Search results
1 – 10 of over 11000Honest F. Kimario and Leonada R. Mwagike
This study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in…
Abstract
Purpose
This study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in Tanzania.
Design/methodology/approach
A parallel, concurrent, mixed method was used in the study. Quantitatively, 52 firms were surveyed from Temeke Municipality, Tanzania, using questionnaire that specified 1 procurement manager and 1 store manager from those firms, totaling a sample size of 104 respondents. Qualitatively, expressive opinions to supplement the numeric data were gathered from supply chain managers using the saturation principle. Explanatory design analyzed the existing cause–effect relationship, and the null hypotheses were tested using binary logistic regression at p values < 0.05 and ExpB > 1.
Findings
Fidelity and enthusiasm to suggest improvements to suppliers and the duration of the collaboration antecede the procurement performance of the manufacturing firms in Tanzania, while devotion to invest resources and initiatives on joint problem solving have no significant impact.
Research limitations/implications
The causality between buyer–supplier collaboration and procurement performance has been revealed. Since there might be third party logistics in collaborations, future research should center on their moderating effect.
Practical implications
A framework has been developed for liberating procurement performance in the context of large manufacturing firms in Tanzania.
Originality/value
Based on Transaction Cost Economics and Resource Dependency Theories, the study revealed the root cause of procurement performance in the context of Tanzanian manufacturing firms, while also considering commitment to buyer–supplier collaboration as a prerequisit for the commendable target.
Details
Keywords
Muhammad Tahir and Muhammad Mumtaz Khan
The MENA region is very rich in terms of natural resources. At the same time, the MENA region has also been a victim of terrorism during the last few years. This study is an…
Abstract
Purpose
The MENA region is very rich in terms of natural resources. At the same time, the MENA region has also been a victim of terrorism during the last few years. This study is an attempt to investigate whether there is any relationship between natural resources and terrorism in the MENA region.
Design/methodology/approach
We have focused on 15 resource-rich countries located in the MENA region for the period 2002–2019. We have applied appropriate econometric techniques and have also controlled for other dominant determinants of terrorism while studying the relationship between these two variables.
Findings
The results provide solid evidence in favor of the hypothesis that natural resources encourage terrorism. We find that natural resources have positively impacted terrorism. Besides, the natural resources, other factors such as per capita GDP, trade openness, political stability, domestic investment and government expenditures have negatively impacted terrorism. Moreover, the findings suggest that FDI and corruption are irrelevant in explaining terrorism while the findings regarding employment level and terrorism are unexpected. The obtained results are robust to alternative estimating methodologies.
Practical implications
The results have serious policy implications for the MENA region. The MENA region in general is suggested to devise appropriate policies regarding their huge natural resources so as to tackle the terrorism problem effectively. Similarly, paying favorable attention to trade liberalization, political stability, government expenditures, investment, rising income of the population in the presence of macroeconomic stability in the form of lower inflation would also help the MENA region to eradicate the problem of terrorism.
Originality/value
The available literature has largely ignored the role of natural resources in explaining the problem of terrorism. Therefore, this study has provided relatively new evidence regarding the determinants of terrorism.
Details
Keywords
Based on the theory of performance feedback, this study aims to explore the theoretical relationship between performance shortfalls and the financialization of non-financial…
Abstract
Purpose
Based on the theory of performance feedback, this study aims to explore the theoretical relationship between performance shortfalls and the financialization of non-financial enterprises. It further analyzes the moderating effect of economic policy uncertainty (EPU) and organizational redundant resources.
Design/methodology/approach
Multiple regression analysis is used on 16,555 initial samples of 2,658 Chinese A-share issuing enterprises from 2007 to 2019 to empirically test the relationship between performance shortfalls and the financialization of non-financial enterprises, and an instrumental variables-generalized moments estimation model is also used to verify the robustness of the results.
Findings
The results reveal that the greater the performance gap below the aspiration level, the higher the degree of enterprise financialization. Moreover, EPU strengthens the relationship between performance shortfalls and financialization, whereas organizational redundant resources weaken the relationship between performance shortfalls and financialization.
