Total factor productivity growth and convergence in the petroleum industry : empirical analysis testing for convexity

While economic theory acknowledges that some features of technology (e.g., indivisibilities, economies of scale and specialization) can fundamentally violate the traditional convexity assumption, almost all empirical studies accept the convexity property on faith. In this contribution, we apply two alternative flexible production technologies to measure total factor productivity growth and test the significance of the convexity axiom using a nonparametric test of closeness between unknown distributions. Based on unique field level data on the petroleum industry, the empirical results reveal significant differences, indicating that this production technology is most likely non-convex. Furthermore, we also show the impact of convexity on answers to traditional convergence questions in the productivity growth literature.

Changes in environmentally sensitive productivity and technological modernization in China's iron and steel industry in the 1990s

Technological modernization is widely believed to contribute positively both to economic development and to environmental and resource conservation, through improvements in productivity and strengthening of business competitiveness. However, this may not always be true, particularly in the short term, as it requires substantial investments and may impose financial burdens on firms undertaking such investments. This study empirically examines the effects of technological modernization in China's iron and steel industry in the 1990s on conventional economic productivity (CEP) and environmentally sensitive productivities (ESPs). We employ a directional distance function that can handle multiple inputs and outputs to compute relative production efficiencies. We apply these models to the data covering 27 iron and steel firms in China between 1990 and 1999-a period when the Chinese iron and steel industry modernized rapidly. We find that ESPs have continuously improved, even in the period when the CEP declined.

Regulatory reforms and productivity : an empirical analysis of the Japanese electricity industry

The Japanese electricity industry has experienced regulatory reforms since the mid-1990s. This article measures productivity in Japan's steam power-generation sector and examines the effect of reforms on the productivity of this industry over the period 1978-2003. We estimate the Luenberger productivity indicator, which is a generalization of the commonly used Malmquist productivity index, using a data envelopment analysis approach. Factors associated with productivity change are investigated through dynamic generalized method of moments (GMM) estimation of panel data. Our empirical analysis shows that the regulatory reforms have contributed to productivity growth in the steam power-generation sector in Japan.

Developments in mud filtration technology in the sugarcane industry

Dirt collected with sugarcane is processed and separated from the juice in the sugar factory by filtration equipment for return to the cane fields. New technologies over the past decade have enabled performance improvements to be obtained for this key unit operation. Filter mud product still contains a reasonable amount of sugar and the transportation of high moisture mud product has considerable cost. Australia’s traditional approach has been to use Rotary Vacuum Filters for processing and separating mud and other impurities from juice, but in recent years there has been interest in reducing sugar losses and transportation costs through utilisation of new technologies such as Horizontal Bed Filters, Vacuum Belt Press Filters, Membrane Press Filters and Centrifuges. Increasingly, these alternative equipment are being installed in new factories. This chapter describes the general principles of mud filtration theory and mud conditioning followed by a detailed description and review of the various filtration technologies and analysis of the relative merits associated with the equipment.

Best of breed IT strategy: an alternative to enterprise resource planning systems

Abstract - Enterprise Resource Planning (ERP) software has become the dominant strategic platform for supporting enterprise-wide business processes. However, single vendor ERP software systems have been criticised for not meeting specific organisation and industry requirements. An alternative approach ‘Best of Breed (BoB)’, integrates components of software from multiple standard package vendors, and in some cases custom components. The objective is to develop enterprise systems that are more closely aligned with the requirements of an organisation. Although this approach may not be common at present it is likely to grow in importance due to business needs and technology advances such as the componentisation of ERP software. A case study analysis of a BoB implementation at a global entertainment's company is used as a platform for the discussion of the issues associated with this strategy and a comparison is made with the single vendor ERP alternative. The analysis centres on the complexity of implementation, the differences in the levels of functionality and business fit and the maintenance requirements.

Web mediated market interactions and enterprise software

With increased consolidation and a few large vendors dominating the market, how can software vendors distinguish themselves in order to maintain profitability and gain market share? Increasingly customers are becoming more proactive in selecting a vendor and a product, drawing upon various publications, market surveys, mailing lists, and, of course, other users. In particular, though, a company's Web site is the obvious place to begin information gathering. In sum, it may seem that the days of the uninformed customer prepared to be "sold to" are potentially all but gone.

Reflections on issues of power in packaged software selection

The adoption of packaged software is becoming increasingly common in a variety of organizations and much of the packaged software literature presents this as a straightforward, linear process based on rationalistic evaluation. This paper applies the framework of power relations developed by Markus and Bjørn-­‐Anderson (1987) to a longitudinal study concerning the adoption of a customer relationship management package in a small organization. This is used to highlight both overt and covert power issues within the selection and procurement of the product and illustrate the interplay of power between senior management, IT managers, IT vendors and consultants, and end-­‐users. The paper contributes to the growing body of literature on packaged software and also to our understanding of how power is deeply embedded within the surrounding processes.

IT consultants, salesmanship and the challenges of packaged software selection in SMEs

Purpose – This paper seeks to analyse the process of packaged software selection in a small organization, focussing particularly on the role of IT consultants as intermediaries in the process. Design/methodology/approach – This is based upon a longitudinal, qualitative field study concerning the adoption of a customer relationship management package in an SME management consultancy. Findings – The authors illustrate how the process of “salesmanship”, an activity directed by the vendor/consultant and focussed on the interests of senior management, marginalises user needs and ultimately secures the procurement of the software package. Research limitations/implications – Despite the best intentions the authors lose something of the rich detail of the lived experience of technology in presenting the case study as a linear narrative. Specifically, the authors have been unable to do justice to the complexity of the multifarious ways in which individual perceptions of the project were influenced and shaped by the opinions of others. Practical implications – Practitioners, particularly those from within SMEs, should be made aware of the ways in which external parties may have a vested interest in steering projects in a particular direction, which may not necessarily align with their own interests. Originality/value – This study highlights in detail the role of consultants and vendors in software selection processes, an area which has received minimal attention to date. Prior work in this area emphasises the necessary conditions for, and positive outcomes of, appointing external parties in an SME context, with only limited attention being paid to the potential problems such engagements may bring.

