Search results

Prior literature has found that as uncertainty in a firms information environment increases, optimism increases in equity analysts’ earnings forecasts. The studies suggest an economic incentive explanation, commonly called the management‐relations hypothesis. However, there is conflicting evidence that managers would prefer pessimistic forecasts and encourage analysts to “walk‐down” their forecasts to prevent negative earnings surprises. To test these contradictory findings, this study uses an experimental setting to remove economic incentives from the analyst’s decision process and isolate the cause of observed bias in analysts’ reports. The results of the experiment show that an increase in the perceived uncertainty of the forecasting task results in significantly lower relative optimism in analysts’ earnings forecasts. This finding is consistent with a negativity hypothesis and the managementrelations hypothesis extolled in the empirical research. The findings also show that relative forecast optimism bias is positively related to the level of analysts’ buy/sell recommendations consistent with more recent findings that suggest that analysts use motivated reasoning (the tendency to process information in a manner that supports one’s goal) in their judgments of forecasted earnings and recommendations. Together, these results suggest that analysts consider and use financial information differently depending on their decision goal.

The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive advantage provided by BI capability is not well researched. To fill this gap, this study attempts to develop a model for successful BI deployment and empirically examines the association between BI deployment and sustainable competitive advantage. Taking the telecommunications industry in Malaysia as a case example, the research particularly focuses on the influencing perceptions held by telecommunications decision makers and executives on factors that impact successful BI deployment. The research further investigates the relationship between successful BI deployment and sustainable competitive advantage of the telecommunications organizations. Another important aim of this study is to determine the effect of moderating factors such as organization culture, business strategy, and use of BI tools on BI deployment and the sustainability of firm’s competitive advantage.

This research uses combination of resource-based theory and diffusion of innovation (DOI) theory to examine BI success and its relationship with firm’s sustainability. The research adopts the positivist paradigm and a two-phase sequential mixed method consisting of qualitative and quantitative approaches are employed. A tentative research model is developed first based on extensive literature review. The chapter presents a qualitative field study to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. The study includes a survey study with sample of business analysts and decision makers in telecommunications firms and is analyzed by partial least square-based structural equation modeling.

The findings reveal that some internal resources of the organizations such as BI governance and the perceptions of BI’s characteristics influence the successful deployment of BI. Organizations that practice good BI governance with strong moral and financial support from upper management have an opportunity to realize the dream of having successful BI initiatives in place. The scope of BI governance includes providing sufficient support and commitment in BI funding and implementation, laying out proper BI infrastructure and staffing and establishing a corporate-wide policy and procedures regarding BI. The perceptions about the characteristics of BI such as its relative advantage, complexity, compatibility, and observability are also significant in ensuring BI success. The most important results of this study indicated that with BI successfully deployed, executives would use the knowledge provided for their necessary actions in sustaining the organizations’ competitive advantage in terms of economics, social, and environmental issues.

This study contributes significantly to the existing literature that will assist future BI researchers especially in achieving sustainable competitive advantage. In particular, the model will help practitioners to consider the resources that they are likely to consider when deploying BI. Finally, the applications of this study can be extended through further adaptation in other industries and various geographic contexts.

Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.

Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.

First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.

This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.

This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.

The purpose of this study is to examine hotel managers’ perspectives on the promotion process of hotel employees based on the promoted employee’s gender, their perceived organizational justice and perceived gender discrimination against women. The moderating role of anti-male bias beliefs in the promotion process was examined.

The study adopted an experimental design (female vs male promoted) with a sample of 87 hotel managers. Data were analyzed using mediation and moderated mediation analyses.

The results indicated procedural and distributed justice mediates the effect of gender of the promoted employee on perceived gender discrimination against women. It was found that perceptions of anti-male bias moderate the relationship between gender of the promoted employee and distributed justice, demonstrating higher levels of perceived fairness within the organization when a female is promoted, especially when low levels of anti-male bias exist.

Many organizations may refrain from offering more promotional opportunities to women for fear of reverse discrimination. This research demonstrates that the organization will be perceived as fairer if it offers more opportunities to women, should create a stronger organizational culture and higher financial performance.

To the best of the authors’ knowledge, this paper is the first to address the gender inequity in promotional opportunities of hotel employees and demonstrate the overall benefit of combating such inequality. This is the first time that anti-male bias has been addressed in the hospitality context, suggesting the need for more research on reverse discrimination, especially in promotional situations.

The purpose of this paper is to examine the effects of gender and strength of gender identification on employees’ perception of gender discrimination. It also explores whether gender comparison and perceived gender bias against women act as mediators in the above relationships. It aims to advance the understanding of the processes leading to individual’s perception of gender discrimination in the Chinese workplace.

