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1 – 10 of 18Debora Gottardello and Solmaz Filiz Karabag
Using the lens of crisis innovation and strategic alignment, this study explores how a segment of the restaurant sector that may be less agile than others—Michelin-starred…
Abstract
Purpose
Using the lens of crisis innovation and strategic alignment, this study explores how a segment of the restaurant sector that may be less agile than others—Michelin-starred restaurants—perceives and aligns with the challenges brought about by the COVID-19-pandemic.
Design/methodology/approach
The study collected data from 19 Michelin-starred restaurants in Spain using a qualitative interview method. The data were analyzed qualitatively and organized thematically.
Findings
Four key categories of strategic challenges were identified: human resources, uncertainty, control and economic challenges. In response, chefs displayed both behavioral and organizational strategies. Those organizational strategies were new human resource management, reorganization, product and service innovation and marketing. While the new human resource management actions adopted to align with the human resource challenges identified, a misalignment remains between some of the other strategic actions, such as product and service innovation, marketing and economic and uncertainty challenges.
Originality/value
The findings offer new insight into Michelin-starred restaurant chefs' challenges and (mis)alignment strategies, an area that has been understudied in the current literature on innovative responses in the hospitality sector post-pandemic.
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Michael Kuttner, Stefan Mayr, Christine Mitter and Christine Duller
Small- and medium-sized enterprises (SMEs) often lack adequate accounting systems and may even fail because of accounting inefficiencies. Indeed, accounting can mitigate the…
Abstract
Purpose
Small- and medium-sized enterprises (SMEs) often lack adequate accounting systems and may even fail because of accounting inefficiencies. Indeed, accounting can mitigate the course of a crisis and support a troubled SME’s turnaround. Its impact on reorganization success, however, has scarcely been researched so far. Therefore, this paper aims to examine the effects of several accounting parameters, namely, the quality of accounting systems, quality of early warning systems, formal planning, the standard of financial accounting and reorganization planning on the short- and long-term success of court-supervised reorganization.
Design/methodology/approach
The impact of accounting on reorganization success is investigated in a sample of all SME bankruptcy cases with ten or more employees (n = 117) in Upper Austria in 2012 including data for short-term survival (in 2016) and long-term survival (in 2019).
Findings
This study found evidence that the general quality of accounting systems, the quality of early warning systems and written reorganization plans positively influence the outcomes of the analyzed court-supervised reorganizations of SMEs. In particular, the existence of a reorganization plan significantly increases the short- and long-term reorganization success by ensuring the efficient and effective use of resources in the reorganization process.
Practical implications
This study should increase the awareness of SMEs’ owner managers, consultants, creditors and legislators for the importance of accounting in the context of reorganization. The fact that the effect of accounting on reorganization success is less pronounced in the long-term view indicates the necessity of increasing the strategic focus in SMEs’ accounting instruments.
Originality/value
This study provides new evidence on the impact of specific accounting parameters on the short- and long-term success of the court-supervised reorganization of SMEs. Furthermore, this study points out the high relevance of reorganization plans for SMEs.
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This study investigates the relationship between the Chief Executive Officer's (CEO) overconfidence and financial reporting complexity in Iran, a context characterized by weak…
Abstract
Purpose
This study investigates the relationship between the Chief Executive Officer's (CEO) overconfidence and financial reporting complexity in Iran, a context characterized by weak corporate governance and heightened managerial discretion.
Design/methodology/approach
The sample consists of 1,445 firm-year observations from 2010 to 2021. CEO overconfidence (CEOOC) is evaluated using an investment-based index, specifically capital expenditures. Financial reporting complexity (Complexity) is measured through textual features, particularly three readability measures (Fog, SMOG and ARI) extracted from annual financial statements. The ordinary least squares (OLS) regression is employed to test the research hypothesis.
Findings
Results suggest that CEOOC is positively related to Complexity, leading to reduced readability. Additionally, robustness analyses demonstrate that the relationship between CEOOC and Complexity is more distinct and significant for firms with lower profitability than those with higher profitability. This implies that overconfident CEOs in underperforming firms tend to increase complexity. Also, firms with better financial performance present a more positive tone in their annual financial statements, reflecting their superior performance. The findings remain robust to alternative measures of CEOOC and Complexity and are consistent after accounting for endogeneity issues using firm fixed-effects, propensity score matching (PSM), entropy balancing approach and instrumental variables method.
Research limitations/implications
This study adds to the literature by delving into the effect of CEOs' overconfidence on financial reporting complexity, a facet not thoroughly investigated in prior studies. The paper pioneers the use of textual analysis techniques on Persian texts, marking a unique approach in financial reporting and a first for the Persian language. However, due to the inherent challenges of text mining and feature extraction, the results should be approached with caution.
