Free Standard AU & NZ Shipping For All Book Orders Over $80!
Register      Login
The Rangeland Journal The Rangeland Journal Society
Journal of the Australian Rangeland Society
RESEARCH ARTICLE

Linking desert businesses: the impetus, the practicalities, the emerging pay-offs, and building on the experiences

Joy Taylor A C , Ifor Ffowcs-Williams B and Mike Crowe A
+ Author Affiliations
- Author Affiliations

A Desert Knowledge Australia, PO Box 2114, Alice Springs, NT 0871, Australia.

B Cluster Navigators Ltd, 22 Examiner Street, Nelson 7010, New Zealand.

C Corresponding author. Email: joy.taylor@desertknowledge.com.au

The Rangeland Journal 30(1) 187-195 https://doi.org/10.1071/RJ07045
Submitted: 22 June 2007  Accepted: 12 December 2007   Published: 1 April 2008

Abstract

Small businesses in desert Australia are disadvantaged by remoteness from suppliers and markets, workforce problems, and limited opportunities to explore alliances across the desert. This paper outlines an initiative to support and encourage capacity building in remote desert centres and to create networks to overcome the isolation experienced by desert-based small and medium-sized enterprises. Building on existing local initiatives and seizing the opportunities offered by a range of new information and communication technologies (ICT), businesses are linked together to explore the benefits of networking, to identify possible synergies and opportunities for collaboration, to gain practical ICT and networking skills and confidence in the processes, and create real outcomes for their business.

The initiative began with a pilot project focused on training and mentoring business owners and managers in business clustering. In addition to education and training outcomes, this pilot produced more outcomes for the participating businesses than had been anticipated. In the final year $7 million of new business was reported. Many businesses embraced this way of working together to improve competitiveness; as a consequence the networks have continued to operate beyond the life of the pilot project. Several case studies are presented to demonstrate how ICT has been used for the transfer of ideas and knowledge, for collaboration, and to open new commercial opportunities for businesses that arose as a direct result of their participation.

Proof of concept has been demonstrated in the value to businesses of this approach to long-distance inter-business cooperation and networking. The paper outlines key findings from the pilot project, including the needs for an appropriate pace of development, mix of technologies used, nurturing of business champions, flexibility, local facilitation, and real business outcomes, among others. These findings are being used to inform future developments in long-distance, cross-border business networking internationally and an expanded project involving nine regions of desert Australia.

Additional keywords: business clusters, commercial network, cross-border business networks, information technology, remote region, small and medium enterprise.


Acknowledgements

We are grateful to the following organisations that contributed either cash or in-kind resources to the Linked Business Networks Project: AusIndustry, Broken Hill Chamber of Commerce Inc., Central Australian Tourism Industry Association, Charles Darwin University, Cluster Navigators, Desert Knowledge Australia, Desert Knowledge Cooperative Research Centre, Flinders Ranges Tourism Alliance, Goldfields Esperance Area Consultative Committee, Goldfields Esperance Development Commission, Government of South Australia Regional Ministerial Office, Northern Regional Development Board, Northern Territory Department of Business Industry & Resource Development, Outback Area Consultative Committee, Outback at Isa, Queensland Department of State Development and Innovation, Telstra Country Wide, Whyalla Economic Development Board.


References


Bergman E. M. , den Hertog P. , Charles D. R. , and Remoe S. (2001). ‘Innovative Clusters: Drivers of National Innovation Systems.’ (OECD: Paris.)

Brown D., Taylor J., Bell M. (2008) The demography of desert Australia. The Rangeland Journal 30, 29–43.
Crossref |
(accessed 20 November 2007).

Cooke P. (2000). ‘The Associational Economy: Firms, Regions, and Innovation.’ (Oxford University Press: Oxford.)

Cortwright J. (2006). ‘Making Sense of Clusters: Regional Competitiveness and Economic Development.’ (Brookings Institution: Washington, DC.)

