Original Research

Macroeconomic drivers affecting the foundry industry in South Africa

Luckson Phiri, Riaan Dirkse van Schalkwyk, Aletta S. Tolmay
South African Journal of Economic and Management Sciences | Vol 27, No 1 | a5323 | DOI: https://doi.org/10.4102/sajems.v27i1.5323 | © 2024 Luckson Phiri, Riaan Dirkse van Schalkwyk, Aletta S. Tolmay | This work is licensed under CC Attribution 4.0
Submitted: 11 September 2023 | Published: 07 March 2024

About the author(s)

Luckson Phiri, Department of Operations Management, University of South Africa, Pretoria, South Africa
Riaan Dirkse van Schalkwyk, Department of Operations Management, Faculty of Public Admin and Operations Management, University of South Africa, Pretoria, South Africa
Aletta S. Tolmay, Department of Operations Management, Faculty of Public Admin and Operations Management, University of South Africa, Pretoria, South Africa

Abstract

Background: The problem addressed in the study reported on in this article is the decline of South Africa’s foundry industry. This industry is valuable in terms of job creation and a sustainable competitive advantage (SCA) strategy is required to sustain the industry in South Africa.

Aim: With the dearth of research on sustainability of the foundry industry, the research comprised three objectives; namely, to identify from literature the macroeconomic drivers, to empirically identify critical macroeconomic drivers, and to make recommendations on strategies for enhancing SCA for foundries in South Africa.

Setting: The study was conducted during 2022 within the foundry industry in South Africa. Foundry representatives from foundries located in all nine provinces of South Africa were invited to participate in the study.

Method: The study adopted an explanatory sequential mixed-methods methodology, initially employing a quantitative approach, and subsequently applying a qualitative approach to ascertain the most influential macroeconomic drivers. Quantitative data analysis entailed descriptive methods, while the qualitative phase involved thematic analysis.

Conclusion: The study contributes by identifying the macroeconomic drivers that can be used by industry leaders in the formulation of strategies for SCA within the African context.

Contribution: The study contributes by identifying the macroeconomic drivers that can be used by industry leaders in the formulation of strategies for SCA.


Keywords

foundry industry; sustainable competitive advantage; macroeconomic drivers, macroeconomic, South Africa

JEL Codes

Q01: Sustainable Development

Sustainable Development Goal

Goal 11: Sustainable cities and communities

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