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Book part
Publication date: 16 July 2019

Ahmet C. Kurt and Nancy Chun Feng

Many argue that the design of compensation contracts for public company chief executive officers (CEOs) is often not guided by a goal of value maximization. Yet, there is…

Abstract

Many argue that the design of compensation contracts for public company chief executive officers (CEOs) is often not guided by a goal of value maximization. Yet, there is limited direct empirical evidence on the negative consequences of the proposed inefficient contracting between shareholders and CEOs. Using data on CEO bonus contracts of the S&P 500 firms, we investigate potential firm performance implications of the use of qualitative criteria such as leadership and mentoring in those contracts. We maintain that unlike quantitative criteria, qualitative criteria are difficult to define and measure on an objective basis, possibly resulting in an inefficient and biased incentive structure. Twenty-five percent of the sample observations have CEO bonus contracts that include a qualitative criterion for bonus payment determination. Our results show that employee productivity, asset productivity, capital expenditures, and future abnormal stock returns are lower for firms that use a qualitative criterion in CEO bonus contracts than those that do not. Further, contrary to the argument in prior literature that earnings management decreases with the use of subjective performance indicators in incentive contracts, we find that income-increasing accruals are actually higher when the CEO bonus contract includes a qualitative criterion. We recommend that compensation committees set concrete, measurable performance goals for CEOs, providing CEOs with better guidance and helping improve their corporate decision making.

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Book part
Publication date: 22 July 2021

Oyerogba Ezekiel Oluwagbemiga

The main objective of this study is to investigate whether adoption of International Financial Reporting Standards (IFRS) improve the quality of financial reporting in…

Abstract

The main objective of this study is to investigate whether adoption of International Financial Reporting Standards (IFRS) improve the quality of financial reporting in Nigeria. Financial reporting quality was measured in terms of fundamental qualitative characteristics such as relevance and faithful representation and enhancing qualitative characteristics such as understandability, comparability, verifiability, and timeliness as contained in the conceptual framework. The study was conducted on a sample of 162 companies listed on the Nigerian Stock Exchange. A compound measurement tool in form of an index was developed to comprehensively assess the quality of financial reporting based on information disclosed in the financial statement of the selected companies. From both univariate and multivariate analysis, I found strong evidence suggesting that accounting standard used in the preparation of financial statement have significant influence on the quality of financial report of the reporting entity. The result persists for all the three models (overall financial reporting quality, fundamental, and enhancing qualitative characteristics) tested in this analysis. The result also revealed that apart from firm age and firm growth, most of the firm-specific variables investigated have statistically significant influence on the financial reporting quality.

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Article
Publication date: 8 June 2015

Lena Låstad, Erik Berntson, Katharina Näswall, Petra Lindfors and Magnus Sverke

The purpose of this paper is to develop and validate a measure of job insecurity climate by: first, testing whether job insecurity climate and individual job insecurity…

Abstract

Purpose

The purpose of this paper is to develop and validate a measure of job insecurity climate by: first, testing whether job insecurity climate and individual job insecurity are two separate constructs; and second, investigating the relative importance of individual job insecurity and job insecurity climate in predicting work-related and health-related outcomes.

Design/methodology/approach

Data were collected by questionnaires in a simple stratified random sample of 1,380 white-collar workers in Sweden. The response rate was 56 percent.

Findings

Confirmatory factor analyses showed that job insecurity climate was distinct from individual job insecurity. Four separate ridge regression analyses showed that qualitative job insecurity climate was a significant predictor of demands, work-family conflict, psychological distress, and poor self-rated health and that quantitative job insecurity climate predicted demands and work-family conflict.

Research limitations/implications

The study is based on self-reports, which may involve common method bias. The cross-sectional study design limits the possibility to make causal inferences regarding the relationship between job insecurity climate and outcomes.

Practical implications

Future studies may consider measuring job insecurity climate in line with a referent-shift model. Work environment surveys in organizations that include measures of individual job insecurity and job insecurity climate can provide practitioners with a fuller picture of the psychosocial work environment.

Originality/value

The present study adds to previous research by introducing a new approach to measuring and conceptualizing job insecurity climate.

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Article
Publication date: 1 October 2003

Peter Yih‐Tong Sun and John L. Scott

In a rapidly changing business environment, the need to constantly adapt is deemed essential to maintain competitive advantage. This requires an optimum balance of…

Abstract

In a rapidly changing business environment, the need to constantly adapt is deemed essential to maintain competitive advantage. This requires an optimum balance of quantitative and qualitative measures to monitor progress and performance. This paper provides a framework of thought process that will guide practitioners in developing better qualitative measures and seeks to answer three essential questions: thought process 1 – what is the nature of reality? Provides the answer to the question, can the phenomenon be realistically measured? Thought process 2 – what are the processes used for constructing the measure? Provides answer to the question, are the processes appropriate and sufficiently influential? Thought process 3 – what usefulness and power does this measure provide? Provides answer to the question, is it powerful in a practical environment? The framework was applied to measurement in learning organization contexts and ten models were reviewed. Conclusions cover deficiencies in the models and suggestions on how they might be improved.

