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1 – 10 of 29Salwa Bin Idrees, Syed Musa Alhabshi, Ashurov Sharofiddin and Anwar Hasan Abdullah Othman
The purpose of this study is to frame the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions as the main actors…
Abstract
Purpose
The purpose of this study is to frame the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions as the main actors in the organisational field. More precisely, Libyan commercial banks have been identified as empirical evidence, to identify constraints of the institutional environment governing the behaviour and decision-making of commercial banks, when adopting Islamic financial transactions.
Design/methodology/approach
A questionnaire has been designed for 14 Libyan commercial banks which is distributed to the Board of Directors, managers, directors of departments, and personnel. The exploratory factor analysis (EFA) and the measurement model by using the first-order and second-order confirmatory factor analysis (CFA) have been applied as essential steps to embody the conceptual framework and test the research hypotheses.
Findings
The results of the EFA indicated sufficient correlation among the dimensions of the external environment. The CFA supported this study’s hypotheses. The modelling showed that the cultural-cognitive, normative and regulative dimensions are institutional constraints impeding Libyan commercial banks’ adoption of Islamic financial transactions. Interestingly, the findings of the CFA align with the EFA findings in supporting the conceptual framework of the research. They portrayed that the cultural-cognitive dimension has been identified by explicit and implicit cognition.
Originality/value
This study systematically embodies the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions, as the main factors in the organisational field to be conceptually rich lenses to investigate social considerations to reinforce institutional thought broadly. The results of this study were consistent with extant Islamic financial literature, reflecting symmetry and similarity across commercial banks, particularly at the first stage of adopting Islamic financial transactions.
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Anil K. Narayan and Marianne Oru
This study aims to investigate accounting practices within a non-Western (indigenous) context and provide insights into alternative accounting approaches and perspectives.
Abstract
Purpose
This study aims to investigate accounting practices within a non-Western (indigenous) context and provide insights into alternative accounting approaches and perspectives.
Design/methodology/approach
This study adopts an interpretive research approach to gain an in-depth insight into the functioning of accounting in Solomon Islands’ unique cultural and social-political context. In-depth interviews were conducted to gain insights into the perceptions and meanings held by participants concerning Western accounting practices and their limitations.
Findings
The findings provide unique insights into different interpretations of accounting and accountability through two distinct cultural lenses – Western and non-Western. The complimentary and rival explanations on what accounting and accountability are doing and what accounting and accountability should be doing will help close the gap in knowledge and contribute to shaping a better world for indigenous people.
Practical implications
Implications for practice involve fostering collaborative efforts among individuals, communities, leaders and institutions to harness cultural strengths through accounting. Additionally, continuous capacity building and education are essential to develop accounting skills, enhance financial literacy, promote professional expertise and build a pool of skilled accountants with local knowledge to support indigenous communities.
Originality/value
This study is original and provides novel insights supporting the need for accounting to recognise the importance of indigenous perspectives, adapt to cultural sensitivity and integrate cultural norms and values into accounting practices to make an impact and achieve greater social and moral accountability.
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Ihor Rudko, Aysan Bashirpour Bonab, Maria Fedele and Anna Vittoria Formisano
This study, a theoretical article, aims to introduce new institutionalism as a framework through which business and management researchers can explore the significance of…
Abstract
Purpose
This study, a theoretical article, aims to introduce new institutionalism as a framework through which business and management researchers can explore the significance of artificial intelligence (AI) in organizations. Although the new institutional theory is a fully established research program, the neo-institutional literature on AI is almost non-existent. There is, therefore, a need to develop a deeper understanding of AI as both the product of institutional forces and as an institutional force in its own right.
Design/methodology/approach
The authors follow the top-down approach. Accordingly, the authors first briefly describe the new institutionalism, trace its historical development and introduce its fundamental concepts: institutional legitimacy, environment and isomorphism. Then, the authors use those as the basis for the queries to perform a scoping review on the institutional role of AI in organizations.
