Networking in South African businesses

Abstract

Purpose

The purpose and the goal of this paper were to investigate South African businesses and determine their utilisation of new technologies and business structures. The role and development of e‐commerce and networks in South African businesses can determine their competitive role in a global market.

Design/methodology/approach

The paper shows that South Africa's position in the networked economy was researched through an empirical survey and the use of a convenience sample that incorporated 707 online businesses listed in an online directory in South Africa. Manufacturing businesses, retail and wholesale businesses, as well as business rendering services online, were targeted.

Findings

The paper finds that business networks have necessitated new business structures and 78.4 percent of the respondents are currently using these modern business structures to adapt to the demands of the networked economy. These include the matrix structure (42.9 percent), the networked business structure (25 percent) and the extended business structure (10.7 percent). E‐commerce provides many advantages, the response received on the reasons for e‐commerce utilisation includes enhanced profit (86 percent), entering strategic markets (64 percent) and building international association (61 percent).

Originality/value

The value of this paper is that the focus should be on finding new opportunities and the most important recommendations include: South African business people should be informed about the importance of shared knowledge, intellectual capital and establishing strategic alliances that are facilitated through the use of networks. Proactive management and added value in business processes should be implemented and can enhance the competitive advantage amongst South African businesses.

Citation

De Klerk, S. and Kroon, J. (2007), "Networking in South African businesses", Management Decision, Vol. 45 No. 1, pp. 89-103. https://doi.org/10.1108/00251740710718980