The Strategic outsourcing Decision of IT and eCommerce: The Case of Small Businesses in New Zealand

In New Zealand, small to medium-sized enterprises (SMEs) play a very important role in the economy by their contribution to both employment and gross domestic product. Addressing issues pertinent to SMEs is of paramount importance in driving this sector forward. Information Technology (IT) emerges as one main enabler for SMEs in automating their operations, seeking new opportunities and enhancing their strategic business positioning in local and international markets. However, the inability of SMEs to handle the dynamic nature of IT due to problems inherent in their size, structure and resources, makes it difficult for them to take appropriate decisions to benefit from the IT technologies. The advent of eCommerce (EC) has only compounded this problem. One way out of this complex situation is to outsource the IT and EC technology requirements by the SMEs. This study endeavours to identify the pattern of IT and EC outsourcing issues of SMEs within New Zealand. This research attempts to identify the main driver for IT/EC outsourcing in SMEs as well as to explore the problems of IT outsourcing and makes suggestions for further research in this crucial sector.

Sustainable development and environmental accounting: the challenge to the economics and accounting profession

Purpose – The purpose of this paper is to examine the role of natural resources accounting in sustainable development. Natural resource accounting is important because the welfare of a nation measured in terms of gross domestic product (GDP) has several weaknesses. Design/methodology/approach – This paper achieves this objective by identifying the present status, the constraints and the challenges for the economics and accounting professions. Findings – The main weakness of GDP as a measure of development is that it does not take into account damages to environmental resources. However, the improvement of the concept to include environmental resource use is made difficult because of the difficulties of measuring environmental damage. The challenge to the economics and accounting profession is to ensure interdisciplinary collaboration, development of a framework to explicitly include the environment, development of credible valuation procedures for the environment, and inclusion of the various ethical positions advanced by various groups on the value of the environment. Practical implications – Some headway has been made on these issues during the last decade but a major challenge still lies ahead in further improving these approaches so that sustainable development becomes an achievable goal. Originality/value – This paper brings together diverse views and fusing them together providing a future path for research in environmental accounting to achieve sustainable development.

Measuring social welfare: application of social choice theory

This paper questions conventional approaches to measuring social welfare through gross domestic product (GDP). This paper is divided into two parts. The first part adopts a systems approach to development and incorporates this into the theory of social choice. The second part operationalises this approach through the development of a cost-benefit adjusted gross domestic product (CBAGDP) social welfare function, which overcomes certain limitations of this traditional measure of development. The CBAGDP is then used to estimate welfare in Thailand. This approach is justified because of its normative values and its plausible results.

IT and ecommerce outsourcing in small to medium-size enterprises in New Zealand : an exploratory research

In New Zealand, small to medium-sized enterprises (SMEs) play a very important role in the economy by their contribution to both employment and also to gross domestic product. Addressing issues pertinent to SMEs is of paramount importance in driving this sector forward. Information Technology (IT) emerges as one main enabler for SMEs in automating their operations, seeking new opportunities and enhancing their strategic business positioning in local and international markets. However, the dynamic nature of IT and inability of SMEs, due to problems inherent in their size and structure, makes it difficult for them to take appropriate decisions to benefit from the IT technologies. The advent of eCommerce (EC) has only compounded this problem. One way out of this complex situation is to outsource the IT and EC technology requirements by the SMEs. This study endeavours to identify the pattern of IT and EC outsourcing issues of SMEs within New Zealand. It reveals that the main driver for IT outsourcing is access to expertise and used mainly for maintenance purposes only. The study also identifies the problems in IT outsourcing and makes suggestions for further research in this crucial sector.

A comparative study on economic factors of construction industries in Australia and China

The construction sector produces the facilities needed for a large majority of the production of goods and services, in which a sizeable proportion of Gross Domestic Product is generated. Recent trends in the globalisation of construction markets indicate that many countries consider construction industry competitiveness as crucial, and are working to increase construction productivity, in particular where the construction industries play an important role in their economic development. This paper first points out the research importance in international construction. Based on economic analyses of construction industries, a study is then carried out to focus on the economic sizes and benefits of the Chinese construction industry and to compare them with the Australian construction industry. Results derived from such an international construction comparison will assist in the Australian construction communities understanding the construction markets and industries in China and will benefit in international construction participation and cooperation.

Privatization and economic growth in Australia: the shorthand of a long process

The impact of privatization on economic growth has been little investigated relative to disaggregated approaches. A growth accounting framework is used here to investigate the impact of privatization on growth for the  Australian economy. The contribution of public capital to the private sector and whether the growth process is endogenous or Solow is evaluated. Separate measures of public and private capital are computed in order to estimate their impacts with labour on Australian gross domestic product (GDP) growth for the period 1960 to 2003. A simple growth rates version is found preferred by stationarity and other tests. Labour growth appears to strongly positively influence the growth of GDP. In contrast, public capital growth has no statistically significant effect on GDP growth, or on private capital productivity. The data are consistent with the hypothesis that the coefficients of the growth equation are the same before and during privatization.

