Factors influencing innovative leadership in mobilising small and medium enterprises (SMEs) towards smart manufacturing in Pietermaritzburg

Abstract

Small and medium-sized businesses (SMEs) are regarded as effective drivers of inclusive economic growth and expansion in South Africa and globally. After noting the significance of SMEs and their contribution to the economy, it is helpful to observe how their growth and sustainability is being maintained through the adoption and utilisation of smart manufacturing techniques and innovative leadership. Consequently, this study highlighted the significance of SME adoption of innovative leadership in smart manufacturing. The main aim was to critically examine factors influencing innovative leadership in mobilising SMEs towards smart manufacturing in Pietermaritzburg, KwaZulu-Natal (KZN), South Africa. A quantitative research approach was adopted with census sampling; 102 manufacturing SMEs registered in the Msunduzi Municipality database participated. The data was analysed using the latest version of SPSS V 29.0.1. The findings of this research indicate that the use of robotic technology among manufacturing SMEs is very limited. Moreover, the adoption of internet of things (IoT) and artificial intelligence technologies is still very low. Therefore, the general finding is that the utilisation of smart manufacturing processes by SMEs in the manufacturing sector in Pietermaritzburg is still in its infancy. This study also found that there is substantial evidence supporting the presence of innovative leadership practices in SMEs operating in the manufacturing sector. This provides an opportunity for these companies to advance the smart manufacturing agenda through effective leadership. The study found a number of factors that had an impact on the use of smart manufacturing processes and innovative leadership.