AN EVALUATION OF CHANGES IN CAPITAL INVESTMENT BY AUTOMOTIVE COMPANIES IN PREPARATION FOR THE AUTOMOTIVE PRODUCTION AND DEVELOPMENT PROGRAMME (APDP) B.S. BACELA 2012 AN EVALUATION OF CHANGES IN CAPITAL INVESTMENT BY AUTOMOTIVE COMPANIES IN PREPARATION FOR THE AUTOMOTIVE PRODUCTION AND DEVELOPMENT PROGRAMME (APDP) BY BANDILE SAKHEKILE BACELA Treatise submitted in partial fulfilment of the requirements for the degree Magister in Business Administration at the Nelson Mandela Metropolitan Business School December 2012 Promoter: DR S SIMAYI ii TABLE OF CONTENTS DECLARATION .............................................................................................................. V ABSTRACT ................................................................................................................... VI ACKNOWLEDGEMENTS ............................................................................................. VII CHAPTER 1 .................................................................................................................... 1 INTRODUCTION TO THE RESEARCH STUDY ............................................................ 1 1.1 INTRODUCTION ....................................................................................................... 1 1.2 PROBLEM STATEMENT ............................................................................................. 2 1.3 IMPORTANCE OF STUDY .......................................................................................... 3 1.4 CONCEPTUAL FRAMEWORK ...................................................................................... 5 1.5 RESEARCH QUESTION ............................................................................................. 6 1.5.1 Primary Research Question .......................................................................... 6 1.6 RESEARCH DESIGN AND METHODOLOGY .................................................................. 6 1.6.1 Research Design Objectives ......................................................................... 6 1.6.2 Research Methodology.................................................................................. 8 1.6.3 Chosen Qualitative Methodology Paradigm .................................................. 8 1.7 SAMPLE ................................................................................................................. 9 1.8 MEASURING INSTRUMENT ........................................................................................ 9 1.9 DELIMITATIONS ..................................................................................................... 10 1.10 TERMINOLOGY .................................................................................................. 10 1.11 OUTLINE OF THE STUDY .................................................................................... 12 1.12 SUMMARY ......................................................................................................... 12 CHAPTER 2 .................................................................................................................. 14 LITERATURE REVIEW ................................................................................................ 14 2.1 INTRODUCTION ..................................................................................................... 14 2.2 CHANGES TO GOVERNMENT LEGISLATION .............................................................. 15 2.3 THE IMPACT OF LEGISLATION ON CAPITAL INVESTMENT ........................................... 34 2.4 INVESTMENT IN TRAINING AND EDUCATION TO SUPPORT CAPITAL INVESTMENT ......... 41 2.5 SUMMARY ............................................................................................................ 41 CHAPTER 3 .................................................................................................................. 43 RESEARCH DESIGN AND METHODOLOGY ............................................................. 43 3.1 INTRODUCTION ..................................................................................................... 43 3.2 RESEARCH QUESTION ........................................................................................... 44 3.2.1 Primary Research Question ........................................................................ 44 3.3 RESEARCH DESIGN ............................................................................................... 45 3.4 RESEARCH METHODOLOGY ................................................................................... 46 3.4.1 Research Paradigm ..................................................................................... 47 3.4.2 Chosen Paradigm ........................................................................................ 48 3.5 SAMPLE ............................................................................................................... 49 3.6 ETHICS................................................................................................................. 51 3.7 MEASURING INSTRUMENT ...................................................................................... 52 3.8 SUMMARY ............................................................................................................ 54 CHAPTER 4 .................................................................................................................. 55 EMPIRICAL RESEARCH RESULTS AND DISCUSSIONS ......................................... 55 4.1 INTRODUCTION ..................................................................................................... 55 4.2 SAMPLE AND DEMOGRAPHIC SECTION .................................................................... 55 4.3 INTERVIEW QUESTIONS ......................................................................................... 58 4.3.1 Understanding Of Government Legislation By Industry ............................... 58 4.3.2 Investment In Capital In Preparation For Apdp ............................................ 61 4.3.3 Development In People To Support Capital Investment In Preparation For Apdp 64 4.3.4 Supply Chain Management To Support Capital Investment In Preparation For Apdp ................................................................................................................ 67 4.4 SUMMARY ............................................................................................................ 69 CHAPTER 5 .................................................................................................................. 71 RESEARCH SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................... 71 5.1 INTRODUCTION ..................................................................................................... 71 5.2 RESEARCH SUMMARY ........................................................................................... 71 5.3 CONCLUSION ........................................................................................................ 73 5.4 RECOMMENDATIONS AND AREAS FOR FUTURE RESEARCH ...................................... 78 ii REFERENCE LIST ....................................................................................................... 80 ANNEXURE 1 - COVER LETTER ................................................................................ 85 ANNEXURE 2 – INTERVIEW QUESTIONS ................................................................. 86 ANNEXURE 3 – INTERVIEW 1 .................................................................................... 89 ANNEXURE 4 – INTERVIEW 2 .................................................................................... 94 ANNEXURE 5 – INTERVIEW 3 .................................................................................. 100 ANNEXURE 6 – INTERVIEW 4 .................................................................................. 106 ANNEXURE 7 – INTERVIEW 5 AND 6 COMBINED .................................................. 111 ANNEXURE 8 – INTERVIEW 7 .................................................................................. 116 ANNEXURE 9 – INTERVIEW 8 .................................................................................. 121 ANNEXURE 10 – INTERVIEW 9 ................................................................................ 126 ANNEXURE 11 – INTERVIEW 10 .............................................................................. 131 ANNEXURE 12 – INTERVIEW 11 .............................................................................. 136 ANNEXURE 13 – INTERVIEW 12 .............................................................................. 141 ANNEXURE 14 – INTERVIEW 13 .............................................................................. 146 LIST OF FIGURES Figure 1: Research conceptual framework ...................................................................... 5 Figure 2: The number of experts interviewed per organisation and position ................. 57 Figure 3: The spread and distribution of the experts regarding their experience ........... 57 Figure 4: Understanding of government legislation by industry responses ................... 59 Figure 5: Responses to the investment in capital in preparation for the APDP theme questions ....................................................................................................................... 62 Figure 6: Responses to the development in people to support capital investment in preparation for APDP theme questions 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