0 
 

 

 

  

APPLIED RESEARCH PROJECT 

Hagandri Perumal  

2612636 

2612636@students.wits.ac.za 

Supervisor: Dr. Jenika Gobind 

Topic: 

Corporate culture as a vehicle for change management in the 

South African Logistics sector. 

mailto:2612636@students.wits.ac.za


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Contents 
Table of Figures ....................................................................................................................................... 3 

Chapter 1: Introduction .......................................................................................................................... 4 

1.1 Introduction Background of the study .......................................................................................... 4 

1.1.1 Research Problem ............................................................................................................. 5 

1.1.2 Research objectives ........................................................................................................... 6 

1.1.3 Assumptions ...................................................................................................................... 7 

1.1.4 Rational of the study ......................................................................................................... 7 

1.1.5 Delimitations of the study ................................................................................................. 7 

1.1.6 Operational definitions ..................................................................................................... 8 

1.1.7 Structure of the dissertation ............................................................................................. 8 

Chapter 2: Literature Review ................................................................................................................ 10 

2.1 Introduction ......................................................................................................................... 10 

2.2 The influence of corporate culture, as vehicle of change management in the adoption of 

innovation. ........................................................................................................................................ 14 

2.3 Navigating change in a crisis ................................................................................................ 15 

2.4 Corporate culture and talent management ........................................................................ 16 

2.5 Corporate culture and effective communication ................................................................ 17 

2.6 Corporate culture and customer satisfaction ...................................................................... 18 

2.7 Corporate culture and leadership ....................................................................................... 18 

2.8 Innovation in the logistics sector ......................................................................................... 19 

2.9 Corporate culture and innovation ....................................................................................... 20 

2.10 Innovation and continuous improvement ........................................................................... 22 

2.11 Theoretical and Conceptual Framework ............................................................................. 23 

2.11.1 Introduction ................................................................................................................ 23 

2.11.2 Theoretical Framework: Diffusion of Innovation Theory ........................................... 25 

2.11.3 Theoretical Framework: Dynamic Capabilities Theory ............................................... 26 

2.11.4 Conceptual framework for innovation and sustainability .......................................... 28 

2.12 Summary .............................................................................................................................. 29 

Chapter 3: Research Methodology ....................................................................................................... 30 

3.1 Introduction ......................................................................................................................... 30 

3.2 Research Approach .............................................................................................................. 30 

3.3 Research Paradigm .............................................................................................................. 32 

3.4 Research design ................................................................................................................... 34 

3.5 Data collection ..................................................................................................................... 35 

3.5.1 Population and sample.................................................................................................... 35 



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3.5.2 Research instrument ....................................................................................................... 35 

3.5.3 Procedure for data collection.......................................................................................... 36 

3.6 Data analysis ........................................................................................................................ 36 

3.7 Ethical considerations .......................................................................................................... 37 

3.7.1 Informed Consent ........................................................................................................... 37 

3.7.2 Voluntary participation ................................................................................................... 37 

3.7.3 Confidentiality and Anonymity ....................................................................................... 37 

3.7.4 Data management ........................................................................................................... 37 

3.8 Summary .............................................................................................................................. 38 

Chapter 4: Presentation of findings ...................................................................................................... 39 

4.1 Introduction ......................................................................................................................... 39 

4.2 Demographics ...................................................................................................................... 39 

4.3 Corporate culture as a vehicle for change management .................................................... 40 

4.4 Critical factors of change management in corporate culture ............................................. 41 

4.5 Innovation in the logistics sector ......................................................................................... 42 

4.6 The importance of innovation in the logistics sector and the value derived ...................... 43 

4.7 The influence of corporate culture over innovation ........................................................... 44 

4.8 Leadership’s influence on corporate culture in the adoption of innovation ...................... 45 

4.9 Specific methods or techniques to increase the rate of innovation adoption .................... 46 

4.10 Innovation initiatives ........................................................................................................... 47 

4.11 Barriers and challenges facing South African logistics organisations from becoming 

innovative ......................................................................................................................................... 47 

4.12 Innovation as a continuous improvement strategy ............................................................ 48 

4.13 Summary .............................................................................................................................. 48 

Chapter 5: Discussion of findings .......................................................................................................... 49 

5.1 Introduction ......................................................................................................................... 49 

5.2 Corporate culture as a vehicle for change management .................................................... 49 

5.3 Critical factors of change management in corporate culture ............................................. 50 

5.4 Innovation in the logistics sector ......................................................................................... 51 

5.5 The importance of innovation in the logistics sector and the value derived ...................... 51 

5.6 The influence of corporate culture over innovation ........................................................... 52 

5.7 Leadership’s influence on corporate culture in the adoption of innovation ...................... 53 

5.8 Specific methods or techniques to increase the rate of innovation adoption .................... 53 

5.9 Innovation initiatives ........................................................................................................... 54 

5.10 Barriers and challenges facing South African logistics organisations from becoming 

innovative ......................................................................................................................................... 54 



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5.11 Innovation as a continuous improvement strategy ............................................................ 55 

5.12 Summary .............................................................................................................................. 55 

Chapter 6: Conclusion, Limitations and Recommendations ................................................................. 56 

6.1 Introduction ......................................................................................................................... 56 

6.2 Corporate culture as a vehicle for change management .................................................... 56 

6.3 Critical factors of change management in corporate culture ............................................. 56 

6.4 Innovation in the logistics sector ......................................................................................... 57 

6.5 The importance of innovation in the logistics sector and the value derived ...................... 57 

6.6 The influence of corporate culture over innovation ........................................................... 58 

6.7 Leadership’s influence on corporate culture in the adoption of innovation ...................... 58 

6.8 Specific methods or techniques to increase the rate of innovation adoption .................... 59 

6.9 Innovation initiatives ........................................................................................................... 59 

6.10 Barriers and challenges facing South African logistics organisations from becoming 

innovative ......................................................................................................................................... 59 

6.11 Limitations ........................................................................................................................... 60 

6.11.1 Sample size and participation in the interview........................................................... 60 

6.12 Recommendations ............................................................................................................... 60 

6.12.1 Practical implications .................................................................................................. 60 

6.12.2 Future studies ............................................................................................................. 60 

6.13 Summary .............................................................................................................................. 60 

References ............................................................................................................................................ 62 

Appendix A: Semi-structured interview guide ...................................................................................... 72 

 

 

Table of Figures  
Figure 2.1: Organisational cultures typology (Quinn & Cameron, 1999).............................................. 21 
Figure 2.2: Conceptual Framework ....................................................................................................... 29 
Figure 4.1 Gender composition of the population for the study .......................................................... 39 
Figure 4.2 Ethnic grouping .................................................................................................................... 40 
Figure 4.3  Male Role Ranking      Figure 4.4 Female Role Ranking .............................. 40 
 

Table 1: Research gaps .......................................................................................................................... 12 



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Chapter 1: Introduction 

1.1 Introduction Background of the study   
In the continually changing environment brought on by globalization, technical advancement, 

or higher customer expectations, change management is crucial for organisational continuity 

and advancement (Shaikh, 2020). Research has shown that for any organisation to generate 

sustainable growth, they are required to continually adapt, change, and maintain sustainable 

competitive advantage (Zang et al., 2023). The advantage a business will obtain over its rivals 

by providing clients with more value through value-adding perks or perceived benefits that 

justify similar or even higher rates for such services is known as a sustainable competitive 

advantage (Ehmke, 2008). Porter (1985) also stated that competitive advantage stems from a 

firm choosing a competitive position and can easily erode or shape its position in an industry 

through a competitive strategy (Porter, 1985). In the current economic climate organisations 

operate in, which is plagued with increasing globalisation, competition, changing customer 

needs and the constant change in technology, a firm must be able to adapt and compete in order 

to survive (Naranjo-Valencia et al., 2012).  

Any firm that wishes to remain competitive must have the desire or need to be the best in their 

industry, this desire is a tone that is set within the organisation, a tone that is set from top 

management. This tone or underlying desire is driven and defined by the way the organisation 

operates, their norms, values and beliefs, and the way they work. These norms, beliefs and way 

of working is defined as the company culture (Wang et al., 2021). Culture is a managers 

primary control to maintain viability in times of uncertainty (Wang et al., 2021). Research has 

also shown that culture is a key driver in innovation and ultimately financial performance 

(Balkin et al., 2013). There has also been further evidence sourced through surveys which have 

been performed in countries like Germany, Spain, China, and USA on companies listed on the 

respective country’s securities exchange (Naranjo-Valencia et al., 2012), which link the 

influence of corporate culture to the sustainability of a firm through innovation and financial 

performance. Ultimately, sustainable organisations are known for their ability to adapt and 

deliver a competitive advantage, which is driven through their culture. No company was 

created and immediately knew how to drive performance and competitive advantage, it comes 

with years of practice and setting the right culture (Groysberg et al., 2018).  

Where research has been performed it has been limited to a country, industry, or a company. 

With the extensive web of cultures and a divided past, South Africa is a country that has great 

potential to become the next great emerging market of the world (Stefan, 2011). With the right 



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leadership and a social commitment to develop and grow, the social cultures can leak into the 

corporate cultures to create a wave of change and growth opportunities for many of the 

underprivileged and less fortunate. There are however many successful private South African 

companies such as MTN and Discovery who have been at the cutting edge of technology 

enhancements and seen as an employer of choice that every young student and graduate would 

want to work for (Discovery, 2023; MTN, 2023). What makes MTN and Discovery different 

from other South African companies, is it their access to funding or potentially political ties? 

