181-195.