Search results

The goal of this paper is to develop a model which may be used to demonstrate costs and benefits of risk management investments in the context of value-based management.

This paper answers the question of how to quantify changes in company value caused by risk management measures on a theoretical basis. First, a review of empirical studies allowing assertions about the cost and utility of risk management investments is presented. The results of these studies point to a nonlinear shape of the curve and form a basis for the development of a seemingly plausible cost/utility correlation.

In this paper, a model will be developed which can be used to demonstrate costs and benefits of risk management investments in the context of value-based management. It is assumed that at first, risk management expenditures without measurable monetary utility will have to be made. Furthermore, it is assumed to increase more than proportionally, then less than proportionally, until further investments in risk management activities yield only minimal increases in utility and cannot improve company value any further.

By inserting the yet-to-be-determined actual cost/benefit relationship for a company or industry sector into the EVA equation, it is possible to display the effects of risk management measures on the company value. This procedure is principally combinable with the analysis of other value-based control parameters, that is, the Discounted Cash Flow concept or the Cash Value Added methodology.

Risk management is increasingly gaining scientific and public interest, especially since the global financial crisis. Scientists and practical users espouse the benefits of risk management systems in this context. However, the extent to which investments in risk management systems can improve the value of a company remains still unclear.

We could determine that at first risk management expenditures will not result in a monetarily measurable benefit. The remaining slope of the curve is derived as increasing more than proportionally at first, then less than proportionally, until further investments into risk management activities yield almost no additional increase in benefits. In this paper, three different functions are offered to describe the shape of the curve identified. They differ in regard to their free parameters and hence in their flexibility of application. The higher flexibility of functions #2 and #3 is balanced by the disadvantage of increasing formal complexity, possibly leading to an increased effort for implementation and application.

To harness the relationships developed in this paper for practical use, further research should target the identification and empirical verification of dependencies between the parameters and principal company index values.

Value-based management and the balanced scorecard are two of the most distinguished management concepts of the past decades. The main criticism levelled at value-based management is that it is rarely applied in business practice. By contrast, the balanced scorecard is mainly criticized for its insufficient integration into corporate strategy. The two concepts are occasionally described as competing business philosophies in management theory. This chapter offers an integrative view of value-based management and the balanced scorecard. The resulting ‘value-based scorecard’ incorporates the value-based business philosophy while creating a link between the scorecard and the ‘value–added’ corporate strategy. This minimizes a multitude of other critical aspects of both concepts. In light of this, it is recommended that both management theory and business practice further interpret or use the value-based scorecard presented in this study as a tool for value-based management.

The research aims to investigate the impact of transformational leadership on employee championing behavior and to determine the mediating effect of work engagement in the context of organizational change.

This is a quantitative approach, which is based on cross-sectional data. In total, 300 available cases are processed through structural equation modeling in order to infer the results.

The results indicate that transformational leadership is significantly related to championing behavior during organizational change. Moreover, work engagement fully mediates the relationship between transformational leadership and championing behavior in the context of organizational change.

Managers should emphasize the practice of the transformational leadership approach, as well as should stress the antecedents of work engagement in order to foster the employee championing behavior in the context of organizational change.

The research contributes to the change management and human resource management literature by providing a plausible explanation of the mediating role of work engagement in connecting transformational leadership and employee championing behavior in the context of organizational change.

This paper aims to examine how role clarity mediates the effect of transformational leadership on job engagement and championing behavior in support of the conservation of resources theory.

The authors used a cross-sectional approach to collect data from managerial/nonmanagerial employees within the Pakistani hospitality industry via online and offline questionnaires. A total of 170 responses were used in the data analysis using partial least squares structural equation modeling to test the hypothesized relationships.

Findings show that transformational leadership directly predicts improved role clarity and job engagement. Moreover, role clarity leads to job engagement and championing behavior. Role clarity exhibits a partial mediation effect on job engagement and full mediation on championing behavior.

To bridge the gap in leadership literature, this research assesses the underlying effect of role clarity on the relationship between transformational leadership and its positive outcomes. It provides theoretical and managerial implications regarding the role of transformational leadership characteristics and outcomes.

This chapter examines the conditions under which social movements demobilize. Political process theorists have long argued that hostility in the external environment often leads to movement decline, while others have suggested that some degree of hostility will mobilize constituents. Data drawn from the periodicals of two first-wave feminist organizations, the National American Woman Suffrage Association and the National Woman's Party, are used to document the changes in the two organizations’ levels of collectivism between 1910 and 1930. Analyses show that whether and to what extent movement organizations respond to favorable or hostile external environments depends on internal organizational dynamics. Specifically, single-issue organizations respond more quickly and acutely to changes in the external environment than their multi-issue counterparts. Thus, despite past research that has touted the benefits of organizing around a single issue, this chapter documents a potential downside: the difficulty of sustaining long-term collective mobilization.