Or could it be based on the beliefs and value systems that are entrenched in their way of 

working, how employees engage internally and externally? What makes them unique or is there 

nothing specifically unique about them, is it just a way they choose to operate which is a choice 

embraced by all who work for the organisation? But most importantly, how did they find the 

right corporate culture fit, what processes of change management did they need to go through 

to get to a space which allows them to continually improve? Corporate culture is a powerful 

and pragmatic approach to aligning a company’s goals with its people (Wang et al., 2021).  

The purpose of this research is to identify how South African company’s navigate change to 

find the right corporate culture fit which will influence in their adoption of innovation, and that 

would further result in an improvement of financial performance. This research seeks to 

determine the links between corporate culture, innovation and change management and further 

seeking recommendations through research for organisations to pragmatically address a 

potentially weak corporate culture.   

1.1.1 Research Problem 

Many academics have contributed significantly to this area of study, research over the last two 

decades has provided the links between corporate culture and firm innovation and performance 

(Naranjo-Valencia et al., 2012; Wang et al., 2021; Balkin et al., 2013; Hampden-Turner, 1992). 

Prior research has also identified research gaps, such as: 

• what is the specific type of corporate culture is required for each stage of the innovation 

process (Naranjo-Valencia et al., 2012).  

• Evaluating and understanding the extent to which corporate culture improves 

productivity and value creation (Graham et al., 2022). 

• Limiting data sources to listed companies (Wang et al., 2021), specific industries or 

companies with a trend of performance concerns (Molenaar et al., 2002). 



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A gap that has been identified in the volume of previous research, is the connection between 

the corporate culture as a change management tool itself to allow an organisation to 

successfully adopt innovation and reap the benefits of financial performance. To define the 

right corporate culture for an organisation requires a deep understanding of the requirements 

of the organisation (Kotter & Heskett, 1992), in essence, to find the right corporate culture fit 

and using this corporate culture as the driver for the change in the organisation to adequately 

adopt innovation.  

There is an extensive array of research on change management as a stand-alone subject matter. 

The focus on the topic of change management has in most cases been in the general outcome 

of effecting change regardless of the type of change (Ehmke, 2008) or focused based in a case 

study (Joseph, 2022). In the research done by Kotter and Heskett (1992), they offer a thorough 

and in-depth examination of how corporate culture can significantly impact the economic 

performance of a company, either positively or negatively. They have done quantitative 

research on organisations such as Hewlett-Packard, Xerox, ICI and Nissan where the writers 

discuss how the presence of common values and unspoken norms can greatly contribute to 

economic prosperity or, on the other hand, result in an inability to adjust to evolving markets 

and circumstances (Kotter & Heskett, 1992). It is these common values and unspoken norms 

which can drive the correct change management needed to foster a positive culture and is thus 

what this research aims to understand further.   

This study contributed to the assessment of potential strategies and tactics needed to 

successfully implement a corporate culture change that fosters opportunity and growth for an 

organisation through the adoption of innovation to improve financial and overall company 

performance. 

1.1.2 Research objectives  

It has been widely established that a creative or adhocratic corporate culture allows for a greater 

level of innovation through the promotion of agility, adaptability, creativity, and the tolerance 

of failure (Wang et al., 2021). The primary statement that guided this research is:  

The impact of corporate culture on the adoption of innovation in the South African logistics 

sector is substantial. It shapes attitudes towards change, creates a supportive environment 

for new ideas, and ensures that the organisation aligns with innovative practices.  

The following secondary statements will also serve as a guide for the study to answer the 

primary research question:  



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- Organizations often find it difficult to manage corporate culture change due to 

entrenched habits, resistance to altering established norms, and the complexity of 

aligning new cultural values with existing practices and beliefs 

- Possible techniques and methods for successfully implementing change in an 

organization.  

1.1.3 Assumptions 

There is an assumption that corporate culture, as vehicle of change management can influence 

the adoption of innovation within companies in the South African logistics sector. A further 

assumption is that organisations find it difficult to manage corporate culture change and 

arriving at possible techniques and methods that can be used to successfully implement change 

in an organisation. 

1.1.4 Rational of the study 

The study contributed towards furthering the research and conversations on corporate culture 

change that influences firm innovation and performance, in the South African context. 

Research has provided various insights into the types of culture and suggestions or 

recommendations on what is the best culture for an organisation to achieve the benefits that 

corporate culture can offer (Naranjo-Valencia et al., 2012; Wang et al., 2021). This study 

further contributes towards an understanding of why organisations struggle to implement a 

culture that will provide sustainable benefits and leans towards the empirical studies of change 

management and implementing change management in a South African context. 

1.1.5 Delimitations of the study 

This study is based on organisations within South Africa and have expanded internationally or 

into Africa. To determine the extent of a successful corporate culture which enables and 

promotes innovation, and which results in sustainability, the study focused on assessing the 

types of corporate cultures adopted and how this culture is engrained into the work-life of 

employees. The study also focused on how corporate culture and the adoption of innovations 

drives sustainability of South African organisations. The sample of organisations selected 

would large, small to medium size logistics companies within South Africa and where possible 

logistics and supply chain departments of organisations that manage their own supply chain 

within South Africa, Gauteng. The study excluded state owned enterprises, however, will 

leverage of research done in state owned enterprises to develop and enhance the theoretical 

framework.  



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1.1.6 Operational definitions 

Corporate Culture: An organisation's corporate culture influences a workers' work and 

engagement in activities (Hampden-Turner, 1992). It pertains to a collection of concepts and 

procedures that govern the interactions between management and employees within a firm, as 

well as how they conduct business with external parties. There are four major types of 

organisational culture: clan culture, adhocracy culture, market culture and hierarchy culture 

and each culture will have its own specific purpose (Seismic, 2023). 

Change management: Change management encompasses a company's approaches and tactics 

for defining and executing change within its internal and external activities. This involves 

establishing fundamental change procedures, providing training and support to individuals, and 

overseeing activities before and after the change to ensure successful implementation. 

(American Society for Quality, 2023). The process of using an organized method to move an 

organisation from one state to another in order to reap desired benefits or outcome (Hirsch, 

2023) 

Innovation:  Changes, whether large-scale (radical) or small-scale (incremental), innovations 

are deemed to have a significant impact on structural changes in specific sectors and market 

groups. With this manner, new production techniques are not always founded on fresh scientific 

findings. New methodologies can also be credited with the initial application of technologies 

that have already been employed in other industries. Since innovation is linked to the 

production of a product and its use, the definitions of this concept in world literature are 

founded on several tenets, and each group of definitions has distinctive features (Kotsemir et 

al., 2013). 

1.1.7 Structure of the dissertation  

• The introduction provides context of the influence corporate culture has on an 

organisation and the need for organisations to have a mindset of continual improvement 

in order to be competitive in the market.  

•  In the sections to follow a critical review of literature was performed to connect change 

management frameworks to selecting an appropriate corporate culture in the South 

African context. The literature also looked at corporate culture change management 

from a Western and Eastern perspectives to determine similarities and differences. 

Further identifying and understanding what cultures stimulate and generate 

opportunities for growth, continual improvement, a change management mindset, 

innovation and enhanced financial performance.  



9 
 

• The theoretical frameworks and theories to be applied, empirical evidence of change 

management for corporate culture in organisations, and a summary of the research's 

findings with useful recommendations and potential areas for further study are covered 

in the sections that follow. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 2: Literature Review  

2.1 Introduction  
 

Heraclitus, a Greek philosopher, was quoted in early 500 BC saying, "change is the only 

constant in life." Even before any technology or the first industrial revolution society and 

philosophers were aware of the concept of change and that in life whether corporate or 

otherwise, the human race would have to deal with change. Further, theorists have also noticed 

that humans prefer familiarity and convenience which prevents against changing of accustomed 

ways of doing things (Sung & Kim, 2021). A general shift of something from one stage to 

another is referred to as a "change" (IGI Global, 2023). Waraich and Bhardwaj (2007) stated 

that change is a condition of ongoing adjustments that a person or organisation will make in 

response to changes that must be made based on the current situation (Waraich & Bhardwaj, 

2007). Therefore, change can be said to be a continuous process whereby a person or an 

organisation will move from a current point of view or phase to a potentially better phase 

dependent on the factors which influence the change.  

 In the corporate world change is called organisational change and it is defined as the process 

whereby an organisation will alter a material component of the business such as its, not limited 

to, corporate culture, technology, infrastructure, or internal processes (Stobierski, 2020). To 

arrive at organisation change, systemic change management process and techniques must be 

adopted to achieve the desired organisational change goals set by an organisation (Sung & 

Kim, 2021). Change management is a mediating activity that enables a member of an 

organisation to participate in the change process while also attempting to overcome the 

resistance that plagues many change goals across various organisations. In essence, change 

starts when the elements that encourage change triumph over the those that prevent it (Sung & 

Kim, 2021). 

Organisational change management is the process by which organisational change is guided 

(Stobierski, 2020). In order for any organisation to adapt to changing economic and 

technological trends in their respective industries, they would need to put forward investments 

for implementing various changes (Errida et al., 2021). Errida (2021) also goes on to states that 

managing change is a complex process and often involves a high level of risk and as a result 

many organisations struggle with change management projects and often fail to realise the 

expected outcomes (Errida et al., 2021).  



