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Article
Publication date: 19 June 2017

Leticia Pérez-Calero Sánchez, Jaime Guerrero-Villegas and José Manuel Hurtado González

Using a contingency approach, the purpose of this paper is to study how organizational factors (such as the organizational life cycle, firm size, firm ownership concentration and…

Abstract

Purpose

Using a contingency approach, the purpose of this paper is to study how organizational factors (such as the organizational life cycle, firm size, firm ownership concentration and firm technology) determine the relative importance of the monitoring and provision of resources roles provided by board members.

Design/methodology/approach

This paper highlights the importance of contingency factors in carrying out board’s roles using a sample of 579 European firms registered in the STOXX Europe 600 index. The authors used a longitudinal analysis for the period from 2002 through to 2011.

Findings

The results show that the monitoring role is more relevant for companies that are large, are operating at the mature and stagnant stages, have a dispersed ownership and are low-technology. However, the provision of resources role is more relevant for companies that are in the growth and stagnant stages, and have a concentrated ownership.

Originality/value

The traditional analysis that relates the board’s structure and composition to the board’s roles focuses on determining what board should be the best. It plays little attention to analyzing which organizational factors affect the importance and presence of monitoring or resource dependence roles. In this regard, this work adds significant insights to agency theory and resource dependence theory as, with a contingency framework, the research aims to find what functions the board needs to develop in order to get better firm performance.

Details

Management Decision, vol. 55 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 2 October 2017

Javier Aguilera-Caracuel, Jaime Guerrero-Villegas and Encarnación García-Sánchez

The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international…

22529

Abstract

Purpose

The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international diversification) and social performance on multinational companies’ (MNCs) reputation.

Design/methodology/approach

The authors confirm the research hypotheses using a sample of 113 US MNCs in the chemical, energy and industrial machinery sectors during the period 2005-2010.

Findings

This study contributes to the literature in three ways. First, it incorporates literature on internationalization to study the possible connection between geographic international diversification and social performance in MNCs. Second, it sheds light on the debate between corporate social responsibility (CSR) and the reputation of MNCs in a very diverse transnational context in which MNCs must meet the needs of stakeholders at both local and global levels. Third, it incorporates the mediating role of social performance in the relationship between geographic international diversification and the firm’s reputation.

Originality/value

Prior studies have hardly analyzed this relationship, which becomes especially relevant for MNCs, since their implementation of advanced CSR practices in the different markets in which they operate will gain them a good reputation, not only in specific local contexts but also globally, benefitting the organization as a whole and enabling it to gain internal consistency (improvement in internal efficiency), transparency and legitimacy.

Details

European Journal of Management and Business Economics, vol. 26 no. 3
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 11 April 2016

Gloria Cuevas-Rodriguez, Jaime Guerrero-Villegas and Ramón Valle-Cabrera

The purpose of this paper is to analyze certain organizational changes that occur after privatization. More specifically, the authors analyze from an agency theory perspective how…

1220

Abstract

Purpose

The purpose of this paper is to analyze certain organizational changes that occur after privatization. More specifically, the authors analyze from an agency theory perspective how changes at the corporate governance level (ownership type/structure and board of directors) influence firm strategy, and what implications these issues have for the design of compensation mechanisms.

Design/methodology/approach

The methodology employed in the study can be described as a longitudinal multiple case study approach. A multiple case study enables the comparison of pre- and post-privatization periods in five Spanish companies. This methodology is especially suitable to track the organizational changes occurring in relation to the firms’ internal management.

Findings

First, the variables that traditionally relate to greater board independence in monitoring do not suffer from variation after privatization. Second, the interests of the firms’ new ownership have an impact on firm strategy after privatization. Finally, compensation system design clearly aligns with firm strategy after privatization.

Research limitations/implications

The research is based on a multiple case study approach, which limits the scope and generalizability of the findings.

Originality/value

Whereas research in privatization generally adopts a macroeconomic or political perspective, organizational and managerial implications are current aspects in need of further examination. This research offers a study that integrates three sets of variables (corporate governance, strategy and compensation) that have been rarely analyzed in this context.

Details

Journal of Organizational Change Management, vol. 29 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

Content available
Article
Publication date: 11 April 2016

Slawomir Jan Magala

313

Abstract

Details

Journal of Organizational Change Management, vol. 29 no. 2
Type: Research Article
ISSN: 0953-4814

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