Search results
1 – 10 of over 6000Imoh Antai, Crispin Mutshinda and Richard Owusu
The purpose of this paper is to introduce a 3R (right time, right place, and right material) principle for characterizing failure in humanitarian/relief supply chains’ response to…
Abstract
Purpose
The purpose of this paper is to introduce a 3R (right time, right place, and right material) principle for characterizing failure in humanitarian/relief supply chains’ response to natural disasters, and describes a Bayesian methodology of the failure odds with regard to external factors that may affect the disaster-relief outcome, and distinctive supply chain proneness to failure.
Design/methodology/approach
The suggested 3Rs combine simplicity and completeness, enclosing all aspects of the 7R principle popular within business logistics. A fixed effects logistic regression model is designed, with a Bayesian approach, to relate the supply chains’ odds for success in disaster-relief to potential environmental predictors, while accounting for distinctive supply chains’ proneness to failure.
Findings
Analysis of simulated data demonstrate the model’s ability to distinguish relief supply chains with regards to their disaster-relief failure odds, taking into account pertinent external factors and supply chain idiosyncrasies.
Research limitations/implications
Due to the complex nature of natural disasters and the scarcity of subsequent data, the paper employs computer-simulated data to illustrate the implementation of the proposed methodology.
Originality/value
The 3R principle offers a simple and familiar basis for evaluating failure in relief supply chains’ response to natural disasters. Also, it brings the issues of customer orientation within humanitarian relief and supply operations to the fore, which had only been implicit within the humanitarian and relief supply chain literature.
Details
Keywords
This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.
Abstract
Purpose
This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.
Design/methodology/approach
A subset of the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index companies was analyzed over the period 2015–2019 using the logistic (fixed-effects) regression model.
Findings
It was found that a weak relationship exists between CEO turnover and firm performance. With respect to board characteristics, board size was found to have a significant role in strengthening the TPR. However, other characteristics, such as board independence, multiple directors, board meetings and board gender diversity, played no role in influencing the TPR.
Research limitations/implications
First, the study period is limited to five years, during which several sample firms did not face any CEO turnover event leading to small sample size. Second, this study considers only the board’s gender diversity, whereas other types of diversity are omitted. Third, this study does not differentiate between insider and professional CEOs.
Practical implications
The findings suggest that regulators should focus on the effective enforcement of laws to strengthen the TPR and improve the monitoring role of boards, particularly in emerging economies like India, which face type II agency problems in addition to traditional principal–agent conflict. The results also offer implications for corporations, investors and academic researchers, highlighting areas that need considerable attention pertaining to corporate governance.
Originality/value
This study discerns the impact of several board-related characteristics on the TPR, particularly after the introduction of the new Companies Act 2013 in the emerging economy of India, where it has not been explored extensively.
Details
Keywords
This study aims to examine how evolutionary and ecological forces shape the market strategy and performance of firms after their organizational form was changed by exogenous shock.
Abstract
Purpose
This study aims to examine how evolutionary and ecological forces shape the market strategy and performance of firms after their organizational form was changed by exogenous shock.
Design/methodology/approach
Hypotheses are developed based on both evolutionary and ecological perspectives and tested using fixed effect logistics models and a sample of 3,110 firms that were privatized during 1998–2007.
Findings
I find that once the organizational form of firms is changed, the market strategy of organizations is shaped by the population density of their old and new organizational forms in their existing market. Moreover, such a market strategy enhances the survival chance of firms.
Originality/value
This study contributes to organizational evolution literature by unpacking the evolution process when exogeneous shock to organizational form takes place. It advances both evolutionary economics and organization ecology theory through integrating them to understand the evolution process of organizations. This study also contributes to the privatization literature through examining the ecological forces that shape the restructuring strategy of firms after privatization and the performance implications of such restructuring.
Details
Keywords
Jing Yi and Jennifer Ifft
Dairy farms, along with livestock and specialty crop farms, face a tight labor supply and increasing labor costs. To overcome the challenging labor market, farm managers can…
Abstract
Purpose
Dairy farms, along with livestock and specialty crop farms, face a tight labor supply and increasing labor costs. To overcome the challenging labor market, farm managers can increase labor-use efficiency through both human resource and capital investments. However, little is known about the relationship between such investments and farm profitability. The purpose of this paper is to examine the relationship between dairy farm financial performance and labor-use efficiency, as measured by labor productivity (milk sold per worker equivalent); labor costs (hired labor cost per unit of milk sold and hired labor cost per worker); and investment in labor-saving equipment.
Design/methodology/approach
Cluster analysis is applied to partition dairy farms into three performance categories (high/middle/low), based on farms’ rate of return on equity, asset turnover ratios and net dairy income per hundredweight of milk. Next, the annual financial rank is fitted into both random- and farm-level fixed-effects ordered logit and linear models to estimate the relationship between dairy farms’ financial performance and labor-use efficiency. This study also investigates the implications of using a single financial indicator as a measure of financial performance, which is the dominant approach in literature.
