The influence of a complementary system of industry 4.0 capabilities on the performance of South African financial services firms
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
In this study, the relationships between Industry 4.0 (I4.0) complementary capability and performance outcomes were examined by utilising the resource-based view (RBV) of the firm. To achieve this, a conceptual framework was developed and tested, with a focus on eight specific I4.0 capabilities: Digitalisation, Integration, Decentralisation, Virtualisation, Real-time capability, Modularity, Service Orientation, and Human Resources. A relational cross- sectional survey examined how I4.0 complementary capability affects firm performance outcomes. The study employed a positivist perspective and utilised deductive reasoning to measure these effects. Data was gathered via structured questionnaire from 73 business and IT decision-makers within South Africa. The study employed correlation and multiple regression techniques to analyse the statistical relationship between I4.0 complementary capability and performance outcomes. The study's results indicate that adopting I4.0 complementary capability has a positive effect on firm performance. This suggests that businesses that implement I4.0 complementary capability are more likely to experience improved performance outcomes. The study found that digitalisation is a consistent and significant contributor to firm performance and that when combined with virtualisation, it has a positive and significant effect. However, there was no statistically significant relationship between I4.0 complementary capability and Innovation Capability. Nevertheless, digitalisation alone showed a strong positive and statistically significant relationship with innovation capability. Lastly, the study found no statistical significance in the relationship between I4.0 complementary capability and Value Outcomes. Digitalisation, on the other hand, was found to be a consistent and significant contributor to value outcomes, and when combined with virtualisation, it also had a positive and significant effect. The research study provides a unique contribution by utilizing the resource-based view of the firm to establish a connection between I4.0 complementary capabilities and performance outcomes within Financial Services. The study's results offer valuable insights for researchers and organisations seeking to understand which I4.0 capabilities are most significant and how they can enhance
a firm ability to achieve performance outcomes. The financial services industry is showing a strong interest in understanding the potential benefits of I4.0. This research provides insight into the relationship between an I4.0 complementary capability and firm performance outcomes, which can help practitioners prioritize their efforts to develop such a capability and determine the most important underlying I4.0 capabilities. By identifying the most critical I4.0 capabilities and their impact on firm performance, practitioners can focus their resources on implementing effective interventions that can improve their overall performance outcomes.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Master of Commerce, School of business sciences (Information Systems), University of the Witwatersrand, Johannesburg, 2023
Keywords
Industry 4.0, Complementary capability, Resource-based view (RBV), Digitalisation, IT decision-makers, Complementary System, South African financial services, Finance, UCTD
Citation
Ramadeen, Jeeth. (2023). The influence of a complementary system of industry 4.0 capabilities on the performance of South African financial services firmss [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace. https://hdl.handle.net/10539/38730