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1 – 10 of over 7000Abdulnaser Ibrahim Nour, Mohammad Najjar, Saed Al Koni, Abullateef Abudiak, Mahmoud Ibrahim Noor and Rani Shahwan
The purpose of this research is to examine the impact of governance mechanisms on corporate failure.
Abstract
Purpose
The purpose of this research is to examine the impact of governance mechanisms on corporate failure.
Design/methodology/approach
This study used a hypothesis-testing research design to collect data from the annual reports of 35 companies listed on Palestine Exchange from 2010 to 2019. Descriptive and inferential statistics were employed, along with correlation analysis to evaluate linear relationships between variables. The variance inflation factor was used to test multicollinearity, and binary logistic regression was utilized to develop the research model.
Findings
There is a significant positive relationship between board of directors' independency, institutional ownership and the quality of external audit, and corporate failure reduction. No significant relationship has been found among corporate governance variables such as board size, board meetings' frequency, board members' remuneration and audit committee existence, and corporate failure reduction.
Research limitations/implications
Several empirical research studies have developed models to predict corporate failure using accounting and financial data. However, limited research has empirically investigated the impact of the different mechanisms of governance on corporate failure prediction.
Practical implications
The research highlighted the significance of companies' commitment to governance principles and their impact on predicting failure. The study suggests that decision-makers and managers can adopt different governance mechanisms to support corporate success and avoid those that may lead to negative consequences and failure.
Originality/value
This research is the first in Palestine to use a comprehensive list of corporate governance mechanisms to predict the failure of companies listed on the Palestine Stock Exchange between 2010 and 2019.
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Fatemeh Sajjadian, Mirahmad Amirshahi, Neda Abdolvand, Bahman Hajipour and Shib Sankar Sana
This study aims to endeavor to shed light on the underlying causal mechanisms behind the failure of startups by examining the failure process in such organizations. To achieve…
Abstract
Purpose
This study aims to endeavor to shed light on the underlying causal mechanisms behind the failure of startups by examining the failure process in such organizations. To achieve this goal, the study conducted a comprehensive review of the literature on the definition of failure and its various dimensions, resulting in the compilation of a comprehensive list of causes of startup failure. Subsequently, the failure process was analyzed using a behavioral strategy approach that encompasses rationality, plasticity and shaping, as well as the growth approach of startups based on dialectic, teleology and evolution theories.
Design/methodology/approach
The proposed research methodology was a case study using process tracing, with the sample being a failed platform in the ride-hailing technology sector. The causal mechanism was further explicated through the combined application of the behavioral strategy approach and interpretive structural modeling analysis.
Findings
The findings of the study suggest that the failure of startups is a result of interlinked causes and effects, and growth in these organizations is driven by dialectic, teleology and evolution theories.
Originality/value
The outcomes of the research can assist startups in formulating an effective strategy to deliver the right value proposition to the market, thereby reducing the chances of failure.
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Clemens Hutzinger and Wolfgang J. Weitzl
The purpose of this research is the exploration of online complainants' revenge based on their consumer-brand relationship strength and received webcare. The authors introduce…
Abstract
Purpose
The purpose of this research is the exploration of online complainants' revenge based on their consumer-brand relationship strength and received webcare. The authors introduce inter-failures (i.e. the perceived number of earlier independent service failures that a customer has experienced with the same brand involved in the current service failure) as the central frame condition.
Design/methodology/approach
To test our hypotheses, both a scenario-based online experiment (n = 316) and an online survey (n = 492) were conducted.
Findings
With an increasing number of inter-failures, online complainants with a high-relationship strength move from the “love is blind” effect (no inter-failures) to the “love becomes hate” effect (multiple inter-failures), when they ultimately become more revengeful than their low-relationship strength counterparts. In addition, the authors show that in the case of no or few inter-failures, accommodative webcare has a lasting positive effect over no/defensive webcare for both low- and high-relationship complainants. More importantly, however, when consumers have experienced multiple inter-failures, accommodative webcare becomes ineffective (for low-relationship complainants) or boomerangs by cultivating revenge towards the brand (among high-relationship complainants), but not strategic avoidance.
Research limitations/implications
The findings have pronounced implications for the literature on customer–brand relationships following service failures and the literature, which predominantly emphasizes the unconditionally positive effects of accommodative webcare.
Originality/value
This study is the first that simultaneously considers the prior customer–brand relationship, inter-failures and webcare to explain online complainants' revenge.