Findings
The study finds that greater labor productivity and cost efficiency (as measured by hired labor cost per unit of milk sold) are associated with better farm financial performance. No statistically significant relationship is found between farm financial performance and both hired labor cost per worker and advance milking systems (a proxy of capital investment in labor-saving technology). Future studies would benefit from better measurements of labor-saving technology. This study also demonstrates inconsistency in regression results when individual financial variables are used as a measure of financial performance. The greater labor-use efficiency on high-performing farms may be a combination of hiring more-skilled workers and managerial strategies of reducing unnecessary labor activities. The results emphasize the importance of managerial strategies that improve overall labor-use efficiency, instead of simply minimizing total labor expenses or labor cost per worker.
Originality/value
This study examines the importance of labor productivity and labor cost efficiency for dairy farm management. It also develops a novel approach which brings a more comprehensive financial performance evaluation into regression models. Furthermore, this study explicitly demonstrates the potential for inconsistent results when using individual financial variable as a measure of financial performance, which is the dominant measurement of financial performance in farm management studies.
Details
Keywords
The purpose of this paper is to investigate the determinants of the frequency of board meetings as an index for board activity including their monitoring role.
Abstract
Purpose
The purpose of this paper is to investigate the determinants of the frequency of board meetings as an index for board activity including their monitoring role.
Design/methodology/approach
The research sample is composed of 120 UK firms based on their market capitalization for the period from 2003 to 2008. The study applies multinomial logistic modelling and conditional logistic modelling to investigate the frequency of board meetings.
Findings
The study finds that board size and structure are positively related to the frequency of board meetings. In addition, a negative impact of audit committee diligence on the frequency board meetings is reported. The study finds no evidence that the frequency of board meetings are reduced when there is a CEO duality. Finally, the results show that firm size, leverage, free cash flows, and Tobin's Q have an impact on the frequency of board meetings.
Practical implications
This study shows the factors that affect the board effectiveness in the UK, namely that board meetings, board composition, and board size, are key indicators for good internal governance practices and, in turn, enhance board monitoring activities.
Originality/value
The research offers the first major study to examine the determinants of the frequency of board meetings in UK non‐financial firms. The paucity of the UK literature regarding board effectiveness in the UK reinforces the empirical importance of the results for researchers, managers, and UK policy makers.
Details
Keywords
Lailani Laynesa Alcantara and Hitoshi Mitsuhashi
The purpose of this paper is to examine how firms with multimarket contacts in both product and geographic markets make foreign direct investments (FDI) location choices and to…
Abstract
Purpose
The purpose of this paper is to examine how firms with multimarket contacts in both product and geographic markets make foreign direct investments (FDI) location choices and to advance the understanding about how managers with cognitive limits cope with opportunities to take the advantage of mutual forbearance in two types of markets.
Design/methodology/approach
Drawing upon the literatures on multimarket contact and decision making, the authors develop original hypotheses on how multimarket contacts in two types of markets influence firms’ choice of destination for foreign investments. The authors test the hypotheses using longitudinal archival data on foreign market entries of Japanese auto parts makers.
Findings
The authors find that when choosing FDI locations, firms reduce the cognitive burdens of coping with multimarket contacts in the two types of markets by focussing exclusively on what is perceived as relevant to the decision at hand. The authors also find that this propensity is particularly significant for large firms, whereas small firms use different decision rules and avoid entering markets with the greater degree of multimarket contact with prior entrants, whether in product or national market.
Practical implications
Although heuristics simplify competitive environments and reduce managers’ cognitive burdens, such a cost-saving orientation could increase the risk associated with international entry that may end in severe counterattacks from prior entrants, wasteful foreign investments, and substantial entry failures.
Originality/value
This study contributes to the literature by adopting multimarket contact theory to foreign market entry, jointly analyzing two types of multimarket contacts, testing three alternative hypotheses about how boundedly rational managers cope with multimarket contacts in two markets, and demonstrating that managers focus on multimarket contacts only in one type of markets when making entry decisions.
Details
Keywords
Lailani Laynesa Alcantara and Hitoshi Mitsuhashi
The purpose of this paper is to examine the effects of political risk on firms' likelihood of foreign market entry and performance by adopting a strategic view of political risk…
Abstract
Purpose
The purpose of this paper is to examine the effects of political risk on firms' likelihood of foreign market entry and performance by adopting a strategic view of political risk and drawing upon the arguments of multimarket contact theory.
Design/methodology/approach
This study estimates the location choice and performance of Japanese auto parts‐makers using panel regression models.
Findings
The study finds that firms with low multimarket contact in the home country and high multimarket contact in the host country are less likely to avoid politically risky host countries and that firms which entered politically risky host countries exhibit greater performance when the degree of multimarket contact with prior entrants is high.
