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

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.