ii PREFACE This report, Changing Business Realitie

CCCHHHAAANNNGGGIIINNNGGGBBBUUUSSSIIINNNEEESSSSSSRRREEEAAALLLIIITTTIIIEEESSS???TheImplicationsofE-commerceTechnologiesforRuralNon-FarmBusinessesiiCCCHHHAAANNNGGGIIINNNGGGBBBUUUSSSIIINNNEEESSSSSSRRREEEAAALLLIIITTTIIIEEESSS???TheImplicationsofE-commerceTechnologiesforRuralNon-FarmBusinessesRichardStaynerandJudithMcNeillInstituteforRuralFuturesUniversityofNewEnglandApril2003iiiPPPRRREEEFFFAAACCCEEEThisreport,ChangingBusinessRealities?TheImplicationsofE-commerceTechnologiesforRuralNon-FarmBusinesses,wascommissionedbytheAustralianBusinessFoundationtoexaminetheopportunitiesandthethreatsposedbye-commercetobusinesscapabilityinruralandregionalAustralia.TheAustralianBusinessFoundationisanindependent,privatesectorthinktankfoundedandsponsoredbytheleadingindustryorganisationAustralianBusinessLimited.TheAustralianBusinessFoundationhasasinglemission—toconductanddisseminateground-breakingresearchtoadvanceknowledgeandfosterwellinformeddebates,newthinkingandimaginativeinitiativesonAustralia’sbusinesscompetitiveness,economicgrowth,prosperityandjobs.ThisiswhatpromptedtheAustralianBusinessFoundationtocommissionthisinvestigation,whichprovidesasnapshotintoruralAustraliatodeterminetherealityoftheimplicationsofelectroniccommerceforruralnon-farmbusinesses.Thestudywasundertakenagainstthebackdropofcurrentliteraturewheresubstantialchangestobusinessesasaresultofe-commercetechnologiesarepredicted.Therealexperiencesofbusinesseswithe-commercestrategiesasillustratedinthisreport,provideanewaccountoftheimpactofe-commerceanditssignificanceforruralAustralia.ThestudywasundertakenbyRichardStayner,PrincipalProjectDirectorandJudithMcNeill,Post-DoctoralResearchFellowoftheInstituteforRuralFuturesattheUniversityofNewEnglandinArmidale,NewSouthWales.TheInstituteundertakesmulti-disciplinaryresearchintoissuesaffectingthefutureofnon-metropolitanAustralia.RichardStaynerhasconductedawiderangeofstudiesonissuesrelatingtotheeconomyofruralregions.DrMcNeillisaneconomistwithextensiveexperienceinCommonwealthandStatebureaucraciesaswellasinUniversityteachingandregionaleconomicdevelopmentresearch.JonathanCartledge,theAustralianBusinessFoundation’sResearchAnalystcontributedsignificantlytothecompositionofthefinalreport.TheauthorsandtheAustralianBusinessFoundationgratefullyacknowledgethecontributionofthebusinessesthatparticipatedinthisstudy.Theinterviewsundertakenwiththesebusinesseswerevitaltodeterminetherealityoftheimpactsofe-commerceasrevealedinthisreport.ItisanticipatedthatthisstudywillassistbusinessesinruralandregionalAustraliatodeterminehowbesttopositionthemselvestobenefitfrome-commercetechnologies.Thisreportisjustastartingpointthatlooksatthee-commerceexperiencesofasmallnumberofnon-farmruralbusinesses.TheAustralianBusinessFoundationoffersitasaninvitationforotherstotelltheirstories,sowecanbuilduparicherpictureofthewaye-commercetechnologiesareinfluencingbusinesslifeinruralAustralia.140ArthurSt,NorthSydneyNSW2060Phone:[phone]Fax:[phone]Email:[e-mail]:‘distance-dissolving’potentialofe-commercecouldbeboththesourceoffurtherchallengetothemandauniqueopportunityforthemtoachievefurtherefficienciesandbuildawidercustomerbase.1Thestudysoughttoexaminehowe-commercetechnologiesarechangingorlikelytochangethewaybusinessisbeingdoneinruraltownsandregionalcentres.Inparticulartoexplore:§Whataretheopportunitiesofferedbye-commercetechnologiesinruralareas?§Howseriousarethethreatsintheseareas?§Howaree-commercetechnologieschangingbusinesscostsandefficiencies?§Howise-commercechangingbusinessproducts,organisation,marketsandprocesses?Thefindingsforthisreportwerederivedfrom53interviewswithruralbusinesspeopleandotherrelevantinformantsinsixinlandtownsinnorthernNewSouthWales.ThetownswereTamworth,Dubbo,Inverell,Gunnedah,GuyraandUralla.Thesetownswereviewedastypicalofmanyinlandtownswithsimilarrecenteconomichistories,economicstructuresandrelationshipstothewidereconomy.Thesetownsalsoofferedavarietyofbusinessestointerview.Thestudyfocusedontheimpactsofe-commerceonthesebusinessesratherthanonitsimpactsonthetownsasawhole.Thefindingsdescribetherealityoftheimpactsofe-commercetechnologiesonnon-farmruralbusinessesandalertthesebusinessestowaysofbettercapturingfuturebenefits.1SeeSimpson(2001,pagev).vFindingsAreviewoftheexistingliteratureontheimplicationsofe-commerceforbusinessidentifiedsevenkeypropositionsofrelevancetothetermsofref