Research limitations/implications
Although the research design raises a concern about the generalizability of the findings, this study highlights the strategic importance of politically risky markets and suggests the importance of considering competitive interactions with rivals in examining interdependent behavior in foreign direct investments.
Practical implications
Instead of consistently avoiding politically risky markets, managers should actively consider the potential strategic importance of these markets. A post‐entry strategy suggested by the findings is taking positive steps to leverage the benefits of multimarket contacts for managing subsidiaries in politically risky host countries.
Originality/value
Unlike previous studies, this study emphasizes the strategic potential of politically risky markets and takes a view that firms have variable political risk tolerance. Furthermore, the authors' adoption of multimarket contact theory allows a novel approach to benchmarking against rivals for foreign entry decisions.
Details
Keywords
Lisa A. Keister and Randy Hodson
Innovation is critical to organizational survival, competitive advantage, and economic development. Yet the process by which innovative strategic behavior occurs is not well…
Abstract
Innovation is critical to organizational survival, competitive advantage, and economic development. Yet the process by which innovative strategic behavior occurs is not well understood. This paper takes advantage of rapidly changing corporate governance structures and environmental conditions during China's economic transition to explore the role of corporate ownership in shaping firm innovation. We argue that managers draw on internal strengths within external constraints to develop strategies and that the nature of corporate ownership determines the degree to which internal or external factors are salient. We capitalize on differences between Chinese state-owned enterprises (SOEs) and collective enterprises and other non-state firms (CNFs) in the adoption of firm strategies during transition. Analyzing data from 1994 to 1999 on 800 Chinese firms, we study the effect of ownership type on the adoption of four key organizational innovations and identify major strategic groups that developed during reform. The findings provide important insight into the role of corporate governance in influencing strategy formation and adaptation, outcomes that are increasingly important in all economies.
Afshad J. Irani and Le (Emily) Xu
Effective August 23, 2004, the US Securities and Exchange Commission (SEC) requires all firms to disclose restatements via an item 4.02 Form 8‐K filing. However, a significant…
Abstract
Purpose
Effective August 23, 2004, the US Securities and Exchange Commission (SEC) requires all firms to disclose restatements via an item 4.02 Form 8‐K filing. However, a significant number of firms continue to disclose restatements using means other than an 8‐K. Commonly referred to as stealth restatements, the purpose of this paper is to investigate the materiality of restatements disclosed in either the 10‐K or the 10‐Q by comparing them to those disclosed via 8‐K.
Design/methodology/approach
Univariate and multivariate analyses compare the characteristics of and the market reaction to 10‐K/10‐Q restatements to those of 8‐K restatements.
Findings
The authors find stealth restatements are more likely to be those not affecting net income, with longer filing delays, not subject to SEC investigation and made by firms audited by non‐big four accounting firms. The authors document a negative market reaction to 8‐K restatements around the restatement disclosure date. However, for stealth restatements they find no market reaction around the 10‐K/10‐Q filing date and for up to 22 trading days after the 10‐K/10‐Q filings. Research limitations/implications – The study shows a significant difference in materiality between stealth and 8‐K restatements.
Practical implications
The study is important to investors, regulators and academics because it supports the notion that stealth restatements include less significant information relative to that disclosed in 8‐K restatements. This result is in line with the SEC disclosure requirement.
Originality/value
The significant number of stealth restatements since 2004 begs the question as to what kind of information is being disclosed in these restatements. The paper responds to this question.
Details
Keywords
Aiqin Wang, Yaojiang Shi, Qiufeng Gao, Chengfang Liu, Linxiu Zhang, Natalie Johnson and Scott Rozelle
The purpose of this paper is to describe the trends in residential solid waste collection (RSWC) services in rural China over the past decade and analyze the determinants of these…
Abstract
Purpose
The purpose of this paper is to describe the trends in residential solid waste collection (RSWC) services in rural China over the past decade and analyze the determinants of these services using nationally representative data.
Design/methodology/approach
The authors draw on panel data from three rounds of village-level surveys of 101 villages. The three surveys were conducted in 2005, 2008, and 2012 in five provinces. The authors used fixed-effected regression approach to analyze the determinants of these services.
Findings
The results show that in the aftermath of increased investment and policy attention at the national level, the proportion of villages providing RSWC services in rural China increased significantly from 1998 to 2011. However, half of all villages in rural China still did not provide RSWC services as of 2011. Based on econometrics analysis, the authors show that villages that are richer, more populous, and villages with more small hamlets are more likely to provide RSWC services.
Originality/value
The analyses are based on primary survey data and the first to quantify trends in waste management services in the beginning of the twentieth century. The authors believe that the results will have significant policy implications for China in its continuing quest for better waste management policy.
Details