Determinants of electronic commerce adoption in small businesses in New Zealand

The findings of this thesis suggest that the inexpensive nature of eCommerce, the extent of CEO innovativeness, the need to remain competitive, the relevance of the Internet to the type of business, the SME's size and the apparent compatibility of eCommerce in business were the only determinants of eCommerce adoption in SMEs in New Zealand.

Firm survival through a crisis : the influence of market orientation, marketing innovation and business strategy

As an outcome of the economic crisis, the global manufacturing sector is collapsing. Focusing on Chinese manufacturing small and medium enterprises (SMEs), this study investigates whether marketing innovation, defined as improvements in the marketing mix, can assist in withstanding the challenges of operating under the current economic conditions. A conceptual model linking market orientation, marketing innovation, competitive advantage and firm survival is tested using structural equation modelling. Three key findings are derived. First, the examined Chinese manufacturing SMEs had a greater perceived likelihood of survival had they developed and sustained a competitive advantage. Second, marketing innovation assisted in developing and sustaining competitive advantages based on differentiation and cost leadership strategies. Third, marketing innovation capabilities improved when the examined manufacturing SMEs were competitor oriented and had good inter-functional capabilities.

Customer-product interaction : a model for new product development in entrepreneurial firms

Use of New Product Development (NPD) methods may benefit New Zealand SMEs and entrepreneurial firms in gaining greater market share. In this paper we review the literature on New Product Development, NPD theory and methods for early stage product design and development. Our reading suggests that product design has greater success when the customer is involved in the design effort. It also recommends methods of approach to new markets in the (NPD) life cycle. The literature further elucidates methods for identification of product design criteria based on customer needs identification. In essence, customer-product interaction in the early stages of product development is important to product success in new markets for entrepreneurial firms and SMEs. Of particular interest are early-stage NPD research methods and their influence on the company’s marketing strategy.

A learning laboratory approach for business improvement : the case of discontinuous innovation

This paper considers the current situation within Australian manufacturing SMEs and their approaches to innovation and international competitive advantage. Using the viewpoint and language of complexity theory, we consider the variety of possibilities available to SMEs in this area. We then consider a particular international project on Discontinuous Innovation, how this has been deployed in Europe and Australia and the knowledge gained from our interactions with Australian SMEs to date around this project. Finally we consider the general development of a “Learning Laboratory” approach to working with SMEs and the differences required to make such approach successful in Europe and in different settings in Australia.

Pervasive limitations : innovating with ambient intelligence (AmI) technologies and restricted absorptive capacity in Australian SME manufacturers

The last 25 years have seen rapid increases in the number and sophistication of technological and process innovations in large manufacturers, producing dramatic improvements in productivity and efficiency. However, smaller manufacturers’ adoption of such innovations has been uneven. Ambient Intelligence (AmI) technologies are being positioned as the next performance and productivity enhancing purchase for manufacturers. This paper defines and gives examples of AmI technologies in current use, summarises AmI technologies of potential interest to small and medium enterprise (SME) manufacturers, and identifies potential impacts of restricted absorptive capacity in SMEs on the adoption of AmI technologies. Comparing two SME manufacturers, one from Germany and one from Australia illustrates a potential application of generic AmI technology based business solutions to a range of SME manufacturers.

Strategy and continuous improvement in small-to-medium Australian manufacturers

While Australian firms have generally recognised the value of continuous improvement (CI) in improving performance, many have yet to develop systems to ensure that the efforts of the CI program are focussed on issues of strategic importance to the company. In fact, as recognised in operations management generally, CI activities can have a significant impact on the development of strategy as well as its implementation. The research reported here uses a CI mapping methodology to chart the relationship between CI and strategy in small- to medium-sized manufacturers. Analysis of the link between the firms’ strategies and CI programs indicates that most firms involved in the study made little attempt to link the two and some appear to be unaware of any need to do so. However, such findings seem to be dependent on company size, the maturity of the CI program and the competitive position of the firm. The paper also includes an examination of the role of operations and shopfloor CI in company strategy, particularly as related to SMEs.

