Survey background
The Business Practices Survey (BPS) was sponsored by Ministry of Economic Development, Ministry of Research Science and Technology and Statistics New Zealand.
The primary objective of the BPS was to gain an understanding of the wider state of business and management practice in New Zealand firms, including:
(1) Commitment to the use of information technology.
(2) Adoption of management practices by New Zealand businesses in the areas of:
- Leadership and planning
- Customer management
- Supplier management
- Quality management
- Information management and benchmarking
- Market focus
(3) Commitment to capability improvement and innovation.
Data collection
The BPS was a postal survey. The questionnaire was posted out on 29 June 2001. Most of the questions were of a qualitative nature relating to the current state of business practice, information technology and innovation. Financial information was also requested, including the value of operating income, value of operating expenditure, and value of sales generated through the Internet (if applicable). Respondents were asked to provide a balance date for the financial accounts used to answer financial information questions.
Survey population
The target population for the BPS was all private sector enterprises in New Zealand with six or more full-time equivalent employees (FTE), $30,000 or more in GST turnover, and an industrial and institutional classification that fell within the following ranges:
Australian New Zealand Standard Industrial Classification (ANZSIC) codes:
A, B, C, E, F, G, H, I, J, K, L, N, O, P
and had one of the following New Zealand Standard Institutional Sector Classification (NZSIC) codes:
1111, 1121, 1211, 2211, 2221, 2291, 2311, 2411.
The following ANZSIC codes were excluded from the survey: D (Electricity, Gas and Water), M (Government Administration and Defence), Q (Personal and Other Services).
The population source for the survey was the Business Frame maintained by Statistics New Zealand. The Business Frame is sustained principally from Inland Revenue Department (IRD) records.
The selection and collection unit for the BPS is the enterprise unit on Statistics New Zealand’s Business Frame.
Sample design
The sample design was a two-level stratification according to ANZSIC industry and size (in terms of FTE engaged). This information was obtained using enterprise ANZSIC industry and FTE information from Statistics New Zealand's Business Frame.
The first level of stratification was into 31 ANZSIC industry groupings, using a mixture of one-and-two digit ANZSIC codes and a subset of four-digit ANZSIC codes. Within each of the ANZSIC groups there is further stratification by size, using the FTE information. The three FTE groupings are:
- 6-19.5 FTEs
- 20-49.5 FTEs
- 50 or more FTEs.
Measurement errors
The BPS results are subject to measurement errors. These include both sample errors and non-sample errors. These measurement errors should be considered when analysing the results from the survey.
Non-sample errors
Non-sampling errors include mistakes by respondents when completing questionnaires, variation in the respondents' interpretation of the questions asked, and errors made during the processing of the data. In addition, the survey applies imputation methodologies to cope with non-respondents. Statistics New Zealand adopts procedures to minimise these types of error, but they may still occur and are not quantifiable.
Sample errors
The sample was designed to give statistics for the categorical questions with a maximum level of sample error of 15 percent (at the 95 percent confidence interval limit). This was applied at the level of two-digit ANZSIC by FTE size group.
This means, for example, that there is a 95 percent likelihood that the true proportion of the answers to a categorical question, within two-digit ANZSIC by FTE size group, lies within 15 percent of the published estimate.
This also resulted in expected (but not assured) maximum sample errors for the following levels of:
- 3.2 percent for categorical results for the total population
- Up to 4.2 percent for categorical results by FTE size group
- Up to 12.6 percent for categorical results by 1-digit ANZSIC.
Response rate
The target overall response rate for the survey was 75 percent overall with at least 70 percent in each stratum. The survey achieved an overall response rate of 81.6 percent with a response rate of at least 70 percent in each stratum. The achieved sample size was 2,756 enterprises.
Imputation methodology
The following gives an outline of the imputation methodology used in the Business Practices Survey.
Unit non-response
Unit (or complete) non-response occurs where units in the sample do not return the questionnaire. The contribution of the remaining units in the sample will be adjusted to account for the unit non-response (no imputation will occur for the units which do not return the questionnaire).
Item non-response
Item (or partial) non-response is where units return the questionnaire but some questions are not answered. If a returned questionnaire contained a significant proportion of unanswered questions then that unit will be considered a non-response. The significant proportion was determined by the number of unanswered business practice index questions.
Mean imputation for dollar value responses
Mean imputation was used to impute dollar values for the questions on the level of operating income and expenditure; and the level of Internet sales. The imputation of the Internet sales question was conditional on the responses to other questions on the use of information technology.
Nearest neighbour imputation for responses to categorical questions
Responses were imputed for a subset of categorical questions using nearest neighbour imputation. The nearest neighbour method involves finding a donor unit with the most similar set of responses to the unit that needs answers imputed. The donor unit supplies responses for all variables requiring a response. Should the donor unit have not responded to any of the variables requiring a response, then the next best donor unit is used to supply the information. This is continued until all the variables have a response.
Definitions
ANZSIC: Australian and New Zealand Standard Industrial Classification system.
NZSIC: New Zealand Standard Industrial Classification system.
Business Frame: A register of all businesses operating in New Zealand. The population of the BPS is drawn from the Business Frame.
Enterprise: A business entity operating in New Zealand, for example the owner of a chain of retail stores.
Copyright
Information obtained from Statistics New Zealand may be freely used, reproduced, or quoted unless otherwise specified. In all cases Statistics New Zealand must be acknowledged as the source.
Liability
While care has been used in processing, analysing and extracting information, Statistics New Zealand gives no warranty that the information supplied is free from error. Statistics New Zealand shall not be liable for any loss suffered through the use, directly or indirectly, of any information, product or service.
Timing
Timed statistical releases are delivered using postal and electronic services provided by third parties. Delivery of these releases may be delayed by circumstances outside the control of Statistics New Zealand. Statistics New Zealand accepts no responsibility for any such delays.