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Open Access
Article
Publication date: 8 February 2024

Joseph F. Hair, Pratyush N. Sharma, Marko Sarstedt, Christian M. Ringle and Benjamin D. Liengaard

The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis

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Abstract

Purpose

The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis differentiated indicator weights produced by partial least squares structural equation modeling (PLS-SEM).

Design/methodology/approach

The authors rely on prior literature as well as empirical illustrations and a simulation study to assess the efficacy of equal weights estimation and the CEI.

Findings

The results show that the CEI lacks discriminatory power, and its use can lead to major differences in structural model estimates, conceals measurement model issues and almost always leads to inferior out-of-sample predictive accuracy compared to differentiated weights produced by PLS-SEM.

Research limitations/implications

In light of its manifold conceptual and empirical limitations, the authors advise against the use of the CEI. Its adoption and the routine use of equal weights estimation could adversely affect the validity of measurement and structural model results and understate structural model predictive accuracy. Although this study shows that the CEI is an unsuitable metric to decide between equal weights and differentiated weights, it does not propose another means for such a comparison.

Practical implications

The results suggest that researchers and practitioners should prefer differentiated indicator weights such as those produced by PLS-SEM over equal weights.

Originality/value

To the best of the authors’ knowledge, this study is the first to provide a comprehensive assessment of the CEI’s usefulness. The results provide guidance for researchers considering using equal indicator weights instead of PLS-SEM-based weighted indicators.

Details

European Journal of Marketing, vol. 58 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 11 January 2024

Julia Anamaria Sisu, Andrei Constantin Tirnovanu, Cristina-Claudia Patriche, Marian Nastase and George Cristian Schin

This study explores the enablers of students “entrepreneurial intentions by identifying the factors that raise students” interest in embracing an entrepreneurial career.

Abstract

Purpose

This study explores the enablers of students “entrepreneurial intentions by identifying the factors that raise students” interest in embracing an entrepreneurial career.

Design/methodology/approach

Entrepreneurship education is increasingly attracting attention as a means of fostering entrepreneurial activity and creating a culture of innovation. Developing students' entrepreneurial intentions is critical to promote entrepreneurship. This research is built on a mixed method approach of partial least squares structural equation modelling and fuzzy-set qualitative comparative analysis.

Findings

The factors that influence students ‘entrepreneurial intentions are identified: business incubation programmes, non-reimbursable grants for entrepreneurial students, networking events to promote entrepreneurship, mentoring services, innovation labs for business idea validation and entrepreneurship courses. This knowledge can help develop effective entrepreneurship education programmes. The study also provides actionable insights for educational institutions and policymakers. It underscores the need for innovative educational platforms such as entrepreneurial bootcamps. It also highlights the value of advanced learning environments such as decision theatres to foster a culture of entrepreneurship and innovation.

Originality/value

The study contributes to the body of knowledge on entrepreneurship education. It highlights the need for a multidisciplinary approach to understand the factors that shape students’ entrepreneurial intentions.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 19 July 2023

Shy Lih Wong

This study aims to explore how females on committees (FOC) and committee ethnic diversity (CED) impact environmental, social and governance performance (ESGP).

Abstract

Purpose

This study aims to explore how females on committees (FOC) and committee ethnic diversity (CED) impact environmental, social and governance performance (ESGP).

Design/methodology/approach

This study examines 126 listed firms under the coverage of FTSE ESG Ratings in Bursa Malaysia between 2017 and 2019. This study applies partial least squares structural equation modeling (PLS-SEM) to examine the hypotheses. While the risk of common method variance is minimised using multiple data sources for the analysis, instrumental variable-free approach, i.e. Gaussian copula method which is implemented in SmartPLS 4.0 has been used to address the potential endogeneity of the model.

Findings

Empirical evidence demonstrates significant positive direct relationships between FOC and ESGP, as well as CED and ESGP. The argument of resource dependence theory and positive empirical results on the two direct relationships hold firm despite several committees being aggregated as one construct with the aim of providing different insights into the literature.

