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1 – 10 of 39Ivo Hristov, Matteo Cristofaro and Riccardo Cimini
This study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the…
Abstract
Purpose
This study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the role of NFRs in value creation.
Design/methodology/approach
Data from 76 organizations from 2017 to 2019 were collected and analyzed. Four primary NFRs and their key value drivers were identified, representing core elements that support different dimensions of a company’s performance. Statistical tests examined the relationship between stakeholders’ NFRs and financial performance measures.
Findings
When analyzed collectively and individually, the results reveal a significant positive influence of stakeholders’ NFRs on a firm’s profitability. Higher importance assigned to NFRs correlates with a higher return on sales.
Originality/value
This study contributes to the literature by empirically bridging the gap between stakeholder theory and the resource-based view, addressing the intersection of these perspectives. It also provides novel insights into how stakeholders’ NFRs impact profitability, offering valuable implications for research and managerial practice. It suggests that managers should integrate nonfinancial measures of NFRs within their performance measurement system to manage better and sustain companies’ value-creation process.
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Bambang Tjahjadi, Noorlailie Soewarno, Tsanya El Karima and Annisa Ayu Putri Sutarsa
This study aims to determine whether socially friendly business strategy impacts social sustainability performance and, if so, whether social management process and spiritual…
Abstract
Purpose
This study aims to determine whether socially friendly business strategy impacts social sustainability performance and, if so, whether social management process and spiritual capital act as mediators and moderators of the relationship.
Design/methodology/approach
This study uses a comprehensive research framework consisting of the mediation and moderation relationship among four constructs, namely, socially friendly business strategy, social management process, spiritual capital and social sustainability performance. A total of 433 owners/managers of micro, small and medium-sized firms (MSMEs) in the Indonesian province of East Java took part in this study, and the data were gathered using a survey method. The resource-based view, stakeholder theory and partial least squares structural equation modelling are all used in this study to evaluate and explain the hypotheses.
Findings
The results show that both socially friendly business strategy and social management process positively affect social sustainability performance. Further analysis reveals that spiritual capital moderates the effect of socially friendly business strategy on social sustainability performance. Second, social management process mediates the influence of socially friendly business strategy on social sustainability performance in part.
Research limitations/implications
The current study has limitations. First, it restricts the scope of its sample to MSMEs in Indonesia’s East Java Province. As a result, it also restricts its generalizability, and care must be used if the findings are applied to other types of organizations and geographic areas. Second, some survey participants needed help to complete the online questionnaire. As a result, collecting the data were less successful than anticipated. This study has significant implications for the development of the stakeholder theory, particularly in elucidating the mechanisms by which socially responsible corporate strategies, social management practices and performance in terms of social sustainability are affected.
Practical implications
The findings provide a comprehensive guidance for owners/managers in reorienting their business strategy, managing the social management process and building their spiritual capital to achieve social sustainability performance. It provides materials for researchers and students who are interested in studying the subject matter.
Social implications
MSMEs have a significant role in society. The welfare of society will therefore increase if social sustainability performance is successful. The overall model of social sustainability performance improvements and its antecedents are presented in this study.
Originality/value
To the best of the authors’ knowledge, this study is among the first attempts to explore the general model of improving social sustainability performance using four constructs that are rarely used in previous studies. It also uses a new data set and research setting in Indonesia as one of the emerging countries.
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This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as…
Abstract
Purpose
This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance.
Design/methodology/approach
The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship.
Findings
The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship.
Practical implications
The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies.
Originality/value
This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.
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Ibraheem Saleh Al Koliby, Nurul Aini Binti Mehat, Abdullah Kaid Al-Swidi and Mohammed A. Al-Hakimi
By combining relevant literature and using quantitative methodology, this study aims to look into the role of knowledge management (KM) as a mediator between entrepreneurial…
Abstract
Purpose
By combining relevant literature and using quantitative methodology, this study aims to look into the role of knowledge management (KM) as a mediator between entrepreneurial competencies (ECs) and the sustainable performance (SP) of manufacturing small and medium-sized enterprises (SMEs).
Design/methodology/approach
The relationships in the proposed model were examined with data collected from 122 Malaysian SMEs using a cross-sectional technique and a standardized questionnaire and analyzed using structural equation modeling path analysis.
Findings
According to the findings, ECs have a positive and considerable impact on KM as well as the SP of manufacturing SMEs. Importantly, KM partially mediates between ECs and the SP of manufacturing SMEs.
Research limitations/implications
This research provides a theoretical contribution through the integration of ECs, KM and SP within a unified framework that takes into account the viewpoints of the resource-based view, the knowledge-based view and the triple bottom line. The results corroborate that ECs directly affect SP and indirectly through KM. Nevertheless, the study’s use of cross-sectional survey data makes it impossible to draw conclusions about causes. This is because ECs, KM and SP all have effects on time that this empirical framework cannot account for.
