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1 – 10 of over 8000Rishi Kappal and Dharmesh K. Mishra
This paper aims to explore the interlinkage and association of executive isolation at the workplace faced by Chief Executive Officer (CEO) of a not-for-profit organizations (NPOs…
Abstract
Purpose
This paper aims to explore the interlinkage and association of executive isolation at the workplace faced by Chief Executive Officer (CEO) of a not-for-profit organizations (NPOs) and its impact on the attrition at the C-Suite Professionals (CXO), Direct reports of CEO levels.
Design/methodology/approach
Executive isolation at top management with reference to the CEO level has emerged as a major challenge that is faced by NPOs with the effect being multiplied by the pandemic and remote working. This paper intends to examine the relevance of the impact of executive isolation experienced by top management leading to increase in the attrition at the CXO levels in NPOs due to their increasing dissatisfaction. To make a thorough study, a detailed literature review has been done followed by qualitative research methods of individual interviews, group interviews and surveys to ascertain the implications of CXO-level executive isolation on the CXOs attrition in NPOs.
Findings
The executive isolation experienced by CEOs makes them develop certain preconceived set of beliefs. By being isolated from the direct report CXOs and action on the ground and working from a remote location, they tend to inculcate their own decisions into the direct reports, thereby depriving them of authority and autonomy. This starts leading to the high level of CXO attrition.
Research limitations/implications
This paper has tried to study the linkage of the executive isolation at top management with the levels of CXO dissatisfaction leading to attrition at NPOs. This topic appears to be much-needed to be understood, especially when the new normal of work is being redefined.
Practical implications
The paper enumerates that the NPOs can attempt to deal with the challenges of engaging CXOs through virtual working; however, the mindfulness can be impacted by the experiences of executive isolation at management levels. This, in turn, can lead to lower morale, compromised performance resulting in CXO-level dissatisfaction and attritions.
Originality/value
With the limited awareness about executive isolation and its multiplier effect due to the pandemic, NPOs, like other enterprises, had to resort to virtual working. However, executive isolation at management levels apparently leads to reduction in the CXO-level engagement with the teams under them and with the CEO to which they report. This aspect can lead to the NPOs not being able to achieve their impact objectives during the outward turbulence and inward challenges of CXO-level attritions because of the CXO-level dissatisfaction.
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Dongmei Hu, Yang Peng, Tony Fang and Charles Weizheng Chen
The purpose of this study is to examine the effects of executives’ overseas education and work experience on enterprise digital as executives’ overseas background is critical to…
Abstract
Purpose
The purpose of this study is to examine the effects of executives’ overseas education and work experience on enterprise digital as executives’ overseas background is critical to the development of enterprises. It also explored the mediating role of enterprise digital transformation on the relationship between executives’ overseas background and enterprise growth.
Design/methodology/approach
Chinese A-share companies listed on the Shanghai and Shenzhen Stock Exchanges for the period 2018–2020 were analyzed using regression analysis and bootstrapping to verify hypothesized relationships.
Findings
Executives’ overseas study and work experience both enhanced enterprise digital transformation significantly, thus improving enterprise growth. The level of employee education moderated the mediating role proposed in the theoretical model. Moreover, the promoting effect of executives’ overseas background on enterprise digital transformation was more significant for non-state-owned enterprises and those in eastern China.
Practical implications
The findings provide reference for the formulation and optimization of companies’ human resource structure and have implications on the improvement of enterprise digital transformation and enterprise growth.
Originality/value
This study explored the factors influencing enterprise digital transformation at the microlevel of corporate human capital, thereby providing microlevel empirical evidence for research on the factors influencing enterprise digital transformation. Its findings shed light on the mechanism and context under which executives with overseas backgrounds may enhance enterprise digital transformation and growth.
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Hongji Xie, Zhen Yang and Shulin Xu
Economic policy uncertainty (EPU) has huge impact and harm on real economy, so the economic logic and other economic effects behind this must be further studied. By constructing…
Abstract
Purpose
Economic policy uncertainty (EPU) has huge impact and harm on real economy, so the economic logic and other economic effects behind this must be further studied. By constructing the “China Economic Policy Uncertainty Index” to capture the degree of EPU faced by Chinese companies, the authors empirically test whether and how EPU affects the level of executives' perquisite consumption.
Design/methodology/approach
This study investigates the relationship between EPU and executive perquisite consumption based on a sample of 3,185 publicly listed firms in China. To examine the relationship between EPU and executives' perquisite consumption, a mixed least squares method was used for regression. To alleviate the problem of missing variables that do not change over time and control the influence of unobservable individual heterogeneity at the firm level, the firm fixed effects model is used for regression.
Findings
The study finds that EPU is positively associated with executive perquisite consumption. This positive association is stronger for firms with smaller size, lower management shareholding and higher levels of separation of ownership and control. Effective external governance (i.e., analyst coverage, media coverage, auditor and market competition) can mitigate the relationship between EPU and executive perquisite consumption. Further analysis reveals that EPU increases executive perquisite consumption by holding more cash and decreasing firm risk taking. EPU hurts market value of firms by boosting executive perquisite consumption and tunneling.
