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Article
Publication date: 6 October 2022

Yantai Chen, Yanlin Guo and Xuhui Hu

This study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital

Abstract

Purpose

This study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital – represent individual-level micro-foundations that influence corporate social responsibility (CSR). It further explores the interaction mechanism between the three underpinnings in influencing CSR, and their influence depends on the technological turbulence caused by big-data-related technologies.

Design/methodology/approach

This study uses a quantitative research method and partial least squares structural equation modelling (PLS-SEM) to test the relationship between latent factors based on a sample of 270 Chinese top managers.

Findings

The three core underpinnings of DMCs are positively related to CSR. Managerial human capital and managerial social capital mediate the relationship between managerial cognition and CSR. Technological turbulence's moderating effects are also tested. Specifically, technological turbulence amplifies the positive relationship between managerial cognition, managerial human capital and CSR but negatively moderates the relationship between managerial social capital and CSR.

Originality/value

Why are some firms more willing to participate in CSR than others mainly depend on the fact that the actual participants of CSR are the top managers who formulate strategies and implement CSR plans. This study, grounded in the DMCs framework and the upper echelons perspective, is arguably the first to link DMCs' three core underpinnings and CSR, and further explore the multiple drivers' mechanisms and boundary conditions. This study contributes to individual micro-foundation of CSR literature, and advances the understanding of whether and how top managers influence CSR engagement.

Open Access
Article
Publication date: 25 July 2022

Tim Heubeck and Reinhard Meckl

Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long…

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Abstract

Purpose

Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long been factored into organizational theories, scholars still lack a complete understanding of the specific managerial capabilities that drive innovation in today's digital economy. The present study builds on dynamic managerial capabilities theory to close this research gap. The paper proposes managers' dynamic capabilities and their three underlying drivers – managerial human capital, social capital, and cognition – as a direct antecedent to digital firms' innovativeness.

Design/methodology/approach

The study draws on survey data from German Industry 4.0 manufacturing firms, which were analyzed using regression analysis.

Findings

The results confirm managers' dynamic capabilities as facilitators of innovation. In contrast to previous research on nondigital industries, the findings demonstrate that only the complete portfolio of managers' dynamic capabilities promotes innovativeness in digital firms. The study provides evidence for the importance of dynamic managerial capabilities in the digital economy yet contradicts previous research on nondigital industries related to the advantageousness of managers' human capital, social capital, and cognition for innovation.

Originality/value

The study contributes to the literature by being the first to holistically test the effects of dynamic managerial capabilities on innovation in digital firms. The results offer a nuanced account of managers' dynamic capabilities, thereby expanding dynamic managerial capabilities theory to the digital economy.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 3 June 2019

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The purpose of this study is to establish the antecedents and the outcomes of foreign market knowledge (FMK) accumulation in the context of emerging economies. The antecedent is…

Abstract

Purpose

The purpose of this study is to establish the antecedents and the outcomes of foreign market knowledge (FMK) accumulation in the context of emerging economies. The antecedent is dynamic managerial capability (DMC) with managerial human capital, social capital and cognition as its dimensions. The outcomes are financial and non-financial performances. This study bridges the gap by linking individual-level capability and FMK accumulation to achieve performance.

Design/methodology/approach

This study has utilized a survey-based approach to collect data. The sample consists of 365 export manufacturing firms operating in the apparel industry of Bangladesh. Structural equation modeling analysis has been used to test the hypothesized model.

Findings

The direct effects of managerial social capital and managerial cognition on FMK accumulation are positively significant. The results also show that FMK accumulation fully mediates the relationship between: managerial social capital and financial and non-financial performances and managerial cognition and financial and non-financial performances.

Practical implications

Export manufacturing entrepreneurs in the low-tech industry should focus more on the network development and leverage on their cognitive mentality as a global mindset to succeed in international markets. These two factors are critical to accumulate foreign knowledge.

Originality/value

This study provides empirical evidence on dynamic managerial capability and FMK accumulation of export manufacturing firms in low-tech emerging economies context. Out of the three building blocks of DMC, this study has found that managerial social capital and managerial cognition of entrepreneurs are crucial as antecedents to FMK accumulation and firm performance.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 September 2021

Ahmed Agyapong, Suzzie Owiredua Aidoo and Samuel Yaw Akomea

The paper sought to uncover the conditions under which managerial capability enhances performance while considering the role of social capital within the unique boundary…

Abstract

Purpose

The paper sought to uncover the conditions under which managerial capability enhances performance while considering the role of social capital within the unique boundary conditions created by competitive intensity.