Enhancing Chinese SME performance through innovative HR practices

Purpose – The purpose of this paper is to show how understanding of human resource (HR) management practices which have been adopted in the emerging markets such as that in China is particularly interesting to academia and management practitioners. The purpose of this study is to shed some light on the implementation of innovative HR practices among 74 Chinese small and medium-sized enterprises (SMEs) and to explain how the HR practices influence their firm performance.

Design/methodology/approach – Cluster analysis is used to group Chinese SMEs according to their adoption of innovative human resource (HR) practices and examine how the practices are associated with HR outcomes and firm performance.

Findings – It is found that the membership of clusters is influenced by several factors, including ownership, age and size of firms. These characteristics have influenced the motivation, capacity and ability of firms in the sample to adopt high performance human resource practices. The extent to which firms have adopted innovative human resource practices is shown to be closely associated with human resource outcomes and firm performance.

Originality/value – The key implication is that SMEs, especially those rapidly developing domestic and collectively owned small firms, as well as those state-owned enterprises in China, may see clearly the benefits of devoting greater attention to HR practices to achieve their future growth potential.

How do Australian small and medium enterprises communicate their environmental improvement activities online?

There have been calls in the IS/eBusiness literature for research on "green" IS/IT in a Small and Medium Enterprises (SMEs) context. The Corporate Social Responsibility (CSR) literature has neglected the issue of how SMEs can use websites to communicate their environmental improvement activities. This paper links these two previously separate disciplines by reporting on a content analysis of 443 Australian SME websites from four industry sectors to identify if and how they use websites to communicate their environmental improvement activities. The study found that 47 websites were communicating such activities in some form. A detailed analysis was undertaken of these 47 websites to identify emergent themes relating to how these SMEs were communicating their environmental improvement activities. These themes resulted in a reconceptualisation of the traditional "4 Ps" of marketing for online communication of environmental improvement activities by SMEs: profile; product; process; and prominence.

Multi-market industrial organizational economic models for the internationalization process by small and medium enterprise construction design service firms

Small and medium enterprises (SMEs) are critical to strategic initiatives in an economy; however, their contribution to foreign trade is not as significant. SMEs are one of the principal driving forces in economic development. One of the greatest challenges is the internationalization process for longevity rather than seeing the process as initial market entry. The internationalization process research has typically involved four key constructs: market selection, decision to enter, entry modes and factors affecting entry modes. Past research has focused on large manufacturing firms. The export of architectural, engineering and construction (AEC) firms has undergone growth, yet there is still significant opportunity for further growth. The majority of AEC firms are SMEs. Notwithstanding assistance provided through international trade missions, organized export firm support networks and information packages by a burgeoning number of government agencies, there are still perceived barriers to market entry and long-term economic sustainability for SMEs. There are a number of problems faced by SMEs acting in foreign trade. This investigation explores the successful initial internationalization process constructs and identifies unique project-oriented sector characteristics. The study identified similarities and differences between two firms that have been exporting to various localities, including Eastern Europe, Africa, Middle East, UK, Asia and South America, for more than two decades. The similarities and differences were identified within eight major constructs: purpose, firm type, market image and design philosophy, entry mode strategy, institutional arrangement, factors affecting mode of entry, market selection and firm strategy in relation to project selection. The primary reasons for internationalization were associated with the firms' motivations related to growth and financial viability. This article discusses the various internationalization processes and strategies intrinsic to each case study and establishes a detailed set of empirical observations from which to develop further a grounded theoretical model of reflexive capability for the internationalization process. This study contributes to the body of knowledge around the SME AEC design service firm's internationalization process, as a dynamic, evolving and continuously adaptable construct for project-based sectors.