Practical implications
The findings of this research provide valuable insights for managers and decision-makers in SMEs, who are expected to show an increasing interest in adopting KM processes into their companies through which ECs can be translated into SP.
Social implications
By applying the proposed framework, SMEs can conduct their activities in ways that do not harm environmental and societal well-being while achieving appropriate economic performance at the same time.
Originality/value
As a result, the findings of this study can add to the literature on ECs and KM, as well as boost the chances of SME sustainability. Directions for future research are also provided in relation to a better understanding of the factors affecting the SP of SMEs.
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Allam Abu Farha, Said Elbanna, Osama Sam Al-kwifi and Satoko Uenishi
This study seeks to investigate how managerial assumptions shape international market orientation (IMO) and how IMO, in turn, affects the performance of small and medium-sized…
Abstract
Purpose
This study seeks to investigate how managerial assumptions shape international market orientation (IMO) and how IMO, in turn, affects the performance of small and medium-sized enterprises (SMEs), drawing from cognitive theory and the resource-based view (RBV) to provide the theoretical framework.
Design/methodology/approach
The study focuses on the relatively unexplored domain of small and medium-sized enterprises (SMEs) in Japan. A survey was developed and tested using data from 303 Japanese SMEs. The study model was subsequently analyzed using the partial least squares (PLS) technique.
Findings
The study reveals a nuanced relationship between managerial frames of reference (FoRs) and IMOs. The results confirmed notable congruence between interfunctional market orientation and managers who exhibit a political FoR. They also revealed a positive correlation between professional FoR managers and customer market orientation. Additionally, the findings showed that entrepreneurial FoR managers displayed a significant association with competitive market orientation and Bureaucratic FoR matched with the three types of IMO. Finally, the results indicate that all three forms of IMO have a substantial impact on performance, albeit to varying degrees.
Research limitations/implications
The applicability of our results to multinational corporations (MNCs) has not been evaluated. Since the primary focus was to identify the types of associations among FoR and IMO, the causal pathways and explanatory factors that underpinned these observed relationships were not examined in this study. Additionally, due to the geographical concentration of our sample in Japan, we were unable to conduct tests on the suggested model in other countries to validate and potentially generalize the research findings.
Practical implications
By developing an implicit understanding of the market orientation fit within the organization’s FoR, managers can enhance their understanding of competitors' activities and enable them to respond with greater efficiency.
Originality/value
To the authors’ knowledge, this is one of the rare papers that inspect the relationship between International market orientations and managerial assumptions as well as their effect on performance.
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Nadia Aslam and Umar Farooq Sahibzada
The study seeks to propose a linear model by applying complexity theory and resource-based theory to investigate how hotels achieve competitive advantage and organizational…
Abstract
Purpose
The study seeks to propose a linear model by applying complexity theory and resource-based theory to investigate how hotels achieve competitive advantage and organizational performance during the Covid-19 pandemic from the perspective of hotel leaders.
Design/methodology/approach
Using a standardized questionnaire and convenience sampling approach hotel managers and administrative employees were surveyed online. A total of 354 participants from five provinces in China were examined using Smart PLS and fsQCA 3.0 for analysis. The utilization of the asymmetric method facilitates the elucidation of relationships that may not be readily apparent when employing conventional symmetric approaches.
Findings
The results display a significant impact of transformational leadership (TL) on market orientation (MO), competitive advantage (CA) and organizational performance (OP). The results show numerous combinations using fsQCA that can be utilized to increase OP within the hotel industry.
Originality/value
At present, there is a lack of substantial empirical evidence to comprehensively investigate the impact of TL on MO, CA and OP in the field of hospitality research specifically in the context of the Covid-19. The study also contributes by providing an explanation of the factors that contribute to the development of a higher organizational performance base through TL, MO and CA during the Covid-19 pandemic.
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Muhammad Hafeez, Ida Yasin, Dahlia Zawawi, Shoirahon Odilova and Hussein Ahmad Bataineh
This study aims to investigate the effect of organizational ambidexterity (OA) and organizational green culture (OGC) on corporate sustainability (CS) while incorporating the…
Abstract
Purpose
This study aims to investigate the effect of organizational ambidexterity (OA) and organizational green culture (OGC) on corporate sustainability (CS) while incorporating the mediating role of green innovation (GI) to provide a detailed insight into CS. The study also presents a research framework based on the Organizational Ambidexterity theory and Natural Resource-based view to explain the factors contributing to CS.
