The impact of big data analytics on the competitiveness of South African smart manufacturing enterprises

Abstract

Smart manufacturing is recognized for its potential to significantly enhance strategic decision-making and competitive advantage (Al-Khatib, 2022). However, despite its transformative potential, many manufacturers, particularly in South Africa, struggle to fully leverage big data due to limitations in capacity and capability (World Economic Forum, 2021; Rockwell Automation, 2024). This study aims to identify the barriers and benefits associated with big data analytics adoption within South African smart manufacturing enterprises. Literature highlights that while big data analytics can significantly enhance manufacturing operations and competitiveness, many organizations face challenges related to high costs, skills shortages, and infrastructural limitations (Kamble et al., 2018; Pradhan & Agwa-Ejon, 2018). This study fills a gap by examining these issues within the South African context, applying qualitative methods to gain deeper insights into these barriers and benefits. The study employed a qualitative approach, starting with a questionnaire that yielded 172 respondents. This questionnaire comprised both quantitative questions (e.g., participants' demographics) and open-ended qualitative questions, providing a comprehensive understanding of the respondents' insights. Following this, in-depth qualitative interviews were conducted with nine participants. The data were analysed using thematic analysis and ATLAS.ti software to identify key themes and insights. Findings reveal that many South African manufacturers are in the early stages of adopting smart manufacturing, with significant barriers including financial and resources constraints, poor/lack infrastructure, skills gaps, and organizational resistance. Identified the benefits of big data analytics include improved operational efficiency, predictive maintenance, and enhanced decision-making, are recognized as critical to achieving competitive advantage. The study emphasizes that South African smart manufacturing enterprises must address these barriers to fully leverage big data analytics. It highlights the urgency of overcoming financial constraints, bridging skills gaps, and fostering a supportive organizational culture to enhance long-term competitiveness and sustainability.