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1 – 10 of over 8000

Abstract

Past theorizing and empirical work suggest that long-standing strategic leaders generate harmful attention and information-processing effects in their organizations, which in turn impair organizational learning and performance. In contrast, our argument is that longevity and its attendant inertia foster useful transformational and strategic persistence for organizations pursuing stretch goals. Through attentional vigilance and restricted focus, inertia may create the cognitive profile necessary for effective learning when organizations pursue the seemingly impossible. We empirically examine our ideas in the context of the French royal navy and the naval battles it had with the British in the seventeenth and eighteenth centuries. More specifically, we focus on two distinct but related stretch periods during which the French royal navy was tasked with building a powerful naval force and using it to gain naval supremacy over Great Britain. Given its exceptionally weak starting position at the beginning of the two studied periods and its desire to displace the established and advantaged navy of the era, the French had a lofty task. Our results are supportive of the stability argument, with leader longevity and inertia being positive for outcomes.

Article
Publication date: 6 May 2014

Ming Piao

The purpose of this paper is to investigate the longevity implications of exploitation and exploration. It examines the main effect of exploitation, the main effect of…

Abstract

Purpose

The purpose of this paper is to investigate the longevity implications of exploitation and exploration. It examines the main effect of exploitation, the main effect of exploration, and the interaction effect of exploitation and exploration on organizational longevity.

Design/methodology/approach

This study employs Cox Proportional Hazard Model in analyzing 20-year data from the hard disk drive industry.

Findings

Exploitation, independent of exploration, has a positive impact on organizational longevity. Exploration, independent of exploitation, has a curvilinear impact on organizational longevity. Jointly, exploitation weakens the curvilinear relationship between exploration and organizational longevity.

Research limitations/implications

This study challenges the dualistic view that exploitation is for “current viability” and exploration is for “future viability.” It suggests that firms need to actively engage in (instead of compromise) both exploitation and exploration in order to prolong their lifespan despite the counter force triggered by the negative dynamics between exploitation and exploration.

Practical implications

In order to prolong organizational longevity, firms need to fully engage in (but not compromise) their existing product-market domains, actively explore (but not over-explore) their new product-market domain, and to embrace (but not avoid) the tension between exploitation and exploration.

Originality/value

This study is one of the few that systematically and empirically examined the longevity implications of exploitation and exploration. It adds specificity and precision to the understanding of how exploitation and exploration, independently and jointly, affect organizational longevity.

Details

European Journal of Innovation Management, vol. 17 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 1 April 2020

Shabir Ahmad, Rosmini Omar and Farzana Quoquab

The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.

Abstract

Purpose

The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.

Design/methodology/approach

Data collected from 553 executives of 200 family firms that survived to the second generation and beyond was analyzed using partial least square (PLS) approach of structural equation modeling (SEM) to test the hypotheses and validate the model.

Findings

The results provided evidence of the significant influence of family involvement in business on sustainable longevity of family firms and partial mediation of innovation capability between family involvement in business and corporate sustainable longevity.

Research limitations/implications

The sample included family firms owned and governed by the owner family. The future researchers may focus on professionally managed or publicly listed family firms.

Practical implications

The path to family firms' sustainable longevity goes through innovation capability apart from effective family control, succession, commitment to the business and family enrichment. That requires the family firm to be proactive in innovation capability.

Originality/value

Family firms are the dominant form of business representing around 80% of global business structure that strives for survival and consistently pursues sustainable longevity strategies. In the current globally competitive environment, innovation capability has become a matter of life and death for any firm. Based on the transaction cost economics (TCE) theory of family firms, this study proposes an integrative model of sustainable longevity for family firms.

Details

Journal of Family Business Management, vol. 11 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 14 January 2020

Igor Fedotenkov and Pavel Derkachev

The purpose of this paper is to explain relations between socioeconomic factors and gender longevity gap and to test a number of contradicting theories.

Abstract

Purpose

The purpose of this paper is to explain relations between socioeconomic factors and gender longevity gap and to test a number of contradicting theories.

Design/methodology/approach

Fixed effects models are used for cross-country panel data analysis.

