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Article
Publication date: 21 February 2024

Nicolas Aubert, Miguel Cordova and Gonzalo Hernandez

This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American…

Abstract

Purpose

This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American countries with deep social and economic inequalities.

Design/methodology/approach

This is a qualitative case study which conducted interviews with representatives of the French MNE and its subsidiaries in Peru and Mexico.

Findings

The employee stock purchase plans offered by the company to its employees support the achievement of the sustainable development goals (SDGs) 1, 8 and 10 in these countries.

Social implications

The authors argue that MNEs could become flagships in the SDG achievement in emerging economies.

Originality/value

By contributing to better workplace outcomes and enhanced corporate performance, ESO is in line with SDG 8. ESO also fulfills SDGs 1 and 10 by allowing employees to build up savings and wealth, whose lack is the main source of inequality and poverty. Reciprocity and binary economics theories explain these relationships.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 23 January 2024

Phela Townsend, Douglas Kruse and Joseph Blasi

This paper offers a new perspective on the potential motivation for the adoption of employee ownership based on market power. Employee ownership may be linked to market power…

Abstract

Purpose

This paper offers a new perspective on the potential motivation for the adoption of employee ownership based on market power. Employee ownership may be linked to market power, either through contributing to firm growth that leads to market power or through industry leaders adopting employee ownership as part of rent sharing or a broader consolidation of market position. Both employee stock ownership plan (ESOP) coverage and product market concentration (PMC) have been increasing in the past two decades, providing a good opportunity to see if and how these are related.

Design/methodology/approach

The authors predict ESOP adoption and termination using multilevel regressions based on 2002–2012 firm- and industry-level data from the Census Bureau, Compustat and Form 5500 pension datasets.

Findings

The authors find that the top four firms in concentrated industries are more likely to adopt Employee Stock Ownership Plans (ESOPs), while having an ESOP does not predict entering the top four, apart from firm-level predictors. Tests indicate the first result does not reflect simple rent sharing with employees but instead appears to reflect an effort by firms to consolidate market power through the attraction and retention (or “locking in”) of industry talent. Other positive predictors of ESOPs include company size, being in a high-wage industry and having a defined benefit (DB) pension.

Research limitations/implications

To better distinguish among hypotheses, it would be helpful to have firm-level data on managerial attitudes, strategies, networks and monopsony measures. Therefore, future research using such data would be highly useful and encouraged.

Practical implications

The paper includes implications for the potential usefulness of ESOPs in attracting and retaining talent and for the design of nuanced policy to encourage more broadly based sharing of economic rewards.

Originality/value

While prior research focuses on firm-level predictors of employee ownership, this study uses market concentration and other industry-level variables to predict the use of ESOPs. This study makes a unique contribution, broadening the current thinking on firm motives and environmental conditions predictive of firm ESOP adoption.

Details

Journal of Participation and Employee Ownership, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-7641

Keywords

Article
Publication date: 23 October 2023

Manpreet K. Arora and Sukhpreet Kaur

Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand…

Abstract

Purpose

Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand the exercise decision of the employees. This is an important financial decision that is dependent on both rational and psychological factors. This paper aims to study the mediating role of Herding Bias on Personality Traits and the employees' decision to exercise ESOs.

Design/methodology/approach

The data were collected through a self-structured questionnaire from 210 employees of Banks and NBFCs [Non-Banking Financial Companies] who have received and exercised the ESOs. SPSS MACRO version 25 was used to understand the mediational effect of Herding Bias on Personality Traits and Employees' decision to exercise their ESOs.

Findings

The results showed that Personality Traits affect the employees' decision to exercise their ESOs. The study also shows a partial negative mediating effect of Herding Bias on Personality Traits and employees' decision to exercise ESOs.

Originality/value

Limited study has been conducted on how the employees make their decision to exercise ESOs. Although extant studies have touched upon the importance of including behavioural biases in ascertaining the exercise decision of the employees, the predictors of the behavioural biases have not been studied under this context. To the best of the author's knowledge, this study is the first in itself to study the inter-linkage between Personality Traits, Herding Bias and employees' decision to exercise ESOs.