Design/methodology/approach
Using stratified sampling, the study collected data through survey-based empirical research from 307 textile companies registered with the Securities and Exchange Commission of Pakistan (SECP) or the All-Pakistan Textile Mills Association (APTMA). The collected data were analysed using path analysis, mediation analysis and moderation analysis through smart PLS-SEM version 4.0 to assess the composition and causal association of factors.
Findings
The study found a significant relationship between OA and OGC with CS. Furthermore, the study revealed that green innovation partially mediates the relationship between OGC and CS. The proposed research framework can be valuable for promoting and recommending actions to enhance CS.
Research limitations/implications
The study on CS in the textile sector of Pakistan has limitations such as a narrow focus, cross-sectional design and reliance on self-reported data. Future research should explore additional factors, conduct longitudinal research, investigate contextual factors, scrutinize specific green innovation practices and broaden the scope of the study to include SMEs and other textile organizations.
Practical implications
The research framework can help senior executives to foster CS by promoting OGC, OA and GI. Practitioners and academicians can also utilize or further investigate the proposed framework for validation and to foster CS.
Originality/value
This study fills gaps in the existing literature by investigating the mediating effect of GI between OGC and CS. The proposed research framework provides a comprehensive understanding of the factors contributing to CS based on the Organizational Ambidexterity theory and Natural Resource-based view.
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Chinmaya Kumar Sahu and Rajeev Kumar Panda
Previous research has indicated that entrepreneurial marketing (EM) positively influences small and medium-sized enterprises’ (SMEs) performance. While most studies have examined…
Abstract
Purpose
Previous research has indicated that entrepreneurial marketing (EM) positively influences small and medium-sized enterprises’ (SMEs) performance. While most studies have examined the relationship in a stable environment, EMs’ effectiveness during environmental instability remains uncertain. Therefore, the study aims to investigate the influence of EM on Indian manufacturing-based SMEs’ performance during the COVID-19-induced environmental instability. Additionally, it explores the mediating role of innovative performance in the relationship between EM and SME performance.
Design/methodology/approach
The data were collected by distributing a structured survey questionnaire to 302 owners/managers of SMEs. Hypotheses were tested using structural equation modeling (SEM).
Findings
The result indicates that EM significantly impacts both innovation and SME performance. Furthermore, the innovative performance partially mediates the link between EM and SME performance. The findings suggest that even within severely affected sectors (manufacturing) during the pandemic, SMEs can achieve growth and innovation through effective EM practices.
Research limitations/implications
This study validates the theoretical notion that EM remains effective even in unpredictable environments such as the COVID-19 pandemic. The findings offer valuable insights for SMEs seeking innovative strategies to enhance their performance, particularly those in emerging economies.
Originality/value
Prior studies have relied on a single layer of abstraction to analyze the impact of EM. The present study is the first to extend standard construct (EM) conceptualization. Furthermore, it evaluated the efficiency of EM in situations characterized by instability, which is rare in the EM and SME literature.
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Syed Quaid Ali Shah, Fong Woon Lai, Muhammad Tahir, Muhammad Kashif Shad, Salaheldin Hamad and Syed Emad Azhar Ali
Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in…
Abstract
Purpose
Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role.
Design/methodology/approach
The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique.
Findings
The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan.
Practical implications
Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE.
Originality/value
The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.
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Mohd Hafiz Hanafiah, Norol Hamiza Zamzuri, Tengku Intan Suzila Tengku Sharif and Bung-on Chartrungruang
This study aims to investigate the Malaysian Mah Meri Indigenous tourism entrepreneur’s personality, experience, sense of community traits and current challenges in…
Abstract
Purpose
This study aims to investigate the Malaysian Mah Meri Indigenous tourism entrepreneur’s personality, experience, sense of community traits and current challenges in community-based tourism (CBT)-related businesses.
Design/methodology/approach
Semi-structured interviews were conducted to gather data from 10 Indigenous tourism entrepreneurs. Data were analysed using the NVivo 11 software.
Findings
The qualitative content analysis found three broad themes. Firstly, the authors found that the Mah Meri community possesses unique self-efficacy personality characteristics, significantly predicting their unsustainable entrepreneurial behaviours. Secondly, they are willing to share their values, beliefs and interests in their business offerings, which reflect their sense of community. Even with considerable entrepreneurial experience through learning from local wisdom and upskilling efforts by the government, the authors found that the community limitation mainly concerns the lack of early education, uninventive entrepreneurship practices and financial assistance.
Practical implications
This study provides an improved understanding of the Indigenous business environment for policymakers and Indigenous entrepreneurs. We found entrepreneurial personality, experience, sense of community determine and structure their CBT entrepreneurial activities.
Originality/value
This study provides a new perspective on Indigenous tourism entrepreneurs’ personalities, experiences, sense of community traits and challenges. The study also suggests encouraging sustainable Indigenous entrepreneurship practices for economic development, self-determination and community sustainability.
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