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Contents
Integration of positive cultural practices into the international business landscape. 7
Multiple perspectives on innovation: Prospects and Strategies for International Managers. 17
Measuring corporate excellence: the role of the Australian Business Excellence Framework. 20
Abstract
This study was in the form of a literature review that focused on the effects of administrative leadership on the way Australian international companies operate. The study explored the way in which business leaders’ perceptions of corporate ethics and social responsibility determine business outcomes. Negative perceptions of administrative leaders were found to make owners of Australian companies reluctant to venture into the international markets.
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The administration leadership’s core role of integrating positive cultural practices into the international business landscape was also identified. Many corporate players in Australia are facing many challenges while trying to choose the best approach in dealing with cultural dilemmas. While some business people choose to adopt an imperialist perspective, others choose a relativist or a Universalist perspective. The need for a unified international code of cultural and ethical conduct was identified.
In the academic circles, the concept of International and Cultural Leadership (ICL) is the closest that intellectuals have come to addressing subtle cultural dilemmas that business people encounter while handle carrying out transactions at the international level. Heads of international companies in Australia have adopted an experiential learning approach while dealing with cultural problems at the international level. This is evident in the high level of employability among graduates with a proper understanding of inter-cultural communication.
Bribery is one of the problems that business leaders face. Corporate players tend to refer to the internationally set guidelines on how such issues should be handled, examples of include the UN and OECD. However, the guidelines have not been effective in deterring bribe-seekers from disrupting the smooth process of doing international business. Business leaders should lobby in order to ensure that more effective legislations are put in place for the benefit of international traders both from Australia and elsewhere.
The perceptions that shape the Australian international business environment are influenced by the approaches taken by administrative leaders. Most of these perceptions draw heavily on the country’s culture of free enterprise economy. These perceptions shape the manner in which Australian companies sell raw materials to countries such as China, India and the United States.
The impact of administrative leaders is also felt on the way legislation is done in areas like the acquisition of workforce, ethical dilemmas, cultural incongruity, and uptake of information technologies by international business. The leadership is also credited with impacting on perspectives that are taken with regard to innovation. The success of the Australian business Excellence Framework also depends on the way in which Australia’s administrative leadership creates various platforms for business design, administration, and promotion.
Introduction
Australia has been playing a key role in international trade since the 1950s. The country’s corporate success is attributed to, among many things, the positive attitude that has been instilled into business players by administrative leaders. This impact has been occasioned by the improvements that the leaders put in place in order to ensure that business players are able to exploit opportunities both at the local and the international level.
However, competitiveness has kept on increasing since Australia’s leadership embarked on the uphill task of influencing business people to take a global approach to business. Globalization has opened new business horizons by bringing diverse cultures together. This has brought about many new benefits and challenges as well. On the positive side, information technology has made the world borderless, meaning that an Australian company can handle transactions with another company from any part of the world. On the negative side, diversity in cultural, ethical and moral perspectives between people of different backgrounds slows the pace of doing business.
This paper assesses the role that administrative leadership plays in to determine the success of Australian international companies. The difficulties that business people face are highlighted, the existing frameworks of assessing business excellence are analyzed and the role played (or ought to be played) by the administrative leaders is identified.
Influence of administrative leadership on perceptions regarding Corporate Ethics and Social Responsibility and the resulting consequences
Administrative leadership impacts on the way managers perceive corporate ethics and social responsibility as well as the resulting business-related consequences. The manner in which professionals and managers regard issues of ethical and social responsibility are is shaped by the nature of administrative leadership that has become the norm in the country. Many owners of Australian international companies take their perceptions of ethics with them when they enter into international business frontiers. Sometimes, their perceptions turn out to be very different from those that are practiced in foreign countries.
In an exploratory study, Cacioppe et al (2008, p. 681) sought to examine the perceptions of professionals and managers on reputations regarding reputations of 60 Australian and international companies in terms of ethical and social responsibility. The study was done on the premise that the resulting perceptions of these organizations shape the manner in which these professionals and managers conduct business at the international level. The results indicated that managers and professionals have very clearly definable perceptions on the reputations of different business organizations as far as matters of ethical and social responsibility are concerned.