Crowe M. (2005). Desert Knowledge Australia Linked Business Networks Project (DKA LBNP) Small Business Enterprise Culture Program Stage 1 Report, AusIndustry, Canberra, ACT. Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=national_linked (accessed 20 November 2007).

Crowe M. (2007a). Clever use of technology to build desert networks. In: ‘National Reconciliation Forum, Kalgoorlie, Western Australia’. 13–14 March 2007, Presentations CD-ROM. (National Reconciliation Forum: Kalgoorlie.)

Crowe M. (2007b). Linking Australian outback businesses: the impetus, the practicalities, the emerging pay-offs and the learnings. In: ‘Rural Clusters 2007 Conference’. Akureyri, Iceland, 11–13 June 2007. Available at: www.ruralclusters2007.com/presentations/Mike_Crowe.pdf (accessed 20 November 2007).

Desert Knowledge Australia (2005). ‘Our Outback – Partnerships and Pathways to Success in Tourism, Making Our Outback Stronger Through Tourism.’ (Desert Knowledge Australia: Alice Springs, NT.) Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=national_outback (accessed 20 November 2007).

Desert Knowledge Australia (2006). Desert Knowledge Australia Linked Business Networks Project (DKA LBNP) Small Business Enterprise Culture Program Final Report, AusIndustry, Canberra, ACT. Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=bn_pilot (accessed 20 November 2007).

DTI (2001). ‘Business Clusters in the UK – a First Assessment.’ (Department of Trade and Industry: London.)

DTI (2002). ‘A Practical Guide to Cluster Development.’ (Department of Trade and Industry: London.)

EC (1997). ‘The Globalising Learning Economy: Implications for Innovation Policy.’ (European Commission: Brussels.)

Ffowcs-Williams I. (2004) Cluster development: red lights and green lights. Sustaining Regions 4, 26–32. (accessed 20 November 2007).

Mazzarol T. (2003) Strategic Networks and Alliances with the Western Australian ICT Sector. Centre for Entrepreneurial Management and Innovation Graduate School of Management, University of Western Australia, Perth, WA. Available at: www.waia.asn.au/presentations/WAICTNetworksReport.pdf (accessed 13 December 2007).

McKenzie F. M. H. (2007). Attracting and retaining skilled and professional staff in remote locations. Desert Knowledge Cooperative Research Centre Report No. 21, Desert Knowledge Cooperative Research Centre, Alice Springs.

OECD (2007). ‘Competitive Regional Clusters, National Policy Approaches.’ (OECD: Paris.)

Porter M. (1998). ‘On Competition.’ (Harvard Business School Press: Boston.)

Rosenfeld S. A. (1995). ‘Regional Business Clusters and Public Policy.’ (The Aspen Institute, Rural Economic Policy Program, Best Practice Series, Industrial-Strength Strategies: Washington.)

Rosenfeld S. (2007). ‘Cluster Based Strategies for Growing State Economies.’ (National Governors Association: Washington.)

Saxenian A. (1990) Regional networks and the resurgence of Silicon Valley. California Management Review , 89–112. (accessed 13 December 2007).

Taylor J. (2006b). Desert Knowledge Australia Linked Business Networks Project. In: ‘Proceedings of Lake Eyre Basin Conference’. Renmark, SA, 6–8 September 2006. (CD-ROM) Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=bn_intro (accessed 13 December 2007).

Taylor J. (2006c). Linking businesses across the Desert. In: ‘Desert Knowledge Symposium and Business Showcase’. Alice Springs, NT, 1–3 November 2006. Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=bn_intro (accessed 13 December 2007).

Taylor J. , and Crowe M. (2007). Linking outback businesses. In: ‘Sustainable Economic Growth for Regional Australia (SEGRA) Conference’. Wollongong, NSW, 18–19 September 2007. Available at: www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=bn_intro (accessed 13 December 2007).

UK Institute of Development Studies (2007). Institute of Development Studies, Brighton. Available at: www.ids.ac.uk/ (accessed 28 October 2007).

UNIDO (2007). United Nations Industrial Development Organisation, Vienna. Available at: www.unido.org/ (accessed 20 November 2007).