Justin Barnes, Warren Sachs, Theuns Pelser
Abstract
Manufacturing SMEs make a significant contribution to the South African economy, but face competitiveness challenges. One of these challenges relates to the adoption of Digital Technologies (DTs). Several studies have identified use-cases for DTs; and described how international manufacturers have leveraged these technologies to secure competitive advantage. However, the adoption of DTs by South African manufacturing SMEs remains under-researched. It is unclear whether progress is being made. Literature has identified several factors which inhibit the adoption of DTs in manufacturing firms, but several key factors are less researched: owner/manager mindsets towards DTs; perceptions of digital platform openness; and the ease of exchanging data in a digitalised business model. In this study, researchers explore the adoption of DTs by a group of South African manufacturing SMEs, and the underlying reasons for inertia and/or progress. Twelve SME owner/managers or managers were interviewed. Four interviews were also conducted with senior managers or owners of DT vendors. The findings indicate that manufacturing SMEs in South Africa adopt DTs but only to a limited extent and at an immature level. Influencing factors include a focus on short-term operational issues and a need for more awareness of DTs and their associated costs and benefits.