Introducing remote printing into the publishing industry of a small, remote economy: the case of New Zealand By Timothy Fabling A thesis submitted to the Victoria University of Wellington in partial fulfilment of the requirements for the degree of Masters of Commerce Victoria University of Wellington 2017 i Table of Contents Table of Contents ................................................................................................................ ii Acknowledgements .............................................................................................................. v Abstract .............................................................................................................................. vi Chapter 1. Introduction ...................................................................................................... 1 1.1. BACKGROUND ............................................................................................................ 1 1.2. MOTIVATION .............................................................................................................. 3 1.3. PROBLEM STATEMENT AND RESEARCH QUESTIONS .................................................. 4 1.4. THESIS OUTLINE ........................................................................................................ 6 Chapter 2. Literature Review ............................................................................................. 7 2.1. REINVENTING BUSINESS MODELS ............................................................................... 7 2.1.1. External forces..................................................................................................... 8 2.1.2. Internal Forces .................................................................................................. 10 2.3. DIGITAL PRINTING ................................................................................................... 12 2.3.1. Print-On-Demand (POD)................................................................................... 12 2.4. The book publishing supply chain ......................................................................... 15 2.4.1. Printing-On-Demand and Just-In-Time .............................................................. 20 2.5. SUMMARY ................................................................................................................ 26 Chapter 3. Research Methods........................................................................................... 28 3.1. RESEARCH FOCUS AND OBJECTIVES ........................................................................ 28 3.2. RESEARCH DESIGN ................................................................................................... 29 3.3. DATA COLLECTION .................................................................................................. 30 3.3.1. Sampling of Participants .................................................................................... 30 3.3.2. Data collection and data analysis ...................................................................... 31 3.3.3. Summary of Participants .................................................................................... 32 Chapter 4. Criteria and Model Development for the Introduction of Remote Printing in New Zealand ...................................................................................................................... 34 4.1. CONSIDERING VARIOUS MODELS FOR REMOTE PRINTING INTEGRATION IN NEW ZEALAND ........................................................................................................................ 34 4.1.1. Model 1. Publishing ........................................................................................... 36 4.1.2. Model 2. Distributors ......................................................................................... 37 ii 4.1.3. Model 3. Wholesalers......................................................................................... 38 4.1.4. Model 4. Brick-and-Mortar Booksellers ............................................................. 39 4.1.5. Model 5. Booksellers Association of New Zealand ............................................. 40 4.1.6. Model 5a. Booksellers Association of New Zealand ........................................... 41 4.2. CRITERIA TO CONSIDER FOR REMOTE PRINTING INTEGRATION IN NEW ZEALAND 42 4.3. THE ESTIMATE COSTS OF REMOTE PRINTING TECHNOLOGY .................................. 46 4.4. INTEGRATING REMOTE PRINTING INTO THE NEW ZEALAND PUBLISHING INDUSTRY 47 Chapter 5. The Introduction of Remote Printing Technology into the New Zealand Book Industry .................................................................................................................... 53 5.1. REMOTE PRINTING TECHNOLOGY ........................................................................... 53 5.1.1. How Remote Printing Would Operate ................................................................ 53 5.2. THE PERCEIVED BENEFITS OF REMOTE PRINTING IN A NEW ZEALAND CONTEXT .. 56 5.3. PROPOSED MODELS FOR INTRODUCING REMOTE PRINTING TECHNOLOGY ............ 59 5.3.1. Model Summary ................................................................................................. 61 5.3.2. Re-evaluating the Models ................................................................................... 61 5.4. IMPLICATIONS .......................................................................................................... 62 5.5. FUTURE BUSINESS AVENUES .................................................................................... 66 5.6. SUMMARY ................................................................................................................ 67 Chapter 6. The New Zealand Book Supply Chain ........................................................... 69 6.1. SUPPLY CHAIN INEFFICIENCIES ............................................................................... 69 6.1.1. The Revolution of Digital Publishing ................................................................. 71 6.2. IMPROVING ON SUPPLY CHAIN INEFFICIENCIES ...................................................... 72 Chapter 7. Discussion and Conclusion ............................................................................. 73 7.1. DISCUSSION .............................................................................................................. 73 7.1.1. Impacts of the Digital Supply Chain ................................................................... 73 7.1.2. Integrating Remote Printing into New Zealand – Business Models ..................... 75 7.1.3. Expected Effects of Introducing Remote Printing into New Zealand ................... 77 7.2. CONCLUSIONS FROM THE STUDY ............................................................................. 79 7.3. IMPLICATIONS .......................................................................................................... 83 7.3.1. Theoretical Implications .................................................................................... 83 7.4. LIMITATIONS AND FURTHER RESEARCH .................................................................. 84 References.......................................................................................................................... 86 iii Appendices ........................................................................................................................ 97 APPENDIX 1. PAPERBACK PRINTING OPTIONS AND COSTS ............................................. 97 APPENDIX 2. HARDCOVER PRINTING OPTIONS AND COSTS ............................................ 98 APPENDIX 3. INTERVIEW GUIDES ................................................................................... 99 APPENDIX 4. PARTICIPANT INFORMATION SHEET ........................................................ 102 APPENDIX 5. PARTICIPANT CONSENT FORM ................................................................. 104 iv Acknowledgements First of all, I would like to thank Bronwyn Howell, Victoria University of Wellington, for her insightful and constructive comments and also valuable contribution in developing this project. Next I would like to gratefully acknowledge the assistance of the respondents in the collection of data. I would also like to thank Lincoln Gould for his willingness and assistance throughout this project. Also I should thank my employer John Vallely for his assistance and insight through the development to completion of this project. It was greatly appreciated. v Abstract This research investigates the expected effects on developed business models of introducing remote printing technology into the New Zealand book publishing industry. Remote printing technology will both address and improve on the constraints of geographical proximity and market size, enabling the New Zealand book publishing industry to collectively grow and experience future prosperity. Aspects of technological innovation and consumer behaviour are examined to explore issues surrounding geographic proximity and supply chain inefficiencies. Criteria are developed using Just-In-Time (JIT) theory and Supply Chain Management (SCM) to evaluate where remote printing technology might best be integrated in the New Zealand book publishing industry’s supply chain. The mutual effects between remote printing technology adoption and the expected effects on business models are evaluated, identifying which model is expected to provide the most