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Shichang Liang, Rulan Li, Bin Lan, Yuxuan Chu, Min Zhang and Li Li
This study explores how chatbot gender and symbolic service recovery may improve the satisfaction of angry customers in the context of service failures. It provides a strategy for…
Abstract
Purpose
This study explores how chatbot gender and symbolic service recovery may improve the satisfaction of angry customers in the context of service failures. It provides a strategy for companies to deploy chatbots effectively in customer anger.
Design/methodology/approach
This research relies upon a systematic literature review to propose three hypotheses, and we recruit 826 participants to examine the effect of chatbot gender on angry customers through one lab study and one field study.
Findings
This research shows that female chatbots are more likely to increase the satisfaction of angry customers than male chatbots in service failure scenarios. In addition, symbolic recovery (apology vs. appreciation) moderates the effect of chatbot gender on angry customers. Specifically, male (vs. female) chatbots are more effective in increasing the satisfaction of angry customers when using the apology method, whereas female (vs. male) chatbots are more effective when using the appreciation method.
Originality/value
The rapid advancements in artificial intelligence technology have significantly enhanced the effectiveness of chatbots as virtual agents in the field of interactive marketing. Previous research has concluded that chatbots can reduce negative customer feedback following a service failure. However, these studies have primarily focused on the level of chatbot anthropomorphism and the design of conversational texts, rather than the gender of chatbots. Therefore, this study aims to bridge that gap by examining the effect of chatbot gender on customer feedback, specifically focusing on angry customers following service failures.
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Munjiati Munawaroh, Nurul Indarti, Wakhid Slamet Ciptono and Tur Nastiti
This study's main objective is to examine the effect of learning from entrepreneurial failure on performance, with a type of failure as a moderator variable. Interactions between…
Abstract
Purpose
This study's main objective is to examine the effect of learning from entrepreneurial failure on performance, with a type of failure as a moderator variable. Interactions between internal and external causes of failure and learning from entrepreneurial failure are also investigated, as well as entrepreneurs' aspects (i.e. age, experience and education) and organisational contextual factors (i.e. size, sector and location).
Design/methodology/approach
This study employed a hypothetico-deductive approach through a survey of 250 purposively sampled entrepreneurs who had suffered business failures. The survey data were subjected to regression analysis and moderated regression using WarpPLS software and an independent sample t test for an in-depth analysis.
Findings
The results indicated that learning from entrepreneurial failure positively affected business performance, an effect moderated by the type of failure, particularly with large failures. Only perceived internal causes of failure exerted a positive effect on learning from entrepreneurial failure; the external causes did not. The effect of failure on business performance was stronger on entrepreneurs who were older and experienced, had non-university educations and operated small- and medium-sized enterprises (SMEs) outside Java–Bali islands.
Originality/value
This study's findings provide empirical evidence that supports the experiential learning theory and attribution theory in explaining the interaction between learning and failure, its cause, its consequences and its magnitude as perceived by entrepreneurs of SMEs in Indonesia, where the rate of failure is relatively high. The authors’ study also emphasises the roles of the entrepreneur and organisational contextual factors, which matter in learning to improve performance.
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Rosa E. Rios, Hernan E. Riquelme and Alessandro Comai
The purpose of this empirical research is to investigate the influence of interactive virtually present others (VPOs) on a firm response and customers’ reiterated complaints…
Abstract
Purpose
The purpose of this empirical research is to investigate the influence of interactive virtually present others (VPOs) on a firm response and customers’ reiterated complaints (follow-ups) during service failures. This research follows up on previous experimental studies that suggest VPOs affect the focal customers’ complaint intention.
Design/methodology/approach
More than 16,000 posts (of complaints and complainants’ follow-ups) on 13 airline Facebook pages were analyzed using partial least squares.
Findings
This empirical study found that customers’ complaints are attended to the extent the complaints are followed up with more comments as supported by VPOs suggesting a contagion effect. Besides, it appears, the squeaky wheel is the one that gets the grease. The interactive virtual presence of others does not have an effect on a firm response toward them, despite their support to complainants and calling the airline to act.
Originality/value
To date, previous experimental studies have only featured a single VPO in potential complainants’ responses; however, in this empirical study the authors take into consideration the interaction of several VPOs in the service failure. Also, the focus is on the influence of VPOs on customers' complaints rather than the other way around.
