Electronic commerce in small to medium-sized enterprises : frameworks, issues and implications

Electronic Commerce in Small to Medium-Sized Enterprises: Frameworks, Issues and Implications addresses eCommerce issues in small to medium-sized enterprises (SMEs) in a global setting. The book aims at addressing issues that are of importance to researchers, to students, and to professionals interested in the eCommerce field in SMEs and hence, interested in addressing issues pertaining to theory and to practice.

Not so easy being green?

Small and medium enterprises (SMEs) make up the bulk of modern economies. In Australia alone, there are about 951,000 small businesses in the private non-agricultural sector, employing 3.1 million people. For professional advisers and managers of these SMEs, the growing community concern for environmental issues will have quite an impact and SMEs are likely to find that ecological issues will become a big part of the daily management and strategic development of their firms. There are a few inherent problems standing in the way of greater environmental performance by Australia's SMEs. SMEs' lack of time and expertise is sometimes used as an excuse for inaction. But one way to get around this could be through outsourcing.

Socio-technical factors influencing channel use for knowledge-sharing in regional SME networks

The economic sustainability of regional areas is dependent on cross-industry innovation and knowledge-sharing among Small and Medium Enterprises (SMEs). The web-based initiatives deployed in regions worldwide to facilitate SME knowledge-sharing have typically been unsuccessful. This paper argues that the main reason for these failures is the lack of understanding of the socio-technical factors which influence the use of web-based channels (websites, online forums and expertise databases) as well as the more conventional channels (face-to-face and e-mail). This paper reports the findings of interpretive case studies of two regional SME business networks. It evaluates the major channels on six socio-technical criteria: link strength; trustworthiness; tacitness; usability; durability and currency. None of the channels were strong against all socio-technical factors. This highlights the importance of achieving an appropriate mix of channels to facilitate SME knowledge-sharing.

Using sister city relationships to access the Chinese market

Purpose – The purpose of this paper is to offer a new approach for small and medium enterprises (SMEs) in Australia to engage in sustainable trade with China through the use of Sister City relationships. The reason for writing this paper is to address this research gap with the aim of influencing government policy at the national and the local level.

Design/methodology/approach – The main methods used is a historical literature review, a critical review of the effectiveness of the Sister City relationships and an examination of a special Sister City relationship between Latrobe City in Australia and the Chinese city of Taizhou.

Findings – Throughout the course of the paper it was established that Sister City relationships had been insufficiently utilized as commercial facilitators and especially SMEs in regional Australia. This was especially evident in terms of trade relations with China.

Research limitations/implications – This conceptual paper will require further research at different levels. Future research should establish what Australian sister cities with China are actually doing and how a more focused relationship utilizing SMEs in their territory might be utilized. This is clearly a limitation with this conceptual paper, which it is hoped will be overcome with new research planned by the authors.

Practical implications – The practical implications emerging from this paper is that Sister City relationships can be refocused from their current role to becoming structurally integrated into trade facilitators for SMEs in pursuing trade with China. Most Sister City relationships do not have a trade focus in the first instance. As a result of this paper we are hoping that local government policy makers and state government trade facilitators will see Sister City relationships in a new light.

Originality/value – This paper brings to attention cases of Sister City relationships which have gravitated towards a trade focus (an exception like Latrobe City) in which results are already evident. A paper of this kind is directed at governments at all levels as well as SMEs who wish to work better with government.

Intervention strategies to engage small and medium sized enterprise in environmental good practice

Small and medium sized enterprises (SMEs) are an important part of the world economy but they are thought to be responsible for around 60% of all carbon dioxide emissions by businesses in the UK and 70% of all pollution. SMEs often have major problems with limited resources, limited knowledge and limited technical capabilities to deal with their own environmental impact. SMEs exhibit widely differing characteristics and behaviours where environmental issues are concerned. Yet under these conditions they are all expected to engage in environmentally responsible business for the greater good of society. Interventions that encourage good environmental behaviour are often polarised between regulation and legislation at one extreme and voluntary environmental agreements at the other. It is clear that a holistic mixture of interventions is necessary to achieve maximum engagement by all SMEs. This paper categorises the main behaviours observed in SMEs towards environmental issues and develops a selection or 'tool kit' of intervention strategies that might be deployed within each category of SME for maximum effect.

