Search results
1 – 10 of over 1000Rishi Kappal and Dharmesh K. Mishra
Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning…
Abstract
Purpose
Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning culture. The purpose of this study is to examine the Executive isolation phenomenon where relationships between power distance, organizational culture and executive isolation of Chief Executive Officers (CEOs) are analysed on how it is considered by their teams. The same is contextualized through the inputs received through interviews conducted with CEOs and employee surveys.
Design/methodology/approach
The qualitative in-depth interviews of five CEOs, and survey across 34 of the 50 employees, were undertaken over the course of two phases of this study. The investigation focused on identifying executive isolation of CEOs and perspectives of employees that can impact the leadership and learning progress of organizations based on work culture, power distance and decision-making; awareness and experience of executive isolation; workplace friendliness and rejection; and management development initiatives to minimize the impact of executive isolation. Qualitative data analysis was conducted using MAXQDA 2022 (Verbi Software, Berlin, Germany), which is a qualitative data analysis software.
Findings
The findings highlight and expose the significant gap between understanding and analysing of the factors due to which the CEOs undergo executive isolation. It also extends to providing details related to the lack of awareness of the teams’ actions contributing to the CEOs’ isolation. It further highlights the fact that the difference of perspectives between the CEOs and teams leads to the organization slowing in its learning activities due to the leaders’ own challenges of executive isolation The findings also provide immense need of developing knowledge assets and management development initiatives for learning interventions, to help understand, analyse and mitigate executive isolation, in the interest of the organizational learning and development.
Originality/value
Earlier research work have contextualized the executive isolation impact on CEOs ability to be a leader. This study extends it to include the implications of leadership and learning culture on the teams that are affected by organization culture, power distance, decision-making and analysing the gap between the understandings about executive isolation of the CEOs. Eventually, it interprets how CEOs courting the executive isolation impacts the overall developmental culture of the organization. This will help in asserting the serious need of new learning frameworks needed to minimize the impact of CEO-level executive isolation.
Details
Keywords
Ahmed Bouteska, Taimur Sharif and Mohammad Zoynul Abedin
Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms…
Abstract
Purpose
Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms, the executive pay-performance nexus has emerged as a popular topic of debate in the contemporary corporate finance research. Conducted mostly on the Anglo-Saxon contexts, research outcomes have been inconclusive and dichotomous. Considering this backdrop, this study aims to investigate the endogenous relationship between executive compensation and risk taking in the context of the USA.
Design/methodology/approach
Using a large sample of non-financial firms from 2010 to 2020 based on panel data and two-stage least square regression. In this study, the riskier corporate decision is measured as book leverage and ratio of R&D expense to total assets. Chief executive officers’ (CEO) experience and age are used as instrumental variables, and these are expected to influence compensation incentives and, hence, affect firm riskiness indirectly. Firm size, return on assets and CEO turnover are reported to affect compensation and corporate decisions, therefore, included as control variables. Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. accumulated equity related compensation) as an additional proxy of compensation, and this selection is justifiable by the perfect contracting notion of the agency theory.
Findings
The results of this study show a significant positive and increasing nexus among compensation and riskier corporate decisions. Besides, the compensation level proxied through the percentage of each form of compensation in total compensation is very important as greater equity and greater salary diminishes risk taking.
Practical implications
The outcomes of this study have useful implications for firm stakeholders and policymakers.
Originality/value
The level of pay measured by the percentage of each type of compensation in total compensation is of utmost importance as it can increase or decrease risk taking in corporate decisions.
Details
Keywords
James Kroes, Anna Land, Andrew Steven Manikas and Felice Klein
This study investigates whether the underrepresentation of women in executive-level roles within the supply chain management (SCM) field is justified or the result of gender…
Abstract
Purpose
This study investigates whether the underrepresentation of women in executive-level roles within the supply chain management (SCM) field is justified or the result of gender injustices. The analysis examines if there is a gender compensation gap within executive-level SCM roles and whether performance differences or other observable factors explain disparities.
Design/methodology/approach
Publicly reported executive compensation and financial data are merged to empirically test if gender differences exist and investigate whether the underrepresentation of women in executive-level SCM roles is unjust.
Findings
Women occupy only 6.29% of the positions in the sample of 447 SCM executives. Unlike prior studies, we find that women executives receive higher compensation. The analysis does not identify observable factors explaining the limited inclusion of women in top-level roles, suggesting that gender injustices are prevalent in SCM.
Research limitations/implications
This study only considers observable factors and cannot conclusively determine if discrimination is occurring. The low level of inclusion of women in executive roles suggests that gender injustice is intrinsic within the SCM profession. These findings will hopefully motivate firms to undertake transformative actions that result in outcomes that advance gender equity, ultimately leading to social justice for female SCM executives.
Originality/value
The use of social justice and feminist theories, a focus on SCM roles, and an empirical methodology utilizing objective measures represents a novel approach to investigating gender discrimination in SCM organizations, complementing prior survey-based studies.
Details
Keywords
The purpose of this paper is to differentiate the ambidextrous leadership concept into direct and indirect types to provide an alternative when the requirements of direct…
Abstract
Purpose
The purpose of this paper is to differentiate the ambidextrous leadership concept into direct and indirect types to provide an alternative when the requirements of direct ambidextrous leadership cannot be met.
Design/methodology/approach
Desk research is used in this paper to relate the ambidextrous leadership concept to the roles of leader and manager to more comprehensively determine the requirements for being a direct/indirect ambidextrously leading executive than is possible by referring only to opening and closing leadership or exploration and exploitation.