Findings
The findings reveal that a comprehensive theory on AI is largely absent from business and management literature. The new institutionalism is only one of many possible theoretical perspectives (both contextually novel and insightful) from which researchers can study AI in organizational settings.
Originality/value
The authors use the insights from new institutionalism to illustrate how a particular social theory can fit into the larger theoretical framework for AI in organizations. The authors also formulate four broad research questions to guide researchers interested in studying the institutional significance of AI. Finally, the authors include a section providing concrete examples of how to study AI-related institutional dynamics in business and management.
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Thai Pham and Farkhondeh Hassandoust
Information security (InfoSec) policy violations are of great concern to all organisations worldwide, especially in the financial industry. Although the importance of InfoSec…
Abstract
Purpose
Information security (InfoSec) policy violations are of great concern to all organisations worldwide, especially in the financial industry. Although the importance of InfoSec policy has been highlighted for many decades, InfoSec breaches still occur due to a low level of employee compliance and a lack of engagement and competence in high-level management. However, previous studies have primarily investigated the behavioural aspects of InfoSec policy compliance at the individual level rather than the managerial factors involved in constructing InfoSec policy and developing its effectiveness. Thus, drawing on neo-institutional theory and a transformational leadership framework, this research investigated the influence of external mechanisms and transformational leadership on InfoSec policy effectiveness.
Design/methodology/approach
The research model was implemented using field survey data from professional managers in the financial sector.
Findings
The results reported that neo-institutional mechanisms and transformational leadership shape InfoSec policy effectiveness in an organisation.
Originality/value
This study broadens current InfoSec policy research from an individual level to a managerial perspective and enhances the existing literature on neo-institutional and transformational leadership in the context of InfoSec. It highlights the need to evaluate InfoSec policy based on external factors and to support transformational leadership styles that promote InfoSec policy enforcement and effectiveness.
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Atika Ahmad Kemal and Mahmood Hussain Shah
While the potential for digital innovation (DI) to transform organizational practices is widely acknowledged in the information systems (IS) literature, there is very limited…
Abstract
Purpose
While the potential for digital innovation (DI) to transform organizational practices is widely acknowledged in the information systems (IS) literature, there is very limited understanding on the socio-political nature of institutional interactions that determine DI and affect organizational practices in social cash organizations. Drawing on the neo-institutionalist vision, the purpose of the study is to examine the unique set of institutional exchanges that influence the transition to digital social cash payments that give rise to new institutional arrangements in social cash organizations.
Design/methodology/approach
The paper draws on an in-depth case study of a government social cash organization in Pakistan. Qualitative data were collected using 30 semi-structured interviews from key organizational members and stakeholders.
Findings
The results suggest that DI is determined by the novel intersections between the coercive (techno-economic, regulatory), normative (socio-organizational), mimetic (international) and covert power (political) forces. Hence, DI is not a technologically deterministic output, but rather a complex socio-political process enacted through dialogue, negotiation and conflict between institutional actors. Technology is socially embedded through the process of institutionalization that is coupled by the deinstitutionalization of established organizational practices for progressive transformation.
Research limitations/implications
The research has implications for government social cash organizations especially in the Global South. Empirically, the authors gained rare access to, and support from a government-backed social cash organization in Pakistan (an understudied country in the Global South), which made the data and the consequent analyses even invaluable. This made the empirical contribution within this geographical setting even more worthy, since this case study has received little attention from indigenous scholars in the past. The empirical findings showcased a unique set of contextual factors that were subject to BISP and interpreted through an account of socio-cultural sensitivities.
Practical implications
The paper provides practical implications for policymakers and practitioners, emphasizing the need to address institutional challenges, including covert power, during the implementation of digitalization projects in the public sector. The paper has certain potential for inspiring future e-government related (or public sector focused) studies. The paper may guide both private and government policy-makers and practitioners in presenting how to overcome certain institutional challenges while planning and implementing large scale multi-stakeholder digitization projects in similar country contexts. So while there is scope of linking the digitization of public sector organizations to anti-corruption measures in other Global South countries, the paper may not be that straightforward with the private sector involvement.
