Search results

This research aims to provide a new perspective on the evolving linkages between LAs and FSAs in the context of the technology-based manufacturing industry. Firm-level competitive strengths in an international context build upon the combination of (largely) exogenous location advantages (LAs) and endogenous firm-specific advantages (FSAs). The authors focus especially on the decay of LAs over time, which has been observed in many highly developed countries during the past decades. The authors show how the strengthening of FSAs can substitute for decaying LAs, thereby safeguarding against the demise of entire industrial regions.

The authors examine the technology-based manufacturing industry in Belgium, building upon an analysis of survey responses by 66 firms including a subgroup of 26 multinational enterprise (MNE) subsidiaries. The professional association representing this industry in Belgium (Agoria) viewed the firms included in the survey as representative for Belgian technology-based manufacturing in terms of the LAs they presently build upon (or location disadvantages they face) and the internal strengths they command relative to (foreign) rivals. The investigation uncovered the decay of critical LAs in Belgium and in parallel, the rise of ‘compensating’ FSAs of Belgian operations relative to foreign firms, including, especially, MNE sister subsidiaries in other countries. The authors also conducted 23 in-depth interviews with senior level managers (CEOs and senior vice presidents) of technology-based firms, including 10 subsidiaries of foreign-owned MNEs, which validated our analysis of the interplay between LAs and FSAs.

The findings reveal that since inception, Belgian manufacturing operations experienced an overall decay in their critical LAs by 23% on average. Despite this, several Belgian subsidiaries of foreign MNEs consider themselves as commanding a resource-base superior to that of the next-best-in-class subsidiaries. Furthermore, when assessing the dynamic interplay between LAs and FSAs, there is some evidence that the decay of LAs fueled the quest for – and firm-level journey toward – stronger FSAs.

The originality of this study is the alternative perspective to the conventionally assumed “positive-positive” relationship between LAs and FSAs. Prior management research has not examined the impact of decaying LAs on new FSA-creation in the realm of technology-based manufacturing.

This study aims to provide a precise understanding of how corporate sustainability information is used in socially responsible investing (SRI). The study is motivated by the lack of a recognised body of knowledge on this issue. This study, therefore, collates and reviews relevant studies (67 studies) to provide guidance to investors interested in SRI and identify a research agenda for academics desiring to contribute to this area.

This study conducts a systemic literature review employing recognised key words and searching the Web of Science. HistCite is utilised to ensure important cited studies are not missed from the collection. The review was conducted from two perspectives: (1) sources of sustainability information and (2) how the information is used in SRI.

The review identifies five major sources of sustainability information, including corporate reports, ESG ratings, industry affiliation, news and private communication with firms. These sources of information play different roles in the cross section of SRI strategies (i.e. negative and positive screening, active ownership and integration). This study provides guidance on how to use this information in SRI and provides recommendations for future research on how analysts interact with the information, how different informational characteristics impact implementation, ways to improve data quality, improvements to analysis methods and where data use needs to be extended into new strategies.

This review contributes to the SRI literature by inventorying studies of an important, yet omitted aspect, namely, sustainability information. This work also enriches the literature on corporate sustainability information by investigating how this information can be used for a specific purpose, namely, SRI. Given the increasing interest in SRI, this review will provide much-needed guidance for a range of practitioners, including investors and regulators.

There is an increasing awareness of environmental, social and governance (ESG) factors in the private equity (PE) environment. While many studies deal with the implementation of ESG in the field of PE, only little is known about how the subcategory venture capital. Therefore, this study aims to answer the questions: What are the motivations for venture capitalists to consider ESG in their investment decisions? How do they implement it and what are the barriers that hinder them?

An inductive study based on semi-structured interviews with 11 investors of venture capital firms (VCs) was conducted to explore the drivers, the barriers and the strategies to implement ESG in the investment decision-making.

All investors perceive that ESG will play a major role in investment decisions in the long term. VCs have seen benefits primarily in terms of performance and commercialization of startups that incorporate the ESG aspect. Limited partners are a driving force for change in this process. No standardized framework and lack of resources for implementation are mainly assumed as barriers.

Politics and industry might support particularly smaller VCs in their implementation by providing standardized frameworks. Owing to increasing awareness and interest of ESG criteria among VCs, startups should also address these criteria.

This paper contributes to the literature by examining how ESG is currently considered in VCs’ decisions and what challenges they face. Therefore, this research contributes to the understanding of the decision-making process among venture capitalists.

