Industry structure and labor market flexibility in the South African manufacturing sector: A time series and panel data approach

2011 ◽  
Vol 28 (3) ◽  
pp. 1291-1302 ◽  
Author(s):  
Johannes W. Fedderke ◽  
Andrew J. Hill
Keyword(s):  
Time Series ◽  
Labor Market ◽  
Panel Data ◽  
South African ◽  
Manufacturing Sector ◽  
Industry Structure ◽  
The South ◽  
Labor Market Flexibility

scholarly journals Analysis of the Keynesian Theory of Employment and Sectoral Job Creation: The Case of the South African Manufacturing Sector

2018 ◽  
Vol 18 (1) ◽  
pp. 123-143
Author(s):  
Thomas Habanabakize ◽  
Paul-Francois Muzindutsi
Keyword(s):  
South African ◽  
Manufacturing Sector ◽  
Job Creation ◽  
The South ◽  
Economic Sectors ◽  
Vector Autoregressive ◽  
Integration Approach ◽  
Long Run ◽  
Short Run ◽  
Investment Spending

Abstract The manufacturing sector is one of the backbones of the South African economy, and yet is one of the economic sectors facing challenges in job creation. This study analysed the long-run and short-run effects of aggregate expenditure components on job creation in the South African manufacturing sector. A Vector Autoregressive (VAR) with Johansen co-integration approach was used to analyse quarterly data from 1994 to 2015. The findings are that there is a long-run relationship between aggregate expenditure and job creation in the South African manufacturing sector, with government and investment spending being the major components of aggregate expenditure that create jobs in the South African manufacturing sector. Conversely, consumption spending destroys jobs in the manufacturing sector, while net exports have no significant effect on job creation. The short-run relationship between variables was not significant. Recommendations are that more effort should be put into investment spending, and government should spend more on investment than on consumption spending - in order to increase job creation in the manufacturing sector.

scholarly journals Managing a South African organisation within a dual manufacturing and services economy

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
R. Weeks ◽  
S. Benade
Keyword(s):  
South African ◽  
Global Economy ◽  
Manufacturing Sector ◽  
Management Approach ◽  
The South ◽  
Literature Study ◽  
Important Conclusion ◽  
Management Perspective ◽  
The Impact ◽  
Dualistic Economy

Purpose: The purpose of this paper is to analyse the nature of the South African dual manufacturing and services economy and the impact thereof on organisations from a management perspective. Problem investigated: Services account for over 65% of South Africa's gross domestic product (GDP) and reflects an escalating trend. The manufacturing sector of the economy is just over 26% of GDP. This by implication implies that the South African economy is dualistic in nature. The economy functions as an integrated component of the global economy, one that is highly competitive and turbulent in nature. The traditional management approach tends to be one based on a mechanistic, analytical and deterministic manufacturing perspective that is no longer effective in dealing with the services economy. Methodology: A literature study is undertaken and a narrative enquiry conducted by means of discussions with 24 South African executives to determine the impact of the dual economy on South African organisations and the influence thereof from a management perspective. The approach adopted was intentionally analytical-descriptive in nature. The narrative enquiry constituted open ended but structured discussions with executives in order to learn from their personal experiences in managing an organisation in what is termed to be the dual South African services and manufacturing economy. Findings: An important conclusion drawn from the study is that traditional paradigms of management that evolved within a mechanistic manufacturing economy is no longer effective for dealing with the unpredictable and disruptive changes of a highly competitive global services economy. A complexity theory based management approach it would appear may be more relevant in dealing with the emergent realities associated with a turbulent services economy. Value of the research: Seen within the context of the changing nature of the global and South African economy, the insights gained from the study could assist executives and managers in exploring alternative paradigms of management that would be more appropriate for dealing with the paradoxical nature of a dualistic economy. Conclusion: Appropriate management paradigms differ in terms of contextual realities confronting managers, namely dealing with ordered and un-ordered contextual conditions. The Cynefin Framework (Kurtz & Snowden, 2003) serves as a means of sense making in finding the most appropriate management response for dealing with the contextual realities associated with a dualistic economy.