Building information modelling project decision support framework

Building Information Modelling (BIM) is an information technology [IT] enabled approach to managing design data in the AEC/FM (Architecture, Engineering and Construction/ Facilities Management) industry. BIM enables improved interdisciplinary collaboration across distributed teams, intelligent documentation and information retrieval, greater consistency in building data, better conflict detection and enhanced facilities management. Despite the apparent benefits the adoption of BIM in practice has been slow. Workshops with industry focus groups were conducted to identify the industry needs, concerns and expectations from participants who had implemented BIM or were BIM “ready”. Factors inhibiting BIM adoption include lack of training, low business incentives, perception of lack of rewards, technological concerns, industry fragmentation related to uneven ICT adoption practices, contractual matters and resistance to changing current work practice. Successful BIM usage depends on collective adoption of BIM across the different disciplines and support by the client. The relationship of current work practices to future BIM scenarios was identified as an important strategy as the participants believed that BIM cannot be efficiently used with traditional practices and methods. The key to successful implementation is to explore the extent to which current work practices must change. Currently there is a perception that all work practices and processes must adopt and change for effective usage of BIM. It is acknowledged that new roles and responsibilities are emerging and that different parties will lead BIM on different projects. A contingency based approach to the problem of implementation was taken which relies upon integration of BIM project champion, procurement strategy, team capability analysis, commercial software availability/applicability and phase decision making and event analysis. Organizations need to understand: (a) their own work processes and requirements; (b) the range of BIM applications available in the market and their capabilities (c) the potential benefits of different BIM applications and their roles in different phases of the project lifecycle, and (d) collective supply chain adoption capabilities. A framework is proposed to support organizations selection of BIM usage strategies that meet their project requirements. Case studies are being conducted to develop the framework. The results of the preliminary design management case study is presented for contractor led BIM specific to the design and construct procurement strategy.

The tsunami of independent directors - how to handle the demand

Good governance is recognized as a fundamental indicator of the success of a company. For a small- midsized company, this is particularly so, as such companies must be able to competitively demonstrate their flexibility in the face of market forces. This flexibility is the primary advantage they hold over larger firms (Dalton, Daily, Ellstrand and Johnson, 1998).

Such companies, however, can find it difficult to attract good directors (Daum and Neff, 2003) and this makes developing improved strategies of governance a challenge. Taylor, Chait and Holland suggest top directors are not attracted to small/ medium companies because "the stakes remain low, the meetings process-driven, the outcomes ambiguous, and the deliberations insular" (Taylor, Chait and Holland, 2001). We suggest that the attraction of quality directors is a uniquely impacting situation for small and mid-size firms, as it is there where additional management resources should be needed most urgently.

Directors on the boards of small-medium sized businesses are often lagging behind directors of large companies in that they are less likely to be independent external directors and are less likely to represent a diversity of attributes (Dalton, Daily, Ellstrand and Johnson, 1998). Arthur Levitt, former United States Securities and Exchange Commission Chair, describes the culture of medium sized business directorships as a "kind of a fraternity of CEOs who serve on one another's boards" (Stainburn, 2005). In addition, evidence suggests directors of small- medium businesses are often insufficiently trained for the role. Uncertain directors may, for example, be unwilling to ask crucial questions of managers before making major decisions. "Board members sometimes are made to feel that asking a thorny question or advancing an alternative opinion is disloyal to the administration" (Taylor, Chait and Holland, 2001).

Small and medium businesses, however, are a growing contributor to the national economies of countries internationally. In New Zealand, small and medium-size firms recording large GDP values, ahead of many large businesses, which makes our investigation into good governance practices of SMEs relevant to suggest areas in which these firms can improve their governance policies and practices.

We have reviewed more than 2,000 directors, executives and investors in New Zealand, making this one of the largest non-government surveys in governance. Supported by 16 large corporate organizations, such as KPMG, Business New Zealand, Simpson Grierson, Brook Asset Management, Porter Novelli, Sheffield and 'Management' Magazine, this work suggests that the current processes through which directors are selected and trained to serve on Boards of small and medium businesses needs to be altered. We are also concerned over the lack of director education and the close involvement of the Chief Executives as members of the Boards. There is a general concern over the lack of director independence and whether directors are effective in their roles.

We are recommending an alternative process for SMEs to select directors, which will hopefully expand the available pool of directors in quantity and quality.

Good governance - not just for the big boys governance in organizations in New Zealand

Good governance is recognized as a fundamental indicator of the success of a company. For a small- midsized company, this is particularly so, as such companies must be able to competitively demonstrate their flexibility in the face of market forces. This flexibility is the primary advantage they hold over larger firms (Dalton, Daily, Ellstrand and Johnson, 1998). Such companies, however, can find it difficult to attract good directors (Daum and Neff, 2003) and this makes developing improved strategies of governance a challenge. Taylor, Chait and Holland suggest top directors are not attracted to small/ medium companies because “the stakes remain low, the meetings process-driven, the outcomes ambiguous, and the deliberations insular” (Taylor, Chait and Holland, 2001). We suggest that the attraction of quality directors is a uniquely impacting situation for small and mid-size firms, as it is there where additional management resources should be needed most urgently. Directors on the boards of small-medium sized businesses are often lagging behind directors of large companies in that they are less likely to be independent external directors and are less likely to represent a diversity of attributes (Dalton, Daily, Ellstrand and Johnson, 1998). Arthur Levitt, former United States Securities and Exchange Commission Chair, describes the culture of medium sized business directorships as a “kind of a fraternity of CEOs who serve on one another's boards” (Stainburn, 2005). In addition, evidence suggests directors of small- medium businesses are often insufficiently trained for the role. Uncertain directors may, for example, be unwilling to ask crucial questions of managers before making major decisions. “Board members sometimes are made to feel that asking a thorny question or advancing an alternative opinion is disloyal to the administration” (Taylor, Chait and Holland, 2001). Small and medium businesses, however, are a growing contributor to the national economies of countries internationally. In New Zealand, small and medium-size firms recording large GDP values, ahead of many large businesses, which makes our investigation into good governance practices of SMEs relevant to suggest areas in which these firms can improve their governance policies and practices. We have reviewed more than 2,000 directors, executives and investors in New Zealand, making this one of the largest non-government surveys in governance. Supported by 16 large corporate organizations, such as KPMG, Business New Zealand, Simpson Grierson, Brook Asset Management, Porter Novelli, Sheffield and ‘Management’ Magazine, this work suggests that the current processes through which directors are selected and trained to serve on Boards of small and medium businesses needs to be altered. We are also concerned over the lack of director education and the close involvement of the Chief Executives as members of the Boards. There is a general concern over the lack of director independence and whether directors are effective in their roles. We are recommending an alternative process for SMEs to select directors, which will hopefully expand the available pool of directors in quantity and quality.

