The influence of emerging technologies on small and medium manufacturing enterprises in eThekwini District Municipality of KwaZulu-Natal

Abstract

Manufacturing Small and Medium Enterprises (SMEs) in South Africa (SA) contribute meaningfully to economic growth, poverty reduction, social stability and job creation. Research on the influence emerging technologies have on SME has been conducted all over the world; however, few studies focused on the manufacturing sector, with specific reference to the eThekwini District Municipality. Therefore, this research study aims to explain and clearly define the factors that influence manufacturing SMEs in the eThekwini District Municipality towards adoption of emerging technologies, in order to enhance productivity and business processes which, in turn, result in improved customer satisfaction. Furthermore, this study examines how emerging technologies influence SMEs operating in the eThekwini District Municipality. The factors influencing adoption of emerging technologies among manufacturing SMEs in eThekwini remain unclear. This study aims to investigate the influence emerging technologies will have on the manufacturing SMEs operating in the eThekwini District Municipality. Data were collected from the sample of 300 manufacturing SME owners/managers in the eThekwini District Municipality, selected by means of non-probability stratified sampling, with respondents completing a questionnaire with the support of the researcher. The study used quantitative techniques. Results from the questionnaire survey reveal that most manufacturing SMEs in the eThekwini District Municipality who were respondents in the study are still at an infant stage with emerging technologies, due to financial constraints and lack of skills expertise associated with the cost of emerging technologies. However, these small enterprises do consider the use of emerging technologies such as computer devices, the cloud and emails to gain competitive advantage and improve production. Further research should aim to establish training programmes that will offer manufacturing SMEs emerging technologies skills and encourage the use of emerging technologies as the world is changing with technologies so they can be innovative.