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1 – 10 of over 4000Jinfang Tian, Xiaofan Meng, Lee Li, Wei Cao and Rui Xue
This study aims to investigate how firms of different sizes respond to competitive pressure from peers.
Abstract
Purpose
This study aims to investigate how firms of different sizes respond to competitive pressure from peers.
Design/methodology/approach
This study employs machine learning techniques to measure competitive pressure based on management discussion and analysis (MD&A) documents and then utilises the constructed pressure indicator to explore the relationship between competitive pressure and corporate risk-taking behaviours amongst firms of different sizes.
Findings
We find that firm sizes are positively associated with their risk-taking behaviours when firms respond to competitive pressure. Large firms are inclined to exhibit a high level of risk-taking behaviours, whereas small firms tend to make conservative decisions. Regional growth potential and institutional ownership moderate the relationships.
Originality/value
Utilising text mining techniques, this study constructs a novel quantitative indicator to measure competitive pressure perceived by focal firms and demonstrates the heterogeneous behaviour of firms of different sizes in response to competitive pressure from peers, advancing research on competitive market pressures.
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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.
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Håvard Ness, Jarle Aarstad and Sven Arne Haugland
This study aims to investigate how and to what extent structural network properties affect dyadic negotiation behavior in tourism destination ecosystems. Specifically, this study…
Abstract
Purpose
This study aims to investigate how and to what extent structural network properties affect dyadic negotiation behavior in tourism destination ecosystems. Specifically, this study addresses negotiation behavior in terms of problem-solving and contending, because these two key strategies reflect the integrative and distributive aspects of dyadic interactions.
Design/methodology/approach
This study relies on network data and dyadic survey data from nine mountain tourism destinations in Southeastern Norway. The structural network properties the authors research are triadic closure – the extent to which a dyad has common ties to other actors – and structural equivalence – the similarities in networking patterns that capture firms’ competition for similar resources. In addition, the authors also study a possible effect of relationship duration on negotiation behavior.
Findings
Triadic closure and relationship duration have positive effects on problem-solving, and structural equivalence tends to decrease problem-solving, although the effect is inconsistent; none of these three independent variables was found to affect contending negotiation behavior.
Research limitations/implications
This study shows that a dyad’s structural network embeddedness has implications for negotiation behavior. Further research is encouraged to develop this theoretical perspective.
Originality/value
This study is a pioneering investigation of how structural network properties affect dyadic negotiation behavior in ongoing coproducing relationships in real-world destination ecosystems.
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Adah-Kole Emmanuel Onjewu, Richard B. Nyuur, Salima Paul and Yong Wang
Although recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation…
Abstract
Purpose
Although recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation behaviour and digitalization activities increase (1) sales and (2) cash flow. Thus, predicated on a novel strategy creation perspective, this inquiry aims to investigate the crisis behaviour, sales and cash flow performance of 528 SMEs in Morocco.
Design/methodology/approach
Novel links between (1) aggregate wage cuts, (2) variable operating hours, (3) deferred payment to suppliers, (4) deferred payment to tax authorities and (5) sales performance are developed and tested. A further link between sales performance and cash flow is also examined and the analysis is conducted using a non-linear structural equation modelling technique.
Findings
While there is a significant association between strategy creation behaviours and sales performance, only variable operating hours have a positive effect. Also, sales performance increases cash flow and this relationship is substantially strengthened by e-commerce digitalization and innovation.
Originality/value
Theoretically, to the best of the authors’ knowledge, this is one of the first inquiries to espouse the strategy creation view to explain SMEs' crisis-time behaviour and digitalization. For practical purposes, to supplement Moroccan SMEs' propensity to seek tax deferrals, it is argued that debt and equity support measures are also needed to boost sales performance and cash flow.
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Ali Amin, Rizwan Ali, Ramiz Ur Rehman and Collins G. Ntim
This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this…
Abstract
Purpose
This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this relationship.
