Determining benefits from B2B e-commerce : a strategic approach

A request from a powerful customer to exchange information electronically is an important external stimulus to the business strategy of a supplier. Prior research indicates that sub-optimal benefits, if any, are the typical result of such a stimulus. In this research, B2B ecommerce alignment between business strategy and IT strategy is proposed as a determinant of enhanced business benefits from electronic information exchange. A multiple case study approach in the Australian automotive industry is used to examine this proposition. As more electronic information is exchanged using a range of electronic modes, thus creating complex interorganizational systems, this research provides insights for suppliers about how to achieve greater benefits from B2B e-commerce.Una petición proveniente de un cliente poderoso para intercambiar información electrónicamente es un estímulo externo importante para la estrategia de negocios de un proveedor. Una investigación previa indica que los beneficios óptimos, si se producen, son el resultado de un estímulo así. En esta investigación, la alineación de comercio online B2B entre estrategias de negocios y estrategias de IT fueron propuestas como determinantes para obtener beneficios de intercambios de información electrónica. Un estudio de múltiples casos en la industria automotivacional australiana se usa para estudiar esta proposición. Conforme más información electrónica se intercambia usando un rango de métodos electrónicos, se crean complejos interorganismos, esta investigación proporciona pistas para cómo los proveedores pueden alcanzar mejores beneficios del comercio electrónico B2B

Corporate boards and performance pricing in private debt contracts

This paper investigates the effects of corporate governance on the use of performance pricing in debt contracts on a sample of newly syndicated loans in the U.S. private debt market. While cross-sectional results provide no evidence for the predicted relation between corporate governance quality and the likelihood of using performance pricing in debt contracts, there is evidence for the predicted positive relation between corporate governance quality and the use of interest-increasing performance pricing provisions. Evidence also provides support for the predicted negative relation between corporate governance quality and the use of financial ratio as the measure of performance underlying the provisions. Overall, empirical evidence supports the hypothesis that debt-holders perceive aspects of corporate governance to be beneficial and factor them in their contracting decisions

The role of trust, relationships and professional ethics in the supply of external business advice by accountants to SMEs

The accounting profession has actively adopted a broader service focus which includes business advice, but the scant extant research in the SME environment identifies only ex-ante demand determinants. Using in-depth interviews with SME owner-managers and external accountants, this study confirms the intervening role of trust, relationships, and professional ethics in the enabling of the provision of business advice. All SMEs purchase business advice, but not all use their external accountant. While all accountants interviewed perceived they have the expertise to provide business advice, not all SMEs agreed, suggestive of an expectation gap. However, when an SME does purchase business advice from their accountant, they view them as a business expert, a �trusted partner�, and a confidante who has empathy and provides a personal relationship to the owner-manager. Accountants do not aggressively market their business expertise, instead relying primarily on relationships formed while providing compliance work, �milestone events� or from SME networks or forums. An implication is the need for debate whether accountants should overtly market their non-compliance services

Delineating publicly listed family and nonfamily controlled firms: an approach for capital market research in Australia

Recent capital market research evidence suggests that a large proportion of public companies worldwide are characterized by controlling stockholders who are more often families, usually the founder(s) or their descendants. There has been considerable debate on whether "family" firms can indeed be accurately delineated from nonfamily firms given the diversity and abundance of family business definitions in the literature. This paper provides a robust definition of family business for the purposes of capital market research. Using an accounting-based definition of family business, the paper outlines a four-step procedure that provides validation for identifying family controlled companies listed on the Australian Stock Exchange. A significant feature of the research methodology was reliance on data collected from the Australian Securities and Investments Commission. Having access to the corporate regulator's restricted data enabled the researchers to establish important links between directors and their private related entities

Do family firms matter in IPO markets? Initial returns performance of family and non-family firms: a critical perspective: Australian evidence

This study examines the initial price performance of family and non-family controlled IPO firms listed on the Australian Securities Exchange (ASX) between 1988 and 1999. Ownership and control are significant factors that influence managerial incentives, whereas the dynamics underlying family relationships reduce agency costs, improve efficiency and positively impact on firm performance. The study finds evidence of lower (15.54%) initial underpricing on the first day of trading for family firms compared with non-family IPOs (36.12%) after adjusting for industry effects. The results also show a positive and significant association between firm value and fractional ownership for both family and non-family firms, which indicates that family and non-family IPO firms use fractional ownership to signal the value of the firm. These findings provide empirical support for signalling models articulated in the literature. Implications of these differences will allow market participants to make more informed investment choices. For example, investors seeking higher immediate returns might choose to invest in non-family firms rather than in family controlled firms

