Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Capacity Development Programmes Best Practice in the South African Petroleum Industry: A Key Factor for Socio-Economic Transformation Process in South Africa

Author(s): Eustache Tanzala Kikasu, Nirmala Dorasamy

This paper explored capacity development programmes best practice in the South African petroleum industry as a key factor that can contribute to socio-economic transformation in South Africa. The socio-economic environment in the African continent, as well as, the South African society is challenged by numerous factors that are causing stagnation and lack of improvement/development from a lot of efforts and resources that are engaged to promote organisational, institutional and socio-economic transformation process. Therefore, in most cases, the political, economic and social components of the PESTIE factors are amongst the major variables that promote or affect organisational, institutional and socio-economic transformation process in Africa, including South Africa. But, specifically, understanding the role of capacity development programmes on human capital capacity development in the petroleum industry was the focus of this study in order to promoting sustainable socio-economic transformation in South Africa. Mostly, the main problem or phenomenon examined in this study involved “the critical issue of technical skills shortages” or “scarcity of technical skills”, which is affecting currently the petroleum industry development and consequently, the socio-economic transformation process in South Africa. In addition, the deficit of positive human capital capacity and skills waste were also explored as the critical factors obstructing the attempt to organisational/institutional and socio-economic transformation in South Africa. Therefore, the triangulation methods facilitated the gathering of quantitative and qualitative data from petroleum companies, members of the South African Petroleum Industry Association (SAPIA). The results of this study indicated that (84.2%) capacity development programmes best practice in the petroleum industry can facilitate competitive advantages, increased productivity and performance, as well as opportunities for community lifestyle change; and that 77.6% of respondents attested that capacity development could promote socio-economic transformation by addressing the issue of skills development within sectors such as energy, trade, health, education, industries, politics, housing, agriculture, transportation, communal services, and tourism and recreational improvements, etc. Accordingly, this paper alert the South African community in general and particularly, major stakeholders involved in the petroleum industry about the necessity to addressing capacity development programmes as a key socio-economic factor amongst others, that could alleviate issues such as technical skills shortages, skills waste and the deficit of positive human capital capacity development in the public and private sectors. Thus, in this paper, the best practice of capacity development programmes in the South African petroleum industry was addressed as the locomotive of human capital capacity development in the workplace and as the engine of socio-economic transformation in the country.

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