The effects of the motor vehicle industry on employment and research innovation in Australia

2016 ◽  
Vol 37 (4) ◽  
pp. 684-708 ◽  
Author(s):  
Abbas Valadkhani ◽  
Russell Smyth

Purpose – The purpose of this paper is to examine the likely economy-wide impacts of the complete shutdown of the motor vehicle industry on output and employment in Australia using the latest input-output (IO) table (2009-2010). Design/methodology/approach – Both supply- and demand-driven IO models are employed to determine the extent, and pattern, of the resulting output and job losses in upstream and downstream industries. An analysis of the first-order field of influence is also conducted to observe how output multipliers in other sectors respond to changes in the self-use-input-requirement of the professional, scientific and technical services (PSTS) industry. Findings – The PSTS industry (with a significant research and development (R & D) component and the highest forward linkage index) would be hardest hit with the collapse of the motor vehicle industry. Research limitations/implications – This paper identifies a number of industries that are more likely to be heavily influenced by the resulting lack of R & D in the PSTS industry in the near future. Unless more funding is allocated to other research and technology-intensive industries, the extinction of the motor vehicle industry, coupled with the recent budgetary cuts for strategic organisations such as the Commonwealth Scientific and Industrial Research Organisation, can reduce the positive spillover effects of R & D activities on the Australian economy. Originality/value – This is the first study to examine the effects of the shutdown of the motor vehicle industry on employment in Australia. The results also have broader implications for other developed countries that have declining motor vehicle industries. The findings suggest that the global decline in the motor vehicle industry can adversely affect investment in R & D in upstream and downstream industries. More generally, the results suggest that the shift in motor vehicle production to developing countries, will contribute to increased R & D intensity in them at the expense of developed countries.

2019 ◽  
Vol 119 (3) ◽  
pp. 454-472 ◽  
Author(s):  
Yong-Ki Min ◽  
Sang-Gun Lee ◽  
Yaichi Aoshima

Purpose Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are pushing nation-wide innovation strategies. Similarly, China is pursuing the Made in China 2025, and Korea announced the Manufacturing Industry Innovation 3.0 strategy. However, few researchers have identified the industrial structure that establishes the foundation of the 4th Industrial Revolution or have derived strengths and weaknesses to provide implications on policy formulation through quantitative comparison with developed countries. Therefore, the purpose of this paper is to analyze the spillover effect of the information and communication technology (ICT) industry (the foundation of the 4th Industrial Revolution) and machinery·equipment industry (the foundation of smart manufacturing through convergence with ICT industry). Design/methodology/approach This study examines the industrial spillover effects of the ICT industry and machinery·equipment industry in the USA, Germany, Japan, China and Korea by using the World Input–Output Table from 2000 to 2014. Findings The results showed that backward linkage effect of the ICT Industry are high in the order of Korea≑China>Japan>the USA≑Germany, and forward linkage effect of the ICT industry are high in the order of Japan ≑> the USA≑Korea ≑> China ≑> Germany. Backward linkage effects of the machinery·equipment industry are high in the order of China>Japan≑Korea>the USA>Germany, and forward linkage effects of the machinery·equipment industry are high in the order of China>Korea>Germany≑Japan≑the USA. Practical implications China and Korea encourage active government investment in ICT and machinery·equipment industries, especially the intentional convergence between ICT and machinery·equipment industries is expected be generate higher synergy. The “innovation in manufacturing” strategy in the USA that utilizes its strength in ICT services seems appropriate, whereas Germany needs to revitalize the ICT industry to strengthen its manufacturing industry. Japan’s strategy is to focus its ICT capabilities on robot sector. While the scope of innovation is limited, its synergy is worth expecting. Originality/value This study attempted to provide a theoretical approach to the determination of national policy strategies and provide practical implications for response to the impacts of the 4th Industrial Revolution, by comparing the inducement effects of ICT and machinery·equipment industries between major countries.


2016 ◽  
Vol 7 (4) ◽  
pp. 535-546
Author(s):  
Nkechi Srodah Owoo

Purpose Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for knowledge transfers and diffusion, the purpose of this paper is to examine the evidence for these spatial effects in non-farm enterprise performance in Uganda, across space and time. Design/methodology/approach The author uses data from the geo-referenced Uganda National Panel Survey from 2010 to 2012, and employs explicit spatial techniques in the analysis of rural non-farm enterprise performance. Spatial autocorrelation of firm performance are used as proxies for knowledge transfers and information flows among enterprises across space and over time. Findings The study finds evidence of spatial spillover effects across space and time in Uganda. This implies that, as existing studies of developed countries have found, social infrastructure and firm proximity contribute significantly to the performance of rural economies, through information exchange and knowledge transfers. Practical implications Given the communal nature of rural households in the African setting, knowledge exchange and transfers among neighbouring firms should be encouraged as studies have found they have strong effects on business performance. Additionally, business “leaders” could also be useful in disseminating useful new technologies and applications to neighbouring enterprises in order to boost performance and productivity. Social implications There should be better targeting of policy interventions to clusters of particularly needy enterprises. Originality/value To the best of the author’s knowledge, this is the first time that spatio-temporal effects of business performance have been explored. While spatial analyses of business performance have been carried out in developed countries, studies using explicit spatial techniques in the developing country setting have been conspicuously absent.


