SUNConferences, 29th Annual Conference of SAIIE

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THE ROLE GOVERNANCE STRUCTURE PLAYS BETWEEN THE MANUFACTURER AND DISTRIBUTOR DURING THE 4TH INDUSTRIAL REVOLUTION
Ludolf Badenhorst, Elma Vanderlingen

Last modified: 2018-10-09

Abstract


A system that will be affected by Industry 4.0 is the value chain of manufacturers. Currently the relationship between manufacturers and distributors plays an important role in their success, but it will be tested vigorously while competing in the Industry 4.0 era. Governance structure between the manufacturer and distributor is a means to nurture their relationship, but will have to be tested whether it is sufficient to mitigate risks the distributor might face in the era of Industry 4.0. This study analysed the feedback from 98 South African distributors and found that there is a correlation between the current governance structure in place and distributors willingness to invest towards Industry 4.0, as well as the potential increase in transaction costs.


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