Skills development among South African based innovative ICT firms
Date
2016
Authors
Pauna, Raruca
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Abstract
FDI is a buzzword used in the discourses of many emerging market politicians over the last
two decades and SA politicians make no exception. It is commonly accepted that many
multinationals (MNEs) provide employment opportunities and contribute to the transfer of
technological knowledge in support of the host country’s catch up activities. This study aims
to provide insight into how the South African subsidiaries of innovative ICT MNEs invest in
skills development and why their local leaders chose to act in this way by comparing the case
studies of IBM SA, Cisco SA and Dimension Data. It also seeks to find which of these three
firms is more efficient at this investment and how South Africa, as a host country, influences
their investment activities.
The theoretical foundation for this study contains the literature review under the topic framed
by the research problem: “How innovative ICT firms based in SA invest in skills.” The
researcher gained knowledge about the habit of investment in skills in these branches of
MNEs, in particular, their behaviour when they operate within South Africa, and produced a
set of propositions that were investigated under the framework of the three case studies using
qualitative research methodology.
On one hand, the outcome of the study is that these researched branches are not innovating in
SA because of the special emerging market context of SA and consequently, at present, they
do not invest in R&D and innovation activities. On the other hand, SA government business
consultants consider the branches of MNEs as sources of strong innovative and R&D
activities that may influence SA innovation successes, different from what these firms do.
Moreover, the results of the analysis show that the studied firms intensively exploit their
existing products for maximum short-term profit. Policy makers could be assisted by this
study in developing adequate policies in support of R&D and innovation activities. The study
could also provide guidance for those HQs and leaders of local branches who want to
improve their performance in SA and to SA innovators who are seeking to understand the
twofold effect of globalisation.
Description
Thesis (M.M. (Innovation Studies))--University of the Witwatersrand, Faculty of Commerce, Law and management, Graduate School of Business Administration, 2016
Keywords
International business enterprises--South Africa, Human capital--South Africa, Employees--Training of--South Africa