Faculty of Commerce, Law and Management (ETDs)

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Effect of dynamic workforce capabilities on firm level innovation in the South African metals industry
(University of the Witwatersrand, Johannesburg, 2024) Mabhali, Luyolo Andrew Baxolise; Mzyece, Mjumo
Increasing employee diversity in gender, age, ethnicity generally has a positive impact on the firm level innovation due to diversification of views and experiences. Employee education is an important factor for innovation since education stimulates the capacity of employees to comprehend, create and process information due to better understating of the theoretical concepts of their trade. On the other hand, employee tenure is associated with experience and employees with a long organisational tenure are more familiar with the processes of the organisation and its strategy. Accumulated work experience, inside and outside the organisation, is also important as experienced employees have developed skills that are relevant and specific to their domain, thereby, tackling problems in a more focused and relevant way. The research outlined in this document proposes to combine attributes such as gender, age and ethnicity into a demographic background factor. The current research investigates the effect of this demographic background factor, together with education qualification and tenure, on firm-level innovation in the South African metals industry. The hypothesis is that these three factors (education qualification, tenure, and demographic background) are dynamic workforce capabilities that influence firm- level innovation in the South African metals industry and warrant consideration in the dynamic capabilities’ literature. The South African metals and engineering sector consists of approximately 10,000 companies that employ over 220,000 blue-collar workers and contributes around 3% of the country’s GDP or R900 billion. It has been facing challenges including production fluctuations and external economic pressures since 2008 but remains a key player in South Africa's industrial landscape. The dynamic capabilities framework is typically applied in environment of rapid change and the organisations in the metal South African metals industry are characterised by legacy machinery and equipment that make up a substantial part of their infrastructure. While the technological changes in other industries are fast-paced, the metals industry is moving at a slower pace. Due to the high numbers of blue- collar workers in this sector, understating the impact of factors such as the three under investigation in this paper could be significant for the industry. iii A positive correlation was found across all three tested factors (education qualification, tenure and demographic attributes) and firm-level innovation. The positive value of the correlation coefficient also showed that a positive change in these three factors results in a positive change in the firm level innovation in the South African metals industry. The conclusions were that dynamic workforce capabilities, which is a combination of education qualification, tenure, and demographic background factors, warrant further consideration to the literature on dynamic capabilities in the context of firm level innovation.
Activating Concentrated Curiosity in Problem Construction to enhance Creative Problem Solving
(University of the Witwatersrand, Johannesburg, 2024) Greenblatt, Jennifer; Lee, Gregory
As the first stage in the creative problem solving process, problem construction plays a pivotal role in facilitating the creativity of solutions generated. This thesis develops a theory that proposes an approach to optimise two sub-stages of problem construction, namely, the information search and problem framing, and subsequently builds a normative framework based on this theory to provide practical, evidence-based guidelines to improve the effectiveness of creative problem solving in organisations. To date, research into approaches to search for information about the problem has received little attention, and approaches to effectively frame a problem prior to generating solutions are still debated. Furthermore, research findings have not been leveraged to inform an evidence-based normative framework. This thesis comprises four papers. In paper one, the theory is developed based on literature research. In paper two, the theory is tested experimentally by exposing four groups of senior managers in a large financial services company to different experimental conditions and then comparing the creativity of solutions generated using two different approaches to the information search and two different approaches to problem framing. The development of a normative framework in paper three draws on both the theory and experimental findings. In this paper, in-depth interviews are also conducted with problem solvers from various disciplines to test the applicability and relevance of the framework developed to address the information search. The effectiveness of this normative framework is tested in an action research study in paper four, and findings are used to refine the framework and implementation guidelines. This study also serves as a second field test of the theoretical model.
Factors Influencing SME Performance of Incubation Beneficiaries in South Africa
(University of the Witwatersrand, Johannesburg, 2024) Mweli, Sibusisiwe; Venter, Rob
The focus of the research study was to investigate the factors that have contributed to the performance of the SMEs after incubation, with a focus on their dynamic capabilities, innovation capabilities, and the role of incubator support. A descriptive, quantitative study was conducted, employing a structured questionnaire as the data collection tool to capture the factors impacting SME performance post-incubation. The study included 43 SMEs, identified from incubator organizations across South Africa, LinkedIn, and various entrepreneur WhatsApp groups, who had successfully completed an incubation program. The findings of the study revealed that SME dynamic capabilities and innovation significantly predict SME performance post-incubation. However, the study's results also showed that incubator support does not moderate the relationship between innovation and SME performance, implying that current incubator support efforts do not significantly influence SME performance after incubation. The study recommends that to maximize their influence on SMEs' performance after incubation, incubators should put in place programs that assist the growth of SME dynamic capabilities and creative ideas. It also emphasizes how important it is to learn more about the difficulties and obstacles preventing SMEs from performing well both during and after incubation. To validate these results, more research with larger samples is required because of the small sample size. In the future, researchers should also investigate the specific ways that small businesses' changing abilities affect their performance, as well as the outside factors that affect how well incubator support works for small business performance.
