Digitalisation of corporate firms in South Africa: a catalyst in shared value creation with rural communities

Abstract

Introduction: The markets that corporations have historically drawn their profits from are increasingly becoming saturated, compelling firms to explore new competitive strategies and look for new markets. Rural communities present a potential new market for corporate firms. The opportunity exists to leverage the enabling potential of digital technology in creating shared value. The study aim was to explore the influence of digitalisation of corporate firms on fast tracking shared value creation with rural communities Method: A qualitative examination of commonalities in the perceptions and experiences of key influencers in large corporates in South Africa was undertaken. Using the phenomenological method, thirteen interviews with Board members and C-suite executives in corporate firms in South Africa were conducted. A thematic analysis was done using the Nvivo12 qualitative software. Findings: Shareholders need to shift the profit maximisation paradigm to one embracing inclusive societal progress as well as profits. This requires including social impact as a measurable output and key performance indicator. Data showed that Corporate Social Investment (CSI) should be more economically driven and a key focus of all managers across all business operations and not the sole responsibility of one department or individual. Additionally, digitalisation should be a priority in the agenda of the CEO due to its ongoing transformational impact on business models, processes, budgets and customer experience. Lastly skills such as emotional Intelligence and problem-solving skills are crucial in environments transformed by digitalisation and should receive the same attention as technical skills. Corporations need to first evolve the paradigm of rural communities to understanding and embracing technology before digitalisation can be used to enable Creating Shared Value (CSV). Conclusion: Key to unlocking the catalytic potential for digitalisation is a transformation of the paradigm where profit maximisation and complete ownership of the consumer are prioritised. This mindset stands in the way of collaborative strategies required to create CSV with rural communities. Further research is needed to explore rural communities ‘understanding of the enabling potential of technology and how it can be used to enable CSV.