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This study investigates the relation between managerial ownership and the audit quality of the firm. In modern corporations, the separation of ownership and control creates incentives for managers to maximize their own wealth at the expense of shareholders (Jensen and Meckling 1976). Manager‐owners thus have an incentive to reduce associated agency costs by providing high quality auditing. High audit quality should thus be increasing as managerial ownership decreases. A related agency problem is that of entrenchment‐ whereby managers, by virtue of their increased voting power, have increasing power to shirk and procure perquisites at shareholders' expense. The associated increasing agency risk implies that, when the risk of entrenchment decreases, the need, and thus provision, of high audit quality should also decrease. Based on these arguments, and following prior empirical research, we posit and find that at low and high levels of managerial ownership (below 5% and above 25%), where entrenchment is not increasing, audit quality is decreasing in managerial ownership. At intermediate levels, where entrenchment arguably does increase, it is unclear which effect (divergence‐of‐interests or entrenchment) dominates. For our sample, we document a negative association in this region, a result consistent with the notion that divergence‐of‐interests is the primary agency‐related determinant of audit quality at all levels.

We investigate the relative roles of key components of earnings change in explaining the value relevance of earnings across different life‐cycle stages of the firm. We hypothesize that firms in different life‐cycle stages take different strategic actions: change in sales is emphasized in the growth and mature stages, while in later stages, profitability is emphasized. Because payoffs to such strategies vary across the life‐cycle, the stock market reaction to the success firms have in employing these strategic actions is likely to vary across the life‐cycle. To test our hypotheses, we disaggregate changes in earnings into three key components: earnings change from change in sales, earnings change from change in profitability, and an interaction term comprising both sales change and profitability change. Our findings are consistent with our hypotheses: when firms are in the growth stage, the value‐relevance of change in sales is relatively greater than that of change in profitability. In the mature stage, the value relevance of change in profitability increases, relative to that of change in sales. When firms are in stagnant stage, the value‐relevance of changes in profitability are relatively greater than that of change in sales. Collectively, the results demonstrate a shift in the value relevance of earnings components from a growth emphasis early in the life‐cycle to a profitability emphasis later in the life‐cycle.

This chapter presents digital reverse mentoring as a novel kind of human and technological resource management intervention. It presents a case study of digital reverse mentoring at a large metal multinational. It highlights the various design elements of digital reverse mentoring that contribute towards achieving digital transformation and rebuilding of mindsets in the company. Through the case study the chapter also suggests that HRM needs to look beyond adoption of technological tools to actively participate in addressing the strategic concerns of digital transformation in a company.

Supported by a service ecosystem that is increasingly immersed into digital transformation, small- and medium-sized enterprises (SMEs) have access to turnkey information technology (IT) applications, which may come free of charge but not free of concerns. The purpose of this paper is to explore a group conceptualisation and associated perceptions of IT issues within an ecosystem that includes three subgroup profiles: entrepreneurs, IT professionals and socioeconomic support professionals.

Using group concept mapping, a bottom-up and participatory mixed methods-based approach, a concept map was estimated, based on a list of items, to define seven clusters pertaining to issues and challenges of adoption and use of turnkey IT applications in SMEs of less than 20 employees. Perceptions measures of relative importance and feasibility were obtained by subgroup profiles.

The relative importance and relative feasibility measures for the seven clusters indicate significant statistical differences in ratings among the subgroup profiles. A discussion on the importance of relational capital in addressing challenges of digital transformation in SMEs is developed.

Results highlight signifiant differences concerning key dimensions in the adoption and use of IT from the perspective of three subgroup profiles of actors within the ecosystem. First, the results stress the need to develop a shared understanding of IT challenges. Second, they suggest policymakers could use these conceptual representations to further develop and strengthen the IT-related support agenda for SMEs, especially the smaller ones (e.g. training programs, business support and coaching initiatives, etc.).

The purpose of this paper is to elucidate the relationship between three types of process innovations (i.e. innovation in production, IT, and logistics processes) and ambidexterity performance. Specifically, the paper attempts to examine whether changes in business processes help companies to reconcile exploration and exploitation learning activities within the firm domain.

This research is based on data of 2,843 manufacturing firms, whose data are available from the Italian Innovation Survey (period 2010-2012). Hypotheses are developed and tested by using a Tobit regression approach.