Practical implications

This study provides implications for firm leadership to consider reviewing the composition of committees by increasing female representation while striking a balance in the appointment of committee members of different ethnicities to enhance firm ESGP.

Originality/value

To the best of the author’s knowledge, this study adopts a holistic approach by capturing, for the first time, the female representation of audit, nomination, remuneration and risk management committees. These dimensions are further developed into a single quantifiable variable, presented as FOC. Similarly, the ethnic diversity of the respective committees is aggregated and developed into a single quantifiable construct: the CED. Unlike most existing studies that commonly use econometric software, the application of PLS-SEM in this study contributes to the limited body of corporate governance and ESG studies that use PLS-SEM.

Article
Publication date: 5 April 2024

Priyanka Vern, Anupama Panghal, Rahul S. Mor, Vikas Kumar and Dilshad Sarwar

Blockchain technology (BCT) has emerged as a powerful tool for enhancing transparency and trust. However, the relationship between the benefits of BCT and agri-food supply chain…

Abstract

Purpose

Blockchain technology (BCT) has emerged as a powerful tool for enhancing transparency and trust. However, the relationship between the benefits of BCT and agri-food supply chain performance (AFSCperf) remains underexplored. Therefore, the current study investigates the influence of BCT on AFSCperf and sustainability issues.

Design/methodology/approach

Through a comprehensive literature review, various benefits of BCT are identified. Subsequently, a research framework is proposed based on data collected from questionnaire surveys and personal visits to professionals in the agri-food industry. The proposed framework is validated using partial least square structural equation modelling (PLS-SEM).

Findings

The findings reveal that BCT positively impacts AFSCperf by improving traceability, transparency, food safety and quality, immutability and trust. Additionally, BCT adoption enhances stakeholder collaboration, provides a decentralised network, improves data accessibility and yields a better return on investment, resulting in the overall improvement in AFSCperf and socio-economic sustainability.

Practical implications

This study offers valuable practical insights for practitioners and academicians, establishing empirical links between the benefits of BCT and AFSCperf and providing a deeper understanding of BCT adoption.

Originality/value

Stakeholders, managers, policymakers and technology providers can leverage these findings to optimise the benefits of BCT in enhancing AFSCperf. Moreover, it utilises rigorous theoretical and empirical approaches, drawing on a multidisciplinary perspective encompassing food operations and supply chain literature, public policy, information technology, strategy, organisational theory and sustainability.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 2 April 2024

Lin Wang, Meng Zhao, Jiangli Zhang and Yufang Wang

Compensatory consumption focuses on the psychological value of products. Special agricultural products have symbolic and social functions that effectively meet psychological needs…

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Abstract

Purpose

Compensatory consumption focuses on the psychological value of products. Special agricultural products have symbolic and social functions that effectively meet psychological needs and stimulate compensatory consumption behavior. The social commerce context not only enriches consumer experience but also influences consumer purchase decisions. This study constructs a model based on the elaboration likelihood model (ELM) and the stimulus-organism-response (SOR) theory to explore the mechanism of compensatory consumption behavior of special agricultural products in a social commerce context.

Design/methodology/approach

This study uses a two-stage method of partial least squares structural equation model (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) to analyze 523 valid samples collected through random sampling. PLS-SEM was used to examine the relationships and effects between the variables; fsQCA was used to conduct a cohort analysis between the variables to further reveal the complexity and diversity of compensatory consumption behaviors.

Findings

PLS-SEM indicates that product attributes and social affordances influence consumers’ triggering of compensatory consumption behavior for control and belongingness needs. fsQCA shows that there are three different modes, and the satisfaction of belongingness or control needs is a necessary condition for triggering compensatory consumption behavior.

