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Joseph F. Hair, Pratyush N. Sharma, Marko Sarstedt, Christian M. Ringle and Benjamin D. Liengaard
The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis…
Abstract
Purpose
The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis differentiated indicator weights produced by partial least squares structural equation modeling (PLS-SEM).
Design/methodology/approach
The authors rely on prior literature as well as empirical illustrations and a simulation study to assess the efficacy of equal weights estimation and the CEI.
Findings
The results show that the CEI lacks discriminatory power, and its use can lead to major differences in structural model estimates, conceals measurement model issues and almost always leads to inferior out-of-sample predictive accuracy compared to differentiated weights produced by PLS-SEM.
Research limitations/implications
In light of its manifold conceptual and empirical limitations, the authors advise against the use of the CEI. Its adoption and the routine use of equal weights estimation could adversely affect the validity of measurement and structural model results and understate structural model predictive accuracy. Although this study shows that the CEI is an unsuitable metric to decide between equal weights and differentiated weights, it does not propose another means for such a comparison.
Practical implications
The results suggest that researchers and practitioners should prefer differentiated indicator weights such as those produced by PLS-SEM over equal weights.
Originality/value
To the best of the authors’ knowledge, this study is the first to provide a comprehensive assessment of the CEI’s usefulness. The results provide guidance for researchers considering using equal indicator weights instead of PLS-SEM-based weighted indicators.
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Chao Wu, Rongjie Lv and Youzhi Xue
This study aims to examine the impact of controversial governance practices on media coverage under a specific context. Based on the attribution theory, this study develops a…
Abstract
Purpose
This study aims to examine the impact of controversial governance practices on media coverage under a specific context. Based on the attribution theory, this study develops a theoretical framework to explore how antecedent factors can influence attribution process under a particular cultural context.
Design/methodology/approach
This paper presents a behavioral view of the media and corporate governance to demonstrate how media attributes different reasons for the same controversial governance practice in Chinese-specific context. Using 1,198 non-state-owned listed company observations in China as the study sample, cross-section data are used to build a multiple linear regression mode to test hypotheses.
Findings
The analysis indicates that the media imposes fewer penalties on founder-CEO firms than on non-founder-CEO firms for engaging in controversial governance practices, such as CEO compensation. CEO tenure negatively moderates the effect of CEO compensation on negative media coverage in non-founder-CEO firms. The positive media bias evidence for founder-CEO firms exists only when the firm is better performed.
Social implications
This study’s contribution to the governance literature starts with its logical reasoning of basic assumptions in the agency theory, and that media penalty will arise when managers impose actions that against interests of shareholders or other stakeholders. This study shows that the rule is not always true. The findings also bridge the connection of governance literature and reputation literature to better explain how media can act as a social arbitration role.
Originality/value
This study provides insights into how belief and information of reputational evaluators affect attribution consequences on controversial governance practices. Moreover, this study looks beyond the internal elements and focuses on China’s traditional cultural context as well. Specifically, the authors concentrate on the attribution process by showing the importance of evaluators’ framing tendency with regard to controversial practices. The results extend the knowledge about how conformity makes media coverage shows a bias effect on interactions during the evaluation process.
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Susanne Durst, Ingi Runar Edvardsson and Samuel Foli
The purpose of this paper is to structure existing research on knowledge management (KM) in small- and medium-sized enterprises (SMEs) to offer a comprehensive overview of…
Abstract
Purpose
The purpose of this paper is to structure existing research on knowledge management (KM) in small- and medium-sized enterprises (SMEs) to offer a comprehensive overview of research strands and topics in KM in SMEs to determine their evolution over time.
Design/methodology/approach
The paper, which is considered a follow-up literature review, is based on a systematic literature review that covers 180 scientific papers that were published since the review paper by Durst and Edvardsson in 2012 that covered 36 papers.
Findings
The findings of this review and those of the aforementioned review are brought together in the form of an overview that structures research on KM in SMEs based on themes that, in turn, allow the derivation of promising research directions and research questions aimed at structuring future research on KM in SMEs.
Originality/value
By combining the findings of this review with the findings from the review published in this journal in 2012, this paper offers, to the best of the authors’ knowledge, the most comprehensive literature review on KM in SMEs produced to date.
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Vito Di Sabato and Radovan Savov
This paper studies the impact of certain characteristics of companies to training programs in the Industry 4.0 (I4.0) context. Partial objective is to rank the main human…
Abstract
Purpose
This paper studies the impact of certain characteristics of companies to training programs in the Industry 4.0 (I4.0) context. Partial objective is to rank the main human barriers companies have to overcome so that they can digitalize.
Design/methodology/approach
To accomplish the objectives, a closed-ended questionnaire was sent to Slovak and Italian companies and analyzed using statistical nonparametric tests. The partial objective was achieved using the so-called Henry-Garrett’s ranking method.
Findings
Results show the significance impact of companies’ characteristics such as foreign participation and company dimension on training practices whereas economic situation (financial health) seems not to influence it.
Research limitations/implications
The study may lack generalizability as only 102 answers were collected. Perhaps, the outcome would be different with another sample from other countries. Moreover, using closed-ended questions, certain features may not have been covered.
Practical implications
Companies should always guarantee training for the resulted benefits. It is fundamental for organizations to find a time gap, resources and professionals who can teach these programs. Even when companies are incurring financial problems they should do so since human capital development can increase their competitiveness. The most critical barriers should be carefully addressed by companies. Training can help to overcome I4.0 barriers related to Human Resources (HR) and contribute to its growth.
Originality/value
This paper gives insights of the impact of certain characteristics of companies to the training programs. Because past research has limited their analysis on the identification of barrier, its novelty lies in the attempt to rank the most significant barriers among those detected by other authors in previous research.
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