The Strategic Relevance of Technology-Related Variables to the Competitiveness of Small - To Medium-Sized Furniture Manufacturers

Abstract

SMMEs can make a critical and positive economic contribution to South Africa, and small-to medium-sized furniture manufacturers (SM/FMs) have the potential to contribute to economic growth, job creation, and GDP. However, the furniture industry has not stayed abreast of technological advances. To survive in an environment of increasing competition and imports, competitive strategies must be devised. One such strategy is for technology adoption and implementation that can provide solutions for the furniture industry to improve speed, quality, variety, flexibility, and productivity, resulting in improved competitiveness. However, the adoption of technology means that its acquisition and application must be managed strategically, as the use of technology involves far more than simply taking it into account during the business-planning process.This paper investigates the impact of business strategy and selected technology-related variables on the competitiveness of SM/FM. OPSOMMINGSMMEs het die potensiaal om 'n kritiese en positiewe bydrae te maak tot Suid-Afrika se ekonomiese groei en SM/FMs, tot die skepping van werksgeleenthede, en tot die BNP. SM/FMs het egter nie op die hoogte gebly met tegnologiese ontwikkelings en die aanwending daarvan nie. Om in 'n omgewing van toenemende mededingendheid en invoere te wedywer moet effektiewe strategieë ontwikkel word. Een strategie wat moontlik sal lei tot verhoogde mededingendheid is die aanwending van tegnologie wat oplossings kan bied in terme van spoed, kwaliteit, verskeidenheid, aanpasbaarheid, en produktiwiteit. Die aanwending van tegnologie moet egter op 'n strategiese manier bestuur word, want dit behels veel meer as bloot om tegnologie in ag te neem gedurende die strategiese beplanningsproses.Hierdie artikel ondersoek die invloed van besigheidstrategieë en sekere tegnologieverwante veranderlikes op die mededingendheid van SM/FMs.

An integrated approach for developing a technology strategy framework for small- to medium-sized furniture manufacturers to improve competitiveness

“…The results imply that the higher the technology level, the more significant the benefits to the business [60].…”

“…This study found a strong association between business strategy, technology application, technology purchasing strategy, technology information sourcing, and competitiveness (as measured by business performance and technology-competitive advantage) [60].…”

“…Since the purpose of the qualitative approach was to triangulate quantitative findings, the qualitative-conceptual framework was based on the proposed technology-strategy framework and the quantitative hypothesis. The qualitative investigation intended to confirm, or better understand, the quantitative findings [60].…”

“…The quantitative investigation of this study centred on certain aspects of the proposed technology-strategy framework [60]. Since the purpose of the qualitative approach was to triangulate quantitative findings, the qualitative-conceptual framework was based on the proposed technology-strategy framework and the quantitative hypothesis.…”

“…Porter [59] argues that managers often have a 'laager' mentality that locks business into an insular, inwardly-orientated way of thinking. He also finds that the lack of adequate infrastructure, skills, and capabilities is a possible barrier to technology implementation, along with the lack of expertise to develop strategies for marketing, web design, and back-end processing [60]. Furthermore, Porter [59] lists security issues, uncertainty, high investment cost, and the lack of internal support systems as possible obstacles to overcome in the adoption of electronic commerce.…”