Practical implications
The insights from this study can guide investors in understanding the potential repercussions of CEOOC on financial reporting complexity. This will assist them in making informed investment decisions and monitoring the financial reporting practices of their invested companies. Policymakers and regulators can also reference this research when formulating policies to enhance financial reporting quality and ensure capital market transparency. The innovative application of textual analysis in this study might spur further research in other languages and contexts.
Originality/value
This research stands as the inaugural study to explore the relationship between CEOs' overconfidence and financial reporting complexity in both developed and developing capital markets. It thereby broadens the extant literature to include diverse capital market environments.
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Emilia Filippi, Loris Gaio and Marco Zamarian
This study aims to analyze how the interplay between hard and soft elements of total quality management (TQM) produces the conditions for sustaining success in the quest for…
Abstract
Purpose
This study aims to analyze how the interplay between hard and soft elements of total quality management (TQM) produces the conditions for sustaining success in the quest for quality.
Design/methodology/approach
A qualitative analysis (Gioia method) was carried out on an original dataset collected through both direct and indirect methods (i.e. archival sources, interviews and observations) to generate a new interpretive framework.
Findings
The interpretative framework identifies four categories of elements: trigger elements create the starting conditions for a quality virtuous cycle; benchmarking tools set the standards of performance; improvement tools enable exploration of the space of possible alternative practices and finally, catalytic forces allow the institutionalization of effective techniques discovered in this search process into new standards.
Research limitations/implications
The findings the authors present in this paper are derived by a single case study, limiting the generalizability of our results in other settings.
Practical implications
This study has three implications: first, the design of trigger elements is critical for the success of any TQM initiative; second, the interplay of improvement and benchmarking tools at several levels should be coherent and third, to exploit the potential of TQM, efforts should be devoted to the dissemination of new effective practices by means of catalyzing elements.
Originality/value
The model provides a more specific understanding of the nature and purpose of the hard and soft elements of TQM and the dynamic interaction between the two classes of elements over time.
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This study aims to investigate transition patterns originating from the confiscation of mafia-type firms, examining public administrations and nonprofit organizations' roles.
Abstract
Purpose
This study aims to investigate transition patterns originating from the confiscation of mafia-type firms, examining public administrations and nonprofit organizations' roles.
Design/methodology/approach
This study investigates the case of “Calcestruzzi Ericina Libera,” a firm located in Sicily and confiscated from the Mafia in 1996. The analysis covers an extended period (approximately 25 years).
Findings
The empirical analysis documents the pivotal role of informal networks, comprising public administrations and nonprofit organizations. Confiscation processes are successful if transition management strategies are governed through a network and a collaborative approach is followed after the confiscation to support the firm.
Originality/value
Mafia-type firms have been examined academically from different perspectives, but few studies have focused on the steps taken after their confiscation.
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José Antonio Pedraza-Rodríguez, Martha Yadira García-Briones and César Mora-Márquez
This article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value…
Abstract
Purpose
This article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value in the use of port services affects customer satisfaction and the intermediate links of the influence of trust and commitment on customer loyalty.
Design/methodology/approach
Relying on a survey of 634 Ecuadorian companies with experience in international trade as port users and a theoretical framework well-established in the literature on consumer behavior, the empirical study found evidence of a positive and significant relationship with the knowledge of chain effects.
Findings
The findings confirm the chain effect and reveal ways to maintain an ongoing satisfactory, trust and committed relationship with users, thereby ultimately gaining and maintaining their loyalty. The conclusions suggest how this postulate can help to close the gap referred to the effective management of port services, and point out that port managers should be concerned with a continuous in-depth understanding of the perceived value and its chain effects.
Originality/value
The authors add evidence of the use of the postulate of the chain of effects on these dimensions, whose applicability is very well established, tested and consensual for the doctrine in industrial marketing. In contrast, it is scarcely present in the port relationship with its users.
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Alessandro Gabrielli and Giulio Greco
Drawing on the resource-based view (RBV), this study investigates how tax planning affects the likelihood of financial default in different stages of the corporate life cycle.
Abstract
Purpose
Drawing on the resource-based view (RBV), this study investigates how tax planning affects the likelihood of financial default in different stages of the corporate life cycle.
Design/methodology/approach
Collecting a large sample of US firms between 1989 and 2016, hypotheses are tested using a hazard model. Several robustness and endogeneity checks corroborate the main findings.
Findings
The results show that tax-planning firms are less likely to default in the introduction and decline stages, while they are more likely to default in the growth and maturity stages. The findings suggest that introductory and declining firms use cash resources obtained from tax planning efficiently to meet their needs and acquire other useful resources. In growing and mature firms, tax aggressiveness generates unnecessary slack resources, weakens managerial discipline and increases reputational risks.