Social implications
The paper offers rich social insights on the institutional interchanges that occur between the social actors for the innovation of technology. Especially, the paper highlights the social-embeddedness nature of technology that underpins the institutionalization of new organizational practices. These have implications on how DI is viewed as a socio-political process of change.
Originality/value
This study contributes to neo-institutional theory by theorizing covert power as a political force that complements the neo-institutional framework. This force is subtle but also resistive for some political actors as the force shifts the equilibrium of power between different institutional actors. Furthermore, the paper presents the social and practical implications that guide policymakers and practitioners by taking into consideration the unique institutional challenges, such as covert power, while implementing large scale digital projects in the social cash sector.
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Joseph Akadeagre Agana, Stephen Zamore and Daniel Domeher
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical…
Abstract
Purpose
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical research. Specifically, this study examines the main theories in IFRS adoption research (i.e. adoption, compliance and effects).
Design/methodology/approach
The sample contains 67 empirical papers that have used theories and was collected from Web of Science database. This study uses a systematic review technique.
Findings
Generally, the review shows the prevalent and pervasive use of institutional theories of isomorphism across all the three areas of IFRS adoption. Particularly, regarding IFRS adoption stream, this study finds the institutional theory as a dominant theory used to explain IFRS diffusion around the globe. For IFRS compliance, this study finds that the agency and the capital need theories are widely used. For IFRS adoption effects stream, this study finds a few studies using the contingency and neo-institutional theories. Overall, the review provides theoretical lens for IFRS adoption, IFRS compliance and IFRS adoption effects.
Originality/value
Given the lack of a well-defined set of theories in the domain of accounting, the findings provide further guidance on theory building within the field. Further, accounting regulators, academics and practitioners may benefit from the findings when explaining various changes in the world of accounting.
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Stephen J. Perkins and Susan Shortland
The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation…
Abstract
Purpose
The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.
Design/methodology/approach
This qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.
Findings
Further regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.
Practical implications
Reviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.
Originality/value
The authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.
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Emmanuel A. Morrison, Douglas A. Adu and Yongsheng Guo
This paper provides the latest systematic literature review (SLR) of prevailing studies on the interrelationship among executive compensation, financial performance and…
Abstract
Purpose
This paper provides the latest systematic literature review (SLR) of prevailing studies on the interrelationship among executive compensation, financial performance and sustainable business practices. This SLR is done in three parts: (1) examine the theories employed by previous studies; (2) identify the unique variables employed by researchers in analysing this interrelationship and (3) explore potential opportunities for further study in the field.
Design/methodology/approach
This study conducted an SLR analysing studies from the Web of science, Scopus and EBSCO in over 20 countries from 2009 to 2022 published in several top-ranked journals. We utilised various search strings using the key phrases “executive compensation”, “CEO Pay”, “financial performance” and “sustainable business practices”. The initial sample of 27,210 was filtered with our meticulous inclusion and exclusion criteria to produce a list of 161 studies.
Findings
Our findings are as follows: first, most studies encompassing this subject area lack multi-theoretical perspectives with agency theory being the most dominant theoretical viewpoint; second, we observed the use of monotonous quantitative research methods, with studies heavily lacking qualitative and mixed-method research approaches; finally, there is a palpable gap in cross-country studies.
Research limitations/implications
There are a few limitations that must be acknowledged. First, the inclusion criteria ensured that only articles published in the CABS journal ranking of three star and above. Thus, this review may not be a precise reflection of the EC, FP and SBPs literature scope. The inclusion criteria also limit our review to only accounting, finance, management and business-related studies about the topic. Therefore, future studies could explore studies ranked three star and below and from other subject areas.