Initial returns performance: family and non-family firms: Australian evidence

This study examines the initial price performance of family and non-family controlled IPO firms listed on the Australian Stock Exchange (ASX) between 1988 and 1999. Ownership and control are significant factors that influence managerial incentives, whereas the dynamics underlying family relationships reduce agency costs and improve efficiency, thus positively impacting on firm performance. The study finds evidence of lower (15.54%) initial underpricing on the first day of trading for family firms compared with non-family IPOs (36.12%) after adjusting for industry effects. The results also show a positive and significant association between firm value and fractional ownership for both family and non-family firms, which indicates that family and non-family IPO firms use fractional ownership to signal the value of the firm. These findings provide empirical support for signalling models articulated in the literature. Implications of these differences will allow market participants to make more informed investment choices. For example, investors seeking higher immediate returns might choose to invest in non-family firms rather than in family controlled firms

Do family firms matter in IPO markets? Initial returns performance of family and non-family firms – a critical perspective: Australian evidence

This study examines the initial price performance of family and non-family controlled IPO firms listed on the Australian Securities Exchange (ASX) between 1988 and 1999. Ownership and control are significant factors that influence managerial incentives, whereas the dynamics underlying family relationships reduce agency costs, improve efficiency and positively impact on firm performance. The study finds evidence of lower (15.54%) initial underpricing on the first day of trading for family firms compared with non-family IPOs (36.12%) after adjusting for industry effects. The results also show a positive and significant association between firm value and fractional ownership for both family and non-family firms, which indicates that family and non-family IPO firms use fractional ownership to signal the value of the firm. These findings provide empirical support for signalling models articulated in the literature. Implications of these differences will allow market participants to make more informed investment choices. For example, investors seeking higher immediate returns might choose to invest in non-family firms rather than in family controlled firms.family firms; initial public offerings; IPO; initial returns; agency costs; signalling hypothesis; critical accounting; initial price performance; Australian Securities Exchange; ASX; Australia; firm value; underpricing; ownership; control; family relationships.

Strategic Orientation and Innovation Performance Between Family and Non-Family Firms

A key concern in the family business literature is whether family firms differ from professionally managed firms. Some studies have found that there are no significant differences, whereas others have found that family firms differ from non-family firms in a number of key areas such as strategic posture. As such, this study examines the innovation performance between family and non-family enterprises, and expands our understanding of family firms by examining innovation in relation to strategy, organizational structure, and environmental hostility. Participants involve a random stratified sample of 2,000 small and medium size family and non-family owned businesses in manufacturing and service industry sectors in Australia. Using structural equation modeling (SEM), our findings reveal significant differences between family and non-family owned businesses on process innovation and strategic orientation. Notably, SEM estimates indicate that family firms are less innovative, emphasize industry leadership less, but have a greater prospecting orientation than non-family firms. SEM results demonstrate good fit for the hypothesized model ( 2 = 22.86, df = 6, p < .001; GFI = .969, AGFI= .893), and provide support to the hypothesized relationships between strategic orientation and innovation performance, and between strategic orientation and organizational structure. Findings from this study demonstrate that family and non-family owned firms not only differ in their innovation performance, but they also have different strategic orientations, which provide some support to findings that family businesses put less emphasis on industry leadership. Given that new product and service development is generally considered important for understanding a firm's entrepreneurial activities, this study assists in increasing our understanding of firm-level entrepreneurship and innovation

Achieving Strategic Benefits from B2B eCommerce: A Multiple Case Study of the Australian Automobile Industry

A request from a powerful customer to use B2B e-commerce is a significant external stimulus for a supplier. Indications from extant research that considers the determinants of EDI adoption are that when customer power is exercised, supplier benefits from B2B e-commerce are typically diminished in the short term. However, with more information becoming available to suppliers using a wider range of electronic modes, suppliers need better advice about how to achieve inter-organizational strategic alignment and gain benefits more quickly. A model of strategic alignment is proposed and tested using multiple case studies in the Australian automotive industry. 1