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CEO turnover and chronic corporate underperformance are examined through the lens of Transgenerational Response.

The criteria for investigating Transgenerational Response in corporations consisted of identifying a Critical Corporate Incident, the number of corporate generations and the resultant corporate financial performance.

The evidence presented in the case studies illustrates how a Critical Corporate Incident has produced the consequential effect of chronic financial performance in the years following the incident.

These case studies have not presented the “actual” adaptive responses, inherited attitudes and behaviours that have subsequently embedded themselves in a new corporate culture, post the Critical Corporate Incident, to the detriment of the long-term health and performance of each firm.

Examining CEO turnover and chronic corporate underperformance through the lens of Transgenerational Response means that business leaders can identify how a historic event has affected the performance of their firm in subsequent generations. With this knowledge in hand, they will be able to examine the inherited attitudes and behaviours, organizational policies, strategy and adaptive cultural routines that have combined to consolidate the firms chronic under performance.

This is a highly original, evidence based, idea that has the potential to reshape our current understanding of CEO turnover and underperforming firms. It will help business leaders identify how a historic event has affected the performance of a firm in subsequent generations.

This paper provides further evidence on a thought-provoking idea, Transgenerational Response, which was previously presented in this journal. It argues that a corporate crisis event can create dysfunctional adaptive attitudes and behaviors which subsequently become embedded in the corporate culture of a firm to the detriment of its long-term performance.

A multi-method approach consisting of longitudinal content analysis of innovation and risk words in corporate annual reports and quantitative financial analysis divided the data into ‘what happened before the crisis event’ and ‘what happen after the crisis event’.

Case studies for AIG and Yahoo illustrate how a crisis event produced chronic financial performance and adaptive cultural responses that include a fall in innovation and an increased emphasis on risk in the years following the incident.

This paper does not make claims of generalisability of the findings. However, it does provide a platform for future researchers to develop this line of reasoning and perhaps extend it to consider why some organizations demonstrate greater levels of resilience when faced with a crisis.

Identifying a Transgenerational Response means that business leaders can identify how a historic event has affected the performance and cultural dynamics of their firm over time. As such, it will be easier to manage the inherited cultural attitudes and behaviours that have combined to consolidate a firms chronic underperformance.

This highly original, evidence-based idea, has the potential to reshape our current understanding of corporate turnarounds, CEO turnover, underperformance and adaptive cultural change.

TQM has its share of critics who are always quick to highlight the number of companies abandoning TQM programmes. When TQM fails, we call this a case of chronic TQM fatigue. Outlines typical symptoms. Suggests two ways an organization can prevent the onset of chronic fatigue. Concludes that these two remedies supplement the bottom‐up approaches to TQM that are commonly prescribed.

This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey.

A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey.

The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance.

The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings.

The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is.

One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership.

These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.

The aim is to study how the chemical industry in Tarragona (Spain) uses the internet to communicate with its community on issues relating to chemical risk and the impact of the chemical industry on the environment, health and safety.

A specific methodology was defined allowing the corporate websites of the chemical industry to be studied. A content analysis methodology was used, searching the information that exists on the corporate websites of the most significant trade associations and chemical companies in the Tarragona conglomerate.

The results suggest that there are some common characteristics of the chemical industry strategy in providing information on their corporate websites about the chemical risk and the impact of the chemical industry: a tendency to globalise the information about these issues, the maximisation of the positive concepts such as safety and commitment, and the minimisation of the negative concept of risk.

The study was carried out on a small number of companies, thus the results cannot be considered statistically representative of the entire chemical industry in Spain. In addition, the Tarragona population was not asked for their views on these corporate websites.

The results show the treatment of information concerning chemical risk in the most important trade associations and companies in the sector, the state of information concerning chemical risk on the corporate websites of such organisations, and the risk communication strategy of these companies through the internet. It also presents the design of a specific methodology suitable for analysing the information available on chemical risk on the corporate websites of companies, institutions and organisations of any kind.

The purpose of this paper is to explore the issue of crisis management within the Toyota Corporation's series of worldwide recalls for multiple malfunctions on a number of different Toyota brands of vehicles. The analysis relates to the difficulty now faced by Toyota, previously recognized as the world's leading manufacturer of automotive vehicles. The crisis became so great that Toyota corporate leaders even traveled from Japan to testify before a US Congressional Committee hearing.

