Justin Barnes

Using learning networks to enable industrial development

Purpose – The purpose of this paper is to explore the dynamics of inter‐firm learning and the ways in which “learning networks” can be established and facilitated. Underlying this is the argument that significant traction on the problem of organizational learning – in this case around process innovations – can be gained through deploying structured and purposeful inter‐organizational learning networks.Design/methodology/approach – The paper builds on three case studies drawn from the experience of firms in South Africa, covering both vertical (supply chain) and horizontal (cross‐sector) groupings in automotive components and timber products.Findings – The paper reports on the ways in which the learning networks were set‐up and operated, mapping this experience against a model framework which emphasizes a number of core operational processes. It suggests that the success of both the automotive component groupings and the failure of the timber products network can be explained through reference to this mode...

Developing Manufacturing Competitiveness Within South African Industry: The role of middle management

Survival in highly competitive and fragmented markets requires producers to focus on both price and non-price factors such as quality, innovation, adherence to standards and rapid response as the basis for competitive advantage. In an effort to meet these new demands firms are deploying a range of innovations including advanced equipment and reconfiguration of both their internal organisation and their external relationships The literature on the nature of such innovations and the competitive forces driving firms to adopt them is extensive, but less emphasis is given to questions of how particular firms can choose and effectively implement them. Yet research consistently highlights this area as problematic and points to many influential factors including manufacturing strategy (or its absence), financial, industrial relations, work organisation and project management. One area which receives regular attention of this kind is ‘middle management’ — an organisational grouping which is often seen as a problem and as the source of resistance. It is clear that in a transition from essentially hierarchical organisational forms characterised by high division of labour and extensive use of bounded autonomy, decision rules and standard procedures to more fluid and flexible forms this group is likely to be extensively involved. This paper explores the role of middle management in innovation within the specific context of South Africa, and develops some proposals for mechanisms which might help enhance their contribution to industrial restructuring.

Globalisation and Trade Policy Reform: Whither the Automobile Components Sector in South Africa?

As in the case of many formerly inward oriented economies, South African industry is facing a new competitive environment as trade barriers fall. The initial result of this reform in trade policy has been a sharp increase in the trade deficit in the automobile and components sector. A survey of the major auto assemblers and a comparative review of the automobile sector in Brazil and India suggests that the prognosis for the future of the South African components industry is not good unless corrective action is taken. This will involve responses from a variety of stakeholders. A number of policy responses are discussed identifying both the relevant stakeholders and the policy instruments which might be utilised.

Organising cluster cooperation and learning networks in South Africa

Bill Freund’s work on cities has stressed a number of themes, important amongst these have been the necessity to take the social and economic processes within them as forces in their own right. Whilst understanding the importance of global and national structural factors, Freund has also directed our attention on the necessity to focus on local dynamics in shaping the contours of social structure and economic development. In addition he has accorded local agency (what we below term purposive action) a rightful place in shaping local economic development outcomes. Although he has never (at least to our knowledge) researched and written on the importance of locally based firm clusters in this process, the underlying philosophy of his work (exemplified in the quotation below) has influenced our own thinking on these matters. It is this nexus of the relationship and role of local government, external facilitators and business actors that has driven the processes described and analysed below. It has also informed our own complex role as ‘purposive change agents’ trying to change the urban economic landscape and as ‘academic researchers’ simultaneously reflecting on the processes unleashed to develop academic analysis and policy options to shape economic and organisational trajectories.

Why Richards Bay grew as an industrial centre: Lessons for SDIs

This article critically examines the rapid industrialisation and phenomenal growth of Richards Bay since the early 1960s. Detailed consideration is given to the nature of the development and the various factors that contributed to the unusual economic success of the locality. The article highlights the important role played by government but suggests that other factors were more important for the development of Richards Bay. Some of these factors include the natural advantages and competent functioning of the various institutions operating in the region. Despite the success of Richards Bay, the article highlights various gaps in its development, and draws together a number of suggestions for more economically sustainable growth in other localities.

KwaZulu-Natal's rural institutional environment: Its impact on local service delivery

This article examines the rural institutional framework in KwaZulu-Natal as it pertains to local service delivery, and claims that the key component of development is getting the institutional environments right. The article assesses relevant literature and introduces a dual framework linking institutionalist and organisational perspectives. The institutional framework of KwaZulu-Natal is discussed in terms of its historical development, and a critical analysis of its present configuration is carried out. The article highlights the mismatch between rural development needs and the institutional framework of the province and generates a number of policy proposals in an attempt to correct this problem.

Industrial Policy, Multinational Strategy and Domestic Capability: A Comparative Analysis of the Development of South Africa’s and Thailand’s Automotive Industries

For developing countries seeking to promote the automotive industry, it has been essential to attract foreign investment, and the terms under which this takes place are key determinants of the resulting development impact. This article examines the development of the sector in South Africa (SA) and Thailand. Both industries have been driven by growing domestic demand, government support and rapid international integration, but the Thai industry has grown at a significantly faster pace. The article demonstrates that the Thai automotive industry has major firm-level cost and market advantages. The combination of a favourable location, supportive trade and industrial policy and supply-side strengths has led to large-scale investment and Thailand’s development as a major regional hub. Foreign investment in SA on the other hand has been at a lower level, aimed primarily at accessing the domestic market. The consequence has been more limited development of the automotive cluster.AbstractPour les pays en développement cherchant à promouvoir l’industrie automobile, il a été essentiel d’attirer les investissements étrangers et les conditions dans lesquelles ces investissements se déroulent sont des facteurs déterminants pour l’impact sur le développement qui en résulte. Cet article examine le développement de ce secteur en Afrique du Sud et la Thaïlande. Ces deux industries ont été stimulées par une demande intérieure croissante, le soutien du gouvernement et par l’intégration internationale rapide, mais l’industrie thaïlandaise a grandi à un rythme nettement plus rapide. L’article démontre que l’industrie automobile thaïlandaise possède d’importants avantages au niveau des coûts d’entreprise et du marché. La combinaison d’un emplacement avantageux, de politiques commerciales et industrielles favorables et de forces au niveau de l’approvisionnement ont conduit à des investissements à grande échelle et au développement de la Thaïlande en tant que pôle régional majeur. D’un autre côté, les investissements étrangers en Afrique du Sud ont été moindre, visant principalement l’accès au marché intérieur. La conséquence a été un développement plus limité du cluster automobile.