Influence of digital technology on business operations among manufacturing organisations in the iLembe municipal district in South Africa

Abstract

The scarcity of water and energy in South Africa impacts multiple domestic and economic sectors, such as agriculture, industry, energy production, and ecosystems. This leads to diminished output, environmental degradation, and loss of biodiversity. The challenges are closely associated with the ongoing overexploitation of natural resources, attributable to the transformative effects of industrialisation and urbanisation. Current trends in energy and resource consumption, agricultural systems, and urban expansion are largely unsustainable and necessitate strategic interventions to mitigate environmental damage and promote long-term resilience. In the absence of oversight, these trends could exacerbate detrimental climate change patterns and limit economic growth. This study investigates the ongoing challenges related to the manufacturing sector's impact on water and energy resource depletion, while also assessing the potential cost savings from adopting cleaner production technologies. This study provides a significant contribution by presenting empirical evidence from the iLembe District, utilising a quantitative research design. A survey was performed across multiple factories in the iLembe Municipal District of South Africa. Of the 262 businesses surveyed, 184 out of 191 responses were considered reliable for data analysis. The study objectives were evaluated through descriptive and correlation analyses to assess the impact of digital technology on water, energy, and operational cost savings in manufacturing organisations within the district. The findings suggest that manufacturing organisations in the iLembe Municipal District demonstrated a lack of commitment to adopting digital technology as a waste management strategy to decrease electricity and water consumption. Respondents concurred that their organisations have achieved cost reductions by implementing cleaner production processes. The research demonstrated that digital technology has a beneficial effect on water and energy conservation, cost reduction, and the improvement of organisational performance. Management must understand the beneficial effects of digital technology to guarantee sustainable organisational performance..

Keywords: {'name': 'Digital Technology, Manufacturing Enterprises, Water Consumption, Environmental Practices'}

Authors & affiliations

Everlane Reddy
Durban University of Technology

Robert Zondo
Durban University of Technology

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