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1 – 10 of 61Jingbin Wang, Xinyan Yao, Xuechang Zhu and Baitong Li
This study explores the intricate relationship between inventory leanness, financial constraints and digital transformation in listed Chinese manufacturing firms.
Abstract
Purpose
This study explores the intricate relationship between inventory leanness, financial constraints and digital transformation in listed Chinese manufacturing firms.
Design/methodology/approach
Using a large panel data collected from 2,563 Chinese listed manufacturing enterprises over the period from 2012 to 2021, this research employs the instrumental variable method combined with two-stage least squares estimators to explore the U- shaped relationship between inventory leanness and financial constraints. Furthermore, the moderating role of digital transformation is demonstrated.
Findings
Contrary to traditional assumptions, our research uncovers a U-shaped relationship between inventory leanness and financial constraints, indicating that excessive inventory reduction can exacerbate financial constraints. Digital transformation plays a significant moderating role, particularly in highly digitalized environments.
Practical implications
Our findings have practical significance for top managers and policymakers. We advocate for a balanced approach to lean inventory management to mitigating financial constraints. The study emphasizes the pivotal role of digital transformation in alleviating the impact of inventory leanness on financial constraints, highlighting the need for digital transformation strategies.
Originality/value
This research provides a comprehensive analysis of inventory leanness, financial constraints and digital transformation dynamics. It challenges conventional thinking by revealing the nonlinear nature of the inventory leanness–financial constraints relationship. The concept of moderation highlights the moderating effect of digital transformation. This study offers practical guidance for practitioners and policymakers.
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Cori Crews, John Abernathy, Jimmy Carmenate, Divesh Sharma and Vineeta Sharma
The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen…
Abstract
Purpose
The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen while the number of restatements has decreased. This could indicate an improvement in financial reporting quality. It could also indicate the use of a type of stealth restatement for opportunistic purposes. These less prominent restatements are more likely to go undetected and could perpetuate opportunistic disclosure and mitigate the likelihood of unfavorable market reactions.
Design/methodology/approach
The authors use a two-stage multivariate regression analysis to examine the relationship between NAS and the reporting of an OOPA. The authors use prior research on NAS to guide the model development. The authors perform several robustness checks including different types of NAS and different characteristics of OOPAs.
Findings
The results indicate that NAS has a significantly negative association with the existence of OOPAs. The core findings suggest that NAS does not impair auditor independence. Rather, greater amounts of NAS may contribute to knowledge spillover, which leads to higher financial reporting and audit quality. The results are robust to several additional tests.
Research limitations/implications
The results raise interesting implications for regulators, executives, auditors, investors and future research. The authors provide insight into the relationship between NAS and auditor independence.
Originality/value
To the best of the authors’ knowledge, prior research has not considered the effect of NAS on OOPAs. The authors contribute to the literature by providing evidence that OOPAs, a form of stealth restatements, is an important consideration in audit quality research.
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Jianhua Yang, Yuying Liu and Moustafa Mohamed Nazief Haggag Kotb Kholaif
The purpose of this paper is to examine the impact of two typical relationship management approaches (trust relationship with suppliers and reciprocity) on manufacturer resilience…
Abstract
Purpose
The purpose of this paper is to examine the impact of two typical relationship management approaches (trust relationship with suppliers and reciprocity) on manufacturer resilience in the context of the COVID-19 crisis. Moreover, this paper aims to deepen the understanding of environmental uncertainty's moderating effect on the association between the trust relationship with suppliers (TRS) and reciprocity.
Design/methodology/approach
Structural equation modeling has been used to test the hypotheses on 361 Chinese manufacturing firms' managers and independent directors during the COVID-19 crisis.
Findings
The results reveal that reciprocity positively enhances three dimensions of manufacturer resilience, namely, preparedness, responsiveness and recovery capability. Reciprocity positively mediates the relationships between TRS and preparedness, responsiveness and recovery capability. Moreover, environmental uncertainty moderates the association between TRS and reciprocity.
Practical implications
This study highlights the critical role of reciprocity, the relational governance approach, in enhancing manufacturer resilience in practice. This paper suggests that during emergencies such as the COVID-19 pandemic, managers should adopt trust and reciprocity in supplier relationship governance to strengthen the resilience of manufacturing companies and adapt effective strategies according to the environment.
Originality/value
This study is unique in developing new scales of manufacturer resilience through interviews and surveys with Chinese manufacturers and theoretical research. Based on the social capital theory and social exchange theory, this study shed light on the role of trust and reciprocity. It also bridges relational governance theory with the literature on manufacturing firm resilience literature to help manufacturers better understand the transdisciplinary links between relationship management and resilient operations in emergencies.
