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1 – 10 of 120The novel coronavirus (COVID-19) has caused financial stress and limited their lending agility, resulting in more non-performing loans (NPLs) and lower performance during the II…
Abstract
Purpose
The novel coronavirus (COVID-19) has caused financial stress and limited their lending agility, resulting in more non-performing loans (NPLs) and lower performance during the II wave of the coronavirus crisis. Therefore, it is essential to identify the risky factors influencing the financial performance of Indian banks spanning 2018–2022.
Design/methodology/approach
Our sample consists of a balanced panel dataset of 75 scheduled commercial banks from three different ownership groups, including public, private and foreign banks, that were actively engaged in their operations during 2018–2022. Factor identification is performed via a fixed-effects model (FEM) that solves the issue of heterogeneity across different with banks over time. Additionally, to ensure the robustness of our findings, we also identify the risky drivers of the financial performance of Indian banks using an alternative measure, the pooled ordinary least squares (OLS) model.
Findings
Empirical evidence indicates that default risk, solvency risk and COVAR reduce financial performance in India. However, high liquidity, Z-score and the COVID-19 crisis enhance the financial performance of Indian banks. Unsystematic risk and systemic risk factors play an important role in determining the prognosis of COVID-19. The study supports the “bad-management,” “moral hazard” and “tail risk spillover of a single bank to the system” hypotheses. Public sector banks (PSBs) have considerable potential to achieve financial performance while controlling unsystematic risk and exogenous shocks relative to their peer group. Finally, robustness check estimates confirm the coefficients of the main model.
Practical implications
This study contributes to the knowledge in the banking literature by identifying risk factors that may affect financial performance during a crisis nexus and providing information about preventive measures. These insights are valuable to bankers, academics, managers and regulators for policy formulation. The findings of this paper provide important insights by considering all the risk factors that may be responsible for reducing the probability of financial performance in the banking system of an emerging market economy.
Originality/value
The empirical analysis has been done with a fresh perspective to consider unsystematic risk, systemic risk and exogenous risk (COVID-19) with the financial performance of Indian banks. Furthermore, none of the existing banking literature explicitly explores the drivers of the I and II waves of COVID-19 while considering COVID-19 as a dependent variable. Therefore, the aim of the present study is to make efforts in this direction.
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Mohammed Ali Al-Awlaqi and Ammar Mohamed Aamer
Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several…
Abstract
Purpose
Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.
Design/methodology/approach
This study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.
Findings
The study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.
Originality/value
This is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.
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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.
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Mamdouh Abdelmoula Mohamed Abdelsalam
This paper aims to explore the extreme effect of crude oil price fluctuations and its volatility on the economic growth of Middle East and North Africa (MENA) countries. It also…
Abstract
Purpose
This paper aims to explore the extreme effect of crude oil price fluctuations and its volatility on the economic growth of Middle East and North Africa (MENA) countries. It also investigates the asymmetric and dynamic relationship between oil price and economic growth. Further, a separate analysis for each MENA oil-export and oil-import countries is conducted. Furthermore, it studies to what extent the quality of institutions will change the effect of oil price fluctuations on economic growth.
Design/methodology/approach
As the effect of oil price fluctuations is not the same over different business cycles or oil price levels, the paper uses a panel quantile regression approach with other linear models such as fixed effects, random effects and panel generalized method of moments. The panel quantile methodology is an extension of traditional linear models and it has the advantage of exploring the relationship over the different quantiles of the whole distribution.
Findings
The paper can summarize results as following: changes in oil price and its volatility have an opposite effect for each oil-export and oil-import countries; for the former, changes in oil prices have a positive impact but the volatility a negative effect. While for the latter, changes in oil prices have a negative effect but volatility a positive effect. Further, the impact of oil price changes and their uncertainty are different across different quantiles. Furthermore, there is evidence about the asymmetric effect of the oil price changes on economic growth. Finally, accounting for institutional quality led to a reduction in the impact of oil price changes on economic growth.
Originality/value
The study concludes more detailed results on the impact of oil prices on gross domestic product growth. Thus, it can be used as a decision-support tool for policymakers.
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Farzana Gulzar and Aiman Fayaz
The purpose of this study is to identify factors instrumental in developing entrepreneurial intentions among youth. Although, numerous studies have been conducted focusing on…
Abstract
Purpose
The purpose of this study is to identify factors instrumental in developing entrepreneurial intentions among youth. Although, numerous studies have been conducted focusing on entrepreneurship intention, however, this study attempts to provide an integrated model by means of analyzing the impact of internal (personal) and external (environmental) factors in developing entrepreneurial intentions.
Design/methodology/approach
This cross-sectional study is based on primary and secondary data. A sample of 358 respondents belonging to the age group of 21–25 years from various universities and colleges in Kashmir participated in the study. Primary data collection was done using self-administered questionnaires. A purposive sampling approach was used to identify respondents for the current study. Structural equation modeling has been used for testing hypotheses besides other statistical methods and techniques.
