Search results
1 – 10 of over 1000Amine Belhadi, Sachin Kamble, Nachiappan Subramanian, Rajesh Kumar Singh and Mani Venkatesh
The agricultural supply chain is susceptible to disruptive geopolitical events. Therefore, agri-food firms must devise robust resilience strategies to hasten recovery and mitigate…
Abstract
Purpose
The agricultural supply chain is susceptible to disruptive geopolitical events. Therefore, agri-food firms must devise robust resilience strategies to hasten recovery and mitigate global food security effects. Hence, the central aim of this paper is to investigate how supply chains could leverage digital technologies to design resilience strategies to manage uncertainty stemming from the external environment disrupted by a geopolitical event. The context of the study is the African agri-food supply chain during the Russian invasion of Ukraine.
Design/methodology/approach
The authors employ strategic contingency and dynamic capabilities theory arguments to explore the scenario and conditions under which African agri-food firms could leverage digital technologies to formulate contingency strategies and devise mitigation countermeasures. Then, the authors used a multi-case-study analysis of 14 African firms of different sizes and tiers within three main agri-food sectors (i.e. livestock farming, food-crop and fisheries-aquaculture) to explore, interpret and present data and their findings.
Findings
Downstream firms (wholesalers and retailers) of the African agri-food supply chain are found to extensively use digital seizing and transforming capabilities to formulate worst-case assumptions amid geopolitical disruption, followed by proactive mitigation actions. These capabilities are mainly supported by advanced technologies such as blockchain and additive manufacturing. On the other hand, smaller upstream partners (SMEs, cooperatives and smallholders) are found to leverage less advanced technologies, such as mobile apps and cloud-based data analytics, to develop sensing capabilities necessary to formulate a “wait-and-see” strategy, allowing them to reduce perceptions of heightened supply chain uncertainty and take mainly reactive mitigation strategies. Finally, the authors integrate their findings into a conceptual framework that advances the research agenda on managing supply chain uncertainty in vulnerable areas.
Originality/value
This study is the first that sought to understand the contextual conditions (supply chain characteristics and firm characteristics) under which companies in the African agri-food supply chain could leverage digital technologies to manage uncertainty. The study advances contingency and dynamic capability theories by providing a new way of interacting in one specific context. In practice, this study assists managers in developing suitable strategies to manage uncertainty during geopolitical disruptions.
Details
Keywords
Zouhair Boumlik, Badia Oulhadj and Olivier Colot
This paper aims to analyze the effect of family control and influence dimension of the socioemotional wealth (SEW) on capital structure of large listed firms in the North African…
Abstract
Purpose
This paper aims to analyze the effect of family control and influence dimension of the socioemotional wealth (SEW) on capital structure of large listed firms in the North African region.
Design/methodology/approach
The study uses panel data of the top 98 largest listed firms in the North African capital markets over the period from 2018 to 2022. The analysis is conducted employing random effects models.
Findings
Findings suggest that large listed firms in North African region rely on more use of equity rather than debt financing. Further, results show that family control and influence dimension of the SEW, has no significant impact on the capital structure of North African large listed firms. This implies that the financing behavior of large firms listed in the North African countries is driven by financial and rationale factors rather than non-economic considerations. Indeed, findings support assumptions of the pecking order theory.
Originality/value
This transnational study provides new insights into relevancy of socioemotional theory in explaining capital structure decisions within large family businesses in emerging markets. Findings have the potential to enhance analysts', investors' and practitioners' understanding of financing decisions by large listed firms in this region. This, in turn, can aid in conceiving adapted financing solutions.
Details
Keywords
Umar Habibu Umar, Jamilu Sani Shawai, Anthony Kolade Adesugba and Abubakar Isa Jibril
This study aims to evaluate how audit committee (AC) characteristics affect the performance of banks in Africa.
Abstract
Purpose
This study aims to evaluate how audit committee (AC) characteristics affect the performance of banks in Africa.
Design/methodology/approach
The authors manually generated unbalanced panel data from 78 commercial banks operating in twelve (12) countries whose annual reports were published on the website of African Financials between 2010 and 2020.
