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Book part
Publication date: 31 July 2023

Verdiana Morreale and Elisa Giuliani

While multinational companies develop meta-level policies to address grand sustainability challenges and CEOs are increasingly showing their social activism, the hard work of…

Abstract

While multinational companies develop meta-level policies to address grand sustainability challenges and CEOs are increasingly showing their social activism, the hard work of concretely defending communities’ rights and the environment from business exploitation is often left to powerless individuals, known as human rights defenders (here defenders), who face severe risks for their advocacy. According to some statistics, between 2015 and 2022, defenders worldwide have been subject to over 4,000 attacks, including killings, tortures, and intimidation. In this chapter, the authors discuss the relevance of defenders to the promotion of the sustainable development goal (SDG) agenda and develop a conceptual model to predict CEOs’ reactions to defenders.

Details

International Business and Sustainable Development Goals
Type: Book
ISBN: 978-1-83753-505-7

Keywords

Article
Publication date: 22 August 2023

Zhe Li, Xinrui Liu and Bo Wang

Accounting scandals and earnings management problems at large firms such as Global Crossing and Enron have resulted in lots of wealth loss not only to corporate investors but also…

Abstract

Purpose

Accounting scandals and earnings management problems at large firms such as Global Crossing and Enron have resulted in lots of wealth loss not only to corporate investors but also led tremendous damage to societies. Hence, policymakers and academic researchers have started to explore mechanisms to prevent improprieties in financial reporting and further enhance firm value. Using data from United States (US)-listed companies between 2000 and 2018, this article explores the effect of ex-military executives on earnings quality, the role of financial analysts in their interplay and the firm value implication of earnings quality driven by ex-military executives.

Design/methodology/approach

This study employs a firm fixed-effects model to validate the main conjecture and adopts the weighted least squares, Granger causality analysis, instrumental variable approach, propensity score matching, entropy balancing approach and dynamic system Generalized Method of Moments (GMM) estimator to address robustness and endogeneity issues.

Findings

Authors reveal that companies run by ex-military senior executives exhibit lower levels of accruals-based and real earnings management than those without. The effect of management military leadership on constraining earnings management is more prominent for companies with low analyst coverage, suggesting that the military experience of executives could be a substitute for external monitoring. Authors also find that these ethical managers alleviate the negative impact of earnings management on firm value and that companies managed by these managers exhibit higher firm performance.

Practical implications

This study highlights the importance of the intrinsic motivation behind the effect of military experience on senior managers' personalities and offers essential stakeholder-related implications regarding the effect of military experience. The military experience of senior managers helps facilitate the attainment of broader corporate governance and economic objectives.

Originality/value

This article adds new insights to the literature on the role of managerial military experience in decision-making processes, financial reporting outcomes and firm performance by employing the upper echelons and imprinting theoretical perspectives.

Details

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

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Article
Publication date: 12 December 2022

Donald Nordberg

This article explicates the notion of using a “theoretical lens” to interpret research data, which has grown increasingly common in recent decades, often without a second thought…

Abstract

Purpose

This article explicates the notion of using a “theoretical lens” to interpret research data, which has grown increasingly common in recent decades, often without a second thought about the implications of use of a mere metaphor in the pursuit of truth. Poets may not question that metaphors reveal truths, but should social scientists accept that?

Design/methodology/approach

It looks first at what theory means, then – and in greater detail – what the metaphor of a lens entails.

Findings

Drawing on the base analogy in optics, it identifies four mechanisms through which theory might act as a lens – adjustment, correction, distortion and augmentation-suppression, with examples based on theories of business strategy and organisation studies.

Research limitations/implications

These four mechanisms involve two different ways of seeing – better and differently. With adjustment and correction see better what is, or perhaps what was. With distortion and especially augmentation-suppression, we see differently, which helps us imagine what might be, or what we might have overlooked. They help us escape narrow silos of thinking. Researchers and students alike need to be aware of all four lenses of theory and be ready to experiment.