Originality/value

There is limited research on compensatory consumption behavior specifically focused on special agricultural products. This study explores the influencing factors and mechanisms of compensatory consumption behavior related to special agricultural products. The occurrence of compensatory consumption behavior is not only influenced by product attributes but also by the social commerce environment. In marketing strategies, it is important to not only consider product characteristics but also pay attention to consumers’ social and psychological needs.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 20 February 2024

Tin Horvatinović, Mihaela Mikic and Marina Dabić

To support the advancement of an underrepresented category of research in the field of entrepreneurial teams, this study proposes and tests a novel empirical model that connects…

Abstract

Purpose

To support the advancement of an underrepresented category of research in the field of entrepreneurial teams, this study proposes and tests a novel empirical model that connects two team emergent states, namely team entrepreneurial passion (TEP) and transactive memory systems (TMSs), and their influence on team performance.

Design/methodology/approach

The data were gathered using an online questionnaire distributed to undergraduate students who had formed entrepreneurial teams as part of a course assignment. Two methods were executed on the obtained data, namely partial least-square structural equation modelling (PLS-SEM) and necessary condition analysis (NCA).

Findings

The results uphold the hypothesised mediation role of TMSs between TEP and team performance. Of the two direct relations in the model, only the necessary conditions were present for the effect of TEP on TMSs.

Research limitations/implications

The issue of the small sample size, a common feature in entrepreneurial team research, as discussed in the methodical section of the paper, is sidestepped with the use of PLS-SEM tools. Nonetheless, a larger sample size could have increased confidence in the results' validity. In addition, a longitudinal approach to data collection and analysis could have been used to augment that confidence further.

Practical implications

Three practical implications stem from the empirical findings. First, it lends support for implementing teaching approaches and task designs that are envisaged to improve team functioning in university classrooms. Making a business plan boosts students' desire to exploit the received knowledge and find a venture, so the teaching effort in entrepreneurship courses can have real-world consequences.

Originality/value

By testing the mediation model, new insights are made into the associations between team emerging states and, subsequently, team performance. In addition, this study responds to recent calls in the literature to incorporate NCA in an entrepreneurial setting.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Book part
Publication date: 26 March 2024

Vikas Sharma, Munish Gupta and Kshitiz Jangir

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between…

Abstract

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between savers and borrowers, these institutions operate in a dynamic and complex environment characterised by various risk factors that can significantly impact their profitability and overall stability. Understanding the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability is crucial for effective risk management strategies and the development of appropriate regulatory frameworks.

Purpose: Commercial banks play a critical role in the global economy by facilitating economic growth and providing financial services. This study examines the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability in commercial banking.

Methodology: The sample consists of licenced scheduled commercial banks on the Bombay Stock Exchange (BSE) from 2015 to 2022. Using the Smart PLS-SEM 3.0 path analysis technique, the study evaluates the combined influence of these risk factors on profitability and provides evidence-based recommendations for risk management strategies.

Findings: The findings can assist banks in enhancing their risk management practices, and regulators in developing appropriate regulatory frameworks. By understanding the key risk factors and their impact on profitability, banks and regulators can mitigate risks, enhance transparency, and promote stability within the banking sector.

Significance/value: The value of this study lies in its focus on the interconnectedness of risk factors, profitability, and the potential implications for decision-making, risk management strategies, regulatory frameworks, and the overall stability of the commercial banking sector.

Details

The Framework for Resilient Industry: A Holistic Approach for Developing Economies
Type: Book
ISBN: 978-1-83753-735-8

Keywords

Article
Publication date: 12 September 2023

A.K.S. Suryavanshi, Viral Bhatt, Sujo Thomas, Ritesh Patel and Harsha Jariwala

Recent studies have observed rise in consumer’s ethical concerns about the online retailers while making a purchase decision. The impetus for businesses to use corporate social…

Abstract

Purpose

Recent studies have observed rise in consumer’s ethical concerns about the online retailers while making a purchase decision. The impetus for businesses to use corporate social responsibility (CSR) is evident, but the effects of CSR motives on corresponding processes underlying cause-related marketing (CRM) patronage intention have not been thoroughly examined. This study, anchored on attribution theory, established a research model that better explains the influence of CSR motives on patronage intentions toward CRM-oriented online retailers. Additionally, this study aims to examine the moderating role of spirituality (SPT) on CSR motives and CRM patronage intention (CPI).