Organisational innovation in the public sector: the case of the Companies and Intellectual Property Commission (CIPC)
(University of the Witwatersrand, Johannesburg, 2024) Zulu, Bheki
The project seeks to determine, in the South African context, whether or not public/government agencies have a systematic way of managing of innovation, and if so, to find out if they have method of learning and building innovation capabilities. It highlights possible problems that remain within public sector agencies, the CIPC in particular, with respect to learning and capability building, thereby laying the foundation for a more detailed study to be carried out in the future. The current study further aims to meaningfully contribute to the necessary core skills and teachings in the field of innovation management by trying to improve the understanding of how public sector organisations or government agencies build their internal learning and innovation capabilities. Therefore, the study will make use of two relevant theoretical frameworks, one of which is mostly used to analyse the private sector, that is, dynamic capabilities (DCs), while the other, the Smart Intellectual Property Office Framework (SIPO), is more widespread in the public sector. During the execution of its mandate, the CIPC makes use of technologies and ought to establish its process to optimise its administration and service delivery to the public for both local and international stakeholders. The responsibility of CIPC inter alia, is to administer, regulate and protect Intellectual Property assets and companies in line with requirements derived from a number of legislations/laws that have been in existence for a number of decades. This suggests that the CIPC ought to have the innovation capabilities to deal with issues regarding the technologies it uses and services it provides in executing its mandate. It is also recognised that public sector innovation has a substantial and varied impact on performance with regard to private sector, such as the services provided by CIPC, which include the registration of companies and intellectual property. This study adopted a qualitative approach in analysing the CIPC as a case study. In general, qualitative research methods are quite effective in gathering information that deals with matters that are intangible such as the experiences of the population of interest. In this case, the perspectives of participants provided informed conclusions regarding organisational innovation and its management in the public sector, particularly government agencies. The study was executed using both interviews and the analysis of official documents. iii In conclusion, it was revealed that public organisations that do not nurture learning and the building of coordinative/integrative capabilities risk losing relevance. This is because coordinative/integrative capabilities reflect the ability of an organisation to properly make use of its resources to support the sustainability and constant renewal of the organisation.
Intrapreneurship as an enabler to improve performance in the video entertainment industry: A Pay-Tv African Context
(University of the Witwatersrand, Johannesburg, 2024) Ngwenya, Sibongile; Urban, Boris
This research study investigated the relationship between intrapreneurship and two internal factors within an organisation organisational that lead to improved business performance. The organisational internal factors that were investigated are management support and organisational culture. The theoretical background to the study was adopted and grounded on the theory of corporate entrepreneurship, while the study focuses on Pay-Tv within the African context for a giant media player MultiChoice Group. The study was based on a quantitative approach, implementing existing instruments and analysing a sample of two hundred and seventy-one (271) employees. The results presented a significant and positive relationship exists between the organisational culture and intrapreneurship and A positive relationship exists between management support and intrapreneurship. This study contributes to the research theory of corporate entrepreneurship by recognizing the influence and importance of the organisational internal factors in improving business performance within the Pay-Tv industry. The study Industry players, industry employees, and academic practitioners Intrapreneurship principles a practice that can be implemented to facilitate and encourage the adoption of intrapreneurship to drive overall improved business performance. The study is relevant to the industry players who seek to remain entrepreneurial, and competitive and contribute to the industry’s sustainability into the future
Senior Managers’ perception of their role in facilitating digital transformation in the public sector – South Africa
(University of the Witwatersrand, Johannesburg, 2024) Mosia, Emanuel Mmuelli; Craffert, Leona
Digital transformation is a new phenomenon in the public sector. Previous studies have also found that public sector is performing poorly compared to private sector in their endeavours to transform. The study was intended to establish how senior managers perceive their role in facilitating digital transformation of the Department, excluding the actual assessment of digital maturity. The study drew guidance from Unified Model of Digital Maturity and Dynamic Capabilities Framework which both demonstrate the role of senior managers in the rapid changing environment due to technological disruptions. The study used semi- structured interviews to collect data from the population of 386 senior managers, where 15 senior managers were interviewed either face-to-face or virtually. The study finds that senior managers understanding of their role in facilitating digital transformation is fair to average. Their understanding of digital transformation is a simple switch from paper to paperless. Additionally, silo approach was found to be one of the impeders of digital transformation in the Department. The Department should be developing digital transformation strategy to guide the senior managers, coalesce all the efforts and be intentional in investing in digital transformation of the Department.
