Australian Manufacturing Industry Research Articles

Evaluation of a workplace suicide prevention program in the Australian manufacturing industry: protocol for a cluster-randomised trial of MATES in manufacturing

Males are at higher risk of death by suicide than females in Australia, and among men, blue-collar males are at higher risk compared to other working males. In response, MATES in Construction developed a workplace suicide prevention program for the construction sector in 2007 that has been widely implemented in Australia. In the current project, this program is being adapted and trialled in the manufacturing sector. The common aims of MATES programs are to improve suicide prevention literacy, help-seeking intentions, and helping behaviours. The program will be evaluated using a cluster randomised-controlled trial design with waitlist controls across up to 12 manufacturing worksites in Australia. We hypothesise that after 8 months of the MATES in Manufacturing program, there will be significantly greater improvements in help-seeking intentions (primary outcome) compared to waitlist controls. The project is led by Deakin University in collaboration with the University of Melbourne, and in partnership with MATES in Construction and a joint labour-management Steering Group.Trial registration: The trial was registered retrospectively with the Australian New Zealand Clinical Trials Registry on 25 January 2022 (ACTRN12622000122752).Protocol version: 2.0, November 2022.

Career degradation in Australian cities: globalization, precarity and adversity

ABSTRACT This paper explores the impact on urban labour markets of the closure of the Australian automotive manufacturing industry through a qualitative analysis of ex-automotive workers’ experiences of redundancy and precarious work. We locate the experiences of workers inside a multidimensional concept of precarity that can be both objectively measured and subjectively produced. These findings show the need for strong policies directed at boosting the economies of affected urban communities alongside labour market programmes able to provide secure work after large-scale plant closures. Through the voices of affected workers, we demonstrate the complex ways their lives have been affected.

Australian manufacturing industry: a 20-year scoping study on barriers, opportunities and trends for its strategic development

Abstract Paper aims This study aims at identifying the barriers, opportunities and trends for the strategic development of the Australian manufacturing industry. Originality As research on Australian manufacturing is prolific and sparse, our study helps to clarify whether and how important research findings on Australian manufacturing replicate. Research method For that, we conducted a scoping review on literature evidence published in the last twenty years. We systemically compiled the body of knowledge and proposed research directions in accordance with five global manufacturing megatrends. Main findings We identified eight barriers/challenges and eight opportunities according to manufacturing sectors and analyzed them based on their emphasis on these global megatrends. Literature emphasis has not been equally distributed over time, highlighting the need for further research. Implications for theory and practice We suggested three main directions for future studies; they were: (i) digital transformation of manufacturing; (ii) sustainable operations in end-to-end service-integrated manufacturing; and (iii) interrelation between socioeconomic characteristics and strategic critical success factors. Further, the body of knowledge’s systemic compilation has led to new conceptual and theoretical insights in light of global megatrends.

Investigating the Strategies for Supply Chain Agility and Competitiveness

Manuscript type: Research paper Research aims: This study explores the strategies that enable firms to establish supply chain agility and competitiveness in Australian manufacturing firms. Design/Methodology/Approach: Using a case study approach, interviews are conducted with eight Australian manufacturing firms. Underpinned by the dynamic capability perspective, data are then thematically analysed to derive the findings. Research findings: Agility strategies are based on collaborative efforts, requiring information sharing among firms in the supply chain and diversifying core competencies in a strategic manner to remain competitive. Theoretical contribution/Originality: This study shows how dynamic capabilities foster competitive advantage. It identifies both the strategic and operational agility which enable firms to respond to market changes and to remain competitive. Practitioner/Policy implication: The manufacturing industry in Australia is undergoing a transition where Australian manufacturers need to transform and be more agile by leveraging their competencies and supply chains collectively. Research limitation/implications: The results are based on a crosssectional study of firms identified from the Australian manufacturing industry. Keywords: Agility, Australian Manufacturing, Operations, Strategy, Supply Chains JEL Classification: I3, M14

Subject to qualification: Weakening links between job roles and qualifications in Australian manufacturing enterprise agreements

This article examines job classifications in enterprise agreements from the Australian manufacturing industry, focusing on the recognition of formal qualifications. It follows earlier research that found the strength and frequency of references to qualifications vary considerably between modern awards, with manufacturing industry awards having some of the strongest connections. A representative sample of 350 agreements (13.5% of the total) made under the Fair Work Act between 2010 and 2013 was analysed. Analysis revealed that linkages between formal qualifications and job classification structures are less common in enterprise agreements than in relevant modern awards. However, the overall effects of enterprise bargaining on recognition of employees' qualifications are complex. We find that, one way or another, the award classification structure continues to apply in 47.1% of enterprise agreements. Through logistic regression, we explore factors influencing the use of formal qualifications as part of job classifications, with a particular focus on whether this extends beyond the licensing requirements of tradespeople (Certificate III). Our finding that three factors – workplace size, award coverage and union coverage – significantly affect enterprise bargaining outcomes is likely to be generalisable beyond this study's focus on job classifications to many other important terms in enterprise agreements.

