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Article
Publication date: 5 August 2024

Sarah (Sa’arah) Alhouti, Kristina (Kris) Lindsey Hall and Thomas L. Baker

As a company’s corporate social responsibility (CSR) image can protect from the backlash of a service failure, it is important to remind customers of the company’s CSR commitment…

Abstract

Purpose

As a company’s corporate social responsibility (CSR) image can protect from the backlash of a service failure, it is important to remind customers of the company’s CSR commitment when a service failure occurs. One novel mechanism for doing so is through a prosocial service recovery. However, explorations of such service recovery strategies are relatively unknown. Thus, this paper aims to examine how recoveries including prosocial elements compare to those only utilizing monetary compensation strategies and to explore boundary conditions for such effects.

Design/methodology/approach

This research utilizes an experimental design approach across three studies. Participants were recruited from Amazon’s Mechanical Turk.

Findings

This research demonstrates that a recovery including prosocial (vs only monetary) elements can positively impact purchase intent through the firms’ CSR perceptions. The authors show that the benefits of prosocial compensation are contingent on the motivation for visiting a company (e.g. hedonic vs utilitarian) as well as the degree to which the company is perceived as luxurious.

Originality/value

The series of studies provides important theoretical contributions to services marketers by advancing the understanding of novel recovery strategies and demonstrating when companies should initiate such strategies. Implications of the findings and directions for future research are explored.

Details

Journal of Services Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 17 June 2024

Hasan Emin Gurler and Ramazan Erturgut

Although trade volumes in e-retailing have increased significantly in recent years, logistics service failures are inevitable, especially at the delivery stage. Therefore, it is…

Abstract

Purpose

Although trade volumes in e-retailing have increased significantly in recent years, logistics service failures are inevitable, especially at the delivery stage. Therefore, it is essential to provide customers with effective recovery strategies to increase their satisfaction and repurchase intentions. There is a lack of empirical evidence on whether the response time or the discount offered in compensation is more crucial for customers. Therefore, this study aims to determine whether the response time or the discount offered for high and low criticality failures has a greater impact on customer satisfaction levels and repurchase intentions for female and male customers.

Design/methodology/approach

A scenario-based experimental design method has been adopted to collect data, and 697 participants aged 18 and 58 years have been reached. The research utilized a between-subjects design, incorporating three factors: gender (female vs male), criticality (high vs low) and compensation (7 days: 10% discount, 10 days: 20% discount and 14 days: 30% discount). Six scenarios depicting the failure of an online retailer were created, and factorial univariate ANOVA was conducted to test the hypotheses.

Findings

The study's results show that in terms of customer satisfaction, female customers attach more importance to the response time in the case of high criticality and the amount of discount offered in the case of low criticality. On the other hand, male customers give more importance to the response time in terms of customer satisfaction when they experience a high or low criticality failure. In the case of low criticality, response time is more important for male customers to increase their repurchase intentions, while the amount of the discount is more important for female customers.

Originality/value

The study demonstrates the relative importance of the response time and discount amount according to the criticality level of failures and to guide business managers in terms of the recovery strategies they will implement. It focuses on gender differences and determine whether the response time or discount amount is more important for male and female customers in high or low-criticality situations.

Details

Marketing Intelligence & Planning, vol. 42 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 7 May 2024

Min Bai, Dong Zhang and Wenzhuo Zhao

Excessive borrowing significantly contributes to pushing businesses towards default and their transition into zombie enterprises. Despite government efforts to implement…

Abstract

Purpose

Excessive borrowing significantly contributes to pushing businesses towards default and their transition into zombie enterprises. Despite government efforts to implement deleveraging policies and guide bank credit flows, it’s essential to delve into the internal dynamics that steer the borrowing behavior of these zombie enterprises at a micro level. To gain a comprehensive understanding of the issue, this study focuses on examining the incentives that drive corporate executives of zombie enterprises to consistently engage in large-scale borrowing from banks.

Design/methodology/approach

In this study, panel data analysis is utilized, incorporating firm-, industry- and year-fixed effects. Drawing from data pertaining to listed companies in China spanning from 2007 to 2020, we employ a one-by-one identification method to pinpoint zombie enterprises. Ultimately, a total of 2,533 samples of zombie enterprises were obtained.

