Communities of enterprise: SMEs, ICT and regional development

Many regional economies have pursued a strategy of stimulating the development of regional clusters. Such clusters typically include small and medium enterprises (SMEs) as a core component of those economies. Effective cluster development in that context depends on SMEs sharing knowledge and generating innovation. ICT networks can be an important resource for this sharing and innovation. This paper proposes the concept of ‘Communities of Enterprise’ to conceptualise the relationships and communication patterns used in cluster development. This concept builds on theoretical understandings of information systems, clustering and regional development. The value creation potential of Communities of Enterprise, supported by ICTs is substantial, but only when the socioeconomic elements of regional clusters are understood. The Community of Enterprise approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potential for value creation in regional clusters is to be found. This paper concludes by considering the relevance of Communities of Enterprise for understanding and researching eCluster development in the Australian regional context.

Communities of enterprise : developing regional SMEs in the knowledge economy

Purpose – This paper proposes the concepts of Communities of Enterprise (CoEs) and Virtual Communities of Enterprise (VCoEs) to describe business networking patterns in regional areas where there is no central organisational or industry focus and small and medium enterprises dominate the economy. Design/methodology/approach – Based on analysis of the literature this paper builds on theoretical understandings of knowledge management, clustering and regional development.
Findings – The concept of CoEs is most appropriate for regional areas characterised by many small enterprises in diverse industries. CoEs enhance development of regional clusters by contributing to their intellectual capital, innovation culture, value networks and social capital. The incorporation of ICT creates VCoEs which provide added potential by enabling regions to expand their learning potential through innovation.
Research limitations/implications – This paper provides a conceptual foundation for empirical research into regional network or cluster development using ICT.
Practical implications – Virtual Communities of Enterprise value creation potential is substantial but only when the socioeconomic elements of regional clusters are understood. The VCoE approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potential
for value creation in regional clusters is to be found.
Originality/value – The Virtual Communities of Enterprise (VCoEs) concept specifically addresses the unique requirements of SMEs in regions. It has the potential to provide value for regions in a way few ICT based regional development initiatives have been able to achieve.

Knowledge management for SME-based regional clusters

This paper considers the need for knowledge management (KM) in regional clusters comprising many small and medium enterprises (SMEs) and the appropriate KM techniques for this form of economic organisation. Information and communication technologies offer a range of tools to help such clusters develop into electronically-linked eClusters, making KM possible on a scale not previously possible. Most KM techniques have been developed by large organisations and their relevance to SME-based clusters has received little attention. Based on our analysis of the literature, we conclude that KM approaches based on personalised rather than codified information are the most promising model for regionally-based eClusters and that Communities of Practice arising from open forms of internet collaboration are most likely to be successful in this environment. Future research will identify key issues and appropriate techniques for supporting regional clusters with electronic systems for KM.

Virtual communities of enterprise value creation potential for regional clusters

The research examines regionally networked small business practices. A new concept Virtual Communities of Enterprise is proferred to explain the nature of knowledge sharing both interpersonally and online, and its potential for creating value for small businesses and their regions. Social capital emerges as an essential pre-requisite for accessing value.

Virtual communities of practice for regional small businesses: bringing informal networks online

Virtual communities of practice (VCoPs) are online business networks which are increasingly used by large organisations as a key strategy for creating value in the knowledge-based economy of the 21st Century.This paper examines the applicability of VCoPs to cross-industry regionally clustered small business networks. Interviews conducted with government and industry informants in two regional areas of Australia indicate that these strategies used for establishing VCoPs are applicable to such small business networks. Both regions had regional networks with active member involvement displaying CoP characteristics. Significant social capital existed on which VCoPs could be built, and there were viable alternatives to satisfy the roles of sponsors and leaders. There were, however, significant impediments that will have to be addressed before VCoPs can be  implemented such as the apparent reluctance of many SME owners to use the Internet and ICT generally, and the preference for informal networking. Funding to ensure that VCoPs are sustainable was also an issue. VCoPs appear to be extremely useful in linking small businesses in regional areas and in the development of viable regional clusters.

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.

Construction labor productivity convergence: a conditional frontier approach

Purpose-Understanding and simulating construction activities is a vital issue from a macro-perspective, since construction is an important contributor in economic development. Although the construction labor productivity frontier has attracted much research effort, the temporal and regional characteristics have not yet been explored. The purpose of this paper is to investigate the long-run equilibrium and dynamics within construction development under a conditional frontier context. Design/methodology/approach-Analogous to the simplified production function, this research adopts the conditional frontier theory to investigate the convergence of construction labor productivity across regions and over time. Error correction models are implemented to identify the long-run equilibrium and dynamics of construction labor productivity against three types of convergence hypotheses, while a panel regression method is used to capture the regional heterogeneity. The developed models are applied to investigate and simulate the construction labor productivity in the Australian states and territories. Findings-The results suggest that construction labor productivity in Australia should converge to stable frontiers in a long-run perspective. The dynamics of the productivity are mainly caused by the technology utilization efficiency levels of the local construction industry, while the influences of changes in technology level and capital depending appear limited. Five regional clusters of the Australian construction labor productivity are suggested by the simulation results, including New South Wales; Australian Capital Territory; Northern Territory, Queensland, and Western Australia; South Australia; and Tasmania and Victoria. Originality/value-Three types of frontier of construction labor productivity is proposed. An econometric approach is developed to identify the convergence frontier of construction labor productivity across regions over time. The specified model can provides accurate predictions of the construction labor productivity.