Administrative leadership and perceptions go hand in hand, whether in the case of local companies or international companies. Proper ethics come with many advantages for the concerned companies because of the resulting positive reputation. In Australia, the issue of ethics and proper corporate conduct has been widely studied in order to ascertain the extent to which these issues determine the success of administrative leadership.
Investors and consumers likewise always examine the companies before choosing to deal with them. A good starting point in their assessment is the administrative structures that are in place and the way issues of ethics and governance are articulated at each level. Today, business is taking an international the world over and Australia has not bee left behind. Many local companies are exploring new frontiers at the international level. The ethical practices that exist in home markets are heavily influenced the approach that managers take at the international level. If foreign ethical practices are negative, the administrative leadership may, consciously or subconsciously, impose the same principles in affiliate companies at home.
When the survey on perceptions of managers and professionals was conceived during a program on Australian business organizations in 2001, the participating managers had proven that as far as literature revealed, social responsibility and ethical investment were two different concepts (Cacioppe et al 2008, p. 682). Also underscored in recent literature is the need for the administrative leadership of various companies to strive and become a mantle of proper business ethics. Emphasis on ethics has been occasioned by recent highly publicized collapses of many US-based companies, including Enron, Tyco, and WorldCom. In Australia, the collapse of companies like Onetel, HIH and Westpoint has been publicized. In Italy, a similar fate has recently befallen Permanent and UMP, among several others.
When administrative leaders engage in unethical practices, either at the local or international level, the resulting negative publicity leads to a damaged reputation, whose long-term effect is the loss of clients, prospective associates, and consumers. A good example is a recent scandal whereby executives of several Australian companies were accused of paying bribes to Saddam Hussein’s regime (Cacioppe et al 2008, p. 683).
Leaders of Australian international companies, like everyone else in today’s corporate scene, have been forced to rethink their corporate social responsibility (CSR) strategies in order to bring them to terms with recent literature. Today, CSR is seen to entail the achievement of commercial success through ways that compatible with ethical considerations, respect for everyone in the community and the environment. For many business leaders who are eyeing the international business market, portraying a positive image in terms of CSR at the family, local and international levels in order to bring about positive-transformation leadership.
While conducting their survey, Cacioppo et al (2008, p. 683) noted that leaders who are good role models influence employees to “do the right thing” all the time. Strong moral leadership, therefore, is believed to be a major factor that determines the success of Australian companies. Additionally, many studies reveal the disparity that exists between the actions of employees and managers and the espoused values (Vershoor 2000, p.23). The report by Vershoor indicates that the perceptions of employees and key ethical outcomes tend to be more positive in cases where employees perceive ethical values such as respect, honesty, and trust trickling down from the top management of business organizations by being applied at work.
Integration of positive cultural practices into the international business landscape
A number of leaders of Australian international companies may have come across the term International and cultural leadership (ICL). According to Crossman (2009, p. 223), ICL is an emerging concept that explores the manner in which international business leaders understand international and cultural issues. Even those Australian leaders of international companies who have not come across the term ICL have encountered cultural issues that affect their businesses.
Crossman (2009, p. 223), assesses the available scholarly materials on ICL in order to critically analyze and reflect on the way international business leaders in Australia handle cultural issues. Emphasis is also put on the level of attention that cultural issues are given in various Australian universities that train business managers of the future.
Crossman (2009, p. 223), in a concluding remark, stresses the need for further discussions to be made amongst academics and organizations on how Coeducation should be conceptualized through experiential learning as applied by business managers. The implication here is that today’s business managers in Australia seem to be overwhelmed by cultural diversity that exists in the international corporate environment (Crossman 2009, p. 226).
Crossman, (2009, p. 224), there are many difficulties in the process of conceptualizing ICL among administrative leaders. This difficulty may be viewed in light of the complications that characterized every international undertaking. According to Crossman’s research, data findings highlight the belief among leaders that ICL education can enhance the level of students’ employability.