scholarly journals Identifying Effective Pedagogical Approaches for Online Workplace Training: A case study of the South African wood products manufacturing sector

2007 ◽  
Vol 8 (3) ◽  
Author(s):  
Iain S. Macdonald ◽  
Mark Bullen ◽  
Robert Kozak
Keyword(s):  
South African ◽  
Course Design ◽  
Manufacturing Sector ◽  
Wood Products ◽  
Constructivist Teaching ◽  
The South ◽  
Furniture Manufacturing ◽  
New Concepts ◽  
Learning Programs ◽  
Pedagogical Approaches

This study investigated appropriate pedagogical techniques for workplace e-learning programs in the South African wood products (furniture) manufacturing sector. The study found that learners responded favourably to constructivist teaching approaches, such as asynchronous discussions, open-ended task-based activities, and assignments incorporating authentic, real-world examples. Learners viewed constructivist activities to be more useful than quizzes and traditional essay-based assignments, as they allowed new concepts to be learned in context and were perceived to promote deeper understanding of the subject matter. Nevertheless, they valued the inclusion of a blend of pedagogical approaches in the course design, as this enabled them to approach and analyze new concepts in an assortment of ways. Learners placed importance on regular interaction with other learners and course instructors, and were strongly in favour of including face-to-face components in Web-based courses.

scholarly journals Anti-competitive behaviour in the agri-food and steel value chains in the South African manufacturing sector

2014 ◽  
Vol 7 (2) ◽  
pp. 315-340
Author(s):  
Julia Kupka ◽  
Adele Thomas
Keyword(s):  
South African ◽  
Manufacturing Sector ◽  
Value Chains ◽  
The South ◽  
Big Business ◽  
Competitive Behaviour ◽  
Leniency Policy

Despite the fact that it has existed for over ten years, the Competition Act has had little impact in diluting the dominance of big business in the South African manufacturing sector. This study sought to ascertain the extent of anti-competitive behaviour in two sub-sectors of the South African manufacturing sector and to determine whether the competition authorities should focus on supporting SMEs as competitors to big business. The findings indicated that SMEs in these two sub-sectors face unique difficulties in fighting anti-competitive behaviour, and that there is scope for the competition authorities to facilitate the participation of SMEs in the economy through the use of tools such as market inquiries, the Corporate Leniency Policy and structural remedies.

scholarly journals The impact of employee remuneration inequalities on employee productivity in the South African workplace

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Gerhardus Van Zyl
Keyword(s):  
Panel Data ◽  
South African ◽  
Manufacturing Industry ◽  
Negative Impact ◽  
Positive Impact ◽  
Value Added ◽  
Employee Productivity ◽  
The South ◽  
Ongoing Research ◽  
The Impact

Orientation: This article is part of an ongoing research project on various aspects of employee productivity in the South African workplace.Research purpose: The aim of this article is to determine firm-based employee productivity impacts as a result of employee remuneration inequalities (excess-remuneration and under-remuneration) in the South African workplace.Motivation for the study: The study focuses on understanding the impact and magnitude of employee remuneration inequalities on employee productivity in a unionised South African workplace.Research design: The article adopts two distinct estimation models. The aim of the additive multivariate linear estimation model is to determine the sign and the significance of the impact of both under- and excess-remuneration levels on employee productivity when employee characteristics such as levels of training, work experience and managerial involvement are considered. The second model is a fixed-effect panel data estimation where the full sample set of the relevant firm-based data is used. The aim of the panel data estimations is to estimate the robustness of the additive multivariate linear estimates. The manufacturing industry of Gauteng has been chosen as the case study, given the importance of this industry, in the gross geographical product of Gauteng province and the availability of firm-based data.Main findings: Estimation results indicate a strong and significant negative impact of under-remuneration on employee productivity levels. Excess-remuneration levels have a small positive impact on employee productivity levels.Practical/managerial implications: The estimations indicate the necessity to eliminate remuneration inequalities and opt for equalised remuneration structures for similar occupations in the market to enhance employee productivity levels.Contribution/value-added: The study contributes to our understanding of the impact of remuneration inequalities for similar occupations on employee productivity.

