CONCEPTUAL MODEL

The literature study, in Chapter 3, describes the strategic decision process framework (as listed in Figure 3.3) and allows for the identification of core elements of strategic behaviour that are internal and external and includes market related, industry related, competitor related, supplier related, resource and capability related, and broader environmental related challenges. This set of factors varies from venture to venture and even within different ventures and within some ventures the process can vary across decisions which make an investigation in the strategic behaviour a very complex issue. Consequently, environmental and venture factors as well as decision-specific factors determine a wide range of decision process characteristics such as the duration of the process, the amount of political activity, the degree of comprehensiveness and rationality. In turn the decision process transforms itself into certain process outcomes, namely the timeliness or speed of the decision, the level of commitment within the venture team, and the extent of learning the venture owner displays.

An appropriate conceptual framework will therefore have to, in a satisfactory manner, make provision for the above mentioned factors. In terms of developing a conceptual framework, the following points are considered:

i. There is a dearth of information concerning SMMTEs in South Africa with regard to their exact number, classification and their general characteristics with no accurate and comprehensive database available, at the time of the research. The lack of information concerning SMMTEs is compounded by the fact that the tourism industry does not form a distinct economic sector, as indicated in Chapter 1, and consequently does not have a well developed statistical database. In the light of the relative newness of the SMMTEs in South Africa, the majority of these are in their initial stages of growth, and consequently most are not listed on bourses such as the Johannesburg Stock Exchange, making the access to quantifiable financial and business data for the purpose of research difficult.

ii. The research is hampered by the difficulty of measuring the success of SMMTEs as there

are varying interpretations as to what constitutes success; this has implication for the measurement of preferred strategic behaviour that will contribute toward successful SMMTEs.

It is assumed that the entrepreneur has a direct bearing on the strategic behaviour of the SMMTE and the consequences thereof could range in varying degrees from success to failure for the SMMTE. Furthermore, it is also assumed that preferred strategic behaviour of the SMMTE has a higher likelihood to translate into preferred final outcomes, which can manifest in different formats – depending on the attributes of the entrepreneurs. The extent to which SMMTE owners manifest strategic behaviour, is dependent on a multitude of variables. Some of these variables are controllable and other may be beyond the control and influence of the SMMTE owner. Controllable internal factors, according to Visser (2003: 139-140), are those that are internal to the SMMTE owner, such as strategic thinking skills. This implies that SMMTE owners can learn the techniques and obtain qualities that they need for preferred strategic behaviour to manifest in their ventures. Alternatively, it can be said that SMMTE owners can become strategic leaders who inspire and stimulate their employees. Uncontrollable factors are fundamentally external variables over which the SMMTE owner has little, if any, direct influence. The state of the economy and socio-political influences are examples of such external variables. However, it is stated by Visser (2003: 140) that the extent of the SMMTE’s ability to understand the external environment can affect the influence of the external variables on the performance of the SMMTE. Although proactive behaviour by SMMTE

owners can result in a preferred advantage from external variables, it is proposed that the focus of the study should rather be on the SMMTE owners themselves and the attributes that enable them to react strategically toward external variables. In regard to the internal variables, the presence of strategic behaviour is linked to co-producers (ref. Section 1.4.1) of strategic behaviour within SMMTEs and is based on the conceptual model of business performance of De Coning (1988: 52). The interrelationship in the form of a conceptual model is depicted in Figure 4.1. It is noted that the De Coning conceptual model relates to the prediction model of Dunnette (1983: 11) that tests validation and selection research. Thus, the conceptual framework for this study will build on the theoretical model as provided by Dunnette (Figure 4.1).

The reason why the Dunette model (as depicted in Figure 4.1) was used is as follows. The prediction model, according to Dunnette (1983: 10-11), takes into account the complex interactions between predictors (for example, entrepreneurial attributes) and various predictor combinations, different groups of individuals (for example, entrepreneurs), different behaviours (for example, manifestations of strategic behaviour), and, the consequences (for example, success or failure) of this behaviour relative to the goals of the venture. The model permits the possibility of the predictors being differently useful for predicting the behaviour of different subsets of individuals. Furthermore, it shows that similar behaviours may be predictable by different patterns of interaction between the groupings of predictors and individuals or even the same level of performance on the predictors can lead to substantially different patterns of strategic behaviour for various individuals. The model also recognises the reality that the same or similar strategic behaviour can, after passing through the situational filter, lead to different organisational consequences. This model thus does not place emphasis on a single criterion that would provide an all encompassing measure of behavioural success against which the predictors can be measured. The model requires that the focus be on multiple measures of individual behaviour and organisational consequences. In the light of the above it is suggested that an approach be followed whereby the relationship between the strategic behaviour co- producers and the attributes of the SMMTE owners is determined. The strength or weakness of this relationship will indicate the degree of strategic behaviour within the SMMTE, and it is assumed, the impact of this on the final outcome, namely the success or failure of the venture.

Figure 4.1: Theoretical model for predicting behaviour

Source: Dunnette (1983:11)

Visser (2003: 142-3) notes that the Dunnette (1983) model as well as the model derived by De Coning (1986), “are typical of systematic models, whereby multi-directional, dynamic interrelationship exists between the various elements of the models”. For instance, in the De Coning Model (Figure 4.2) certain attributes of SMMTE owners (owner attributes) will manifest preferred strategic behaviour (intermediate outcomes) which in turn will result in preferred consequences, namely success (or failure, which is not preferred) of the SMMTE venture (final outcomes) which in turn reinforces the strategic behaviour of the SMMTE. Thus, according to Visser (2003: 142-3), “this is in accordance with Senge’s view (1991) in feedback loops and reinforcement loops. For example, in the Dunette model, job behaviour after passing through the situation filter, manifests as outcomes (consequences or final outcomes), which in turn reinforces job behaviour – a clear example of systematic interaction. Similarly, in the De Coning model, transformational behaviour (Figure 4.3) manifests as final outcomes (consequences or final outcomes), which in turn reinforce strategic behaviour”.

This study proposes a conceptual a priori model as depicted in Figure 4.2.

Predictors Individuals Behaviours Situations Consequences

S1 P1 I1 B1 S2 C1 S3 P2 I2 B2 S4 C2 S5 P3 I3 B3 S6 C3 Pa Ii Bj Sk Ci

.

Figure 4.2: The a priori model for strategic behaviour of SMMTEs (Conceptual Model)