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1 – 5 of 5António Miguel Martins and Cesaltina Pacheco Pires
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Abstract
Purpose
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Design/methodology/approach
The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.
Findings
The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.
Practical implications
This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.
Originality/value
The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.
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This study aims to outline the role of causal attributions in consumer responses to irresponsible corporate behaviour. Specifically, this paper presents a moderated mediation…
Abstract
Purpose
This study aims to outline the role of causal attributions in consumer responses to irresponsible corporate behaviour. Specifically, this paper presents a moderated mediation model that explains how four types of perceived motives behind an irresponsible action shape corporate blame and word-of-mouth recommendations.
Design/methodology/approach
To test the hypotheses, the study uses data from a large survey assessing consumer reactions to a real case of corporate socially irresponsible behaviour in the banking industry.
Findings
The findings show that market-, unethicality- and rogue employee-driven attributions increase corporate blame and subsequently make people more likely to spread negative comments regarding the culprit. The difficult situation of a bank, as a perceived reason for wrongdoing, does not reduce the blame attributed to the irresponsible organisation.
Originality/value
The literature offers little information on the attributions people make following egregious corporate behaviour; however, such cognitions can play an important role in stakeholders’ reactions to wrongdoing. This study therefore extends the understanding of how irresponsibility attributions affect consumers’ responses to misbehaviour. Given the empirical context, the findings might be particularly important for communication and bank managers.
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Arpita Agnihotri and Saurabh Bhattacharya
This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.
Abstract
Purpose
This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.
Design/methodology/approach
This study includes panel regression based on archival data.
Findings
CEO narcissism leads to signaling of organizational virtuous orientation that results in increase in CSR investment.
Originality/value
Relevance of CEO traits on CSR remains unexplored in emerging markets context, especially the underlying mechanism. This study uncovers these mechanisms.
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Bastian Burger, Dominik K. Kanbach and Sascha Kraus
Recent years have seen a meteoric rise in the study of narcissism in entrepreneurship, although little consolidation has occurred in this area. The purpose of this paper is the…
Abstract
Purpose
Recent years have seen a meteoric rise in the study of narcissism in entrepreneurship, although little consolidation has occurred in this area. The purpose of this paper is the development of an integrative framework to harmonise the academic discussion and serve as a structured foundation for future research.
Design/methodology/approach
The authors conducted an artificial intelligence-aided, structured literature review focused on content analysis of concepts and contexts to map out current findings and research gaps in startup narcissism research.
Findings
According to the findings of this study, narcissistic tendencies have the potential to positively influence startup success early on in an entrepreneur's journey, but after a certain point in the process, the influence of narcissism on success becomes predominantly negative.
Research limitations/implications
The research field is currently not very harmonised regarding research measures, research subjects and key research terms. Further research must use a standardised approach to add value to the research body.
Practical implications
Narcissism is a two-sided sword for founders. In the early stages of a company, many of the founder’s tasks can benefit from narcissistic tendencies. In the later stages of a company, that might shift to overwhelmingly negative effects of narcissism.
Originality/value
Methodically, this study is the first one to establish an artificial intelligence component to add value to the results of a review paper to the best of the authors’ knowledge. The results of this study provide a clear framework of entrepreneurial intention, entrepreneurial activity and entrepreneurial performance to give researchers the opportunity of a more differentiated way of organising work.
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Simona Arduini, Martina Manzo and Tommaso Beck
This study aims to analyze how sustainability, through an efficient knowledge management (KM) system, can serve as a driving force with respect to corporate culture and…
Abstract
Purpose
This study aims to analyze how sustainability, through an efficient knowledge management (KM) system, can serve as a driving force with respect to corporate culture and reputation. The research questions that guided this study are mainly the following: Are KM and sustainability related? Can culture strengthen the link between KM and sustainability? Can the link between KM and sustainability be affected by reputation?
Design/methodology/approach
The methodological approach adopted corresponds to qualitative research of analysis on the reference literature in the international field, also supported by empirical analysis.
Findings
In this study, the authors show that there is no explicit correlation between sustainability and KM. This relationship, in fact, is not underlined in nonfinancial reporting because it is absent or because it is not considered relevant. Too often sustainability is reduced to a mere relational and reputational tool, ignoring the fact it must be considered a consequence and not the main goal to improve companies’ culture.
Research limitations/implications
The sample studied by the authors refers to the top 40 companies listed on the Italian market, not allowing to generalize the findings across the international context.
Practical implications
The practical implications that could result from making explicit the relationship between sustainability and KM are multiple: the substantial benefits of the reputational aspect, an increase in the economic value related to sustainability; to ensure the going concern of the company and implement its ability to produce and share value in the long term.
Social implications
The social benefits of a stronger relationship between sustainability and KM are related to the possibility to improve the wealth of all the stakeholders.
Originality/value
This paper analyzes the links between sustainability and KM to understand the influence of these factors on corporate culture and reputation.
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