Design/methodology/approach

The authors use multi-source data from 206 managers and owners of SMEs from a Sub-Saharan African nation – Ghana.

Findings

Using structural equation modeling (SEM) to analysis the data, the findings revealed that social capital serves as a mechanism through which managerial capability influences performance. Furthermore, the results indicate that competitive intensity does not significantly moderate this important indirect relationship. Implications: This study provides relevant knowledge for scholars, practitioners and policymakers on the role of managerial capability and how it may be harnessed in enhancing performance.

Originality/value

This paper provides a holistic understanding of the capability performance relationship in attempts at extending the literature by examining social capital as a mediator and competitive intensity as a contingent factor of this important relationship in a conditional indirect model.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 9 February 2021

Siddharth Gaurav Majhi, Arindam Mukherjee and Ambuj Anand

The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to…

Abstract

Purpose

The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs.

Design/methodology/approach

This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities.

Findings

This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring.

Research limitations/implications

The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities.

Originality/value

To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 53 no. 1
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 13 January 2021

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level…

Abstract

Purpose

The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level capability has been found to be beneficial to business-to-business (B2B) transactions. However, the assessments of DMC as the antecedent to complement MO in achieving firm performance are rare. To address this knowledge gap, this study builds upon a research framework on the DMC theory and MO literature. Additionally, this study aims to investigate how export assistance avails MO-firm performance relationship and assists entrepreneurs to thrive in the international market.

Design/methodology/approach

The research was conducted among the entrepreneurial export manufacturing firms in the apparel industry in Bangladesh. Structural equation modelling was used to investigate the hypothesized relationship among 329 firms.

Findings

Two attributes of DMC, namely, managerial social capital and managerial cognition of entrepreneurs improve the MO process of export manufacturing firms. MO mediates the relationship between DMC and firm performance. Additionally, export assistance positively moderates the relationship between MO and the financial performance of the firm.

Originality/value

MO requires complementary capabilities to realize the value of it efficiently. This study strongly advocates entrepreneurs to nurture DMC to leverage MO and capitalize on emerging opportunities by productively using export assistance. Firms in the emerging economies often suffer from resource-scarcity and export assistance mitigates barriers to expand international operations and yield financial liberty to the firms operating in the international B2B market.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 February 2022

Jian Guan, Fang Deng and Dao Zhou

Focusing on the important representative of firm intellectual capital (IC), this research explores the effects of chief executive officer’s (CEOs') managerial human capitals on…

Abstract

Purpose

Focusing on the important representative of firm intellectual capital (IC), this research explores the effects of chief executive officer’s (CEOs') managerial human capitals on sustaining superior performance in Chinese transition economy to prove the dynamic and strategic value of IC and fulfill the gap of lacking emerging market studies in this research field.

Design/methodology/approach

Based on dynamic managerial capability theoretical framework, the authors propose a dynamic management path to analyze the influencing mechanism of CEOs' managerial human capitals to firm performance persistence and the moderating effect of environment uncertainty. Using a panel data of Chinese publicly listed firms from 2008 to 2017, it adopts dynamic first-order autoregressive models to examine these hypotheses. Several tests are conducted to further analyze and ensure that the results are robust and reliable.

Findings

These managerial human capitals reveal heterogenous impacts on sustaining superior performance, and environment uncertainty is a valid moderating variable to further distinguish their dynamic values. The supplementary analyses show the integrating effect of an MBA degree and output functional experience is positive and significant, and the results in Chinese state-owned and private firm subsamples are distinct.

Practical implications

It is beneficial for corporate stakeholders to judge and select CEOs and for policymakers to improve the efficiency advantage of IC in Chinese emerging market.

Originality/value

This study first explores the relationship between CEOs' managerial human capitals and superior performance persistence. Through introducing a dynamic perspective, it has extended existing performance persistence research into individual level and provided a new intellectual source of sustainable competitive advantages.

Details

Journal of Intellectual Capital, vol. 24 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 28 October 2019

Jason Chen and Jennifer Chen

The purpose of this paper is to determine whether managerial ability affects the quality of corporate environmental financial disclosures.

Abstract

Purpose

The purpose of this paper is to determine whether managerial ability affects the quality of corporate environmental financial disclosures.

Design/methodology/approach

Regression analysis is used to examine the association between managerial ability and the quality of corporate environmental financial disclosures.

