Globalisation and manufacturing strategy in the TCF industry

Purpose – The textiles, clothing, and footwear (TCF) industry has struggled in Australia since the government commenced dismantling tariffs. By sourcing from Asia, middlemen undercut established suppliers, and retail chains set benchmark low prices with their imported “house” labels. The policy-makers predicted that local producers would become more efficient, and export to make up for lost sales, but the media paints a picture of rising imports, retrenchments, and factory closures. The research objective was to discover what strategies the survivors (actually) employ in adapting to the pressures of globalisation.

Design/methodology/approach – More than 30 companies were involved in the study, ranging from small family businesses to subsidiaries of big multinationals. Each case study was based on an interview with a senior executive, normally followed by a plant tour. This methodology suits a fresh topic, as it avoids preconceptions and imposes no bounds.

Findings – Results show that the policy change was based on “pie in the sky” forecasts. Increasingly, TCF production is transferred to cheap offshore locations, generally via subcontracting plus the “badging” of foreign designs. To survive, local factories should focus on quality and customer service, preferably in niche markets (like uniforms), or for specific customer groups, and develop technologically advanced products. A move down the supply chain into retailing can also assist. Large multinational corporations that engage in foreign direct investment dominate the management literature.

Originality/value – This paper presents a different perspective, neglected in international operations management, whereby domestically oriented businesses attempt to defend themselves against the adverse consequences of globalisation.

Securing institutional legitimacy or organizational effectiveness?

Purpose: The purpose of this paper is to consider the impact of a major initiative (the National Competition Policy) and pieces of legislation (the Local Government Act and the Local Government Finance Standards) on the internal practices of a large Australian local authority.

Design/methodology/approach: A theoretical framework is developed using new public management (NPM) and neo-institutional theory literatures to explain the findings. A case study approach was applied to collect the data for the research.

Findings: The findings reveal that the National Competition Policy 1993, the Local Government Act 1993 and the Local Government Finance Standards 1994 mainly have brought about significant changes to the organisation's internal management control processes, such as financial reporting, budgeting and performance appraisal. The changes brought in appeared to be coincidentally similar to NPM ideals. Furthermore, senior managers (such as the chief executive and divisional heads) played a major role in implementing new accounting technologies (activity-based costing and the balanced scorecard type performance measurement system).

Research limitations/implications: Future research on public sector financial management from the outset of organisational contexts could considerably further the stock of knowledge in this area, especially given the rapid changes occurring within the public sector throughout the world. Future research may wish to extend this study by assessing how external legitimating functions become internal reality, the perceptions of reality of the organisational members, and how these perceptions change over time.

Practical implications: The findings reported provide evidence to further our understanding of how the introduction of private sector styles of organisational practices into large areas of the public sector brought about significant changes in the demand for “new” financial management practices.

Originality/value: The findings reported on in this paper will open a new path of research that may increase our understanding about the factors that play a role in the design of management and accounting systems in a public sector context. Further, they will help policy makers and public sector managers in their day-to-day decision-making.

Analysis of the potential and problems of new institutional economics for third world development

Purpose – The aim of this paper is to provide a critical evaluation of the potential of new institutional economics (NIE) in third world development.

Design/methodology/approach – The paper reviews various theories under NIE from both conceptual and empirical perspectives. It then reviews the various definitions of institutions and show that institutions are essential to overcome problems of information and uncertainty.

Findings – The review finds that weak institutions can undermine development and hence governments in developing countries should strengthen their institutions to provide greater scope for efficient functioning of markets. Where the market does not work owing to high transactions costs, traditional institutions of collective action and group decision making can work and hence need to be recognised.

Research limitations/implications – The major implications of the paper is that in developing countries, a clear understanding of various institutions such as user groups, inter-linked credit markets, rotational irrigation etc. is needed before they are replaced or modified by other institutions. The main limitations of NIE are that there can be capture by elites of various institutional innovations in rural areas, and that it does not explicitly consider income distribution and uncertainty which are glossed over and hence remain areas for future research.

Originality/value – This paper critically reviews the various institutional environments that developing countries face in addressing development issues.

Marketing research performance and strategy

Purpose - To investigate whether strategic orientation affects the evaluation of specific market research projects in for-profit firms.
Design/methodology/approach - A small-scale follow-up survey was conducted, building on qualitative and quantitative research among a sample of the top-1,000 marketing managers in Australia. The study used an existing market research evaluation tool, the USER scale and items generated from the qualitative research, to investigate the firm's most recent market research project.
Findings - Four market research performance factors were identified - market research as a knowledge enhancing (KE) function, the internal political use of market research, the misuse of market research and the generation of market understanding. The Miles and Snow strategy types were related to these factors, with Prospector types more likely to use market research rationally and less likely to use it for internal political purposes. Tactical projects were more likely to be misused than were those with a strategic orientation. Prospectors were far less likely and analysers far more likely to misuse tactical research projects. Prospectors were more often satisfied with the performance of their most recent market research. The Porter typology was less successful in predicting market research performance.
Research limitations/implications - The study was based on a small sample of market research projects in Australian for-profit firms. Future studies need to study these phenomena more intensively using ethnographic methods and more extensively using larger multi-country samples.
Practical implications - Market research suppliers should learn the nature of their client's strategic intent to improve their effectiveness. Defender firms should carefully monitor the use of market research, especially that of a tactical nature, which may be wasted or misused.
Originality/value - Contributes to an understanding of how strategic orientation relates to the ways market research information is used within the firm.