Findings
The results indicate that AC size has an insignificant positive association with bank performance (return on equity and Tobin’s Q). AC independence has a significant positive association with bank performance. However, AC gender diversity has a significant negative association with bank performance. Besides, AC financial expertise has a significant positive and negative association with return on equity and Tobin’s Q, respectively.
Research limitations/implications
The study considered only 78 banks that operate in twelve (12) African countries. Besides, the authors consider only four (4) AC attributes.
Practical implications
The findings suggest the need to maintain a smaller AC, appoint more independent members to AC, reduce the number of women appointed to AC and ensure most AC members have financial expertise. These measures could improve bank performance in Africa.
Originality/value
Unlike previous African studies that are mostly restricted to a country level, the study examined how AC attributes influence the performance of banks that operate in Africa.
Details
Keywords
The purpose of this study was to examine the moderating role of institutional ownership on the relationship between board gender diversity and earnings management (EM) among…
Abstract
Purpose
The purpose of this study was to examine the moderating role of institutional ownership on the relationship between board gender diversity and earnings management (EM) among listed firms in East African Community (EAC) partner states.
Design/methodology/approach
The study used a sample of 71 firms listed in the EAC partner states over 2011–2020. Data were handpicked from the individual firm's audited annual financial reports. Based on the results of the Hausman test, the study used the results of the fixed-effect regression model to test the hypotheses. To test the robustness of the results, the study employed an alternative measure of EM and two additional econometric techniques, including the pooled ordinary least squares (OLS) and the system generalized method of moments (GMM).
Findings
The empirical findings revealed that female directors improve the board's effectiveness in monitoring managerial roles. Specifically, the results showed a significantly negative relationship between the proportion of women in the corporate board and EM (as measured by discretionary accruals (DAs)). The findings further revealed an inverse relationship between the proportion of institutional ownership and EM. Finally, the results further demonstrated that institutional ownership enhances the role of board gender diversity in mitigating EM among listed firms in the EAC.
Practical implications
The findings of this study may be useful to managers, investors and regulators in assessing the role of institutional ownership and women's participation on corporate boards as a strategy for alleviating unethical manipulation of earnings.
Social implications
The findings of this study contribute to the growing concern on gender inequality, especially the marginalization of women from the paid labor force and decision-making. The findings highlight the importance of having more women in the corporate board since this may help in mitigating corporate fraud. Similarly, the findings highlight the importance of institutional ownership as a corporate governance (CG) tool.
Originality/value
Previous studies have reported mixed empirical results on whether board gender diversity mitigates EM. To the best of the author's knowledge, this is the first paper to fill the existing gap by exploring whether institutional ownership moderates the relationship between board gender diversity and EM among listed firms in the EAC.
Details
Keywords
Olayinka Adedayo Erin and Paul Olojede
The Agenda 2030 have drawn a lot of interest in academic studies. This necessitates accounting research on nonfinancial reporting and sustainable development goals (SDG…
Abstract
Purpose
The Agenda 2030 have drawn a lot of interest in academic studies. This necessitates accounting research on nonfinancial reporting and sustainable development goals (SDG) disclosure in an under-investigated context. The purpose of this study is to examine the contribution of nonfinancial reporting practices to SDG disclosure by 120 companies from 12 African nations for the years 2016 to 2020.
Design/methodology/approach
The study uses a content analysis to gauge how much information are disclosed on SDG by the selected firms. The authors carried out content analysis using the global reporting initiative frameworks to determine the level of SDG disclosure across the companies by examining the selected nonfinancial reports.
Findings
Sustainability reports account for 50% of such SDG disclosure making it the highest. This is followed by corporate social responsibility report which accounts for 23%, while environmental reports account for 20% and Chairman’s statement accounts for 7%. The result is expected since corporate sustainability report has been the major channel for disclosing activities relating to social and governance issues in recent times.
Practical implications
The results of this study demand that corporate entities in Africa take responsibility for their actions and exert significant effort to achieve the SDG. While the government has the main responsibility, corporate entities must support the SDG to be realized.
Originality/value
To the best of the authors’ knowledge, this study is one of the few studies that examines nonfinancial reporting practices with a focus on SDG disclosure. In addition, this study offers novel insight into how accounting research contributes to nonfinancial reporting practices and SDG disclosure.
