An analysis of the association between firms' investment opportunities, board composition and firm performance

The purpose of this paper is to identify the variables that influence the board structure adopted by firms and the subsequent relationship to the firm's performance. The results of this study of 229 Australian firms show that firms' investment opportunities are strongly associated with a higher proportion of executive directors ("EDs") on the board. The results also show that the negative relationship between a firm's investment opportunity set ("IDS") and firm performance is weakened at higher levels of non-executive director board domination. These results have implications for policy setters and managers of firms with investment opportunities

Technical efficiency in Australian textile and clothing firms: evidence from the business longitudinal survey

This paper estimates technical efficiency of Australian textile and clothing firms based on the data obtained from the Business Longitudinal Survey (BLS) conducted by the Australian Bureau of Statistics (ABS). Using a Cobb Douglas stochastic production frontier the paper examines firm level technical efficiency in the time varying inefficiency effect model with technical inefficiency effects assumed as an independently distributed truncated normal variable. Estimates of the production frontier revealed significant but small elasticities of labour and capital for textile and clothing firms, respectively, and a negative (but insignificant) Hicks neutral technical change for both. Estimated coefficients of the explanatory variables for inefficiency effects indicated that technical efficiency varied significantly according to firms’ age, size, capital intensity, proportion of non-production to total workers and type of legal status. Predicted firm specific efficiency varied from 16 per cent to 95 per cent and mean efficiency ranged between 30 to 70 per cent. In view of these results policies have been suggested to improve technical efficiency of the firms as well as productivity growth of the sub sectors.

Voices of experience : developing export capability through eCommerce in Australian SMEs

This paper reports an exploratory study of 19 Australian SMEs which had successfully used eCommerce develop to or enhance their export capability. The purpose of the study was to identify both successful adoption processes and impediments to using eCommerce for export. Few companies had  adopted a strategic and planned approach to managing this adoption. The lack of easily accessed and trustworthy information and advice was partly responsible. The study identified a number of other obstacles to  eCommerce export development, including infrastructure and technical deficiencies, lack of awareness and expertise, problems with banking and finance and problems with physical links into export destinations. The developments that would most enable Australian companies to use eCommerce for export are identified as: improvements in the infrastructure on which eCommerce depends; the provision of consolidated, impartial information and advice about the use of eCommerce for export; and training and skills development to facilitate the implementation of eCommerce for export.

AQIS, EXDOC and the 'meaties' : an interpretivist case study of an Australian export documentation system implementation

EXDOC is an on-line export documentation system implemented by the Australian Quarantine Inspection Service [AQIS] and used currently by 90% of meat exporters. At a time when governments world-wide are increasingly committed to introducing electronic service delivery [ESD], this is a timely exemplar of innovative practice. In this paper, we consider the initial implementation of EXDOC in the meat export sector in order to identify the factors that led to the successful adoption of this system.

We consider these factors in the context of diffusion of innovation literature supplemented with Bijker’s social constructivist framework. The theoretical flexibility provided by this combination of approaches enabled us to draw out a number of implications from the data that bear on strategy formulation.

Factors found to have significant bearing on the early adoption of EXDOC included: (1) idiosyncratic factors precipitating the initial implementation (2) the constraints based on accommodating user capabilities (3) the organisational role taken by AQIS (4) diffusion as a self-reinforcing and value-adding effect.

A standard represents both a problem as a requirement of such a system and a problem solving strategy eliciting compliance to the system requirements. Over the period of shaping and stabilizing of the industry standard, AQIS was required to act as facilitator in the coordination of the actors.

The implementation of systems like EXDOC enables users to identify what they want from a system, specifying their preferences and tradeoffs. Such implementations offer opportunities for systems redesign within export business sectors with major strategic implications for the industry.

An integrated information strategy for ecommerce for export : enhancing networking in an international business context

Companies using electronic commerce to facilitate their export activities (EC4X) need information and support at all stages of their export development and eCommerce adoption. This need is especially pressing for small and medium enterprises (SMEs). This paper reports the findings of a study of EC4X information and support needs among a sample of Australian companies. Evidence from SMEs, business associations and the Victorian state government suggests that governments need to develop a strategy for cost-effective on-line EC4X material that incorporates both generic and specific information. On-line provision of information is an effective way to meet the needs of SMEs and is increasingly the preferred channel for government bodies seeking to promote EC4X capability. However, personal contacts and networks are still an essential part of international business. Thus, an effective government strategy will support the business networking and personal contacts so important to help SMEs develop both eCommerce and export activities.