Practical implications
The results shed light on the benefits and costs associated with tax planning throughout firms' life cycle, holding great significance for managers, investors, lenders and other stakeholders.
Originality/value
This study contributes to the literature that examines resource management at different life cycle stages by showing that cash resources from tax planning are managed in distinctive ways in each life cycle stage, having a varied impact on the likelihood of default. The authors shed light on underexplored cash resources. Furthermore, this study shows the potential linkages between the agency theory and RBV.
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Amy B.C. Tan, Desirée H. van Dun and Celeste P.M. Wilderom
With the growing need for employees to be innovative, public-sector organizations are investing in employee training. This study aims to examine the effects of a combined Lean Six…
Abstract
Purpose
With the growing need for employees to be innovative, public-sector organizations are investing in employee training. This study aims to examine the effects of a combined Lean Six Sigma and innovation training, using action learning, on public-sector employees’ creative role identity and innovative work behavior.
Design/methodology/approach
The authors studied a public service agency in Singapore in which a five-day Lean Innovation Training was implemented, using a combination of Lean Six Sigma and Creative Problem-Solving tools, with a simulation on day one and subsequent team-based project coaching, spread over six months. The authors administered pre- and postintervention surveys among all the employees, and initiated group interviews and observations before, during and after the intervention.
Findings
Creative role identity and innovative work behavior had significantly improved six months after the intervention, enabled through senior management’s transformational leadership. The training induced managers to role-model innovative work behaviors while cocreating, with their employees, a renewal of their agency’s core processes. The three completed improvement projects contributed to an innovative work culture and reduced service turnaround time.
Originality/value
Starting with a role-playing simulation on the first day, during which leaders and followers swapped roles, the action-learning type training taught all the organizational members to use various Lean Six Sigma and Creative Problem-Solving tools. This nimble Lean Innovation Training, and subsequent team-based project coaching, exemplifies how advancing the staff’s creative role identity can have a positive impact.
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Democratic countries all over the world are embarking on initiatives to empower citizens through public participation. One of the tools used by countries to promote public…
Abstract
Purpose
Democratic countries all over the world are embarking on initiatives to empower citizens through public participation. One of the tools used by countries to promote public participation is the enactment and implementation of freedom of information (FOI) legislation, as it is the case with South Africa and Zimbabwe. Despite having legislation reaffirming the need for people’s right to know, practices in South Africa and Zimbabwe indicate the opposite. The purpose of this study is to explore FOI models in South Africa and Zimbabwe, with a view to recommend ways in which people’s right to know can be promoted.
Design/methodology/approach
This qualitative study used interviews to collect the data from 12 FOI experts in South Africa and Zimbabwe, who were selected through the snowball sampling technique. Data collected through interviews were supplemented by the data collected through document analysis.
Findings
The study concluded that the key role players need to make efforts to ensure that the right to know, which is associated with FOI, is being realised in both countries. FOI legislation, in both countries, is imprecise and needs to be revised to ensure effective implementation.
Originality/value
The study demonstrates that FOI is a necessary tool for people to be involved in decision-making in government. People’s rights to know can be achieved by successfully implementing FOI legislation.
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Tomasz Mucha, Sijia Ma and Kaveh Abhari
Recent advancements in Artificial Intelligence (AI) and, at its core, Machine Learning (ML) offer opportunities for organizations to develop new or enhance existing capabilities…
Abstract
Purpose
Recent advancements in Artificial Intelligence (AI) and, at its core, Machine Learning (ML) offer opportunities for organizations to develop new or enhance existing capabilities. Despite the endless possibilities, organizations face operational challenges in harvesting the value of ML-based capabilities (MLbC), and current research has yet to explicate these challenges and theorize their remedies. To bridge the gap, this study explored the current practices to propose a systematic way of orchestrating MLbC development, which is an extension of ongoing digitalization of organizations.
Design/methodology/approach
Data were collected from Finland's Artificial Intelligence Accelerator (FAIA) and complemented by follow-up interviews with experts outside FAIA in Europe, China and the United States over four years. Data were analyzed through open coding, thematic analysis and cross-comparison to develop a comprehensive understanding of the MLbC development process.
Findings
The analysis identified the main components of MLbC development, its three phases (development, release and operation) and two major MLbC development challenges: Temporal Complexity and Context Sensitivity. The study then introduced Fostering Temporal Congruence and Cultivating Organizational Meta-learning as strategic practices addressing these challenges.
Originality/value
This study offers a better theoretical explanation for the MLbC development process beyond MLOps (Machine Learning Operations) and its hindrances. It also proposes a practical way to align ML-based applications with business needs while accounting for their structural limitations. Beyond the MLbC context, this study offers a strategic framework that can be adapted for different cases of digital transformation that include automation and augmentation of work.
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