Findings

The results indicate that as bank loans to zombie enterprises increase, executive monetary compensation decreases, while on-the-job consumption by executives increases, and they are less likely to be forced into rotation. Mechanism testing reveals that corporate performance partially mediates the relationship between bank loans and executive monetary compensation, but this mediation is ineffective for on-the-job consumption and job rotation. Further investigation suggests that the property rights nature of central enterprises and modified audit opinions can exacerbate the adverse impact of bank loans on the monetary compensation of zombie corporate executives, without significantly affecting on-the-job consumption or job rotation. Conversely, executive power does not enhance the positive effects of bank loans on monetary compensation or on-the-job consumption, but it diminishes the negative impact of bank loans on the forced rotation of zombie executives.

Research limitations/implications

These results indicate that while bank loans may have a negative impact on corporate value, they function as safeguards for the positions and interests of executives. As a result, bank loans serve as incentives for executives of zombie enterprises.

Originality/value

This study holds theoretical significance as it explores the motivations behind non-performing loans in high-borrowing enterprises, sheds light on corporate governance challenges encountered by zombie enterprises and provides policy insights aimed at addressing the underlying causes of persistent non-performing loans in high-borrowing enterprises, including zombie enterprises.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 3 June 2024

Isaac Ewusie, Oliver Tannor, Albert Agbeko Ahiadu and Olivia Kwakyewaa Ntim

This paper aims to explore the psychological, emotional and equity implications of compulsory acquisition, evaluate the adequacy of compensation in mitigating those consequences…

Abstract

Purpose

This paper aims to explore the psychological, emotional and equity implications of compulsory acquisition, evaluate the adequacy of compensation in mitigating those consequences and assess the sustainability of cash compensation for future generations.

Design/methodology/approach

A case study approach was operationalised to investigate the experiences of 40 project-affected persons (PAPs) four years after a compulsory acquisition project in Ghana’s New Akrade-Mpakadan region for the construction of a railway line. These perspectives were analysed through descriptive statistics and thematic analyses using the NVivo software. Figures and a holistic framework were adopted to report the identified issues.

Findings

Overall, only 25% of PAPs received formal communication prior to the acquisition, and only 10.3% have been fully compensated four years later. Despite the acquiring body initiating the marking of properties and compensation assessment in 2019, no payments were made until 2021. This induced emotional responses of distress, loss, uncertainty, stress and sadness, which was further exacerbated by feelings of hopelessness because there was no platform to voice concerns or pursue arbitration. Although PAPs were only offered compensation in the form of single monetary payments, a third would have preferred re-settlement.

Research limitations/implications

By exploring the emotional and psychological effects of compulsory land acquisition, the study adds a new dimension to understanding its consequences. This may spark more interest, debate and discourse amongst researchers and policymakers and lead to the creation or enhancement of existing policy and legal measures to address the needs of PAPs in compulsory acquisition projects in developing countries.

Originality/value

The financial consequences of eminent domain are well documented, but this study explored the psychological, emotional and equity implications of the practice under conditions of weak regulatory frameworks. The adequacy of single lump-sum compensations was also explored to highlight preferred alternatives to ensure fairness for generations unborn.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 November 2023

Embial Asmamaw Aschale and Habtamu Bishaw Asres

The purpose of this paper is to examine expropriation, valuation, compensation and rehabilitation practices and their impacts on expropriated households.

Abstract

Purpose

The purpose of this paper is to examine expropriation, valuation, compensation and rehabilitation practices and their impacts on expropriated households.

Design/methodology/approach

This study employed a mixed research approach. The target populations of the study were expropriated households in Debre Markos City from 2019 to 2022. The study uses purposive and systematic random sampling techniques. The data were analyzed using descriptive statistics, narration and thematic clustering.

Findings

The findings of this study revealed that the expropriation process was not participatory and the right holders were not treated as what is expected. It is further found that economic losses, moral damage and social disturbance payments were not considered in the compensation package. The displacement compensation given was also inadequate and sometimes delayed and the time value of money was not taken into account for delayed payments. This creates social and economic problems. The rehabilitation and resettlement program was inadequate and ineffective. The expropriation, valuation, compensation and rehabilitation practice in general lack transparency and accountability.

Practical implications

To ensure efficient and effective expropriation, valuation and compensation, there should be a well-organized government system that provides an accurate valuation on the one hand and restores the livelihood of the displaced on the other.

Originality/value

This paper is the first on expropriation, valuation, compensation and rehabilitation within the framework of transparency, accountability, effective rehabilitation and resettlement and institutional arrangements to ensure the sustainable livelihoods of affected households.

Details

Property Management, vol. 42 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 25 March 2024

Nemanja Berber and Dimitrije Gašić

The main goal of this study is to determine the role of employee commitment in the relations between the compensation system and turnover intentions of employees in the Republic…

Abstract

Purpose

The main goal of this study is to determine the role of employee commitment in the relations between the compensation system and turnover intentions of employees in the Republic of Serbia, as well as to investigate whether there is a mediating effect of employee commitment in this relation.