Details

The Learning Organization, vol. 10 no. 5
Type: Research Article
ISSN: 0969-6474

Keywords

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Article
Publication date: 4 July 2018

Fatma Pakdil, Pelin Toktaş and Karen Moustafa Leonard

The purpose of this paper is to test the reliability and validity of the qualitative section of Lean Assessment Tool (LAT) starting from the point where a reliable and…

Abstract

Purpose

The purpose of this paper is to test the reliability and validity of the qualitative section of Lean Assessment Tool (LAT) starting from the point where a reliable and valid tool is needed to measure increasing leanness level of business organizations.

Design/methodology/approach

The questionnaire used in this study included the qualitative component of LAT developed by Pakdil and Leonard (2014). The unit of the study was individual employees who work in manufacturing firms participating in this study. This study focused on the data collected from three firms that operate in Turkey and two firms that operate in the USA. The total respondents from Turkish firms were 263 employees, while the 205 employees responded from US firms.

Findings

Exploratory factor analysis and confirmatory factor analysis were completed to determine valid and reliable factors that compose LAT’s qualitative component. The statistical analysis showed five distinct factors, namely process, delivery, quality, customer satisfaction and human resource. In addition, the fuzzy logic showed appropriate loadings to make the argument for its use in analysis of the LAT.

Research limitations/implications

This study moves the debate about the success or failure of lean efforts forward. With the debates about lean and its potential, it is necessary to have a scientific determination of success and the areas where further work in the firm is needed. Such measurement is the backbone of management progress, and the authors believe that this paper is useful. Second, the necessity of reliable and valid tools of lean assessment is obvious in the literature and practice. The findings of this study help academicians find reliable and valid tools to measure lean success both in the literature and practice.

Practical implications

Managerial implications include the development of a way to assess the areas of success and areas requiring further work. Failure to measure success and needs for further work has been the reason for the questionable results found in investigating lean implementation efforts. If there is no way to determine what is needed to improve lean efforts, they will be seen as failure, even if part of the implementation has been successful. This tool has been found to be potentially useful for evaluation of these crucial and time-consuming efforts.

Originality/value

In this study, the qualitative section of LAT has been validated. The results demonstrated that, based on two countries’ data sets, the scale was found to be reliable and valid within itself and across sociocultural boundaries.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 7
Type: Research Article
ISSN: 1741-038X

Keywords

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Article
Publication date: 29 April 2021

Khushdeep Dharni and Saddam Jameel

This study highlights the trends of qualitative intellectual capital disclosures and patent statistics in the Indian manufacturing context by considering the numerous…

Abstract

Purpose

This study highlights the trends of qualitative intellectual capital disclosures and patent statistics in the Indian manufacturing context by considering the numerous patent applications, patent grants, forward citations and backward citations. Furthermore, the study investigates the relation among qualitative disclosures, patent statistics and firm performance.

Design/methodology/approach

All manufacturing companies of CNX 500 Index of National Stock Exchange of India Limited are considered. Based on data availability, 243 manufacturing firms spanning across seven major manufacturing sectors are included. Secondary data were obtained from the annual report of companies and patent databases from 2004 to 2005 to 2013–2014, generating a sample of 2,430 firm years. Content analysis and citation analysis are used for collecting the relevant data.

Findings

Overall, the study results indicated increasing trends for all types of intellectual capital disclosures. Similar trends are observed for patent applications and patent grants, indicating a surge in patenting activities across the manufacturing sector. However, increasing trends in patenting activities are not reflected for forward and backward citations. In addition, significant differences in means and trend coefficients for qualitative disclosures and patent statistics indicated industry specificity within the Indian manufacturing sector. Furthermore, industry specificity is observed when translating intellectual capital to firm performance. The measure of firm performance, that is, Tobin's Q, is having a significant positive association with qualitative disclosures and patent statistics.

Research limitations/implications

As the study is based on secondary data, its accuracy is limited by the accuracy of the data sources such as the annual reports of companies and patent databases.

Practical implications

The study findings imply that policymakers should devise and execute sector-specific policy interventions. Moreover, managers and policymakers should emphasize the qualitative aspect of patenting activities.

Originality/value

The study is an original work that highlights the trends in qualitative disclosures in the Indian manufacturing context. The value relevance of intellectual capital and patent statistics has been established.

Details

Journal of Intellectual Capital, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1469-1930

Keywords

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Article
Publication date: 6 July 2018

Marc R.H. Roedenbeck and Manfred Lieb

This paper aims to investigate how a small business is able to continually use entrepreneurial financial sources (i.e. crowdfunding) within and after a successful…

Abstract

Purpose

This paper aims to investigate how a small business is able to continually use entrepreneurial financial sources (i.e. crowdfunding) within and after a successful transformation from an entrepreneur. It additionally investigates how a market incumbent is able to successfully join the market of entrepreneurial financial resources.