11 
 

There have also been organisations globally over the last two decades which saw their own 

demise by not embracing change, this would include companies such as: 

• Kodak: Kodak coined the phrase the ‘Kodak moment’ and it became something that 

people were willing to spend on to savour and hold on to a moment in time through a 

photograph. Their core business was selling cameras and camera film. Surprisingly, 

Kodak developed the first prototype of digital cameras (Anthony, 2016). Kodak had 

invested in the digital camera technology and acquired a photo sharing site in 2001, but 

their focus was still to promote the printing of images, rather that the digital sharing 

and storage. Where Kodak failed was not due to investing in new technology, 

innovation and be part of the digital disruption, but rather that they were too focused 

on still making their existing business model work in an age that it was fading away. 

Kodak did not embrace change and employ critical change management principles to 

allow them to become more agile (Anthony, 2016)  

• Blockbuster: Blockbuster was a giant in video rentals in the USA. In the 2000s the 

internet and streaming services started to take off as a new medium of watching movies 

and content; and a new start-up Netflix were searching for new ways of getting DVD 

movies to customers via the postal service was struggling financially and approached 

Blockbuster to purchase them (Davis et al., 2013). Fast forward to 2014, Blockbuster 

filed for bankruptcy and could no longer maintain the physical store business model 

and Netflix moved into the online app streaming model.  

• Nokia: Nokia held the position of the best-selling mobile phone between 1998 and 

2007, which became its competitive advantage. Nokia saw a decline in sales as a result 

of the introduction of the Android and iOS mobile operating systems, which increased 

competition for them. As a result, they lost market share to Samsung, Apple, and 

Blackberry for high-end smartphones as well as to Chinese and Indian manufacturers 

for lower-end smartphones, which provided customers with high-end features at a lower 

price than Nokia (Joshi, 2020). Nokia was focused on their leading hardware, which 

would have been their biggest mistake as the customer base were attracted to improved 

software. After collaborating with Microsoft to bring in better software, Nokia failed to 

understand the market conditions and the need for stronger marketing strategies. As a 

result, they continued to lose market share, resources, capabilities, and competence. 

Joshi (2020) further attributes Nokia’s demise to internal politics where “Nokia’s 

culture of status lead to an atmosphere of shared fear” (Joshi, 2020). Economic and 



12 
 

structural variables were combined with the human aspect to create a "temporal 

myopia" that limited Nokia's capacity for innovation (Joshi, 2020). 

From a South African perspective there are prime examples of failure to change and adapt 

within our State-Owned Enterprises (SOEs). South African Airways, Denel, South African 

Broadcasting Corporation (SABC) are just a few of these SOEs. SOEs of South Africa continue 

to bleed financially due to a lack of corporate governance, neglect, poor decision-making, and 

inefficiencies (Business Tech, 2021) 

It is believed that the competitive advantage of an organisation not only relied on its ability and 

capacity to operate and deliver on results but also its ability to adapt and evolve, generated 

through its corporate or sometimes called organisational culture (Silwal, 2020).  

This qualitative study explored the influence corporate culture, as vehicle of change 

management, has on the adoption of innovation within South African logistics sector. The table 

below summarises past literature on organisational culture, change management and 

innovation. It focuses on identifying and comprehending research study problems, conceptual 

frameworks, sample sizes and research gaps. The research gap guides this qualitative study, 

aiming to fill these gaps by further research and the use of a semi-structured questionnaire to 

understand participants' perspectives on the research issue. 

Research Gaps: 

Table 1: Research gaps 

Author 

(Year) 

Organisationa

l problem 

Research 

Problem 

Conceptual 

frame used 

Populatio

n sample  

Research gap  

Jim 

Euchner 

(2022) 

Change 

management 

for 

organisational 

change  

Why big 

corporates 

are resistant 

to change? 

Game theory 

Pay off 

matrix 

Not 

applicable  

No practical 

research linked to 

companies  

Yaopeng 

Wang, 

Hisham 

Farag 

and 

Establishing a 

correlation 

between a 

creative 

What is the 

most 

appropriate 

corporate 

culture to 

Competing 

value 

framework 

(create, 

compete, 

Between 

2008 and 

2017, 

sample 

comprises 

How to adopt an 

adhocracy 

culture, how is it 

facilitated. No 

real 



13 
 

Wasim 

Ahmad 

(2021) 

culture and 

innovation 

adopt in an 

emerging 

market  

control, 

collaborate) 

all 

Chinese 

listed 

businesses 

on the 

Shanghai 

and 

Shenzhen 

stock 

markets. 

recommendations

. Very broad 

views. No 

African context. 

Julia C. 

Naranjo-

Valencia, 

Daniel 

Jiménez-

Jiménezb

, Raquel 

Sanz-

Valle 

(2015) 

How does 

culture 

positively 

influence 

innovation 

and financial 

performance 

and the 

indirect link 

between 

innovation 

and financial 

performance  

Evaluating 

the 

significance 

of 

organisationa

l culture in 

either 

promoting or 

hindering 

innovation 

and thus 

influencing 

company 

success. 

Competing 

value 

framework 

1600 

Spanish 

companie

s  

Concludes the 

best culture but 

lacks clear ideas 

on how to 

transform culture 

to enhance 

creativity and 

performance. 

Absence of 

African context 

Ronelda 

Visser 

(2005) 

How 

language 

impacts 

organisational 

culture  

Does one's 

native 

language 

affect how 

they perceive 

structure and 

make 

decisions? 

Western 

No link to 

innovation 

and 

performance. 

Looks at 

organisationa

l culture 

through the 

lens of 

Not 

applicable  

No link to 

innovation and 

performance. 

Looks at 

organisational 

culture through 

the lens of 

language, 

specific to the 



14 
 

Cape 

organisations' 

decision-

making 

procedures 

language, 

specific to 

the Western 

Cape. Focus 

on how 

cultural 

backgrounds 

impact 

conflict in 

the 

workplace. 

Western Cape. 

Focus on how 

cultural 

backgrounds 

impact conflict in 

the workplace. 

 

2.2 The influence of corporate culture, as vehicle of change management in the 

adoption of innovation.   
In literature corporate culture has been deemed as one of the elements that is able to inspire 

innovation and innovative behaviours within an organisation (Abdi et al., 2018). Additionally, 

innovation comprises new viewpoints on technological advancements, marketing strategies, 

and/or consumer behaviour (Bendak et al., 2020). Innovation can be radical or incremental, 

developed internally by businesses or borrowed from outside sources. Radical innovation may 

be more suited for long-term growth, but it is more challenging to adopt and generally riskier 

due to the unpredictability. However, because it is simpler to complete, incremental innovation 

is more suitable for making minor changes (Bendak et al., 2020). Researchers identified four 

cultural traits that have the potential to improve creativity in the literature study on the effects 

of culture on innovation, which are, innovation, flexibility, collaboration, and taking risks 

(Balkin et al., 2013). According to reports, some businesses work to increase cultural features 

that encourage innovation, such as resource accessibility, client focus, employee involvement, 

cooperation, continuous learning orientation, and flexibility, based on their present culture and 

line of business (Balkin et al., 2013; Bendak et al., 2020). 

Successful change requires the ability to use a collaborative approach as an inclusive leader to 

engage with different groups and gain support through active engagement. This involves being 

prepared to participate in discussions with a variety of organisations and individuals, using 

both formal and informal consultative approaches that build trust. These leaders display self-

confidence while responding to questions from critics and adeptly manage disagreements and 



15 
 

diverse perspectives (Kaufman, 2018). Engaging in collaboration with external partners 

improves innovation outcomes by enabling the exchange of knowledge, sharing of resources, 

and access to complementary expertise (Hu, Hart, & Cooke, 2008). 

2.3 Navigating change in a crisis  
The COVID-19 pandemic created an economic crisis in South Africa and across the globe. The 

pandemic also decimated the value of listed company shares on the Johannesburg Stock 

Exchange, which resulted in the listed market becoming very attractive to foreign investors due 

to the lower market value (Mahlaka, 2021). In the wake of the economic crisis and recent grey 

listing that South Africa has gone through, it would be thought that foreign investors would 

shy away from investing in South Africa, but it may not be the case with the recent spate of 

South African listed companies bought by international companies. Foreign investors seem to 

be more interested in the future opportunities and benefits that South African companies can 

provide to their global organisations (Mahlaka, 2021). The COVID-19 pandemic caused 

significant disruptions to global supply chains due to national lockdowns and port closures in 

several countries, limiting the transfer of products (Wolhuter, 2022). It also gave rise to an 

increase in adoption of innovation and other digital platforms to allow for work and commerce 

to continue, there was also a sharp increase in the adoption of e-commerce platforms 

(Whitehouse, 2020) 

A study by Kuteyi and Winkler (2022) indicates that removing logistical obstacles enables a 

greater number of suppliers to distribute more items, hence reducing monopolistic conditions 

prevalent in various industries. Utilising digital technologies in logistics enhances speed, 

efficiency, transparency, and facilitates expansion into underserved populations. It will enable 

nations in Sub-Saharan Africa to advance in development and significantly promote job 

creation and trade facilitation in conjunction with the AfCFTA agreement, which is fostering 

trade within the world's largest free trade zone (Kuteyi & Winkler, 2022). 