Design/methodology/approach

The primary methodology implemented in the research was data gathering, obtaining theoretical research works on the proposed relations and empirical studies based on the PLS-SEM, analysed by IBM SPSS Statistics and SmartPLS data processing software. The data for the analysis was obtained from a total sample of 764 employees, collected in the Republic of Serbia via an online questionnaire.

Findings

The results indicated a positive statistically significant relationship between the formative construct (compensation system) and reflective construct (commitment), as well as a negative statistically significant relationship between the compensation system and reflective construct (turnover intentions). Employee commitment partially mediates the relationship between the compensation system and turnover intentions of employees.

Originality/value

The study was conducted in Serbia and is thus rooted in the specific national context which is characterized by high power distance and high uncertainty avoidance and more collectivistic society with feminine values more expressed. Most of the previous investigations related to the mentioned constructs were performed in companies from more developed countries, including Western Europe and the United States of America, whereas there has been no such research conducted in Serbia to date. The results portrayed a mismatch between the expected relations regarding the attitudes of employees to the rewards and the proposed national context. Modern companies in Serbia need to follow a modern reward mechanism to build stronger commitment and decrease turnover intentions. Moreover, in most earlier research works, compensation was examined in terms of satisfaction with rewards, while this study was based on questions related to perceptions of employees toward HR compensation practices (“The organization offers me”-type questions), not related to their satisfaction. Further, in the majority of previous research works, the compensation system was examined as a variable in combination with other HR processes (staffing, training and development, career development, employee relations, HR planning, communication, etc.), as a HPWP, while in this case the authors used only the practice of compensation (reward elements and employee performance evaluation) to investigate relations with commitment and turnover intentions.

Details

Employee Relations: The International Journal, vol. 46 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 17 April 2024

Sara Persson

Political Corporate Social Responsibility (CSR), based on ideas about deliberative democracy, have been criticised for increasing corporate power and democratic deficits. Yet…

Abstract

Purpose

Political Corporate Social Responsibility (CSR), based on ideas about deliberative democracy, have been criticised for increasing corporate power and democratic deficits. Yet, deliberative ideals are flourishing in the corporate world in the form of dialogues with a broad set of stakeholders and engagement in wider societal issues. Extractive industry areas, with extensive corporate interventions in weak regulatory environments, are particularly vulnerable to asymmetrical power relations when businesses engage with society. This paper aims to illustrate in what way deliberative CSR practices in such contexts risk enhancing corporate power at the expense of community interests.

Design/methodology/approach

This paper is based on a retrospective qualitative study of a Canadian oil company, operating in an Albanian oilfield between 2009 and 2016. Through a study of three different deliberative CSR practices – market-based land acquisition, a grievance redress mechanism and dialogue groups – it highlights how these practices in various ways enforced corporate interests and prevented further community mobilisation.

Findings

By applying Laclau and Mouffe’s theory of hegemony, the analysis highlights how deliberative CSR activities isolated and silenced community demands, moved some community members into the corporate alliance and prevented alternative visions of the area to be articulated. In particular, the close connection between deliberative practices and monetary compensation flows is underlined in this dynamic.

Originality/value

The paper contributes to critical scholarship on political CSR by highlighting in what way deliberative practices, linked to monetary compensation schemes, enforce corporate hegemony by moving community members over to the corporate alliance.

Details

Critical Perspectives on International Business, vol. 20 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 20 August 2024

Pramod Iyer, Atanas Nik Nikolov, Geoffrey T. Stewart, Rajesh V. Srivastava and Thomas Tang

To most people, money is a motivator, which is robustly true for salespeople. A high love of money attitude predicts university students’ poor academic performance in a business…

Abstract

Purpose

To most people, money is a motivator, which is robustly true for salespeople. A high love of money attitude predicts university students’ poor academic performance in a business course and cheating in laboratory experiments and multiple panel studies, but money (income) itself does not predict dishonesty. Extrinsic reward undermines intrinsic motivation. Very little research has incorporated the grit construct in the sales literature and explored the relationship between grit and the love of money. Further, a growth mindset and a fixed mindset may also impact salespeople’s job performance. This study aims to explore a brand-new theoretical structural equation model (SEM) and investigate the relationships between individual characteristics (growth and fixed mindsets and grit orientation) and job performance directly and indirectly through a mediator – salespeople’s love of money attitude.

