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.

Process improvement and ICTs in Australian SMEs: a selection and implementation framework

This article describes the development, modification and testing of a tool designed to assist small firms in making more appropriate decisions regarding information and communication technology (ICT) selection and implementation. Using a combination of quantitative and qualitative methods, a number of possible tools were initially developed to support firm-based self-diagnostic exercises. Research outcomes from a joint European–Australian research project were regionalised for Australian conditions through collaborative product development with a number of Australian SME manufacturing firms. This article reports on the pilot implementations and the outcomes achieved with these Australian SMEs. These implementations have shown successful outcomes for the trial SME participants and have led to the creation of an online self-assessment tool to allow wider access by interested SMEs

Convergence among the sub-markets in Australian regional building and construction sector

Studies on market convergence are well considered in the literature. However, the majority of the previous research focused on housing markets and few studies have concentrated on construction markets. Owing to a simultaneously dramatic increase in the construction prices of the sub-markets in the building construction sector in Australia, this paper aims to identify the convergence among these markets, involving house construction market, other-residential building construction market, and non-residential building construction market. To achieve it the Granger causality test and generalized response function depending on the vector error correction model with the quarterly data of Australia’s eight states from 1998 to 2010 will be applied. Based upon the econometric tests, the price diffusion patterns among these construction markets have been identified. Research on the convergences of construction markets not only helps construction firms perform well in business operations and arbitrage activities, but also provides policy makers with useful information for enacting effective construction policies for national perspectives and approaches to infrastructure planning.

Australian waterbirds : time and space travellers in dynamic desert landscapes

Australia’s waterbirds are mostly nomadic, capitalising on highly variable aquatic resources in the arid interior (70% of the continent) for feeding and breeding. Waterbirds, unlike most aquatic organisms, can move between catchments, exploiting habitat wherever it occurs. In Australia, patterns of resource availability for waterbirds are mostly pulsed with peaks of productivity, coinciding with flooding and differing in time and space, affecting individuals, species and functional groups of waterbirds. Australian waterbirds are no different from waterbirds elsewhere, with their behaviour reflecting broad-scale resource availability. They respond to changing patterns of resource distribution, with rapid movements at spatial and temporal scales commensurate with the dynamics of the resource. The most serious conservation threat to waterbirds is a bottleneck in resource availability, leading to population declines, increasingly forced by anthropogenic impacts. River regulation and other threats (e.g. draining) reduce the availability of wetland habitat and decrease the probability of viable resource patches. It is axiomatic that waterbirds need water and such population bottlenecks may occur when the availability of water across the continent is limited. The rehabilitation of regulated rivers with environmental flows and protection of naturally flowing rivers in the arid region are essential for long-term sustainability of Australia’s waterbird populations.

Seasonal winds drive water temperature cycle and migration patterns of Southern Australian giant crab Pseudocarcinus gigas

The giant crab Pseudocarcinus gigas occurs along the continental shelf break of southern Australia. During the summer alongshore winds cause cooler water to upwell onto the shelf, and the crabs move from deeper water onto the shelf where there is more food. The combination of a preferred thermal niche and a depth-stratified food supply defines the favorable foraging environments that enhance the growth of P. gigas. Climate change is expected to cause a southerly shift of the austral subtropical high-pressure belt, and modelers have predicted more upwelling-favorable winds. The associated increase in the circulation of cooler water across the shelf is likely to provide P. gigas with an increased access to benthic food resources and their growth rate may increase in some regions.

Analysis of Australian politicians speeches

While competing interpretations of Australian history occasionally attract controversy, there is a need for a comprehensive analysis, over time, of the significance of histories and history making for Australian politicians. In taking the longer view of Australian political speech and thought since the Federation, this data will provide a stronger foundation for both political engagement with historical themes and public appreciation of the continuing role of history in contemporary policy debates. The data comprises comprehensive qualitative analysis, using key search terms and themes, over time, of speeches of Australian politicians. Sources used include Hansard, other occasional speeches in public records, political party records, and Australian Parliamentary Library resources.

A resource-based view of small export firms' social capital in a Southeast Asian country

This study empirically examines the social capital that facilitates the flow of export knowledge, thereby supporting the entrepreneurial stance of small export firms. By applying the VRIO (value, rarity, inimitability and organisation of firm resources) framework to the resource-based view (RBV) of the firm, this study suggests that superior performance is a function of resources that are valuable, rare, inimitable and sufficiently organised to develop and sustain the firm's competitive advantage. This study argues that small, resource-constrained export firms in a developing economy are able to adopt entrepreneurial tactics and reap positive rates of return by exploiting their relational capital to acquire export knowledge. A survey of 175 small export firms in the Philippines was conducted, and the data were analysed using structural equation modelling. The results suggest positive relationships between the firm's social capital and export knowledge. Export knowledge is associated with entrepreneurial orientation, which then correlates with export performance.

Benchmarking occupational health and safety performance of Australian construction companies.

It is mandatory for Australian construction companies to provide a safe working environment for their workers and sub-contractors. Consequently, occupational health and safety (OHS) is a major issue for construction firms mainly due to the fear of prosecution. The recent introduction of Zero Tolerance by the Victorian government WorkCover Authority provided even higher OHS safety standards for the construction industry. This has placed a increased burden on construction companies especially small firms that are not in a position of financial strength.

The size of the companies has been found to be a major contributing factor to the OHS performance of construction contractors. This research is based on benchmarking study of 44 construction companies in Victoria, Australia. The results show that the major factors influencing safety performance were; company size, and management commitment to OHS.