Findings
The study identifies three important antecedents of entrepreneurship intentions, namely, personal competencies, contextual factors and entrepreneurial exposure and tests the relationships using path analysis. It further suggests that there exists a significant relationship between personal competencies, entrepreneurial exposure, contextual elements and entrepreneurial intention.
Originality/value
The paper presents an integrated and comprehensive model of entrepreneurial intentions discussing important antecedents instrumental in developing entrepreneurship intentions among youth considering both personal and environmental factors. It is, therefore, an important contribution toward entrepreneurship literature and of interest to different policymakers and institutions related to entrepreneurship.
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Lin Xiu, Feng Lv and Dirk van Dierendonck
This paper aims to examine the influence of the interplay between servant leadership behaviors and Machiavellianism on leader effectiveness.
Abstract
Purpose
This paper aims to examine the influence of the interplay between servant leadership behaviors and Machiavellianism on leader effectiveness.
Design/methodology/approach
Drawing on trait activation theory and motivation to lead theory, the authors hypothesize that the effect of servant leadership behaviors on perceived leadership effectiveness is manifested differently in teams with high-Machiavellian vs. low-Machiavellian leaders. In teams with low-Machiavellian leaders, servant leadership behaviors are expected to be associated with a cooperative way of handling team conflicts, which enhances employees' leader effectiveness ratings. In contrast, in teams with high-Machiavellian leaders, this mediation role vanishes due to the incongruency between Machiavellian traits and the cooperative context. The authors conducted a two-wave survey-based study and tested the hypotheses with a matched supervisor-employee sample from 310 employees and their leaders in 91 teams.
Findings
The results showed that servant leadership behaviors positively impact leadership effectiveness and that this effect takes place through cooperative team conflict management (TCM) without controlling for leaders' Machiavellian trait. Further analysis shows this mediation mechanism is only strong and significant in teams led by low-Machiavellian leaders, but not high-Machiavellian leaders.
Originality/value
To the authors’ best knowledge, this is the first study that examines the interplay of servant leadership behaviors and Machiavellianism on perceived leader effectiveness.
研究目的
本文旨在探討僕人式領導行為與馬基雅維利主義之間的相互作用會如何影響領導效能。
研究設計/方法/理念
我們根據特質激活理論和領導動機理論、建立了一個假設,這個假設就是: 僕人式領導行為對感知的領導效能所產生並顯示出來的影響、是會視乎團隊是高/強馬基雅維利主義,還是低/弱馬基雅維利主義而有所分別的。若團隊的領導者是低/弱馬基雅維利主義的話,僕人式領導行為大概會與使用合作的方式去處理團隊衝突有相互之關聯,這會提高僱員對領導效能的評分。與此相反,若團隊的領導者是高/強馬基雅維利主義的話,這調節作用和角色將會因馬基雅維利主義的特質與合作的環境之間存在著不協調而消失。我們進行了一個兩波的、以及基於調查的研究,在這研究中,我們利用管理者和員工相應的樣本來測試各個假設;這些樣本包括91個團隊內的310名員工及其領導者。
研究結果
研究結果顯示、僕人式領導行為對領導效能會產生積極的影響,而這影響是透過以合作方式管理團隊衝突而產生的,亦沒有對領導者的馬基雅維利主義特質加以管控。我們進一步的分析顯示、這調節機制只會在由低/弱馬基雅維利主義的領導者領導的團隊內顯得強烈和顯著,但若領導者是高/強馬基雅維利主義的話,情況就不一樣了。
研究的原創性
盡我們所知,本研究為首個研究、去探討僕人式領導行為與馬基雅維利主義之間的相互作用會如何影響感知的領導效能。
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Drawing on Bandura’s social learning theory (SLT), the purpose of this paper is to investigate, analytically, the impact that after-training skills level (i.e. perceived skill…
Abstract
Purpose
Drawing on Bandura’s social learning theory (SLT), the purpose of this paper is to investigate, analytically, the impact that after-training skills level (i.e. perceived skill match) has on change self-efficacy. Moreover, this research also aims to identify which specific skills sets (if any) act as a protective factor during organizational change, supporting the change confidence (CC) level of the people involved.
Design/methodology/approach
Quantitative research was carried out on a sample of 200 workers in the bank sector.
Findings
Findings of this study suggest that skill match has a significant impact on the CC level. Furthermore, this study demonstrates that, even in front-office jobs, a perceived skill match of soft skills does not have a significant impact on staff CC, unlike that suggested by common sense and by literature.
Research limitations/implications
Future research should investigate if and how a training process enables change self-efficacy over time or instead shows its utility only when it is relating to a specific and limited period.
Practical implications
This study suggests that in designing training, top and middle management should pay specific attention to change recipients’ needs by adopting a bottom-up approach. Moreover, to improve training effectiveness, it would be advisable to also train change recipients’ supervisors.
Social implications
This study has social implications in suggesting how to foster the adaptive capabilities of change recipients in current turbulent times. In doing so, it suggests how to prevent some undesirable change consequences such as anxiety, intention to quit, work-related stress and change cynicism.
