IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v14y2025i5p81-91.html

Innovation: A labour productivity improvement strategy for the automotive assembly organisation in South Africa

Author

Listed:
  • Robert Walter Dumisani Zondo

    (Durban University of Technology (DUT))

Abstract

Over the years, productivity performance has been the subject that generated enormous interest amongst economic scholars. This shows the value of productivity on business growth. Hence, the implementation of improved interventions for productivity improvement requires appropriate innovative practices for industries. This sentiment supports the importance of innovation for productivity improvement. Consequently, this study assesses the influence of innovation on labour productivity in an automotive assembly organisation in South Africa. It has been established that the manufacturing industry in South Africa has low labour productivity compared with its BRICS counterpart countries like Russia, India and China. As a result, this study centres its attention on innovation, considering low levels of labour productivity in the manufacturing sector of South Africa. It was quantitative in design and the investigation was achieved by collecting pre-and post-innovative quarterly data for spoilage and the achievement of production targets. The study analysed the production and related experiences of an automotive assembly organisation, operating in KwaZulu-Natal in the eThekwini Municipality that had adopted an innovative seat-handling manipulator in its assembly process. The Ordinary Least Squares (OLS) model, using the Statistical Package for Social Sciences (SPSS), was used to analyse data. The study indicates that spoilage rate and the achievement of production targets have the relationship with labour productivity after an innovative seat handling manipulator was implemented in the organisation. Key Words:Automotive Assembly Organisation, Labour Productivity, Innovative Seat Handling Manipulator, Spoilage Rate.

Suggested Citation

  • Robert Walter Dumisani Zondo, 2025. "Innovation: A labour productivity improvement strategy for the automotive assembly organisation in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(5), pages 81-91, July.
    • Handle: RePEc:rbs:ijbrss:v:14:y:2025:i:5:p:81-91
    DOI: 10.20525/ijrbs.v14i5.4079
    as