A crisis, typically considered to be a negative issue, can be a positive event in the life of a business firm, such as Toyota, if the management involved seizes the opportunity to make appropriate changes in its operations to facilitate continuing positive growth and development. However, this opportunity was not initially addressed by Toyota in a meaningful way, and the crisis continued to evolve through subsequent stages, bringing a vast array of negative international criticism. The crisis management paradigm that is the focus for this case identifies four stages of a crisis – the preliminary (pre‐) crisis, acute crisis, chronic crisis, and crisis resolution. The present crisis deals with several different malfunctions that were identified, apparently by customers, in various Toyota brands, but publically ignored by Toyota's management. Therefore, the pre‐crisis stage was not appropriately dealt with by Toyota, and the firm was thrust into an acute crisis that has now evolved into a chronic crisis. A brief overview of the historical development of Toyota is presented, and an analysis of the present crisis situation in which the firm found itself is presented in some detail.

It was concluded that Toyota is now in a very difficult position in the chronic crisis stage due to the failure of its management to facilitate a timely response to the malfunctions of its vehicles.

The paper presents an excellent example of crisis mismanagement by a previously recognized world leader.

The detrimental effects of air pollution on the continuity of corporations attract more and more attention in the economic and financial studies. Prior literature investigates the impact of air pollution on corporate financial performance. This study aims to extend this research area by exploring the role of corporate innovation and happiness as factors that mitigate the adverse effects of air pollution and moderate the relationship between air pollution and financial performance.

This study uses two-step system generalized method of moments models to analyze the data of 200 firms listed on Istanbul Stock Exchange over the period 2009–2022.

The results show that firms located in regions with higher air pollution are more likely to invest in innovation. In addition, firms that are more exposed to air pollution and have investments in research and development (R&D) have less ability to improve their financial performance compared to firms that have no investments in R&D. In a similar vein, although R&D has positive effect on financial performance, this effect diminishes in the presence of higher air pollution. The results also show that happiness has no significant moderating effect on the relationship between air pollution and financial performance.

The findings of this study related to the role of corporate innovation in determining the effect of air pollution on financial performance indicate that the costs of investment in R&D weaken the firm’s ability to mitigate the adverse impact of air pollution on financial performance, which provides important signals to policymakers to concentrate more on supporting investment in corporate innovation by providing the necessary facilities for firms to improve their innovative performance and decrease the costs of investment in innovation.

To the author’s knowledge, this research is the first to explore the influence of happiness on the air pollution–financial performance relationship. In addition, this study differs from most prior ones by examining how responding to air pollution through investment in innovation can moderate the association between air pollution and financial performance.

In a review of the literature, supported by six case studies, executive development for senior managers in public and private organisations is explored in depth. The study looks at the roles and responsibilities of the chairman, CEO, executive and non‐executive directors, the required capabilities to achieve successful performance, and the related executive development activity implemented to support these. Methods of delivery, development needs analysis and evaluation are explored in case organisations to ascertain current practice. A detailed review of the leadership and governance literatures is included to highlight the breadth of knowledge required at director level. Key findings of the study include the importance of focusing executive development on capability enhancement, to ensure that it is supporting organisational priorities, and on its thorough customisation to the corporate context. Deficiencies in current corporate practice are also identified.

The ideas expressed in this work are based on those put into practice at the Okuma Corporation of Japan, one of the world′s leading machine tool manufacturers. In common with many other large organizations, Okuma Corporation has to meet the new challenges posed by globalization, keener domestic and international competition, shorter business cycles and an increasingly volatile environment. Intelligent corporate strategy (ICS), as practised at Okuma, is a unified theory of strategic corporate management based on five levels of win‐win relationships for profit/market share, namely: ,1. Loyalty from customers (value for money) – right focus., 2. Commitment from workers (meeting hierarchy of needs) – right attitude., 3. Co‐operation from suppliers (expanding and reliable business) – right connections., 4. Co‐operation from distributors (expanding and reliable business) – right channels., 5. Respect from competitors (setting standards for business excellence) – right strategies. The aim is to create values for all stakeholders. This holistic people‐oriented approach recognizes that, although the world is increasingly driven by high technology, it continues to be influenced and managed by people (customers, workers, suppliers, distributors, competitors). The philosophical core of ICS is action learning and teamwork based on principle‐centred relationships of sincerity, trust and integrity. In the real world, these are the roots of success in relationships and in the bottom‐line results of business. ICS is, in essence, relationship management for synergy. It is based on the premiss that domestic and international commerce is a positive sum game: in the long run everyone wins. Finally, ICS is a paradigm for manufacturing companies coping with change and uncertainty in their search for profit/market share. Time‐honoured values give definition to corporate character; circumstances change, values remain. Poor business operations generally result from human frailty. ICS is predicated on the belief that the quality of human relationships determines the bottom‐line results. ICS attempts to make manifest and explicit the intangible psychological factors for value‐added partnerships. ICS is a dynamic, living, and heuristic‐learning model. There is intelligence in the corporate strategy because it applies commonsense, wisdom, creative systems thinking and synergy to ensure longevity in its corporate life for sustainable competitive advantage.