The social shaping of packaged software selection

As organisations increasingly engage in the selection, purchase, and adoption of packaged software products, how these activities are carried out in practice becomes increasingly relevant for researchers and practitioners. Our focus in this paper is to propose a framework for understanding the packaged software selection process. The functionalist literature on this area of study suggests a number of generic recommendations, which are based on rational assumptions about the process and view the decision making that takes place as producing the “best technology solution.’” To explore this, we conducted a longitudinal, in-depth study of packaged software selection in a small organisation. For interpretation of the case, we draw upon the Social Construction of Technology, a theoretical framework arguing that technology is socially constituted and regarding the process of development as contradictory and uncertain. We offer a number of contributions. First, we further our understanding of packaged software selection with the critique that we offer of the functionalist literature, drawing insights from the emerging critical/constructivist literature and expanding our domain of interest to encompass the wider environment. Second, we weave this together with our experiences in the field, drawing on social constructivism for theoretical support, to develop a framework of packaged software selection that shows how various actors shape the process.

CRM packaged software : a study of organisational experiences

Customer Relationship Management (CRM) packaged software has become a key contributor to attempts at aligning business and IT strategies in recent years. Throughout the 1990s there was, in many organisations strategies, a shift from the need to manage transactions and toward relationship management. Where Enterprise Resource Planning packages dominated the management of transactions era, CRM packages lead in regard to relationships. At present, balanced views of CRM packages are scantly presented instead relying on vendor rhetoric. This paper uses case study research to analyse some of the issues associated with CRM packages. These issues include the limitations of CRM packages, the need for a relationship orientation and the problems of a dominant management perspective of CRM. It is suggested that these issues could be more readily accommodated by organisational detachment from beliefs in IT as utopia, consideration of prior IS theory and practice and a more informed approach to CRM package selection.

Potential pitfalls in packaged software adoption

The common reasons for those in organizations adopting large config- urable packaged software products are compelling. Problems with the existing software situation, the supposed predictability and perceived business benefits of packaged software, and various social influences, can lead to packages being preferred to custom approaches. Yet, for every reason, there is a potential associated problem that must be understood before an informed adoption decision can be made...

ERP and best of breed : a comparative analysis

Enterprise Resource Planning (ERP) software is the dominant strategic platform for supporting enterprise-wide business processes. However, it has been criticised for being inflexible and not meeting specific organisation and industry requirements. An alternative, Best of Breed (BoB), integrates components of standard package and/or custom software. The objective is to develop enterprise systems that are more closely aligned with the business processes of an organisation. A case study of a BoB implementation facilitates a comparative analysis of the issues associated with this strategy and the single vendor ERP alternative. The paper illustrates the differences in complexity of implementation, levels of functionality, business process alignment potential and associated maintenance.

Achieving enterprise integration through software customization : part I-evidence from the field

Achieving business and IT integration is strategic goal for many organisations – it has almost become the ‘Holy Grail’ of organisational success. In this environment Enterprise Resource Planning (ERP) packages have become the defacto option for addressing this issue. Integration has come to mean adopting ERP, through configuration and without customization, but this all or nothing approach has proved difficult for many organisations. In part 1 of a 2 part update we provide evidence from the field that suggests that whilst costly, if managed appropriately, customization can have value in aiding organisational integration efforts. In part 2, we discuss in more detail the benefits and pitfalls involved in enacting a non-standard based integration strategy.

Achieving enterprise integration through software customization : part II-enacting the strategy

In part 1 of this update, we put forward the argument that integration in ERP based environments can be achieved in ways other than adopting a software configuration only approach. We drew on evidence from two large ERP implementations to show how, despite the cost implications, some customization, if carefully managed, could prove helpful. In this, the final part of the update, we discuss the benefits, and potential pitfalls, involved in enacting a non-standard based integration strategy. This requires attention to a) broadening the integration definition; b) bringing legacy practices forward and c) developing a customization based integration strategy.

Digital Modeling, Integrated Project Delivery and Industry Transformation: An Australian Case Study

This research is focused on realizing productivity benefits for the delivery of transport infrastructure in the Australian construction industry through the use of building information modeling (BIM), virtual design and construction (VDC) and integrated project delivery (IPD). Specific objectives include: (I) building an understanding of the institutional environment, business systems and support mechanisms (e.g., training and skilling) which impact on the uptake of BIM/VDC; (II) gathering data to undertake a cross-country analysis of these environments; and (III) providing strategic and practical outcomes to guide the uptake of such processes in Australia. Activities which will inform this research include a review of academic literature and industry documentation, semi-formal interviews in Australia and Sweden, and a cross-country comparative analysis to determine factors affecting uptake and associated productivity improvements. These activities will seek to highlight the gaps between current-practice and best-practice which are impacting on widespread adoption of BIM/VDC and IPD. Early findings will be discussed with intended outcomes of this research being used to: inform a national public procurement strategy; provide guidelines for new contractual frameworks; and contribute to closing skill gaps. Keywords: building information modeling (BIM); virtual design and construction (VDC); integrated project delivery (IPD); transport infrastructure; Australia; procurement