A framework for environmental management system adoption and maintenance : an Australian perspective

Purpose – The purpose of this paper is to present a framework for environmental management system (EMS) adoption which can be used by managers to enable them to achieve a faster, smoother, effective and sustainable EMS implementation. This is termed by the authors as “successful” EMS implementation.
Design/methodology/approach – The framework presented is based on an extensive field study conducted in Australia that included a questionnaire survey and in-depth interviews conducted with practitioners, the results of which have been reported in this and other journals.
Findings – The framework presented covers three distinct phases, namely development, certification and maintenance and continuous improvement. Preliminary assessment of this framework by a group of Australian experts that included four senior managers, one academic and one consultant suggests that this framework is a useful tool for implementing an effective EMS.
Practical implications – Each of the three phases of the framework provides a step-by-step approach and a sequential map towards a successful EMS implementation.
Originality/value – The framework has been developed from extensive fieldwork and has been validated by a group of “experts” which comprised of four industry practitioners, one management academic, and one EMS consultant. The framework provides a detailed understanding of the steps involved in the implementation, certification, and maintenance of EMS.

Integrated management system:the experiences of three Australian organisations

Purpose – Management systems and standards have become a key part of the organisation's lifeline and a prerequisite for survival in the twenty-first century. Systems for quality environmental and occupational health and safety (OHS) now form the three main pillars of the organisation, the fourth one being financial accounting. In light of the increasing pressure and demands from different stakeholders, it is becoming necessary for organisations to adopt the different systems/standards. However, to achieve the benefits from the implementation and subsequently maintenance of these systems it is only a practical and logical step that the existing management systems/standards be integrated into a single system.

Design/methodology/approach – This paper presents the experiences of three Australian-based organisations that have successfully undertaken the integration of their management systems/standards. Data for this paper were collected through in-depth interviews conducted with the managers responsible for quality, environment and OHS systems.

Findings – The interviews revealed a number of quantifiable and unquantifiable benefits experienced by the companies from operating one integrated system, such as saving of dollars, better utilisation of resources and improved communication across the organisation, to name a few. However, for the benefits to be realized it is essential that organisations are aware of the challenges and obstacles accompanying integration of systems/standards. If these challenges are not addressed early in the process they can delay the completion of the integration process.

Originality/value – Recommendations for other organisations contemplating integrating their management system include: obtaining commitment from the top management; having adequate resources to integrate the systems; having communication and training across the organisation in aspects of integration; and, last but not the least, having integrated audits. Implementation of these recommendations may vary from one organisation to another; however, it would result in lesser resistance for the organisations following them.

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.

Land use, water quality and ecological responses in Lake Colac – trends from Australia

Purpose - Recently, Colac Otway Shire in Australia released its management plan for Lake Colac, claiming over-enrichment of the lake with nutrients and degraded water quality. This paper aims to investigate these claims by establishing a correlation between key water and ecological indicators and land uses.

Design/methodology/approach - Examines the correlation between impairment and stressors in Lake Colac. This was achieved by identifying the likely sources of pollutants into Lake Colac; identifying any existing monitoring program; and characterizing the water and sediment inputs. The likely impacts of increased nutrients and sediment levels on indigenous flora and fauna were also examined. The use of meiofauna (very small benthic metazoan animals) was investigated as an indicator of degraded sites. Plankton diversity as a measure of water health was also assessed.

Findings - Water quality in Lake Colac was found to vary both temporally and spatially, and exhibited low attainment against acceptable trigger values/objectives. At current levels the lake can be classified as poorly degraded. Likely sources of pollution were identified to be related to land uses in the catchments. The biota of the lake, investigated at four study sites, yielded a sparse, benthic macrofaunal assemblage that was dominated by oligochaetes. In contrast, an abundant and taxonomically diverse meiofaunal assemblage was noted. Future meiofaunal analyses are likely to resolve suitable biotic indicator species of free-living nematodes in response to land use and waterway threats specified in the study. Originality value - This work will provide a better understanding of integrated environmental systems to enable development of best management practices, thus transforming the way the land and water are used in the future. Following the present work, other key water and ecological indicators (increased dispersion and dominance of biological species) at five additional sites were studied. Alternative management options for the effluent generated at Colac Sewage Treatment Plant and possible ecological effects of each option were also evaluated. More recently, a sediment characterization study was also carried out at sensitive sites representative of locations where build up of sediments and algae outbreaks are reported. This will enable classification of sediment and evaluation of dredging options.