Participants in the research clearly indicated that education on international and cultural leadership can best be delivered through an experiential learning approach that focuses on internships and academic exchanges. However, there is little mention of literature on experiential learning, except for instances where academics call for reflection, intellectual rigor, definition and critical analysis of learning outcomes (Crossman 2009, p. 224).
International and cultural leadership in businesses can greatly help deal with parochialism (Kempster, 2006, p. 21). In terms of employability in the corporate scene, Crossman (2009, p. 224) observes that graduates with an ability to deal with issues that arise through interactions in international markets are likely to be offered business leadership positions in both local and international companies. The main factor, according to these employers, says Crossman is the ability to understand the nature of intercultural communication (224)
Leaders need to understand the concept of culture in order to understand the international environment in which they conduct business (Gardner 1990, p.165). As Mintzberg (2004, p.22) points out, the popularly held view that international and cultural leadership exists is closely linked to literature on universal leadership styles, which transcend geography and culture. This is a broad concept that entails many contexts such as government, business, and professions. There are specific elements that relate to each of these contexts.
The tasks and purposes that leaders of Australian international companies choose to adopt are determined by the target cultural settings of the foreign country. They are also largely dependent on the existence of a global culture that is being nurtured through the cyberspace-based information superhighway.
The context of international business leadership in Australia is not unique although there are issues that are of more relevance to this country compared to those of other countries (Crossman 2009, p. 227). However, as local markets tend to depict a shift towards internalization, many Australian owners of international companies find themselves targeting the international culture at the expense of local culture. Cultural diversity, for this reason, seems to favor. For these managers, culture is not defined so much by geographical borders but by the disparities in terms of access to information.
Experiential learning is a key element for leaders of companies that have an international outlook. In this case, the learning experiences take the form of international exchanges among business leaders on practices, norms, and traditions that have an immediate on the way a company is perceived.
Administrative leaders in Australia have tended to fail by trying to influence people of diverse cultures to change their way of acting instead of changing their way of thinking in order for them to embrace the products on offer. When people of diverse cultural dispositions are influenced into thinking positively about a company’s s products, innovation can take place more readily as new, cost-effective re-packaging activities can be done in order to increase the acceptability of the product offering(Crossman 2009, p. 227).
The way in which corporate leaders approach the issue of culture has largely affected the strategies they adopt while penetrating new markets. The scanty research findings available today indicate that many company leaders choose to study the cultural landscape of new markets before launching products. In the modern era of globalization, it may be difficult to determine the benefits and drawbacks of such an approach without first considering the type of product being traded.
By engaging in international and cultural leadership activities in today’s world, administrative leaders are setting a positive precedent for future business leaders. They are also benefiting from experiential learning by developing knowledge that can be beneficial if shared with other international business players. Some of the most commonly encountered difficulties include linguistic barriers, incompatibility of products with the market needs, high cost of technical expatriate staff, stringent trade regulations and restrictions, among others.
Crossman 2009, p. 227, in a study of international and cultural leadership, focused on perspectives of academics from the University of South Australia. According to Crossman’s findings, experiential learning needs to be introduced in the curricula of universities, and that success in international business leadership is strongly linked to critical analysis, expectations of intellectual rigor and reflection (p.227). Crossman also suggests that there should be discussions amongst academics and organizations on the conceptualizations of ICL in order for innovative approaches to experiential learning to be introduced through ICL education.
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Among the issues that Crossman found out to be at the heart of success for leaders of international companies include emotional intelligence, tolerance, respect for people of all cultures, curiosity, flexibility, innovation, humility open-mindedness and well-roundedness (p.227). The need for personal development on the issue of overcoming cultural and linguistic uncertainties was also identified to be critical for every Australian who wants to get out into an environment that is completely unfamiliar.
Influence of Administrative leadership on trends regarding how local Australian managers confront and deal with international ethical concerns such as bribery
International business leaders often face ethical dilemmas in their attempts to operate in cross-cultural settings. The way in which they deal with these dilemmas determines their level of success. The most important question that arises whenever such dilemmas are encountered is one whose norms ought to be adopted (Pedigo & Marshall 2009. p. 59). Bribery, according to Pedigo & Marshall (2009, p. 59), is a major ethical dilemma that affects Australian managers who pursue international business dealings.
