Unveiling the Potential of Open Strategy: An Exposé of Strategic Planning in the South African Mining Sector

Abstract

The South African mining industry, despite being the world's fifth-largest mineral reserve, is facing various challenges that prevent it from contributing to the economy to its fullest potential. These challenges include inflationary pressure, extreme nationalism, political instability, civil unrest, poor infrastructure, and inefficient regulatory practices, which have discouraged foreign investments. Although the government has developed legal frameworks to address uncertain circumstances, the lack of follow-up and transparency are key drawbacks contributing to the persistence of these issues. The aim of this study was to investigate the potential of open strategy as a strategic management method in the South African mining industry can foster innovation and growth while showcasing how open strategy can benefit both established and emerging mining entities. The study highlights the importance of adopting a mutually beneficial approach, which can unlock the full potential of the mining industry and lead to more innovative and competitive business strategies. The study used a mixed methodology, which means both quantitative and qualitative data were collected. The research included interviews with 20 highly knowledgeable participants and a survey that received 205 responses. To identify the right individuals to participate in the research, the snowball research technique was used. It helped in creating a relevant chain sampling and selecting individuals based on their knowledge, relationships, and expertise regarding the research subject. According to the study's results, there is a favorable attitude toward open strategy, which is reinforced by the growing demand for inclusive communication as an effective means of engaging stakeholders. The results also revealed that the South African mining sector lacks formalized strategies and employee engagement methods. The research determined the value of the current strategic processes in South Africa's mining sector and generated an approach to how open strategy can be a successful process for mining companies.