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Rohit Kumar Singh and Sachin Modgil
The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the…
Abstract
Purpose
The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the influence of environmental dynamism.
Design/methodology/approach
We have formulated a self-administered survey, with 359 participants contributing responses. Prior to delving into foundational assumptions, such as homoscedasticity and normality, a nonresponse bias analysis was executed. The integrity of the data, in terms of reliability and construct validity, was gauged using confirmatory factor analysis. Subsequent regression outputs corroborated all the proposed assumptions, fortifying the extant scholarly literature.
Findings
The empirical findings of this research underscore a positive correlation between Information system flexibility, dynamic capabilities and a net zero supply chain, especially in the context of environmental dynamism. Data sourced from the cement manufacturing sector support these observations. We also found that environmental dynamism moderates the relationship between data analytics capability and sustainable supply chain flexibility but does not moderate the relationship between Resource flexibility and sustainable supply chain flexibility. Additionally, this research strengthens the foundational principles of the dynamic capability theory.
Originality/value
The conceptual framework elucidates the interplay between information system flexibility, dynamic capabilities, and sustainable supply chain flexibility, emphasizing their collective contribution towards achieving sustainable chain net zero, introducing environmental dynamics as a moderating variable that augments the scholarly discourse with a nuanced layer of analytical depth.
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Miao Hu, Shenyang Jiang and Baofeng Huo
Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative…
Abstract
Purpose
Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative innovation), and it examines how supplier integration, customer integration and internal integration mediate these impacts.
Design/methodology/approach
The authors employ empirical survey data from 200 Chinese manufacturers and use structural equation modeling to test the proposed relationships.
Findings
The results show that supply visibility is positively related to supplier integration and internal integration and that demand visibility is positively related to customer integration. Furthermore, only customer integration and internal integration positively relate to exploratory and exploitative innovation.
Originality/value
First, this study emphasizes that supply visibility and demand visibility are important sources of a firm's innovation performance and that supply chain integration increases focal firms' capability of exploiting information and facilitates product innovation. Second, the study shows that supply visibility and demand visibility have distinct effects on three dimensions of supply chain integration and exploratory and exploitative innovation. The study also provides significant managerial guidelines for effectively leveraging supply chain visibility and integration in the promotion of product innovation.
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Achille Augustin Diendere and Sansan Ali Bepounte Dah
Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This…
Abstract
Purpose
Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This study analyzes the transmission and asymmetry of the price series between the Ouagadougou consumer market and assembly markets considering three primary cereal products in Burkina Faso.
Design/methodology/approach
This study applies the nonlinear autoregressive distributed lag (NARDL) econometric model, which is an asymmetric extension of the ARDL cointegration model. The price series examined covers the period extending from January 2005 to December 2020.
Findings
Our analysis provides novel insights regarding short- and long-term asymmetric effects in the transmission of price signals between assembly markets and the consumer market. We also determine that the effects of negative shocks are more persistent than those of positive shocks in several markets.
Research limitations/implications
For markets that exhibit symmetrical responses of assembly market prices to consumer market prices, the results could reflect the continuous efforts of market players, particularly the government, to eliminate market failures and ensure the long-term efficiency of cereal markets. To this end, an agricultural market information system can have a crucial role in easing information access for all market players.
Originality/value
This study provides new evidence regarding the nature of the transmission and asymmetry of price information on primary cereal products in the largest markets in Burkina Faso. Applying the NARDL model makes it possible to simultaneously estimate short- and long-term asymmetry.
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Mengjiao Chen, Jinjuan Ren and Jingying Zhao
This paper aims to investigate the impact of corporate culture on stock price crash risk and explore the underlying mechanisms.
Abstract
Purpose
This paper aims to investigate the impact of corporate culture on stock price crash risk and explore the underlying mechanisms.
Design/methodology/approach
This paper uses a novel firm-level culture measure of Li et al. (2020), which evaluates corporate culture from the perspectives of integrity, teamwork, innovation, respect and quality. Using a sample of 4,017 US firms from 2001 to 2018, this paper uses panel data regressions to explore the impact of corporate culture on stock price crash risk.
Findings
This paper finds that among five cultural dimensions, integrity reduces crash risk and quality increases crash risk. The mitigating effect of integrity culture on crash risk is concentrated among firms with a strong incentive or ability to hoard bad news. The exacerbating effect of quality culture on crash risk is concentrated among firms with low managerial flexibility.
Social implications
This paper helps investors and regulators to understand the determinants of stock price crash risk, which facilitates investors’ wealth management and stabilizes social welfare.
Originality/value
To the best of the authors’ knowledge, this is the first study that uses time-varying firm-level measure of corporate culture to investigate its impact on stock price crash risk, contributing to the literature on the determinants of crash risk. Besides, this is the first study that explores the possible mechanism of managerial flexibility in influencing stock price crash risk.
