Role of stakeholders in business rescue

dc.contributor.authorLusinga, Dumisani Doubt
dc.contributor.authorFairhurst, Keith James
dc.date.accessioned2021-03-25T11:57:19Z
dc.date.available2021-03-25T11:57:19Z
dc.date.issued2020-08-12
dc.description.abstractPURPOSE : 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.departmentGordon Institute of Business Science (GIBS)en_ZA
dc.description.librarianam2021en_ZA
dc.description.urihttp://www.sajbm.orgen_ZA
dc.identifier.citationLusinga, D.D., & Fairhurst, K.J. (2020). Role of stakeholders in business rescue. South African Journal of Business Management 51(1), a1957. https://doi.org/10.4102/sajbm.v51i1.1957.en_ZA
dc.identifier.issn2078-5585 (print)
dc.identifier.issn2078-5976 (online)
dc.identifier.other10.4102/ sajbm.v51i1.1957
dc.identifier.urihttp://hdl.handle.net/2263/79115
dc.language.isoenen_ZA
dc.publisherAssociation for Professional Managers in South Africaen_ZA
dc.rights© 2020. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License.en_ZA
dc.subjectBusiness rescueen_ZA
dc.subjectStakeholder theoryen_ZA
dc.subjectAffected partiesen_ZA
dc.subjectStakeholdersen_ZA
dc.subjectBusiness rescue practitioner (BRP)en_ZA
dc.subjectPost-commencement finance (PCF)en_ZA
dc.titleRole of stakeholders in business rescueen_ZA
dc.typeArticleen_ZA

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