A framework for electronic commerce research in small to medium-sized enterprises

It is believed that the recent emergence of electronic commerce (e-commerce) in the early '90s could provide different opportunities to small to medium-sized enterprises (SME's) in overcoming part of their technological, environmental, organizational, and managerial inadequacies. However, recent research portrays a gloomy picture about e-commerce uptake and use in SME's. Therefore, the implication here is twofold. Initially, there is a need to generate more e-commerce research that could penetrate much deeper into main impending issues pertaining to the SME’s in their potential uptake and use of e-commerce. On the other hand, e-commerce is characterized of being embryonic but growing very fast and fragmented across the different disciplines, which makes the task of capturing its different perspectives a very complex one. The preceding two implications represent the greatest challenge for researchers and professionals interested in undertaking e-commerce research in SME’s. In line with the above implications, the first objective of this research aims at capturing the different e-commerce perspectives from the SMEs' point of view, and the second objective aims at capturing the e-commerce perspective from the theoretical and the methodological point of view. Addressing the preceding implications in this research could shed some light into some of the gray areas in the e-commerce research in SMEs.

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.

Accounting services and SMEs : an Australian study

Background: The observance of regulation has become a fundamental part of life for the conduct of business around the world. Governments and their duly appointed designates, acting in the interest of the collective public, have relied on regulation to moderate economic and social behaviour through the imposition and enforcement of rules. While it can be commonly accepted that such a prescriptive framework may be necessary for the achievement of desired economic and social outcomes, regulation does impose costs on society and on individual firms. These costs, which can include the costs for government departments to administer, the cost for firms to comply, and the multitude of indirect costs such as lost innovation and productivity or their interrelated opportunity costs, have received ample attention.

Accountants are key advisers to all businesses on all aspects of doing business, including regulation. As such, it is appropriate that ACCA has sponsored this study, which explores the regulatory issues facing SMEs and the critical role that accountants and other organisations play in helping SMEs be aware of, comply with and generally manage effectively the regulations that apply to their business.

ACCA has consistently argued for a balanced view to be taken on regulation, recognising that certain rules are necessary for the fair development of business and for employees’ rights. Yet at the same time, ACCA recognises that SMEs are likely to be disproportionately burdened by regulatory requirements and, as a consequence, it actively campaigns for fairness in regulation, recognising the issue as a significant factor in the success, productivity and growth of small businesses.

Overview: This study complements similar research commissioned by ACCA in the United Kingdom and Canada (Blackburn et al. 2006), with the aim of helping to provide a more international picture of the effects of regulation on adviceseeking by SMEs and how accountants can help SMEs meet their regulatory obligations.

The research commenced in November 2006 and was conducted over the Australian summer period 2006/7, among SMEs and accounting practices, as follows:

* telephone survey among 250 SMEs
* postal survey among 130 accounting practitioner firms.

Key findings: The SME section of this study revealed the following points.

* Most SMEs (between 70% and 80%), agreed that the regulations under review were reasonable, however there were significantly high levels of concern regarding:
* the number of regulations affecting their business (80%)
* staying up to date with changing regulations (80%)
* complexity of regulation or the ease of understanding regulations (77%)
* inequity, or the cost of regulation in proportion to the business (66%)
* duplication, or being required to provide the same information to more than one government department (55%).
* External accountants were the most common source of advice, being used by 72% of SMEs; this was followed by federal government agencies,    62%; trade or industry bodies, 61%; and a lawyer or solicitor, 53%.
* Highest levels of satisfaction with the advice provided were recorded for lawyers/solicitors (94%), banks (91%) and external accountants (90%).
* Overall, 80% of SMEs who had used accountants rated their service as excellent or good. Thirty per cent gave accountants an excellent rating.
* Accountants rated particularly well on the following attributes:
* the potential for a long-term relationship with the business (81% excellent/good)
* technical understanding of the regulatory requirements that apply to the business (79%)
* ability to meet the needs of the business (77%)
* understanding of the business of the SME and its operations (73%).

The survey of accounting practitioners produced the following information.
* The results indicate that SME firms with fewer than 10 employees are the main source of revenue for the respondent accounting practitioners.
* Virtually all accountants provide regulatory advice, primarily in the areas of taxation (particularly Goods and Services Tax, GST), and Do-It-      Yourself (DIY) superannuation requirements. These services provided the accountants with their largest business growth in the two years before the time of the survey.

Seventy-nine per cent of accountants referred their SME clients to external professional advisers. Their comments indicate (see Appendix 4) that some accountants consider their role to be as convenors or advisers for their SME clients. Importantly, according to the accountants, SME firms with fewer than 10 employees did not update their knowledge of regulatory requirements; they relied on their accountant for the right advice. The main types of external adviser to whom accountants referred their SME clients were lawyers and financial planners.

* Accountants expressed their concern regarding the complexity and amount of regulations affecting their SME clients.
* The accountants also stated that they would like to provide additional advice to their SME clients.
 
