Transaction cost economics and industry maturity in it outsourcing: a meta-analysis of contract type choice

Recent reviews of the information technology outsourcing (ITO) literature report high variance in research results when Transaction Cost Economics (TCE) is used as the analytical framework. Informed by ITO market developments, including increasing commoditisation, market consolidation, and market transparency, we develop an explanation for these mixed results contingent on ITO industry maturity. We adopt meta-analysis to show that ITO industry maturity significantly explains variance in the choice of contract type (time and materials vs. fixed price) in ITO projects. Our results suggest that TCE is relevant to explain the choice of contract type in the emerging phase of the ITO industry, but not in its current mature phase. We conclude that a TCE-based analytical framework is not well suited for the study of ITO in the current mature industry phase. Instead, we propose that an "endogenous" ITO theory should be developed that focuses on differences in client behaviour rather than vendor behaviour.

Short-term debt maturity structures, credit ratings, and the pricing of audit services

ABSTRACT: Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data for 2003 through 2006, we find that short-term debt is negatively related to audit fees for firms rated by Standard & Poor’s, consistent with more monitoring and better governance mechanisms in firms with higher short-term debt. Credit ratings quality is negatively related to audit fees, consistent with ratings quality reflecting a firm’s liquidity risk, governance mechanisms, and monitoring from rating agencies. We also find that the negative relation between short-term debt and audit fees is stronger for firms with low-quality credit ratings, consistent with auditors pricing lender monitoring.

Short-term debt maturity, monitoring and accruals-based earnings management

Most prior studies assume a positive relation between debt and earnings management, consistent with the financial distress theory. However, the empirical evidence for financial distress theory is mixed. Another stream of studies argues that lenders of short-term debt play a monitoring role over management, especially when the firm's creditworthiness is not in doubt. To explore the implications of these arguments on managers' earnings management incentives, we examine a sample of US firms over the period 2003-2006 and find that short-term debt is positively associated with accruals-based earnings management (measured by discretionary accruals), consistent with the financial distress theory. We also find that this relation is significantly weaker for firms that are of higher creditworthiness (i.e. investment grade firms), consistent with monitoring benefits outweighing financial distress reasons for managing earnings.

The relationship between time of founding and the composition of the workforce in Australian workplaces

This paper presents the results of an analysis of the relationship between organisational age and two specific aspects of labour flexibility-numerical
flexibility and workforce skill composition (as one facet of functional flexibility)that extends earlier work in two ways. First, it uses data from a large-scale national survey (the Australian Workplace Industrial Relations Survey [AWIRS)1995). Second. it focuses on two widely studied facets of labour flexibility, numerical flexibility and functional flexibility. Previous research has investigated the relationship between organisational age and aspects of organisation such as strategy and structure (Baum and Oliver, 1991; Henderson, 1999; Reed and Blunsdon, 1998). Henderson (1999) found that age effects were contingent on different organisational strategies and process. Reed and Blunsdon (1998) found that organisational maturity is associated with goal directed, or strategic flexibility characterised by low levels of formal rules and regulations but clarity a/purpose. But a more complex relationship was also identified - for example; very young organisations (founded in the 1990,) appear to have higher levels of formalisation at founding than organisations established in earlier periods. This paper investigates these questions further. The results show that the relationship between age; numerical flexibility and workforce skill composition is non-linear, but the data do not make it possible to separate age effects associated with aging, time of founding and changing environmental conditions.

