IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v25y2024i2_supplps244-s264.html
   My bibliography  Save this article

Adoption Behaviour of Digital Technologies by Firms: Evidence from South Africa’s Manufacturing Sector

Author

Listed:
  • Kiru Sichoongwe

Abstract

The manufacturing industry is vital to the growth and development of most countries. This study investigates the adoption behaviour of digital technologies by manufacturing firms in South Africa. The study employs econometric model to analyze a total of 516 firms in the manufacturing sector. The probit results show that innovation of the firm and firm size have a significant effect on both the current and the expected adoption of digital technologies, whereas capital ownership correlate positively with the current adoption. Likewise, exports and digital-related infrastructure are found to correlate positively with the expected digital technology adoption for customer relations business function. Similarly, study results from the transition probability matrix reveals that a significant persistency pattern is prevalent in all the three business functions of the firms, namely, supplier relations, customer relations and product development. However, product development has considerably higher persistency compared to other types of the firm business functions. Several policies, including supporting business innovation, easy access to core digital tools by firms, developing institutional and systemic support mechanisms, are recommended to encourage firms to engage in digital technology activities.

Suggested Citation

  • Kiru Sichoongwe, 2024. "Adoption Behaviour of Digital Technologies by Firms: Evidence from South Africa’s Manufacturing Sector," Global Business Review, International Management Institute, vol. 25(2_suppl), pages 244-264, April.
    • Handle: RePEc:sae:globus:v:25:y:2024:i:2_suppl:p:s244-s264
    DOI: 10.1177/09721509231190511
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09721509231190511
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09721509231190511?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Federica Pascucci & Elisabetta Savelli & Giacomo Gistri, 2023. "How digital technologies reshape marketing: evidence from a qualitative investigation," Italian Journal of Marketing, Springer, vol. 2023(1), pages 27-58, March.
    2. Nasiri, Mina & Ukko, Juhani & Saunila, Minna & Rantala, Tero, 2020. "Managing the digital supply chain: The role of smart technologies," Technovation, Elsevier, vol. 96.
    3. Li, Huanli & Wu, Yun & Cao, Dongmei & Wang, Yichuan, 2021. "Organizational mindfulness towards digital transformation as a prerequisite of information processing capability to achieve market agility," Journal of Business Research, Elsevier, vol. 122(C), pages 700-712.
    4. E. Burton Swanson, 1994. "Information Systems Innovation Among Organizations," Management Science, INFORMS, vol. 40(9), pages 1069-1092, September.
    5. Papadopoulos, Thanos & Baltas, Konstantinos N. & Balta, Maria Elisavet, 2020. "The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice," International Journal of Information Management, Elsevier, vol. 55(C).
    6. Hai Guo & Zhuen Yang & Ran Huang & Anqi Guo, 2020. "The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-25, December.
    7. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    8. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    9. Jacques Bughin & Tobias Kretschmer & Nicolas van Zeebroeck, 2021. "Digital technology adoption drives strategic renewal for successful digital transformation," ULB Institutional Repository 2013/328855, ULB -- Universite Libre de Bruxelles.
    10. Blichfeldt, Henrik & Faullant, Rita, 2021. "Performance effects of digital technology adoption and product & service innovation – A process-industry perspective," Technovation, Elsevier, vol. 105(C).
    11. Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    12. Crittenden, Andrew B. & Crittenden, Victoria L. & Crittenden, William F., 2019. "The digitalization triumvirate: How incumbents survive," Business Horizons, Elsevier, vol. 62(2), pages 259-266.
    13. Demetris Vrontis & Ranjan Chaudhuri & Sheshadri Chatterjee, 2022. "Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    14. Nam Hoang Vu & Ngoc Minh Nguyen, 2022. "Development of small-and medium-sized enterprises through information technology adoption persistence in Vietnam," Information Technology for Development, Taylor & Francis Journals, vol. 28(3), pages 585-616, July.
