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1 – 10 of 34Nicolas Chevrollier, Jianhong Zhang, Thijs van Leeuwen and André Nijhof
Despite the scholarly attention for the integration of sustainability within business strategy and processes, little is known about how strategic orientations of companies…
Abstract
Purpose
Despite the scholarly attention for the integration of sustainability within business strategy and processes, little is known about how strategic orientations of companies influence this integration. Drawing on stewardship theory, this paper aims to analyse the influence of strategic orientation of companies on their environmental, social and corporate governance (ESG) performance and the moderating effect of three different political models of economy (Rhine, British and American).
Design/methodology/approach
This paper creates a measurement for strategic orientations by using a coding scheme with a five-category evaluation matrix. The main empirical analysis is done by a fixed-effect model with a panel data set covering 179 publicly traded companies over the 2009-2016 period.
Findings
The conclusions of this paper present that – consistent over time – a stronger orientation on stewardship positively associates with higher ESG performance. Additionally, the political model of economy significantly alters the relationship indicating the effect of strategic orientation on ESG performance. The relationship is significantly stronger in the Rhine model and significantly weaker in the British model, when both compared to the American model.
Originality/value
The implications of this paper are vital to understanding corporate strategic orientation and its relationship to actual corporate behaviour and long-term performance. Implementing the elements of focus, motivation, commitment, support and communication linked to a stewardship orientation is fundamental to achieve higher levels of sustainability performance.
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Danielle A.M. Melis and André Nijhof
This paper aims to clarify the relationship between the voting and engagement behaviour of institutional investors, i.e. institutional investor stewardship behaviour, and the…
Abstract
Purpose
This paper aims to clarify the relationship between the voting and engagement behaviour of institutional investors, i.e. institutional investor stewardship behaviour, and the enactment of stewardship by corporate boards. In doing so, this paper contributes to the evaluation of contemporary corporate governance systems and provides recommendations for the redesign of these systems.
Design/methodology/approach
This paper is based on a qualitative exploratory descriptive research study into assumed, prescribed and the actual behaviour of institutional investors. Their behaviour is explored through a survey and in-depth interviews with global institutional investors.
Findings
The prescription of institutional investor stewardship behaviour and the exploration of actual behaviour from an investors’ perspective led to the conclusion that assumed institutional investor stewardship exists variously as either “in form” (i.e. measured by compliance to the relevant corporate governance code) or “in substance” (i.e. the actual behaviour from the investors and investee companies’ perspective). The results suggest that that institutional investors’ actual stewardship behaviour as global investors requires a nuanced conclusion about the existence of institutional investor stewardship.
Research limitations/implications
Although the number of semi-structured interviews with institutional investors was limited to just 14, these interviewees represent the majority share in terms of market capitalisation of Dutch listed companies. Additional research could clarify the perspective of other investors, such as pension funds and private investors.
Practical implications
The outcome of this research can serve as input for corporate governance reforms in the preambles of governance codes and the prescribed principles and best practice provisions of corporate governance and stewardship codes. This research identifies opportunities for further academic research to enrich the understanding of the role of institutional investors in enacting corporate stewardship.
Social implications
This paper contributes to furthering the understanding of the mechanisms by which institutional investors, through their behaviour, contribute to enacting stewardship through their corporate boards. This is an important part of the corporate social responsibility of institutional investors. It also triggers a dialogue about the social and environmental impacts of stock listed companies.
Originality/value
This paper fulfils an identified need to develop knowledge about new paradigms and offers a more integrated approach to corporate governance reforms in terms of the role of institutional shareholders in the promotion of good corporate governance.
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Andre Nijhof, Jaap Schaveling and Nicolette Zalesky
Organizational change involves optimizing a firm’s sustainability performance. The purpose of this paper is to explore how strategic orientations concerning the interface between…
Abstract
Purpose
Organizational change involves optimizing a firm’s sustainability performance. The purpose of this paper is to explore how strategic orientations concerning the interface between business and society influence organizations’ sustainability performance. To explain how different strategic orientations – especially stewardship and instrumental orientations – impact sustainability performance, dynamic managerial capability theory is explored.
Design/methodology/approach
Ours is an inductive, qualitative study based on the template analysis of interviews conducted among sustainability managers from stock-listed multinational corporations headquartered in the Eurozone.
Findings
Corporations with a stewardship orientation develop different dynamic managerial capabilities underlying sustainability performance than corporations that apply a more instrumental orientation. Results also show an “in-between” position: an equidistant orientation.
Research limitations/implications
This study proves the emergence of different dynamic managerial capabilities that depend on companies’ strategic orientation, but follow-up research based on appreciative inquiry is needed to investigate the development of these capabilities over time.