Design/methodology/approach

This study uses Qualtrics and collects data from 330 business-to-business (B2B) salespeople across several industries in the USA. This study uses a formative SEM model to test this study’s hypotheses.

Findings

First, there are significant correlations among grit, a growth mindset and a fixed mindset, revealing no construct duplication or redundancy. Second, both a growth mindset and grit indirectly enhance job performance through the love of money attitude – a mediator, offering a brand-new discovery. Third, counter-intuitively, a growth mindset and grit do not directly improve job performance. Fourth, grit is significantly and negatively related to the love of money attitude, adding a new twist to this study’s theoretical model. Fifth, a fixed mindset undermines job performance directly but is unrelated to the love of money. Overall, B2B salespeople’s love of money attitude (employee demand) undermines sales personnel’s self-reported job performance (organization demand) in the organization and employee’s supply and demand exchange relationship.

Originality/value

The findings reveal that a growth mindset, a fixed mindset and grit contribute differently to sales personnel’s love of money attitude and job performance in this study’s theoretical model. The love of money serves as a mediator. A commonly accepted belief is that money is a motivator. Money (income) itself and the love of money attitude are two separate constructs. This study’s novel discoveries provide the essential missing monetary-aspirations-to-job-performance link in the literature – ardent monetary aspiration undermines self-reported job performance. This study offers inspiration to help decision-makers make happy, healthy and wealthy decisions and improve performance.

Details

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

Keywords

Article
Publication date: 27 November 2023

Marcellin Makpotche, Kais Bouslah and Bouchra B. M’Zali

The intensity of carbon emissions has led to the serious problem of global warming, and the consequences in terms of climatic disasters are gaining increasing attention worldwide…

Abstract

Purpose

The intensity of carbon emissions has led to the serious problem of global warming, and the consequences in terms of climatic disasters are gaining increasing attention worldwide. As the energy sector is responsible for most global emissions, developing clean energy is crucial to combat climate change. This study aims to examine the relationship between corporate governance and renewable energy (RE) consumption and explore the interaction between RE production and RE use.

Design/methodology/approach

The study adopts an econometric framework of a panel model, followed by the robustness check using alternative methods, including logit regressions. The bivariate probit model is used to analyze the interaction between the decision to use and the decision to produce RE. The analysis is based on a sample of 3,896 firms covering 45 countries worldwide.

Findings

The results reveal that appropriate governance mechanisms positively impact RE consumption. These include the existence of a sustainability committee; environmental, social and governance-based compensation policy; financial performance-based compensation; sustainability external audit; transparency; board gender diversity; and board independence. Firms with appropriate governance mechanisms are more likely to produce and use RE than others. Finally, while RE use positively impacts firm value and environmental performance, the authors find no significant effect on current profitability.

Originality/value

This study goes beyond previous research by exploring the impact of multiple governance mechanisms. To the best of the authors’ knowledge, this is also the first study examining the relationship between RE use and firm value. Overall, the findings suggest that RE transition requires, first of all, establishing appropriate governance mechanisms within companies.

Details

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 18 July 2024

Bénédicte Gnangnon, Kuang Li, Dena Fatemeh Rezaei, Mishonne Maryann Marks, Chrysanthos Dellarocas, Sarah Chobot Hokanson and Sasha B. Goldman

This study aims to present the evaluation of a competency-based online professional development training program, PhD Progression, tied to a digital badge system, created to…

Abstract

Purpose

This study aims to present the evaluation of a competency-based online professional development training program, PhD Progression, tied to a digital badge system, created to support PhD students across fields.

Design/methodology/approach

This study took place at Boston University, a large, nonprofit, Carnegie Classified R1 research-intensive institution located in the northeastern region of the USA. Through internal campus collaborations, the authors developed a PhD core capacities framework. Building from this framework, the authors designed the first learning level of the program and ran a pilot study with PhD students from various fields and at different stages of their PhD. Using surveys and focus groups, the authors collected both quantitative and qualitative data to evaluate this program.

Findings

The quantitative and qualitative data show that the majority of the PhD student participants found the contents of the competency-based training program useful, appropriate for building skills and knowledge and therefore relevant for both their degree progress and their future job. Gaining digital badges significantly increased their motivation to complete training modules.

Practical implications

This type of resource is scalable to other institutions that wish to provide self-paced professional development support to their PhD students while rewarding them for investing time in building professional skills and enabling them to showcase these skills to potential employers.

Originality/value

This study demonstrates, for the first time, that tying a digital badging system to a competency-based professional development program significantly motivates PhD students to set professional development goals and invest time in building skills.

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