Electronic Theses and Dissertations (Masters/MBA)

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    The impact of digital technologies on SME business performance in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Mdhluli, Mfanasibili Emmanuel
    In the era of digital transformation and digital technologies, small and medium enterprises (SMEs) face an ever-changing operating environment where being digitally savvy is critical for success. Therefore, adopting and using digital technology may prove to be an important decision that may lead to SMEs continuing to operate as going concerns, growing and being sustainable well into the future. This research delves into the impact of SMEs using digital technologies on business performance. While a myriad of business performance metrics can be tested, for this research, revenue, profit, operational efficiency, customer satisfaction, innovation, risk management and the economic indicator of job creation are analysed. The challenges faced by SMEs are well documented, but there seems to be a lack of research on the benefits and impact of using digital technologies. Faced with limited resources, SMEs must make strategic decisions to drive their businesses forward and investing in digital technologies is one of them. This study seeks to understand the rationale of deciding to use digital technologies utilising the extended technology adoption model (TAM2) coupled with business measures. A quantitative electronic survey was used to collect the data from a sample of 84 South African SMEs. The findings reveal that using digital technologies has a positive impact on SME business performance, thus making it imperative for SMEs to adopt and use digital technologies as part of their business models. The findings elucidate that using digital technologies is not merely an operational imperative, but is also transformative, unlocking sustained competitiveness. The study adds to the literature on the understanding of the impact of using digital technologies on SME business performance, especially from a South African context
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    Loadshedding challenges and adoption of ICT solutions by SMEs in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Masilela, Senzi Michael; Msimango-Galawe, Jabulile
    Small and medium-sized enterprises are regarded as important contributors to improving the employment rate in South Africa. Unfortunately, loadshedding is severely affecting enterprises across different industry verticals. ICT is one of the enablers of collaboration, improved business processes, production and so forth. Companies rely on electricity as it underpins and enables the continuous running of business operations. Primary data was collected through one-on-one semi-structured interviews that were conducted with participants in the ICT space in the Gauteng province of South Africa. Majority of the participants who took part in the study work for organisations in and around Johannesburg and Pretoria. The collected data was analysed through thematic analysis where similarities were drawn, and suggestions put forward. It was discovered that some organisations run their IT services from physical hardware hosted on-premises while some are evolving and have since adopted newer ways of running IT services. Organisations running IT from on premises had to put down standby power generators and UPS systems to make sure that they are not negatively affected by loadshedding. Most smaller companies unfortunately were not able to afford backup power solutions because of them being so exorbitant from a cost perspective. Due to loadshedding challenges, some moved their infrastructure to third-party data centres and ran them remotely from there. Some have fully migrated to cloud computing
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    The role of digital technology in SME funding by Commercial Banks in South Africa
    (University of the Witwatersrand, Johannesburg, 2023) Chili, Philani; Manessah, Alagbaoso
    SMEs are the backbone of developing economies, playing an integral role in GDP growth and job creation. South Africa, inclusive of an informal sector, presents a wider SME market, which through adequate support, can contribute significantly to the economy. With the future growth of the economy and improved employment prospects majorly dependent on the contributions of the SME sector as avowed by the South African Government, the success of these constrained businesses is most important. SMEs in South Africa have an average age of five years, with lack of access to financing noted as one of the key inhibiting factors. Although the advent of technology has introduced new financial intermediation players, offering innovative products necessary to drive accessibility to financial services, optimising traditional banks’ larger resources could yield mass benefit. Unlocking the full funding potential of banks through modern technology is therefore critical to support the survive and thrive prospects of SMEs. This study endeavoured to understand existing relationships and the extent to which digital technology can be exploited to improve accessibility to bank funding by SMEs, using literature insights pertaining to information opacity and innovation challenges which stifle progressive SME lending. The study was underpinned by the Disruption Innovation Theory and Information Asymmetry Theory. Following a quantitative approach, structured survey questionnaire data collected from SMEs in South Africa was statistically analysed. SMEs that attempted (whether successfully or not) to obtain funding from traditional banks were of particular interest. Although innovation and technology adoption seemed to drive accessibility to bank funding whilst lack of engagement with innovation activities hindered it, both showed weak correlations and had no statistical significance. Intriguingly, ‘age of business’ showed a statistically significant correlation with accessibility to bank funding, a result that is pertinent to the survival factors of SMEs and warrants further exploration. Whilst SMEs provide a reliable proxy to improved SME lending by banks, it is imperative that perspectives of the banks are included in such a study to make a meaningful contribution to academic research aimed at unearthing relationships that start to edge closer to an optimal SME lending model. In the meantime, the onus lies with SMEs to minimise information opacity and improve fundability through technology as they navigate a somewhat rigid traditional bank system.