To solve South Africa's logistics crisis, a comprehensive strategy is needed that incorporates 

regulatory changes, private sector participation, and technological integration. Coetzee (2023) 

suggests a few ways in which this can be done:  

• Smart Ports: Introducing a digital tracking and clearing system in South Africa's ports 

might transform logistical operations. This technology aims to offer immediate 

visibility of freight flow, decrease congestion, and simplify processes. It establishes a 



16 
 

performance standard, focused on the efficiency of products entering and leaving the 

port to encourage ongoing enhancements (Coetzee, 2023). 

• Rail Line Concession: Privatising the rail system and introducing concession for the 

use of the rail system, this has been working for the road infrastructure along the N1, 

N3 and N4 (Coetzee, 2023).  

• Digitalisation: Digital solutions can improve interactions and collaboration among 

stakeholders, therefore decreasing lead times and enhancing overall efficiency 

(Coetzee, 2023). 

South Africa's development of a streamlined and functional logistics system is essential for the 

nation to operate efficiently as a community, not just for economic progress. An efficiently 

managed supply chain is crucial for commerce, influencing aspects such as employment 

prospects and the accessibility of necessary products (Coetzee, 2023). 

2.4  Corporate culture and talent management  
According to Mahajan (2019) organisations are placing more emphasis on talent management 

as a means of attaining a competitive edge. Corporate culture is linked to multiple functions 

within an organisation, one of which is the efficient management of talented individuals 

(Mahajan, 2019). Further studies by Kuchinke et.al (2019) introduces a conceptual framework 

that examines the dynamic correlation between talent management and organisational culture. 

This study investigates the interplay between diverse talent management strategies, such as 

recruiting, selection, development, and retention, and various aspects of organisational culture, 

including values, norms, and symbols (Kuchinke, Ardichvili, & Borchert, 2019). It was also 

noted that key mechanisms through which organisational culture influences talent management 

processes and outcomes, in a study conducted by Krajenbrink and Jansen (2016). These 

mechanisms serve as channels via which the culture of a business impacts its talent 

management methods and results, some examples include (Krajenbrink & Jansen, 2016):  

• Selection and Recruitment Practices 

• Employee Development and Training 

• Performance Management Systems 

• Promotion and Career Advancement 

• Employee Engagement and Retention 

• Leadership and Role Modelling 



17 
 

These mechanisms demonstrate how organisational culture affects many areas of talent 

management, shaping how companies attract, develop, engage, and retain their personnel. 

Organisations can maximize people management strategies and attain strategic objectives by 

comprehending these mechanisms and utilizing their culture (Krajenbrink & Jansen, 2016). 

2.5 Corporate culture and effective communication  
Effective communication is essential in the workplace since it has a profound impact on 

company culture and helps establish strong ideals. Creating a robust and efficient work 

atmosphere necessitates proficient communication infused with empathy and concern for 

others. The communication strategies and techniques employed by a company possess the 

ability to either cultivate or undermine its organisational culture and leaders have a crucial 

impact on a company's culture through the means of effective communication (Peters, 2023). 

Precise and efficient communication can lead to enhanced collaboration, heightened employee 

involvement, elevated production, and a more favourable work atmosphere. Conversely, 

inadequate communication can lead to ambiguity in goals, misinterpretations, diminished 

motivation, and a detrimental work environment (Peters, 2023). Establishing a culture of 

competence necessitates explicitly expressing the desired benchmarks for performance. In the 

absence of a clear understanding of these criteria, personnel decisions can appear arbitrary or, 

even worse, be misinterpreted as retribution for a lack of success. It is crucial for senior leaders 

and managers at all levels of the business to consistently and explicitly convey their 

expectations (Pisano, 2019). In research performed by Gularso and Subekti (2023) the authors 

emphasise that effective communication is essential in reducing the influence of 

transformational leadership on fostering an innovative culture within a corporation (Gularso & 

Subekti, 2023). Transparent communication is not only a skill to be obtained; it is a mentality 

and perspective that influences how leaders approach relationships with their teams. 

Developing transparent skills also requires a significant amount of time. It is important to 

remember that the objective is to make progress, rather than striving for perfection (Butler, 

2023). Transparency and effective communication are crucial elements in effective change 

management as it may bolster the credibility and reputation of the leader, while mitigating 

opposition and concern among employees. Transparency and effective communication have 

the potential to enhance involvement and dedication, while also promoting cooperation and 

creativity (Butler, 2023).  



18 
 

2.6 Corporate culture and customer satisfaction  
The culture of an organisation is shaped by the behaviours and attitudes of employees, and it 

is evident in all aspects of their actions. It infiltrates every client interaction and is frequently 

more significant than the product or service being offered. If a company possesses a 

distinguished culture, it is likely that this exceptional attribute is what initially attracts 

customers to your business. In contrast, a customer's perception will immediately detect a 

negative corporate culture. Regardless of the exceptional quality of your product or service, 

prospective customers are likely to continue exploring other options if your personnel exude a 

dismal culture. The culture of a company is the fundamental factor that determines whether a 

customer chooses to engage in business with you or not (Coleman, 2021). Building a customer 

centric culture within an organisation is a key element of driving specific behaviours among 

employees. Many companies prioritise their culture around product development or sales, often 

neglecting customer centricity, unless in specific areas like marketing. In order to effectively 

execute a customer-centric strategy and operating model, it is imperative for a firm to possess 

a culture that is in harmony with these principles. This entails executives actively fostering the 

required mindset and values among their staff (Yohn, 2018). 

2.7 Corporate culture and leadership  
Leaders shape corporate culture by establishing a framework of principles, convictions, and 

presumptions around the preferred methods of operation (Schein & Schein, 2017). Schein 

(2017) emphasizes the significance of ensuring that leadership is in harmony with the corporate 

culture. Leaders should exemplify and strengthen desired cultural values by their conduct, 

choices, and interaction (Schein & Schein, 2017). Gibbons and Roberts (2013) in their book, 

The handbook of organisational economics, highlight the importance of leaders leading by 

example. Leaders serve as examples to employees in the organisation and by the leaders’ 

behaviours and attitudes they can advocate for the types of behaviours they wish for the 

employees to embody (Gibbons & Roberts, 2013). The primary responsibility of leadership in 

shaping corporate culture is to cultivate a robust mission, effectively convey a distinct vision, 

and exemplify basic values that prioritize the well-being of individuals over financial gains. 

Leaders establish a common understanding of culture, which brings employees together and 

inspires them, giving significance to their job (Tenney, 2023). 

The work performed by Oke et al. (2009) examines how different leadership styles, behaviours, 

organisational climate, and team dynamics affect innovation. It highlights the significance of 

transformational, transactional and servant leadership in promoting creativity and innovation 



19 
 

(Oke, Munshi, & Walumbwa, 2009). It was also noted in literature by Adams et al. (2018) that 

there are four organisational values that foster innovation within a company, which are strategy, 

structure, support mechanisms, innovative-supportive behaviours, and communication. It was 

found that if these determinants are not endorsed within an organisation, innovation will not 

succeed (Adams, Nel, & Marnewick, 2018). Leadership for innovation involves management 

adopting innovation as a mindset, every employee is motivated to generate ideas that foster 

innovation (Zaragoza, 2023). Leadership facilitates the development of a culture focused on 

ongoing improvement and innovation. These leaders are anticipated to assist in constructing an 

organisation that is adaptable and receptive to innovation (Zaragoza, 2023). Organisations with 

high levels of trust promote collaboration, innovation, and risk-taking among employees, 

leading to greater success. In contrast, low-trust organisations tend to experience office politics 

and internal conflicts (Lewis, 2022). Leaders have a substantial impact on trust in organisations 

through the creation of a secure environment, promotion of transparency, setting clear 

objectives and encouraging collaboration and innovation (Lewis, 2022). 

2.8 Innovation in the logistics sector  
As we have seen from authors like Abdi (2018), Balkin (2013) and Bendak (2020), that having 

a corporate culture that encourages creativity, allows for flexibility, collaboration and taking 

risks will drive innovation in an organisation. Also, understanding the nature of innovation in 

the logistics industry is crucial.  

When delivering innovation in the logistics sector it is important to note that there has to be 

value, driven by the innovation and improvements in the sector or business as well as for the 

customers. Innovation is not only about doing things better, but also providing a quality output 

to the service or product. Through the adoption of new ways of working, technology and 

innovation strategies that touches all elements of the logistics business this can be achieved 

(Yi, 2023). Another reason why innovation becomes a crucial element of doing business in the 

logistics sector, is that it can also be risk driven, looking at improvements in the supply chain 

and overall logistics operations can reduce the risk of moving cargo. Wang et al. (2020) 

suggests that risks can be mitigated through enhancing an organisations innovation capability 

(Wang, Asian, Wood, & Wang, 2020).  

In a report by Adekunle and Ruth (2023), the paper recommends boosting investment in 

technology, efficiently integrating new and old technologies, establishing industry-specific 

standards, and expanding employee involvement to improve technology adoption in logistics 

management (Adekunle & Ruth, 2023). Deloitte's research further shows that cross-functional 



20 
 

teams are essential for creativity, adaptability, and market responsiveness, especially in 

organisations with advanced digital capabilities (Deloitte, 2022). Scutt (2019) emphasises that 

innovation is not about technology it is about talent acquisition and retainment, workplace 

culture and people-centric service models (Scutt, 2019) 

Tavasszy (2020) emphasises the significance of forecasting the effects of logistics advances on 

goods systems. The essay highlights the importance of comprehending and forecasting the 

impacts of logistics advances on freight systems to efficiently strategize and oversee 

transportation networks (Tavasszy, 2020). Freight systems are complex, interconnected 

networks influenced by various factors such as technological advancements, economic 

changes, and regulatory policies. There is a need for integrated models that consider multiple 

dimensions simultaneously, including technological, organisational, and behavioural aspects 

(Tavasszy, 2020). Tavasszy also recommends that it is crucial to take a long-term perspective 

when studying freight systems and logistics innovations. This involves considering potential 

future scenarios, technological advancements and socio-economic changes and also reducing 

the technical debt when delivering such solutions (Tavasszy, 2020). There are several 

technological advancements in the industry such as automation and robotics, the Internet of 

Things (IoT), artificial intelligence (AI), blockchain and drones (Tymoshchenko, 2024). 