Details
Keywords
Lian Zhang, Qingtao Wang, Qiyuan Zhang and Kevin Zheng Zhou
Although the prior literature has identified the relevance of dealer participation for multinational enterprises (MNEs), it is unclear whether such participation could also be an…
Abstract
Purpose
Although the prior literature has identified the relevance of dealer participation for multinational enterprises (MNEs), it is unclear whether such participation could also be an important means for local dealers to learn from MNEs. By adopting local firms’ viewpoint, our study draws on organizational learning theory to examine how local dealers benefit from their participation with foreign suppliers in Africa.
Design/methodology/approach
The empirical setting is a combinative dataset of secondary data and primary survey of 164 small- and medium-sized local dealers with nine subsidiaries of a Chinese motorcycle company in six countries of Sub-Saharan Africa.
Findings
This research shows that dealer participation is positively associated with dealer performance, and this positive effect is stronger when local dealers operate in regions with low government corruption and high government support. However, the positive relationship is weaker when local dealers use the local tongue extensively but becomes stronger when their foreign suppliers have a high dealer coverage.
Originality/value
By taking a local-participant perspective, our study extends the participation literature to show how firms from a resource-constrained region may benefit from their proactive participation with foreign counterparts. Additionally, we identify the boundary conditions of institutional factors and strategic choices of local dealers and foreign suppliers, providing a nuanced understanding of firm behaviors in complex and uncertain markets.
Details
Keywords
Joanna F. Norman, Leah Aiken and Tomika W. Greer
The purpose of this research was to empirically examine the career transitions of mid-career African American women leaving traditional careers for entrepreneurship. The authors…
Abstract
Purpose
The purpose of this research was to empirically examine the career transitions of mid-career African American women leaving traditional careers for entrepreneurship. The authors illustrate how transition theory and effectuation principles ameliorate an African American woman's transition to entrepreneurship.
Design/methodology/approach
The authors conducted semi-structured interviews with nine African American woman entrepreneurs. The data collected were evaluated through the lens of transition theory and effectuation theory.
Findings
The study results show that despite being the chief officer, many African American women still face inequalities when negotiating business deals, interacting with partners and when seeking capital for their business. Effectuation theory partially supports an African American woman's career transition to entrepreneurship, but the theory does not fully address the unique experiences of this demographic.
Research limitations/implications
The results of this study reveal that effectuation principles do not fully explain the entrepreneurial career transition experiences of African American women. Theory development and extensions of existing theories should consider the potential discriminatory practices that limit financial resources and strategic partnerships for African American women entrepreneurs. The authors also advocate for consideration of identities, particularly related to gender and race, as factors that contribute to entrepreneurial experiences.
Practical implications
The study findings support the notion that each woman's situation will be different and unique, requiring aspiring African American woman entrepreneurs to assess their individual situation. Consistent access to minority-specific programs can help aspiring African American women entrepreneurs visualize her new identity and provide the support needed to enhance her career transition. There is no one-size-fits-all solution, so each woman will need to craft her own individualized plan.
Social implications
Findings from this study solidify the role of African American women entrepreneurs as business leaders with influence and direct impact on the US economy. Their success enables African American women to contribute to more inclusive societies through their service to diverse members of society. In addition, their attainment of success serves as a testimony to aspiring African American women that entrepreneurial success is achievable, encouraging more diversity in entrepreneurship.
Originality/value
Few entrepreneurial studies exist on both women and racial minorities, resulting in a paucity of strategies to support African American women throughout their entrepreneurial journey. The results of this study revealed barriers which require specific strategies to address discriminatory lending practices and acceptance when forging new business relationships.
Details
Keywords
Clara Lina Dziuron and Tilo F. Halaszovich
Corporate social responsibility (CSR) remains a prevalent topic for businesses worldwide, especially for those operating in developing countries. The attention on small and…
Abstract
Purpose
Corporate social responsibility (CSR) remains a prevalent topic for businesses worldwide, especially for those operating in developing countries. The attention on small and medium-sized enterprises' (SMEs') CSR engagement in developing countries has been neglected, although SMEs play a vital role in socio-economic development in African countries like Kenya. This paper aims to conceptualize the relationship between the SME manager's values, ethics, emotional commitment to long-term socio-economic development and the firm's CSR practices.
