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Article
Publication date: 14 April 2023

Masculine Muhammad Muqorobin, Utpala Rani and Alex Johanes Simamora

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Abstract

Purpose

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Design/methodology/approach

Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression.

Findings

The result shows that risk management committee moderates the effect of risk-taking behavior on companies’ performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies’ performance.

Originality/value

This research contributes to fill the previous gap of risk-taking behavior and companies’ performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 29 September 2022

Johnny Jermias and Fatih Yigit

The purpose of this study is to investigate the moderating roles of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

Abstract

Purpose

The purpose of this study is to investigate the moderating roles of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

Design/methodology/approach

This study adopts an empirical method using data from firms listed in both the Compustat S&P500 and Boardex for the period 2010 to 2019 to analyze the effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance.

Findings

The authors find that financial slack is positively related to performance, and this relation is stronger as innovation intensity increases. Furthermore, we demonstrate that lenders’ monitoring strengthens the positive relationship between financial slack and performance.

Research limitations/implications

First, this study focuses on the effects of financial slack, research and development (R&D) intensity and lenders’ monitoring on financial performance. Future research might extend this study by investigating the effects of these variables on non-financial performance. Second, the data and results do not provide insights into the reasons for firms to accumulate financial slack. Future research might conduct a longitudinal field study to understand why firms build financial slack. Finally, this study only uses R&D intensity and lenders’ monitoring as the moderating variables. Future studies might incorporate other contingency variables such as firms’ budgeting and budget-based compensation systems to provide useful insights into the relationship between financial slack and performance.

Practical implications

This study provides important insights into the value of financial slack for firms that invest heavily in R&D activities. This study also provides useful insight into the benefits of lenders’ monitoring to mitigate managers’ unethical behavior.

Social implications

This study provides useful insights for companies that invest heavily in innovation activities by showing that financial slack is beneficial for this company and lenders’ monitoring is needed to discipline managers in using the slack resources.

Originality/value

This study is the first to investigate the moderating effects of innovation intensity and lenders’ monitoring on the relation between financial slack and performance. Previous studies focus their investigations on the direct effect of financial slack and performance.

Details

Journal of Accounting & Organizational Change, vol. 19 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 17 November 2023

Shuchuan Hu, Qinghua Xia and Yi Xie

This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how…

Abstract

Purpose

This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how product market competition moderates this relationship.

Design/methodology/approach

This research tests the hypotheses using the fixed effects model based on panel data of publicly listed enterprises in China from 2007–2020.

Findings

The empirical results validate the positive association between trade disputes and corporate research and development (R&D) intensity as well as the U-shaped relationship between trade disputes and radical innovation. Additionally, the moderating effect of product market competition is verified: a concentrated market with less competition flattens the U-shaped curve of radical innovation induced by trade disputes; as the market becomes more concentrated and less competitive, the U-shaped relationship eventually turns into an inverted U.

Originality/value

First, this study contributes to the corporate innovation and trade dispute literature by expanding the environmental antecedents of technological innovation and the firm-level consequences of trade disputes. Second, this study enriches the theoretical framework of the environment–innovation link through an integrated perspective of contingency theory and dynamic capabilities view. Third, instead of the traditional linear mindset which had led to contradictory results, this study explores a curvilinear effect in the environment–innovation relationship.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 18 January 2024

Se Ho Cho and John Cantwell

The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

Abstract

Purpose

The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

Design/methodology/approach

The authors examine the research model through probit regression techniques to the 472,303-patent data across 16 industries derived from the United States Patent and Trademark Office.

Findings

The results suggest that international connectedness increases the accessibility of foreign knowledge and helps the accumulation of technological capability. Thus, this paper provides a better understanding that international connectedness can be critical for exploiting knowledge dispersed worldwide and influencing intra- and interindustry knowledge-sourcing behavior in the home country.

Originality/value

While prior studies have mainly paid attention to the relationship between parents and subsidiaries in foreign countries for international knowledge sourcing, the authors attempt to analyze international and local knowledge sourcing with a broader set of knowledge sourcing channels at an aggregate level. By considering an industry’s export intensity and inward foreign direct investment, this study reveals specifically how the extent of an industry’s international connectedness influences knowledge sourcing from both abroad and locally.