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    Small Medium Enterprise (SME)’s Competitiveness within a volatile regulatory environment in South Africa
    (University of the Witwatersrand, Johannesburg, 2021) Shai, Gift; Wotela, Kambidima; Ameyibor, Leeford
    SMEs have been established as the driving force for developing the South African economy and the main source of competitive advantage. They are recognized as agents of industrial change and innovation; they are also seen as an important vehicle for employment creation and economic development. On the other hand, we have a regulatory environment that is volatile and, as a result, poses challenges to the competitiveness of the SMEs in South Africa. This study is an attempt to determine the level of competitiveness of the SME within the emerging markets as well as how SMEs can monitor their external environment. In addition to that, this study establishes the coping mechanisms of the SMEs and suggests ways to enhance their competitiveness. A case study qualitative strategy was adopted for this study which allowed research to get in-depth understanding about the case. Semi-structured interviews were conducted in which 8 formal SMEs with more than 3 years in existence were targeted. The findings reveal that SMEs need to have research and development measures in place which will enable their organisation to know what is happening around them, which coupled with information technology, can enable them to plan for all anticipated changes. This, in consequence, will help them build their capabilities in a way that it will give them a competitive advantage. It is also of paramount importance for SME to have a Quality Management System consisting of policies and procedures in place that will guide the crafted strategies. Strategies coupled with information gathered from research and development and relevant training initiatives can be put in place. Adaptation to change mechanisms can also be forged that will make the SME sustainable and perform better even under volatile environmental conditions. Lastly, governance within the SME plays a vital role in enhancing competitiveness. Good governance creates an organizational culture that keeps employees motivated, reduces workforce fluctuations and increases value for all the stakeholders, both internal and external.
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    The adoption of Blockchain among the SMEs in Gauteng, South Africa
    (University of the Witwatersrand, Johannesburg, 2021) Motea, Mosa; Wotela, Kambidima
    This study investigates factors that influence the adoption of Blockchain technology among small to medium enterprises (SMEs) within Gauteng, South Africa, through the lens of the challenges they face. The adoption of Blockchain in the SME sector is lagging as compared to other counterparts in emerging economies. It is evident, based on the literature review that SMEs face numerous business problems, and this creates severe challenges hindering the adoption of new technologies. The Technology- Organisational-Environment (TOE) framework was utilised as a theoretical framework and used for this study to analyse the adoption of technology among SMEs. A qualitative research approach was considered the most appropriate for this study. Primary data was collected from six SMEs comprising of owners and directors or senior managers using semi-structured interviews. A purposive sampling technique was chosen to select the participants. The interview question guide developed from insights gained from the literature review section, and other questions were added depending on the respondents' feedback. The author adopted Bryman's four-stage thematic coding for data analysis. The findings of this study offer’s knowledge and practical enlightenment on the factors that drive the adoption of technologies among the SME sector
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    Changes in Organizational Architecture of SME Manufacturers incorporating Smart Manufacturing Systems within Gauteng
    (University of the Witwatersrand, Johannesburg, 2023) Radebe, Bongmusa; Maier, Christoph
    The South African Manufacturing SME is a thriving industry that has one of the biggest contributors to employment and impact in GDP contribution. The aim of the study is to understand the importance of Organizational Architecture and how adopting Smart Manufacturing Systems is imperative for improved Manufacturing SMEs overall performance. To skillfully contrive this inquiry, a quantitative approach was adopted, recording key driver responses to their perception of Organizational Architecture. These responses were captured through a survey questionnaire that was distributed using the desktop method of distribution. The results displayed insights on the perception of Organizational Architecture and reasons why key drivers of Manufacturing SMEs seldomly adopted Smart Manufacturing Systems to advance the manufacturing industry in Gauteng, South Africa. The insights brought forth from the research suggests that policy makers revise existing structures to cultivate activities that cultivate and protect the growth of Manufacturing SMEs. The research makes a significant contribution by identifying some of the insights on why the adoption of Smart Manufacturing Systems in Gauteng is lagging
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    Sustainability of SMEs in the South African manufacturing and agriculture sector from 2010 to 2020
    (University of the Witwatersrand, Johannesburg, 2023) Rikhotso, Masana Ludwick