Findings

The authors show that in developed countries (Organization for Economic Cooperation and Development and European Union) a lower gender longevity gap is associated with a higher real GDP per capita, a higher level of urbanization, lower income inequality, lower per capita alcohol consumption and a better ecological environment. An increase in women’s aggregate unemployment rate and a decline in men’s unemployment are associated with a higher gap in life expectancies. There is also some evidence that the effect of the share of women in parliaments has a U-shape; it has a better descriptive efficiency if taken with a four-year lag, which approximately corresponds to the length of political cycles.

Research limitations/implications

Findings are valid only for developed countries.

Practical implications

The findings are important for policy discussions, such as designs of pension schemes, gender-based taxation, ecological, urban, health and labor policy.

Social implications

The factors that increase male and female longevities also reduce the gender longevity gap.

Originality/value

The results contradict to a number of studies for developing countries, which show that lower economic development and greater women discrimination result in a lower gender longevity gap.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2019-0082

Details

International Journal of Social Economics, vol. 47 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 March 2007

Milton Mayfield, Jacqueline Mayfield and David Stephens

To analyze the relationship between an organization's generic strategy and its longevity.

883

Abstract

Purpose

To analyze the relationship between an organization's generic strategy and its longevity.

Design/methodology/approach

Companies in the USA, comic book industry were classified in the Miles and Snow generic strategic types. An ANOVA test was then used to determine the relationship between these strategic types and organizational longevity (time from market entry to exit).

Findings

Results indicate a significant link between strategic type and longevity. Organizational strategy accounts for 35 percent of the variance in longevity. Companies with a defender strategy had the greatest longevity, and prospectors had the shortest.

Research limitations/implications

The study is conducted in only one industry which may limit its generalizability.

Practical implications

This study provides insights into the role of organizational strategy on longevity, and can be used for strategic decision‐making as well as investment decisions.

Originality/value

This study is the first to link the Miles and Snow typology to organizational longevity. It also provides insights into the role of strategy in creative and knowledge‐based organizations.

Details

Competitiveness Review: An International Business Journal, vol. 17 no. 1/2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 28 September 2012

Josep Tàpies and María Fernández Moya

The purpose of this article is to offer an empirical study on the particular topic of the role of values on longevity of family firms in order to open the future research agenda.

1426

Abstract

Purpose

The purpose of this article is to offer an empirical study on the particular topic of the role of values on longevity of family firms in order to open the future research agenda.

Design/methodology/approach

To analyse the first issue, the article contrasts samples from Spain, Italy, France and Finland. The second and third issues are focused on the Spanish sample, but, to enrich the debate, Italian and French samples have also been included.

Findings

The present paper seeks to shed light on this stream of research by developing an analysis that focuses on three key elements: the ranking of values that have the most influence on family business longevity, the process of value transmission, and the condition of longevity as an asset.

Originality/value

The link between longevity and values has been pointed out by several authors, who underlined values as an important factor to support a long‐term vision, as well as a source of competitive advantage based on using values as specific company resources. Nevertheless, not many empirical works have dealt with this topic.

Details

Journal of Family Business Management, vol. 2 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 16 January 2017

Valeria D’Amato, Mariarosaria Coppola, Susanna Levantesi, Massimiliano Menzietti and Maria Russolillo

The improvements of longevity are intensifying the need for capital markets to be used to manage and transfer the risk through longevity-linked securities. Nevertheless…

Abstract

Purpose

The improvements of longevity are intensifying the need for capital markets to be used to manage and transfer the risk through longevity-linked securities. Nevertheless, the difference between the reference population of the hedging instrument and the population of members of a pension plan, or the beneficiaries of an annuity portfolio, determines a significant heterogeneity causing the so-called basis risk. In particular, it is shown that if insurers use financial instruments based on national indices to hedge longevity risk, this hedge can become imperfect. For this reason, it is fundamental to arrange a model allowing to quantify the basis risk for minimising it through a correct calibration of the hedging instrument.

Design/methodology/approach

The paper provides a framework for measuring the basis risk impact on the. To this aim, we propose a model that measures the population basis risk involved in a longevity hedge, in the functional data model setting. hedging strategies.