Globalization has brought about the need for interdependence among people of different cultures who have to do business in a borderless world (Hofstede1997, p. 105). In such an environment, individuals are faced with pressure to violate various personal and cultural practices of their home country whenever they are confronted with the ethical values and practices of the host country. In this regard, the question arises, of whether it is possible for a set of universal norms to be adopted.
According to relativist perspectives, no one’s cultural and ethical beliefs are superior to those of others (Donaldson 1996, p. 48). Every culture has a set of rules that determine which behaviors are acceptable and which ones are not. For his reason, there is no universal rule that can be used to determine which culture is superior to all the others. Realists insist that such observations reinforce the reality of the existence of a state of anarchy in international relations. According to the imperialist perspective, people ought to apply the ethical practices that are acceptable at home (Donaldson 1996, p. 48). While doing this, they have to obey all the rules and regulations set by the host country.
Administrative leaders all over the world have often pondered over the possibility of coming up with a universal framework in order to solve the cultural dilemma. For instance, in the CAUX Round Table, some standards were set against which ethical behavior would be measured. The set of behaviors was based on the Western conceptual value of human dignity and the Japanese Kyosei (working and living together for the good of everyone) (Pedigo & Marshall 2009. p. 60).
Australia’s administrative leadership has been influenced by internationally set guidelines in order to avoid trade-related conflicts. Some sources of these guidelines include the UN, the OECD, and initiatives of international institutions such as Transparency International. Efforts at creating harmonized laws have been motivated by the notion that business is fast becoming a global affair. Nonetheless, the main question remains whether it is possible to set up an ethical guide that ensures the acceptability of all business transactions made between people of diverse cultures.
Pedigo & Marshall (2009, p. 59) observe that much of the literature that exists on the ethical dilemmas that are faced by managers in the Asian-Pacific region recommend the setting up of principles that guide the manner in which ethical concerns are solved amicably at the international level. Most of the researches that make this recommendation has been done using a quantitative approach. However, recently, several qualitative pieces of research have been done on these areas and the findings do are not much different (Kavali et al, 2001).
Empirical researches that have been undertaken on issues relating to Australian international business ethics largely focus on the process through which managers follow while making important decisions. From the outcomes of these researches, it is clear that the trickiest scenarios are represented to these managers when it comes to matters of international cultures and ethics. As far as bribery is concerned, some of the issues encountered include alteration of invoices, poor product quality, thefts, violation, cognitive dissonance, racism, information rights, power networks and human rights (McNeil and Pedigo 2001, p.312).
Armstrong et al. (1990) did research on the ethical dilemmas faced by Australian leaders of international business. Thirty-eight marketing managers were requested to name the most nagging international ethical concerns that they face. Some of the issues that were raised include bribery, pricing, cultural differences, gifts/favors/entertainment, product/technology, questionable commissions, tax evasion, involvement in politics, and immoral/illegal activities.
Pedigo & Marshall (2009, p. 60) observe that according to research done by Transparency International (TI), Australia appears to be perceived favorably as far as global corruption measures are concerned. According to TI’s Corruption Perception Index (CPI), Australia was on position 11 out of 91 countries in terms of the perception of the integrity of the country’s officials. This is a reflection of the good leadership that business leaders portray both locally and internationally.
However, despite favorable outcomes on the perception of corruption by Australian officials, not much had been done by way of research in order to determine, categorize and handle the various global ethical dilemmas that the country’s international investors face whenever they choose to risk their money by investing in foreign markets.
Australian managers were reported to be applying imperialist approaches while dealing with bribery through the application of their own standards and values, as well as refusing to be a party to any behaviors that they considered to be unethical. However, others took a relativist approach, choosing to conform to the norms and cultures of host countries. Yet others adopted what may be referred to as a universal approach.
The research is a good source of insights for the Australian government, especially when it comes to the issue of the Criminal Code Act of 1999, which prohibits giving out bribery to foreign officials. Some respondents associated international business with lost business, adopting a cynical attitude with regard to how such legislation would have in altering the expectations and behaviors of international corporate players from other countries (Pedigo & Marshall 2009, p. 61).