Originality/value
This paper shows that, from a methodological point of view, it is necessary to evaluate training effectiveness at the level of a specific skill area and not simply by comparing the trained/not trained people, as typically practiced until now.
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P. Ravi Kiran, Akriti Chaubey and Rajesh Kumar Shastri
The research paper aims to analyse the scholarly literature on advancing HR analytics as an intervention for attrition, a problem that lingers on organisational performance. This…
Abstract
Purpose
The research paper aims to analyse the scholarly literature on advancing HR analytics as an intervention for attrition, a problem that lingers on organisational performance. This study aspires to provide an in-depth literature review and critically assess the knowledge gaps in HR analytics and attritions within organisational performance.
Design/methodology/approach
The review analyses the corpus of 196 research articles published in ostensible journals between 2011 and 2023. To identify research gaps and provide valuable insights, this study synthesises relevant studies using School of thought (S), Context (C), Methodology (M), Triggers (T), Barriers (B), Facilitators (F) and Outcomes (O) (SCM-TBFO framework). This study employs the R programming language to conduct a systematic literature review in accordance with the “preferred reporting items for systematic reviews and meta-analysis” (PRISMA) guidelines.
Findings
The emerging discipline of HR analytics encompasses the potential to manage attrition and drive organisational performance enhancements effectively. The study of SCM-TBFO encompasses a multidimensional approach, incorporating diverse perspectives and analysing its complex aspects compared to various approaches. The School of thought includes the human capital theory, expectancy theory and resource-based view. The varied research contexts entail the USA, United Kingdom, China, France, Italy and India. Further, the methodologies adopted in the studies are artificial neural networking (ANN), regression, structure equation modelling (SEM) case studies and other theoretical studies. HR analytics and attrition triggers are data mining decision systems, forecasting for firm performance and employee satisfaction. The barriers include leadership styles, cultural adaptability and lack of analytic skills, data security and organisational orientation. The facilitators were categorised into data and technology-related facilitators, human resource policies and organisational growth and performance-related facilitators. The study's primary outcomes are technology adoption, effective HR policies, HR strategies, employee satisfaction, career and organisational expansion and growth.
Originality/value
The primary goal of the literature review is to provide a comprehensive overview of the current state of HR analytics and its impact on organisational performance, particularly in relation to attrition. Further, the study suggests that attrition, a critical organisational concern, can be effectively managed by strategically utilising HR analytics and empowering data-driven interventions that optimise performance and enhance overall organisational outcomes.
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Yanghao Zhu, Lirong Long, Wenxing Liu, Peipei Shu and Siyuan Chen
In the period of organizational change and transformation, the attitude of employees towards change has become a key factor in the success of organizational change. Based on the…
Abstract
Purpose
In the period of organizational change and transformation, the attitude of employees towards change has become a key factor in the success of organizational change. Based on the uncertainty management theory (UMT), the paper considers authentic leadership as an important antecedent of employee resistance to change and explores the mediating role of perceived uncertainty and the moderating role of uncertainty avoidance between authentic leadership and employee resistance to change.
Design/methodology/approach
The paper conducted a questionnaire survey study and a scenario experimental study. In study 1, the authors collected two stages of data from 256 employees in Central China, one month apart. In study 2, the authors designed a scenario experiment and invited 130 Chinese adults to participate.
Findings
The authors find that authentic leadership can effectively reduce employee resistance to change by reducing employee perceived uncertainty. In addition, for individuals with a higher (vs lower) degree of uncertainty avoidance, the direct impact of authentic leadership on perceived uncertainty and the indirect impact of authentic leadership on resistance to change through perceived uncertainty are both stronger (vs lower).
Originality/value
The presented results reveal the mechanism between authentic leadership and employee resistance to change from cognitive perspective and depict an important step toward understanding how authentic leadership and employee uncertainty avoidance interact and how they interact with employee resistance to change.
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Shoaib Riaz, Damian Morgan and Nell Kimberley
A slew of conventional change models and theories appear in the extant change literature. Despite being theoretically sound, these a priori structured approaches to organizational…
Abstract
Purpose
A slew of conventional change models and theories appear in the extant change literature. Despite being theoretically sound, these a priori structured approaches to organizational change management have questionable application given the rapidly changing business environments. Novel approaches, offering greater flexibility to fast changing external conditions, may offer superior models to organizational change and organizational transformation (OT) in particular. In this paper, the application of a complex adaptive system (CAS) framework, from complexity theory (CT), for managing OT is assessed theoretically.
Design/methodology/approach
A conceptual paper.
Findings
A review of the extant change literature suggests that current approaches and models for organizational change are limited in their ability to reflect OT responses to today's highly dynamic external environments. New models are required to inform and guide organizations. A new model, i.e. CAS framework, is deemed suitable to guide the OT implementation.
Originality/value
This paper critically analyses different approaches to change management, consolidates CAS framework, reviews its applications in the field of management and presents a case for CAS's application for the management of OT.
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