The factors affecting the sustainability of the automotive component industry in South Africa.
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Date
2013
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Abstract
The Automotive Industry in South Africa has undergone a major transformation
process over the years and has evolved into a much sheltered and government
supported industry. The recent wave of globalisation and liberalisation has
brought about new challenges and opportunities which have forced companies to
become more reactive to variation by intermittent, precipitous and cost-effective
innovation through integrating the strengths of the local firm, such as creativity,
flexibility and adaptability, with the innovation, technological capacities and overall
market power and resources of internationally linked organisation. Due to the
dynamic nature of the automotive industry, it was vital that South African
organisations and management combine these factors to ensure a sustainable
competitive industry, capable of competing on the worldwide platform.
This study is intended as an investigation into the challenges experienced by
South African automotive component manufacturers with regards to growth and
survival. To this end, the literature review was conducted to identify the challenges
impacting the industry. Empirical research was then conducted through the
distribution of a web based research questionnaire to each member of National
Association of Automotive Component and Allied Manufacturer (NAACAM). This
quantitative study analysed data collected through interviews from 114 companies
in the database of firms. The results support the literature review and demonstrate
that changes in the industry have certainly impacted the business relationships of
the local firm which resulted in companies grasping on to an unsettled future in the
local industry. From these findings, recommendations were made to assist in
strengthening the industry’s competitiveness. Whilst participation in global value
chains has given the industry hope, other factors seems to weigh heavily on the
progress of the industry. These factors are explored further.
Description
MBA University of KwaZulu-Natal, Durba 2013.
Keywords
Automobile industry and trade -- South Africa., Sustainable development -- South Africa., Government business enterprises -- South Africa., Theses -- Business administration.