Originality/value

It argues that if some theories try to help us see better, others push us to see differently, with implications for the practice and teaching of research methods.

Details

International Journal of Organization Theory & Behavior, vol. 26 no. 1/2
Type: Research Article
ISSN: 1093-4537

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Article
Publication date: 28 July 2023

Le Xu

Research on the organizational ramifications of chief executive officer (CEO) greed remains scarce. This study intends to fill this gap by examining the impact of CEO greed on an…

Abstract

Purpose

Research on the organizational ramifications of chief executive officer (CEO) greed remains scarce. This study intends to fill this gap by examining the impact of CEO greed on an important yet risky corporate strategy, corporate tax avoidance (CTA). Drawing on upper echelons theory, the authors argue that greedier CEOs tend to engage in more CTA. The relationship is weaker when CEOs experienced economic recessions in their early career and stronger when CEOs are endowed with equity ownership of their respective firms.

Design/methodology/approach

The authors test the hypotheses with data from US public firms from 1997 to 2008 and employ the ordinary least square regression analysis to analyze the hypothesized relationships. The authors also test the robustness of the results by performing the two-stage least square regression and propensity score matching analyses.

Findings

The findings lend broad support to all the hypotheses. The authors find that greedier CEOs tend to engage in more CTA by paying lower corporate taxes. The impact of greed on CTA is attenuated when CEOs are recession CEOs and is exacerbated when CEOs own large numbers of firm shares.

Originality/value

This paper contributes to the upper echelons research by investigating a novel executive personal characteristic, greed, and its negative impact on an important organizational outcome. This paper also contributes to the growing tax research that recognizes the important role executives play in shaping corporate tax strategies.

Details

Journal of Strategy and Management, vol. 17 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 4 July 2023

Miaomiao Li, Guikun Cao, Haibo Li, Zhaoxing Hao and Lu Zhang

The purpose of this study is to explore how government subsidies influence technology innovation in new-energy enterprises in the new era of Industry 4.0. Specifically, this study…

Abstract

Purpose

The purpose of this study is to explore how government subsidies influence technology innovation in new-energy enterprises in the new era of Industry 4.0. Specifically, this study investigates the mediating effect of digital transformation and the moderating effect of a top management team (TMT) with digital experience.

Design/methodology/approach

Using a sample of 225 listed new-energy companies, with annual information, patent data, and financial data for the years 2010–2020, this study employs panel fixed effect regression models to obtain the results.

Findings

This study finds strong evidence that government subsidies promote the technology innovation of new-energy enterprises, and digital transformation partially mediates the effect of government subsidies on technology innovation. In addition, a TMT's digital experience moderates the effect of government subsidies on digital transformation, but has no significant moderating effect on the relationship between digital transformation and technology innovation. Further analysis shows that subsidies make a sustained contribution to both digital transformation and technological innovation over the next two years. The digital subsidies have a stronger role in promoting digital transformation and further technological innovation through digital transformation.

Practical implications

The Chinese government needs to continue to intermittently increase subsidies for new-energy enterprises, and focus on guiding enterprises' digital transformation. Chinese new-energy enterprises should pay attention to the importance of having TMTs with digital experience, make full use of government subsidies, actively implement digital transformation, and improve their innovation levels.