Practical implications
For achieving a higher level of sustainability performance, a stewardship orientation offers a stronger foundation than an instrumental orientation. Also companies with an equidistant orientation have a better sustainability performance than companies with an instrumental orientation, but based on a more central corporate level. The strategic orientation must be grounded in the development of fitting dynamic managerial capabilities that include an emphasis on shared cognition of long-term objectives, inclusion of stakeholders and setting objectives. Also strong internal and external ties, leadership of the CEO, educational background and how to deal with lack of knowledge are important aspects of managerial social and human capital.
Social implications
Due to its focus on the sustainability performance of companies and the identification of the supporting dynamic managerial capabilities, this paper is socially highly relevant.
Originality/value
Previous research has focused on strategic orientation, but little to no research has investigated how various strategic orientations toward the interface between business and society impact sustainability performance or what role dynamic managerial capabilities might play in the related change process.
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Diane Zandee, Ambika Zutshi, Andrew Creed and André Nijhof
The paper aims to provide managerial recommendations for implementing circular economy (CE) principles in both organizational and interorganizational contexts, including when…
Abstract
Purpose
The paper aims to provide managerial recommendations for implementing circular economy (CE) principles in both organizational and interorganizational contexts, including when using digital tools, such as building information modeling (BIM) and blockchain. Drawn from the construction sector in the Netherlands, the findings can be generalized to similar sectors where a company may receive multiple inputs as part of its supply chain augmented by digital technologies.
Design/methodology/approach
Design addresses the research question: what are the strategic and tactical approaches of organizations on the CE pathway? Sub-questions target initiatives pursued by participants, and look toward information, roles and functions for supporting the CE process. Applying a multiple-case study approach (21 semi-structured interviews with 29 participants) the paper explores strategic initiatives of construction companies implementing CE pathways. The strength of the research design comes from facilitation of rich and deep qualitative insights from Netherlands-based managers embedded within global supply chains contributing to conceptual mapping. A limitation is data from one country (though representing both national and multinational companies).
Findings
Interviewed managers share guidance for production-related construction companies anchored in materials and product design. Recommendations include to (1) develop both internally and externally the awareness of CE amongst leaders, (2) communicate with internal and external stakeholders for shared vision across the supply chain, (3) start with pilot projects, and (4) ensure product data-integration for CE business models through computer modeling and blockchain for decision-making processes, choices of materials, business model coordination and product (re)design. Continuous learning about CE roles and responsibilities amidst organizational process restructuring is required throughout linear to CE transitions. Extending the time for the CE principles evaluation process would allow for reconsideration of decisions made for CE implemented projects.
Originality/value
A novel CE gameplan with a hurdles and recommendations checklist provides an operational interface with decision making points between internal factors for the host organization and external supply chain partners.
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Sultan Mohammad Akterujjaman, Liesbeth Blaak, Md. Idris Ali and Andre Nijhof
This study aims to investigate the relationship between organizational citizenship behavior for the environment (OCBE) of managers and the constructs of the theory of planned…
Abstract
Purpose
This study aims to investigate the relationship between organizational citizenship behavior for the environment (OCBE) of managers and the constructs of the theory of planned behavior: perceived behavioral control (PBC) and attitude toward the environment. The current study also aims to explore the magnitude of this relationship with subjective norms as a moderating variable.
Design/methodology/approach
Data were sourced from a total number of 140 respondents (managers) from different firms in The Netherlands through an online questionnaire by using a mixture of structured, semi-structured and open-ended questions. Having used the correlation test, the study first conducts the exploratory factor analysis and then the reliability test. Finally, it estimates the coefficients by applying the hierarchical regression model to find the relationship between dependent and explanatory variables.
Findings
Diagnostic test results revealed that data are highly reliable. The coefficient results indicate that PBC and environmental attitude have positive and significant relationships with OCBE. Additionally, subjective norms have a significant and positive effect on strengthening the relationship between PBC and OCBE; however, it has no impact on the relationship between environmental attitude and OCBE.
Research limitations/implications
This study has some caveats. First, the results presented in the research are derived from a single moment in time. The second limitation has to do with the insignificant results for the construct of environmental attitude. Third, this study comprises a data set obtained from different companies in The Netherlands.
Practical implications
Organizations that want to increase their environmental performance could look at the PBC, environmental attitude and subjective norms of the managers in regard to OCBE.
Originality/value
The results of the study contribute to the understanding of the way PBC, environmental attitude and subjective norms positively affect OCBE. Future research should investigate organizational citizenship within business firms by considering corporate social responsibility as a key variable.
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Andre Nijhof, Marjolein Bakker and Henk Kievit
This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions…
Abstract
Purpose
This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions. It documents the encroachment field, analyses the practice of ten companies and proposes and defines the additional concept of transparency encroachment.
Design/methodology/approach
Semi-structured interviews were conducted with representatives of companies with an increase in customers and market share due to their sustainability value proposition. These were supplemented with secondary data, like documented interviews, sustainability reports and reports on market development. The interview transcripts and secondary data notes were coded using template analysis.