2.9 Corporate culture and innovation  
Assessing how individuals in your organisation respond to failure can provide valuable insights 

when striving for innovation. If your organisation's culture involves blaming, shaming, and 

punishing, it is unlikely that people will feel safe exhibiting behaviours beyond strict 

conformity (Cancialosi, 2017). Genuine and transparent communication can only occur when 

individuals feel at ease expressing their authentic emotions. Facilitate interactions among 

individuals and provide a platform for them to engage in face-to-face discussions to exchange 

their thoughts. This will encourage and strengthen the behaviours needed to progress towards 

an innovative culture (Cancialosi, 2017). Corporate culture significantly influences creativity 

in a company. An innovative culture supports and empowers employees to think creatively and 

generate revolutionary ideas by providing the essential resources and freedom (Spyre, 2023). 

In contrast, in organisations with a culture that is not open to change and innovation, employees 

may feel restricted from taking risks and suggesting new ideas. This can hinder creativity and 

restrict the organisation's capacity to adjust to a swiftly evolving commercial environment 

(Spyre, 2023). 



21 
 

Corporate culture is essential for promoting innovation and shaping the organisational climate 

and employee attitudes. Nevertheless, growth can be impeded by variables such as hierarchy, 

bureaucracy, and reluctance to change. Leadership and ongoing learning are crucial for 

promoting innovation (Morcillo, Rodriguez-Anton, & Rubio, 2007). Empowering employees 

through the establishment of innovative objectives, cultivating leadership endorsement, and 

encouraging the exchange of knowledge, promotes interdisciplinary teams; collaborative idea 

generation sessions and embracing uncertainty. Fostering an environment of transparent 

communication, eliminating barriers between departments, and establishing channels for 

exchanging ideas are seen to be proven methods in fostering a corporate culture that embraces 

innovation. This will enable employees to participate in innovation and promote a culture of 

collaboration and knowledge sharing (Viltard & Acebo, 2018). In the study performed by 

Naranjo-Valencia et al. (2012) innovation is significantly influenced by organisational culture, 

which is characterized by openness, collaboration, and risk-taking. This supportive culture 

leads to the development of new products, services, and processes, ultimately enhancing 

company performance. Innovation acts as a mediator between organisational culture and 

performance, driving improved outcomes. Cultural dimensions like leadership support, 

employee empowerment, knowledge sharing, and adaptability contribute to this relationship 

(Naranjo-Valencia et al., 2012). 

Looking at the Competing Values Framework (CVF) designed by Robert Quinn and Kim 

Cameron (1999) the model focuses on four types of organisational cultures, each associated 

with unique characteristics, values, and benefits.  

 

Figure 2.1: Organisational cultures typology (Quinn & Cameron, 1999) 

 



22 
 

Clan Culture: 

• Emphasizes collaboration, teamwork, and employee development. 

• Benefits include high employee engagement, loyalty, and a supportive work environment. 

• Focuses on mentorship and employee development. 

Adhocracy Culture: 

• Encourages innovation, creativity, and adaptability. 

• Promotes continuous improvement and creativity. 

• Allows quick response to market changes and customer needs. 

• Emphasizes experimentation and learning. 

Market Culture: 

• Results-oriented, competitive, and focused on achieving external goals. 

• Benefits include high productivity, customer satisfaction, clear goals, and responsiveness 

to market trends. 

Hierarchy Culture: 

• Characterized by stability, control, and focus on internal processes. 

• Benefits include clear structure, efficiency, defined roles, and compliance with regulations 

and industry standards. 

Based on the CVF model it seems an external focus, promoting flexibility and discretion which 

is an adhocracy culture may be best suited to promote the adoption of innovative in an 

organisation.  

2.10 Innovation and continuous improvement 
Implementing innovation and continuous improvement strategies can help organisations 

enhance their businesses internally, creating a more efficient and productive work environment. 

Innovation and continuous improvement are sometimes used interchangeably, yet they have 

distinct characteristics (Chowdhury, 2018). Innovation is the effective transformation of novel 

ideas and information into fresh products, services, or procedures that provide added value to 

customers, an example of this is the invention of the light bulb. Whereas, continuous 

improvement is a systematic approach to pinpointing opportunities for optimising work and 

minimising inefficiencies in operational procedures (Chowdhury, 2018). Innovation is a 

groundbreaking and pioneering strategy, while continuous improvement is an incremental and 



23 
 

measuring technique to eliminate unnecessary elements (Chowdhury, 2018). Girdler (2023) 

believes in utilising a culture of continuous improvement can result in enhanced efficiency and 

productivity, ultimately leading to more profitability. Committing to innovation guarantees that 

your organisation has a structured approach to consistently create and improve goods and 

processes that yield favourable outcomes. The combination of these two elements provides 

significant advantages for your organisation's personnel, goods, processes, and financial 

performance (Girdler, 2023). 

Companies should allocate a portion of their research and development funds to incremental 

innovation rather than focusing solely on radical ideas. Consumers tend to more easily accept 

and buy marginally improved products rather than completely new ones, which gives firms a 

boost in revenue to support them as they develop more innovative products (Carleton, 2019). 

2.11 Theoretical and Conceptual Framework 

2.11.1 Introduction  

Logistics management in the supply chain process focuses on the efficient flow of goods, 

services, and information from the starting point to the endpoint to meet consumer demands. 

Logistics management is a crucial component that binds the supply chain together (Topolsek, 

Ciziuniene, & Ojstersek, 2018). Logistics is therefore a key consideration for every 

organisation providing goods or services, it becomes a critical element of delivering the product 

or service to the end consumer.  

In South Africa the Transport, Storage and Communication sectors contributed 9.3% to the 

country's Gross Domestic Product (GDP) and Transport alone contributed 6.5% during 2017 

(South African Department of Transport, 2017). During 2022, the South African GDP grew by 

2% (0.3% pre-pandemic), of which the Transport sector contributed 31% to the overall growth 

of the economy, growing by 8.6% as a standalone sector (Statistics SA, 2022). The resultant 

percentage contribution to economic growth is the second highest contributor, the logistics and 

transportation sector is therefore a key enabler of economic growth in South Africa. For South 

Africa to participate in the global markets, the supply chain supporting the product and service 

delivery needs to be world class to allow the efficient and effective delivery of such goods and 

services (Ittmann & King, 2010). Supply chain management and logistics play a major role in 

a country's competitiveness and are strongly dependent on the economy (Ittmann & King, 

2010). 



24 
 

In a 2019 article, McKinsey co-authors, Magwentshu and Rajagopaul (2019), expressed the 

need to harness technology for growth in South Africa (Magwentshu & Rajagopaul, 2019). The 

analysis by McKinsey also highlighted that technology related gains could in fact triple the 

productivity growth of South Africa, this certainly goes against the fear that the introduction 

of technology will reduce job opportunities. By 2030, there is a forecasted potential net increase 

of about 1.2 million job opportunities in South Africa. This growth is attributed to productivity 

improvements, strategic infrastructural advancements, and the creation of new, yet 

unidentified, work roles. However, these gains are not certain (Magwentshu & Rajagopaul, 

2019). Businesses in South Africa would need to move quickly to seize these opportunities so 

they could benefit from current and emerging technologies to spur innovation and growth in 

the face of a bleak future. Magwentshu and Rajagopaul (2019) also state that in order for South 

African companies to be ahead of the Forth Industrial Revolution they would need to change 

the way things are being done in three (3) key areas: business strategy, skills development and 

ways of working (Magwentshu & Rajagopaul, 2019). Post the publication of the Magwentshu 

and Rajagopaul (2019) article COVID-19 acted as a catalyst for innovation for South African 

businesses including transport and logistics businesses, where organisations had begun to 

embrace automation and technology in order to increase productivity, reduce costs, methods to 

give workers meaningful work-life balance, and adopt sustainable practices to protect the 

environment (Mahlaka, 2021). 

Organisations are always looking for novel approaches to success and gaining a competitive 

edge. The concepts of supply chain management and logistics are crucial in creating such an 

edge (Matwiejczuk et al, 2020). As mentioned in earlier chapters, innovation is an enabler for 

sustainable competitive advantage. Leading organisations are creating competitive advantages 

by prioritising benefits such as sustainable and circular product cycles, creative and fair 

employment models, transparent sourcing, and investment in innovation (Boston & Ivanova, 

2021). They are also integrating sustainability into various business functions and along the 

entire value chain (Boston & Ivanova, 2021). It can therefore be said that innovative solutions 

can create competitive advantage for an organisation.  

