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This study introduces a new research perspective to the investigation of factors affecting management's attention to the rendering of their organisation's managerial and public accountabilities. It draws on management studies of the fit between organisational strategy-types and capabilities and extends this literature to a new organisational context of government-owned business enterprises (GBEs) that act as fully competitive profit-making enterprises, but are made strongly accountable to the government minister, the parliament and the public. Sets of capabilities-strategy alignments are modelled, including prospecting GBEs with technology strengths, defender GBEs with market-linking capabilities and analyser GBEs with a balance of capabilities. These sets are then assessed in terms of their consequences for the emphasis given by management to processes and systems for discharging the GBE's accountability outcomes. Data is collected through a questionnaire to senior managers of 141 GBEs in Australia. The findings are mostly consistent with prior studies conducted in private sector companies, even though strategy-capabilities alignments are related to accountability rather than financial performance. The findings provide insights to GBEs' management and relevant government ministers concerning the continuing need to appropriately align strategies and capabilities of GBEs and the consequences of such alignment for the rendering of accountability.

Governments in Australia have long wrestled with the problem of managing the performance of government business enterprises (GBEs). In December 1996 the Finance Minister commissioned Richard Humphry to provide an 'internal review' of Commonwealth GBEs. While Humphry acknowledged the reality of many GBEs remaining in public hands for 'the foreseeable future', his report encouraged GBEs to be run more closely along private sector lines. According to Wettenhall, the long‐term ramifications for Australia are significant, and the unique role, qualities and responsibilities of public ownership are in danger of being sidelined.

On cover: Task force report on revolving funds and business enterprises of the Government, Appendix J. An appendix to a report by the Commission on Organization of the Executive Branch of the Government with title: Reorganization of Federal business enterprises; a report to the Congress, March 1949. ; Mode of access: Internet.