2014 ◽  
Vol 30 (1) ◽  
pp. 45-52
Author(s):  
Rafiq Hamed Hijazi

Purpose – The purpose of this paper is to explore the supply of and perceived demand for statisticians in the United Arab Emirates (UAE) over the past decade. Design/methodology/approach – An exploratory study is conducted to examine the institutional and individual supply of statisticians in the UAE in relation to the perceived demand for such services. Supply data for the study was derived from UAE University, the Statistical Training Center and the Statistical Training Institute on statistics graduates and trainees. Findings – It was found that the supply of statisticians and trainees from UAE universities and training bodies is falling short of meeting the actual needs of statisticians in UAE. As the demand continues for such services, concerted efforts are needed to identify and implement workable approaches to reduce the gap between supply and demand. This includes stronger collaboration between government agencies and academic institutions to create a genuine partnership utilizing the experience of developed countries in this field. Originality/value – This study is the first of its kind in the UAE aimed at exploring the arising need for statistical services in the UAE. Recommendations from the study are intended to guide educational policy makers in addressing identified shortages of skilled Emirati statisticians as main contributors in supporting the knowledge-driven economy vision of UAE government.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The authors wanted to find out if small businesses adopted strengths-based approaches and whether they were beneficial Design/methodology/approach The interviewees came from small businesses in Western Australia with between five and 19 employees in the motor vehicle industry where there are high-value products. There were 30 participants from 17 businesses, including owners, managers and employees, such as technicians, mechanics and tire fitters. Data was gathered using semi-structured face-to-face interviews of about 40 minutes. Findings The researchers found that the managers used an SBA to select employees during periods of temporary employment. But they did not use an SBA for employee selection during interviews, training or performance evaluations. Originality/value The authors said it was the first empirical study of the SBA in small businesses. It had practical lessons for businesses. First, the data suggested poor awareness of SBA by managers and many need practical guidance from small business advisors. Second, managers found it hard to assess strengths and relied on observations. Software tools could help. Finally, the characteristics of small businesses could help them adopt the new approach. These include lots of face-to-face interaction between managers and employees.


2019 ◽  
Vol 18 (2) ◽  
pp. 74-95
Author(s):  
Sharon Zhengyang Sun ◽  
Samuel MacIsaac ◽  
Buck C. Duclos ◽  
Meredith B. Lilly

Purpose The benefits of trade liberalization on upskilling and skill-based wage premiums for high-skilled workers have recently been questioned in policy circles, in part because of rising income inequality and populist movements in developed economies such as the USA. The purpose of this paper is to determine the effects of trade liberalization on the relative supply and demand for skills. Design/methodology/approach Through the systematic review of the literature on trade and skill acquisition, this paper isolates a total of 25 articles published over the past two decades. Findings Key findings demonstrate the importance of the relative development of the trading partner, with more developed countries experiencing higher upskilling, while less developed countries experience deskilling. Technology, geographic level of analysis, sector and gender were also found to be important influences on human capital acquisition associated with international trade. Originality/value Overall, the authors find support for the idea that trade with developing countries places pressure on low-skill jobs in developed countries but increases the demand for educated workers. The implications of shifts in skills for public policy-making and in terms of the skill premium on wages are discussed.


2018 ◽  
Vol 13 (1) ◽  
pp. 20-40 ◽  
Author(s):  
Anna Bykova ◽  
Felix Lopez-Iturriaga

Purpose The purpose of this paper is to examine the relationship between export activity and firm performance for a positive impact of foreign direct investments (FDIs). The authors also analyze two possible causes of the effect: technology transfer and financial support. The theoretical background is rooted in the resource-based approach taking into account multinational companies’ perspective and the specifics of emerging markets. Design/methodology/approach The authors propose testable hypotheses based on a review of the theory. To test the hypotheses, the authors build a sample of over 500 Russian public manufacturing firms covering the period from 2004 to 2014 and estimate regression models. Given concerns about endogeneity, the instrumental variable approach for panel data, using the GMM-estimator, is implemented. Findings Consistent with the view that FDIs generate spillover effects, the results support the positive impact of foreign ownership on the link between exports and firms’ performance. The results underline the importance of foreign ownership: shareholders from developed countries can provide benefits to exporting companies through transferring advanced technologies and loosening financial constraints by lowering interest and raising availability of bank loans. Originality/value The authors provide new insights on the relationship between exports and firm performance. Given our focus on Russia, a market with high potential to draw foreign investments, the research sheds some light on how emerging country firms can benefit from having foreign shareholders with paying attention to geographical distribution of such investments. Specifically, through the overcoming of technological barriers and loosening of financial constraints, the authors show empirically that foreign capital can make up for weak local institutional infrastructure and enhance the company’s returns from internationalization.


