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1 – 5 of 5Prabanga Thoradeniya, Aldónio Ferreira, Janet Lee and Rebecca Tan
Drawing upon Abrahamson's (1991) typology of innovation diffusion, this study aims to investigate the factors underpinning diffusion of sustainability key performance indicators…
Abstract
Purpose
Drawing upon Abrahamson's (1991) typology of innovation diffusion, this study aims to investigate the factors underpinning diffusion of sustainability key performance indicators (SKPIs) in a developing country.
Design/methodology/approach
A qualitative study was conducted in Sri Lanka involving semi-structured interviews with managers, as users of SKPIs (demand-side), and both consultants and academics, as agents in diffusion process (supply-side).
Findings
Diffusion of SKPIs was found to be driven by efficient-choice considerations, with fashion motives intertwined with these. The diffusion was influenced by developing country context issues relating to market competition, education, government and culture. It was somewhat surprising that market forces played a key role to the extent they did. Minimal stakeholder pressure was found to undermine the diffusion process, contrasting with developed countries in which key stakeholders act as catalysts. The developing country context appears to slow down the pace, rather than alter the pattern, of diffusion of SKPIs.
Research limitations/implications
This study is limited by its focus on SKPI adopters, which does not permit to draw insights regarding motivations of non-adopters.
Originality/value
This study draws upon Abrahamson's typology to explore the diffusion of SKPIs in the poorly understood developing country context. The findings provide insights into driving forces behind diffusion of SKPIs, suggesting the developing country context creates “stickiness” that influences pace rather than the pattern of diffusion of SKPIs.
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Paul J. Thambar, Aldónio Ferreira and Prabanga Thoradeniya
This study aims to examine the role of performance management systems (PMSs) in enabling logic blending to manage institutional complexity and tensions arising from coexisting…
Abstract
Purpose
This study aims to examine the role of performance management systems (PMSs) in enabling logic blending to manage institutional complexity and tensions arising from coexisting institutional logics.
Design/methodology/approach
This research uses a case study of an Australian non-government organisation (NGO) operating in an institutional field dominated by the state government, in which policy reform jolted the balance between institutional logics. Data was collected through semi-structured interviews, archival documents and observations.
Findings
We find the policy reform required the NGO to transform from a wholly care focus to accommodate a more balanced approach with a focus on care coupled with efficiency, outcome delivery and performance measurement. The NGO responded by revising its purpose, strategy and operational model and by seeking to address the imperatives of two dominant and often competing care and managerial logics. We find this was achieved through logic blending, in which PMSs played a pivotal role, with the formalisation and collaboration processes mobilising different elements of PMSs, mobilising some elements differently or not mobilising some elements at all.
Originality/value
This study highlights the central role of PMSs in managing tensions between and the complexity arising from coexisting institutional logics through logic blending, a form of enduring compromise. This study extends the accounting logics and performance management literature by developing the understanding of what constitutes logic blending and how it is distinct from other forms of compromise.
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Mukesh Garg, Mehdi Khedmati, Fanjie Meng and Prabanga Thoradeniya
The purpose of this paper is to examine whether the quality of management can mitigate the positive association between corporate tax avoidance and firm-specific stock price crash…
Abstract
Purpose
The purpose of this paper is to examine whether the quality of management can mitigate the positive association between corporate tax avoidance and firm-specific stock price crash risk (SPCR).
Design/methodology/approach
The study is based on data from the Center for Research in Security Prices (CRSP), Compustat and ExecuComp and focuses on US-listed firms from 1980 to 2016. The authors employ ordinary least squares (OLS) regression as the baseline methodology and use five measures of tax avoidance and three measures of SPCR. Propensity score matching (PSM) and two-stage least squares methodologies are employed to address endogeneity concerns.
Findings
The authors find that more able managers weaken the positive relationship between tax avoidance and SPCR. The results suggest that the benefits of efficient tax management are more likely in firms with a more able management team as the likelihood of SPCR due to tax avoidance practices is reduced in such firms.
Practical implications
This study has important practical implications for investors who are concerned about firms that engage in tax planning activities that can reduce corporate taxes, but at the same time increase the SPCR. Considering the compelling arguments and the “dark” side of more able managers who may engage in opportunistic behaviour, the study provides useful evidence in support of more able managers.
Originality/value
This paper contributes to the SPCR literature by examining the effect of managerial ability on the likelihood of tax avoidance causing SPCR. Able managers are likely to lower the risk faced by investors and are less likely to extract rent and manipulate information. Therefore, the findings of this study have implications for investors by informing them of the negative value implications of tax avoidance and how they can be mitigated by hiring more able managers.
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Prabanga Thoradeniya, Janet Lee, Rebecca Tan and Aldónio Ferreira
Drawing upon the theory of planned behaviour (TPB), the purpose of this paper is to examine the influence of managers’ attitude and other psychological factors on sustainability…
Abstract
Purpose
Drawing upon the theory of planned behaviour (TPB), the purpose of this paper is to examine the influence of managers’ attitude and other psychological factors on sustainability reporting (SR). In doing so, this paper aims to respond to calls for the use of previously untried theoretical approaches on the SR literature.
Design/methodology/approach
The study uses a survey of top and middle-level managers of listed and non-listed companies in Sri Lanka. Data were analysed using a Partial Least Squares path model.
Findings
The findings indicate that managers’ attitude towards SR, belief about stakeholder pressure, and their capacity to control SR behaviour influence their intention to engage in SR and, indirectly, actual corporate SR behaviour (in the context of listed companies). However, whilst managers of non-listed companies exhibit the intention to engage in SR, the lack of a relationship between intention and behaviour suggests that companies face barriers towards SR due to lack of actual control over the SR process. Religion, in the case of non-listed companies, and education, in the case of listed companies, has some degree of influence over managers’ beliefs.
Research limitations/implications
The use of self-reported SR behaviour is a limitation but necessary to maintain anonymity of respondents. The low levels of self-reported SR correspond with past evidence on actual SR in developing countries.
Practical implications
The results show that managers’ psychological factors are important in determining SR behaviour in companies. Specifically, this highlights the possible roles that regulators, professional bodies and companies can play in improving educational and cultural influences towards improving the level of SR.
Originality/value
This is the first study to apply the TPB to understand SR behaviour by integrating psychological factors relating to managers’ belief, attitudes and perceptions.
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