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Open Access
Article
Publication date: 2 January 2024

Ewald Aschauer and Reiner Quick

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

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Abstract

Purpose

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

Design/methodology/approach

In this qualitative study guided by the theoretical framework of institutional theory, the authors conducted 25 semi-structured interviews in seven European countries, including 16 interviews with audit partners from Big 4 firms, 6 with audit team members, 2 with interviewees from second-tier audit firms and 1 with a member of an oversight body.

Findings

The authors show that the central rationale for audit firms to implement SSCs is economic rather than external legitimacy. The authors find that SSC implementation has substantial effects on audit practices, particularly those related to standardisation, coordination and monitoring activities. The authors also highlight the potential impacts on audit quality.

Originality/value

By exploring the motivation for and effects of SSC implementation amongst audit firms, the authors offer insights into the best practices related to subsequent change processes and audit quality.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 24 September 2024

Pedro Mota Veiga

This study aims to find the key drivers of green innovation in family firms by examining firm characteristics and geographical factors. It seeks to develop a conceptual framework…

Abstract

Purpose

This study aims to find the key drivers of green innovation in family firms by examining firm characteristics and geographical factors. It seeks to develop a conceptual framework that explains how internal resources and external environments influence environmental innovation practices in these businesses.

Design/methodology/approach

Using machine learning (ML) methods, this study develops a predictive model for green innovation in family firms, drawing on data from 3,289 family businesses across 27 EU Member States and 12 additional countries. The study integrates the Resource-Based View (RBV) and Location Theory to analyze the impact of firm-level resources and geographical contexts on green innovation outcomes.

Findings

The results show that both firm-specific resources, such as size, digital capabilities, years of operation and geographical factors, like country location, significantly influence the likelihood of family firms engaging in environmental innovation. Larger, technologically advanced firms are more likely to adopt sustainable practices, and geographic location is crucial due to different regulatory environments and market conditions.

Research limitations/implications

The findings reinforce the RBV by showing the importance of firm-specific resources in driving green innovation and extend Location Theory by emphasizing the role of geographic factors. The study enriches the theoretical understanding of family businesses by showing how noneconomic goals, such as socioemotional wealth and legacy preservation, influence environmental innovation strategies.

Practical implications

Family firms can leverage these findings to enhance their green innovation efforts by investing in technology, fostering sustainability and recognizing the impact of geographic factors. Aligning innovation strategies with both economic and noneconomic goals can help family businesses improve market positioning, comply with regulations and maintain a strong family legacy.

Originality/value

This research contributes a new perspective by integrating the RBV and Location Theory to explore green innovation in family firms, highlighting the interplay between internal resources and external environments. It also shows the effectiveness of machine learning methods in predicting environmental innovation, providing deeper insights than traditional statistical techniques.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 11 September 2024

Anna Izotova and María Teresa Bolívar-Ramos

Due to the constantly increasing competitiveness along with the complexity of knowledge, firms perceive collaboration as a key strategy that preserves firms' radical innovation…

Abstract

Purpose

Due to the constantly increasing competitiveness along with the complexity of knowledge, firms perceive collaboration as a key strategy that preserves firms' radical innovation performance. In this context, this paper aims to examine how firms’ partners’ diversity in open innovation activities influences the development of radical innovations, critical for social development. In particular, this study analyzes how the functional and geographical breadth of the firm’s collaboration portfolio affects its radical innovation performance. Furthermore, it also explores the role of firm size as a moderator in the relationships proposed.

Design/methodology/approach

This research employs panel data analysis, using a sample of 4,677 Spanish firms, with data sourced from the PITEC database.

Findings

The results of this study show that there is an inverted U-shaped relationship between the functional and the geographical breadth of collaborations and the firms’ radical innovation performance. Moreover, this study finds partial support for the moderating role of firm size, in the sense that small and medium-sized enterprises (SMEs) and large firms vary in their optimal number of diversity of partners.