Management of the market research function in client firms

Companies vary in the way they structure their market research function. This was hypothesized to affect the perceived value of their research. A survey of 241 marketing managers in major Australian firms showed that structure positively affected the perceived value of market research information while bolstering the internal client’s position.

Sources of productivity growth in Australian textile and clothing firms

This paper estimates the sources of productivity growth in Australian textile and clothing firms based on the Business Longitudinal Survey (BLS) from 1995 to 1998. Productivity growth estimates have been obtained for each sub-category of textile and clothing firms. Sources of growth in multifactor productivity (MFP) are examined with growth in technical efficiency and scale effects based on estimates of stochastic frontier production functions. Separate estimates of output growth have been compared with the productivity growth estimates for each of the product categories. MFP improved in all clothing firms and declined in textile firms over 1997–1998 by four-digit level of Australia New Zealand Standard Industrial classification Scheme (ANZSIC). MFP declined in most major categories of both textile and clothing firms in 1995–1997. Changes in technical efficiency mostly dominated scale effects in the overall direction of MFPG in both textile and clothing firms. The findings of the study provide evidence for policies for improving the firms' operative performance in the ongoing liberalised regime.

Explaining retail offer adaptation through psychic distance

Purpose – The purpose of this study is to examine empirically the relationship between psychic distance and adaptation of the retail offer across a range of countries.

Design/methodology/approach – Data were collected using a mail survey of randomly selected non-food retailers that operated stores in at least three foreign countries.

Findings – Findings of this study suggest that a substantial proportion of retail offer adaptation is explained by psychic distance. In particular, differences in market structure, business practices and language between the home and foreign market significantly increase the extent to which retailers adapt their offer.

Research limitations/implications – The research findings may be limited in terms of their generalisability across retail sectors, as the study focused on non-food retailers only.

Practical implications – These results have implications for researchers and managers in suggesting that we need to go beyond consumer behaviour differences to explain fully the degree to which international firms standardise or adapt their strategies in foreign markets.

Originality/value – Much of the existing research into standardisation and adaptation is limited in terms of geographic scope and a focus on the marketing strategies of manufacturing and export firms. Thus, this paper addresses a substantial gap in existing research by empirically examining the relationship between psychic distance and adaptation in a retail context and across a range of countries.

Sources of productivity growth in Australian textile and clothing firms

This paper estimates the sources of productivity growth in Australian textile and clothing firms based on the Business Longitudinal Survey (BLS) from 1995 to 1998. Productivity growth estimates have been obtained for each sub-category of textile and clothing firms. Sources of growth in multifactor productivity (MFP) are examined with growth in technical efficiency and scale effects based on estimates of stochastic frontier production functions. Separate estimates of output growth have been compared with the productivity growth estimates for each of the product categories. MFP improved in all clothing firms and declined in textile firms over 1997–1998 by four-digit level of Australia New Zealand Standard Industrial classification Scheme (ANZSIC). MFP declined in most major categories of both textile and clothing firms in 1995–1997. Changes in technical efficiency mostly dominated scale effects in the overall direction of MFPG in both textile and clothing firms. The findings of the study provide evidence for policies for improving the firms' operative performance in the ongoing liberalised regime.

Export-led growth hypothesis: evidence from Papua New Guinea and Fiji

Purpose - This paper aims to examine the export-led growth hypothesis for Fiji and Papua New Guinea (PNG).

Design/methodology/approach – The paper investigates the export-led growth hypothesis for Fiji and PNG who have been facing dismal economic growth performances over the last couple of decades.

Findings – Findings of the study suggest that for Fiji there is evidence of export-led growth in the long-run, while for PNG there is evidence of export-led growth in the short-run.

Originality/value – The findings of this paper have important messages for policy makers given that export sectors in both countries investigated are underdeveloped due mainly to a sustained period of political instability.