The closure of the Australian car manufacturing industry: redundancy, policy and community impacts

ABSTRACTThe Australian car manufacturing industry closed in the third quarter of 2017, bringing to an end 70 years of vehicle assembly as General Motors Holden, Ford and Toyota ceased large-scale production. This resulted in highly visible redundancies amongst the vehicle producers, and a more profound, but less noticeable, loss of employment within the supply chain. The likely impact on the affected communities will be profound, with northern Adelaide, the outer parts of Melbourne and the regional city of Geelong likely to bear witness to long-term worklessness for decades to come. This outcome, however, was not an inevitable consequence of market forces; instead, it was a product of the decisions of successive governments over more than 30 years, as well as the consequences of a global industry restructuring in the face of economic shock. This paper begins by situating the research within a new state spaces framework before sketching out the dynamics of the Australian car industry in the twentieth century, and moving on to consider the institutional and policy factors that contributed at the national level to change.

Exploring the characteristics of sustainable business practice in small and medium-sized enterprises: Experiences from the Australian manufacturing industry

Abstract With small and medium-sized enterprises (SMEs) being responsible for a significant proportion of global pollution, there are increasing calls for this type of businesses to engage in ‘sustainable business practice’. However it is still unclear what this term actually means in day to day operations. This study identifies key characteristics of sustainable business practice for SMEs through evaluating the experiences of senior decision makers from 13 companies engaged in lean and green practices in Queensland, Australia. Through a systematic literature review and an exploratory study, nine characteristics emanating from the three themes of environmental stewardship, process excellence, and sustainability oriented-culture were established. Furthermore, this study build on natural-resource-based view (NRBV) theory to present a ‘Natural Resources Based View Plus’ (‘NRBV+’) model that includes an additional strategy of ‘regenerative development’. These findings can immediately assist SMEs to evaluate their practices, and in doing so, identify sustainability performance improvement opportunities. It is proposed that these findings also have implications for addressing the United Nations' Sustainable Development Goal of responsible consumption and production.

Jobs for creatives outside the creative industries: a study of creatives working in the Australian manufacturing industry

More creatives work outside the creative industries than inside them. Recent Australian Census data show that 52 per cent of creatives work outside of the core creative industries. These embedded creatives make up 2 per cent of manufacturing industry employees. There is little qualitative research into embedded creatives. This paper aims to address this by exploring the contribution of creative skills to manufacturing in Australia. Through four case studies of designers and marketing staff in lighting and car seat manufacturing companies, this paper demonstrates some of the work that embedded creatives undertake in the manufacturing industry and some of the ways that they contribute to innovation. The paper also considers perspectives embedded creatives bring to manufacturing and challenges involved in being a creative worker in a non-creative industry. This research is important to economic development issues, demonstrating some of the roles of key innovators in an important industry. This work also informs the education of creative industries students who will go on to contribute in a variety of industries. Furthermore, this research exemplifies one industry where employment is available to creatives outside of the creative industries.

Evaluating CO2 Emissions Associated With International Outsourcing in Manufacturing Supply Chains

International outsourcing is a growing phenomenon in manufacturing industries due to the limited resources and the economic benefits of this phenomenon. Although international outsourcing seems to be a cost efficient way of production, the concerns about its CO2 emissions are rising dramatically. In this research, the impacts of international outsourcing on the CO2 emissions of all industries have been quantified. Input output analysis and linear programming have been implemented by programming in the Matlab as the research methodology. Australian manufacturing industry (outsourcer) and Chinese manufacturing industry (outsourcee) and their main suppliers that emit high CO2 levels were selected as a case study. The results of this study depict that international outsourcing of Australian manufacturing industry will reduce not only the CO2 emissions of that industry but also the CO2 emissions of the other domestic industries in Australia. In contrast, this international outsourcing will increase the CO2 emissions of both China and the other countries’ industries. This will lead to the growth of global CO2 emissions. In the worst case scenario, if the Australian manufacturing industry shuts down all its production, China and other countries CO2 emissions will increase 4.88% and 0.05% respectively. On this occasion, global CO2 emissions will increase by 0.82%. This paper presents a decision support system that will be useful for policy makers to evaluate the effect of different international outsourcing scenarios on CO2 emissions before making any real outsourcing decisions.

