Macroeconomic drivers affecting the foundry industry in South Africa

Abstract

Background:The problem addressed in the study reported on in this article is the decline of South Africa's foundry industry. This industry is valuable in terms of job creation and a sustainable competitive advantage (SCA) strategy is required to sustain the industry in South Africa.Aim: With the dearth of research on sustainability of the foundry industry, the research comprised three objectives; namely, to identify from literature the macroeconomic drivers, to empirically identify critical macroeconomic drivers, and to make recommendations on strategies for enhancing SCA for foundries in South Africa. Setting:The study was conducted during 2022 within the foundry industry in South Africa. Foundry representatives from foundries located in all nine provinces of South Africa were invited to participate in the study. Method:The study adopted an explanatory sequential mixed-methods methodology, initially employing a quantitative approach, and subsequently applying a qualitative approach to ascertain the most influential macroeconomic drivers. Quantitative data analysis entailed descriptive methods, while the qualitative phase involved thematic analysis. Conclusion:The study contributes by identifying the macroeconomic drivers that can be used by industry leaders in the formulation of strategies for SCA within the African context. Contribution:The study contributes by identifying the macroeconomic drivers that can be used by industry leaders in the formulation of strategies for SCA.