Findings

The results of primary empirical tests find a negative association between projection errors of corporate environmental capital expenditures and managerial ability. Overall results suggest that (1) managers appear to be equally capable of making relatively accurate projections of total corporate capital expenditures, and (2) managers with higher managerial ability are capable of estimating the projection amounts that appear to be significant, yet do not deviate substantially to what they intend to spend in the subsequent year(s) for legitimation purposes.

Research limitations/implications

The data collected and analyzed include only publicly traded companies in the environmentally sensitive industries in the USA; therefore, the results should not be generalized to non-US listed, private and non-publicly traded businesses.

Practical implications

Results of this study provide practical implications for stakeholders in their decision-making. For instance, understanding how different levels of managerial ability affect corporate environmental disclosures quality assists the board of directors in their evaluations of the performance of current top management. Furthermore, when contemplating new laws, governmental agencies and legislators can consider how managerial ability might affect the likelihood of environmentally sensitive businesses to comply with full disclosure and other reporting requirements.

Social implications

Information regarding top management’s ability to carry out socially acceptable environmental practices is very valuable for investors who are interested in socially responsible and green investing.

Originality/value

This study contributes to and links between two research streams: managerial ability in management literature and environmental financial disclosure literature. This is the first study that empirically tests whether the managerial ability is a determinant of the quality of corporate environmental financial disclosures.

Details

Sustainability Accounting, Management and Policy Journal, vol. 11 no. 6
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 4 December 2017

Pi-Hsun Tseng, Xuan-Qi Su and Hsiu-Jung Tsai

The purpose of this paper is to study the effect of managerial education levels on the wealth effect at the time of investment announcements, by testing two competitive…

Abstract

Purpose

The purpose of this paper is to study the effect of managerial education levels on the wealth effect at the time of investment announcements, by testing two competitive hypotheses: the agency theory-based overinvestment hypothesis vs the Q-theory-based organizational legitimacy hypothesis.

Design/methodology/approach

The authors construct the sample by hand-collecting the announcement dates of capital investments from major newspapers published in Taiwan from 2006 to 2014. The authors then use the event study methodology to estimate cumulative abnormal returns at the time of investments announcements to measure the wealth effect. Finally, the authors examine the wealth effect for capital-investing firms with higher managerial education vs those with lower managerial education. The authors also conduct a cross-sectional regression to test the relation between the wealth effect of capital investment and managerial education.

Findings

The empirical results indicate that the wealth effect at the time of investment announcements is less favorable for firms with better-educated managers; this negative relation is mitigated for firms with higher institutional ownership and is aggravated for family-controlled firms; and the overall findings are supported by the agency theory-based overinvestment hypothesis, suggesting that higher managerial education lead to greater managerial optimism/overconfidence, which in turn increases the likelihood of overinvestment and implies a less favorable wealth effect associated with capital investment.

Originality/value

This study contributes to the literature by proposing a new, unexplored stock market’s reaction channel through which managerial education signals adverse information about potential overinvestment behavior, even though many studies suggests that managerial education serves as an indication of knowledge/capability and improves firm performance.

Details

Managerial Finance, vol. 43 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 4 June 2010

Han Jiang and Zhan‐Ming Jin

Managerial social capital could exert valuable influences to firms' operating performance in social networks. Through the lens of structural hole theory, the relational rents of…

Abstract

Purpose

Managerial social capital could exert valuable influences to firms' operating performance in social networks. Through the lens of structural hole theory, the relational rents of managerial social capital partly results from certain controlling power endured by the network structure, thereby potentially signifying opportunistic behaviors once such relational rents are acquired at the cost of other parties' potential value loss. As such, it can be expected that using managerial social capital may inherently evoke a focal firm's high tendency of opportunism in its cooperative arrangement. This paper mainly aims at shedding lights on the opportunism implications of managerial social capital in the context of interorganizational relationships.

Design/methodology/approach

The authors collected data from 197 manufacturing joint ventures in China mainland.

Findings

Based on these sample Chinese‐foreign joint ventures, this paper found that member firms' managerial social capital tend to strengthen their opportunistic behaviors in special interfirm relationships, such that opportunistic behaviors mainly aim at taking control of the procedure of relation arrangement without significantly influencing relationship performance as well as its outcome distribution.

Originality/value

By demonstrating certain downsides of social capital, such that using social capital could induce opportunistic behaviors in interfirm relationships, it is expected that the study to contribute to both future social capital and joint venture research and business practices, especially to joint venture operations in China.

Details

Nankai Business Review International, vol. 1 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

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