Differences in the role of market research and internal CRM according to strategy type

The traditional or conventional role of market research is one of enabling marketing managers to make informed decisions about key strategic issues and likewise reduce chances of poor strategic decisions. (Hamlin, 2000; Raguragavan et al., 2000) Yet recent literature suggests marketing research is becoming marginalized in supporting strategic decisionmaking. (Weber, 2001) In addition internal CRM is emerging as a viable source of aggregated customer intelligence (Malhotra and Peterson, 2001). Very few studies have explored the contingent role business strategy may have in explaining either the changing role of market research or the emergence of internal CRM systems. This study involved a cross-industry postal survey of 240 Australian marketing managers. One contribution of this study was to find market research having a greater role in supporting productivity and political outcomes for Prospector strategies when compared to both Defender and Analyzer strategies. The findings also showed Prospector strategies to have more sophisticated internal CRM systems than Defender strategies.

Differences between differentiators and cost leaders in market research and internal CRM usage

The Porter strategy types of Differentiation and Cost Leadership are put forward as strategies leading to competitive advantage (Porter 1980). These types have quite contrasting implementation guidelines in terms of human resources, organisational structure, job design decision-making process, control systems, and information systems. These internal contrasts suggest Differentiators and Cost Leaders require contrasting roles for market research and internal CRM systems. Very few studies have explored the contingent role business strategy may have in explaining contrasting roles in marketing information systems or market research.

This study involved a cross-industry postal survey of 240 Australian marketing managers. One contribution of this study was to find market research having quite different roles in supporting Marketing (i.e. brand) Differentiators compared to Product (i.e. innovative feature) Differentiators. Surprisingly only one market research role differed when comparing Cost Leaders with Marketing Differentiator strategies. A final contribution was to find that no one strategy having a greater reliance on internal CRM systems in supporting decisionmaking.

Securing small business - the role of information technology policy

As small and medium enterprises develop their capacity to trade  electronically, they and their trading partners stand to gain considerable benefit from the resulting transaction efficiencies and business  relationships. However, this raises the question of how well small business manages its IT security and the threats that security lapses may pose to the wider trading network. It is in the interest of all members of an electronic trading network, as well as governments, to assist smaller companies to secure their business data. This paper considers the relationship between IT security management and IT policy implementation among small  businesses involved in business-to-business eCommerce. It reports the results of a survey of 240 Australian small and medium businesses  operating in a cross-industry environment. The survey found a low level of strategic integration of eCommerce along with inadequate IT security among the respondents, despite the fact that 81% were doing business online and 97% identified their business data as confidential. Businesses which implemented satisfactory levels of security technologies were more likely than others to have an information technology policy within the organisation. The paper proposes a model that outlines the development of security governance and policy implementation for small and medium businesses.

Implementing training packages in a TAFE institute: perceptions and concerns of staff

The advent of training packages is a further change to the vocational education and training sector and is currently being implemented by teaching professionals. This paper outlines the findings of a project involving teachers in a TAFE institution as they begin the process of implementing the cross-industry Laboratory Operations Training Package into their teaching centre. The impetus for the research was the recognition that the change brought about by the new initiative would present a challenge for the teachers and a further change to their role in vocational education and training (VET). The research was qualitative in the form of a case study. Findings demonstrated that the implementation required a significant change in the philosophy of educational practice within the centre and that the implementation process was causing the teachers anxiety and confusion.

Developing a rural and regional science challenge to utilise community and industry-based partnerships

Interest and participation in science in schools has been declining for many years and there is a genuine need to rejuvenate interest in science at the high school level. One possible solution is the completion of challenging science projects which fulfill an authentic purpose in the community. This paper discusses the results of ongoing research into the establishment of a rural and regional Science Challenge which makes use of partnerships with local industries and community groups to encourage the development of authentic science projects. In the development of the Science Challenge, many issues are emerging in relation to teachers' work, resources, administration and school cultures. This paper reports on the preliminary findings and indicates directions for the future.

Measuring the performance of a regional cluster in innovation facilitation

Regional industry clusters have been promoted for several years as effective mechanisms to assist firms become more innovative and more competitive. But do they really achieve this goal, and more importantly, just how should an assessment of cluster performance in supporting and facilitating innovation within its members, be undertaken? In this paper we report on a study of a regional IT cluster in Western Sydney, Australia, develop some criteria for assessing the innovation facilitation performance of industry clusters, and discuss the cluster in relation to these criteria. We suggest that engagement with a cluster may enhance the innovation capacity of a firm, and the type of required innovation support varies significantly with the maturity and absorptive capacity of individual firms.