Originality/value
This study contributes to the existing literature by conducting a comprehensive SLR that examines both the theoretical underpinnings and empirical evidence on this topic. It builds upon previous research and extends our understanding of the interrelationship among executive compensation, financial performance and sustainable business practices.
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Joshua Ofoeda, Richard Boateng and John Effah
Digital platforms increase their function and scope by leveraging boundary resources and complementary add-on products from third-party developers to interact with external…
Abstract
Purpose
Digital platforms increase their function and scope by leveraging boundary resources and complementary add-on products from third-party developers to interact with external entities and producers. Application Programming Interfaces (APIs) are essential boundary resources developers use to connect applications, systems and platforms. This notwithstanding, previous API studies tend to focus more on the technical dimensions, with little on the social and cultural contexts underpinning API innovations. This study relies on the new (neo) institutional theory (focusing on regulative, normative and cultural-cognitive pillars) as an analytical lens to understand the institutional forces that affect API integration among digital firms.
Design/methodology/approach
The study adopts a qualitative case study methodology and relies on phone calls and a semi-structured in-depth interview approach of a Ghanaian digital music platform to uncover the institutional forces affecting API integration.
Findings
The findings reveal that regulative institutions such as excessive tax regimes mostly constrained API development and integration initiatives. However, other regulative institutions like the government digitalization agenda enabled API integration. Normative institutions, such as the growing use of e-payment options, enabled API integration in digital music platforms. Cultural-cognitive institutions like employee ego constrained the API integration process in music digital platforms.
Originality/value
This study primarily contributes to deepening understanding of the relevant literature by exploring the institutional forces that affect API integration among digital firms in a developing economy. The study also uncovered a new form of an institution known as motivational institution as an enabler for API development and integration in digital music platforms.
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Diego Rorato Fogaça, Mercedes Grijalvo, Alberto Oliveros Iglesias and Mario Sacomano Neto
This paper aims to propose and assess a framework to analyse the institutionalization of Industry 4.0 (I4.0) through a framing analysis.
Abstract
Purpose
This paper aims to propose and assess a framework to analyse the institutionalization of Industry 4.0 (I4.0) through a framing analysis.
Design/methodology/approach
The framework was developed by combining the institutional approach with orders of worth, drawing insights from a comprehensive literature review. To assess it, the authors conducted a qualitative analysis of annual reports from companies with the largest market capitalization over a six-year period and interviewed union representatives in Spain and Sweden.
Findings
The framework comprises five dimensions (industrial, market, civic, green and connectionist). The empirical results reveal that companies consistently frame I4.0 with an emphasis on industrial and market perspectives. In contrast, unions place a stronger emphasis on civic issues, with Spanish unions holding a more negative view of I4.0, expressing concerns about working conditions and unemployment.
Research limitations/implications
The proposed framework brings interesting insights into the dispute over the meaning of I4.0. Although this empirical study was limited to companies and unions in Sweden and Spain, the framework can be expanded for broader investigations, involving additional stakeholders in one or more countries. The discussion outlined using the varieties of capitalism approach is relevant for understanding the connection between the meso and macro levels of this phenomenon.
Practical implications
In navigating the landscape of I4.0, managers should remain flexible, and ready to tailor their strategies and operations to align with the distinct demands and expectations of stakeholders and their specific institutional environments. Similarly, policymakers are urged to acknowledge these contextual intricacies when crafting strategies for implementing I4.0 initiatives across national settings.
Social implications
Based on the empirical findings, this study underscores the importance of fostering social dialogue and involving stakeholders in the implementation of I4.0. Policymakers and other stakeholders should take proactive measures, tailored to each country’s context, to mitigate potential adverse effects on labour and workers.
Originality/value
The study presents a novel framework that facilitates the systematic comparison of I4.0 framing by different actors. This contribution is significant because the way actors frame I4.0 affects its interpretation and implementation. Additionally, the aggregate analysis of results enables cross-country comparisons, enhancing our understanding of regional disparities.
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