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1 – 10 of over 2000This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance…
Abstract
Purpose
This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance characteristics enhance the relationship between sustainability compensation and firms’ non-financial performance and to expand the domain of the impact of sustainability on non-financial performance.
Design/methodology/approach
This analysis is based on a sample of companies listed on the Milan Italian Stock Exchange from the Financial Times Milan Stock Exchange Index over the 2016–2020 period. Regression analysis was used by using data retrieved from the Refinitiv Eikon database and the sample firms’ remuneration reports.
Findings
The findings of this paper show that embedding sustainability in executive compensation positively affects firms’ non-financial performance. The results of this paper also reveal that specific corporate governance features can improve the impact of sustainability on non-financial performance.
Research limitations/implications
This analysis is limited to Italian firms included in the Financial Times Milan Stock Exchange Index; however, the findings are highly significant.
Practical implications
The findings provide regulators with useful insights for considering the integration of sustainability goals into executive remuneration. Another implication is that policymakers should require – at least – listed firms to fulfil specific corporate governance structural requirements. Finally, the findings can provide investors and financial analysts with a greater awareness of the role played by executive remuneration in the long-term value-creation process.
Originality/value
This paper contributes to addressing the relationship among sustainability, remuneration and non-financial disclosure, drawing on the stakeholder–agency theoretical framework and focusing on Italian firms. This issue has received limited attention with controversial results in the literature.
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Gianluca Vitale, Sebastiano Cupertino and Angelo Riccaboni
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as…
Abstract
Purpose
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as its moderating effects on the relationship between sustainability and financial performance.
Design/methodology/approach
The authors performed fixed-effect regressions on a sample of 180 global listed companies, considering a period of eight years. The authors also tested the moderating effects of non-financial disclosure regulation on the relationship between sustainability and financial performance.
Findings
The authors found a positive direct impact of mandatory non-financial disclosure on Operating Return on Asset, Return on Equity and Return on Sales. The analysis also highlighted the negative moderating effects of non-financial reporting regulation on the relationship between sustainability issues and financial performance. As for the Cost of Debt, the authors found mixed results.
Research limitations/implications
This study considers a short-term perspective focusing on a limited sample composed of companies playing a key role in the global agri-food system.
Practical implications
The paper identifies which financial performance dimensions are positively or negatively affected by mandatory non-financial disclosure. Accordingly, managers can rearrange corporate activities to deal with further reporting normative requirements concurrently preserving financial performances and fostering corporate sustainability.
Social implications
This study recommends fostering mandatory non-financial disclosure to increase corporate transparency fostering the sustainability transition of the Agri-Food and Beverage industry.
Originality/value
The paper highlights global mandatory non-financial disclosure effects on financial performance considering a sector that is cross-cutting impactful on plural sustainability issues.
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Anderson Betti Frare and Chris Akroyd
The purpose of this paper is to examine the effects of performance management (PM) practices on in-bound open innovation (OI) and out-bound OI. To do this, the authors examine the…
Abstract
Purpose
The purpose of this paper is to examine the effects of performance management (PM) practices on in-bound open innovation (OI) and out-bound OI. To do this, the authors examine the organizational effectiveness as well as the non-financial and financial performance of Brazilian startups that have had recent OI relationships with larger companies.
Design/methodology/approach
Using data collected from 103 Brazilian startups, the hypotheses were tested via partial least squares–structural equation modeling (PLS-SEM). An additional analysis was performed using fuzzy-set qualitative comparative analysis (fsQCA).
Findings
The findings show that PM practices orchestrate in-bound OI and out-bound OI; however, only in-bound OI promotes organizational effectiveness in Brazilian startups. Organizational effectiveness results in good non-financial performance, which in turn improves financial performance. PM practices have an indirect effect on financial performance from the serial mediation of in-bound OI, organizational effectiveness and non-financial performance. Moreover, several combinations of conditions lead to high levels of organizational effectiveness, non-financial performance and financial performance.
Originality/value
This study provides new evidence and insights from an emerging market on the antecedents and consequences of startups' OI adoption.