Originality/value

This research provides a better understanding on how partners’ functional and geographical diversity, along with organizational characteristics such as firm size, affect how firms benefit from collaboration for innovation. This study shows that both SMEs and large firms experience diminishing returns when their collaboration networks become overly diverse in pursuit of radical innovation, due to increased costs. However, in SMEs, the turning point occurs at a later stage, consistent with the idea that small firms need broader functional networks to access complementary and novel resources they usually lack.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 11 July 2024

Francesco Aiello, Lucia Errico and Sandro Rondinella

This paper investigates whether and to what extent operating in inner areas affects the profitability of innovative Italian small and medium-sized enterprises (SMEs) over…

Abstract

Purpose

This paper investigates whether and to what extent operating in inner areas affects the profitability of innovative Italian small and medium-sized enterprises (SMEs) over 2012–2018.

Design/methodology/approach

Guided by the National Strategy for Inner Areas and the “Investment Compact,” this study distinguishes between inner and core innovative SMEs. It employs various econometric models to estimate a regression for the return on assets of SMEs, differentiating between firms operating in inner and non-inner areas of northwest, northeast, centre and south Italy.

Findings

Findings reveal that innovative SMEs in inner areas generally exhibit lower profitability compared to those in non-inner municipalities. However, huge heterogeneity in results is observed across the country. Specifically, innovative SMEs in the inner areas of the south register lower profitability than those operating in non-inner zones. Conversely, innovative SMEs located in the inner municipalities of northwest and northeast Italy show higher profitability than their peers in non-inner areas. The results imply that targeted policies for inner areas are crucial. However, due to the diversity of local impacts, a differentiated approach, depending on the geographic context, is necessary.

Originality/value

The study aims to explore the relationship between inner areas and the performance of innovative SMEs in Italy. More precisely, it examines the effect of operating in a municipality located within an inner area on the profitability of innovative SMEs. This issue has been overlooked in existing literature. Importantly, we aim to determine whether there is a heterogeneous impact based on geographical localisation, specifically in the Northwest, the Northeast, the Centre and the South of the country. Therefore, this paper contributes to the literature by investigating the factors influencing the performance of innovative SMEs and suggesting new policy recommendations for developing inner areas in Italy.

Details

Journal of Economic Studies, vol. 51 no. 9
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 18 September 2024

Akindele Babatunde Omotesho and Ayodeji Michael Obadire

This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019.

Abstract

Purpose

This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019.

Design/methodology/approach

The study used the estimated expected returns method to identify abnormal returns during the deal announcement period, applying event study analysis with both univariate and multivariate regression models to detect cumulative abnormal returns around the announcement timeframe.

Findings

The results show a short-term positive return increase for acquiring firms, controlling for deal-specific characteristics like target firm location and payment methods. The authors observed a preference for cash financing across domestic and cross-border transactions. Multivariate analysis revealed insignificance between payment methods and deal characteristics like cross-border acquisitions and diversification.

Research limitations/implications

The study’s focus on publicly traded firms in the UK and the absence of a comparative analysis across different regions and markets limits the sample size and may impact the generalizability of findings.

Practical implications

The study proposes three practical implications. Firstly, firms should tailor payment methods to each transaction, aligning with strategic goals to optimize value and mitigate risks. Secondly, decision-makers must prioritize comprehensive due diligence and strategic alignment throughout M&A processes to enhance success and maximize synergies. Finally, analysing broader strategic contexts and regulatory landscapes when structuring transactions enables goal attainment, such as market expansion or value creation.

Social implications

The study’s findings can promote transparency and accountability among corporate decision-makers in M&A transactions. Stakeholders can advocate for transparent decision-making processes, enhancing trust in corporate governance.