Confidence intervals – SME survey:  The survey sample size was 250 SMEs from the total of 1.2 million Australian SMEs. Any estimate of proportions agreeing or disagreeing with particular statements must be considered with respect to the margin of possible statistical error. Owing to the small sample size, generalising the results from this study to a wider population of SMEs may be constrained.

A 95% confidence interval of the sample mean for the following estimates based on a percentage agreement of 75% to a proposition with a sample size of 250 would be from 69.5% to 80.5%. The 95% confidence interval for estimates of any other value will diverge slightly in magnitude from the numbers given.

In general then we can be highly confident that the actual sample mean will be within approximately ± 5% of the figure given, with a survey of this size. Confidence intervals – acounting practitioner survey IBISWorld estimates reveal a figure of 9,222 accounting practices in Australia as at June 2006 (IBISWorld 2007). The sample size of 133 accounting practitioners gives a 95% confidence limit that the results reported from the mail-out survey are within the ± 5% confidence interval of the reported values.

Conclusions:  This report describes the results of two parallel surveys undertaken on the impact of business regulation on small and medium-sized enterprises in Australia and on the perceptions of accounting firms about the ways in which the regulatory impact on the SME sector drove their business.

The survey of SMEs provides empirical support for many of the concerns raised with the Regulation Taskforce, which reported to the Australian government in 2006. Many businesses are concerned about the volume and complexity of government legislation as it applies to their business. They are concerned that they are unable to keep up with new legislation and that there is apparent duplication of reporting requirements across the various tiers of government.

The survey of accountants revealed that accounting firms derive a significant proportion of their revenue from SMEs. While the SMEs are concerned with regulatory changes, the accountants surveyed reported that the major growth areas in their businesses were in what could be seen as traditional accounting areas of tax and superannuation. Some SMEs sought advice on areas such as employment law, environmental regulation and health and safety but it appears that many accountants refer their clients to specialists in these areas. Recent changes to the laws regarding financial planning in Australia may lead to changes in the market for financial advice in Australia, with many accountants apparently regarding this as a key driver of future business opportunities.

The surveys were conducted using a similar instrument to similar surveys conducted in the UK and Canada and reported in Blackburn et al. (2006). Comparisons of the Australian survey results with those from the UK and Canada seem to support the perception that Australian business is not over-regulated, but the SME sector is concerned with the volume and complexity of regulation. This suggests that the SME sector wants to see improvements to Australia’s regulatory regime as a result of the work of the Regulation Taskforce undertaken in 2005/6. In its response to the work of the Taskforce the government agreed with 158 of the 178 specific recommendations of the Taskforce. This now needs to be followed through at all levels of government.

Accountants in all three countries understand their SME clients’ concerns with the burden of regulation and they are prepared to advise their clients where appropriate or refer them to specialist advisers. Most business growth for accountants has come from the taxation area. Very few accountants in the UK or Australia specialise in providing advice in the areas of environmental regulation or health and safety regulation.

International comparisons show that in all three countries accountants are generally highly regarded by SMEs for their professionalism and competence. The major area of client concern is the value for money offered by the accountant’s service. In an era of rapidly shifting professional and technical boundaries, accountants need to be more strongly attuned to levels of client satisfaction. Lawyers, financial planners and a plethora of specialist advisers operate in the business services market and if they have an opportunity to take business from accountants by competing on price they may well do so. This suggests a stronger role for professional accounting bodies in monitoring the broader business services market for opportunities and threats on behalf of their membership.

Do service and merchandise exporters behave and perform differently? : a New Zealand investigation

Research on export behaviour and the determinants of export performance of manufacturing firms abounds in the literature. By contrast relatively little research has been undertaken that focuses on service exporters despite the growing importance of service exports in most advanced industrialised countries. This paper compares the export behaviour and performance of service firms to those of manufacturing firms. The study is based on a survey of 155 small and medium size exporters from New Zealand. The results suggest that service exporters are distinctively unique in many respects and exhibit export behaviours that are different from exporters of merchandise. Generally, service firms have greater flexibility to adapt their products to the specific requirements of their customers, use direct export channels more often and are also more proactive than merchandise firms in the establishment of future export strategies. Overall, the size and commitment of service exporters have the greatest influence on their performance.

Brand management in small to medium-sized enterprises

Although an impressive body of literature has emerged focusing on the critical activities involved in brand management for larger organizations with well-established brands and substantial marketing budgets, no research has been undertaken to examine branding within small to medium-sized enterprises (SMEs). The present study therefore seeks to assess the nature and scope of brand management within an SME context. Findings show significant differences between small and large organizations along 9 of the 10 brand management dimensions reported in Keller's brand report card. Moreover, different brand management practices are associated with business performance in SMEs. Implications of the study are highlighted, limitations noted, and directions for future research outlined.

SMEs and the potential for a collaborative path to environmental responsibility

Globally, the potential for small and medium-sized enterprises (SMEs) to collectively impact negatively on the environment is great. Therefore, the adoption, and maintenance, of environmentally responsible practices by this group of firms is especially critical. Studies of environmental practices successfully implemented by small firms have revealed that relationships with other firms, or other organizations, can contribute to greater awareness of the benefits of such activities and, therefore, enhance the possibility of environmental engagement. Collaborative relationships may provide opportunities for SMEs to overcome some of the barriers to implementing environmental initiatives associated with their size, and/or associated characteristics. This paper focuses on attitudes of SME owner-managers to a variety of environmental issues (including regulation and voluntary standards), and to collaborating with other firms (in either a formal or informal sense). The data this paper draws upon are from two waves of an ongoing longitudinal survey of New Zealand SMEs.