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Iván Santiago Galarza, Rocío Guadalupe León-Carlosama, Alba Grisela Cevallos-Pineda and Mónica Martínez-Gómez
The purpose of this research paper is to establish the impact of process and service innovation on non-financial and financial performance in the tourism sector, as well as to…
Abstract
Purpose
The purpose of this research paper is to establish the impact of process and service innovation on non-financial and financial performance in the tourism sector, as well as to explain the mediating role of organizational learning.
Design/methodology/approach
A quantitative approach was used, based on partial least squares–structural equation modeling (PLS-SEM), Smart PLS 4.0 software. The sample consisted of 426 establishments in the tourism sector in Zone I, Ecuador. Online surveys were employed to collect data, yielding 118 responses, to assess the impact of innovation on business performance from 2020 to 2022.
Findings
Process and service innovation positively and significantly affect non-financial and financial performance, respectively. Organizational learning mediates the relationship between process innovation and disservice. The relationship between non-financial and financial performance could not be confirmed. The model explains 53.10% of non-financial performance and 26.10% of financial performance.
Originality/value
The relationship between innovation and performance in the tourism sector has been studied in several developed economies, while little has been studied in developing countries. This work contributes to an empirical discussion including a mediating variable in the innovation–performance relationship in the Latin American context.
Propósito
El propósito de esta investigación es establecer el impacto de la innovación de procesos y servicios en el desempeño no financiero y financiero en el sector turístico, así como explicar el papel mediador del aprendizaje organizacional.
Diseño/metodología/enfoque
Se utilizó un enfoque cuantitativo, basado en el software PLS SE M, Smart PLS 4.0. La muestra estuvo constituida por 426 establecimientos del sector turístico de la Zona I, Ecuador. Se aplicaron encuestas en línea para recopilar datos, que arrojaron 118 respuestas, para evaluar el impacto de la innovación en el desempeño empresarial de 2020 a 2022.
Hallazgos
La innovación de proceso y de servicio afecta positiva y significativa al desempeño no financiero y financiero, respectivamente. El aprendizaje organizacional media la relación entre innovación de proceso y des servicio. No se pudo confirmar la relación entre desempeño no financiero y financiero. El modelo explica el 53.10% del desempeño no financiero y el 26.10 del desempeño financiero.
Originalidad/valor
La relación entre innovación y rendimiento en el sector turístico se ha estudiado en varias economías desarrolladas, mientras que en los países en desarrollo se ha estudiado poco. Este trabajo contribuye a una discusión empírica incluyendo una variable mediadora en la relación innovación-desempeño en contexto latinoamericano.
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Dorsaf Chaher and Lassaad Lakhal
This article aims to examine the direct and indirect effect among total quality management (TQM), corporate social responsibility (CSR) and financial and non-financial performance.
Abstract
Purpose
This article aims to examine the direct and indirect effect among total quality management (TQM), corporate social responsibility (CSR) and financial and non-financial performance.
Design/methodology/approach
The empirical data were collected from a survey of 120 Tunisian certified firms using questionnaires. Structural equation path modeling PLS-SEM) was performed to test the research hypotheses.
Findings
The results indicate that TQM has no direct effect on financial performance (FP), while they positively impact non-financial performance (NFP) and CSR. The study also shows that CSR positively and significantly influences FP and NFP. In addition, it reveals the positive impact of FP on NFP. Furthermore, the results reveal an indirect effect of TQM on financial and non-financial performance through CSR.
Originality/value
The empirical study bridges the gap in the literature by analyzing the direct and indirect effect between TQM, CSR and performance in a single model. It also highlights the important role of CSR between TQM and financial and non-financial performance in the context of emerging countries.