Practical implications
In an environment with high EPU, the board of directors should reduce managers' compensation performance sensitivity to ease the agency conflict caused by uncertainty. Firms should improve their governance mechanisms and standard and pay attention to their environmental changes. Policymakers should pay attention to maintaining the continuity and predictability of policies, stabilizing the economic policy expectations of market entities and avoiding frequent changes in policies that can harm economic and firm value. The regulatory authorities should actively guide listed companies to increase active information disclosure during periods of high policy uncertainty.
Originality/value
This study contributes to the research on corporate governance by showing how EPU influences executives' behaviors. The authors advance relative studies by showing that this uncertainty embedded in a firm's external environments influences executive perquisite consumption. This study also contributes to the literature on how internal and external governances influence corporate behavior during uncertainty. These findings extend this line of research by suggesting that effective external governance is an attribute that can alleviate the effect of uncertainty on managers' opportunistic behaviors.
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Jonghan Park, Tianming Zhang, Spencer Pierce and Yonghong Jia
The authors examine the association between corporate social responsibility (CSR) and abnormal executive compensation. The authors hypothesize that socially responsible firms are…
Abstract
Purpose
The authors examine the association between corporate social responsibility (CSR) and abnormal executive compensation. The authors hypothesize that socially responsible firms are more likely to pay their executives at a level that is in line with economic determinants.
Design/methodology/approach
Using the expected compensation model developed by Core et al. (2008), the authors test our hypothesis using a large sample of US public companies.
Findings
The authors find that CSR performance is negatively associated with how much executive compensation deviates from the expected level. The authors further examine whether CSR performance is associated with excess compensation or inadequate compensation and find that socially responsible firms are less likely to pay their executives either excessively or inadequately.
Originality/value
This study provides evidence on the association between CSR performance and abnormal executive compensation, especially how CSR is associated with inadequate compensation, an area that has been largely overlooked by the literature.
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Ritu Pareek and Tarak Nath Sahu
Taking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social…
Abstract
Purpose
Taking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social responsibility (CSR) performance of the firms, this study attempts to explore the non-linear relationship between the said variables.
Design/methodology/approach
The study utilizes a strongly balanced panel data set of 179 non-financial National Stock Exchange (NSE) 500 listed firms for the study period of 2015–2020. The study further employs both static as well as Arellano-Bond dynamic panel model under generalized method of moments (GMM) framework to establish the relationship between executive compensation and CSR performance of the sampled firms.
Findings
The study acknowledges an inverted U-shaped relationship between executive compensation and environmental, social and governance (ESG) score of the firms. According to the robust estimator, an increase in the level of executive compensation is said to affect CSR performance positively until it surpasses a threshold level of 18.7 percent.
Practical implications
One of the major takeaways that the study provides for the corporate policymakers is that the level of compensation can only motivate the executives to take up socially responsible work up to a certain level surpassing which the executives becomes resistant towards any benefits provided by the CSR performance and get inclined towards economical performances of the firm. At the later stage, the economical expansionary investment benefits overweigh the personal career benefit gained by the executives from the CSR performances of the firm.
Originality/value
The nonlinearity relationship between executive compensation and CSR performance and the threshold level providing the two-fold effect of compensation on the CSR performance of the firms attempted by this study is a rare attempt in an emerging economy like India.
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Guorong Zhu, Lan Wang and Douglas T. Hall
This paper employs human resources (HR) analytics to investigate the pathways through which high-potential managers ascend to C-suite positions, and how different developmental…
Abstract
Purpose
This paper employs human resources (HR) analytics to investigate the pathways through which high-potential managers ascend to C-suite positions, and how different developmental paths influence turnover among executives.
Design/methodology/approach
By combining job analysis and competency assessment with sequence analysis, the authors utilize HR analytics to analyze the work experiences of 53 general managers spanning 57 years (n = 2,742), encompassing various roles, job requirements, and 20 executive competencies attached to over 1,000 positions.
Findings
This study's findings reveal three distinct developmental paths that lead to the C-suite, characterized by differences in the content, context, timing, and complexity of work experience. Furthermore, the authors identify that a more complex developmental path tends to reinforce executives' competency in self-awareness while inhibiting their development of technical competency, ultimately resulting in reduced executive turnover.
Originality/value
By employing HR analytics to analyze empirical data embedded in job and organizational contexts, this study sheds light on the critical role of timing and complexity of work experiences in executive development. It also offers practical implications for firms seeking to optimize their leadership pipeline and reduce executive turnover by leveraging HR analytics effectively.
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Rishi Kappal and Dharmesh K. Mishra
Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning…
Abstract
Purpose
Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning culture. The purpose of this study is to examine the Executive isolation phenomenon where relationships between power distance, organizational culture and executive isolation of Chief Executive Officers (CEOs) are analysed on how it is considered by their teams. The same is contextualized through the inputs received through interviews conducted with CEOs and employee surveys.
