Abstract:
PURPOSE – The study measures business leaders’ perceptions of the likelihood of recovery, the competency of
business rescue practitioners and the level of support they are expected to provide to businesses in rescue. By
examining these three facets of confidence, using expectancy theory, the study seeks to reveal the perceptions of
directors as decision-makers in commencing proceedings by inferring their level of confidence in the business
rescue process to the likelihood of directors initiating business rescue proceedings timeously.
DESIGN/METHODOLOGY/APPROACH – An online survey targeted South African business leaders, especially
directors, was developed to recognise the confidence in the business rescue process. The study combined
quantitative (Likert scale) and qualitative (open-ended questions) methods. Data were analysed using the
expectancy theory, linking behaviour to anticipated outcomes, to derive confidence in the rescue process.
Limitations such as the sensitive nature of insolvency and its inherence negative inclinations should be noted.
FINDINGS – The study revealed some complex sentiments surrounding the business rescue proceedings. The
responses are indicative of both confidence in and scepticism of the process, offering a nuanced look at South
Africa’s insolvency proceedings from outside the confines of the industry itself.
RESEARCH LIMITATIONS/IMPLICATIONS – The limitations of the study are notably reflected in its reliance on
qualitative insights, which may inherently skew towards negative perceptions due to the nature of the subject –
business rescue proceedings. Moreover, despite the anonymity of the survey, there remains a possibility that
respondents, who are directors with fiduciary duties, may not have been completely forthcoming. This reticence
could stem from an unconscious bias to present themselves and the decisions they make in a more favourable
light, thus potentially downplaying or overlooking their own hesitations or misgivings about the business rescue
process. This may lead to an underrepresentation of both the depth of scepticism and the complexity of the
challenges faced in initiating business rescue proceedings.
ORIGINALITY/VALUE – The originality of this paper lies in investigating the confidence business leaders have in the
business rescue process in the context of South Africa derived from a survey instrument.