scholarly journals Incentives for the manufacturing sector: what South Africa can learn from Malaysia and Singapore

2015 ◽  
Vol 8 (1) ◽  
pp. 105-124
Author(s):  
Lenatha Wentzel ◽  
Kerry De Hart
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Foreign Investment ◽  
Manufacturing Sector ◽  
South African Government ◽  
Manufacturing Companies ◽  
The South ◽  
African Government ◽  
Similarities And Differences

The expansion of the manufacturing sector is one of the South African government’s focus areas for economic growth and employment creation. The research on which this article is based identified additional incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. The incentives provided to manufacturing companies by the governments of Malaysia and Singapore and those provided by the South African government are compared in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for additional incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in the country.

scholarly journals Competitive Advantage Threats and Opportunities in the South African Clothing, Textiles, Leather, and Footwear (CTLF) Industry

2021 ◽  
Vol 10 (6) ◽  
pp. 122
Author(s):  
Sipho Mbatha
Keyword(s):  
Response Time ◽  
Competitive Advantage ◽  
South African ◽  
Manufacturing Sector ◽  
Quick Response ◽  
The South ◽  
Significant Contributor ◽  
New Knowledge ◽  
Low Rate

Despite the employment and competitive advantage decline experienced in previous years, the South African clothing, textile, leather, and footwear (SACTLF) industry is still a significant contributor to the country’s manufacturing sector. To restore employment figures last seen a decade ago in the industry, the SACTLF has to explore competitive advantage threats and opportunities, among others. To explore competitive advantage threats and opportunities in the SACTLF industry, a leading SACTLF retail group and two leading clothing manufacturers’ associations (representing over 100 CTLF organisations) were purposefully sampled and interviewed. Emerging from the transcripts is that the low rate of innovation and lack of access to manufacturing inputs are the main competitive advantage threats. Strengthening quick-response time and localisation emerged as competitively advantageous opportunities. This article’s findings show that the SACTLF industry has the potential to develop a competitive advantage. The findings of the study contribute new knowledge to the literature.   Received: 27 July 2021 / Accepted: 7 October 2021 / Published: 5 November 2021

scholarly journals The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

2018 ◽  
Author(s):  
Fabian Ochsenfeld
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Labor Relations ◽  
College Education ◽  
Employment Sector ◽  
Bargaining Position ◽  
Labor Market Flexibility ◽  
Works Council ◽  
Positive Effect

Scholars argue that the dual path to labor market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer-employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral, but not negative. The presence and strength of the positive effect depends, first, on whether the type of subcontracting affords core workers with codetermination rights, second, on whether core workers are represented by a works council to exercise these rights, and, third, on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labor relations costly to the employer.

Agro-processing Industries in the South AfricaN Economy

2021 ◽  
pp. 216-239
Author(s):  
Horman Chitonge
Keyword(s):  
South African ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Value Chains ◽  
Inclusive Growth ◽  
The South ◽  
Employment Creation ◽  
Business Opportunities ◽  
Medium Enterprises

This chapter provides an overview of the agro-processing sector in the South African economy, focusing on the sector’s potential to contribute to inclusive growth through high value-added activities. The chapter shows that agro-processing industries have been the largest subsector of the manufacturing sector in the country since the 1970s, accounting for the largest share of both manufacturing output and employment. Apart from being the largest segment of the manufacturing sector, agro-processing industries have the potential to contribute to the broader national objective of transforming the structure of the economy through the creation of jobs and business opportunities for new small and medium enterprises on both sides of the agro-processing value chains. Employment creation potential lies in the fact that most agro-processing industries are labour intensive. Agro-processing industries, on average, use 40 per cent more labour per unit of capital relative to the manufacturing sector as a whole. However, the challenge is that several of the most labour-intensive agro-processing industries are experiencing declining or stagnating value-added, investment, and, most importantly, employment levels. Consistent and coordinated implementation of strategies which revive dynamism in labour-intensive industries is required to overcome this challenge.

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