Originality/value

A new conceptual framework is proposed to examine the relationships between government subsidies, digital transformation, a TMT's digital experience, and technology innovation. This paper provides an important theoretical basis and practical reference for improving the technology innovation ability of Chinese new-energy enterprises, and the high-quality development of renewable energy in the context of Industry 4.0.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 12 December 2023

Peiyuan Huang, Junguang Gao, Wenyuan Cai and Fuzhen Gu

This study aims to use institutional and upper echelons theories to comprehensively investigate the intricate interplay between TMT legal expertise and firms' adaptive strategies…

Abstract

Purpose

This study aims to use institutional and upper echelons theories to comprehensively investigate the intricate interplay between TMT legal expertise and firms' adaptive strategies in legal contexts, notably within emerging economies. It explores how upper echelons experiences shape opportunistic compliance strategies, impacting value and risk perceptions. Drawing on upper echelons theory, the research probes how TMT legal expertise molds firms’ involvement in significant lawsuits, accounting for influential roles. It scrutinizes TMT’s impact on legal strategies, positing that managerial discretion emerges from environmental factors, organizational attributes and executive traits. The study underscores TMT’s internal incentives and external factors’ interplay, molding strategic legal engagement.

Design/methodology/approach

To validate this framework, statistical analysis is performed on data from 2,584 Chinese-listed firms. The data set spans 2010–2015, with 5,713 material lawsuits. Chosen due to reliable institutional-level incentives data from the China Market Index Database, years 2016–2019 are excluded for methodological disparities. Moreover, 2007–2009 is omitted to mitigate the potential financial crisis impact. This study’s 11,272 observations ensure robust empirical exploration, offering insights into the interplay of TMT legal expertise, institutional factors and firms’ legal strategies.

Findings

The study reveals that firms led by executives with legal expertise are more prone to engage in significant lawsuits, indicating strategic use of legal skills. TMT age moderates this, with older teams less likely to engage. TMT tenure’s effect remains unclear due to tenure-risk preference complexity. Institutional factors matter; less legally mature regions reduce managers’ legal risk intention. Results confirm hypotheses and highlight executive human capital’s impact on firms’ legal strategies.

Research limitations/implications

This study acknowledges contributions while highlighting limitations, including the need for detailed distinctions in lawsuit roles and exploration of heterogeneous TMT power dynamics. Further research is proposed for nuanced power dynamics and comprehensive TMT legal background data. The study advances upper echelons theory by introducing TMT legal expertise as a factor influencing strategic lawsuit behavior. It challenges institutional theory by showing the adaptable legal context, beyond fixed constraints. Moderating factors – group risk attitude and external knowledge – deepen understanding of upper echelons’ impact. Enhanced data collection is encouraged to address limitations and refine findings.

Practical implications

This study’s implications extend to managerial practices. Firms should acknowledge the dynamic legal system, using TMT legal expertise for strategic legal challenges. Executives should pragmatically approach regulations. While legal professionals enhance compliance, caution is needed in selecting TMT members with legal expertise due to the risk of misusing it for unnecessary litigation, potentially misaligned with financial performance goals.

Originality/value

This study combines institutional and upper echelons theories to explore TMT legal expertise’s impact on firms’ adaptive strategies in emerging economies. It challenges the idea of a universally constraining legal environment and highlights how TMT legal expertise enhances firms’ management of complex legal risks. The research introduces TMT legal expertise as an influencing factor in strategic lawsuits, revealing nuanced relationships between legal contexts and strategic decisions. The findings enrich upper echelons theory, challenge conventional institutional views and identify moderating factors that deepen the understanding of upper echelons’ influence in legal landscapes.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 23 August 2023

Galina Shirokova, Nailya Galieva, Diana Doktorova, Joshua V. White and Louis Marino

This study examines the relationship between strategic entrepreneurial behaviors (SEBs) and the performance of small and medium-sized enterprises (SMEs) in an emerging market…

Abstract

Purpose

This study examines the relationship between strategic entrepreneurial behaviors (SEBs) and the performance of small and medium-sized enterprises (SMEs) in an emerging market context. The authors expand upon prior work in this area by building and testing a model that assesses the moderating effect of CEOs’ narcissism and Machiavellianism on the relationship between SEBs and SME performance.

Design/methodology/approach

To test the authors’ theoretical model, the authors use the results of a larger data collection project in Russia to create a national random sample of 372 Russian SMEs that were approached between August and November 2019.