The economic benefits of reducing physical inactivity : an Australian example

Background: Physical inactivity has major impacts on health and productivity. Our aim was to estimate the health and economic benefits of reducing the prevalence of physical inactivity in the 2008 Australian adult population. The economic benefits were estimated as ‘opportunity cost savings’, which represent resources utilized in the treatment of preventable disease that are potentially available for re-direction to another purpose from fewer incident cases of disease occurring in communities.
Methods: Simulation models were developed to show the effect of a 10% feasible, reduction target for physical inactivity from current Australian levels (70%). Lifetime cohort health benefits were estimated as fewer incident cases of inactivity-related diseases; deaths; and Disability Adjusted Life Years (DALYs) by age and sex. Opportunity costs were estimated as health sector cost impacts, as well as paid and unpaid production gains and leisure impacts from fewer disease events associated with reduced physical inactivity. Workforce production gains were estimated by comparing surveyed participation and absenteeism rates of physically active and inactive adults, and valued using the friction cost approach. The impact of an improvement in health status on unpaid household production and leisure time were modeled from time use survey data, as applied to the exposed and non-exposed population subgroups and valued by suitable proxy. Potential costs associated with interventions to increase physical activity were not included. Multivariable uncertainty analyses and univariate sensitivity analyses were undertaken to provide information on the strength of the conclusions.
Results: A 10% reduction in physical inactivity would result in 6,000 fewer incident cases of disease, 2,000 fewer deaths, 25,000 fewer DALYs and provide gains in working days (114,000), days of home-based production (180,000) while conferring a AUD96 million reduction in health sector costs. Lifetime potential opportunity cost savings in workforce production (AUD12 million), home-based production (AUD71 million) and leisure-based production (AUD79 million) was estimated (total AUD162 million 95% uncertainty interval AUD136 million, AUD196 million).
Conclusions: Opportunity cost savings and health benefits conservatively estimated from a reduction in population-level physical inactivity may be substantial. The largest savings will benefit individuals in the form of unpaid production and leisure gains, followed by the health sector, business and government.

Spatial ecology of sooty owls in south-eastern Australian coastal forests : implications for forest management and reserve design

We investigated the home-range size and habitat use of eight Sooty Owls (Tyto tenebricosa tenebricosa) in coastal forests in East Gippsland, Victoria, Australia, between November 2006 and January 2008. The size of home-ranges varied widely; based on 95% adaptive kernel estimates, the average size of home-ranges of males was 3025ha (±1194s.d., n=3), whereas that of females was 994ha (±654s.d., n=5). Sooty Owls utilised a broad range of ecological vegetation classes and topographical features for roosting and foraging at a greater scale than previously assumed. There was minimal selection for habitat types based on floristic composition, primarily only avoiding heathlands (for foraging and roosting) and selecting particular dense foliage (rainforest and riparian scrub) for foliage roosting. Two Owls maintained home-ranges close to logged areas, with logging regrowth (<45 years old) being strongly avoided by both individuals. We recommend that the size of individual reserves for Sooty Owls in commercial forests should be increased to more closely resemble the core spatial resource requirements needed by a pair. Reserves should be largest where they feed predominantly on hollow-dependent prey. Most importantly, rather than conservation measures just focussing on the spatial requirements of Sooty Owls, efforts should be directed towards retaining high densities of crucial resources, such as hollow-bearing trees and mammalian prey species throughout the landscape.

Does the change of accounting regulation on employee share options give rise to greater scope for earnings management?

Purpose – The purpose of this paper is to address the concern about the impact of accounting regulatory change pertaining to employee share options (ESOs) on earnings management. Following Australia’s adoption of International Financial Reporting Standards (IFRS) in 2005, companies are required to recognise the fair value of ESOs as expenses. Due to inherent imprecision in the estimate of ESO’s fair value, the regulatory change from disclosure to recognition was widely claimed to potentially give rise to an alternative mechanism to manage earnings. This study provides empirical evidence on whether the regulatory change leads to earnings management problems.

Design/methodology/approach – This study uses the regulatory change in accounting for ESOs to provide a direct test of earnings management between disclosed versus recognised regimes for the same sample of firms. The sample consists of Australian firms from S&P/ASX300 for the period from 2003 to 2006.

Findings – The results show that, although the accounting regulatory change from disclosure to recognition may provide an alternative earnings management vehicle, there is no evidence of this occurring. There could be several reasons for this finding. First, the statistical tests lack power. Second, there are stricter audit tests on recognised amounts than on disclosed amounts. Third, given the concern of excessive pay and the close scrutiny of compensation, managers may have already understated ESO values in the disclosure regime. Finally, managers have limited time and resources and the effort involved in the adoption of IFRS in 2005 could have restricted the time available to manage earnings via the ESO reporting channel.

Originality/value – This study adds to the limited research on whether a change in accounting regulation for employee share options from disclosure to recognition gives rise to greater scope for earnings management. One reason for the lack of empirical evidence in the research is due to the problem of designing a test. Bernard and Schipper suggest that within-firm studies have limitations for comparing the effects of recognition versus disclosure when the change is driven by an estimate becoming more reliable. A cross-sectional study is also problematic due to self-selection bias if firms can choose between disclosure versus recognition. This study circumvents potential design problems raised by Bernard and Schipper by setting a test using regulatory change which allows the test to be compared directly using the same company.