Design/methodology/approach
The qualitative in-depth interviews of five CEOs, and survey across 34 of the 50 employees, were undertaken over the course of two phases of this study. The investigation focused on identifying executive isolation of CEOs and perspectives of employees that can impact the leadership and learning progress of organizations based on work culture, power distance and decision-making; awareness and experience of executive isolation; workplace friendliness and rejection; and management development initiatives to minimize the impact of executive isolation. Qualitative data analysis was conducted using MAXQDA 2022 (Verbi Software, Berlin, Germany), which is a qualitative data analysis software.
Findings
The findings highlight and expose the significant gap between understanding and analysing of the factors due to which the CEOs undergo executive isolation. It also extends to providing details related to the lack of awareness of the teams’ actions contributing to the CEOs’ isolation. It further highlights the fact that the difference of perspectives between the CEOs and teams leads to the organization slowing in its learning activities due to the leaders’ own challenges of executive isolation The findings also provide immense need of developing knowledge assets and management development initiatives for learning interventions, to help understand, analyse and mitigate executive isolation, in the interest of the organizational learning and development.
Originality/value
Earlier research work have contextualized the executive isolation impact on CEOs ability to be a leader. This study extends it to include the implications of leadership and learning culture on the teams that are affected by organization culture, power distance, decision-making and analysing the gap between the understandings about executive isolation of the CEOs. Eventually, it interprets how CEOs courting the executive isolation impacts the overall developmental culture of the organization. This will help in asserting the serious need of new learning frameworks needed to minimize the impact of CEO-level executive isolation.
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Ning Xu, Di Zhang, Yutong Li and Yingjie Bai
Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages…
Abstract
Purpose
Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages of manufacturing enterprises. To explore what kind of executive incentive contracts can truly stimulate green technology innovation, this study aims to distinguish the equity incentive and reputation incentive, upon their contractual elements characteristics and green governance effects, and then put forward suggestions for green technology innovation accordingly.
Design/methodology/approach
This study establishes an evaluation model and uses empirical methods to test. Concretely, using data from A-share listed manufacturing companies for the period from 2007 to 2020, this study compares and analyzes the impact of equity and reputation incentive on green technology innovation and explores the relationship between internal green business behavior and external green in depth.
Findings
This study finds that reputation incentives focus on long-term and non-utilitarian orientation, which can promote green technology innovation in enterprises. While equity incentives, linked to performance indicators, have a inhibitory effect on green technology innovation. Internal and external institutional factors such as energy conservation measures, the “three wastes” management system, and environmental recognition play the regulatory role in the relationship between incentive contracts and green technology innovation.
Originality/value
Those findings validate and expand the efficient contracting hypothesis and the rent extraction hypothesis from the perspective of green technology innovation and provide useful implications for the design of green governance systems in manufacturing enterprises.
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Jiali Fang, Yining Tian and Yuanyuan Hu
The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent…
Abstract
Purpose
The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent firms.
Design/methodology/approach
We conduct regression analyses using a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020 to examine whether CSR performance is similar from one firm to the next as executives switch jobs.
Findings
We find a positive relationship between the CSR performance of former and subsequent firms under job-hopping executives. This relationship is the strongest in the year of the job switch; it weakens in the second year and eventually disappears in the third year. In addition, we show that this relationship benefits different CSR stakeholder groups and is contingent on executive and subsequent firm attributes and job-hopping characteristics. Furthermore, we demonstrate that firms that hire a new chief executive officer from a firm with a strong track record in CSR, the new firm experiences a significant surge in CSR performance compared with firms that do not experience such a shock.
Practical implications
This study has implications for executive hiring decisions.
Originality/value
This study extends the understanding of CSR determinants through the lens of inter-organisational ties associated with job-hopping executives.
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Arifur Khan, Sutharson Kanapathippillai and Steven Dellaportas
The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC…
Abstract
Purpose
The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC, pay a premium to CEOs with different skill sets (general or specific); and whether a pay premium mitigates the potential for CEO turnover.
Design/methodology/approach
This study uses a sample of 5,305 firm-year observations on a data set drawn from companies listed on the Australian Securities Exchange for the period 2007 to 2014. The authors use ordinary least squares as well as logit regression techniques to test the formulated hypotheses. Difference in difference and propensity score matching techniques were undertaken to address the endogeneity concerns.
Findings
The findings show that firms with a RC pay a higher total remuneration to CEOs compared to firms without a RC. Furthermore, firms with a RC, value and reward CEOs with general skills by paying a premium not offered to CEOs with industry-specific skills. Paying a premium, in turn, mitigates CEO turnover by strengthening the CEO’s commitment to the organisation.
Originality/value
The study helps us to understand the critical role played by the RC in the remuneration of CEOs. The findings show that RCs act as an effective governance mechanism to deal with issues of executive remuneration and to retain skilled CEOs. Additionally, CEOs who acquire and develop general managerial skills will be able to extract higher pay from improved bargaining power. The findings will be of relevance to shareholders, regulators and company management who have an interest in executive pay and performance.
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