Abstract:
The success rate of business rescue in South Africa remains low and the intention
of the Department of Trade and Industry to save jobs is not being achieved. Business
rescue is a growing area of business focus in South Africa due to an increase in the
number of companies filing for business rescue. There is a need for empirical
research on factors that influence the success of business rescue. This study
explores the foundational competencies of successful business rescue practitioners
in South Africa and the required domain knowledge to supports these competencies.
The study was a qualitative, exploratory study that gathered data through 15 detailed,
semi-structured interviews with business rescue practitioners, academics, legal
experts, banking professionals and turnaround experts.
Literature revealed four higher-order competencies for business rescue practitioners,
namely sense making, decision making, integration and collaboration. The study
confirmed these higher-order competencies and expanded to the foundational
competencies that are crucial for these higher-order competencies. The research
also confirmed that business management, legal knowledge and finance domain
knowledge are the required domain knowledge areas that support business rescue
competencies. A key finding that further emanated from this study is the need for a
turnaround mindset and upholding high ethical standards amongst business rescue
practitioners in South Africa.
The findings of this study were integrated into a Business Rescue Practitioner
Competencies Model that may aid managers in selecting and evaluating business
rescue practitioners, it may guide accreditation bodies and learning institutions in
developing training material for business rescue practitioners and assist business
rescue practitioners to enhance their competencies.