    Download full text from publisher

    File URL: https://ssbfnet.com/ojs/index.php/ijrbs/article/view/4079/2856
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v14i5.4079
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v14i5.4079?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Miika Varis & Hannu Littunen, 2010. "Types of innovation, sources of information and performance in entrepreneurial SMEs," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 13(2), pages 128-154, April.
    2. Tat Chan & Jack A. Nickerson & Hideo Owan, 2007. "Strategic Management of R& D Pipelines with Cospecialized Investments and Technology Markets," Management Science, INFORMS, vol. 53(4), pages 667-682, April.
    3. Sarkees, Matthew & Hulland, John, 2009. "Innovation and efficiency: It is possible to have it all," Business Horizons, Elsevier, vol. 52(1), pages 45-55.
    4. Nir Klein, 2012. "Real Wage, Labor Productivity, and Employment Trends in South Africa: A Closer Look," IMF Working Papers 2012/092, International Monetary Fund.
    5. Vijay Kumar & Rangaraja P Sundarraj, 2016. "Schumpeterian innovation patterns and firm-performance of global technology companies," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 19(2), pages 276-296, May.
    6. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The integration of TQM and technology/R&D management in determining quality and innovation performance," Omega, Elsevier, vol. 34(3), pages 296-312, June.
    7. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    8. Goudarz Azar & Rian Drogendijk, 2014. "Psychic Distance, Innovation, and Firm Performance," Management International Review, Springer, vol. 54(5), pages 581-613, October.
    9. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    10. Seenaiah Kale & Badri Narayan Rath, 2018. "Does innovation matter for total factor productivity growth in India? Evidence from ARDL bound testing approach," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 13(5), pages 1311-1329, November.
    11. David C. Roach & Joel A. Ryman & Joyline Makani, 2016. "Effectuation, innovation and performance in SMEs: an empirical study," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 19(2), pages 214-238, May.
    12. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    13. Sadikoglu, Esin & Zehir, Cemal, 2010. "Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms," International Journal of Production Economics, Elsevier, vol. 127(1), pages 13-26, September.
    14. Zeng, Jing & Anh Phan, Chi & Matsui, Yoshiki, 2015. "The impact of hard and soft quality management on quality and innovation performance: An empirical study," International Journal of Production Economics, Elsevier, vol. 162(C), pages 216-226.
    15. Kanagi Kanapathy & Chiok Sook Bin & Suhaiza Zailani & Ali Haj Aghapour, 2017. "The impact of soft TQM and hard TQM on innovation performance: the moderating effect of organisational culture," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 20(4), pages 429-461.
    16. Lopez-Rodriguez, Jesus & Martinez-Lopez, Diego, 2017. "Looking beyond the R&D effects on innovation: The contribution of non-R&D activities to total factor productivity growth in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 37-45.
    17. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    18. Juha Uotila & Markku Maula & Thomas Keil & Shaker A. Zahra, 2009. "Exploration, exploitation, and financial performance: analysis of S&P 500 corporations," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 221-231, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Younès El Manzani & Mostapha El Idrissi & Zakaria Lissaneddine, 2022. "Soft quality management practices and product innovation ambidexterity: the mediating role of market orientation ambidexterity," Post-Print hal-04317941, HAL.
    2. Younès El Manzani & Mohamed Larbi Sidmou & Jean-Jack Cegarra, 2018. "Does IS0 9001 quality management system support product innovation? An analysis from the sociotechnical systems theory," Post-Print hal-03080217, HAL.
    3. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    4. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz & Beltrán-Martín, Inmaculada, 2018. "The impact of hard and soft quality management and proactive behaviour in determining innovation performance," International Journal of Production Economics, Elsevier, vol. 200(C), pages 1-14.
    5. Nguyen, Huu Le & Larimo, Jorma & Wang, Yi, 2019. "Control, innovation and international joint venture performance: The moderating role of internal and external environments," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    6. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz, 2021. "Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms," International Journal of Production Economics, Elsevier, vol. 232(C).
    7. Singh, Vedant & Kumar, Akshay & Singh, Tej, 2018. "Impact of TQM on organisational performance: The case of Indian manufacturing and service industry," Operations Research Perspectives, Elsevier, vol. 5(C), pages 199-217.
    8. Forés, Beatriz & Camisón, César, 2016. "Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?," Journal of Business Research, Elsevier, vol. 69(2), pages 831-848.
    9. Konshik Kim, 2018. "DIMINISHING RETURNS TO R&D INVESTMENT ON INNOVATION IN MANUFACTURING SMEs: DO THE TECHNOLOGICAL INTENSITY OF INDUSTRY MATTER?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-27, October.
    10. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    11. Antonella Biscione & Chiara Burlina & Annunziata de Felice, 2024. "Knowledge flows and innovation: a pseudo-panel approach," Applied Economics, Taylor & Francis Journals, vol. 56(30), pages 3636-3651, June.
    12. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Hana Kim & Eungdo Kim, 2018. "How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    14. Abecassis-Moedas, Celine & Sguera, Francesco & Ettlie, John E., 2016. "Observe, innovate, succeed: A learning perspective on innovation and the performance of entrepreneurial chefs," Journal of Business Research, Elsevier, vol. 69(8), pages 2840-2848.
    15. Yan Zhou & Sangmoon Park, 2020. "The Regional Determinants of the New Venture Formation in China’s Car-Sharing Economy," Sustainability, MDPI, vol. 13(1), pages 1-22, December.
    16. Francesco D’Alessandro & Enrico Santarelli & Marco Vivarelli, 2026. "The KSTE + I approach and the advent of AI technologies: evidence from the European regions," The Journal of Technology Transfer, Springer, vol. 51(1), pages 414-451, February.
    17. Edeh, Jude Ndubuisi & Obodoechi, Divine Ndubuisi & Ramos-Hidalgo, Encarnación, 2020. "Effects of innovation strategies on export performance: New empirical evidence from developing market firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    18. Maria Cristina Arcuri & Ivan Russo & Gino Gandolfi, 2025. "Productivity of innovation: the effect of innovativeness on start-up survival," The Journal of Technology Transfer, Springer, vol. 50(3), pages 1111-1169, June.
    19. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    20. Svensson, Per G. & Andersson, Fredrik O. & Mahoney, Tara Q. & Ha, Jae-Pil, 2020. "Antecedents and outcomes of social innovation: A global study of sport for development and peace organizations," Sport Management Review, Elsevier, vol. 23(4), pages 657-670.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:14:y:2025:i:5:p:81-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.