Article
Publication date: 7 February 2023

Dung Tien Luu

This study proposes a logic to enable strategic entrepreneurship for export firms through absorptive capacity and adaptive culture to capitalise on the knowledge intensity from…

Abstract

Purpose

This study proposes a logic to enable strategic entrepreneurship for export firms through absorptive capacity and adaptive culture to capitalise on the knowledge intensity from internationalisation.

Design/methodology/approach

The study sample comprises 422 key role employees at 98 export firms in Ho Chi Minh City, Vietnam. The data are analysed using a structural equation model.

Findings

The results reveal that the firm's knowledge intensity may serve as a reservoir, absorbing and reconciling knowledge acquired from internationalisation and redistributing it to strategic entrepreneurship. A firm's absorptive capacity and adaptive culture can act as buffers, allowing internationalisation knowledge to permeate and transfer to administrative bodies and fostering strategic entrepreneurship.

Originality/value

This study proposes an integrated model of the relationship between the degree of internationalisation and strategic entrepreneurship through novel lenses of knowledge-based perspective with the organisational capabilities.

Details

Journal of Small Business and Enterprise Development, vol. 30 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 12 January 2023

Gimede Gigante, Andrea Cerri and Giuseppe Leone

This research investigates the effect of mergers and acquisition (M&A) transactions in the pharmaceutical sector. The study assesses the short-term value creation or destruction…

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Abstract

Purpose

This research investigates the effect of mergers and acquisition (M&A) transactions in the pharmaceutical sector. The study assesses the short-term value creation or destruction for shareholders of pharmaceutical companies involved in M&A activities on the acquiring side.

Design/methodology/approach

The empirical analysis is carried out by applying the event study methodology in order to define the cumulative abnormal return for each transaction observed. Then, the correlations between abnormal returns and economic metrics are determined building a multiple regression model. These metrics refers to the acquirer, target or to the deal itself.

Findings

Evidence show a short-term value creation for shareholders of pharmaceutical companies involved in M&A transactions on the acquiring side. On the one hand, the analysis suggests a negative correlation between the value creation and the acquiring firm's level of indebtedness. On the other hand, the value creation is positively correlated with target's metrics such as Return on Equity (ROE), Return on Assets (ROA) and Research and Development (R&D) intensity. Value creation is also tied to deal-specific characteristics regarding the cash used in the transaction and the comparative extent of the deal.

Practical implications

This analysis allows to predict returns around an announcement day considering the described indicators of value creation or destruction. M&As play a key role in the strategy implementation as reaction to exogenous shocks and endogenous needs.

Originality/value

This study enriches the literature of corporate finance applied to the pharmaceutical sector. Indeed, this industry is gaining increasing relevance in the M&A panorama. Thus, the related dynamics need to be assessed considering the uniqueness of the pharmaceutical sector in terms of regulation, stakeholders and social impact.

Details

Managerial Finance, vol. 49 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 9 January 2024

Joanne Wright, Antje Fiedler and Benjamin Fath

Small and medium-sized enterprises (SMEs) use networks to overcome knowledge deficiencies in pursuing innovation. However, balancing the cost and risk of growing networks…

Abstract

Purpose

Small and medium-sized enterprises (SMEs) use networks to overcome knowledge deficiencies in pursuing innovation. However, balancing the cost and risk of growing networks, especially internationally, with potential gains in knowledge remains a critical challenge. Searching for innovation knowledge in international and domestic networks can be complementary when learning is compressed or as competing when the SMEs capacity to use the new knowledge is exceeded. This paper aims to investigate whether knowledge searches in domestic and international networks are complementary or conflicting in pursuit of innovation.

Design/methodology/approach

This study is based on firm-level data set comprising 426 SMEs located in New Zealand, an advanced small and open economy. Using multi-level modelling, this study tests competing hypotheses, asking whether domestic and international network searches are complements or substitutes when seeking ambidexterity.