The purpose of this study is to evaluate and understand the drivers of change, for Logistics 

organisations in South Africa, to become innovative and generate a sustainable competitive 

advantage and improved performance as a result. We have already established from literature 

that both innovation and sustainability strategies provide a company with a competitive 

advantage in the global markets. The theoretical underpinnings of this study can be viewed 



25 
 

through different lenses, that being the Diffusion of Innovation Theory (DOI) and Dynamic 

Capabilities Theory (DCT). Through exploring the framework of these two theories, elements 

from both theories can possibly be extracted to then guide the development of a conceptual 

framework for the purposes of this study.  

2.11.2 Theoretical Framework: Diffusion of Innovation Theory  

One of the oldest social science ideas, the diffusion of innovation theory (DOI) was first 

proposed by Rogers in 1962 and has since been one of the most extensively used theories for 

innovation (Rogers, 1962). When describing how an idea or product progressively gains 

momentum before diffusing (or spreading) among a specific demographic or social system, it 

originally occurred in communication (Faisal & Idris, 2020). The model introduces 5 stages of 

innovation from its inception to its prosperity. The stages are:  

(1) the knowledge stage, which denotes the innovation's exposure. 

(2) the persuasion stage, which establishes favourable or unfavourable attitudes. 

(3) the decision stage, during which an individual makes decisions that result in either 

adopting or rejecting the innovation. 

(4) the implementation stage, which denotes the innovation's application; and 

(5) the confirmation stage, during which the innovation is reinforced. (Taherdoost, 2018). 

These stages are passed at different rates of innovation which is dependent primarily on the 

characteristics of the adopters. Xia et al. (2022) further noted that the adoption also relies on a 

person's capacity to see an idea, behaviour, or product as innovative or inventive, which enables 

dispersion. The theory claims that people accept a new concept, habit, or product as part of a 

social system as a result of this spread (Xia, Wu, & Zhang, 2022). Therefore, the DOI theory 

focuses on the adoption of innovation from a social aspect, when the innovative idea or 

technology has been released and the rate at which acceptance is gained among industries and 

communities (Xia, Wu, & Zhang, 2022).  

Literature on the DOI theory highlights that the theory does not particularly cover the drivers 

of change for an organisation to become innovative, but rather focuses on the strategies that 

can be used to appeal to different adopter categories when promoting innovation (Faisal & 

Idris, 2020). In other work performed by Alyoubi and Yamin (2021), a connection is drawn 

between the effects of the DOI theory on the performance of an organisation and its ability to 

achieve strategic goals. It has been found to be a positive correlation between the 

implementation on DOI theory at an organisation and the organisations ability to achieve 



26 
 

strategic goals to improve company performance (Alyoubi & Yamin, 2021). Dahnil et al. 

(2014) also supports that the adopter characteristics have an influence on the rate of the 

diffusion of innovation and therefore also explains the time aspect of innovation diffusion 

(Dahnil et al., 2014). The DOI theory centres around the perceived usefulness, compatibility 

and complexity of the innovation or technology to the adopter, where a negative relationship 

exists between these three elements and the adoption of technology, the adoption is weak or 

limited, however Faisal and Idris (2020) in their quantitative study proved that there is a 

positive relationship between the perceived usefulness, compatibility and complexity of 

technology and the rate at which it is adopted (Faisal & Idris, 2020). This therefore highlights 

the importance of the users or adopters understanding of technology in order to guide the 

organisation to make strategic decisions to improve their competitive advantage (Makovhololo 

& Batyashe, 2017). 

This study aims to identify the factors that motivate South African logistics organisations to 

implement innovative approaches, whether technology-driven or not, in order to achieve a 

sustained competitive edge. Literature on DOI theory provides evidence that change can be 

influenced by the adopters’ perceptions over the technology which in tale also influences the 

rate at which innovation is adopted (Stawicka, 2021; Faisal & Idris, 2020; Dahnil, Marzuki, 

Langgat, & Fabeil, 2014). It can further be concluded that corporate culture plays a significant 

role in the adoption of innovation (Tolba & Mourad, 2011; Jaiswal & Zane, 2022). 

2.11.3 Theoretical Framework: Dynamic Capabilities Theory  

Organisations require dynamic capabilities to adapt to rapidly changing circumstances by 

integrating, creating, and reconfiguring internal and external competences to maintain their 

competitive edge (Teece, Pisano, & Shuen, 1997). Teece (2007) further stated that dynamic 

capabilities directly handle behavioural theory-based issues such organisational growth, 

routines and processes, organisational learning, and managerial decision-making (Teece D. J., 

2007). There is also research undertaken by Eisenhardt and Martin (2000) that clearly examines 

the mechanisms underlying dynamic capabilities via the prism of organisation and behavioural 

theory (Eisenhardt & Martin, 2000). The DCT concept is also rooted in the Resource-Based 

View (RBV), which examines an organisation’s ability to generate competitive advantage from 

its existing resources whether tangible or intangible in nature (Helfat & Peteraf, 2009). Teece 

(2007) also recognises dynamic capabilities in contrast to ordinary capabilities, as 

idiosyncratic: they are unique to each organisation and are found in their past. This therefore 

indicates that competitors to any organisation would be looking to mastering this dynamic 



27 
 

capability/ies and it would potentially take them years to get there, as they would not 

necessarily have the insights to the organisations past and current capabilities, further 

illustrating that the use of dynamic capabilities will cause the organisation to be first to market 

in delivering a particular good or service to its customer and thus potentially leverage the 

benefits thereof through improved organisational performance (Teece D. J., 2007).  

Within the transport and logistics sector change is prevalent and generally a constant, as an 

example, the impact of COVID-19 required several logistics organisations (and other sectors) 

to adapt to the changing environment and find means and ways to deal with local and global 

logistical delays and resource constraints (Herold et al., 2021). Therefore, highlighting that 

adaptation to constrained environments is possible through employing various strategies and 

create unique methods to work under limits by putting an emphasis on innovation and 

supporting creative problem-solving. Organisations can adjust to resource limits by building an 

innovation culture and encouraging experimentation (Amabile, 1996). 

The term "micro-foundation" in dynamic capability research refers to internal organisational 

variables that serve as a foundation for creating dynamic capabilities (Teece D. J., 2007). Teece 

(2007) further clarifies the terminology of micro-foundation by using the framework of sensing, 

seizing and transforming, this framework has also been widely used in later dynamic capabilities 

studies (Helfat & Peteraf, 2009). Teece (2007) also claimed, that rather than assessing and 

improving the current resource base, establishing dynamic capabilities is mostly about 

perceiving and seizing new opportunities, as well as converting or reconfiguring resources 

accordingly, to boost performance. Teece (2007) maintains that although sensing, seizing, and 

converting actions are inherently entrepreneurial, they are not only relevant to start-up 

businesses but also to larger corporations and explains how positive outcomes can be used in 

place of each other. However, also illustrating that it is unlikely for a single person to possess 

the micro-foundations for sensing, seizing, and transformation, it is suggested that teams or 

groups of people be used in order to leverage dynamic capabilities (Teece D. J., 2007). 

Sensing: is defined as a process of scanning, creation, learning, and interpretive activity (Helfat 

& Peteraf, 2009; Teece D. J., 2007) 

Seizing: it is defined as the process in which significant resources are invested to address fresh 

opportunities and dangers that are discovered through sensing (Teece D. J., 2007)  

Transforming: also known as reconfiguring, can be defined as the organisations capacity to set 

up resources so as not to become static and unresponsive to future changes (Teece D. J., 2007) 



28 
 

From the historical literature analysed above it has been established that dynamic capabilities 

are foundational to transformation initiatives of any organisation, whether choosing to transform 

through technology, culture or methods and practices (Ellstrom et al., 2022). The DCT 

theoretical framework is focused on the ability of the organisation to grow internally using its 

own resources and learning capabilities (Helfat & Peteraf, 2009) and therefore provides a 

consistent method for examining digital transformation, which takes into account the significant 

influence that digital technologies have had and will continue to have on corporate performance 

(Warner & Wager, 2019) 

The aim of this study is to is to identify the factors that lead South African logistics companies 

to embrace novel practices, whether technological or not, to gain a sustained competitive 

advantage. DCT focuses on an individual or organisations desire and need to challenge the 

internal organisational status quo, but also the level of influence required to tip the scales and 

allow for transformation within the organisation (Kurtmollaiev, 2020). The micro-foundations 

or pillars of DCT particularly lean on internal resources and learning (Teece D. J., 2007). An 

element of internal resources are the people of the organisation and Costello and Plester (2020) 

suggest that learning or e-learning among employees, which are also considered to be resources 

within an organisation, are more widely adopted in a culture that supports learning practices 

such as a  market and adhocracy cultures (Costello & Plester, 2020). This is also consistent with 

organisations that exhibit high levels of dynamic capability, especially given that both ideas 

share the same characteristics of flexible architecture and an external focus (Teece D. J., 2007). 

This further suggests that organisational culture can influence members of an organisation on 

how to recognize, react to, and adapt to ongoing environmental change (Schein & Schein, 2017). 

2.11.4 Conceptual framework for innovation and sustainability  

The study analysed the change drivers in the adoption of innovation strategies through the 

theoretical lens of Dynamic Capabilities Theory (DCT) and Diffusion of Innovation Theory 

(DOI), both these theories focus on transformation of an organisation and specifically touch on 

the importance of organisational culture as a driver of transformation and change in the 

adoption of innovation and sustainability (Teece, Pisano, & Shuen, 1997; Teece D. J., 2007; 

Schein & Schein, 2017; Costello & Plester, 2020; Kurtmollaiev, 2020; Faisal & Idris, 2020; 

Jaiswal & Zane, 2022). It is therefore important to introduce Organisational Culture Change 

and Management Capabilities as concepts into the conceptual framework to enhance the 

framework through an understanding that Organisational change through a Corporate Culture 

change influenced by Management Capabilities, which is managements’ ability to influence 



29 
 

and drive change initiatives will cause the organisation to potentially effectively execute 

strategies which will enable change and continuous improvement to deliver on different 

innovations (technology, green innovation or sustainability). 

