RIS ID
72931
Abstract
The aim of this paper is to critically examine the effect of the MetaCapitalism strategy changes on Australian healthcare sector companies during the period 1989-2007, and to establish whether there is any relationship between those changes and any adverse corporate consequences, such as: corporate collapses, acquisitions, mergers, delisting from the ASX 200. The main rationale behind the MetaCapitalism strategy, is that by aggressively reducing physical assets, outsourcing production and downsizing of the workforce, then firms will become at the same time efficient and profitable through participating in this highly competitive technological era. However, this uninhibited pursuit of efficiency by corporations in the health-care sector during the 1989-2007 period proved to be detrimental to them with colossal declines in share prices, corporate collapses, negative net income results and overall excessive instability. The findings of our study were conclusive about how the aggressive application of MetaCapitalism change strategies within the Australian Healthcare sector had impacted negatively on their share price performance and operating revenue. One significant finding was that all the Australian healthcare corporations that failed were most aggressive in implementing the MetaCapitalism strategy of excessively reducing their physical assets in favour of outsourcing.
Publication Details
Pupovac, S. & Mickhail, G. M. (2013). Metacapitalism vs healthcare. International Journal of Management Research and Business Strategy, 2 (1), 1-16.