Practical implications
Decision-makers should determine the aspirated performance level of enterprises to make investment decisions that are most conducive to the long-term development of enterprises. Each enterprise should establish scientific management evaluation and supervision systems to avoid financial investment behaviors that place too much emphasis on short-term performance.
Originality/value
This study finds that financialization is one of the reactions when performance of enterprises is lower than the aspiration level, thus expanding the functional dimensions of performance feedback and supplementing the research on the influencing factors of enterprise financialization. The results also reveal information about situational factors, helping identify the boundary conditions through which performance below aspirations affects enterprise financialization.
Details
Keywords
Redhwan Al-Dhamari, Hamid Al-Wesabi, Omar Al Farooque, Mosab I. Tabash and Ghaleb A. El Refae
The purpose of this study is to empirically examine how the voluntary formation of a specialised investment committee (IC) and IC characteristics affect financial distress risk…
Abstract
Purpose
The purpose of this study is to empirically examine how the voluntary formation of a specialised investment committee (IC) and IC characteristics affect financial distress risk (FDR) and whether such impact is influenced by the level of investment inefficiency.
Design/methodology/approach
The authors use a large sample of Gulf Cooperation Council (GCC) non-financial companies during 2006–2016. A principal component analysis is done to aggregate and derive a factor score for IC characteristics (i.e. independence, size and meeting) as a proxy for the effectiveness of IC. This study also uses three measurements of FDR to corroborate the findings and partitions sample firms into overinvesting and underinvesting companies to examine the potential impact of investment inefficiency on the IC–FDR nexus.
Findings
Using feasible generalised least square estimation method, the authors document that the likelihood of financial distress occurrence decreases for firms with separate ICs. The authors also find that firms with effective ICs enjoy lower FDR. In other words, the probability of financial distress minimises if the IC is large, meets frequently and has a high number of independent directors. However, the authors find neither any moderation nor any mediation effect of investment inefficiency for the impact of IC and IC attributes on FDR. The additional analysis indicates the expected benefits of an actively performing IC are amplified for firms with risk of both over- and underinvestment. These findings are robust to alternative measures of FDR and investment inefficiency, sub-sample analysis and endogeneity concerns.
Originality/value
This study, to the best of researchers’ knowledge, is the first to provide evidence in GCC firms’ perspective, suggesting that the existence of an effective IC is associated with a lower risk of financial distress, and to some extent, the economic benefits of IC are aggrandised for companies with a high probability of over- and underinvestment problems. These results are unique and contribute to a small but growing body of literature documenting the need for effective ICs and their economic consequences on investment efficiency in the FDR environment. The findings of this study carry valuable practical implications for regulatory bodies, policymakers, investors and other interested parties in the GCC region.
Details
Keywords
Ahmad Al-Hiyari, Abdussalaam Iyanda Ismail, Mohamed Chakib Kolsi and Oyewumi Hassan Kehinde
This paper aims to explore whether environmental, social and governance (ESG) performance is positively associated with firm investment efficiency (IE) in emerging economies. It…
Abstract
Purpose
This paper aims to explore whether environmental, social and governance (ESG) performance is positively associated with firm investment efficiency (IE) in emerging economies. It also examines whether board cultural diversity can moderate the ESG–IE relationship.
Design/methodology/approach
This paper uses a cross-country sample of listed firms located in seven emerging countries over the 2011–2019 period. The authors use a fixed effect panel regression to empirically test the hypotheses. The authors also use a lagged model and a Heckman’s (1979) two-stage procedure to mitigate potential endogeneity issues. In addition, a two-stage least squares regression analysis was done as an additional robustness check.
Findings
This study finds that firms with stronger ESG performance have a higher investment efficiency. Interestingly, this study finds that board cultural diversity negatively moderates the impact of ESG performance on IE for firms operating in settings prone to overinvestment. This result suggests that ESG performance plays a less important role in mitigating managers' tendencies to overinvest when corporate boards have more foreign directors. However, the authors do not find such evidence in firms prone to underinvestment. These findings hold after using an alternative measure of IE and controlling for endogeneity concerns.
