4IR technology adoption in the south African airline industry: drivers, constraints and labour market effects

The emergence of 4IR technologies has been presented as holding the promise of drastic transformations both in the structures of productive systems and in the concomitant skills composition of the economies of the future. Using a customized technology organization environment (TOE) framework, this study analysed qualitative data on the adoption of 4IR technologies in the South African airline industry to shed light on its drivers, patterns, constraints and concomitant effects on labour market dynamics. Our findings identified cost reduction and international competitiveness strategies as the main drivers of technology adoption, while lack of commensurate infrastructure constitutes one of the main constraints. Employment displacement has remained limited but will likely increase as the transition to automated 4IR technologies intensifies. For technology policy, our findings suggest that successful transition to 4IR technology adaptation requires integrated strategies for intensifying digitalization, green energy sources and the stimulation of efficient alternatives to carbon-intensive air travel.