Page 11 - TWIMS Posters 2023

THE CHALLENGES OF DIGITAL BACKGROUND FINDINGS

TECHNOLOGY ADOPTION Manufacturing SMEs make a significant contribution to the South African economy, but It is suggested that the adoption of DTs is only one step in a virtuous cycle enabling firms
to access and process greater amounts of information, thereby improving their ability to
face competitiveness challenges. One of these challenges relates to the adoption of
sense opportunities and threats. This study highlighted the role of outside influences,
Digital Technologies (DTs). Several studies have identified use-cases for DTs; and

described how international manufacturers have leveraged these technologies to secure short term survival considerations, perceptions of platforms, lack of resources to use the
technology, fear of theft and cybercrime and the owner or manager’s mindset towards DT
competitive advantage. However, the adoption of DTs by South African manufacturing
WITHIN A GROUP OF SOUTH SMEs remains under-researched. It is unclear whether progress is being made. Literature as critical in the adoption cycle.

has identified several factors which inhibit the adoption of DTs in manufacturing firms,

but several key factors are less researched: owner/manager mindsets towards DTs; Figure 1: Proposed model of digital technology adoption by
AFRICAN MANUFACTURING perceptions of digital platform openness; and the ease of exchanging data in a digitalised SMEs in the Manufacturing Sector

business model. In this study, we explore the adoption of DTs by a group of South African

manufacturing SMEs, and the underlying reasons for inertia and/or progress. We also
Fear of
Physical Theft
explore the strategies used by SMEs when adopting DTs, and how owner/manager
SMES mindsets and platform openness influence adoption. Contingency Factors Benefits of DT Owner / Manager

Mindset
(SME Size / Survival)
Perceived
RESEARCH QUESTIONS Influences Influences

DT Adoption by
South African Requires Awareness Leads to DT Strategy Influences Adoption Enables or Dynamic Capabili-
ties and Sustained
Manufacturing of DT (Choice) of DT Firm
SMEs Inhibits Competitiveness
Three questions formed the basis of our research to address the research objective of Influences

understanding the intertia and/or progress of SMEs in digital technology adoption: Perception of Influences

Outside Platforms Fear of
1. Do manufacturing SMEs in South Africa implement DTs such as Internet of Things Influence Cybercrime

Technology (IIoT)?
Lack of Resources
/ Skill
Why do or do they not implement such DTs?
AUTHORS: 2. What digital transformation strategies are implemented by manufacturing SMEs

in South Africa?

3. How do platform openness and owner/manager mindsets influence SME intentions

Warren Sachs and to adopt DTs such as IIoT? CONCLUSION

Professor Justin Barnes METHODOLOGY

Results suggests that manufacturing SMEs in South Africa have adopted DTs, although at
an immature level when viewed through the lens of digital maturity frameworks (Canhoto

Submitted to the South African Journal of Economic and The population for the study comprised all SMEs in the South African manufacturing sector. et al., 2021; Frank et al., 2019). SME owner/managers' mindsets appear to have played an
Although the unit of analysis of this study was the manufacturing SME, it was the important role in influencing DT adoption, supporting the findings of Jones et al. (2021),
Management Science. owner/manager or manager who was interviewed as the firm representative. Semi-structured who assert that its adoption is influenced by pervasive owner/manager mindsets. A new

interviews were conducted across a spectrum of SME firm sizes and a diverse range of result was the pervasive mindset of fear related to physical crime in addition to a fear of
manufacturing sub-sectors and geographies. Twelve SME owner/managers or managers were cybercrime and data theft.

interviewed until saturation was reached. Additionally four interviews were conducted with Of concern is the lack of awareness and understanding of DTs by manufacturing SMEs. The
senior managers of DT vendors to compliment the SME interviews, improving the diversity, extant literature describes various challenges to SMEs during the DT adoption process

heterogeneity, and richness of the data. (Cenamor et al., 2019; Frank et al., 2019; Ghobakhloo & Iranmanesh, 2021; Moeuf et al.,

2018); however, these are largely focused on the post-awareness stages of DT selection

Publication: FINDINGS and implementation. Our findings demonstrate the need for the development of upfront

DT awareness amongst manufacturing SMEs. Owner/managers of SMEs should assess and
develop their mindsets regarding technology, their competency, and their perception of
2021 the potential disruption which could be caused by DTs. External agents, such as

The findings indicate a low level of DT adoption by manufacturing SMEs in South Africa. governments and larger customers, could enable DT awareness amongst manufacturing

SME participants indicated that their organisations were operationally focused and spent SMEs, while there is also an opportunity for DT vendors to develop new business models
International Federation for most of their time solving short-term problems, using DTs to solve problems for which which support manufacturing SMEs.

Information Processing Journal manual solutions were either unavailable or cumbersome. Many SMEs used DT through
online sales platforms which positively impacted their business processes and customer
reach. However, some SMEs noted challenges with cloud platforms when interacting with
Springer customers. REFERENCES

SMEs did not explicitly raise concerns about DT value for money, but rather expressed

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