Design/methodology/approach
This study used 2,647 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2013–2021. To test the hypotheses, the authors used ordinary least squares regression and, to resolve the possible endogeneity problem, the authors used system generalized method of moments technique.
Findings
Drawing insights first from upper echelons theory, the authors report that CEOs with business, economics, finance and/or management educational background and female CEOs reduce firms’ risk-taking behaviour. Further, using insights from social and organizational identity theoretical perspectives, the results indicate that due to strong family affiliation and organizational identity, family owners exhibit risk aversion behaviour and moderate this relationship.
Originality/value
This study provides novel evidence of risk averse behaviour of CEOs with business, economics, finance and/or management educational background and female CEOs along with moderating impact of family ownership on this relationship in an emerging economy. Overall, the results extend empirical support for upper echelons and social identity theories in an emerging market context.
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Rida Belahouaoui and El Houssain Attak
This study aims to analyze the tax compliance behavior of family firms by integrating social and psychological norms with legitimacy determinants, focusing specifically on the…
Abstract
Purpose
This study aims to analyze the tax compliance behavior of family firms by integrating social and psychological norms with legitimacy determinants, focusing specifically on the Moroccan context.
Design/methodology/approach
Employing a qualitative research design, the study conducted semi-structured interviews with 30 chief executive officers (CEOs) of Moroccan family firms. The data were analyzed using thematic analysis to unravel the interplay between individual beliefs and societal norms.
Findings
The findings reveal a complex interplay between the personal norms of CEOs and chief financial officers (CFOs) and wider societal and cultural expectations, significantly influencing tax compliance behavior. The study identifies the multifaceted nature of tax compliance, which is shaped by personal ethics, family values and the dominant societal tax culture.
Research limitations/implications
The research is limited by its qualitative approach and focus on Moroccan family businesses, which may not be generalizable to other contexts. Future studies could use a quantitative approach and expand to other geographical settings for a more comprehensive understanding.
Practical implications
Insights from the study can assist policymakers and tax authorities in developing culturally sensitive tax compliance strategies that resonate with family business values.
Social implications
The research underscores the importance of considering sociocultural dimensions in tax compliance, fostering a more cooperative relationship between family businesses and tax authorities.
Originality/value
The study contributes a novel perspective by synthesizing social, psychological and legitimacy factors in understanding tax compliance in the unique context of family businesses.
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Yuzhong Lu and Yanqi Sun
This study examined the influence of corporate governance (CG) in relation to venture capital (VC) investment on invested firm's corporate social responsibility (CSR) performance…
Abstract
Purpose
This study examined the influence of corporate governance (CG) in relation to venture capital (VC) investment on invested firm's corporate social responsibility (CSR) performance in the Chinese context. More specifically, this paper examined the mediation of the proportion of independent directors (INDD), management shareholding (MSH) and executives' political connections (POLC) in the above-mentioned relationship.
Design/methodology/approach
This empirical study performed multiple mediation testing and bootstrap mediation robustness test on data from Chinese A-class shares IPO companies between 2010 and 2018.
Findings
The results of direct relationship analysis showed that VC support is detrimental to firm' CSR performance, consistent with previous research studies. The indirect effect analysis showed that VC reduced firm' CSR through reduction of INDD on board and increased MSH. Conversely, VC contributed to firm's CSR through higher POLC, which confirmed the significance of the joint mediation model.
Practical implications
This study offers stakeholders the opportunity to develop a deeper understanding of the role of VC institutions, independent directors and executives, in terms of firm's CSR, as well as provides insights on control rights allocation and policy drafting on independent directors when considering accessing VC support.
Originality/value
By analyzing the mediation model of the VC–CSR relationship, this paper provides evidence to enrich the debate on the role of CG in the relation between VC and firm's CSR.
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This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights…
Abstract
Purpose
This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights into how firms strategically respond to government’s environmental initiatives through their disclosure and investment practices.
Design/methodology/approach
This study uses a textual analysis of GWRs from China’s provinces. The frequency and change rate of environmental keywords in these reports are used as a measure of the government’s environmental initiatives.