One of the strategies that administrative leaders on Australian international companies use in order to deal with cross-cultural ethical dilemmas is relationship building. They build relationships using approaches that seem to deviate from the rigidity of traditional approaches like relativism, imperialism, and universalism. In fact, the prospect of a positive outcome out of attempts at relationship building is one of the reasons why some Australian business leaders chose to say that they had not experienced any instances of bribery in their business transactions at the international level (Pedigo & Marshall 2009, p. 64).
Prospects and Strategies for International Managers conducting business in Australia: the role of Administrative leadership
The influences of good administrative leadership are evident in all macroeconomic structures that exist in Australia. International trade engagements have been an integral feature in the Australian economy since the 1950s. In recent years, a global perspective to trade has been promoted through the establishment of an integrated macroeconomic policy that paves the way for a competitive global economic environment. This has been done through the creation of bilateral and multilateral trade agreements.
Many incentives have been used for internationalization efforts in the Australian economy, with specific emphasis being on the creation of macroeconomic cost-effectiveness. These efforts have not been without challenges, most of which trickle down to the activities of administrative leaders of international companies.
Since the early 1990s, the Australian government has been struggling to reduce trade barriers that discourage local exporters from entering into the global markets. The focus has been on positioning Australian as a major global supplier of quality goods and services. Specifically, the task of ensuring that transaction costs are reduced has proven to be a daunting challenge.
Without innovative use of opportunities by business leaders, Australia would not have succeeded in internationalizing her markets. Australian exporters have been an integral part of the creation of an export culture as well as an internationally competitive environment for trade to take place. This has been made possible by the creation of stable economic and financial institutions as well as an enabling environment within which private companies can operate.
Without privatization efforts, companies like Toyota Australia would not have been able to operate within the laws and regulations set in the country. The most successful business leaders are those who understand the various phases that the country’s economy has gone through before finally becoming a global business hub.
Leaders of local companies have been working hard in order to create agencies and organizations that are business-friendly. If there were many types of research on the transition of the country’s economy from the phase of corporatization to that of privatization, the role played by business leaders would have been appreciated to a greater extent.
For every economy to grow, the business class has to be innovative. In this era of internalization and privatization, the Australian international business landscape, this innovation shaped by visionary administrative leaders of companies through market-based processes, structures, and funds that are without any government guarantees. In an effort to penetrate the global markets, these leaders have had to make many changes, chief among them business cultures.
Clark & Vemuri (2008, p. 61) state that the cultural and social values that form and shape the Foundation of the legal system in Australia are based on the traditional freedoms that are characterized by, among other things, a free enterprise economy. The various practices for which leaders of international companies in Australia are guaranteed to get protection include the right to private property and the profit that is derived from it, freedom to engage in various industry and commercial activities of one’s choice, freedom to join hands with other people in order to form joint ventures, freedom of contract, freedom of labor among many others (Clark & Vemuri 2008, p. 61).
Yet international company owners continue to face many problems relating to cultural values and norms in the process of conducting business. Some people say that some of the problems that arise are a product of deeply ingrained perceptions among company leaders. Some of these perceptions relate to the acquisition of workforce, dealing with ethical problems, cultural incongruity among international business associates and disparities in the uptake of information and communication technologies.
The response taken by Australian administrative leaders of companies to changing business environments determines how the nagging problem of trade imbalance is tackled and the trends adopted. It is difficult to define this influence vis-à-vis the role of the Australian Federal Government without conclusive research being carried out first. Meanwhile, the role that they play in maintaining a global outlook in the country’s economic environment is self-evident, commercial challenges notwithstanding.
An assessment of the future outlook of Australia is important for both business leaders and policymakers, yet both of these stakeholders have a very critical role to play in shaping this future. The country has been able to build a class of educated leaders and a reputable international corporate brand while Mother Nature has provided raw materials. Many international Australian companies have been selling these raw materials to countries such as China and the United States. The shortage of venture capital and the capacity by administrative leaders to manage all factors of production seem like the biggest concern in today’s effort by the country to cut out a niche in a globalized economy (Clark & Vemuri 2008, p. 61).