    15. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    16. Sellywati Mohd Faizal & Nahariah Jaffar & Azleen Shabrina Mohd nor, 2022. "Integrate the adoption and readiness of digital technologies amongst accounting professionals towards the fourth industrial revolution," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2122160-212, December.
    17. Kingsley Ofosu-Ampong & Alexander Asmah & John Amoako Kani & Dzifa Bibi, 2023. "Determinants of digital technologies adoption in government census data operations," Digital Transformation and Society, Emerald Group Publishing Limited, vol. 2(3), pages 293-315, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    2. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Kalaj, Ermira & Merko, Flora & Golemi, Ela, 2022. "Reflections on the link between digitalisation and firm performance during the pandemic: the case of Albania," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 25(1), pages 101-118.
    4. Xiao Han & Menghan Zhang & Yixuan Hu & Yuan Huang, 2022. "Study on the Digital Transformation Capability of Cost Consultation Enterprises Based on Maturity Model," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    5. Changling Sun & Ziang Lin & Marek Vochozka & Zuzana Vincúrová, 2022. "Digital transformation and corporate cash holdings in China’s A-share listed companies," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1081-1116, December.
    6. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    7. Alessio D'Ignazio & Paolo Finaldi Russo & Massimiliano Stacchini, 2022. "Micro-entrepreneurs’ financial and digital competences during the pandemic in Italy," Questioni di Economia e Finanza (Occasional Papers) 724, Bank of Italy, Economic Research and International Relations Area.
    8. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    9. Débora De Esteban Escobar & Carmen De-Pablos-Heredero & José Luis Montes-Botella & Francisco José Blanco Jiménez & Antón García, 2022. "Business Incubators and Survival of Startups in Times of COVID-19," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    10. Ermira KALAJ & Erjola BARBULLUSHI, 2023. "How And How Much Digitalization Affected Enterprise Performance During Covid-19 Pandemic," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 97-108, June.
    11. Jichang Zhang & Jing Long & Alexandra Martina Eugenie von Schaewen, 2021. "How Does Digital Transformation Improve Organizational Resilience?—Findings from PLS-SEM and fsQCA," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
    12. Oduro, Stephen & De Nisco, Alessandro & Mainolfi, Giada, 2023. "Do digital technologies pay off? A meta-analytic review of the digital technologies/firm performance nexus," Technovation, Elsevier, vol. 128(C).
    13. Reuschl, Andreas J. & Deist, Maximilian K. & Maalaoui, Adnane, 2022. "Digital transformation during a pandemic: Stretching the organizational elasticity," Journal of Business Research, Elsevier, vol. 144(C), pages 1320-1332.
    14. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    15. Kirti Nayal & Rakesh D. Raut & Vinay Surendra Yadav & Pragati Priyadarshinee & Balkrishna E. Narkhede, 2022. "The impact of sustainable development strategy on sustainable supply chain firm performance in the digital transformation era," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 845-859, March.
    16. Isotilia Costa Melo & Paulo Nocera Alves Junior & Geandra Alves Queiroz & Wilfredo Yushimito & Jordi Pereira, 2023. "Do We Consider Sustainability When We Measure Small and Medium Enterprises’ (SMEs’) Performance Passing through Digital Transformation?," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    17. Shao, Xue-Feng & Liu, Wei & Li, Yi & Chaudhry, Hassan Rauf & Yue, Xiao-Guang, 2021. "Multistage implementation framework for smart supply chain management under industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    18. Vu Minh Ngo & Huan Huu Nguyen & Hiep Cong Pham & Hung Manh Nguyen & Phuc Vinh Dang Truong, 2023. "Digital supply chain transformation: effect of firm’s knowledge creation capabilities under COVID-19 supply chain disruption risk," Operations Management Research, Springer, vol. 16(2), pages 1003-1018, June.
    19. Huikkola, Tuomas & Kohtamäki, Marko & Ylimäki, Juho, 2022. "Becoming a smart solution provider: Reconfiguring a product manufacturer's strategic capabilities and processes to facilitate business model innovation," Technovation, Elsevier, vol. 118(C).
    20. Ioannis Giotopoulos & Alexander S. Kritikos & Aggelos Tsakanikas, 2023. "A lasting crisis affects R&D decisions of smaller firms: the Greek experience," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1161-1175, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:25:y:2024:i:2_suppl:p:s244-s264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.