Is the Genuine Progress Indicator really genuine? Considering well-being impacts of exports and imports

The Genuine Progress Indicator (GPI) is estimated as if nations operate within a closed economy. Therefore, in terms of coverage, the GPI is most analogous to Gross Domestic Product (GDP). Indeed, within the relevant literature, these two indicators are most often contrasted. However, consideration should be given to adapting the GPI, so it has more in common with Gross National Income (GNI). As with GDP, the GPI is concerned only with a particular physical location. Yet, it may be more effective if the GPI was freed from these physical boundaries in a similar manner to GNI. The GPI should be concerned more with the 'ownership' of the costs and benefits associated with economic growth than with the 'location' of those costs and benefits. Those that derive the most benefit from exploitation of the environment are often physically removed from the location of that damage. The GPI does not consider the net consumers of the negative externalities of environmental costs, merely the producers. Currently, however, the structure of the GPI allows a nation to enjoy, without penalty, the benefits of importing goods from countries which bear a disproportionately large cost of environmental degradation. This results in an overstatement of the real progress experienced by the county importing 'dirty goods'. This paper will investigate how certain GPI adjustments may be adapted to overcome this present shortcoming. However, the purpose of this paper is not only to empirically implement this new approach, but also to stimulate debate as to its potential merit.

Comparing Australias genuine progress to its economic growth performance

Australia has recorded consistently strong levels of economic growth in recent times. Under conventional considerations, the well-being experienced by Australians would also be considered to have increased in equal terms over this period. This is because aggregate standard national accounts have from their inception been assigned as proxy measures of well-being both within the economic literature and public debate. However, this approach fails to consider a number of important economic costs and non-welfaristic impacts on well-being associated with a growing economy. As a result, figures such as Gross Domestic Product (GDP) per capita over-estimate well-being. It is possible to adjust these estimates to overcome these limitations. Within this paper, the sustainable well-being of Australia will be reviewed by estimating a Genuine Progress Indicator (GPI) for the period 1986–2003. Policy implications following from this new analysis will also be discussed.

The Australian construction linkages in the 1990s

Abstract: During the 1990s, the construction sector played an important role with its growing contributions to the gross national product, gross domestic product and employment in the Australian economy. Using the newly released 1998-99 input-output table and four previously published tables by the Australian Bureau of Statistics, this paper aims to measure the sectoral linkages of the Australian construction sector in the 1990s in relation to other industrial countries. Results describe the increase in construction volume was mainly due to the increase in governmental and non-residential construction expenditures and lagging construction technology. The technical level of the non-residential construction sub-sector was a drag to the total construction, while the non-residential construction sub-sector presented a stronger economic push than that of the residential construction sub-sector. In the 1990s, the inputs and outputs' components of the construction sector were stable. The linkages of the Australian construction sector are discussed from an international point of view.

"Information effect" of economic news: SPI futures

The present study investigates the behaviour of Share Price Index (SPI) futures returns, volatility, and trading volume behaviour around the announcement of Current Account Deficit (CAD), Gross Domestic Product (GDP), and Inflation (CPI). The futures market data are sampled at 1-, 5-, and 10-min intervals at the announcement time. After controlling for risk, a significant positive abnormal return can be earned based on the good news release. However, it is unlikely that traders could make an economic profit by exploiting this effect. In this sense, this futures market returns are found to react efficiently to good news. Volatility behaviour around announcements provides the same conclusion. As for the relationship between returns, volatility, and volume upon information arrival, returns are positively related to trading volume, which is inconsistent with the ‘short sales constraint’ theory. Trading volume is found to increase as the level of volatility rises. The redenomination of the SPI futures and options contract from A$100 to A$25 per basis point is found to increase trading volume in excess of that expected due to the redenomination. However, market return and volatility are unaffected by the redenomination.

The welfare economics of measuring sustainability: a new approach based on social choice theory and systems analysis

This paper presents a new measure of sustainability within a welfare economics framework. Gross domestic product (GDP) can be used as an indicator of sustainability if the GDP estimates are undertaken within a cost-benefit analysis framework based on social choice perspectives. Sustainability is dependent on a healthy and functioning socio-economic and environmental (SEE) system. Economic development can damage the SEE system through resource degradation, over-harvesting and pollution. This paper addresses the tensions between economic development and sustainability by undertaking a number of SEE-based adjustments to GDP based on social choice perspectives in order to measure sustainability. These adjustments include the environmental and social costs caused by economic development such as water pollution, the depletion of non-renewable resources, and deforestation. Thailand is used as a case study for a 25 year period (1975-1999). The results show a divergence in terms of GDP per capita and the SEE-adjusted GDP per capita figure. The paper concludes that, with increasing environmental and social costs of economic development, pursuing such extreme high growth objectives without due environmental and social considerations can threaten present social welfare and future sustainability. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.