A competitive intelligence framework for the sustainability of metals manufacturers in South Africa
Abstract
South Africa is a country rich in mineral resources. It has more than 50 underground
commodities with the world’s largest reserves of manganese, chrome, vanadium and platinum.
It also holds major reserves of titanium, iron ore and coal. In addition, South Africa has an
abundant labour resource, good infrastructure and world-class manufacturing expertise.
However, the economic growth rate − more than 20 years after democracy − is lower than what
many South Africans may have hoped for. One of the strategies to improve the economic
growth rate is to export less of South Africa’s mineral resources at a low value-adding factor and
to promote the export of value-adding products. Metals manufacturers, being part of the
manufacturing industry in South Africa have a good upstream commodity supply and a good
logistics chain for the acquisition of unprocessed products for further processing, and can fulfil
an important role in adding value to mineral resources while contributing to South Africa’s
economic growth. Despite seemingly favourable conditions, the metals manufacturers in South
Africa are barely surviving or are suffering severe losses. The main reason for this is that metals
manufacturers are not competitive, according to the “new” and increasingly stricter global
competitiveness yardstick.
The main problems that this study addressed are: 1) that the competitive intelligence practices
by metals manufacturers are currently unknown; and 2) it is unknown to what extent and how
the competitive intelligence of metals manufacturers can be improved to lead to business
sustainability. The main objectives of this study were to identify current practices and develop a
competitive intelligence framework that can aid metals manufacturers in South Africa to improve
sustainability. Competitive intelligence focuses on the external environment of companies
whereas integrated intelligence includes the elements of competitive and customer intelligence
and integrates with other disciplines in the supply chain such as finance and the planning cycle
of companies. This research study made use of an explanatory sequential mixed methods
design. The empirical study consisted of a quantitative phase followed by a qualitative phase.
For the quantitative phase a new questionnaire was developed and used to collect primary data
from employees of metals manufacturers in South Africa to test for competitive intelligence
practices, a competitive intelligence framework and theories. The Kaiser-Meyer-Olkin coefficient
from a total of 63 responses from metals manufacturers was good and the sampled data were
adequate for this research. Frequencies, descriptive statistics, factor analysis, analysis of
means and correlation analysis of the collected data enabled the testing of the results during the
quantitative phase against the objectives of the questionnaire. This in turn, enabled the
development of an appropriate interview guide that was used during data collection in the
qualitative phase. The seven representatives from the metals manufacturing fraternity who were interviewed
confirmed or clarified aspects that transpired from the quantitative phase of this research. The
results from the qualitative empirical phase enabled the formulation of conclusions. The
information and insights gained from the literature reviews and the empirical phases of this
research enabled the development of a competitive intelligence framework that is scalable and
can be implemented by small to large metals manufacturers in South Africa. This competitive
intelligence framework − when used as indicated in the description of its building blocks −
contributes to the increased competitiveness and sustainability of metals manufacturers in
South Africa. Competitive intelligence practices and a framework to aid the metals
manufacturers in South Africa with competitive intelligence have not previously been
researched. In practical terms: the increased competitiveness and sustainability of metals
manufacturers in South Africa will contribute to the South African economy, job creation and
security and lastly, the South African National Development Plan