Findings
As the literature on encroachment assumes that new value propositions take away market share from incumbents due to advantages for customers, it is questionable whether it can explain how value propositions with advantages for society as a whole can encroach markets. The results of this study show that the dominant forms of encroachment in the current literature – high-end encroachment, low-end encroachment and business model encroachment – can only partly explain encroachment through sustainability value propositions. An additional encroachment form is identified: transparency encroachment.
Research limitations/implications
This research adds greater clarity to what companies do when they encroach markets with sustainability value propositions. Furthermore, the pattern of transparency encroachment is discussed to define the common aspects of this concept and to argue why these aspects are needed for encroachment. It implies that marketing activities should start from the perception that customers are allies – and not kings – in the development toward higher levels of sustainability.
Practical implications
The paper offers practical implications insofar as it deconstructs three aspects of transparency encroachment that are enacted by companies. Customer awareness, unique experience and customer contribution are all needed to enact transparency encroachment. It is argued that other companies introducing sustainability value propositions to encroach markets should find their own application of these three aspects to create the potential for successful encroachment.
Social implications
Because of the focus on sustainability aspects of value propositions, this study generates knowledge about the marketing and encroachment of products with a relatively positive impact on society. Adoption of the identified concept of transparency encroachment contributes to sustainable development.
Originality/value
To date, there has been very little marketing research that explores the role of sustainability value propositions in the encroachment of markets. Nonetheless, nowadays customers seem to look beyond their own benefits and are increasingly demanding a new approach that builds upon the sustainability aspects of products. This research adds greater clarity to encroachment through sustainability value propositions.
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André Nijhof, Gilbert Lenssen, Ludwig Roger and Henk Kievit
André Nijhof and Victor Paashuis
Giving guidance to organisations by exploring the role of employees in innovating for new sustainable business.
Abstract
Purpose
Giving guidance to organisations by exploring the role of employees in innovating for new sustainable business.
Design/Methodology/Approach
This chapter builds upon two methods. Based on a literature study, with a focus on the work of Jan Kees Looise on social innovation, the main principles for the role of employees in next level innovation cycles are explored. Second, these principles are illustrated and refined in a case example.
Findings
New sustainable business can be stimulated by a combination of principles that strengthen the purpose, autonomy and mastery of employees.
Research Limitations/Implications
The case is stemming from a high-tech sector. Future research should explore whether the principles can be applied to other sectors.
Practical Implications
Managers have a big influence on the innovative potential of an organisation. This influence can obstruct or stimulate next practice innovation platforms. The principles that are highlighted in this chapter give guidance to managers how they can create an enabling environment for innovation.
Social Implications
A main point in the innovation approach described in this chapter is based on giving freedom to employees. This triggers an external focus to really understand the developments in society and how an organisation can improve their added value by acting upon this.
Originality/Value
The combination of innovation, customer value and sustainability is a rather new area in both literature and management practice.
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Anuschka Bakker, Jaap Schaveling and André Nijhof
This paper aims to determine the influence of governance mechanisms on sustainability and outreach of microfinance institutions (MFIs). Corporate governance has been identified as…
Abstract
Purpose
This paper aims to determine the influence of governance mechanisms on sustainability and outreach of microfinance institutions (MFIs). Corporate governance has been identified as a key bottleneck in strengthening MFIs’ sustainability (financial performance) and increasing their outreach (social impact).
Design/methodology/approach
First, a literature study to give insight in the microfinance sector is provided. Subsequently, the data research has been performed based on the statistics of one of the funds of a Dutch independent investment manager, which is focused on responsible investments in developing countries. Hierarchical multiple regression analyses were conducted to examine the association between governance mechanisms and the respective dependent variables.
Findings
The results show that boards of a MFI with insiders (for example, employees) are a significant predictor of sustainability. Regulation impacts sustainability significantly in a negative way. Overall, the study shows that only a limited number of variables influence the sustainability and outreach of an MFI.
Research limitations/implications
The limitation of the studied investment fund is that it invests in expanding and mature MFI’s. So the results of this research can only be generalized to expanding and mature MFI’s.
Practical implications
The governance mechanisms that are recommended in the industry guidelines and which are studied here are often not relevant in respect to sustainability and outreach of MFIs. The approach to microfinance governance should be broadened by focusing more on stakeholders and the decision making process in an MFI.
Social implications
Good governance is key for the microfinance institutions and even more complicated than for regular companies that do not have a double bottom line (sustainability and outreach). to be successful in the future, and for clients to reach the best end result, it is essential that the governance mechanisms that influence the bottom line are determined.
Originality/value
Not much research has been done with respect to the governance mechanisms, which have impact on the sustainability and outreach of MFIs.
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