Findings

The innovative contribution of the paper occurs in two key points: the modelling of mortality and the hedging strategy. Regarding the first point, the paper proposes a functional demographic model framework (FDMF) for capturing the basis risk. The FDMF model generally designed for single population combines functional data analysis, nonparametric smoothing and robust statistics. It allows to capture the variability of the mortality trend, by separating out the effects of several orthogonal components. The novelty is to set the FDMF for modelling the mortality of the two populations, the hedging and the exposed one. Regarding the second point, the basic idea is to calibrate the hedging strategy determining a suitable mixture of q-forwards linked to mortality rates to maximise the degree of longevity risk reduction. This calibration is based on the key q-duration intended as a measure allowing to estimate the price sensitivity of the annuity portfolio to the changes in the underlying mortality curve.

Originality/value

The novelty lies in linking the shift in the mortality curve to the standard deviation of the historical mortality rates of the exposed population. This choice has been determined by the observation that the shock in a mortality rate is age dependent. The main advantage of the presented framework is its strong versatility, being the functional demographic setting a generalisation of the Lee-Carter model commonly used in mortality forecasting, it allows to adapt to different demographic scenarios. In the next developments, we set out to compare other common factor models to assess the most effective longevity hedge. Moreover, the parsimony for considering together two trajectories of the populations under consideration and the convergence of long-term forecast are important aspects of our approach.

Details

The Journal of Risk Finance, vol. 18 no. 1
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 18 October 2011

Sabine Boerner, Marius Linkohr and Sabine Kiefer

This paper aims to investigate the moderating role of top management team (TMT) longevity on the TMT diversity‐firm performance relationship.

3844

Abstract

Purpose

This paper aims to investigate the moderating role of top management team (TMT) longevity on the TMT diversity‐firm performance relationship.

Design/methodology/approach

The paper presents results from a quantitative longitudinal study of 59 TMTs in German companies in different industries.

Findings

For age diversity, dominant educational background diversity, and diversity in dominant industry experience, the curvilinear moderating effect of TMT longevity on the TMT diversity–firm performance relationship is confirmed. However, for organizational tenure diversity, the form of the moderating effect is contrary to expectations (being u‐shaped).

Research limitations/implication

In line with previous studies, the results were sensitive to the performance measures in use. Furthermore, the results should not be generalized since they may be sensitive to the sector under study and the small sample size.

Originality/value

First, a curvilinear moderating effect of TMT longevity on the TMT diversity‐firm performance relationship is investigated for the first time. Second, although the selected diversity dimensions have been investigated in previous TMT studies, they are examined simultaneously for the first time. Third, this study analyzes TMTs of large and medium‐sized German corporations operating in a variety of sectors. Fourth, relating demographic data on TMTs collected in 2004 to performance data for the years 2004 to 2007, the present paper presents one of the few longitudinal studies in the context of TMT diversity.

Details

Team Performance Management: An International Journal, vol. 17 no. 7/8
Type: Research Article
ISSN: 1352-7592

Keywords

Article
Publication date: 2 July 2020

Canicio Dzingirai and Nixon S. Chekenya

The life insurance industry has been exposed to high levels of longevity risk born from the mismatch between realized mortality trends and anticipated forecast. Annuity…

Abstract

Purpose

The life insurance industry has been exposed to high levels of longevity risk born from the mismatch between realized mortality trends and anticipated forecast. Annuity providers are exposed to extended periods of annuity payments. There are no immediate instruments in the market to counter the risk directly. This paper aims to develop appropriate instruments for hedging longevity risk and providing an insight on how existing products can be tailor-made to effectively immunize portfolios consisting of life insurance using a cointegration vector error correction model with regime-switching (RS-VECM), which enables both short-term fluctuations, through the autoregressive structure [AR(1)] and long-run equilibria using a cointegration relationship. The authors also develop synthetic products that can be used to effectively hedge longevity risk faced by life insurance and annuity providers who actively hold portfolios of life insurance products. Models are derived using South African data. The authors also derive closed-form expressions for hedge ratios associated with synthetic products written on life insurance contracts as this will provide a natural way of immunizing the associated portfolios. The authors further show how to address the current liquidity challenges in the longevity market by devising longevity swaps and develop pricing and hedging algorithms for longevity-linked securities. The use of a cointergrating relationship improves the model fitting process, as all the VECMs and RS-VECMs yield greater criteria values than their vector autoregressive model (VAR) and regime-switching vector autoregressive model (RS-VAR) counterpart’s, even though there are accruing parameters involved.