Details

Managerial Finance, vol. 50 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Case study
Publication date: 6 March 2024

Thunusha Pillay Lottan and Caren Brenda Scheepers

The learning outcomes for this case study are as follows: learning outcome 1: evaluate the environmental context of Youth Employment Service (YES) and ascertain whether YES is a…

Abstract

Learning outcomes

The learning outcomes for this case study are as follows: learning outcome 1: evaluate the environmental context of Youth Employment Service (YES) and ascertain whether YES is a social enterprise. Students will provide an analysis of what is happening around the business, and why addressing youth unemployment is an urgent matter to address; learning outcome 2: apply basic financial principles to evaluate the basic profit and loss statement of YES. In a business management class, students need to recognise the importance of applying basic financial principles to ensure the financial sustainability of a business. Therefore, the objective is for students to evaluate the basic profit and loss statement in the case’s exhibit. The focus is not necessarily on the numbers, but rather on the insight that students will gain into the organisation’s strengths and development areas; and learning outcome 3: create recommendations by considering the exploitation of existing opportunities and the exploration of new opportunities to innovate. Students should understand the principles of organisational ambidexterity and provide suggestions on how they can be used by organisations to reshape their desirable future.

Case overview/synopsis

On 31 March 2022, Leanne Emery Hunter, the chief operating officer of the YES, was considering how YES could increase their impact. Hunter considered how to convince more corporations to sponsor their efforts in creating work experiences for South African youth. In addition to exploiting these efforts that they were already involved with, YES could explore new opportunities to increase their impact, such as focusing on the community hubs and the innovative products they were developing. Expanding YES’s community hubs to serve as support to the youth would require a capital investment in technology and specific skills within the next six months. Hunter, therefore, faced the dilemma of managing the tensions between focusing on YES’s existing offering, which had a social impact, while paying attention to secure their future by focusing on the financial sustainability and expansion of YES. Its ceremonial inauguration in March 2018 was ushered by President of South Africa Cyril Ramaphosa, followed by its registration in October 2018. YES was challenged to look for new ways of creating a proactive growth strategy. YES had a social mission to address youth unemployment, students will, however, need to ascertain whether YES is a social enterprise. The case shares financial results and students have an opportunity to calculate profit and loss and offer recommendations on the financial viability of YES while fulfilling their social mission of contributing to youth employment. Students must give recommendations to resolve the dilemma of Hunter in managing the tension between their existing social impact and the future financial sustainability of the business.

Complexity academic level

The case is suitable for post-graduate courses in business management in business administration programmes.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 3: Entrepreneurship.

Details

Emerald Emerging Markets Case Studies, vol. 14 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 2 February 2024

Muhammad Ayub, Khurram Khan, Mansoor Khan and Muhammad Ismail

The unique institution of waqf that was ignored during the colonization of the Muslim areas has to be revived to play its role in shared growth, social inclusion and cohesion in…

Abstract

Purpose

The unique institution of waqf that was ignored during the colonization of the Muslim areas has to be revived to play its role in shared growth, social inclusion and cohesion in society. This research paper aims to explore the role of waqf as an instrument for a sustainable growth system and to suggest a model for socioeconomic development in an economy like that of Pakistan.

Design/methodology/approach

This qualitative research is based on analytical methods to arrive at the frameworks and a model that could facilitate the revival of waqf for community development/social inclusion in economies like that of Pakistan.

Findings

As most of the OIC member states like Pakistan are facing serious financial problems due to debt servicing obligations, promoting Waqf for various socioeconomic and cultural functions is a vital requirement for such economies. The inability of the state institutions in providing necessary civic, health and education facilities to the public is causing serious harm to the balance of the society. It requires promoting a formal system of charity and using FinTech for waqf-based donations and financing the micro businesses. The perpetuity complimented by the profitability of the waqf properties makes the waqf institutions sustainable and effective when compared to individual charities.

Research limitations/implications

This is conceptual research discussing the potential of waqf in light of its historical role. Researchers may undertake empirical studies on awqaf operations in various jurisdictions and their role in the empowerment of the poor.

Practical implications

The research will provide the researchers with insight into the potential of waqf as a tool for community development. Besides, it will enable policymakers and implementation authorities to socialize charity for sustained benefits and welfare.

Originality/value

To the best of the authors’ knowledge, it is the first major research that discusses the role of waqf in economies facing budgetary and trade deficits in the eradication of poverty and the promotion of social and economic entrepreneurship in realizing the community development targets for the economies like that of Pakistan.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 26 March 2024

Mark Ellis and Dianne Dean

The aim of this paper is to explore the stakeholder exclusion practices of responsible leaders.

Abstract

Purpose

The aim of this paper is to explore the stakeholder exclusion practices of responsible leaders.

Design/methodology/approach

An interpretive multiple case analyses of seven responsibly led organisations was employed. Twenty-two qualitative interviews were undertaken to investigate and understand perceptions and practice of responsible leaders and their approach to stakeholder inclusion and exclusion.