Findings
Special requirements in the context of ambidextrous leadership can be transferred from the top executive/chief executive officer to third parties, for example, some control tasks in the area of exploitation can be distributed among the top management team, enabling the top executive to focus on tasks such as developing an organisation-wide vision and its strategic implementation. Indirect ambidextrous leadership exists if the top executive distributes exploitation tasks to third parties. Direct ambidextrous leadership exists if the top executive assumes leadership in both the exploration and exploitation areas. This means that the demands on the top executive are different in direct ambidextrous leadership and in indirect ambidextrous leadership.
Originality/value
The literature has not yet focused on the differentiation between direct and indirect ambidextrous leadership. This paper contributes towards closing this gap. The potential for indirect ambidextrous leadership can be essential for a company’s success because in addition to direct ambidextrous leadership, it represents the possibility of creating a sustainable organisation in a changing market.
Details
Keywords
This paper aims to examine the relationship between CEO’s attributes and the level of compliance with financial instruments risk disclosure (hereafter FIRD) as required by…
Abstract
Purpose
This paper aims to examine the relationship between CEO’s attributes and the level of compliance with financial instruments risk disclosure (hereafter FIRD) as required by International Financial Reporting Standard (IFRS) 7.
Design/methodology/approach
A data set of financial institutions listed on the Toronto Stock Exchange over the period 2015–2020 has been analyzed. Panel regressions have been estimated to provide empirical support for the testable hypotheses.
Findings
The research findings reveal that chief executive officer (CEO) compensation and financial expertise are positively associated with the level of FIRD provided by Canadian financial institutions. However, the analysis does not document any significant statistical linkage between the compliance score and CEO tenure, gender and age.
Practical implications
This study has important implications for stakeholders evaluating the determinants of reporting quality, for boards of directors considering CEO compensation and expertise and for standard setters considering the compliance level with new standards requirements.
Originality/value
This paper provides novel evidence on the linkage between CEO attributes and corporate disclosure. To the best of the authors’ knowledge, this paper is among the first to explore the impact of CEO characteristics on compliance with International Accounting Standards Board disclosure requirements. The analysis is also among the first to investigate compliance with IFRS 7 before and after the amendments required by IFRS 9.
Details
Keywords
Anjali Bansal, C. Lakshman, Marco Romano, Shivinder Nijjer and Rekha Attri
Research on leaders’ knowledge management systems focuses exclusively on how leaders gather and disseminate knowledge in collaboration with external actors. Not much is known…
Abstract
Purpose
Research on leaders’ knowledge management systems focuses exclusively on how leaders gather and disseminate knowledge in collaboration with external actors. Not much is known about how leaders address the psychological aspects of employees and strategize internal communication. In addition, while previous work has treated high uncertainty as a default feature of crisis, this study aims to propose that perceived uncertainty varies in experience/meaning and has a crucial bearing on the relative balance of cognitive/emotional load on the leader and behavioral/psychological responses.
Design/methodology/approach
The authors contribute by qualitatively examining the role of leader knowledge systems in designing communication strategies in the context of the COVID-19 crisis by investigating communication characteristics, style, modes and the relatively unaddressed role of compassion/persuasion. In this pursuit, the authors interviewed 21 C-suite leaders, including chief executive officers, chief marketing officers, chief financial officers, chief human resource officers and founders, and analyzed their data using open, axial and selective coding, which were later extracted for representative themes and overarching dimensions.
Findings
Drawing from grounded theory research, the authors present a framework of knowledge systems and their resultant communication with employees in high uncertain and low uncertain crises. The authors highlight interactions of a set of concepts – leaders’ preparedness, leaders’ support to employees tailored communication adapted to perceived uncertainty, leading to enhanced trust – in the achievement of outcomes related to balancing operational and relational systems with employees. The findings suggest that a structured process of communication helps employees mitigate any concern related to uncertainty and feel confident in their leadership.
Originality/value
The research has implications for leaders in managing their knowledge systems, for human esources practitioners in designing effective internal communication programs, as well as for scholars in knowledge management, communication and leadership.
Details
Keywords
António Miguel Martins and Cesaltina Pacheco Pires
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Abstract
Purpose
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Design/methodology/approach
The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.
Findings
The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.
Practical implications
This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.
Originality/value
The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.
Details
Keywords
Abstract
Purpose
Based on upper echelon theory and signaling theory, we aim to examine the impact of returnee executives on firms’ relative exploratory innovation focus and the moderating effect of economic policy uncertainty on this relationship.
Design/methodology/approach
Using panel data of Chinese listed companies from 2009 to 2020, we obtained empirical evidence to support our arguments.
Findings
Returnee executives positively influence firms’ relative exploratory innovation focus. This means that firms with returnee executives will shift the focus of their innovation activities toward exploratory innovation more than exploitative innovation. In addition, we find that economic policy uncertainty strengthens this relationship.
Originality/value
First, by showing how returnee executives positively influence firms’ shift in focus to exploratory rather than exploitative innovation, we expand our understanding of firms’ trade-offs between exploratory and exploitative innovation. Second, this study examines how returnee executives influence the relative importance that firms place on exploratory and exploitative innovation, allowing us to build a realistic and nuanced view of how returnee executives influence firms’ strategic choices. Finally, this study expands the strategic leadership literature and responds directly to the call for studies focusing on how institutional environmental conditions and executive characteristics work together to shape firm outcomes.
Details