Incumbent response strategies to disruptive innovation in the South African banking industry
(University of the Witwatersrand, Johannesburg, 2023) Ishwarlaal, Nikhilia; Omotoso, Pelayo
In the South African banking industry, five major banks have collectively maintained a 90% market share across retail and wholesale banking; however, new entrants are emerging with disruptive innovations that threaten the incumbents’ dominance. The purpose of this study is to explore how these established firms perceive the threat of disruption and respond with their own strategies. It also aims to discover what factors influence these strategies, to understand why one strategy may take priority over another. The study investigates the problem statement posed by disruptive innovation theory, which is the potential failure of incumbent firms to respond appropriately to disruptive innovation. Findings have been assessed against a framework combining two theories and their extensions: disruptive innovation theory and response strategy theory. From the population of incumbent banks in South Africa, the top five in terms of assets held were included in the sample. To ensure informed insights, purposive sampling was used to identify four participants from each firm who could comment authoritatively on the topics under consideration. The study employed a qualitative methodology, leveraging semi-structured interviews to gather primary data from participants. Supplementary secondary data was used to support findings where required. Findings of this research include that disruption is occurring within this industry and to a high enough degree that incumbents have acknowledged disruptors and the threat of disruption. It is specifically found to be in the middle stage of the process of disruption, whereby the disruptive innovations are no longer insignificant, and are growing in performance and in presence across the industry; however, they are not considered to have penetrated incumbents’ mainstream market yet. In response to this, incumbents have prioritised at least one, and a maximum of two, response strategies out of a possible five that are dominant in this industry. The research also identified 16 factors that fall into two categories, motivation and ability to respond, which influence the prioritisation of response strategies. These insights may be used to inform theory around incumbent responses to disruptive innovation, with extensions towards the banking industry. It also has the potential to support incumbents in understanding and modifying their strategies to maximise their response to disruption
Public procurement of innovation in the valve manufacturing sector in South Africa
(University of the Witwatersrand, Johannesburg, 2024) Bosoga, Morongwa; Soumonni, Diran
Public procurement, in addition to its primary role of obtaining goods and services to fulfil public service functions, has been used by many economies to accomplish various socio-economic and developmental objectives. Moreover, public procurement is suggested to have played a big role in stimulating the establishment of manufacturing sectors in existence today. For many developing economies, manufacturing remains critical to creating large scale employment opportunities to reduce the high-rate unemployment and poverty. Against the budgetary constraints and tough economic climate, the past decades witnessed a renewed interest in the utilisation of public procurement of innovation (PPI) as either a stand-alone policy or as part of general innovation or procurement policy tool to stimulate innovation amongst the existing sectors or creation of new sectors. In South Africa, public procurement accounts for a significant share of economic activity with many domestic industries reliant on government contracts for their commercial activities. However, in comparison to other developed economies where PPI has become popular, it has been suggested that developing economies are not taking full advantage of the immense potential of PPI as tool to advance innovation capabilities and to strengthen the competitiveness of domestic firms. The purpose of the study is to explore the potential of PPI as tool to facilitate innovation in South Africa, utilising the valve manufacturing sector as case study. The study employed qualitative methods to gather and analyse data. The study used primary data as well as policy document analysis. Primary data was gathered through semi-structured one on one interviews with government officials, Eskom official as well as local valve manufacturers to determine the suitability of PPI to the South African environment. Policy documents and government report were used as secondary data. The key finding of the study PPI is a complex tool and there are many factors involved its implementation. Its successful implementation is reliant on certain conditions being in place. The complexities and weaknesses inherent within the South African regulatory, organisational, and institutional landscape may present iii major difficulties in the successful implementation of PPI as an explicit tool for government.
The internal factors that influence incremental technological innovation in a South African organisation
(University of the Witwatersrand, Johannesburg, 2024) Gobind, Dhiyaksha; Magida, Ayanda
In today’s fast-changing digital world, technological innovation is necessary for organisations to ensure long-term sustainability and market success. In large, complex organisations, numerous factors influence the success or failure of innovation. These factors can be categorised as technological, organisational, and environmental. This study explored the internal factors that influence incremental technological innovation in an organisation. Organisation X forms part of a federated business model and, as a result, has a shared technology platform. The study applied qualitative research methods with an interpretive paradigm that helped to evaluate the human experience and the understanding they attach to it. A purposive sampling method was applied using the researcher’s professional network to interview 12 participants at various management levels in the organisation. While there was a predetermined interview guide, the instrument format offered flexibility to explore the topics. The primary data collection method was in the form of online interviews on a cloud-based collaboration software. The data was analysed using the thematic analysis approach, and the results highlighted an interplay of the themes as they were interdependent. After applying the factors explored by the study within the technological, organisational, and environmental contexts, the research findings revealed significant areas that required focus and optimisation. The results indicated that organisational culture, processes, and leadership styles significantly influence technological innovation. The research provides practical recommendations to solve for the gaps and inefficiencies revealed by the study. These valuable recommendations include setting up Centres of Excellence, defining Proof of Concept strategies and reconfiguring project teams working on the latest technology innovations
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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