Role of stakeholders in business rescue

Show simple item record Lusinga, Dumisani Doubt Fairhurst, Keith James 2021-03-25T11:57:19Z 2021-03-25T11:57:19Z 2020-08-12
dc.description.abstract PURPOSE : It is widely accepted that stakeholders play a role in the turnaround of an organisation. However, the exact role is unclear. This study set out to investigate the roles of stakeholders in the success of business rescue through the lens of stakeholder theory. DESIGN/METHODOLOGY/APPROACH : The study research design is qualitative following an exploratory approach. The choice of technique for the study was semi-structured interviews. FINDINGS/RESULTS : The findings indicate that key stakeholders go beyond affected parties as described by Chapter 6 of the Companies Act. Creditors are considered the most influential stakeholders due to their ability to vote on the business rescue plan, followed by postcommencement funders and employees, to ensure business continuity. Customers were given the same level of importance by the business rescue practitioners as other affected parties. Due to the dynamic nature of business rescue, business rescue practitioners prioritise resourceful stakeholders when managing the process. A simplified framework illustrating roles of stakeholders during business rescue is presented. PRACTICAL IMPLICATIONS : Stakeholder management should be recognised as a valuable exercise that must be allocated time and resources. Business rescue practitioners should recognise stakeholder influences at different stages of the business rescue process. en_ZA
dc.description.department Gordon Institute of Business Science (GIBS) en_ZA
dc.description.librarian am2021 en_ZA
dc.description.uri en_ZA
dc.identifier.citation Lusinga, D.D., & Fairhurst, K.J. (2020). Role of stakeholders in business rescue. South African Journal of Business Management 51(1), a1957. en_ZA
dc.identifier.issn 2078-5585 (print)
dc.identifier.issn 2078-5976 (online)
dc.identifier.other 10.4102/ sajbm.v51i1.1957
dc.language.iso en en_ZA
dc.publisher Association for Professional Managers in South Africa en_ZA
dc.rights © 2020. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License. en_ZA
dc.subject Business rescue en_ZA
dc.subject Stakeholder theory en_ZA
dc.subject Affected parties en_ZA
dc.subject Stakeholders en_ZA
dc.subject Business rescue practitioner (BRP) en_ZA
dc.subject Post-commencement finance (PCF) en_ZA
dc.title Role of stakeholders in business rescue en_ZA
dc.type Article en_ZA

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