Innovation as a determinant of sales growth in the South African automotive industry
Zeleke Worku, Mammo Muchie
Last modified: 2010-05-11
Abstract
A survey was conducted in 2009 on a random sample of 95 small and medium automotive enterprises operating in South Africa in order to identify key determinants of sustained growth in the automotive industry. Data was gathered from each of the 95 enterprises on factors that affect sales growth based on a structured questionnaire. The enterprises selected for the study were mostly engaged with manufacturing automotive components for the automotive industry, were in business for 5 years or more, and utilized fairly modern technological methods of production and advanced applications of engineering. Binary logistic regression analysis was used for statistical data analysis. The study showed that the top two determinants of sustained growth in the South African automotive industry are innovation (Odds Ratio = 2.96, P=0.000) and skills development (Odds Ratio = 2.65, P=0.000).
Full Text: PDF