Design/methodology/approach

The market model adopted from Ngai and Sherris (2011) is a cointegration RS-VECM for this enables both short-term fluctuations, through the AR(1) and long-run equilibria using a cointegration relationship (Johansen, 1988, 1995a, 1995b), with a heteroskedasticity through the use of regime-switching. The RS-VECM is seen to have the best fit for Australian data under various model selection criteria by Sherris and Zhang (2009). Harris (1997) (Sajjad et al., 2008) also fits a regime-switching VAR model using Australian (UK and US) data to four key macroeconomic variables (market stock indices), showing that regime-switching is a significant improvement over autoregressive conditional heteroscedasticity (ARCH) and generalised autoregressive conditional heteroscedasticity (GARCH) processes in the account for volatility, evidence similar to that of Sherris and Zhang (2009) in the case of Exponential Regressive Conditional Heteroscedasticity (ERCH). Ngai and Sherris (2011) and Sherris and Zhang (2009) also fit a VAR model to Australian data with simultaneous regime-switching across many economic and financial series.

Findings

The authors develop a longevity swap using nighttime data instead of usual income measures as it yields statistically accurate results. The authors also develop longevity derivatives and annuities including variable annuities with guaranteed lifetime withdrawal benefit (GLWB) and inflation-indexed annuities. Improved market and mortality models are developed and estimated using South African data to model the underlying risks. Macroeconomic variables dependence is modeled using a cointegrating VECM as used in Ngai and Sherris (2011), which enables both short-run dependence and long-run equilibrium. Longevity swaps provide protection against longevity risk and benefit the most from hedging longevity risk. Longevity bonds are also effective as a hedging instrument in life annuities. The cost of hedging, as reflected in the price of longevity risk, has a statistically significant effect on the effectiveness of hedging options.

Research limitations/implications

This study relied on secondary data partly reported by independent institutions and the government, which may be biased because of smoothening, interpolation or extrapolation processes.

Practical implications

An examination of South Africa’s mortality based on industry experience in comparison to population mortality would demand confirmation of the analysis in this paper based on Belgian data as well as other less developed economies. This study shows that to provide inflation-indexed life annuities, there is a need for an active market for hedging inflation in South Africa. This would demand the South African Government through the help of Actuarial Society of South Africa (ASSA) to issue inflation-indexed securities which will help annuities and insurance providers immunize their portfolios from longevity risk.

Social implications

In South Africa, there is an infant market for inflation hedging and no market for longevity swaps. The effect of not being able to hedge inflation is guaranteed, and longevity swaps in annuity products is revealed to be useful and significant, particularly using developing or emerging economies as a laboratory. This study has shown that government issuance or allowing issuance, of longevity swaps, can enable insurers to manage longevity risk. If the South African Government, through ASSA, is to develop a projected mortality reference index for South Africa, this would allow the development of mortality-linked securities and longevity swaps which ultimately maximize the social welfare of life assurance policy holders.

Originality/value

The paper proposes longevity swaps and static hedging because they are simple, less costly and practical with feasible applications to the South African market, an economy of over 50 million people. As the market for MLS develops further, dynamic hedging should become possible.

Details

The Journal of Risk Finance, vol. 21 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 2 February 2010

Mumin Dayan

The purpose of this paper is to examine the mediating effects of team commitment and longevity between managerial trust and team performance (e.g. team learning and…

2257

Abstract

Purpose

The purpose of this paper is to examine the mediating effects of team commitment and longevity between managerial trust and team performance (e.g. team learning and product success), using environmental turbulence as a moderator.

Design/methodology/approach

To test the proposed model, data were collected from 335 team members and team leaders of 107 Turkish new product/project development teams.

Findings

The results of the structural equation model showed that managerial trust (as rated by team members) was significantly associated with team commitment and longevity; and team commitment and longevity significantly mediated the relationships between managerial trust and team learning, and managerial trust and product success. Moreover, the findings showed that the impact of managerial trust on team commitment and longevity was higher when environmental turbulence was high. However, the mediating impact of team commitment was significant regardless of market or technical turbulence; and team longevity had a significant mediating impact if environment was turbulent. Theoretical and managerial implications of the study findings were discussed at the end.

Originality/value

The novelty of the research lies in the empirical test of managerial trust in the context of teams with innovation projects (e.g. product development teams). Furthermore, the inclusion of team commitment and longevity as moderators represents an added value of the study.

Details

Journal of Business & Industrial Marketing, vol. 25 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 10 of over 8000