Leapfrogging Pathway for Fourth Industrial Revolution: A Case of Process Innovation Within an Automotive Subsidiary Firm

Abstract

The relationship between Fourth Industrial Revolution technologies and innovation makes for an interesting case, as innovation seeks to unlock a level of competitiveness for its users, the extent of which is covered in this research paper. The premise of this study is that subsidiary firms lend themselves to the practice of process innovation. The focus of this study was on a South African automotive subsidiary firm, and a case study methodology was adopted. Data was collected in the form of questionnaire responses from specialists and interview feedback from managers in order to derive insights that would inform the state of firms’ technological capabilities, the dynamics behind them, and the leapfrogging measures that might be taken. This study showed that the current state of technological capabilities in the sample firm ranged from inadequate to satisfactory. Three priority areas were defined: robotics, big data and cloud computing, and advanced manufacturing systems. The workers’ mindsets were found to be a serious barrier to taking full advantage of Fourth Industrial Revolution technologies. This study covered measures that would be necessary to ensure a successful digital transformation, best realised through an incremental innovation strategy. The main metrics of firm competitiveness were outlined as quality, volume, and cost, all of which could be influenced by process innovations. Keywords Fourth Industrial Revolution; Process Innovation; Leapfrogging Pathway; Competitiveness; Automotive