Multiple perspectives on innovation: Prospects and Strategies for International Managers
Innovation is important for the development of every country’s economy. Australian business leaders sometimes tend to forget about the global competitiveness that continues to increase by the day in terms of resources and agriculture. Broadening the innovative capacity of a country strengthens not only local trade but also international trade. the positive effects of innovation that is spearheaded by visionary administrative leaders of international companies manifest itself in the creation of new jobs, stabilization of a country’s balance of payments, creation of new sources of national earnings and competitiveness in global markets.
Australian business leaders are aware of the many success stories that have been a result of innovativeness in the conduct of business. Successes on the international frontiers motivate leaders of local companies to face the risks of international ventures with renewed confidence. On the whole picture success in business translates in a sense of renewed confidence in the society, thus contributing towards corporate social responsibility.
Business leaders are also aware of the fact that there is no single sector of the Australian economy where innovation is not needed. Likewise, all companies are better off adopting a global approach to business practices, since this is the direction towards which the current corporate trends are pointing. The position of administrative leaders in efforts at internationalization of local companies cannot be gainsaid. The way in which these leaders handle issues relating to cultural and ethical differences sets a precedent for aspiring managers of local companies to follow in the future.
During the proceedings of the Melbourne Forum on December 6, 2006, administrative leaders from across Australia’s sectoral divide agreed that innovation leadership needs to be practiced by all people, although the agenda should be owned collectively. They also agreed on the need for the collectivity of approaches taken by a community of people, institutions, and organizations in order to promote innovation in all aspects of Australian life.
In the preamble to Innovation Leadership Forum, Meeting the Challenges, a publication by the Melbourne Forum, most of the critical challenges faced by the current administrative leadership were highlighted. It was felt that the best sources of innovation need to be understood and that all appropriate processes need to be activated in order for knowledge and ideas to be put into good use through innovation. This would only happen through approaches that are based on robust analysis and hard evidence, the leaders said.
The manner in which leaders set their priorities determines the path that the companies that they head to take on the arena of global competitiveness. For today’s development-minded Australian, the emphasis is on human capital development, especially with regard the emergence of emerging information technologies and their applicability in various business practices.
Human capital development is best understood to constitute modalities of systems integration, design, networking and brokering. In some cases, corporate actors cannot help but wonder why the Australian Federal government cannot create policies that bring about flexibility in international business undertakings (Hall 1991, p. 220).
Just like in the case of traditional business practices, job training remains an attractive way of skills development. For innovation to take place, international companies have to facilitate lifelong learning approaches in their workforce. Leaders have realized that by doing this, everyone stays abreast of the latest development in areas of technology, culture and business practices.
During the 2006 Melbourne Forum, the role of public administration was highlighted. First and foremost, leaders of different companies and organizations agreed that data integration means a lot for a company’s level of success. Data integration forms a stable platform for effective public policy planning, coordination, and implementation.
Striking a better balance between technology invention and policies for knowledge production leads to a smooth flow of knowledge, diffusion of know-how and adoption of innovative ideas. Australia has seen enough of wasted intellectual energies whereby the resulting innovative ideas were never put into good use by international companies.
Hall (1991, p. 220) notes that any government that ignores the view of the business leadership rarely succeeds in spurring economic growth. Today, the priority seems to be on the stimulation of innovation among small and medium-sized companies. These companies, if given the right kind of government support, can succeed in venturing into the global market. Here, the counsel of public administrators should be considered so that the effects of risk-shifts among governments are mitigated. Additionally, timely, informed business counsel can increase the pace of growth of existing companies.
Vershoor (2000, p. 23) states that for innovative policies to succeed, they must be sector-sensitive; that the nature of innovation varies considerably across various sectors. Nevertheless, there are many points of intersection between different industries, sectors, and institutions that need to be identified as part of the integration process (p.24).
Whenever the debate on administrative leadership is being articulated, one of the most important areas of discussion is normally the role of the board and its strength in stewarding towards innovations that meet international standards. For boards to manage companies well on the international scene, they need to be professionally constituted while at the same time maintaining diversity.