Design/methodology/approach

Therefore, a comparative case study using qualitative and quantitative data as well as triangulation technique is conducted within the international board game (or tabletop) market at the crowdfunding platform Kickstarter. The US company CMON, which has developed from an entrepreneur to a small business and beyond, is compared with the German incumbent Pegasus. Based on an analysis of a set of key performance indicators suggested in the literature, qualitative and quantitative variables are deductively derived to measure their impact on the financial goal achievement, thereby showing their impact on the goal achievement. During the analysis, additional variables are identified inductively.

Findings

As a result, several qualitative components are found to be crucial, including oral storytelling and computer animated videos/images, a perfect multilingual product language, prototyped components, an active community and a depth and regularity in campaign updates. In quantitative terms, important components include having more product images than longer project descriptions, more optional buys than different but fixed project rewards, a big social network (on Twitter and Facebook), and the number of updates.

Research limitations/implications

Based upon the data and findings, this study invites for more research, especially in conducting a larger scale quantitative analysis using the developed framework to compare more cases within a branch, cases across branches and cases with different background stories.

Practical implications

But to successfully run a crowdfunding campaign, entrepreneurs and incumbents can use the provided measures as a first design- and decision-roadmap, as well as copying the new business strategy of continually practicing crowdfunding for new products.

Originality/value

Despite its limits, this paper offers the first in-depth qualitative and quantitative crowdfunding case study showing on the one hand a new business strategy about crowdfunding as well as providing a structured measure to compare crowdfunding project performance.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 20 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

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Article
Publication date: 2 March 2015

Ilkka Sillanpää

Supply chain (SC) performance measurement – the process of qualifying the efficiency and effectiveness of the SC. The purpose of this paper is to create a SC measurement…

Abstract

Purpose

Supply chain (SC) performance measurement – the process of qualifying the efficiency and effectiveness of the SC. The purpose of this paper is to create a SC measurement framework for manufacturing industry, define which data should be measured and verify the measurement framework in the case company’s SC.

Design/methodology/approach

There is a review of the current understanding of supply chain management and literature related to SC performance measurement and the study creates a framework for SC measurement. This research is qualitative case study research.

Findings

This study presents the main theoretical framework of SC performance measurement. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. The measurement framework is tested by measuring case SC performance.

Research limitations/implications

In the study, a performance measurement framework was created for the needs of manufacturing industry. Suggestions for future research are multiple case study in different manufacturing industry areas and positivistic-based SC performance research.

Practical implications

The measurement framework in this study offers guidelines for measuring the SC in manufacturing industry but the measurement framework could be used in different areas of industry as well.

Originality/value

The SC performance measurement framework is tested and a valid framework for SC performance measurement in manufacturing industry.

Details

Benchmarking: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 22 July 2013

Virpi Sillanpää

Earlier research highlights the need for the welfare service sector to measure the impacts of their services. However, it seems that the welfare services lack measures to…

Abstract

Purpose

Earlier research highlights the need for the welfare service sector to measure the impacts of their services. However, it seems that the welfare services lack measures to show their long-term effects and impacts. This paper aims to present a framework to measure the multidimensional impacts of welfare service innovations and report the empirical results from two case studies.

Design/methodology/approach

In the first part of the paper, the impact measurement literature is reviewed and a framework for measuring the impacts of welfare services is presented. The empirical part of the paper reports the application of the framework in two cases for measuring the impacts of interventions in welfare services in Finland. The aim of the case studies was to assess and illustrate the usefulness of the framework designed.

Findings

The framework proposed in the research may serve as a practical tool for decision-makers for assessing the impacts of different services and service innovations in the welfare service sector. This type of assessment is needed, for example, when new service innovations are designed and budgeted for.

Originality/value

This research introduces a framework for measuring the impacts of welfare services at different levels. In addition, the paper provides information about the measurement process and challenges related to the implementation of impact measurement.

Details

International Journal of Productivity and Performance Management, vol. 62 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Content available
Article
Publication date: 3 August 2021

Helena Forslund and Stig-Arne Mattsson

The purpose of this study is to identify, characterize and assess supplier flexibility measurement practices in the order-to-delivery process.

Abstract

Purpose

The purpose of this study is to identify, characterize and assess supplier flexibility measurement practices in the order-to-delivery process.

Design/methodology/approach

The study involved a survey; participants were 224 purchasing managers at Swedish manufacturing companies that had more than 20 employees.

Findings

Scrutiny of the details of measurement practices revealed that most respondents actually do not specifically measure supplier flexibility. Instead they measure other measures like delivery reliability, conduct qualitative follow-ups, or cannot specify how supplier flexibility is measured. It was acknowledged that they measure different supplier flexibility aspects, and the applied measures were characterized, e.g. in terms of which flexibility dimension they represent.

Research limitations/implications

Conceptual clarifications and adaptations to measuring supplier flexibility in the order-to-delivery process are provided. The identified measures can be a contribution in further developing literature on flexibility performance measurement.

Practical implications

Purchasing, logistics and supply chain managers in search of supplier flexibility performance measurement can find ways to measure and an extended flexibility vocabulary. This has the potential to improve flexibility in the supply chain.

Originality/value

Even though flexibility is claimed as being an important competitive advantage, few empirical studies and operationalized measures exist, particularly in the order-to-delivery process.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

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