Quality Assurance and Improvement Program (QAIP) is defined as “an ongoing and periodic assessment of the entire spectrum of audit and consulting work performed by the internal audit (IA) activity”. QAIP is an important component of internal auditors’ commitment to improve internal audit (IA) quality. The pressure towards improvement is urgent for central banks, in light of the vulnerabilities of their IA functions identified by the International Monetary Fund. The authors analyse the professional standards and the literature on IA and QAIP, aiming to propose general considerations to enhance IA quality and to develop and maintain a QAIP, with reference to central banks, also shedding light on the synergies among IA, QAIP and total quality management (TQM).

This paper reviews the most relevant professional standards in light of the professional and academic literature regarding IA quality, QAIP and their relationship with TQM. The analysis of these sources represents an important step to identify general measures to improve IA quality and develop effective QAIP in central banks.

This analysis shows that it is important to understand the rationale behind the development of an IA function and its theoretical and practical foundation, especially for complex organisations such as central banks. In addition, the authors show that QAIP represents an important tool to exploit the synergies between TQM and IA. These synergies could result in higher levels of quality for the IA function and more effective implementation of TQM within the whole organisation. Lastly, the authors provide practical suggestions to support the implementation of an effective QAIP in central banks and to spread TQM philosophy within the organisation.

The authors contribute to the scant literature on IA quality and QAIP by focusing on central banks and shedding light on the relationship with TQM. Regardless of their importance, these topics have been largely neglected by the extant literature.

The aim of the paper is to investigate the risk-hedging and/or safe haven properties of environmental, social and governance (ESG) index during the COVID-19 in China.

This paper employs the DCC, VCC, CCC as well as Newey–West estimator regression.

The findings provide empirical evidence of the risk hedging properties of ESG indexes as well as of the environmental, social and governance thematic indexes during the outbreak of the COVID-19 crisis. The results also support the superior risk hedging properties of ESG indexes over cryptocurrency. However, the authors do not find any safe haven properties of ESG, Bitcoin, gold and West Texas Intermediate (WTI).

The paper offers therefore, practical policy implications for asset managers, central bankers and investors suggesting the pandemic risk-hedging opportunities of ESG investments.

The study represents one of the first empirical contributions examining safe-haven and hedging properties of ESG indexes compared to traditional and innovative safe haven assets, during the eruption of the COVID-19 crisis.

The growing importance of environmental, social and governance (ESG) issues, as well as related performance planning, measuring and reporting, has spurred interest in linking corporate sustainability and performance management systems (PMSs). In this context, the aim of this paper is to provide companies with a framework for implementing the requirements of the corporate sustainability reporting directive (CSRD) through a sustainability balanced scorecard (SBSC). The framework will further the integration of sustainability with corporate governance.

The framework was grounded in the relevant literature and the CSRD requirements.

This paper provides companies with a novel framework for implementing the requirements of the CSRD through a SBSC. The framework specifies four key steps (i.e. identifying material themes, initial assessment, strategic formulation and action, and sustainability reporting) to integrate sustainability with corporate governance.

The framework supports managers’ decision-making processes in linking sustainability with strategy and providing a basis for integrating sustainability with corporate governance in organizations. The paper provides a way to practically address the CSRD requirements.

This is the first study integrating the emerging CSRD requirements with corporate governance. The paper advances discussion and debate by management scholars on how a SBSC can be practically implemented, providing details on how this may be achieved.

This study examines whether green buildings enjoy more favorable financing terms compared to their non-green counterparts, exploring the presence of a green discount in commercial real estate lending. Despite the extensive research on green premiums on the equity side, lending has received limited attention in the existing literature, even as regulations have increased and ambitious net-zero targets have been set in the banking sector.

In this study, the authors leverage a unique dataset comprising European commercial loan data spanning from 2018 to 2023, with a total loan value exceeding €30 billion. Hedonic regression analysis is used to isolate a potential green discount. Specifically, the authors rely on property assessments conducted by lenders to investigate whether green properties exhibit lower interest rate spreads and higher loan-to-value (LTV) ratios.

The findings reveal the existence of a green discount in European commercial real estate lending, with green buildings enjoying a 5.35% lower contracted loan spread and a 3.92% lower target spread compared to their non-green counterparts. However, this analysis does not indicate any distinct advantage in terms of LTV ratios for green buildings.

This research contributes to a deeper understanding of the interaction between green properties and commercial real estate lending, offering valuable insights for both lenders and investors.

This study, to the best of the authors’ knowledge, represents the first of its kind in a European context and provides empirical evidence for the presence of a green discount.