Findings

The findings revealed new and surprising insights where responsible leaders compromised their espoused values of inclusivity through the application of a personal bias, resulting in the exclusion of certain stakeholders. This exclusivity practice focused on the informal evaluation of potential stakeholders’ values, and where they did not align with those of the responsible leader, these stakeholders were excluded from participation with the organisation. This resulted in the creation and continuity of a culture of shared moral purpose across the organisation.

Research limitations/implications

This study focussed on responsible leader-led organisations, so the next stage of the research will include mainstream organisations (i.e. without explicit responsible leadership) to examine how personal values bias affects stakeholder selection in a wider setting.

Practical implications

The findings suggest that reflexive practice and critically appraising management methods in normative leadership approaches may lead to improvements in diversity management.

Originality/value

This paper presents original empirical data challenging current perceptions of responsible leader inclusivity practices and indicates areas of leadership development that may need to be addressed.

Details

Equality, Diversity and Inclusion: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 8 February 2024

Casper Hendrik Claassen, Eric Bidet, Junki Kim and Yeanhee Choi

This study aims to assess the alignment of South Korea’s government-certified social enterprises (GCSEs) with prevailing social enterprise (SE) models, notably the entrepreneurial…

Abstract

Purpose

This study aims to assess the alignment of South Korea’s government-certified social enterprises (GCSEs) with prevailing social enterprise (SE) models, notably the entrepreneurial nonprofit, social cooperative and social business models delineated in the “Emergence of Social Enterprises in Europe” (Defourny and Nyssens, 2012, 2017a, 2017b) and the “principle of interest” frameworks (Defourny et al., 2021). Thereby, it seeks to situate these enterprises within recognized frameworks and elucidate their hybrid identities.

Design/methodology/approach

Analyzing panel data from 2016 to 2020 for 259 GCSEs, this study uses tslearn for k-means clustering with dynamic time warping to assess their developmental trajectories and alignment with established SE models, which echoes the approach of Defourny et al. (2021). We probe the “fluid” identities of semi-public sector SEs, integrating Gordon’s (2013) notion that they tend to blend various SE traditions as opposed to existing in isolation.

Findings

Results indicate that GCSEs do align with prevalent SE frameworks. Furthermore, they represent a spectrum of SE models, suggesting the versatility of the public sector in fostering diverse types of SEs.

Originality/value

The concept of a semi-public sector SE model has been relatively uncharted, even though it holds significance for research on SE typologies and public sector entrepreneurship literature. This study bridges this gap by presenting empirical evidence of semi-public SEs and delineating the potential paths these enterprises might take as they amalgamate various SE traditions.

Details

Social Enterprise Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-8614

Keywords

Article
Publication date: 1 May 2023

John Fitzpatrick LeCounte

This study aims to contribute to the academic disciplines of entrepreneurship and management by developing a new theory that explains Founder-CEOs’ succession in family and…

Abstract

Purpose

This study aims to contribute to the academic disciplines of entrepreneurship and management by developing a new theory that explains Founder-CEOs’ succession in family and non-family firms. Many scholars failed to generate a specific theory to describe the succession of Founder-CEOs. Family firms remain complex enterprises comprising interconnectedness of cultural interests in which corporate governance occurs by families, Founder-CEOs and sometimes a board of directors.

Design/methodology/approach

This study’s design/methodology/approach reflects post-modernist epistemological and ontological perspectives for conducting systematic literature reviews. To identify relevant studies in the review, the several databases (Australian Business Dean’s Council Journal Quality List; EBSCO Database, including PsycINFO and Psych studies; Web of Science) and a mix of ranked journals from entrepreneurship, management and psychology were used.

Findings

The findings and results in this paper reflect the purpose, methodology and literature analysis culminating in 1,582 peer-reviewed studies. A total of 182 peer-reviewed studies met the criterion for review. Throughout the research process, a systematic literature review uncovered management literature gaps overlooked for decades during the theory-building process. Hence, developing a theory of Founder-CEOs succession used a combination of systematic, inductive, comparative and interactive approaches.

Originality/value

A Theory of Founder-CEOs Succession explains the strategic process of replacing a founder systematically. The promotion of, and incentives for, internal executives have been topics of great interest and deliberation among scholars and practitioners for a long time. This study contributes research implications for theory building in the academic disciplines of entrepreneurship and management by offering scholars and practitioners a theory that does not exist to describe Founder-CEOs’ succession encompassing both strategic successes and failures. By incorporating successes and failures, this study provides realistic reflections of Founder-CEOs.