Findings

The research finds that, in contrast to earlier research, which shows increasing network breadth drives innovation activity, SMEs benefit less from knowledge search across combined domestic and international networks for exploration innovation and ambidexterity. In contrast, exploitation shows no effect, suggesting that combined networks could support exploitation.

Originality/value

This paper highlights how SMEs mitigate the influence resource constraints have on the partnerships they form and how this translates to ambidexterity. Specifically, recognising that an opportunistic approach to network development may impose future constraints on SME ambidexterity. From a management perspective, the paper recognises that balancing knowledge search across domestic and international networks can facilitate ambidexterity; however, to prevent spreading resources too thinly, this likely requires exit from early domestic innovation network partnerships.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 8 February 2023

Hongjuan Tang, Yu Xie, Yunqing Liu and Francis Boadu

Despite the support of digital technology, there is a high degree of ambiguity and fluidity in the boundaries of digital products. This is because the addition of distributed…

Abstract

Purpose

Despite the support of digital technology, there is a high degree of ambiguity and fluidity in the boundaries of digital products. This is because the addition of distributed innovation entities has an impact on the scope and scale of digital product innovation. Building upon the knowledge orchestration perspective, this study aims to construct a theoretical model, comprising distributed innovation, knowledge reorchestration and digital product innovation performance, and discuss the moderating roles of intellectual property protection and knowledge exchange activities.

Design/methodology/approach

Using a sample of 362 Chinese science and technology enterprises, the scholarship’s framework and hypotheses were tested using regression and bootstrap analysis.

Findings

The results confirm that distributed innovation positively enhances enterprises’ digital product innovation performance; knowledge reorchestration plays a partial mediating role in the linkage amongst distributed innovation and digital product innovation performance; and intellectual property protection and knowledge exchange activities negatively and positively moderate the mediating role of knowledge reorchestration amongst distributed innovation and digital product innovation performance, respectively.

Originality/value

This empirical scholarship explores the effect mechanism of intellectual property protection, knowledge exchange activities and knowledge reorchestration on the linkage amongst distributed innovation and digital product innovation performance. This paper expands the theoretical application of distributed innovation, knowledge orchestration and other related theories in the context of the digital economy and further provides a policymaking reference for the improvement of enterprises’ digital product innovations.

Details

Journal of Knowledge Management, vol. 27 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

Content available
Book part
Publication date: 19 July 2023

Abstract

Details

Inclusive Developments Through Socio-economic Indicators: New Theoretical and Empirical Insights
Type: Book
ISBN: 978-1-80455-554-5

Article
Publication date: 21 August 2023

Md Aktar Kamal, Souman Guha, Noor Nahar Begum and Md Abu Taher

The purpose of the study was to examine the factors that are important for strengthening university–industry collaboration (UIC). This study also investigates the outcome of UIC…

Abstract

Purpose

The purpose of the study was to examine the factors that are important for strengthening university–industry collaboration (UIC). This study also investigates the outcome of UIC in the light of creativity, skill, knowledge, and research work.

Design/methodology/approach

A survey method has been used to collect data for the study. This study applied a purposive judgmental sampling technique where particular types of respondents like university faculty members and the top officials of the organizations were selected who are knowledgeable and can provide the desired information. The current study used the structural equation modeling method to analyze the data. In the first stage, this research assessed the demographic factors of the respondent. Then this study conducts confirmatory factors analysis and convergent and discriminant validity and reliability test. Finally, the hypotheses are tested by using nonparametric.

Findings

This study finds that knowledge transfer mechanism, governmental factors, organizational design factors, technology transfer and the collaborative network has a significant impact on strengthening UIC, which ultimately facilitates creativity, knowledge creation, skills development and supply of graduate according to the requirement of the industry, good research work.

Originality/value

The current study identified some important determinant that has a substantial influence on strengthening UIC. According to the study organizational design, government, technology, collaborative network and mechanism for knowledge transfer play very crucial roles in strengthening collaboration that ultimately increases the creativity, skills, knowledge and research capability of graduates.

Details

Higher Education, Skills and Work-Based Learning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-3896

Keywords

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