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The present study aims to investigate the impact of internal control effectiveness on supply chain management efficiency (SCME) and capital allocation efficiency for companies listed in the Tehran Stock Exchange (TSE). In addition, it investigates the mediating role of supply chain management efficiency in the relationship between internal controls and capital allocation efficiency.

The data about 191 companies in 2014–2022 were examined. The sales per inventory ratio was used to calculate SCME. The present study also applied the Generalized Method of Moments (GMM) for endogeneity concerns.

The results showed that internal control effectiveness has a significant positive effect on SCME. Moreover, internal control effectiveness and SCME significantly positively affect capital allocation efficiency. SCME has a mediating role in the relationship between internal control effectiveness and capital allocation efficiency. These findings remained robust even after several robustness tests. In addition, this study tested the results' robustness by dividing data into the pre-COVID-19 and post-COVID-19 years. The previous results were also confirmed according to the robustness test of COVID-19.

Challenges in the supply chain often hinder capital allocation efficiency. In addition, enterprises should try to establish strong internal controls to ensure SCME. Therefore, the relationship between internal control effectiveness, SCME and capital allocation efficiency is complex and underscores the importance of robust internal controls in optimizing resource allocation within organizations. Interestingly, this topic has not been extensively researched in accounting and business research, and there is a lack of empirical evidence on these effects. Consequently, this study aims to fill the gap and identify potential opportunities for new research directions.

The purpose of this paper is to investigate how customer relationship management (CRM) implementation affects internal capital allocation efficiency, the efficiency with which a firm allocates its capital across its business segments.

The authors use a statistical regression method to analyze a sample of 801 unique firms in the USA from COMPUSTAT and the Computer Intelligence database. This analysis examines the relation between CRM implementation and internal capital allocation efficiency and identifies the conditions under which firms benefit more from CRM implementation. They also use instrumental variables (IVs) to address endogenous concerns with a two-stage least squares (2SLS) model.

The authors find that CRM implementation is positively related to internal capital allocation efficiency. The results are robust to the 2SLS analysis with IVs. This positive relation is more pronounced for firms with effective internal control and for those operating in highly competitive markets.

The research implies that that CRM can have a significant cross-functional effect on corporate financing and budgeting. This also suggests that when chief marketing officers plan marketing initiatives and implement CRM, they should communicate to chief financial officers not only the direct effect but also the indirect strategic benefits of such initiatives to a firm.

The authors reveal a previously overlooked aspect of marketing accountability by suggesting marketing’s impact on internal capital markets. They also enrich the body of literature on CRM benefits by showing a cross-functional benefit from marketing to finance (or capital allocation).

Internal capital markets of diversified firms have been associated with inefficient allocation of investment funds across divisions, leading to value losses. Utilizing a sample of diversified firms that adopted or eliminated Residual Income (RI) plans between 1990 and 2009, we show that adoptions of these plans mitigate investment distortions and lead to value gains. Following the adoption of RI plans, diversified firms start allocating investment funds based on growth opportunities of their divisions. RI plan adopters lower their divisional investment levels, especially in segments with below-average growth opportunities. The overall investment allocation efficiency improves, and the diversification discount diminishes after the adoption of RI plans. However, RI plans appear to be used only as temporary tools for assessing corporate performance. The plans are adopted primarily by firms expected to immediately generate plan bonuses for management, and they are frequently eliminated by firms with bad accounting performance and low managerial bonuses. The study contributes to the literature on organizational efficiency, internal capital markets, and on the importance of measures based on economic profits or RI.

Due to the great distinctions for the legal environments, institutions and taxations, the restrictive external financing and costly financing cost, and great influence of macroeconomy or regulations on single industry, firms may change or adjust their organization structure to adapt to rapidly changing environment. Flat structure can decentralize the powers to subsidiary managers and can internalize the managerial market to promote competition among subsidiary managers and create an internal capital market within firms to alleviate external financing constrains, and it is matched with the diversification strategy to lower the operation risk and regulation risk for firms in changing environment. The paper aims to discuss these issues.

The data of 6,065 listed corporations in China securities market since 2001-2006 are used to empirically test the hypotheses.

The paper examines the efficiency of flat structure within the firm, investigating its influence on capital allocation and corporate performance. It shows that flat structure is better in emerging market since it is efficient in capital allocation, reducing the inefficient investment by reducing the overinvestment and alleviating the underinvestment, thus beneficial for corporate performance, both short-term and long-term accounting returns.

