Innovation challenges faced by research and development organisations in State-Owned Entities: a case of Transnet engineering

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2022

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Kgafela, Kgomotso

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Abstract

This study examines the performance of Transnet Engineering's (TE) Research and Development (R&D) department and its activities, with a focus on understanding the drivers and challenges to innovation. Transnet SOC Ltd.'s engineering division, TE, manufactures, refurbishes, and maintains rolling stock and port equipment. In this case the R&D department is intended to introduce new or improved technologies and/or services to support the organisation to deliver reliable freight and port businesses. To understand these challenges, the balanced scorecard framework is used to examine the performance of the R&D department. This study followed a qualitative approach where semi-structured one-on-one interviews were conducted with the purposefully selected R&D management members and supporting management teams from business development and the finance department. While the R&D team seeks to execute and implement novel technologies or services, the research found that there are insufficient processes and policies in place to assist the R&D department accomplish its goals in the aspects of human resources, procurement, marketing, and finance. Nonetheless, the R&D team members are satisfied with the work they are doing, which encourages them to keep acquiring new skills and be a part of the team that develops solutions to Transnet's product issues. Throughout the study, it had emerged that the R&D team is crucial to Transnet to enable the entity to continue to be sustainable and competitive.

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A research report submitted to the Wits Business School in the University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in the field of Innovation Studies, June 2021

Keywords

Innovation challenges in South Africa, State Owned Enterprises, Research and Development, Innovation processes, Technology management

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