Growth rates of the infaunal bivalve Soletellina alba (Lamarck, 1818) (Bivalvia: Psammobiidae) in an intermittent estuary of southern Australia

Caging and a mark–recapture design were used to estimate the growth rate of the brittle, infaunal bivalve Soletellina alba in the Hopkins River estuary. The growth of both caged and uncaged individuals was monitored at three sites near the mouth of the estuary over 180 days. Growth rates did not differ for caged and uncaged bivalves, or for bivalves subject to different amounts of handling, or between sites. Growth did differ between consecutive time intervals, which was attributable to negligible growth occurring during the colder months of autumn/winter. Comparisons of the condition (as indicated by total mass for length³) of S. alba were inconsistent between sites for caged and uncaged bivalves and for those subject to different amounts of handling. Soletellina alba is a rapidly growing bivalve with mean growth rates for the three time intervals being 0.04±0.002 mm day⁻¹ in summer, 0.02±0.001 mm day⁻¹ in autumn and 0.03±0.001 mm day⁻¹ from summer to winter. Using existing literature, it was shown that a significant relationship exists between maximum shell length and onset of sexual maturity in bivalve molluscs. This relationship predicts that S. alba should reach the onset of sexual maturity at 15.8 mm length. Therefore, it appears that it may be possible for juvenile S. alba (<1 mm) to grow, reach sexual maturity and reproduce in between annual mass-mortality events caused by winter flooding.

But for the barriers: significant extensions to children's capacity

This article focuses on children’s capacity to exercise legal rights. It is argued that, undisturbed by the High Court’s subsequent decision, the Family Court in B & B & Minister for Immigration and Multicultural & Indigenous Affairs [2003] Fam CA has found that a child’s capacity is qualified only by contingent factors. This represents a significant development of the prevailing Gillick approach for the determination of the competence of children and young people. Where the Gillick approach requires a positive inquiry as to whether the actual maturity level of an
individual child or young person is adequate relative to the question at issue, the new approach focuses on barriers to justice encountered by the child. At least in relation to some matters, capacity is presupposed.

Speaking of gender: teachers' metaphorical constructs of male and female students

This article explores the images and metaphors that teachers use when speaking of their relations with students and examines how these images work to call into play particular constructs of gender relations. Of specific interest is the way teachers use binaries of open/closed, in control/out of control and maturity/immaturity to make sense of feminine and masculine conduct respectively. It is argued that such binary differentiations work not only as descriptors of `truths' concerning student-teacher relations, but also as means of constituting and normalizing particular forms of gender  relations. Implications of such metaphorical constructions for gender reform within schools are considered.

A linkage measure framework for the real estate sector

Linkage is one of the most important factors for gaining competitive advantage. Information on linkages is essential to understanding the structure of an economy, which is in turn important in formulating industry policies and business strategies. The hypothetical extraction method is used to measure the linkages by extracting a sector hypothetically from an economic system in the literature. In the previous research, however, the internal linkage (linkage within a sector) and sectoral linkages (linkage between two specific sectors) are ignored, and there is not a comprehensive framework to measure the linkages of a specific sector. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this paper aims to resolve these two shortcomings and thereby propose a linkage measure framework to explore the linkages between the real estate sector and other sectors from a new angle. The relative and absolute linkages are termed and the total, backward, forward, internal and sectoral linkage indicators are formulated to investigate the linkages of the real estate sector from all directions. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. This framework also can be employed in other sectors.

Linkage measures of the construction sector using the hypothetical extraction method

The hypothetical extraction method (HEM) is used to extract a sector hypothetically from an economic system and examine the influence of this extraction on other sectors in the economy. Linkage measures based on the HEM become increasingly prominent. However, little construction linkage research applies the HEM. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this research applies the HEM to the construction sector in order to explore the role of this sector in national economies and the quantitative interdependence between the construction sector and the remaining sectors. The output differences before and after the hypothetical extraction reflect the linkages of the construction sector. Empirical results show a declining trend of the total, backward and forward linkages, which confirms the decreasing role of the construction sector with economic maturity over the examined period from a new angle. Analytical results reveal that the unique nature of the construction sector and multifold external factors are the main reasons for the linkage difference between countries. Moreover, hypothesis-testing results consider statistically that the extraction structures employed in this research are appropriate to analyse the linkages of the construction sector.