 

Figure 1.2: Conceptual Framework 

 

2.12 Summary 
Corporate culture is essential for fostering creativity and inventive behaviours in an 

organisation. Innovation can be either radical or incremental and can be generated domestically 

or acquired from external sources. This study sought to identify the factors that prompt 

transformation in Logistics businesses in South Africa to foster innovation, achieve a 

sustainable competitive edge, and enhance performance. Implementing innovative and 

sustainable tactics gives a company a competitive edge in international marketplaces. 

Introducing Organisational Culture Change and Management Capabilities enhances the 

conceptual framework for innovation and sustainability. This would allow organisations to 

efficiently implement tactics that facilitate change and ongoing improvement to achieve 

various innovations. 

 

 

 

 

 



30 
 

Chapter 3: Research Methodology  

3.1 Introduction 
This chapter focuses on the specific methods and techniques that can be utilised to analyse the 

data gathered for this study and also critically assess the validity and reliability of this data. 

The various methods to perform the study will be analysed and the best option to evaluate the 

conceptual framework will be chosen. It is important that the veracity and legitimacy of the 

participants' experiences and perceptions of how corporate culture influences the adoption of 

innovation while also taking the fundamental tenets of doing such research  into account. 

(Cropley, 2022). This chapter highlights the research approach, paradigm, design, and 

collection methods, as well as analysis and ethical considerations used to execute this study.   

3.2 Research Approach 
Research approaches are systematic strategies for conducting studies, encompassing 

overarching principles and specific techniques for collecting, analysing, and interpreting data. 

A research approach is chosen based on the nature of the topic the study aims to address 

(Creswell, Research Design: Qualitative, Quantitative and Mixed Methods Approaches (4th 

ed.), 2014).   

There are three distinctive research approaches, namely, qualitative, quantitative and mix 

methods research (Creswell, 2009).  

• Qualitative research has been defined by Corbin and Strauss (2008) as any research 

methodology that results in conclusions that cannot be quantified or reached 

statistically (Corbin & Strauss, 2008). It is a technique for analysing and understanding 

the importance that various individuals or groups place on social or human problems, 

and the process may involve asking participants questions to gather information. 

(Creswell, Research Design: Qualitative, Quantitative and Mixed Methods Approaches 

(4th ed.), 2014). Instead of concentrating on what functions and directing questions 

more towards the details from respondents about the who, how, and why, the use of 

qualitative approach improves knowledge of why social phenomena exist and behave 

in the ways they do ( Al-Ababneh, 2020; Busetto, Wick, & Gumbinger, 2020) 

• Quantitative research focuses on testing theories through observing the relationship 

between variables (Creswell, Research Design: Qualitative, Quantitative and Mixed 

Methods Approaches (4th ed.), 2014). It is a systematic investigation of phenomena 

using numerical data and statistical analyses, where data is collected and analysed in a 

structure manner to determine trends, patterns, and relationships (Creswell, Research 



31 
 

Design Qualitative, Quantitative and Mixed Methods Approaches, 2009). Quantitative 

research is founded on objectivity and replicability, it allows researchers to replicate 

the study and verify findings and enhancing the credibility of the research over time 

(Bryman, 2016) 

• Mixed methods research combines qualitative and quantitative research methodologies. 

Creswell (2014) states that integrating qualitative and quantitative methods offers a 

more thorough comprehension of a research issue compared to using each method 

independently (Creswell, Research Design: Qualitative, Quantitative and Mixed 

Methods Approaches (4th ed.), 2014). A benefit of using the mixed methods approach 

is creating triangulation to enhance the confidence of the study (Hassan, 2022). 

For the purposes of this study a qualitative research approach has been adopted. This approach 

has been chosen because it allows for the collation of information directly from the participants 

of the study and develop a deeper understanding of the research problem (Creswell, 2014). It 

provides a detail description of the participants thoughts, feelings, opinions, experiences, 

actions, and interpretations on the matter (Rahman S. , 2017). As the study further focuses on 

corporate culture and change management it is important to understand the various views and 

perspectives there are in the industry in the adoption of innovation, since as human beings each 

person is very likely to approach matters in different ways to achieve success. This highlights 

that there are multiple socially constructed realities and different people approach these 

realities in numerous ways and further emphasising that reality is subjective (Rehman & 

Alharthi, 2016). Therefore, a qualitative research approach has been adopted to examine how 

corporate culture can be used as a vehicle of change management in the adoption of innovation 

in the Logistics industry of South Africa.  

The study has been guided by the research questions and statements in Chapter 1, sub-section 

1.1.2 

A qualitative study can follow either a inductive or deductive reasoning as an approach to test 

or confirm theories and of an observed social phenomenon ( Al-Ababneh, 2020). Deductive 

reasoning is seen to be more of a top-down approach and can be used when research focuses 

on theory development and hypothesis testing, where the research strategy has been designed 

to test this hypothesis and is predominantly used in scientific testing ( Al-Ababneh, 2020; 

Sekaran & Bougie, 2016; Weisberger & Bradford, 2023). Inductive reasoning operates in the 

opposite direction to deductive reasoning whereby it uses a bottom-up approach to generate 



32 
 

new premises, or hypotheses, based on observed patterns. Conclusions are drawn from the data, 

where there are several observations to find a pattern, generalize it, and then deduce an 

explanation or a theory (Weisberger & Bradford, 2023). 

This study aims to evaluate and understand the drivers of change, for Logistics organisations 

in South Africa, to become innovative and generate a sustainable competitive advantage and 

improved performance as a result. With the understanding that reality is subjective and the 

approach of a qualitative study, a clear interpretation of the participants responses to the study 

needed to be deduced which in essence means the assumptions or perceptions of participants 

must be supported by literature building on these various ideas to draw on conclusions. We are 

also working with human beings which are emotional creatures, therefore responses are also 

likely to come from a place of emotion, to make a point (Bradford, Weisberger, & Lanese, 

2024). Using the semi-structured interview guide as a basis of testing the hypothesis, the aim 

is to move from theory, to specific, to the observations from the responses of participants 

(Bradford, Weisberger, & Lanese, 2024).  

This study has therefore followed a deductive reasoning approach to appropriately provide 

meaning to the responses received through qualitative research and to help maintain the focus 

of the research (Bingham, 2022). 

3.3 Research Paradigm 
Researchers work to comprehend and communicate people's views about reality's nature, what 

can be learned about it, and methods for gaining this information. (Rehman & Alharthi, 2016). 

Research paradigms are a global perspective or philosophical framework for research that is 

based on the ontology of beliefs and assumptions. The paradigms may be based on particular 

standards or characteristics in a profession or even on an individual's personal convictions (Ulz, 

2023). By selecting a certain paradigm, the researcher avoids focusing on their own 

philosophical competence and chooses a more effective construct than other possibilities (Rahi, 

2017). 

Commonly used research paradigms are positivism, interpretivism, advocacy and pragmatism 

(Rahi, 2017).  

• Positivism is concerned in building a comprehensive social system that employs 

scientific methods to examine society and its inhabitants in order to their advantage. 

Positivism is grounded in actual experience, not conjecture ( Al-Ababneh, 2020). It also 

has to do with how stable the study's findings are over time and space, as well as how 



33 
 

consistent they are. To find variables and broad trends, quantitative research employs 

these criteria to carry out social surveys and experiments (Wang Y. , 2020). 

• According to interpretivism, human beings and knowledge are interconnected, and 

subjective epistemology and relativist ontology are both taken into consideration 

(Junjie & Yingxin, 2022). It focuses more on the meaning, voice, perspective, 

experience, thoughts, and feelings that are communicated by the individual and 

investigates the relationship between the research and the research subject (Moustakas, 

1994). 

• Researchers who held postpositivist presumptions (which contradict the positivist idea 

that a researcher may objectively study society) to be true, gave rise to advocacy or 

participatory paradigms (Panhwar et al., 2017). In the 1980s and 1990s, social justice 

issues that needed to be addressed or imposed structural rules and theories that did not 

fit all members of our society gave rise to this approach (Creswell, 2009). To enable 

this research to provide a reform agenda that could alter the lives of the research 

participants, this vision must be tied to politics, political agenda, and legislation 

(Creswell, 2009). 

• A typical research paradigm in the social sciences is pragmatics, which focuses on using 

principles, concepts, procedures, or a combination of these approaches to solve real-

world research issues (Allemang, Sitter, & Dimitropoulos, 2021). 

The aim of this study is to identify, understand and evaluate the factors that lead South African 

logistics companies to embrace novel practices, whether technological or not, to gain a 

sustained competitive advantage. The premise that there is multiple socially created realities 

and that people will view these realities in various and subjective ways will further guide this 

investigation (Rehman & Alharthi, 2016). Every organisation is different and will thus identify 

the best practice approaches to use to ensure value is achieved through the strategies employed. 