    Aim: South Africa’s start-up SME failure rate is on the higher end. Estimates place the failure rate of formal SMEs in South Africa between 70% and 80% in the first 5 years (News24, 2022, p. 1). This study investigates the relationship that demographic factors of SMEs play to their survivability. The main aim will be to identify predictors of SME survival and make recommendations that will assist other SMEs to increase their odds of survival. Methods: Secondary data were obtained from the South African Supplier Diversity Council (SASDC), which is a South African registered company that facilitates SMEs to get access to business and finances from larger organisations. The scope of the research is limited to SMEs that operate in the manufacturing and agricultural sectors. The research only focuses on formal SMEs, which are those that have been registered with the Companies and Intellectual Property Commission (CIPC) and thus file for taxes. Given a lack of a formal database available to extract the data, individual files were sent to the researcher from the SASDC data administrators. The files sent comprised of data on an individual SME in the format of a Microsoft Word document and a PDF. The data were manually collated by the researcher to create a database that could be analysed through the STATA 17 statistical tool. The selection of variables was based on available demographic data in the files informed by literature from previous similar studies. A bivariate analysis was conducted to assess if there is a relationship between the dependent variable (survival) and the independent factors. To conduct the analysis, Kaplan-Meier and life tables were used alongside the Cox proportional hazard model. Results: The multi-variable analysis found that demographic factors could indeed be associated with SME failure. For example, SMEs that had owners with less work experience had lower survival odds. Overall, using the Cox proportional hazards model, the hazard ratios for work experience and the gender of the CEO identified these as factors that played a role in SME survival. 10 Conclusions: The findings highlight that although there is further research that needs to be done on this topic, there are demographic factors associated with failed SMEs and these factors can be used as predictors of SMEs. Caution must be taken not to discriminate against SMEs with these factors but to equip these SME CEOs with tools to prevent failure
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    Digital payments adoption of informal small and medium enterprises in South Africa’s township economy
    (University of the Witwatersrand, Johannesburg, 2023) Mabaso, Nompilo; Magida, Ayanda
    The use of cash for making and receiving payments in South Africa’s townships continues to grow, despite the proliferation of alternative payment methods. Merchants operating informal businesses are reluctant to accept payments digitally, which further contributes to the socio-economic burdens experienced in townships. This study investigated merchants’ intention to use digital payment acceptance methods, specifically in the informal sector. The UTAUT2 was employed, extended with the Perceived Risk Theory. The study adopted a quantitative research approach. A questionnaire was used to collect data from 120 respondents online and face-to-face. The questionnaire was based on previously researched and theorised literature. Factor analysis, particularly Principal Components Analysis, was used to analyse the results. Correlation analysis was conducted to test the hypothesis, followed by multiple regression. The findings revealed that the independent variables Performance Expectancy, Effort Expectancy, Price Value and Perceived Trust all positively influenced the behavioural intention of informal merchants to use digital payment acceptance methods. Performance Expectancy had the strongest influence, whilst Perceived Risk was not found to have a negative influence on the behavioural intention of informal merchants to adopt
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    The impact of ICT adoption on business performance among SMEs in South Africa
    (University of the Witswatersrand, Johannesburg, 2023) Manyama, Alson; Msimango-Galawe, Jabulile
    Despite the high rate of ICT adoption in South Africa, little is known about the impact of ICT adoption on business performance among SMEs; thus, a study such as this was necessary to reduce the failure rate of SMEs during their first five years. Design/methodology/approach – In South Africa, SME survey data were collected using purposive sampling, with a sample size of 385, and multiple regression was used for analysis. Findings - H1, H2 & H3 were accepted at p-value < 0.001 statistically significant level. Based on the multiple regression analysis results (R-value = .938; R-square = .966; p-value = 0.001). It is therefore evident that there is a statistically significant relationship between technology, organization and external environmental factors and business performance. Conclusions – The results indicate that technological, organisational, and environmental contexts have direct and statistically significant relationships with business performance. Research limitations/implications – Due to the study's limited scope and phases, additional data are required to apply the findings to other industries/sectors/countries. Implications/practical applications – The study's findings have significant implications for SME managers and owners who are promoting ICT adoption within their organisations. This study seeks to educate managers on the significance of external assistance for small and medium-sized enterprises (SMEs), particularly those lacking the competencies, skills, or an ICT division. Adoption of ICT provides small and medium-sized enterprises with access to real-time data, advanced analytics, and reporting tools. This allows managers to make well-informed decisions based on current and accurate information. In order to capitalize on this advantage, managers should prioritize developing data-driven decision-making capabilities and ensuring that employees have the necessary skills to interpret and analyse data. Originality/value – The paper contributes to the expanding literature on innovation adoption by utilising T- O-E frameworks to explain the technology adoption by SME