How do SMEs with single and multiple owners finance their operations differently? Empirical evidence from China

We study the impact of firm-level characteristics on the capital structures of private small and medium-sized enterprises (SMEs) as well as the differences between the capital structures adopted by SMEs with single and multiple owners in China. Our findings highlight the limited use of asset-based financing by Chinese SMEs. We also find that the propensity of SMEs with single-owners to use external debt was significantly less than those with multiple owners. Furthermore, our findings suggest that single-owned firms are subject to a more constrained pecking order than those with multiple owners.

Ownership concentration and product innovation in Chinese private SMEs

Product innovation is extremely important to the growth, success, and ultimate survival of firms. Although its unique features in small and medium-sized enterprises (SMEs) have gained growing attention in the literature, there is limited knowledge as to how ownership concentration moderates the relationship between product innovation and its determinants. Based upon insights from agency and institutional theories, we examine the moderating effects of ownership concentration on the relationship between product innovation and its key determinants in Chinese SMEs, utilizing a large dataset of 43,728 Chinese firms over the period 2005-2006. We focus on examining the differences between single-owner SMEs, where there is dominant control of one family member, and multiple-owner SMEs, where principal-agent conflicts and principal-principal conflicts are more likely to occur. Our findings indicate that single-owned firms tend to convert research and development into product innovation more efficiently than firms with multiple owners, who are typically better at utilizing external sources of knowledge and human capital.

Implementation of innovative technologies in small-scale construction firms: five Australian case studies

Purpose - The users of construction technologies such as builders and trades people have been acknowledged as sources of potentially important innovations. These innovations may be in the form of safer, less labour intensive, or cheaper methods and processes. The purpose of this paper is to assess whether the Australian construction industry is providing an environment where user-based innovation is being supported and implemented. Design/methodology/approach - An explorative study was undertaken to provide an insight into actual experiences of the implementation of user-based innovation. The data were collected through faceto- face semi-structured interviews providing case studies on multiple aspects of the implementation of innovative construction technologies. The cases involved a cross section of advances, including product, tool, and system technologies. Findings - The main motivation behind developing the technologies was problem solving. The associated industries of manufacturing and retail, as well as consultants within the construction industry present the greatest barriers to implementation. Originality/value - This research provides a better understanding of the factors that are preventing the successful implementation of user-based innovative construction technologies in small firms.

Tracking and tracing applications of 3G for SMEs

With dynamic growth and acceptance of mobile devices, many innovative business applications are beginning to emerge. Tracking and tracing seems to be one of the popular applications which many organisations have initiated, often facilitated by location based services provided by mobile network operators. However, there are many issues associated with the provisioning of this application with current technologies and business models. Small and Medium-size Enterprises (SMEs) that make up a significant segment of businesses worldwide do not yet seem able to benefit widely from these services. In this chapter, we initially review current technologies/ applications and the issues associated with them, drawing from research and the experiences of a long term ongoing action research project with SMEs in the trade sector. Subsequently, we explore the opportunities offered by 3G services/business applications to SMEs, and provide a broad critical outlook on future opportunities for SMEs to benefit from 3G services.

Implications in e-commerce research in small business

It is believed that the recent emergence of electronic commerce (eCommerce) in the early 90s could provide different opportunities to small and medium-sized enterprises (SMEs) in overcoming part of their technological. environmental, organizational, and managerial inadequacies. However, recent research portrays a gloomy picture about eCommerce uptake and use in SMEs. Therefore. the implication here is twofold. Initially. there is a need to generate more eCommerce research that could penetrate much deeper into main impending issues pertaining to the SMEs in their potential uptake and use of eCommerce. On the other hand. eCommerce is characterized of being embryonic but growing very fast and fragmented across the different disciplines. which makes the task of capturing its different perspectives a very complex task. The preceding two implications represent the greatest challenge for researchers and professionals interested in undertaking eCommerce research in SMEs. In line with the above implications. the first objective of this research aims at capturing the different eCommerce perspectives from the SMEs point of view and the second objective aims at capturing the eCommerce perspective from the theoretical and the methodological point of view. Addressing the preceding implications in this research could shed some light into some of the grey areas in the eCommerce research in SMEs.

Australian SMES and e-security guides on trusting the internet

There have been many standards and guides written for the implementation of computer security and information security concentrating on appropriate implementation of procedures for effective information security management. Such guides are limited when dealing with e-business and its implementation by Small and Medium Business Enterprises (SMEs). In Australia the National Office for the Information Economy (NOIE) has released a small business guide for e-security for performing such services while fulfilling the necessary security requirements. This paper presents an overview of this current small business guide to e-security with special reference to deriving a common set of criteria for implementing security measures in the SME e-business environment.