The role of 4th industrial revolution technologies in driving competitive advantage in the South African beverage manufacturing industry

Abstract

Fourth industrial revolution technology (4IR-T) applications are associated with benefits such as cost efficient measures to enhance productivity, use of effective communication channels to improve relationships between businesses and customers, and the potential to drive sustainable competitive advantage. However, organisations within South Africa’s beverage manufacturing industry are slow to adopt 4IR-T. This research aimed to explore the role of 4IR-T in driving competitive advantage within beverage manufacturing organisations in the FMCG industry of South Africa. The objective of this research was to determine how 4IR-T can be used to enhance competitive advantage within beverage manufacturing organisations hence, the research question, how can 4IR-T drive competitive advantage in beverage manufacturing organisations, guided this research. This qualitative research used a case study strategy to collect data from a beverage manufacturing organisation in South Africa via semi-structured interviews and a focus group. A purposive sampling method was applied to select twelve participants that included middle, senior and executive managers who have decision making power. A thematic analysis of the data was conducted, and the TechnologyOrganisation-Environment (TOE) framework was used as a lens to determine the role of 4IR-T in driving competitive advantage with beverage manufacturing organisations. A focus group was further performed to conduct member checking. Findings and discussion revealed various TOE factors that either promote or inhibit the adoption of 4IR-T. Perceived benefits, relative advantage, current state of competitive advantage and 4IR-T characteristics were factors found to enable 4IR-T adoption from a Technology and organisational perspective. However, barriers mostly from an organisation perspective were found, such as insufficient capital investment, cost of 4IR-T, inadequate skills capacity, which inhibit and slow the adoption of 4IR-T. Risks from an environmental perspective also inhibited the adoption of 4IR-T such as loadshedding, labour regulations and job redundancy. These barriers and risks thus, inhibit the drive for competitive advantage within the beverage manufacturing organisation. This study concludes and recommends that beverage organisations increase the speed with which they adopt 4IR-T by investing with a long-term focus, training, and upskilling employees, top management promoting 4IR-T with a digital strategy and the organisation using 4IR-T to prevent supply chain disruptions.