Originality/value

This study provides valuable insights into the impact of payment methods on shareholder value in M&A transactions involving UK companies, informing strategic decision-making and contributing to the understanding of corporate finance dynamics.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 12 December 2023

Marcello Cosa, Eugénia Pedro and Boris Urban

Intellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its measurement remains complex. To better navigate these challenges, the authors…

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Abstract

Purpose

Intellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its measurement remains complex. To better navigate these challenges, the authors propose the Integrated Intellectual Capital Measurement (IICM) model, an innovative, robust and comprehensive framework designed to capture IC amid business uncertainty. This study focuses on IC measurement models, typically reliant on secondary data, thus distinguishing it from conventional IC studies.

Design/methodology/approach

The authors conducted a systematic literature review (SLR) and bibliometric analysis across Web of Science, Scopus and EBSCO Business Source Ultimate in February 2023. This yielded 2,709 IC measurement studies, from which the authors selected 27 quantitative papers published from 1985 to 2023.

Findings

The analysis revealed no single, universally accepted approach for measuring IC, with company attributes such as size, industry and location significantly influencing IC measurement methods. A key finding is human capital’s critical yet underrepresented role in firm competitiveness, which the IICM model aims to elevate.

Originality/value

This is the first SLR focused on IC measurement amid business uncertainty, providing insights for better management and navigating turbulence. The authors envisage future research exploring the interplay between IC components, technology, innovation and network-building strategies for business resilience. Additionally, there is a need to understand better the IC’s impact on specific industries (automotive, transportation and hospitality), Social Development Goals and digital transformation performance.

Details

Journal of Intellectual Capital, vol. 25 no. 7
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 19 September 2024

Mihailo Paunović, Vesna Milovanović, Dijana Štrbac and Ivana Domazet

This paper analyses the role of intellectual capital (IC) as a factor of the financial performance of entrepreneurial firms, which are recognized as the main drivers of economic…

Abstract

Purpose

This paper analyses the role of intellectual capital (IC) as a factor of the financial performance of entrepreneurial firms, which are recognized as the main drivers of economic growth and employment.

Design/methodology/approach

The sample consists of 188 business owners from Serbia. The primary data are collected using the questionnaire, while the secondary data come from the annual financial statements of their companies. The elements of IC as independent variables are grouped into three components: human, structural and relational capital; sales revenue and operating profit CAGR (5y) are used as dependent variables, while company size and industry type are used as control variables. Statistical analysis involves factor and regression analyses.

Findings

The results reveal that IC components contribute to the long-term financial performance of entrepreneurial firms. Specifically, the following elements have positive effects on financial performance: knowledge of the entrepreneur, process improvement and organisational culture. On the other hand, entrepreneurs’ social skills and tenacity were found to have a negative impact on revenue and operating profit growth, while support from informal networks had a negative effect on the growth of sales revenue.

Originality/value

This study aims to fill a gap in the literature on the impact of IC on the financial performance of entrepreneurial firms.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 3 January 2023

Femi-favour Olabode Olasunkanmi, Dubem Isaac Ikediashi and Ikenna Reginald Ajiero

The role of construction industry in harnessing human and material resources of a nation cannot be overemphasised; hence, the emergence of the requirement of leadership. This…

Abstract

Purpose

The role of construction industry in harnessing human and material resources of a nation cannot be overemphasised; hence, the emergence of the requirement of leadership. This study aims to assess the usage of factors of transactional leadership style (TSLS) by the project managers (PMs) in the Nigeria construction industry.

Design/methodology/approach

A survey research design approach with questionnaire as an instrument of gathering data was adopted. Out of 1,233 questionnaires distributed, data from 975 received with acceptable feedback were analysed using both descriptive and inferential statistics.

Findings

This study revealed the following factors under active management by exception as the TSLS factors often employed by PMs in Nigeria. These factors are the three frequently used factors: they are: “always give clear and final instructions to be implemented in the project”; “always observed the progress of the project, assessed risk and took precaution to avoid mistakes in the project”; and “always closely monitor performance for errors needing correction”. This study concludes that it is imperative for PMs in the study area to adopt and incorporate these factors to ensure continuous successful delivery of construction projects.