Innovation training within the Australian advanced manufacturing industry

Innovation has emerged as a core driver for the future profitability and success of the manufacturing sector, and increasingly both governments and the private sector are examining ways to support the development of innovation capabilities within organisations. In this research, we have evaluated a government-funded innovation training course designed to improve the capacity of businesses to innovate that are operating in the Australian advanced manufacturing sector. Using a well-regarded training evaluation model we identified the parts of the innovation curriculum that tangibly impacts the approach to innovation activities by manufacturing organisations. These include, most broadly, innovation project management, intellectual propert and open/directed innovation. We also identify that skills-based learning and certain pedagogies seem best suited to achieving improvement in innovation management, specifically a workshop method of delivery, experiential learning, trainers with relevant previous experience, and takeaway tools that participants could utilise in their workplaces.

Firm-level Innovation and New Venture Performance: The Moderating Role of Industry Innovativeness

The causal relation between innovations developed by a focal firm and its performance has for some time been inconclusive. In this paper, we focus on the Australian manufacturing industries of the 1990s as a relatively efficient context and functional institutional environment, to hypothesize potentially confounding effects of the state of innovation in an industry sub-sector, as well as an innovating new venture embedded within that sub-sector. Our results show that in general, new ventures commercializing an innovation enjoy higher sales growth and returns on assets. In addition, while an average new venture enjoys significant positive growth in sales in an industry sub-sector where innovativeness is high—capturing a 'rising-tide-raises-all-boats' effect, however, for new ventures themselves developing innovations, high industry innovativeness also presents as a high barrier to overcome, limiting sales growth and returns on assets. In particular, the interaction effect can be so large in magnitude so as to overwhelm the main effect of innovation on performance.

Marginal Intra‐Industry Trade and Adjustment Costs: The Australian Experience*

The objective of this research is to investigate labour market adjustment in Australian manufacturing industry over the period 1992–2000, a time of significant adjustment in the country’s trade pattern. Specifically, the focus is on the so‐called smooth adjustment hypothesis, which posits that, compared with inter‐industry trade, intra‐industry trade (IIT) expansion is associated with relatively lower factor adjustment costs. A dynamic panel data approach (GMM‐System) is employed. We find that there is a negative correlation between changes in employment and increased IIT. This result provides support for the smooth adjustment hypothesis. Given the rise in IIT as a proportion of Australia’s overall trade during the period under review, the resulting trade‐related adjustment in labour markets is likely to have been less than otherwise expected.

Local Responses to a Global Downturn: Labour Adjustment in Two Multinational Companies

After years of steadily declining sales and profits, the global financial crisis sent the United States and Australian automotive manufacturing industries into crises of their own. Faced with dramatically reduced demand, the companies cut production and, consequently, their production workforces. Using qualitative data from case studies of the Ford Motor Company, the General Motors Company and their wholly owned Australian subsidiaries, Ford Australia and Holden, we can assess the extent to which these two multinational companies standardized their methods of adjusting labour levels and to what extent such responses were localized. In four manufacturing plants implementing similar cuts in production, responses were developed locally, shaped largely by local market, institutional and political forces.

Capabilities, Proactive CSR and Financial Performance in SMEs: Empirical Evidence from an Australian Manufacturing Industry Sector

Proactive corporate social responsibility (CSR) involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society. Proactive CSR has been less researched in small and medium enterprises (SMEs) compared to large firms; and, whether SMEs are ideally placed to gain competitive advantage through such activity therefore remains a point of debate. This study examines empirically the association between three specified capabilities (shared vision, stakeholder management and strategic proactivity), proactive CSR and financial performance in SMEs. Using quantitative data collected from a sample of 171 SMEs in the machinery and equipment sector of the Australian manufacturing industry, we find that all specified capabilities are positively associated with adoption of proactive CSR by SMEs, and that proactive CSR is, in turn, associated with an improvement in firm financial performance. Evidence of a fully mediating role for proactive CSR on the association between capabilities and financial performance presented in this study aligns with RBV theory that suggests adoption of value-creating strategies that make the most effective use of a firm’s capabilities is essential to financial success. The study contributes to the CSR literature by demonstrating a case for SMEs being able to maximise financial returns whilst proactively making progress towards CSR.

The development of subsidiary roles in the motor vehicle manufacturing industry

This paper presents a revised subsidiary role framework that incorporates elements of the subsidiary development research. The study is grounded in the resource-based view and the network model of the MNC, and extends the subsidiary development framework by specifying new contributory roles. While drawn from extant subsidiary role typologies, these roles are extended to reflect different levels of resource development. The new framework delineates the influence of subsidiary resource development and subsidiary initiative on contributory roles. The study employs a single industry case study design, focusing on the Australian Motor Vehicle Manufacturing Industry (AMVMI). The findings establish that subsidiaries in the AMVMI have the ability to develop specialised resources and that when subsidiary initiative is combined with subsidiary-driven resource development, subsidiaries are able to exert considerable influence on the contributory role they fulfil.