From the results of this study, the paper can derive the important managerial implications that top managers should strengthen flexibility through flat structure so that their firms can grasp opportunities and obtain advantages through efficient improvement of mobility, adaptability, and combination in an uncertain environment. Moreover, flat structure can decentralize the powers to subordinate managers and create an internal managerial market and internal capital market within firms.

By using the previous and change of multi-unit structure, the change of corporate performance, diverse and concentrated firms, the paper shows that results are not due to the endogenous problem. The study finds that in less-developed capital market under the current situation, flat structure is better, which suggests that flat structure can properly implement the strategies in emerging market and beneficial for corporate performance.

Drawing on the concept of superior resource, capability and processes of the resource-based theory of the firm, the purpose of the current study is to analyze the influence of firms’ winner-picking strategic approach on firm performance (FP) via a direct and indirect mechanism.

Using survey data of 104 diversified manufacturing firms, the current study analyzed the conditional indirect effect of firms’ strategic approach on efficient resource allocation with the help of Statistical Analysis Software (SAS) process macros.

The study found that firms’ choices of winner-picking approach can undermine the resource allocation efficiency when not perfectly blended with firms’ access to the resource. Furthermore, the effect of winner-picking strategy (WPS) on resource allocation efficiency via firms’ competitive advantage (CA) can be greater when both strategic choice and resources are employed adequately.

Despite making a unique contribution, the present study has a few limitations requiring researchers’ attention to be tackled in the forthcoming. This includes a little amount of data, a self-reporting technique and failure to include all the possible reasons that could lead to inefficient resource allocation.

The present research has potential applications for managers of the manufacturing industry in a period of sheer uncertainty [coronavirus disease 2019 (COVID-19)]. First, the study alerts managers about the challenges of underinvestment and overinvestment while allocating resources. At the same time, this study provides an important implication for managing the importance of firms’ access to capital (AC).

The current study has made a sizeable impression in the literature on internal resource allocation and resource-based theory of the firm by recommending a model that augments the theoretical foundation of strategic management of the firms. As there are only a handful of studies on this grave issue in the context of developing economies, thus, closely considering these insights would be helping for the firms for allocating resources efficiently in the manufacturing industry.

Drawing on the concept of resource-based theory of the firm; the purpose of this study is to analyze the influence of firms’ strategic approaches on the firm performance via indirect effect using a multilevel, bottom-up approach.

Using the survey method, the present study obtains data from 104 diversified manufacturing firms and analyzes the bottom-up effect of firms’ strategic approach on efficient resource allocation using Mplus.

Given the prevailing conditions, the study found that the motive of most firms is growth rather than risk mitigation or collaboration in the manufacturing sector of Pakistan. Furthermore, the study found that the bottom-level employees’ information asymmetry has a significant impact on the strategic resource allocation decision, which can lead to resource allocation inefficiency.

Despite making a unique contribution, the present study has few limitations requiring researchers’ attention to in the forthcoming. These include a low amount of data, self-reporting technique and failure to include all the possible reason that could cause resource allocation inefficiency.

The present research has potential applications for managers of the manufacturing industry. First, the study alerts managers about the challenges of resource allocation. At the same time, this study provides critical implication for managing bottom-level employees.

The current study has made a sizable impression in the literature of resource-based theory of the firm by recommending a model that augments the theoretical foundation of strategic management of the firm. So, closely considering these insights would be helping for the firms for allocating resources efficiently in the manufacturing industry.

The purpose of this paper is to propose an integrated model for allocation and leveling of human resources in IT projects.

A single case study was conducted in a large company of IT outsourcing services, which were assessed the management of 14 projects. The survey was conducted through interviews with project managers, and digital files and internal documents of the organization related to these projects.

In the analysis, it was identified that the critical path is not identified in all projects, and even when this happens, resources are not allocated in the first tasks in that path. A committee controls the allocation of resources with the assessment of skills, but there is no control of all resource constraints.

The main limiting factors for this study are: use of data of one company in the IT industry, making it difficult to generalize the model for other sectors companies; it was noted during interviews that the project managers interviewed do not always know in detail all the company’s processes for allocation and resource leveling, due to the large number of processes and different management activities of these professionals.