The development of 'soft' strategic indicators for international client satisfaction

Despite the increasing significance of the construction industry as an emerging sector of the Australian economy, there is inadequate research performed on construction design firms in terms of theoretical and empirical foundations. Although past research has identified the barriers and success factors for firm market entry, evidence suggests that to date no research has explicitly explored the sustainability of construction design firms in international markets. SMEs and their approach to firm internationalisation differ significantly from large manufacturing firms and a vast majority of construction design firms operate as SMEs. This paper develops a sustainable business model for construction design SMEs, which rely upon the development of clear Client Following (CF) versus Market Seeking (MS) strategies to support internal firm strategic and operational management. The understanding of these strategies is vital as the application of either will shape the design management approach of firms, which would in turn impact on the sustainability of these firms in foreign markets. Long-term sustainability of firms in international markets relies heavily upon client satisfaction. Client and project team participants’ communication during various design processes has often been problematic and the added difficulty of communicating across international boundaries further compounds the problem of capturing and maintaining client’s requirements. Therefore this paper develops a model for business sustainability of Australian construction design firms working in international markets by exploring factors that affect client satisfaction across international boundaries, through the development of business performance indicators. These include not only the critical financial capital but also other ‘softer’ indicators, namely: social, cultural and intellectual capital. These act as a firm’s measure of success and the acquisition of this type of capital will provide significant advantages to firms’ success, hence sustainability in international markets.

Toward high growth enterprise

The disproportional impact of high growth firms on economies around the world has made them a natural focus of policy attention in New Zealand. That is what is behind New Zealand's ICT taskforce recommendations in 2003 to grow 100 ICT companies each doing over US$ 100 million sales per year by 2012 (a huge accomplishment for a small economy). Those companies could help New Zealand's foreign exchange earnings and jobs, not to mention improved health care, better resourced schools and tertiary institutions, debt reduction and increased savings, and improved standard of living (ICT Taskforce, 2003).

Entrepreneurship policy development : New Zealand in comparison

This paper first examines the impact of entrepreneurship research on policy development in 20 countries of the Global Entrepreneurship Monitor project. Curiously, despite its entrepreneurial endowments, the impact on New Zealand falls behind other countries. For a deeper insight, the paper then compares entrepreneurship and innovation policies in New Zealand and Sinaloa, Mexico. New Zealand has a robust innovation policy yet places little emphasis on the needs of actual individual entrepreneurs and their decision to choose self-employment. In Sinaloa, the emphasis is on creating more and better entrepreneurs, but there is no innovation policy. Both sides have something to learn from the other.

Customer-oriented NPD models for entrepreneurial firms

New Product Development (NPD) is an underutilised methodology in New Zealand. In this paper the authors review the literature on New Product Development, NPD theory and methods for early stage product design and development to make it better understood to SMEs.

How do Australian small and medium enterprises communicate their corporate social responsibility activities online?

Much of the existing research on Corporate Social Responsibility (CSR) focuses on large firms, with comparatively little on Small and Medium Enterprises (SMEs). The SME research focuses on barriers and drivers to CSR and neglects how SMEs communicate their CSR activities. This paper addresses this gap by reporting on a content analysis of 443 Australian SME websites which identifies how they are using this channel to communicate their CSR activities.

Marketing strategy for small application service providers in a new market

Small to medium-sized enterprises (SMEs) including small application service providers (ASPs) are playing an increasingly important role in the development of global economies particularly in developing countries like China. This paper studies marketing strategies of small application service providers (ASP) with a focus on what the important factors are to establish a new ASP business in China. An analytical hierarchy process (AHP) method is used to analyse critical factors of the ASP industry. The research surveyed CEOs or senior managers who are working in ASP firms, to identify how a marketing strategy can be developed for an ASP firm to start business in China. It is found that the localisation of middle level managers, the localisation of products and services, the protection of intellectual property (IP), and infrastructure and transportation system are the most important factors for small ASP firms to do business in China.

The Australian small to medium enterprise E-business Security Methodology (ASME-EBSM)

This research investigated Australian SMEs (small to medium enterprises), E-business and strategies for security management. Limitations of current approaches and empirical survey results produced the Australian SME E-business Security Methodology. This new approach delivers recommendations to provide e-business security management strategies for micro, small and medium SME e-business systems.