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The study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights…
Abstract
Purpose
The study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.
Design/methodology/approach
Commencing from the premise that family businesses (FBs) prioritize the preservation of socio-emotional wealth (SEW) when formulating strategic decisions, this study endeavours to advance understanding of supply chain practices adopted by FBs and their direct impact on resilience during crisis situations or economically challenging periods. Through an exploratory case study of nine FBs, the present research reveals four pivotal strategies in SCM that contribute to their resilience: (i) reorganization of inventory management; (ii) cultivating close relationships with suppliers; (iii) emphasizing product quality and customer retention; and (iv) implementing cost reduction measures to bolster resilience. The aim of the study is to provide an in-depth understanding of the intricate interplay between SCM and resilience in FBs, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.
Findings
Our approach offers a theoretical framework for SCM aligned with prior research on the interplay between characteristics of family businesses and resilience strategies. Furthermore, this paper illustrates how factors such as the emphasis on high-quality products and services by family businesses contribute to achieving non-economic objectives that owners adopt to reconcile family and business needs, creating intrinsic added value for the company. It reveals various challenges in SCM, including inventory organization changes, supplier closures and the significance of customer retention. Family businesses are implementing product and technology enhancements and leveraging digitization to enhance supply chain processes.
Originality/value
This paper contributes significantly to the field of FBs by highlighting the crucial role of SCM in enhancing business resilience during crises. It empirically examines how the SEW characteristics of FBs influence the reconfiguration of their supply chains to enhance resilience, presenting a theoretical model for this context. Our theoretical framework employs an SEW perspective to elucidate how FBs respond to the challenges posed by the COVID-19 pandemic by adapting their SCM processes to safeguard their social and emotional legitimacy, organizational visibility and reputation. These adaptations gain particular relevance during crises or turbulent conditions, potentially leading to alterations in how FBs formulate their supply chain strategies and manage supply chain-related processes.
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Pilar Ficapal-Cusí, Joan Torrent-Sellens, Pedro Palos-Sanchez and Inés González-González
Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the…
Abstract
Purpose
Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the workplace generates new dilemmas for work performance. In the paper the authors study the role of some individual and social antecedents on telework outcomes. In particular, they empirically investigate the direct relationship between trust (TR) and telework performance (PER) and explore mediators of that relationship such as social isolation (SI) and fatigue (FA).
Design/methodology/approach
A theoretical model with three main hypotheses is proposed and tested using partial least square structural equation modeling (PLS-SEM). The study sample, of an exploratory nature, consists of a dataset of 201 teleworkers working in Spanish companies.
Findings
The relevance of the proposed model is demonstrated and FA is found to be the factor that most affects (negatively) PER, followed by TR (positively) and SI (negatively). Beyond the direct effects, the results provide support for the role of SI and FA in mediating the relationship between TR and PER.
Originality/value
This paper discusses the PER dilemma and proposes and tests a background model that may be useful for future research. The results are of interest to human resource managers, consultants, academics and telework tool developers and managers. Practices are proposed to improve TR or to reduce feelings of SI or FA. The research provides a practical evaluation tool for telework implementation.
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Hongjoo Woo, Wi-Suk Kwon, Amrut Sadachar, Zhenghao Tong and Jimin Yang
When retail businesses, especially small businesses with greater vulnerability, could not meet consumers in person during the recent pandemic crisis, how did they adapt to the…
Abstract
Purpose
When retail businesses, especially small businesses with greater vulnerability, could not meet consumers in person during the recent pandemic crisis, how did they adapt to the situation? This study examined how small business practitioners (SBPs’) perceptions, trust and adoption intention levels for social media, as well as the relationships among these variables, changed before and during the crisis based on the integration of the contingency theory and the diffusion of innovation theory (DIT).
Design/methodology/approach
Online surveys were conducted with USA SBPs before (n = 175) and during (n = 225) the recent pandemic. The hypotheses were tested using structural equation modeling (SEM), multivariate analysis of variance (MANOVA) and multiple-group SEM analysis.
Findings
The results confirmed significant sequential positive relationships between SBPs’ perceived external pressure and perceived benefits of adopting social media, which in turn led to their trust in and then adoption intentions for social media. Further, the comparisons between the pre- and in-pandemic samples revealed that SBPs’ perceptions and adoption intentions all became significantly higher during (vs before) the pandemic, but the structural relationships among these variables weakened during the pandemic.
Originality/value
This study uses a novel approach to integrate the contingency theory with the DIT to propose small businesses' perceptions, trust and adoption intentions for social media during the innovation decision process under rapid contingency changes. Our findings also offer practical implications including recommendations for small businesses’ innovation management as well as training programs.
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