Findings

The authors found support for the positive relationship between SEBs and SME performance. Additionally, the authors found that CEO narcissism and Machiavellianism strengthen the relationship between SEBs and firm performance.

Originality/value

This study is an important step toward enriching the understanding of the role of CEO personality traits in shaping the efficiency of entrepreneurial behavior at the firm level. Extending previous research, the authors show that SEBs have a positive effect on firm performance in an emerging market context. Additionally, the authors contribute insight about how personality characteristics of CEOs, specifically narcissism and Machiavellianism, influence the relationship between entrepreneurial behavior and firm performance. Finally, the authors’ research contributes to the development of strategic leadership theory: the results offer insight to scholars regarding the potentially beneficial attributes of otherwise “dark” leaders.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 27 July 2023

Yiyang Gu, Peng Wu and Ruixue Du

The authors intend to investigate the relations between corporate strategic positioning and environmental information disclosure (EID) behaviors in the context of the circular…

Abstract

Purpose

The authors intend to investigate the relations between corporate strategic positioning and environmental information disclosure (EID) behaviors in the context of the circular economy. The authors argue that the development of the circular economy is crucial to address environmental issues and achieve sustainable development, and companies play a vital role in this process as micro-entities. By examining corporate EID behaviors, the authors could understand their adoption of circular practices to a certain extent.

Design/methodology/approach

The authors conduct a content analysis of companies' annual fiscal reports, social responsibility reports and environmental reports and develop text-based proxies for both strategic positioning and EID quality to explore the relationship between them.

Findings

The authors find that corporate strategic positioning does affect corporate EID behaviors. Specifically, firms that implement a prospector strategy are more likely to engage in high-quality EID. Furthermore, the results suggest that green innovation is one of the mediators through which strategic positioning affects EID. Compared with defenders, prospectors are more likely to engage in green innovation, which, in turn, leads to higher-quality EID and demonstrates a more active approach to the circular economy.

Originality/value

This study contributes to the literature on strategic positioning and corporate EID by providing empirical evidence on the impact of corporate strategic positioning on EID behaviors. Moreover, the study employs a textual analysis approach to measure corporate strategy and EID, which is a relatively new research method in this field.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 14 November 2023

Xiaohui Xu and Yi Liu

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the…

Abstract

Purpose

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Design/methodology/approach

This study uses data from Chinese A-share listed companies from 2001 to 2021 and employ panel fixed model and moderating effect model to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Findings

The findings of this study reveal that managerial short-termism exerts negative influence on green innovation. Digital transformation enables firms to reduce the adverse effect of managerial short-termism on green innovation because digital transformation enhances information processing ability and then improves internal corporate governance and analyst coverage. Moreover, the moderating role of digital transformation is more prominent for firms with lower internal corporate governance, for firms with less analyst coverage and for non-state-owned enterprises.

Originality/value

This paper intends to address the following two questions: what is the impact of managerial short-termism on green innovation and what is the role of digital transformation in the two variables’ association? By using data of Chinese A-share listed companies from 2001 to 2021 and developing two individual indexes to measure managerial short-termism and digital transformation, the authors empirically test these above two questions. The results of this study indicate that: First, drawn on time-oriented theory and upper echelon theory, managerial short-termism has an adverse effect on firms’ green innovation. Second, digital transformation enables firms to reduce the negative effect of managerial short-termism on green innovation. Furthermore, the moderating mechanism tests show that the corporate governance effects of digital transformation play a supervisory role that impels managers to reduce short-term investments and promote firms’ green R&D investments, which helps to reduce the negative effect of managerial short-termism on green innovation. Additionally, the heterogeneity checks show that the moderating role of digital transformation in the relation between managerial short-termism and green innovation is more prominent for firms with lower internal corporate governance, with less analyst coverage and for non-state-owned enterprises.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 17 no. 3/4
Type: Research Article
ISSN: 2071-1395

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

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