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1 – 10 of 69Nan Hu, Rong Huang, Xu Li and Ling Liu
Existing literature in experimental accounting research suggests that accounting professionals and people with accounting backgrounds tend to have a lower level of moral reasoning…
Abstract
Purpose
Existing literature in experimental accounting research suggests that accounting professionals and people with accounting backgrounds tend to have a lower level of moral reasoning and ethical development. Motivated by these findings, this paper aims to examine whether chief executive officers (CEOs) with accounting backgrounds have an impact on firms’ earnings management behavior and the level of accounting conservatism.
Design/methodology/approach
The authors classify CEOs into those with and without accounting backgrounds using BoardEx data. Using discretionary accruals from several different models, they do not find that CEOs with accounting backgrounds are more likely to engage in income-increasing accruals. However, the authors find that CEOs with accounting backgrounds exhibit lower levels of conservatism, proxied by C-scores and T-scores (Basu, 1997). This finding suggests that CEOs with accounting backgrounds recognize bad news more quickly than good news, consistent with the accounting principle of “anticipating all losses but anticipating no gains”.
Findings
The authors show that firms whose CEOs have accounting backgrounds exhibit lower levels of accounting conservatism. However, these firms do not exhibit higher levels of income-increasing discretionary accruals. This study documents the impact of CEOs’ educational backgrounds on firms’ accounting choices and confirms prior findings in experimental accounting research using large sample archival data.
Originality/value
This paper is the first study that investigates the impact of CEOs’ accounting backgrounds on firms’ financial reporting policy. The findings may have some policy implications. If accounting backgrounds of CEOs can make a significant difference on firms’ behavior, it is reasonable to make CEOs accountable for the quality of financial reporting. This paper is one of the first to empirically test inferences drawn by experimental accounting research. There has been a gap between archival and experimental accounting studies. The authors propose that interesting research questions can be addressed by filling in such a gap.
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Wen-Hong Chiu, Zong-Jie Dai and Hui-Ru Chi
This study aims to explore how manufacturing firms master customer lock-in through value creation by servitization innovation strategies from the perspective of asset specificity.
Abstract
Purpose
This study aims to explore how manufacturing firms master customer lock-in through value creation by servitization innovation strategies from the perspective of asset specificity.
Design/methodology/approach
A multiple case study with triangulation fashion is adopted to identify servitization innovation strategies. Several manufacturing firms were investigated, which are distributed in different positions of the value chain. Content analysis and abductive approaches are adopted to analyze the data. Moreover, an in-depth interview and participatory observation were conducted to refine the analysis results.
Findings
This study identified four different focusing points of servitization operations. Based on these, the paper further induces an innovative servitization strategy matrix of customer lock-in, concerning communion, intellectual, existential and insubstantial strategies. Furthermore, a conceptual model of customer lock-in by servitization innovation from the perspective of asset specificity is elaborated. It is suggested that companies can use tangible or intangible resources by sharing or storing operations to create servitization value.
Originality/value
This study theoretically proposes a conceptual model to extend servitization innovation as an intangible asset and adopt the new perspective of asset specificity to illustrate the value creation in servitization to generate customer lock-in.
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Zhenlong Peng, Aowei Han, Chenlin Wang, Hongru Jin and Xiangyu Zhang
Unconventional machining processes, particularly ultrasonic vibration cutting (UVC), can overcome such technical bottlenecks. However, the precise mechanism through which UVC…
Abstract
Purpose
Unconventional machining processes, particularly ultrasonic vibration cutting (UVC), can overcome such technical bottlenecks. However, the precise mechanism through which UVC affects the in-service functional performance of advanced aerospace materials remains obscure. This limits their industrial application and requires a deeper understanding.
Design/methodology/approach
The surface integrity and in-service functional performance of advanced aerospace materials are important guarantees for safety and stability in the aerospace industry. For advanced aerospace materials, which are difficult-to-machine, conventional machining processes cannot meet the requirements of high in-service functional performance owing to rapid tool wear, low processing efficiency and high cutting forces and temperatures in the cutting area during machining.
Findings
To address this literature gap, this study is focused on the quantitative evaluation of the in-service functional performance (fatigue performance, wear resistance and corrosion resistance) of advanced aerospace materials. First, the characteristics and usage background of advanced aerospace materials are elaborated in detail. Second, the improved effect of UVC on in-service functional performance is summarized. We have also explored the unique advantages of UVC during the processing of advanced aerospace materials. Finally, in response to some of the limitations of UVC, future development directions are proposed, including improvements in ultrasound systems, upgrades in ultrasound processing objects and theoretical breakthroughs in in-service functional performance.
Originality/value
This study provides insights into the optimization of machining processes to improve the in-service functional performance of advanced aviation materials, particularly the use of UVC and its unique process advantages.
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Temitayo Seyi Abiodun, Giselle Rampersad and Russell Brinkworth
The internationalization of business has grown the production value chains and created performance challenges for industrial production. Industry 4.0, the digital transformation…
Abstract
Purpose
The internationalization of business has grown the production value chains and created performance challenges for industrial production. Industry 4.0, the digital transformation of industrial processes, promises to deliver performance improvements through smart functionalities. This study investigates how digital transformation translates to performance gain by adopting a systems perspective to drive smartness.
