An assessment of the impact of the fourth industrial revolution on manufacturing small and medium enterprises : a case study of Durban, South Africa

Abstract

Small and Medium-sized Enterprises (SMEs) play a significant role in economies of both developing and developed countries. They are one of key strategies in combating socio economic issues such as poverty, unemployment, and inequality. For this reason, it is crucial that they are sustained and elevated as the world is progressing from the third industrial revolution to the fourth industrial revolution(4IR). The aim of the research is to assess the impact of the fourth industrial revolution on manufacturing SMEs in Durban, South Africa. Manufacturing SMEs in Durban contribute about 20% of the gross value added to the economy of the city, which is a significant contribution. It is therefore imperative to uncover how the advancements in technology due to 4IR impacts this sector. A non-probability snowball sampling technique was used to obtain a sample of 20 respondents who were either owners or people in high management positions in Durban’s Manufacturing SMEs. Data was collected through structured interviews and analysed using content analysis, a qualitative data analysis technique. The results suggest that manufacturing SMEs in Durban know about 4IR. According to their understanding, 4IR is an enhanced and all-inclusive system that fuses physical, digital, and technological systems, built on prior revolutions to improve business processes, business growth and transformation through modern smart and intelligent technologies. The study recommends that manufacturing SMEs should prioritize education and training, innovate their business models to accommodate policies that relate to technological disruptions. They should also invest on innovation, research and development, and smart infrastructure and investment. Finally, this research suggests that SMEs in different industries do comparable studies to determine the effects of 4IR. The results further support a proposal for a study that evaluates the effect of Covid-19 on the use of 4IR by manufacturing SMEs in Durban