A method for examining corporate social responsibility descriptions on SME websites

There is growing IS research concerning SME use of websites and limited but growing research on corporate social responsibility (CSR) by SMEs. However, to-date these two bodies of literature have remained largely separate. This paper links these fields by presenting an SME website content analysis method. Melville in his seminal MIS Quarterly article called for such methods which provide a nexus of IS, organisations and environment (which we extend to CSR). The method involves four steps: 1) identifying sources of SME websites; 2) determining if websites are describing CSR (based on the literature CSR by SMEs); 3) archiving website content for analysis; and 4) coding the website content using a structured framework (combining the literature on IS and CSR in an SME context). The paper also provides suggestions on how IS researchers can apply the method for quantitative and qualitative/exploratory objectives for future research.

Benchmarking the implementation of continuing professional development in the Victorian construction industry

In the state of Victoria, the state government has taken a leadership position on the potential benefit of introducing voluntary continuing professional development (CPD) for registered building practitioners (RBPs) in the construction industry. Benefits are believed to accrue to the Victorian community through a more highly skilled and managed SME construction sector, improved quality buildings with fewer defects and greater efficiencies gained by a reduction in industry internal and external operating costs. This research has identified appropriate industry and community benchmarks to enable a quantification of the costs and benefits that result from this policy. These benchmarks will enable the policymaking body of Victoria, the Building Commission (BC) to evaluate the effects of the implementation of its policy and contribute to informing the debate about the merits and possible drawbacks of such a policy in the construction industry in Victoria.

The proposed Victorian CPD policy will affect a whole industry sector. This pioneering policy approach is already being viewed as a touchstone for other jurisdictions in Australia and abroad. Consequently, this research project is considered by our industry partner to be pivotal in the leadership position that they are taking in Victoria. This investigation is being conducted by the research team under the auspices, guidance and with the cooperation of the Building Commission (BC) and the Building Practitioners Board (BPB) of Victoria. This policy research evaluation is necessary to assess the proposed implementation of CPD in the Victorian construction industry. The identification and creation of agreed and significant industry benchmarks are crucial to evaluating this policy initiative. These benchmarks will serve as independent yardsticks for assessing the impact of the new policy and are described and discussed in this paper.

Explaining the levels of innovation and R&D in New Zealand's small and medium-sized enterprises : too many small firms?

This paper is concerned with explaining the levels of innovative activity in New Zealand's SMEs. It is arguable that New Zealand provides a special case where innovation and R&D levels are comparatively low in SMEs, yet, paradoxically, it is also a nation of high rates of entrepreneurial activity. This paper seeks to examine the factors that affect innovation levels in New Zealand SMEs from an analysis of panel data set of 1500 SMEs. We test research propositions based on existing theory and literature on innovation levels in SMEs and discuss our findings. Firm size is found to be significant; we argue that New Zealand has too few growth firms rather than too many small firms and we suggest that barriers to innovation, such as access to finance, remain an issue which should be a focus for government support.

Economic accountability in the context of local governance in the Philippines : a structural equation modelling approach

This study posits that by virtue of the enabling role of local governments, the economic development of their locality must be at the core of their public accountability, which is referred to here as “economic accountability”. Grounded on this idea of accountability, along with enabling theory and institutional theory, the study presents empirical evidence supportive of the argument that the enabling role of local governments, as manifested in a capacity to establish or adhere to formal institutional arrangements, has a direct impact on the entrepreneurial strategic posture and performance of local small and medium enterprises (SMEs) which are key players in local economic development.The results of the structural equation modelling support the view that institutional arrangements as manifestations of the enabling role of city governments are positively associated with an entrepreneurial strategic posture of local firms, which consequently improves the firms’ overall economic performance. Therefore, SME development in particular, and local economic development in general, should be part of the economic accountability of local governments in the Philippine context of local governance.

Social capital for knowledge management : the case of small and medium-sized enterprises in the Asia-Pacific Region

This article proposes a conceptual framework that explains that the social capital of a community shapes the innovation performance of small and medium-sized enterprises (SMEs) through knowledge management within the firm. The study's significance stems from the unprecedented effort in explaining how community social capital matters in the innovation performance of SMEs, a departure from previous studies that have typically examined market-related or hierarchical social capital in the form of formal networks and directly linked them to a firm's innovation performance without due regard for knowledge management within the firm as an antecedent of organisational innovation performance. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in the SME and/or entrepreneurial context.