E-commerce and graduate education: is educational quality taking a nose dive?

Purpose: Online education has been growing rapidly, but has not had the benefit of the extensive teaching pedagogy development of traditional face-to-face teaching. This paper aims to provide a review of the current literature and present the results of a survey, conducted to determine the effectiveness of a graduate online subject. Design/methodology/approach: The literature was reviewed to identify measures of success and quality in online education delivery. These measures were then considered in relation to their application in practice via a case study based around a survey conducted at Deakin University in Australia. Findings: A total of 16 relevant measures of teaching quality were identified in the literature. Most measures had elements of bias and some were more generally applicable to online learning. The case study suggested that the value of computer mediated learning in an online environment was limited and that a combination of print and computer mediated conferencing performed better in more of the identified quality matrices. Practice implications: Online learning does not save teaching resources if standards of quality are maintained. It can be used to provide a remote teaching facility, provided it is backed up by resources such as printed study guides. For the subject evaluated, online mediated learning did not the provide the same quality of education. Originality/value: Whilst some research has been conducted in this area, no substantive grounded theory has been applied to postgraduate or fee-paying online education regimes. As a result, case studies of such applications can be very helpful in the design of future teaching systems.

Aggregate planning for seasonal demand : reconciling theory with practice

Purpose: The paper reports on the ramifications for production planning when monthly sales exhibit predictable seasonal highs and lows. The literature first acknowledged and dealt with the (aggregate planning) problem 50 years ago. Nevertheless, there is neither evidence that industry has adopted any of the mathematical techniques that were subsequently developed, nor a convincing explanation as to why not. Hence this research sets out to discover the methods manufacturers use to cope with seasonal demand, and how germane the published algorithms really are.

Design/methodology/approach: Forty-two case studies were compiled by interviewing senior managers and then conducting plant tours. No prior assumptions were made and the list of questions covered the gamut of production planning.

Findings: The main finding is that manufacturers select a straightforward production strategy, right from the outset, so the fundamental cost-balancing format is not relevant. The majority pick a “chase” strategy, since most organizations subscribe to a “just in time” ethos. Whenever a different strategy is preferred the rationale springs from skilled labour considerations or binding facilities constraints. The chosen strategy serves as a road map for resources acquisitions, and the master production schedule is constructed directly. So, the complex issue of how to disaggregate an optimal aggregate plan never even arises. Managers do not seek perfect solutions, but strive to eliminate, or contain, the most significant marginal costs. The nature of the business determines the most appropriate tactics to employ.

Originality/value: These findings break the mould as far as orthodox aggregate planning is concerned and show why theory is at odds with practice, whilst reaffirming the importance of concepts such as “flexibility”, “integration”, and “just-in-time production”.

Social innovators or lagging behind: factors that influence managers' time use

Purpose – The broad aim of this paper is to investigate whether managers in Australia allocate their time differently than other occupational groups, and the impact gender and life situation (using marital status and presence or absence of dependent children as a proxy) has on time allocation.
Design/methodology/approach – To address these broad aims, data are drawn from the 1997 Australian Time Use Survey. This is a nationally representative survey that examines how people in different circumstances allocate time to different activities. Findings – The results of this study highlight three important issues. The first is that male and female managers display different patterns of time use. Male managers' time is dominated by paid employment activities, whereas female managers' time is spent predominantly on employment and domestic activities. The second is that life situation impacts on the time use of female managers, but not male managers. The third important find of this study is that managers' time use is different to other occupational groups. Practical implications – These findings have policy implications relating to work-life balance, career progression and changes in patterns of work. In terms of work-life issues, it reveals that male and female managers face a “time squeeze”, with some evidence of a “second-shift” for female managers. In addition, the findings provide insight into the work-life issues faced by male and female managers. Originality/value – The results of this inquiry provide insight into how different individuals spend their time – insight into “lifestyles”. However, in-depth qualitative studies are required to reveal why individuals allocate their time in this way and to understand the opportunities and constraints individuals face in time allocation.

Australians' organic food beliefs, demographics and values

Purpose – To examine consumers' beliefs about organic foods and their relationship with socio-demographics and self-transcendence (universal, benevolence) personal values.

Design/methodology/approach – A random questionnaire-based mail survey of 500 Australian (Victorian) adults (58 per cent response) was used. The questionnaire included items on organic food beliefs, the importance of self-transcendence values as guiding principles in life, and socio-demographics. Statistical analyses included cross-tabulations of organic food beliefs by socio-demographics and multiple regression analyses of positive organic food beliefs with personal value and socio-demographic items as the independent variables.