Data were collected from 362 workers via an employee survey in three large companies in China. The human resource staff helped us to distribute a self-administered questionnaire to the employees, and the authors assured them of confidentiality and protected their anonymity. To test the hypotheses, the authors employed structural equation modeling. The authors first conducted confirmatory factor analysis on the measurement model, and then the authors estimated three nested structural models to test the mediating hypotheses.

The results reveal that gender and strength of gender identification are related to perceived gender discrimination. The authors further found that gender comparison and perceived gender bias against women partially mediated the relationship between gender and perceived gender discrimination, while gender comparison fully mediated the relationship between strength of gender identification and perceived gender discrimination.

The study helps managers understand why and how their subordinates form perceptions of gender discrimination. Given the findings, they should be aware of the importance of gender identity, gender comparison, and gender bias in organizational practices in affecting such perceptions.

This study is the first exploration of the complex relationships among gender, gender identification, gender comparison, perceived gender bias against women, and perceived gender discrimination. It shows the salient role of gender comparison and gender bias against women in shaping employees’ perceptions of gender discrimination, apart from the direct effects of gender and strength of gender identification.

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

The purpose of this paper was to examine whether a less precise (or imprecise) estimate may increase investors’ confidence and improve investors’ perceptions of fair value reliability. The main criticism of fair value accounting has been its lack of reliability perceived by investors.

A 2 × 3 randomized experiment was used where management incentive and information precision are manipulated.

The results from this study indicate that perceived reliability is jointly affected by management’s incentives and information precision. Reliability rating is the highest for fair value stated as a point estimate with a specified confidence level attached to it. Further analysis indicates that higher perceived reliability is related to its representational faithfulness because participants perceive that a point estimate with a specified confidence level better matches uncertainty in measuring future cash flows.

This is the first study to examine whether a less precise (or imprecise) estimate may increase investors’ confidence and improve investors’ perceptions of fair value reliability. Because of the subjectivity and uncertainty in fair value estimates, less precise fair value estimates may not be viewed as less reliable. In fact, using a precise format to represent fair value estimates may not be appropriate (neither reliable nor credible), because a precise point estimate fails to capture its underlying uncertainty in future cash flows. A less precise format could represent a credible choice for fair value because it reflects uncertainty and subjectivity and effectively communicates management’s assessments of variability in future cash flows.

This paper employs a qualitative approach to assess the impact which the “liberalisation” of the Greek auditing profession in 1992 may have had on auditor behaviour. The “liberalisation” was introduced by legislation and was the result of a long and intense intra‐professional conflict between a group of indigenous auditors and international accounting firms. Overall, the paper illuminates the deeply political and self‐interested nature of the Greek auditing profession and its socially constructed and contextually dependent character. The results also indicate that following the “liberalisation”, auditors gave significantly less emphasis to functions relating to: being independent; publicly communicating audit findings; protecting the interests of external stakeholders, and presenting “true and fair” financial statements. In contrast, auditors placed significantly more emphasis on providing management advisory services to audit clients. The significant changes in auditor behaviour are linked to the economic dependence of auditors on audited companies which resulted from the audit reform. These findings appear to question the received wisdom underpinning the internationally prevalent move towards privatisation and deregulation of statutory audit services. Finally, the paper has important methodological implications as it demonstrates the limitations of quantitative techniques vis‐à‐vis qualitative approaches to accounting research in politically charged contexts.

This study aims to investigate an under-researched area, the impact of causal attributions (i.e. causal stability and company-related/-unrelated attributions) on salespeople’s job satisfaction following their performance appraisal.

A pre-test and a between-subjects experimental study test the effect of accurate or biased perceptions of causal attributions on salespeople’s job satisfaction. Data collected from 209 salespeople provide evidence that they make perceptual attribution errors in their appraisals of the performance outcome they achieve or do not achieve.

When salespeople correctly attribute their performance, causal stability affects their job satisfaction. However, company-related attributions affect their satisfaction only in the case of a poor performance outcome. As expected, salespeople who make biased attributions experience misattributed or “unwarranted” satisfaction or dissatisfaction, a higher or lower satisfaction level than they would have experienced had they made proper causal attributions.

Using Weiner’s theory of emotion and motivation as a theoretical framework, this study confirms that cognitive appraisals of event outcomes (in this case performance reviews) impacts salespeople’s emotional experience. Furthermore, causal ascriptions following the salesperson’s performance appraisal affect job satisfaction.

This study discusses how managers can ensure the continued satisfaction of their salespeople, which constitutes a stable source of motivation, by understanding their performance attributions.

This study introduces a new concept of misattributed job satisfaction or dissatisfaction. While anecdotally some scholars have investigated when salespeople play “the blame game”, this study shows how salespeople correctly or incorrectly ascribe blame for the outcomes and the impact on job satisfaction.