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This paper discusses results from an international study of continuous improvement in product innovation. The empirical research is based upon a theoretical model of continuous product innovation (CPI) that identifies contingencies, behaviours, levers and performances relevant to improving product innovation processes. As successful knowledge management is widely recognised as a key capability for firms to successfully develop CPI, companies have been classified according to identified contingencies and the impact of these contingencies on key knowledge management criteria. Comparative analysis of the identified groups of companies has demonstrated important differences between the learning behaviours found present in the two groups thus identified, and in the levers used to develop and support these behaviours. The selection of performance measures by the two groups has highlighted further significant differences in the way the two groups understand and measure their CPI processes. Finally, the paper includes a discussion of appropriate mechanisms for firms with similar contingency sets to improve their approaches to organisational learning and product innovation.

The implementation of Total Quality Management (TQM) principles and practices in continuous‐process manufacturing operations is described from initial consideration through to TQM becoming part of the normal operations of the company. The importance of management‐led project teams in the early phases of implementation and the subsequent shift to operator‐initiated and ‐controlled quality improvements is detailed. Accreditation to international quality system standards (ISO 9002) and the interaction of such accreditation with the cultural change required for successful TQM implementation is discussed. Problems confronting effective TQM implementation or quality‐system accreditation are discussed such as: relationships between the multinational parent company and the domestic subsidiary, and the geographical separation of sections of the company between head offices and manufacturing site. A detailed examination is made of the organisational structure utilised to develop a TQM culture within the company, and the dynamic nature of such an organisational structure in the early phases of implementation is observed. The major requirement for increasing employee involvement in quality‐improvement activities is found to be an increasing commitment to employee training in the areas of: TQM principles; statistical tools; group problem‐solving skills; and leadership skills.

Service industries hold an increasingly dynamic and pivotal role in today’s knowledge‐based economies. The logistics industry is a classic example of the birth and development of a vital new service‐based industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the so‐called new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.

Notes that Australian businesses are continually being expected to respond to changes in the economy brought about by alterations to government policies. Suggests that those industries which survive and flourish will need to have in place a process for responding to change. Points out that continuous improvement (CI) was identified in a recent Australia/New Zealand manufacturing survey as the most important manufacturing enhancement process currently available. In 1997, an Australia‐wide study of CI in manufacturing was initiated by a benchmarking survey examining the CI activities of medium to large manufacturing firms. Reports on selected findings of the survey and presents an analysis by industry sector of the firms’ main motives for CI, content in the CI process, support for CI and problem‐solving tools used to support CI. Initial findings indicate that there are no significant differences between manufacturing organizations in different Australian states. However, significant differences were found on comparing different industry sectors.

An Australia‐wide study of continuous improvement (CI) in manufacturing was initiated in 1996/97 by conducting a benchmarking survey examining the CI activities of medium to large manufacturing firms. While most larger firms have an awareness of CI and many are actively implementing CI throughout their organisations, anecdotal evidence suggests that considerably less activity is occurring in the small‐to‐medium enterprise (SME) sector. Given the significant contribution of the SME sector to Australia’s GDP and international competitiveness, and the importance of CI to all firms regardless of size or industry, a sample of small‐ to medium‐size firms in New South Wales were surveyed about their CI activities. This paper reports on a comparative analysis of the findings of these two surveys and examines the firms’ main motives for CI, content in the CI process, support for CI, the usage of problem‐solving tools within CI process, and their general maturity level of CI. The comparison suggests that many motives for CI and the general content of the CI process are quite similar for both large and small firms. However, significant differences occur between the two when comparing CI support methods, and the use of problem‐solving tools within the CI process.

Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers. This being the case, a restrictive set of financial performance measures may adversely impact on an organization’s long‐term viability, so organizations should develop a broad range of performance measures. Berliner and Brimson state that “performance measurement is a key factor in ensuring the successful implementation of a company’s strategy”. Thus when organizations implement new strategies they should ensure that the appropriate set of performance measures are in place. In this paper we look at two case studies conducted in a medium‐sized manufacturing firm and a large manufacturing firm, and evaluate the managers’ perceptions of the strategy/performance measurement relationship, and the responsiveness of performance measures to changes in strategy.

This study aims to explore the nature of the interactions between two strategies, innovation and market orientation. By examining the components of these constructs the paper seeks to identify key components of market orientation that are antecedent factors of the innovation performance of the firm.

Correlation analysis was undertaken on data from a survey of 73 manufacturing firms in the Greater Western Sydney economic development zone in Australia. The data were supplemented by information obtained from the firm's annual reports.

Innovation was found to be positively correlated to market orientation (customer orientation, competitor orientation and inter‐functional co‐ordination) and both of these constructs were found to be positively correlated to firm performance and the degree of change in the firm's competitive environment.

Possible limitations are: the low survey response rate; the nature of the sampled population; and the spread of industries involved, which could limit the generalisability of the results. The next steps will be to conduct deeper analysis into the factors that make up the subscales of the two constructs and to determine how market orientation or its associated activities interact with the innovation process.

In order to maximize a firm's financial performance, organizations should increase both their market orientation and their innovation activities as these factors operate synergistically.

This study is arguably the first to establish the finding that the degree of change in the competitive environment and the level of market orientation are linked, and the identification of the components of market orientation that are linked to firm innovation. These findings suggest that firm innovation and firm market orientation are strategic reactions to changes in the firm's competitive environment.

Despite the increasing international evidence that has identified quality of product and service and a culture of continuous improvement to be essential for long‐term competitive advantage, many Australian firms apparently remain unconvinced of the substantial gains available through a focused commitment to quality and continuous improvement. Anecdotal evidence and limited previous research suggest that this is at least partly due to the often touted cost barrier and the failure of firms to integrate quality improvement developments with their strategic planning activities. Discusses specific outcomes of a survey of medium‐sized manufacturing and service firms in Australia. Categorizes questions relating to strategic aspects of quality and continuous improvement into five major indicator groups, related to their commitment to the integration of quality and strategic planning initiatives. Compares mean scores for these indicators to standard financial performance and productivity measures, to test the hypothesis that there is a definite link between a firm’s commitment to quality improvement and its financial and marketplace performance. Also compares individual question responses relating to continuous improvement and strategic planning to selected performance indicators in an attempt to identify quality‐improvement activities which may have a particularly influential impact on performance.

Service industries hold an increasingly dynamic and pivotal role in today's knowledge‐based economies. The logistics industry is a classic example of the birth and development of a vital new service‐based industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the so‐called new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.

This issue is a selected bibliography covering the subject of leadership.