Design/methodology/approach
This study uses qualitative research to collect data on the lived experiences of digital transformation practitioners for theory development. It uses semi-structured interviews with industry experts and applies the Gioia methodology for analysis.
Findings
The study determined that enterprise smartness is an organizational capability developed by digital transformation, it is a function of integration and the enabler of organizational performance gains in the Industry 4.0 context. The study determined that performance gains are experienced in productivity, sustainability, safety and customer experience, which represents performance metrics for Industry 4.0.
Research limitations/implications
This study contributes a model that inserts smartness in the linkage between digital transformation and organizational outcomes to the digital transformation and production management literature.
Practical implications
The study indicates that digital transformation programs should focus on developing smartness rather than technology implementations, which must be considered an enabling activity.
Originality/value
Existing studies recognized the positive impact of technology on performance in industrial production. The study addresses a missing link in the Industry 4.0 value creation process. It adopts a systems perspective to establish the role of smartness in translating technology use to performance outcomes. Smart capabilities have been the critical missing link in the literature on harnessing digital transformation in organizations. The study advances theory development by contributing an Industry 4.0 value model that establishes a link between digital technologies, smartness and organizational performance.
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Cathy Zishang Liu, Xiaoyan Sharon Hu and Kenneth J. Reichelt
This paper empirically examines whether the order of liability and preferred stock accounts presented on the balance sheet is consistent with how the stock market values their…
Abstract
Purpose
This paper empirically examines whether the order of liability and preferred stock accounts presented on the balance sheet is consistent with how the stock market values their riskiness.
Design/methodology/approach
This paper measures a firm’s riskiness with idiosyncratic risk and employs the first-difference design to test the relation between idiosyncratic risk and the order of current liabilities, noncurrent liabilities and preferred stock, respectively. Further, the paper tests whether operating liabilities are viewed as riskier than financial liabilities. Finally, the authors partition their sample based on the degree of financial distress and investigate whether the results differ between the two subsamples.
Findings
The paper finds that current liabilities are viewed as riskier than noncurrent liabilities and preferred stock is viewed as less risky than current and noncurrent liabilities, consistent with the ordering on the balance sheet. Further, the paper finds that operating liabilities are viewed as riskier than financial liabilities. Finally, the authors find that total liabilities and preferred stock (redeemable and convertible classes) are viewed as riskier for distressed firms than for nondistressed firms.
Originality/value
The authors thoroughly investigate the riskiness of several classes of claims and document that the classification of liabilities and preferred stock classes is relevant to common stockholders for assessing their associated risk.
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Vera Rebiazina, Elena Sharko and Svetlana Berezka
The paper aims to reveal the impact of relationship marketing (RM) practices adopted by companies in emerging markets on their market and financial performance (FP) over a…
Abstract
Purpose
The paper aims to reveal the impact of relationship marketing (RM) practices adopted by companies in emerging markets on their market and financial performance (FP) over a long-term, 13-year perspective.
Design/methodology/approach
The research design combines primary empirical data from 229 Russian companies, based on the Contemporary Marketing Practices (CMP) survey, and objective FP data from official statistical databases for 2008–2020 to verify the impact of RM practices on market and FP in the long term.
Findings
The research underlines the significant impact of RM practices. It is important to notice that the effect of product development (PD) on marketing performance is mediated by competitor orientation. PD affects market and FP, whose roles vary with the return on assets (ROA).
Research limitations/implications
Research design supplements the subjective survey data with the objective FP data on the ROA to avoid common method bias.
Practical implications
Implementation of RM practices by Russian companies can increase their effectiveness of performance in the long term.
Originality/value
This research shows the positive impact of RM practices on the FP of Russian firms over the past 13 years.
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Mira Timperi, Kirsi Kokkonen, Lea Hannola and Kalle Elfvengren
Digital twins (DTs) and other data-based solutions are gaining an increasing foothold in manufacturing business, whereas a mere physical product is often insufficient to satisfy…
Abstract
Purpose
Digital twins (DTs) and other data-based solutions are gaining an increasing foothold in manufacturing business, whereas a mere physical product is often insufficient to satisfy all customers’ expectations. As a result, companies are seeking novel ways of value creation, and one exciting opportunity is the use of DTs in new business creation, where they can offer diverse possibilities for innovative businesses. This paper aims to examine the impacts and challenges of DTs on new business creation in the manufacturing industry.
Design/methodology/approach
This study used a qualitative research approach, which combined semistructured interviews and an iterative Delphi study as research methods. The participants for the interviews and Delphi study were from different sectors and roles in the manufacturing industry. Altogether, 10 interviewees from eight companies took part in the interviews, and the expert panel of the Delphi method contained 12 professionals.
Findings
The results of the study indicated that DT can significantly impact the business models of manufacturing companies. DT can enhance operations, offer cost savings and business growth and allow stakeholders to focus on core competencies while developing their businesses. Several challenges for leveraging DT were identified, such as data ownership, resource allocation, internal bureaucracy and the difficulty of demonstrating the actual value of data-based services to potential customers.
Originality/value
This paper provides a structured expert-led assessment of the potential impacts of DT utilization in the creation of new business opportunities.
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