Comparing external and internal dorsal-spine bands to interpret the age and growth of the giant lantern shark, Etmopterus baxteri (Squaliformes: Etmopteridae)

The giant lantern shark, Etmopterus baxteri, is taken as bycatch of commercial fisheries that operate in deepwater off southeastern Australia. Bands on the second dorsal spine were used to obtain age estimates. The number of bands on the external surface of the spine and within the inner dentine layer increased with animal length. Most spines had more bands on the external surface, and the rate of band formation was significantly different between the external surface and the inner dentine layer. Females had a maximum of 57 external bands and 26 internal bands, while males had up to 48 external bands and 22 internal bands. Age estimates from external bands suggest maturity (A ₅₀) at 20 years for males and 30 years for females. Internal band age estimates suggest maturity at 10.5 years for males and 11.5 years for females. Although there is a large discrepancy between these two preliminary (i.e., unvalidated) age estimates, they both suggest that E. baxteri is a long-lived and late maturing species that is likely to be susceptible to over fishing.

Surface bands on deepwater squalid dorsal-fin spines : an alternative method for ageing centroselachus crepidater

Bands on the external surface of the second dorsal-fin spine proved to be a novel method of estimating the age and growth of Centroselachus crepidater. Bands that followed the shape of the spine base were enhanced with an alizarin red derivative. Internal bands in spine cross sections were also examined. The number of both external and internal bands increased with animal size, although most spines had more external than internal bands. External bands were more reliable and were assumed to be annuli. The rate of band formation differed after five bands had been formed, and internal bands ceased forming after 30 years. Females to 54 years old and males to 34 years old were examined. Maturity occurred over a wide age range, with estimates of 20 years for females and 9 years for males. The youngest pregnant female was 27 years old. The Francis reparameterized von Bertalanffy growth model found similar growth for males and females, and the von Bertalanffy equations were L _t = 96.12^{(1 – e(–0.072(t+6.13))}) for females and L_t = 73.22(1 – e^{(–0.141(t+2.99))}) for males.

Knowledge mediation in software quality engineering

The risk of failure of the software development process remains high despite many attempts to improve the quality of software engineering. Contemporary approaches to process assurance, such as the capability maturity model have not prevented systemic failures, nor have project management methodologies provided guarantees of software quality. The paper proposes an approach to software quality assurance based on a knowledge mediated concurrent audit, which incorporates essential feedback processes. Through a tightly integrated approach to quality audit, programmers would be empowered to use any chosen methodology to advantage, supported by intelligent monitoring of the essential interactions which occur in the development process. An experimental application implementing some aspects of the proposal is described

Technical development for deconstruction management

The Australian construction industry, particularly in the area of demolishing existing facilities, is responsible for up to 40% of the country's enormous solid waste streams, totalling about 14 million tonnes annually. The recently created concept of deconstruction, rather than destruction for demolishing a constructed facility, came about because of the rapidly increasing number of demolished buildings and changes in levels of environmental awareness. However,  reconstruction processes are now seen as only an interesting concept for reducing waste through reuse and recycling, but they fail to achieve widespread understanding or acceptance. The challenges faced by deconstruction are significant and diverse. The maturity of deconstruction practice depends on not only on tlle development of deconstruction techniques and management, but also on the enhancement of deconstruction awareness by the owners, designers, and construction teams, as well as the development of environmental regulations. These practical limitations are interrelated and mutually promotional. The technical developments in deconstruction management resulting from this research will have direct effects on various aspects, including the development of design and construction for deconstruction, deconstruction technology, reused material certification, recycl ing technology, and a method by which to calculate environmental benefits so that deconstruction would be promoted from an interesting concept mainly in theory to wide acceptance in practice. 

Positivism: one ring to rule them all? A tale of information systems research methodology

The tale of research methodology in information systems is told through the fantasy of Tolkien’s Lord of the Rings. The tale is intended to be at once a piece of light hearted fun in its placement of the struggles of research methodology as an epic story but, in the tradition of the court jester, attempts to provide a new perspective on Information Systems (IS) research methodology and our struggles with positivism in particular. Our tale is one of developing a greater maturity and confidence in IS methodology and introduces postmodern methodologies to Information Systems. Our tale, our pastiche, is itself postmodern.