The role of mobile phone web utilisation in creating economic growth in South Africa

Abstract

Mobile phone web utilisation is relatively new in South Africa, and not only does it provide more convenience to existing Internet users, but it can potentially overcome the access problems that are attendant in the utilisation of the web by most South Africans. This could go a long way to bridging the Digital Divide and contribute to South Africa’s economic growth. It is therefore important to understand the role that the South African mobile phone web utilisation cluster may play in creating national competitive advantage. This exploratory research study focuses on understanding the role of mobile phone web utilisation in creating economic growth in South Africa. It uses a combination of empirical evidence on the mobile phone web utilisation cluster, academic theory around Porter’s Diamond Model of the Micro Economics of Competitiveness, and pre-existing international and local research. The question that was considered was “Does the Mobile phone web utilisation cluster represent a source of competitive advantage for South Africa?” To support this investigation the following areas were explored; • What is the universe of the mobile phone web utilisation cluster? • Are the related and supporting industries conducive to competition? • Are firm strategies, structures and competitive rivalry conditions conducive to • competitiveness in this cluster? • Are demand conditions conducive to global and local competitive growth? • Are factor conditions conducive to competitiveness? • What is the role of Government? The research found that in most aspects, this cluster has the potential to play a role in creating competitive advantage and contributing to South Africa’s economic growth.