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Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town

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  • Jan Fransen
  • Bert (AHJ) Helmsing

Abstract

Twenty years after apartheid was formally abolished, black handicraft exporters in Cape Town still innovate significantly less than their white counterparts. This study explains these differences based on the segmentation of business and innovation systems, a novel approach that aims to contribute to a deeper understanding of path dependency in South Africa. The study concludes that the business system is segmented between formal and informal firms and that such segmentation is correlated with race. Despite path dependency, a group of black entrepreneurs has managed to breach the barriers, owing to the ongoing support of an intermediate organisation, intense networking and risk-taking.

Suggested Citation

  • Jan Fransen & Bert (AHJ) Helmsing, 2016. "Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town," Development Southern Africa, Taylor & Francis Journals, vol. 33(4), pages 486-501, July.
    • Handle: RePEc:taf:deveza:v:33:y:2016:i:4:p:486-501
    DOI: 10.1080/0376835X.2016.1179098
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    Cited by:

    1. Jan Fransen & Peter Knorringa, 2019. "Learning and Upgrading of Craft Exporters at the Interface of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 530-557, July.
    2. Roy, Subhadip & Mohapatra, Subhalaxmi, 2023. "Exploring the culture–creativity–innovation triad in the handicraft industry using an interpretive approach," Journal of Business Research, Elsevier, vol. 156(C).

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