Details

International Journal of Organizational Analysis, vol. 32 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 8 February 2024

Henri Hussinki, Tatiana King, John Dumay and Erik Steinhöfel

In 2000, Cañibano et al. published a literature review entitled “Accounting for Intangibles: A Literature Review”. This paper revisits the conclusions drawn in that paper. We also…

1974

Abstract

Purpose

In 2000, Cañibano et al. published a literature review entitled “Accounting for Intangibles: A Literature Review”. This paper revisits the conclusions drawn in that paper. We also discuss the intervening developments in scholarly research, standard setting and practice over the past 20+ years to outline the future challenges for research into accounting for intangibles.

Design/methodology/approach

We conducted a literature review to identify past developments and link the findings to current accounting standard-setting developments to inform our view of the future.

Findings

Current intangibles accounting practices are conservative and unlikely to change. Accounting standard setters are more interested in how companies report and disclose the value of intangibles rather than changing how they are determined. Standard setters are also interested in accounting for new forms of digital assets and reporting economic, social, governance and sustainability issues and how these link to financial outcomes. The IFRS has released complementary sustainability accounting standards for disclosing value creation in response to the latter. Therefore, the topic of intangibles stretches beyond merely how intangibles create value but how they are also part of a firm’s overall risk and value creation profile.

Practical implications

There is much room academically, practically, and from a social perspective to influence the future of accounting for intangibles. Accounting standard setters and alternative standards, such as the Global Reporting Initiative (GRI) and European Union non-financial and sustainability reporting directives, are competing complementary initiatives.

Originality/value

Our results reveal a window of opportunity for accounting scholars to research and influence how intangibles and other non-financial and sustainability accounting will progress based on current developments.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 4 January 2024

Richard M. Kerslake and Chandrasekhar Krishnamurti

The purpose of this paper is to investigate the extent to which interdisciplinary (HASS, i.e. non-STEM) factors—in particular, accounting, stakeholder management and…

Abstract

Purpose

The purpose of this paper is to investigate the extent to which interdisciplinary (HASS, i.e. non-STEM) factors—in particular, accounting, stakeholder management and accountability—enable, influence and motivate large human exploration ventures, principally in maritime and space fields, utilizing Columbus’s and Chinese explorations of the 1400s as the primary setting.

Design/methodology/approach

The study analyzes archival data from narrative and interpretational history, including both academic and non-academic sources, that relate to two global historical events, the Columbus and Ming Chinese exploration eras (c. 1400–1500), as a parallel to the modern “Space Race”. Existing studies on pertinent HASS (Humanities and Social Sciences) and STEM (Science, Technology, Engineering and Mathematics) enablers, influencers and motivators are utilized in the analysis. The authors draw upon the concepts of stakeholder theory and the construct of accountability in their analysis.

Findings

Findings suggest that non-STEM considerations—politics, finance, accountability, culture, theology and others—played crucial roles in enabling Western Europe (Columbus) to reach the Americas before China or other global powers, demonstrating the pivotal importance of HASS factors in human advancements and exploration.

Research limitations/implications

In seeking to answer those questions, this study identifies only those factors (HASS or STEM) that may support the success or failure in execution of the exploration and development of a region such as the New World or Space. Moreover, the study has the following limitation. Relative successes, failures, drivers and enablers of exploratory ventures are drawn almost exclusively from the documented historical records of the nations, entities and individuals (China and Europe) who conducted those ventures. A paucity of objective sources in some fields, and the need to set appropriate boundaries for the study, also necessitate such limitation.

Practical implications

It is observable that many of those HASS factors also appear to have been influencers in modern era Space projects. For Apollo and Soyuz, success factors such as the relative economics of USA and USSR, their political ideologies, accountabilities and organizational priorities have clear echoes. What the successful voyages of Columbus and Apollo also have in common is an appetite to take risks for an uncertain return, whether as sponsor or voyager; an understanding of financial management and benefits measurement, and a leadership (Isabella I, John F. Kennedy) possessing a vision, ideology and governmental apparatus to further the venture’s goals.

Originality/value

Whilst various historical studies have examined influences behind the oceangoing explorations of the 1400s and the colonization of the “New World”, this article takes an original approach of analyzing those motivations and other factors collectively, in interdisciplinary terms (HASS and STEM). This approach also has the potential to provide a novel method of examining accountability and performance in modern exploratory ventures, such as crewed space missions.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

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