Innovation in production and IT processes favors ambidexterity performance, whereas changes in logistics activities, despite being positive, are less relevant.

This is one of the first attempts to offer empirical evidence about the relationship between process innovations and ambidexterity performance (without engaging in domain separation), hence providing additional insights into the ambidexterity literature and the literature on process innovation.

How do heretical social movements build and negotiate their collective identities? This chapter tackles this question by examining the case of an emerging social movement, the left-wing Islamists in contemporary Turkey, that cuts across the durable divide between Turkey’s left and Islam. Drawing on four months of fieldwork in Turkey, I argue that, in addition to activating the typical “us versus them” dynamic of contentious politics, the left-wing Islamists also rely on blurring the social and symbolic boundaries that govern political divides in the course of building their collective identities. Their social boundary blurring includes facilitating otherwise unlikely face-to-face conversations and mutual ties between leftists and Islamists and spearheading alliances on common grounds including anti-imperialism and labor. Their symbolic boundary blurring includes performing a synthesis of Islamist and leftist repertoires of contention and reframing Islamic discourse with a strong emphasis on social justice and oppositional fervor. The case of Turkey’s left-wing Islamists illuminates the process of boundary blurring as a key dimension of collective identity and alliance formation across divides.

Expatriates who perform poorly in their overseas assignments cost multinational enterprises billions of dollars, damage firm reputation, disrupt relationships with local nationals, and often exact a cost on expatriates’ psychological well‐being. International human resource management, which assumes the crucial responsibility of managing expatriates, should therefore be able to identify the competencies underlying effective expatriate performance, and evaluate crosscultural competence and overall effectiveness. Little research, however, is available on the role of culture in determining cross‐cultural effectiveness in expatriate‐client interactions. Moreover, it is rarely acknowledged that the customer impacts upon the effectiveness of such interactions. This paper provides a theoretical explication of the relationships between the factors of intercultural effectiveness, sociobiographical characteristics, and perceived task and contextual performance of individual managers operating in an intercultural environment. Qualitative research is conducted which, in general, demonstrates the importance of examining intercultural effectiveness from the respective cultural perspectives of the expatriate and the host country client. The findings elucidate the factors contributing to the intercultural effectiveness of Western expatriate managers operating in intercultural teams in Thailand.

The purpose of this paper is to investigate how to support small organizations to navigate the context of an accelerated Digital Transformation using Enterprise Social Media platforms, in response to external contingencies, such as the COVID-19 pandemic.

A longitudinal action research study, supported by an exploratory analysis that follows a hybrid approach of deductive and inductive reasoning, has been conducted in the context of a small organization. Several data collection techniques were used for context understanding and problem-solving.

Findings suggest that value creation related to the use of Enterprise Social Media platforms supports small organizations in this accelerated context of Digital Transformation. Value perception is central in overcoming adoption barriers and achieving sustainable use of these platforms in daily basis activities, especially in remote working. External pressures, like those imposed by the COVID-19 pandemic, play an important role in catalyzing digital initiatives.

As the main limitations to this paper, we highlight the study of a single organization in a specific context and the number of actors involved; hence, there is room to extend the study to other industries, organization sizes and contexts.

This paper provides managers with insights into how to conduct their Enterprise Social Media initiatives in a turbulent environment, highlighting their key success elements, and their potential to create value for their organizations and stakeholders. Furthermore, managers could explore the potential of Enterprise Social Media platforms to support organizations in the Digital Transformation journey.

Small organizations play an important role in generating wealth for nations around the world. However, governments encounter difficulties in supporting the Digital Transformation of this type of organization. This paper provides insights into how to use an affordable and intuitive technology to include this type of organization in the Digital Transformation journey.

A long-term study of Enterprise Social Media is recommended, but quite rare in the Information Systems literature. This study adopts a longitudinal investigation to analyze the use of Enterprise Social Media to support a small organization to adapt, in balance with their internal and external contingencies, providing a further contribution to the contingency theory. This research also adds contributions to the sociotechnical system perspective, analyzing the deep imbrication between social and technical subsystems in the required organizational change, supporting a small organization for coping with the effects of the COVID-19 pandemic.