Findings
This study finds that environmental disclosure scores in environmental, social and governance (ESG) reports increase with the frequency or change rate of environmental keywords in provincial GWRs. This effect is more pronounced for non-state-owned enterprises, firms in highly marketized provinces or those listed in a single capital market. However, there is no significant relationship between firms’ environmental investments and government initiatives, except for cross-listed firms in provinces with consistently high frequency of environmental keywords in their GWRs.
Practical implications
The findings indicate that government environmental initiatives can shape firms’ disclosure behaviors, yet have limited influence on investment decisions, suggesting that environmental disclosure could potentially be opportunistic. This underscores the need for more effective strategies to stimulate firms’ environmental investments.
Originality/value
This study provides valuable insights into the differential impacts of government environmental initiatives on firms’ disclosure and investment behaviors, contributing to the understanding of corporate environmental responsibility in the context of government initiatives.
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Neeraj Jain and Smita Kashiramka
This study aims to investigate the effects of peers on corporate payout policies in one of the largest emerging markets – India. It also examines the motives for mimicking payout…
Abstract
Purpose
This study aims to investigate the effects of peers on corporate payout policies in one of the largest emerging markets – India. It also examines the motives for mimicking payout decisions.
Design/methodology/approach
The sample is composed of 3,024 non-financial and non-government firms listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for the period 1995 to 2020. To encounter the endogeneity problem, the instrumental variable technique based on peer firms' idiosyncratic risk is used to estimate the effects of peers on firms' payout policy. To define peer reference groups, the authors use the basic industry classification of the firms.
Findings
The results indicate a significant positive impact of peers on firms' dividend policies in India. A firm with all dividend-paying peers is more likely to declare dividends than the one with no dividend-paying peers. Further, peer effects are found to be more pronounced amongst larger and older firms, thus supporting the rivalry theory of mimicking.
Originality/value
To the best of the authors' knowledge, the present study is the first of its kind that attempts to understand peer effects on payout decisions in an emerging market India, that offers a unique institutional setting. Moreover, the authors extend the existing literature by investigating the peer effects on a firm's payout policies considering various firm-level characteristics, such as growth opportunity, cash holding, financial constraint and profitability, which previous studies have not taken into consideration. These results provide additional insights into the heterogeneity and motives behind peer effects.
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Xue Yang, Luying Zhao, Yanli Yang and Chang Li
This study aims to complement existing studies by investigating the impact of different corporate social responsibility (CSR) information disclosed by peer listed stars (i.e…
Abstract
Purpose
This study aims to complement existing studies by investigating the impact of different corporate social responsibility (CSR) information disclosed by peer listed stars (i.e. governance information [GI] and output information [OI]) on focal firms’ responsive CSR (RCSR) and strategic CSR (SCSR) practices. The authors also investigate the influence of different boundary conditions (i.e. founders’ social status [SS] and industry pollution intensity).
Design/methodology/approach
Based on the listed stars of 16 industries and their 4,096 private peers in China, the authors use the least squares method and logistic regression models to analyze the data set.
Findings
The results indicate that the GI of peer listed stars can only positively affect firms’ RCSR behavior. The OI of peer listed stars has a positive effect on firms’ SCSR behavior while negatively affecting firms’ RCSR behavior. The SS of focal firms’ founders and their interaction with the industry’s pollution level strengthen the abovementioned positive relationships while weakening the negative ones.
Practical implications
This study provides insights into the role of listed stars in influencing peer firms’ CSR activities, offering important practical implications for both policymakers and managers.
Originality/value
This study extends the recent discussion on peer effects of CSR by elucidating the peer star effect on CSR and confirms that firms may adopt heterogeneous CSR practices to achieve sustainable growth by investigating peer firms’ different responses to their listed stars’ different CSR information. Moreover, by introducing the SS of founders and the pollution intensity of the industry as boundary conditions, this study enriches the research context on CSR activities.
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