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Maria Aluchna, Maria Roszkowska-Menkes and Bogumił Kamiński
Non-financial reporting (NFR) is viewed as a major step towards organisational transparency and accountability. While the number of non-financial reports published every year has…
Abstract
Purpose
Non-financial reporting (NFR) is viewed as a major step towards organisational transparency and accountability. While the number of non-financial reports published every year has been growing exponentially over the last two decades, their quality and effectiveness in managing environmental, social and governance (ESG) performance have been questioned. Addressing these concerns, several jurisdictions, including EU Member States, introduced mandatory NFR regimes. However, the evidence on whether such regulation truly translates into enhanced ESG performance remains scarce. This paper aims to fill this gap in the literature by investigating the impact of the EU’s Directive 2014/95/EU (Non-financial Reporting Directive, NFRD) on the ESG scores of Polish companies.
Design/methodology/approach
Drawing upon institutional and strategic perspectives on legitimacy theory, the authors test the relationship between the introduction of the NFRD and the ESG scores derived from the Refinitiv database, using a sample of all those companies listed on the Warsaw Stock Exchange whose disclosure allows for measuring ESG performance (yielding 171 firm-year observations from 43 companies).
Findings
This study’s findings show an improvement of ESG performance following the introduction of the NFRD. The difference-in-differences approach indicates that the improvement is larger for companies that are subject to the legislation when it comes to overall ESG performance, particularly for environmental and social performance. Nonetheless, to the best of the authors’ knowledge, no significant effect is found for performance in the governance dimension.
Originality/value
This study investigates the role of transnational mandatory reporting regulation in the first years of its enactment. The evidence offers insights into the effects of disclosure legislation in the context of an underdeveloped institutional environment.
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Scholars have underscored the importance of organizational authenticity, but it is unclear how it influences the links among market strategy, and nonmarket strategy (NMS) and firm…
Abstract
Purpose
Scholars have underscored the importance of organizational authenticity, but it is unclear how it influences the links among market strategy, and nonmarket strategy (NMS) and firm performance. This study addresses this gap in the literature.
Design/methodology/approach
A survey of 294 managers in firms based in the United States investigates configurations among competitive strategy (e.g. cost leadership or differentiation), political and social nonmarket strategy (NMS), authenticity, and firm performance.
Findings
Cost leaders tend to engage in political nonmarket strategy (PNMS), but the interaction does not necessarily improve firm performance. Differentiators are more likely to pursue social nonmarket strategy (SNMS) and perform better, but neither market-nonmarket strategy configuration is inherently optimal.
Research limitations/implications
The results support market-nonmarket strategy configurations but do not prescribe optimal combinations. However, the sample is cross-sector and employs self-reports for firm performance.
Practical implications
Political and social authenticity can enhance firm performance, but nonmarket activity can compromise a firm’s ability to be politically and socially authentic. Authenticity can drive performance, but a firm’s nonmarket activity can compromise its ability to be politically and socially authentic. Firms should view a prospective loss in authenticity as a potential cost of nonmarket activity.
Originality/value
This paper investigates how a firm’s emphasis on market (competitive) strategies, political and social nonmarket strategies, and political and social authenticity impact financial and non-financial performance. It also tests the veracity of two market-nonmarket configurations, cost leadership with political NMS and differentiation with social NMS.
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Daniel Amos and Naana Amakie Boakye-Agyeman
This study aims to establish the statistical relationships between corporate real estate added value indicators of cost reduction, increasing productivity, risk reduction and…
Abstract
Purpose
This study aims to establish the statistical relationships between corporate real estate added value indicators of cost reduction, increasing productivity, risk reduction and flexibility and organizational financial and non-financial performance.
Design/methodology/approach
The study adopted a mixed methods approach which encompasses initial expert interviews and subsequent questionnaire surveys. Partial least squares structural equation modelling was applied to test the proposed hypotheses of the study.
Findings
The results highlight the significant influence of three added value indicators on organizational performance while highlighting the need for strategic corporate real estate risk management to enhance performance.
Practical implications
The results of the study are useful to identify relevant added value indicators that can improve organizational performance as well as potential added value indicators that deserve attention for performance improvement. Moreover, it presents knowledge on corporate performance indicators which is sparsely explored in corporate real estate management literature.
Originality/value
This study makes a novel contribution to corporate real estate management literature by presenting a parsimonious model to alert corporate real estate managers on essential added value parameters towards organizational performance. The model set the theoretical debates to exploit additional added value dimensions and organizational performance.