To a certain extent, the level of success of Australian companies seems to be positively impacted by instances whereby private and public sector leaders are invited to give their advice on how an international company should avert and resolve contemporary business challenges and dilemmas.
Measuring corporate excellence: the role of the Australian Business Excellence Framework
Nigel & Mann (2008, p. 1175) states that the National Quality Awards and Business Excellence Frameworks (BEF) have a great potential of playing an important role in elevating businesses and organizations towards improvement in performance. Consequently, they can collectively be viewed as a key mechanism through which the prosperity of a country can be achieved.
The Australian Business Excellence Framework (ABEF) is an important focal point where leadership issues are articulated. Cauchick-Miguel (2004, p 12) reports that 76 countries (2006 estimates) implement BEF strategies although the number could have increased to about 82 by 2007. The ABEF was formed in i1987 and today, it is one of the world’s pioneer BEFs. The relevance of ABEF in administrative leadership is far-reaching.
ABEF encompasses seven main categories: leadership; people; customer and market focus, innovation, quality, and improvement; strategy and planning; success and sustainability, customer and market focus; and knowledge and information. The framework awards leaders with the highest possible total of 1000 points that are accumulated when 22 scoring items are considered. This scoring mechanism has been useful in defining the frames of success among various stakeholders in Australia, and particularly administrative leaders of international business.
Whenever the issue of business excellence is being addressed, the issue of leadership comes to the fore. However, as Nigel & Mann (2008, p. 1177) point out, previous research on various aspects excellence has focused on three main areas: (a) assessment of ‘soft’ and ‘hard’ benefits in comparison to financial costs, (b) framework structure validation, and (c) studies that dwell on the efficacy of various national frameworks and their implementation. In view of this observation, it is clear that there is little or no mention of the impact of administrative leadership, at least not overtly.
Many studies have been done on the role that public administrative leaders play in shaping the role of ABEF in the Australian corporate world (Nigel & Mann 2008, p. 1178). The available evidence shows that BE frameworks are perceived differently in different companies (1180). Leaders are always positioned in such a way that they can shape this influence. Most of the time, they are frameworks are perceived as either ineffectively communicated or insufficiently comprehensive.
Whenever leaders fail to understand the underlying mode of functioning of BEFs, this negatively affects prevailing attitudes towards the various modalities put in place to measure business excellence, such as scoring, credibility, and evaluation. On a positive note, business excellence frameworks enable wise leaders to create goals whose duration of implementation stretches for more than one year. It is worrying that today, quite a significant number of Australian international business leaders do not put in place long-term stretch goals (those that are implementable for more than one year (Nigel & Mann 2008, p. 1178).
The main reason why it is important to set long terms goals is that while using BEFs, it takes several years before a return on investment is realized (Hendricks & Singhal, 2000, p. 74). However, this seems to be contradicted by recent studies by EFQM (European Foundation for Quality Management), which indicated that many benefits can be obtained only one year after the award is won,(Centre of Quality Excellence, 2005).
Conclusion
In summary, the success of international companies in Australia depends, to a large extent, on the efficiency of the framework of operation that is provided by administrative leaders. As the forces of globalization continue to shape the way business is done at the international level, new dilemmas keep emerging. The role of administrative leaders is to identify these problems, and to address them. When faced with unfair competition, business leaders may choose to engage in unacceptable trade practices, thus damaging Australia’s corporate reputation.
Australia is endowed with natural resources, a good business environment, and human resources. Nonetheless, interactions among corporate players seem to be undermining all traditional approaches that the country adopts in such important business issues as training of the workforce, innovation, taxation, and corporate ethics. It is upon administrative leaders to highlight areas of difficulties and to address them through legislation and the creation of the right policies.
The Australian corporate environment gives every company owner an opportunity of investing in the international frontiers. However, there is scanty information on how these business people are enlightened on how to face the diversity of culture that they have to encounter. For this reason, there is a need for policy frameworks to be set up through a joint venture between business owners and administrative leaders for Australian companies to succeed in international business.
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