A model and actions for this implementation was proposed, such as training for the use of the technique of critical path; allocation and leveling done simultaneously; decisions of the management committee based on information of availability, key skills, holidays, days off of human resources; development of a software tool that integrates this information, generating graphical interfaces that are not provided by project management software with the use of an allocation factor.

The characteristics of the proposed model, as well as the use of the allocation factor, can help managers to validate their allocation models and leveling of human resources in an integrated manner.

The study explains that the granularity of analysis of resource allocation increases by decomposition of the duration of each activity in fixed time segments. It is suggested to use the mathematical concept of the allocation factor (F_a).

This study examines the value implications of oil price uncertainty for investors in diversified firms using a sample of 922 USA firms from 2001 to 2019.

Our study employs a panel dataset to examine the value implications of oil price uncertainty for diversified firm investors. We consider several alternative specifications to account for unobserved factors and measurement errors that could potentially bias our results. In particular, we use alternative measures of the excess value of diversified firms and oil price uncertainty, additional control variables, fixed-effects models, the Oster test, impact threshold for confounding variable (ITCV) analysis, two-stage least square instrumental variable (2SLS-IV) analysis and the system-GMM model.

We find that the excess value of diversified firms, relative to a benchmark portfolio of single-segment firms, increases with high oil price uncertainty. The impact of oil price uncertainty is asymmetric, as corporate diversification is value-increasing for diversified firm investors only when the volatility is due to positive oil price changes and amidst supply-driven oil price shocks. The excess value increases irrespective of diversified firms’ financial constraints and oil usage. Diversified firms become conservative in their internal capital allocations with high oil price uncertainty. Such conservatism is value-increasing for diversified firm investors, as it supports higher performance in response to oil price uncertainty.

Our study has three important implications: first, they are relevant to investors in understanding the portfolio value implications of oil price uncertainty. Second, they are helpful for firm managers while comprehending the value-relevant implications of internal capital allocations. Finally, our findings are policy relevant in the context of the future of diversified firms in developed markets.

This article explores the influence of duality in institutional logics on internal accounting, with a focus on a Polish public university. More particularly, we answer the research question: how does illegitimacy risk arising from the divergent pressures of the institutional environment impact management accountings in this institution?

This paper seeks to uncover intricacies of notions of internal legitimacy façade, decoupling and counter-coupling in practice. It explores details of organizational responses involving management accounting aimed at reducing illegitimacy risk. Achieving good organizational access, the authors adopt a qualitative case study approach involving contextual appreciation/document analysis/participant observation/discussion with key actors: facilitating building upon theoretical argumentation through finding things out from the field.

The authors uncover and discuss organizational solutions and legitimizing manoeuvres applied, identifying four adaptation tactics in the struggle to support legitimacy that they term ‘ceremonial calculations’, ‘legitimacy labelling’, ‘blackboxing’ and ‘shadow management accounting’. These can be seen in relation to decoupling and counter-coupling. Ceremonial calculations supported the internal façade. Shadow management accounting supported pro-effectiveness. Legitimacy labelling and blackboxing helped bind these two organizational layers, further supporting legitimacy. In interaction the four tactics engendered what can be seen as a ‘counter-coupling’ of management accounting. The authors clarify impacts for management accounting.

The usual limitations of case research apply for generalizability. Theorizing of management accounting in relation to contradictory logics is advanced.

The article illuminates how management accounting can be understood vis-à-vis contradictory logics.

Elaboration of the tactics and their interaction is a theoretical and empirical contribution. Focus on a Polish university constitutes an empirical contribution.

The purpose of this integrative review is to develop a holistic behavioral framework on capital allocation decisions.

The article first structures, maps and synthesizes the prevalent cognitive biases that are present during capital allocation decisions. It then seeks to offer a robust understanding on how firms can mitigate the effects of cognitive biases.

Not only do several cognitive biases interfere with a decision-makers ability to make adequate capital allocation decisions but firms already have a number of tools at their disposal to mitigate them.

Besides identifying cognition- and repair-based implications to extend the literature, this article outlines key methodological challenges for future research conducted along the lines of capital allocation.

Since the paper structures cognitive limitations in one of the most important managerial decision-making processes and discusses what firms can do to counteract them, it is of high relevance for practitioners. Managers need to know what drives successful capital allocation and what not.

The article provides a rare integrative review on the impact of cognitive biases on capital allocation and addresses the need to build linkages to the ongoing conversation on how to design strategic decision processes.