There is an emerging interest in Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ) inclusion among researchers and practitioners. However, the interplay of macro-, meso- and micro-level factors that influence the behavior of various agencies, systems, structures and practices in different national, cultural and social contexts still needs to be researched. This paper aims to examine how organizations meaningfully engage with the marginalized and underrepresented workforce, especially the LGBTQ community, to promote diversity and inclusion through comprehensive policies and practices, thereby developing a sustainable inclusivity culture.

Adopting a practice theory lens and using a case study design, including multilevel interviews with 28 different stakeholders, this study examines how organizations institutionalize LGBTQ inclusion practices in an emerging market context with a historically low acceptance of the LGBTQ community.

Findings indicate that macro influences, such as regulatory, societal and market pressures and adopting international standards and norms, impact meso-level structures and practices. At the organizational level, leadership evangelism and workforce allyship serve as relational mechanisms for institutionalizing LGBTQ-inclusive practices. Furthermore, collaboration, partnerships and enabling systems and processes provide the structural frameworks within which organizations build an LGBTQ-inclusive culture. Lastly, at the micro level, cisgender allyship and the LGBTQ micro work environments provide the necessary psychological safety to build trust for authentic LGBTQ self-expressions. This study also indicates that organizations evolve their LGBTQ inclusion practices along a trajectory, with multiple external and internal forces that work simultaneously and recursively to shape HRM policies and practices for building an inclusive culture.

This study addresses the significant gaps in diversity and inclusivity research on LGBTQ employees and contributes to the literature in three significant ways. First, this study examines the diversity management mechanisms at the organizational level and explicates their interplay at the micro, meso and macro levels to create congruence, both internally and externally, for engaging with LGBTQ talent. Second, this study adopts a practice theory lens to examine the behavior of various actors, their agencies, the “flow” of underlying and emerging structures and processes, the continuous interplay between structure and action and how they enable inclusive culture for the LGBTQ community as a whole. Last, it addresses the call by diversity researchers for context-specific multilevel research design, including qualitative research, focusing on national, cultural and institutional contexts, where socio-organizational and historical factors and interactions among them shape diversity practices. Much of the literature on LGBTQ inclusion has, thus far, been within the Western context. By examining the emergence of inclusion practices in emerging markets like India, this study contributes to diversity and inclusion research.

Do managers at different hierarchical levels in a firm perceive the effectiveness of a lean program differently, and does it matter for their commitment to it and the resulting lean implementation? This study answers these questions by analyzing the perceptions and behaviors of top and middle managers in a manufacturer deploying a global lean program.

The authors hypothesize that managers at different levels perceive lean programs differently, which, in turn, should affect their commitment to lean and the resulting implementation. To test these relationships empirically, the authors collect survey data from a global manufacturer in the process industry and analyze them using hierarchical linear regression and structural equation modeling.

The findings show that middle managers perceive lean programs as more effective than top managers do. They further show that higher commitment from the top and middle managers to the lean program is positively related to building the organizational infrastructure needed for lean implementation.

This research is conducted in one global company. Although the research setting implicitly controls for many possible confounding variables, such as the product and process complexity or organizational culture, future research can explore and test the findings in other organizational contexts.

This study is the first to empirically study the relations between perceptions of and commitment to lean programs across different hierarchical levels and what it means for program implementation. The paper contributes new plausible explanations for why many lean programs slow down.

The purpose of this paper is to examine the relationship between knowledge-enhancing HR practices, intellectual capital and sustainable competitive advantage in knowledge-based firms.

A quantitative approach was used to conduct the present study. The respondents were sampled from knowledge-based firms in Iran. Overall, 320 managers in 157 firms were selected using convenience sampling. A structural equation model was employed for testing the hypotheses.

The study confirmed that knowledge-enhancing human resource (HR) practices established a very strong connection with intellectual capital. The results further disclosed a positive relationship between intellectual capital and firms' competitive advantage. A mediated relationship between knowledge-enhancing HR practices and firms' competitive advantage through intellectual capital was also affirmed.

The study was conducted in knowledge-based firms in Iran, which limits the generalizability of the research findings. Therefore, future studies should be carried out with samples from other contexts. Moreover, as the study was cross-sectional, the causal relationships could not be inferred directly.

The paper underscored the importance of intellectual capital in improving knowledge-enhancing HR practices and firms' competitive advantage. It suggests to human resource managers to make the organizational arrangements to design knowledge-enhancing HR practices, thereby developing the intellectual capital that brings competitive advantage to knowledge-based firms.

The results of this study contribute to advance research on the intellectual capital literature by trying to explain how intellectual capital as a mediator variable can influence the relationship between knowledge-enhancing HR practices and sustainable competitive advantage.