Since reality is subjective and may be understood in various ways, so can strategically aims 

and objectives (Wang Y. , 2020; Allemang, Sitter, & Dimitropoulos, 2021). A fundamental 

element of the study considers management capabilities and organisational culture change, 

both of which are driven by perception and understanding of how best to motivate a workforce 

to deliver on strategic goals and as a result can be interpreted and implemented differently 

either delivering or not delivering the desired results (Wijethilake, Upadhaya, & Lama, 2023). 

The interpretivism paradigm is regarded suitable for this research considering the goals and 

nature of the investigation. The use of qualitative research methods to better understand, 



34 
 

contextualize, and interpret a study's developmental patterns rather than its findings is 

encouraged by the interpretivism school of thought (Nassaji, 2020). Due to the richness of the 

context, authenticity of the details, and narrative quality of this study, the interpretivism 

paradigm has been applied in an effort to generate deductive generalisations from the themes 

and relationships discovered from student experiences in order to develop new theories as part 

of the study (Penaloza, Viscont, & Toulouse, 2020). The interpretivism paradigm is consistent 

with the study's goals and research questions, and it has gained recognition as a powerful 

framework that may be applied in other qualitative studies (Yadav, 2021). 

3.4 Research design 
The selection of research design is contingent upon the research's objective, with three main 

categories being exploratory, descriptive, and explanatory studies (Saunders, Lewis, & 

Thornhill, 2009). Research design is planning for data gathering, measurement, and analysis 

developed to address the study objectives (Sekaran & Bougie, 2016).  

This study leans towards a descriptive study, as descriptive studies involve collecting data to 

describe and summarize the characteristics, behaviours, or conditions of a specific phenomenon 

(Burns & Grove, 2021). There is a substantial amount of literature on innovation, change 

management, and corporate culture that can be utilised to enrich the research. A qualitative 

research method was therefore chosen to answer the study questions.  

Qualitative research is also described to align more with an interview type research approach 

to gather evidence on the research problem (Creswell, 2014). Interviews are a frequently used 

data collection tool in qualitative research. Interviews help researchers better comprehend the 

facial expressions and body language of research participants. Knowing their unique 

perspectives, attitudes, and values can also be highly beneficial (Rahman, 2023) 

There are two methods for conducting interviews: semi-structured and structured, and they 

differ in terms of how flexible and standardized they are ( Al-Ababneh, 2020). Structured 

interviews stick to a prepared set of questions that are posed to each participant in the same 

way and in the same order. The interviewer has little leeway to stray from the scripted questions 

or inquire further than they are intended. Through comparability, this method seeks to establish 

consistency across participants and facilitates data analysis (Gill et al. 2008). A flexible 

interview guide or series of questions that serve as a general outline for the interview is used 

in semi-structured interviews. The interviewer is free to delve into further subjects, press for 

more in-depth answers, and let discussions be led by the participants, though. This method 



35 
 

allows for some flexibility and customization to the unique environment and research goals 

(Smith, 2015).  

This study adopted a semi-structured interview approach, as it allowed the researcher to prompt 

interviewees for examples and elaborations to their responses. With research subjects, 

researchers can build strong relationships, this can help the latter feel at ease and involved in 

the process, which should ultimately produce excellent replies (Rahman, 2023). 

3.5 Data collection  
Data is gathered for qualitative research using qualitative data collection methods like 

interviews, field notes, diaries, observations, etc. (Nassaji, 2020). A semi-structured interview 

guide was used as the main method of data collection for this study, as it gave participants 

some level of assurance that the questions asked will not cause any intellectual property leakage 

on the part of the organisation where they are employed. (Kumar, 2019). By using semi-

structured interviews as a method of data collection, the researcher was also be able to obtain 

the pertinent data directly from an industry source to answer the research questions while also 

verifying the accuracy and dependability of the information received. (Flick, 2018).  

3.5.1 Population and sample 

The population group for this study were employees of Logistics organisations across South 

Africa. There is no specific case study on a particular Logistics organisation, but rather an array 

of large and small to medium organisations which was included in the study. Of the 

organisations in concern the following subset of employees were selected for interviews: 

- Managerial and Senior Managerial employees: managers of teams who have influence 

on the rate of adoption within the teams and those who set the strategy and tone for the 

organisation in terms of innovation and culture.  

A sample of between 9 to 15 participants was purposefully sampled from the population and 

interviewed. Of the intended sample of executives, senior managers, and middle managers, 

only 12 were available owing to schedule difficulties and public holidays. 

3.5.2 Research instrument  

The research instrument was a semi-constructed interview guideline consisting of questions 

which are guided by the research questions of the study. The interview guide has been 

developed for the subset of employee.  

- Managerial and Senior Managerial employees: see Appendix A  



36 
 

3.5.3 Procedure for data collection 

The researcher approached the selection of employees, which form part of the sample, from 

the respective Logistics organisations in South Africa. The researchers’ instrument was tested 

with two initial participants so that the research instrument can be refined to enhance the 

outcomes for the remainder of the study. Contact was be made with the chosen participants via 

email, explaining the research objectives and obligations of the researcher to conduct ethical 

research. Any participant who objected to participate in the study, were excluded accordingly 

and replacement participants were obtained. Where participants have accepted to be part of the 

interviews, virtual or face to face meetings were set up at the convenience of the participant. 

Meetings were set up using Microsoft Outlook to secure the times in the participants diary. 

Permission was requested from the participant to record the interview session for the purposes 

of data collection. The semi-structured interview schedule was used to guide the interview. 

Data collection was done by the researcher by taking down notes during the course of the 

interview and post the interview by using the audio recordings permitted by the participant to 

substitute the information gathered.  

3.6 Data analysis  
This study used a predetermined template to prepare, organize and analyse the data from 

participants. A thematic analysis approach was followed to analyse and interpret the data 

collected from participants. Thematic analysis was used in research to identify patterns, themes, 

and categories in the data (Bougie, 2019). In qualitative research it is used to understand and 

explain patterns and themes by using deductive reasoning by making sense of and aligning the 

information collected to determine whether propositions based on the conceptual framework, 

deduce whether there is any connection between corporate culture, change management and 

innovation (Kumar, 2019). When performing a qualitative study, the use of a deductive 

approach to research requires applying a predetermined set of codes to the data, which will be 

deduced from the conceptual framework and used as an organisational tool (Bingham, 2022). 

The thematic framework still requires a process to be followed which was employed in this 

study: 

1. Acquaint yourself with the information  

2. Generate codes  

3. Look for themes  

4. Review themes and codes 

5. Define and name themes  



37 
 

6. Produce a report  

3.7 Ethical considerations  
The University of Witwatersrand's ethical guidelines were strictly followed in this study. 

Permission from the relevant interviewees was acquired in order to undertake this research. 

Additionally, approval was requested from the Wits Business School Ethics Committee, and 

the study completely adhered to their rules. Additionally, the researcher conducted themselves 

in a way that doesn't damage the reputation of the University of Witwatersrand. By following 

these ethical guidelines, the study maintained the trust of the participants and the general 

public, and the results are deemed to be reliable, legitimate, and develop this field of study. In 

this study, the following moral guidelines were followed. 

3.7.1 Informed Consent  

The importance of informed consent in ensuring that participants are aware of the study's 

objectives, the advantages and dangers of participation, and their right to leave the study at any 

time. Before agreeing to participate in the study, participants were given all necessary 

information, and had an opportunity to clarify any uncertainties before continuing to participate 

in the study.  

3.7.2 Voluntary participation 

Participants had the choice to voluntarily participate in the study. Participants were notified 

that they are not required to take part in the study and can withdraw at any moment without 

repercussions. Every participant signed a consent form confirming their voluntary 

participation. 

3.7.3 Confidentiality and Anonymity 

Confidentiality and anonymity are critical in protecting the privacy of the participants. The 

researcher has an obligation to ensure that all participants information and responses are kept 

confidential. There was no personal information collected as part of this study and all 

requirements of the Protection of Personal Information Act of 2013 was adhered to. Anonymity 

was ensured, and participants will not be asked to provide their names, addresses, or identity 

numbers. 

3.7.4 Data management 

Data management is a crucial part of maintaining the confidentiality and integrity the data 

collected from participants. All data was treated with high confidentiality and complied with 

all data protection requirements. Data collected was only used for the purposes of this study. 



38 
 

All data is securely stored by the researcher and password protected. The researcher also 

ensured that there were no breaches of data during the course of this study.  

3.8 Summary 
This study used a qualitative research methodology to investigate the impact of corporate 

culture as a vehicle of change management within the logistics industry in South Africa. 

Deductive reasoning is employed to evaluate ideas and observations, facilitating a 

comprehensive comprehension of the study issue and the diverse viewpoints on innovation 

adoption. This study employed interpretivism to derive logical generalisations from the rich 

context, authenticity and narrate quality experiences, through the adoption of a semi-structured 

interview guideline. The interviews were documented through audio recordings and notes 

taken by the researcher during the sessions. In addition, all inquiries adhered fully to the ethical 

rules of the University of Witwatersrand. Consent from the appropriate interviewees is 

necessary to conduct this research. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 4: Presentation of findings 
 

4.1 Introduction  
To address the research questions and reach a logical conclusion and suggestions, this chapter 

presents all of the findings and analyses of the qualitative study that was carried out with willing 

participants. The interview responses are dissected and analysed to find and comprehend any 

consensus or divergence on the research subject. With an objective focus on the respondents' 

perspectives, comprehension, experience, and knowledge of the research issue, the findings are 

presented and discussed.   

4.2 Demographics 
Using the purposive sampling technique 15 interviewees were initiall