Design/methodology/approach

Primary data has been collected from 722 respondents and analyzed by using deep neural-network architecture by using the innovative PLS-SEM-ANN method to predict/rank the factors impacting CPI.

Findings

The results revealed the normalized importance of the predictors of CPI and found that value-driven motive was the strongest predictor, followed by strategic motive, SPT, age and stakeholder-driven motive. In contrast, egoistic motive, education and income were found insignificant.

Originality/value

The pandemic has transformed the way consumers shop and fortified the online economy, thereby resulting in a paradigm shift toward usage of e-commerce platforms. The results offer valuable insights to online retailers and practitioners for predicting patronage intentions by CSR motives and, thus, effectively engage CRM consumers by designing promotions in a way that would deeply resonate with them. This study assessed and predicted the factors influencing the CPI s, thereby guiding the online retailers to design CSR strategies and manage crucial CRM decisions.

Details

Social Responsibility Journal, vol. 20 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 22 April 2024

Eping Liu, Miaomiao Xie and Jingyi Guan

As cross-cultural mergers and acquisitions (M&A) have learning effects on organisations, assessing their impacts on corporate performance is crucial. This study aims to explore…

Abstract

Purpose

As cross-cultural mergers and acquisitions (M&A) have learning effects on organisations, assessing their impacts on corporate performance is crucial. This study aims to explore the impact of inter-firm cultural differences on long-term post-M&A stock market performance.

Design/methodology/approach

The authors select domestic M&A transactions of Chinese listed companies during 2010–2021 as the sample. Then, the authors use the partial least squares structural equation model (PLS-SEM) to construct the latent variable of cultural differences in four dimensions to explore long-term stock market performance.

Findings

Cultural differences first positively and then negatively impact post-M&A performance. Three transmissions mechanisms are identified: investor sentiment, takeover premiums and information disclosure quality. Further analysis reveals that acquirer stock performance improves with higher analyst coverage and non-local shareholders but worsens if there are business affiliations between the acquirer and target firms.

Practical implications

This study can help optimise information disclosure systems in M&A transactions for regulatory authorities and aid investors’ understanding of post-M&A performance changes. Furthermore, it can improve acquirers’ understanding of the risks and opportunities in cross-cultural M&A, thereby facilitating the adaptation of management practices to the im-pacts of cultural differences.

Originality/value

By integrating the theories of resource dependence and transaction costs, this study examines the reversal effect of cultural differences between merging companies on post-M&A performance. The authors use a PLS-SEM to empirically analyse the main effects and reveal three transmission mechanisms.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 16 April 2024

Gustavo Hermínio Salati Marcondes de Moraes, Paola Rücker Schaeffer, André Cherubini Alves and Sohvi Heaton

This study aims to understand the impact of student entrepreneurship and university support on faculty intrapreneurship. The authors also analyze the role of the university’s…

Abstract

Purpose

This study aims to understand the impact of student entrepreneurship and university support on faculty intrapreneurship. The authors also analyze the role of the university’s dynamic and ordinary capabilities and the environmental dynamism in which the university is embedded.

Design/methodology/approach

With a large survey data set involving 680 professors and 2,230 students from 70 Brazilian universities, the authors use a multimethod approach with partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The PLS-SEM results demonstrate that student entrepreneurship indirectly influences faculty intrapreneurship through the interaction of students with faculty and entrepreneurs, in addition to proving the intense influence of university support on faculty intrapreneurship, especially in a slow-growth environment. Additionally, the authors confirmed the moderating effect of universities’ dynamic and ordinary capabilities on student interaction and university support, respectively, and some exciting differences considering the ecosystem dynamism. The fsQCA results deepened the differences between environments, presenting different configurations between the antecedents that lead to high levels of faculty intrapreneurship in fast and slow-growth environments.

Originality/value

The study makes a unique and significant contribution to the literature on faculty intrapreneurship by examining the cross-interactions between individual, organizational and environmental levels about the promotion of faculty intrapreneurship. From a practical point of view, it is possible to identify more effective, innovative and systematic ways to encourage faculty intrapreneurship in a developing country. The findings help open up the black box of faculty intrapreneurship.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

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