Dynamic capabilities and digital transformation for innovation in the south african mining industry

Abstract

This case study research encapsulates the evaluation of digital transformation (DT) through dynamic capabilities on value realisation in the South African mining industry. The research focuses on a qualitative methodology in the form of semi-structured interviews. The following two research sub-questions have been analysed as part of this research: Dynamic capabilities enables DT in the South African mining industry; and DT enables and sustains value realisation in the South African mining industry. Dynamic capabilities theories have been researched for several decades with many authors arguing that these capabilities are essential for firms to be successful and competitive in dynamic environments. Mining organisations have been slow to adopt technologies and this industry has a large impact on the gross domestic product (GDP) of South Africa. The operationalisation of dynamic capabilities was investigated to enable components of DT which in turn was evaluated to enable and sustain value in the South African mining industry. A South African listed mining organisation was chosen as part of an embedded case study. Several levels of participants across The Firm as well as participants from its DT partners were interviewed. These interviews were scheduled for 60 minutes with additional questions being asked as a follow-up to the base set of questions. These interviews were recorded on Microsoft Teams with embedded transcription features through the utilisation of Microsoft Streams. However, these transcriptions required significant work as the base files included time stamps, spaces, inaccuracies, and metadata for phrases of sentences within the transcript. This additional work was conducted by the author to ensure the privacy of the participants as well as The Firm. The transcripts were analysed several times utilising ATLAS.ti 9 which is a computer assisted qualitative data analysis software (CAQDAS). A thematic analysis was conducted, and the software assisted with codifying and interacting multiple inductive and deductive themes between the different participants. These interactions were additionally illustrated through Sankey diagrams utilising the software. The deductive and inductive themes were analysed and concatenated as part of major themes which were found to be imperative in enabling DT through dynamic capabilities and realising value in the South African mining industry. All themes, ultimately affected the people, processes and technology of The Firm which impacted the enablement and sustainability of value. The high-level findings were that the dynamic capabilities operational actions can enable DT, in an asset- intensive mining industry, through a phased approach of exploration, building and extending. Macro-level factors impact micro-level factors through dynamic capacities and dynamic capabilities processes. The components of DT enable and sustain value in a tangible and intangible manner where The Firm focuses on both qualitative and quantitative value with processes, methodologies, and frameworks in place to ensure value realisation, with several innovation concepts that were underpinned in the research.