2018 ◽  
Vol 29 (4) ◽  
pp. 1171-1195 ◽  
Author(s):  
Jan Hendrik Havenga ◽  
Zane Paul Simpson

Purpose The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy. Design/methodology/approach Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows. Findings South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs. Research limitations/implications Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies. Originality/value A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.


2019 ◽  
Vol 45 (9) ◽  
pp. 1183-1198
Author(s):  
Gaurav S. Chauhan ◽  
Pradip Banerjee

Purpose Recent papers on target capital structure show that debt ratio seems to vary widely in space and time, implying that the functional specifications of target debt ratios are of little empirical use. Further, target behavior cannot be adjudged correctly using debt ratios, as they could revert due to mechanical reasons. The purpose of this paper is to develop an alternative testing strategy to test the target capital structure. Design/methodology/approach The authors make use of a major “shock” to the debt ratios as an event and think of a subsequent reversion as a movement toward a mean or target debt ratio. By doing this, the authors no longer need to identify target debt ratios as a function of firm-specific variables or any other rigid functional form. Findings Similar to the broad empirical evidence in developed economies, there is no perceptible and systematic mean reversion by Indian firms. However, unlike developed countries, proportionate usage of debt to finance firms’ marginal financing deficits is extensive; equity is used rather sparingly. Research limitations/implications The trade-off theory could be convincingly refuted at least for the emerging market of India. The paper here stimulated further research on finding reasons for specific financing behavior of emerging market firms. Practical implications The results show that the firms’ financing choices are not only depending on their own firm’s specific variables but also on the financial markets in which they operate. Originality/value This study attempts to assess mean reversion in debt ratios in a unique but reassuring manner. The results are confirmed by extensive calibration of the testing strategy using simulated data sets.


Author(s):  
Aswini Yadlapalli ◽  
Shams Rahman ◽  
Helen Rogers

Purpose The purpose of this paper is to identify and prioritise social responsible mechanisms in apparel supply chains to extend social responsibility from large retailers in developed countries to producers in developing nations. Design/methodology/approach A framework that consists of supplier qualification and supplier relational mechanisms as two socially responsible mechanisms, with five factors and 18 dimensions is proposed. To prioritise the dimensions, analytic hierarchy process is employed by using a case study methodology of a major Australian retailer sourcing from Bangladesh manufacturers. Findings Results indicate that at the mechanism level, both retailer and manufacturers perceive qualification of manufacturer as by far the most critical element compared to the relational mechanism. However, substantial differences exist at the factor level; namely, that the social factor is critical for the retailer, whereas the economic factor is critical for the manufacturer. Within the relational mechanism, evaluation helps retailers to enforce social responsibility, while manufacturers believe collaboration helps. Research limitations/implications The major limitation of this study is the generalisation of the findings. The results obtained by focusing on a particular context in the Australian retail sector importing from Bangladesh, may not be applicable to other nations. Practical implications By highlighting the difference of opinion, this study assists managers in developing guidelines to better understand the socially responsible mechanisms in the retailer-manufacturer dyadic relationship and to propose strategies to address the differences. Originality/value This study advances the literature on inter-organisational relationship to retailer-manufacturer dyad for the implementation of social responsibility by including supplier qualification along with supplier relational mechanism.


2019 ◽  
Vol 31 (5) ◽  
pp. 740-757 ◽  
Author(s):  
Syed Ali Raza Shah ◽  
Khairur Rijal Jamaludin ◽  
Hayati Habibah Abdul Talib ◽  
Sha’ri Mohd Yusof

Purpose The purpose of this paper is to identify the critical success factors (CSFs) of integrated quality environmental management (IQEM) and analyze their impact on operational performance (OP) and environmental performance (EP) in food processing Small and medium-sized enterprises (SMEs) in Pakistan. Design/methodology/approach The study is based on collecting data using a survey questionnaire through snowball sampling technique. A total of 302 food processing SMEs operating in Punjab, Pakistan, responded to the survey. SPSS version-23 and SmartPLS-3 were used for data analysis. Findings The literature review identified leadership (LS), employee management (EM), strategic planning (SP), information management (IM), process management (PM), supplier management (SM) and customer focus (CF) as CSFs of IQEM. The results of this study found a significant relationship of all identified CSFs with operational performance in food processing SMEs whereas EM, IM, PM and SM were insignificant with the EP in the food processing SMEs. Research limitations/implications Although this study has collected data from one province, the Punjab province, it still relevant in identifying the CSFs for IQEM implementation within food processing SMEs to improve performance. Originality/value Despite the wide spread of integrated systems practices in the developed countries, little attention has been placed to implement and assess the IQEM initiatives by organizations in the developing countries. Thus, this study identified CSFs of IQEM based on empirical studies and analyzed their impact on OP and EP of food processing SMEs.


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