Design/methodology/approach
The authors conducted seven semi-structured interviews with Kenyan and German SMEs located in Nairobi. A deductive-inductive analysis approach was chosen, confirming previous findings and contributing new ideas to the International Business (IB) literature.
Findings
This paper develops a concept linking the values and beliefs of the SME manager with the firm's CSR practices in developing countries via the manager's emotional commitment to local long-term socio-economic development. The Kenyan managers tend to show a higher degree of emotional commitment, which the authors explain by two drivers: (1) philanthropic, self-motivated driver and (2) expectation-based, environment-motivated driver. The authors' findings add to the literature on SMEs' CSR engagement in developing countries by looking at the individual level of analysis.
Originality/value
This paper develops a concept linking the values and beliefs of the SME manager with the firm's CSR practices in developing countries.
Details
Keywords
Derrick Anquanah Cudjoe, Yumei He and Hanhui Hu
This study examines the impact of China's trade and foreign direct investment (FDI) on Africa's global value chain (GVC) participation and economic upgrading.
Abstract
Purpose
This study examines the impact of China's trade and foreign direct investment (FDI) on Africa's global value chain (GVC) participation and economic upgrading.
Design/methodology/approach
The study covered 48 African countries, cutting across the western, eastern, central, southern and northern subregions to cover the heterogeneity of the continent. The study adopted feasible generalized least squares panel VAR-Granger causality Wald test and system generalized methods of moments techniques for estimation.
Findings
Overall, China's FDI to Africa and US-Africa trade have a linear relationship with Africa's GVC involvement and economic upgrading. The findings suggest that although China-Africa trade has a positive impact on GVC engagement and upgrading, the marginal effect decreases in the face of US-Africa and EU-Africa trade.
Originality/value
This study provides new evidence on the impact of China's FDI and trade on African economies' GVC participation and economic upgrading. To the best of the authors’ knowledge, this is the first study to empirically explore the effects of China's FDI and trade on Africa's GVC integration and economic upgrading as well as from the perspectives of backward and forward GVC participation. Furthermore, the study empirically examines whether the effects of Africa's economic cooperation with China relative to its GVC engagement differ from those of Europe (EU) and the US via a comparative regression.
Details
Keywords
Awaisu Adamu Salihi, Haslindar Ibrahim and Dayana Mastura Baharudin
The study aims to examine the association between the sustainable development triangle and real earnings management (REM) and the moderating role of business innovation.
Abstract
Purpose
The study aims to examine the association between the sustainable development triangle and real earnings management (REM) and the moderating role of business innovation.
Design/methodology/approach
The study was based on the quadruple bottom line approach to measuring corporate sustainable development. For the REM, Roychowdhury model is used to identify the practices. The study used panel data using 740 firm-year observations from non-financial listed companies in the Nigerian market from 2011 to 2020, collected from the Nigeria Stock Exchange.
Findings
The study finds a negative influence on the association of economic, environmental, social and governance (EESG) on REM in related party transactions. Thus, by regressing the three different components of REM separately, then EESG will have strongest impact as well. The study suggests a bidirectional association between EESG and REM. Furthermore, the study finds that business innovation strengthens the negative association between EESG and REM. The study concludes that sustainable companies in the Nigerian public market are less liable to practice REM.
Research limitations/implications
The study examines only non-financial listed companies quoted on the Nigeria Stock Exchange, which restricts the generalization of the findings.
Practical implications
The findings of the study should be of immense value to the investors who need comprehensive appraisal of earnings quality to enhance sustainable development strategies for sustainable business innovation among Nigeria firms. Thus, sustainability and innovation can serve as the principles for supporting developing countries impacted by the COVID-19 pandemic and supporting a sustainable development.
Social implications
The study will be of immense value to policymakers, regulators and standard setters who demand for facts insightful of business practices and reporting behaviors for sustainable development.
Originality/value
Existing studies have mainly focused on triple bottom line. This study adds to the existing body of literature on the Quadruple bottom line in an African market. More so, the study investigates the impact of business innovation on the relationship between economic, environmental, social and governance and real earnings management, which was rarely investigated in the prior literature.
Details