Practical implications

Therefore, it is hoped that the findings of this research will help the construction industry managers to address the age-long but unrecognised leadership problem confronting the sector, thereby boosting project delivery.

Originality/value

The findings establish the appropriateness or otherwise of adoption of factors of transactional leadership, either in part or a whole.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 5
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 3 June 2024

Corrado Andini and Monica Andini

The paper investigates the determinants of the Ordinary Least Squares (OLS) bias of the wage return to graduate education for high-school workers in Portugal.

Abstract

Purpose

The paper investigates the determinants of the Ordinary Least Squares (OLS) bias of the wage return to graduate education for high-school workers in Portugal.

Design/methodology/approach

The study uses matched employer-employee data for Portugal, over the 2002–2012 period, to estimate a wage-schooling model that controls not only for individual observed characteristics, firm observed characteristics and year fixed effects, but also for three high-dimensional vectors of fixed effects – one for employees, one for employers and one for job titles.

Findings

The main results are the following. First, disregarding individual fixed effects is highly problematic, accounting for 48.5% of the OLS bias. Second, disregarding firm fixed effects is also problematic, accounting for 12.3% of the OLS bias.

Research limitations/implications

The implication for the studies in the labor-supply literature that estimate, by means of instrumental variables, the wage returns to in-school work or to on-the-job schooling is that an instrument dealing with employee’s unobserved ability only may fail to meet the exclusion restriction.

Practical implications

Take the typical instrument based on a policy reform that changes the compulsory schooling level in the population. This instrument may well be argued to be correlated with the education of the employee and uncorrelated with the unobserved ability of the employee, but unfortunately it cannot be seen as orthogonal to the unobserved ability of the employer because of its correlation with the (unobserved) education of the manager. This is a simple corollary of the fact that the employee and the manager belong, in general, to the same population.

Social implications

Individuals invest a considerable amount of resources in education, which is seen to have positive effects on several dimensions of individual life. Yet, the estimation of these effects is still surrounded by technical difficulties.

Originality/value

To the best of the authors’ knowledge, this is the first study that uses the Gelbach decomposition to investigate the determinants of the OLS bias of the wage return to graduate education for high-school workers.

Details

International Journal of Manpower, vol. 45 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 24 September 2024

Jiping Niu, Salih Zeki Ozdemir and Young Un Kim

The timeliness and quality of information provided to board members are crucial for them to effectively monitor and advise a firm. This study examines the influence of board…

Abstract

Purpose

The timeliness and quality of information provided to board members are crucial for them to effectively monitor and advise a firm. This study examines the influence of board composition and structure on (1) the board’s actions to mitigate the information asymmetry problem by implementing enterprise information systems (EIS) and (2) the board of directors’ awareness of information asymmetry, their perception of its causes and their efforts to address it.

Design/methodology/approach

Our research employs a mixed-methods approach. First, using data from 115 publicly listed Chinese companies, we empirically assess the likelihood of top-level EIS modules adoption at the firm level. Subsequently, through 23 semi-structured interviews, we aim to gain deeper insights into the behavioral motivations behind directors’ attempts to reduce information asymmetry.

Findings

The study reveals that boards with a higher number of independent directors or with a strategy committee – indicative of a greater concern regarding information asymmetry problems – are more inclined to adopt top-level EIS modules. Additionally, we identify three primary sources of information asymmetry that directors consider significant in prompting the adoption of top-level EIS modules to alleviate perceived information asymmetry.

Originality/value

This study contributes to both the corporate governance and information systems literature. The implementation and utilization of EIS at the board level have not been extensively explored previously. Moreover, while the issue of information asymmetry at the board level is recognized as a critical governance challenge, the ways in which directors perceive and address this issue remain largely unknown. Our research seeks to illuminate this relatively less-explored area.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

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