The predictive ability of “conservatism” and “governance” variables in corporate financial disclosures

PurposeThe purpose of this paper is to examine the extent to which “corporate governance” and “conservatism” variables can contribute to the predictive ability of corporate financial disclosures.Design/methodology/approachMultiple discriminant analysis is used to differentiate between good and poor companies in Australian manufacturing industry on the basis of their 2009 performance. A classification model including size, governance and conservatism variables, together with financial ratio data is constructed based on 2008 data, and used to predict 2009 performance.FindingsA model with conservatism, total debt/total assets, company size, and “percentage of shareholdings held by non‐executive directors” (representing corporate governance) as its independent variables, has a classification accuracy of 80.6 percent, and a predictive accuracy of 62.2 percent.Research limitations/implicationsThe relatively small sample size, for Australian manufacturing companies, limits both the predictive ability of the model and its generalisability elsewhere.Practical implicationsThe findings of the paper demonstrate the importance of both “conservatism” and “corporate governance” measures in determining corporate financial performance.Originality/valueThe paper uses familiar discriminant methods in an unfamiliar context – focusing on surviving companies exhibiting extremes of financial performance.

The Impact of Technical Change and Profit on Investment in Australian Manufacturing

This paper combines W.E.G. Salter's analysis of capital-embodied technical change with Kalecki's analysis of financing investment from retained profits to provide a Post Keynesian model of investment with process innovation, which is applied to data from Australian manufacturing industries. The approach to process innovation taken in this study is to identify new capital stock introduced through physical investment, which results in the older vintage stock being decommissioned as technologically obsolete. In the estimated model, the profit factor is used as a measure of the ability to invest, and the rate of labour productivity growth factor reveals the inducement to invest as this rate acts as a proxy for technical change in the Kaleckian investment-ordering model. The two factors combine to explain the accumulation process, both level and variability, and its link to technical change. In conclusion, this paper demonstrates that investment, incorporating technical change, enables industries to become sustainable into the uncertain future with varying states of investment instability. …technical progress cannot be regarded as automatic and independent of accumulation. (Salter, 1966, p. 72)

Imports in Intermediate Inputs and the Demand for Skilled and Unskilled Labor in Australian Manufacturing Sector

I use Feenstra and Hanson’s (2003) outsource-driven framework to investigate the effect of imports in intermediate inputs on the demand for skilled and unskilled labor in Australia. Using a panel data on six two-digit manufacturing industries over the period from 1986/87 to 1994/95, the results suggest that trade in the form of intermediate goods appear to have caused some changes in the skill structure of Australian manufacturing industries.

An empirical investigation of the relationship between product nature and supply chain strategy

PurposeThe purpose of this paper is to empirically investigate the relationship between product nature and supply chain strategy, by using Fisher's model as the framework.Design/methodology/approachThe research collected quantitative data by conducting a questionnaire‐based survey, with a total of 119 respondent organisations (of which 107 were usable), at an adjusted response rate of 8 per cent. The survey results provide the basis for the testing of Fisher's model relating product characteristics to supply chain strategy.FindingsThe results indicate that the association between product nature and supply chain strategy as articulated in Fisher's model is not significant. A hybrid strategy (pursuing both efficiency and responsiveness) is found to be employed by most organisations irrespective of the nature of the primary product they supply.Research limitations/implicationsThe analysis is based on survey responses gathered within the Australian manufacturing industry. The findings of the study have implications for understanding the drivers of supply chain strategy, and how other factors, in addition to product type, influence supply chain positioning.Practical implicationsThe study identifies additional factors which might be influential in the determination of supply chain strategy. It provides practitioners with guidance in choosing an appropriate strategy to deal with supply chain partners.Originality/valueThe contribution of the study lies in extending the body of knowledge of supply chain strategy. It tests an existing framework which has only very limited empirical validation, and provides a broader understanding of the influence of product nature on the choice of supply chain strategy.

Employee organizational commitment: the influence of cultural and organizational factors in the Australian manufacturing industry

The importance of enhancing employee organizational commitment (EOC) is highlighted by the extensive literature revealing its positive impact on employees' job performance, reducing absenteeism and turnover rates, and improving employees' adaptability to organizational change. This study provides an insight into how EOC levels can be enhanced by examining the contextual factors that can influence EOC. Specifically, the study examines the association between cultural, organizational, and demographic factors with the level of EOC in the Australian manufacturing industry. Data were collected by a survey questionnaire from a random sample of 500 managers with the results revealing that two cultural factors (outcome orientation and stability) and three organizational factors (organizational size, perceived organizational support and job satisfaction) were found to be significantly associated with the level of EOC. Further analysis provides a preliminary insight into how to enhance the EOC of specific managers with different cultural and organizational factors found to be associated with the EOC of managers at different levels in the organizational hierarchy. The findings have important implications for practitioners attempting to improve the level of EOC of their employees with the subsequent enhancements in the level of EOC likely to contribute to improvements in productivity and growth in the Australian manufacturing industry.