What makes Australian IT industry companies go global?

Searle, Glen and O'Connor, Kevin (2010). What makes Australian IT industry companies go global?. In: Tan Yigitcanlar, Peter Yates and Klaus Kunzmann, Proceedings of: The Third Knowledge Cities World Summit. From Theory to Practice. KCWS 2010: Knowledge Cities World Summit, Melbourne, VIC, Australia, (864-874). 16-19 November 2010.

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Author Searle, Glen
O'Connor, Kevin
Title of paper What makes Australian IT industry companies go global?
Conference name KCWS 2010: Knowledge Cities World Summit
Conference location Melbourne, VIC, Australia
Conference dates 16-19 November 2010
Proceedings title Proceedings of: The Third Knowledge Cities World Summit. From Theory to Practice
Place of Publication Melbourne, VIC, Australia
Publisher World Capital Institute, City of Melbourne; Office of Knowledge Capital
Publication Year 2010
Sub-type Fully published paper
Open Access Status
ISBN 9780646546551
Editor Tan Yigitcanlar
Peter Yates
Klaus Kunzmann
Start page 864
End page 874
Total pages 11
Collection year 2011
Language eng
Formatted Abstract/Summary
This paper examines the characteristics of Sydney and Melbourne IT industry companies that have a significant global market for their products. The paper examines academic literature on company-level factors favouring the export of services, and uses this to frame the analysis. The data for the analysis comes from phone interviews of a random stratified sample of IT industry companies in the two cities. The analysis identifies company correlates of significant overseas sales, including ownership, size, type of product, sources of knowledge and finance, and extent of innovation. The way in which the findings fit models of the global structure of software and other IT industry components is considered. In particular, the extent to which IT exports result from regional offices of multi-national corporations as against home-grown firms is examined. In terms of urban context issues of the KCWS conference, the role of Sydney- or Melbourne-specific factors, such as the city’s overall industry structure and industry specialisation, that have aided IT exports is a particular focus of the analysis. The findings are then used to propose IT industry policies that could increase the ability of Australian IT industry firms to compete globally.

Purpose – The purpose of the paper is to analyse factors at the firm level that are associated with IT exports from Australia.

Design/methodology/approach – We use data from a random sample of Sydney and Melbourne IT firms that is stratified by firm size to identify the level of exports according to firm characteristics that include IT sub-industry, size, level of innovation, sources of knowledge, inter-firm collaboration, and perceived problems from Australia’s location.

Originality/value –This paper discusses evidence as to what kinds of Australian information technology companies export some or most of their production, and how Australia’s global location hinders IT exports. It thus identifies some dimensions of the policy question of how Australia’s large deficit in IT imports/exports might be better addressed.

Practical implications – The findings of the paper have policy implications for promoting Australia’s IT exports.
© 2010 World Capital Institute, City of Melbourne and Office of Knowledge Capital
Keyword IT exports
Multinational companies
Global periphery
Q-Index Code E1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Presented during Parallel session 4.3 as Paper 54.

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Created: Fri, 18 Mar 2011, 14:29:12 EST by Helen Smith on behalf of School of Geography, Planning & Env Management