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Steven Muzatko and Gaurav Bansal
This research examines the relationship between the timeliness in announcing the discovery of a data breach and consumer trust in an e-commerce company, as well as later…
Abstract
Purpose
This research examines the relationship between the timeliness in announcing the discovery of a data breach and consumer trust in an e-commerce company, as well as later trust-rebuilding efforts taken by the company to compensate users impacted by the breach.
Design/methodology/approach
A survey experiment was used to examine the effect of both trust-reducing events (announced data breaches) and trust-enhancing events (provision of identity theft protection and credit monitoring) on consumer trust. The timeliness of the breach announcement by an e-commerce company was manipulated between two randomly assigned groups of subjects; one group viewed an announcement of the breach immediately upon its discovery, and the other viewed an announcement made two months after the breach was discovered. Consumer trust was measured before the breach, after the breach was announced, and finally, after the announcement of data protection.
Findings
The results suggest that companies that delay a data breach announcement are likely to suffer a larger drop in consumer trust than those that immediately disclose the data breach. The results also suggest that trust can be repaired by providing data protection. However, even after providing identity theft protection and credit monitoring, companies that fail to promptly disclose a breach have lower repaired trust than companies that promptly disclose.
Originality/value
This study contributes to the literature on e-commerce trust by examining how a company's forthrightness in reporting a data breach impacts user trust at the time of the disclosure of the data breach and after subsequent efforts to repair trust.
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Elaheh Mohammadi, Gianluca Vagnani and Hossein Maleki
The present study aims to explore the concepts involved in the relationship between corporate social responsibility (CSR) and customer and employee satisfaction in service…
Abstract
Purpose
The present study aims to explore the concepts involved in the relationship between corporate social responsibility (CSR) and customer and employee satisfaction in service industries.
Design/methodology/approach
The research literature over the recent decade has been analyzed using a systematic review. Through thematic analysis and coding the findings of the final selected articles, the authors presented an integrative framework of the relationship between CSR and the satisfaction of critical stakeholders of service companies, namely, customers and employees.
Findings
The research framework encompasses six main categories called CSR, satisfaction, moderators, conditional variables, contextual variables and satisfaction outcomes. All categories but CSR are divided into customer and employee sections to make the research framework further comprehensible.
Practical implications
The results show that in service industries, employees need as much attention as customers, and CSR efforts to satisfy customers and employees can lead to several positive outputs for companies.
Social implications
Failure of service companies to commit to their social responsibility may harm the environment, society’s ethics and laws and long-term corporate profitability. On the other hand, adherence to CSR can lead to social development and economic growth.
Originality/value
This study is one of the most comprehensive studies in the field of CSR and satisfaction, which simultaneously considers the two key stakeholders of a service company. In addition, it provides valuable avenues for further studies.
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Andrea Calabrò, Ulrike Mayrhofer and Alfredo Valentino
This paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on…
Abstract
Purpose
This paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on de-internationalization and re-internationalization.
Design/methodology/approach
Building on the Uppsala model and the resource-based view, this study analyzes the cycles and waves of internationalization of 26 German family firms in the Chinese market. Semi-structured interviews with top managers of the selected case firms were conducted, and secondary sources were used to triangulate the collected data.
Findings
The findings highlight the heterogeneity of family firm internationalization processes. Indeed, some family firms follow the sequential approach of the Uppsala model, while others choose to de-internationalize and then re-internationalize their activities. Their cycles and waves of internationalization can be explained by internal and external triggers.
Originality/value
This article contributes to the family firm internationalization literature by investigating how family firm characteristics and environmental factors shape internationalization, de-internationalization and re-internationalization paths. The novel findings enrich theoretical assumptions on family firm internationalization and highlight their varying internationalization processes, which can be explained by firm-specific characteristics, notably their unique family resources and socioemotional wealth, and contextual factors.
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This paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning.
Abstract
Purpose
This paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning.
Design/methodology/approach
The paper reviews the current state of tax planning with case studies that reveal fundamental statutory structural opportunities.
Findings
While some, possibly many, tax advisers lack integrity and recommend tax structures to their clients that are inconsistent with reasonable interpretations of the tax law, most advisers, even very aggressive and creative advisers, probably do not. The paper suggests that it may be futile to seek to deter tax professionals from designing and marketing tax plans unless legislation makes tax advisers jointly responsible with their clients for their clients’ tax underpayments.
Practical implications
Short of such a radical approach, governments must commit first to altering the basic structure of their tax laws to make aggressive tax planning uninviting.
Originality/value
The paper offers original insights into the inseparability of the legislative process from the creation of unnecessary tax planning opportunities.
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