Findings – The majority of participants believed organic food to be healthier, tastier and better for the environment than conventional food. However, expense and lack of availability were strong barriers to the purchasing of organic foods. Generally, women were more positive about organic food than men (e.g. women were more likely to agree that organic food has more vitamins/minerals than conventional food). The personal value factor related to nature, environment and equality was the dominant predictor of positive organic food beliefs, followed by sex. These predictors accounted for 11 per cent of the variance.

Research limitations/implications – A survey response bias needs to be taken into account. However, the response rate was adequate for reporting and differences in age and education between participants and the Victorian population were taken into account in data presentation. Future understanding of consumers' use of organic foods will require the inclusion of a fairly extensive set of potential influences.

Practical implications – Communication appeals based on psychographics may be a more effective way to alter consumers' beliefs about organic foods than those based on demographic segmentation.

Originality/value – To the best of one's knowledge, this is the first study to examine the relationship between personal values, socio-demographics and organic food beliefs in a random population sample. This study is relevant to producers, processors and retailers of organic food and those involved with food and agricultural policy.

Food industry awareness of consumers` plant food beliefs

Abstract: Purpose – The aims of this study were to examine farmers' and food processors' alignment with consumers' views about plant foods and their intentions to produce plant foods. Design/methodology/approach – Data on plant food beliefs were collected from mail surveys of farmers, food processing businesses and random population samples of adults in Victoria, Australia. Findings – There were strong differences between consumers' beliefs and farmers' and food processors' perceptions of consumers' beliefs. For example, a higher proportion of farmers and processors believed that consumers would eat more plant foods if more convenience-oriented plant-based meals were available than consumers themselves agreed. Farmers appeared to be more aware of or aligned with consumers' beliefs than were processors. One- and two-thirds of farmers and processors respectively were planning to grow or process more plant foods, which bodes well for the availability of plant and plant-based foods. Research limitations/implications – Study limitations include the small food industry sample sizes and possible response bias, although analysis suggests the latter was low. Future research could survey a larger sample of food industry representatives, including those from other sectors (e.g. retailers). Practical implications – Education of consumers and industry groups on plant foods and better lines of communication from consumer to processor to farmer, are required. Originality/value – To the authors' knowledge, this is the first study to examine farmers' and food processors' awareness of consumers' beliefs about plant foods. This issue is important for those involved with the production and marketing of plant foods or with food, farming and health policy.

The gender composition of boards after an IPO

Purpose - The purpose of this paper is to empirically analyse the change in the gender composition of the boards of large Australian companies, after listing.
Design/methodology/approach - This study investigates the gender composition of the boards of large Australian companies at the time of the initial public offering (IPO) and subsequently as these companies mature into established public companies. It also investigates industry influences and organizational size influences on the board composition at the time of the IPO and subsequently.
Findings - No significant change is found in the proportion of male and female directors holding directorships at the time of the IPO and some five to eight years later when the company is recorded as a top 500 company (by market capitalization) on the Australian lists. This implies that the capital market is generally satisfied by the gender composition of boards from the time of the IPO.
Originality/value - This paper extends on previous work which provides evidence of a relatively low proportion of female directors on the boards of Australian initial public offerings.

A self-representation analysis of the effects of individualist-collectivist interactions within organizations in individualistic cultures

Purpose – Increasingly, organizations in the Asia-Pacific region are recognizing the importance of cross-cultural management to the sustainability of their competitive edge. Although the literature is replete with cross-cultural studies of individualism and collectivism, little information is available on the factors that foster effective individualist–collectivist interaction (ICI) within organizations. This paper attempts to provide a theoretical description of individualists and collectivists at the individual
level of analysis, which offers specific testable hypotheses about the effect of self-representation on prejudice between individualists and collectivists (ICs).

Design/methodology/approach – In this paper, a theoretical model is presented in which intergroup prejudices and interpersonal prejudices mediate the effects of ICI and bicultural orientation toward cross-cultural experiences and, in which, the dissimilarity openness of the climate
moderates the level and outcome of prejudices flowing from ICI.

Findings – The model depicts that the outcomes of ICI are mediated by the intergroup prejudices of collectivists and the interpersonal prejudices of individualists, which are moderated by the extent of diversity-oriented HRM policies and practices and individuals’ orientation to cross-cultural experiences. When workforces become culturally diverse, organizations should modify HRM practices to enable the full use of the range of skills and talents available from the diversity, and to ensure affective and behavioral costs are minimized. As globalization and international competition will continue to increase, organizations including those in the Asia-Pacific region, should seriously reevaluate their HRM policies to adapt and take advantage of an increasingly culturally diverse workforce.

Originality/value – The model provides a useful basis upon which organization researchers and practitioners can base their respective agendas.