Disruptive Technologies and Manufacturing Performance in South Africa: Firm-Level Evidence
Date
2022
Authors
Avenyo, Elvis Korku
Bell, Jason F.
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Abstract
The Fourth Industrial Revolution (4IR) is changing while also adding
increased complexity to the global manufacturing landscape. The global
transformation in manufacturing is offering new prospects for sustained
industrial development in developing countries through increases in productivity,
value creation, and efficiency gains as well as employment creation avenues.
Digitalization and the adoption of disruptive digital technologies are viewed as
crucial to these transformations. However, there are limited research into the
current state of disruptive technologies' adoption, digital skills, and capabilities in
developing countries, particularly South Africa. This paper examines the effect of
adoption of disruptive digital technologies on the performance of South African
manufacturing firms. Using novel data from the South African digital skills survey
and econometric analyses, our results highlight the importance of the adoption of
disruptive digital technologies for the performance of manufacturing firms in
South Africa. The policy implications of our results are discussed considering
national policies on the Fourth Industrial Revolution (4IR).