Originality/value
This paper adds to the existing body of knowledge in three dimensions. First, to the best of the authors’ knowledge, this is the first cross-country study that investigates the linkage between ESG performance and corporate IE in the context of emerging countries. Second, the authors have enriched the prior literature by examining the moderating effect of board cultural diversity on the positive association between ESG performance and corporate IE. Finally, this study has important implications for policymakers and capital suppliers in emerging countries, which strive to facilitate the efficient allocation of scarce resources.
Details
Keywords
Marcellin Makpotche, Kais Bouslah and Bouchra M’Zali
This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.
Abstract
Purpose
This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.
Design/methodology/approach
The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and development (R&D). The authors argue that agency costs and financial market frictions affect corporate investment and are fundamental factors in R&D activities. By limiting agency conflicts, effective governance favors efficiency, facilitates access to external financing and encourages green innovation. The authors analyzed the causal effect by using the system-generalized method of moments (system-GMM).
Findings
The results reveal that the better the corporate governance, the more the firm invests in green R&D. A 1%-point increase in the corporate governance ratings leads to an increase in green R&D expenses to the total asset ratio of about 0.77 percentage points. In addition, an increase in the score of each dimension (strategy, management and shareholder) of corporate governance results in an increase in the probability of green product innovation. Finally, green innovation is positively related to firm environmental performance, including emission reduction and resource use efficiency.
Practical implications
The findings provide implications to support managers and policymakers on how to improve sustainability through corporate governance. Governance mechanisms will help resolve agency problems and, in turn, encourage green innovation.
Social implications
Understanding the impact of corporate governance on green innovation may help firms combat climate change, a crucial societal concern. The present study helps achieve one of the precious UN’s sustainable development goals: Goal 13 on climate action.
Originality/value
This study goes beyond previous research by adopting Tobin’s Q model to examine the relationship between corporate governance and green R&D investment. Overall, the results suggest that effective corporate governance is necessary for environmental efficiency.
Details
Keywords
Egemen Sertyesilisik and Mehmet Akif Ceylan
Water resources play a significant role in economic growth and socio-economic development. Jordan experiences water scarcity. As the water resources can be used in manufacturing…
Abstract
Water resources play a significant role in economic growth and socio-economic development. Jordan experiences water scarcity. As the water resources can be used in manufacturing and agriculture, their sustainable use and solutions to water scarcity problem can contribute to the sustainable economic and socio-economic development in Jordan. Furthermore, there are political and economic aspects of Jordan’s water scarcity. Jordan is trying to solve its water scarcity problem through projects. Based on an in-depth literature review, this chapter aims to investigate Jordan’s water scarcity problem, highlighting its political and economic aspects and their impacts on socio-economic development, and to propose solutions to the water scarcity problem in Jordan. Water is vital for economic development and political stability in Jordan. It is important for Jordan to use its water resources in an efficient, effective and sustainable way so that socio-economic development of Jordan can be supported. Unsustainable use of water resources can cause depletion of Jordan’s scarce water resources, which can exacerbate magnitude of water resource problem and hinder socio-economic development. This chapter can be beneficial to economists, politicians and academics.
Details
Keywords
Wenqing Wu, Pianpian Zhang and Sang-Bing Tsai
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler…
Abstract
Purpose
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler of collaborative innovation. These studies, however, are mainly based on theoretical analysis and case studies, and little is empirically known about the relationship between IT investments and collaborative innovation. Therefore, the purpose of this study is to empirically explore how firms' IT investments affect the firms' collaborative innovation performance. The authors also examine the moderating roles of the top management team's (TMT's) educational background and absorptive capacity in this relationship.
Design/methodology/approach
The authors collected data on 2,097 listed Chinese manufacturing companies and used the ordinary least squares (OLS) method to perform regression analysis. In addition, the authors conducted robustness tests using the propensity score matching (PSM) method and the instrumental variable method.
Findings
The results show that the relationship between IT investments and collaborative innovation is inverted, U-shaped and curvilinear. In addition, the TMT's educational background and absorptive capacity positively moderate the inverted U-shaped relationship between IT investments and collaborative innovation.
Originality/value
The study's findings on the relationship between IT investments and collaborative innovation differ from previous mainstream findings that recognized a positive linear relationship. The authors' findings deepen the understanding of the dual role of IT investments. Moreover, this research helps expand the contingency perspective in IT investments and collaborative innovation research.
Details