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Xinbo Sun and Magaji Abdullahi Usman
Building on the theory of resource-based view (RBV), this paper is determined to explore the key drivers that drive platform ecosystem adoption by small businesses and mediation…
Abstract
Purpose
Building on the theory of resource-based view (RBV), this paper is determined to explore the key drivers that drive platform ecosystem adoption by small businesses and mediation mechanisms that facilitate the translation of these drivers into improved firm financial and nonfinancial performance.
Design/methodology/approach
In this study, structural equation modeling is used to analyze the data. A survey questionnaire was taken from 430 small businesses operating their businesses on various digital platform ecosystems in China to investigate the links between parameters by testing hypotheses. Digital startups operating their businesses on popular Chinese platform ecosystems, including Alibaba, Taobao, Jingdong, Maituan and HelloChe, were chosen.
Findings
The finding deciphers a nuanced interplay of the adoption drivers, with innovation capability emerging as a mediation mechanism translating these drivers into improved financial and non-financial performance.
Research limitations/implications
The acknowledgment of potential drawbacks, such as the focus on specific drivers of platform ecosystem adoption, highlights the need for future research to explore additional factors that may influence adoption decisions. By examining institutional factors, market conditions or external shocks like the COVID-19 pandemic, researchers can provide a more comprehensive understanding of the complexities surrounding platform ecosystem dynamics and offer insights into adaptive strategies for businesses facing uncertainty.
Practical implications
The outcome benefits policymakers and ecosystem designers by creating and overseeing platform ecosystems that support the highlighted drivers. This study further serves as a roadmap for both platform owners and prospective small enterprises as they map their path toward the digital frontier.
Social implications
The findings from the research indicate that small enterprises that embrace platform ecosystems can experience improved financial and non-financial performance, which in turn promotes economic development and the generation of jobs. By utilizing innovative strategies and maximizing their strategic advantages, these enterprises can not only prosper but also make significant contributions to community development and help alleviate joblessness. This highlights the significance of assisting with the incorporation of digital technology in small businesses to achieve wider societal advantages.
Originality/value
Research originality lies in bridging the gap between strategic inputs and measurable outcomes, stressing the vital function of a firm’s innovation in turning ecosystem-driven opportunities into enhanced performance. This means the pivotal role of this study lies in exploring platform ecosystem adoption drivers based on the theory of RBV and the way innovation capability of platform ecosystems facilitates the translation of these drivers into improved financial and nonfinancial performance.
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Fazal Haleem, Muhammad Ilyas and Muhammad Jehangir
The study explores the pivotal role of green information technology and sustainable business processes and their impact on organizational value in an underdeveloped economy. It…
Abstract
Purpose
The study explores the pivotal role of green information technology and sustainable business processes and their impact on organizational value in an underdeveloped economy. It aims to develop a comprehensive model for driving organizational value through sustainable initiatives.
Design/methodology/approach
Data was gathered through 474 survey instruments (41% response rate) from top managers of IT firms using a convenience sampling technique. After ensuring reliability and validity, hypotheses were tested using structural equation modeling. Data analysis utilized SPSS and AMOS 21.0.
Findings
The study revealed a significant positive impact of green information technology initiatives on financial and non-financial aspects, enhancing overall organizational value. Similarly, green information technology significantly influences sustainable business processes. Furthermore, sustainable business processes, encompassing economic, social, and environmental dimensions, enhance organizational value, including financial and non-financial performance. Consequently, a multifaceted sustainable model has been developed to optimize organizational value, providing new insights.
Practical implications
The findings imply that firms should focus on acquiring new green technologies and adopting sustainable processes, leading to enhanced profits and non-financial gains. This study aids managers in strategy development and implementation and guides policymakers in formulating context-specific policies. It enriches the existing literature on green IT, business process management, and organizational value.
Originality/value
The study rigorously tested a framework for fostering organizational value through green information technology and sustainable business processes in information technology firms. The proposed framework was validated using structural equation modeling.
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