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Book part
Publication date: 22 August 2017

Stakeholders: Opportunity or Threat? Voices from China

Cubie L. L. Lau

China and the United States represent the two largest greenhouse gas emitters in the world. Studies on how US companies react to the natural environment are plentiful and…

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Abstract

China and the United States represent the two largest greenhouse gas emitters in the world. Studies on how US companies react to the natural environment are plentiful and show that stakeholders are one of the key drivers for green decisions. However, we have limited understanding of the stakeholder pressure faced by firms in China. Drawing on stakeholder theory, this study builds from in-depth interviews with 32 businesses in China. We show that government, customers, employees, suppliers, investors, and community are stakeholders most mentioned. Interestingly, findings also seem to suggest that the perceived pressures of non-profit organizations (NGOs) differ by the form of ownership. Multinational firms often view NGOs as allies, while Chinese firms downplay them as powerless and unimportant. Although stakeholders are seen as both threat and opportunity, two-thirds of those surveyed in this study focused on opportunity as opposed to threat.

Details

Modern Organisational Governance
Type: Book
DOI: https://doi.org/10.1108/S2043-052320170000012005
ISBN: 978-1-78714-695-2

Keywords

  • Corporate social responsibility
  • sustainability
  • environmental management
  • China
  • stakeholder theory

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Article
Publication date: 19 October 2015

Top executives’ compensation, industrial competition, and corporate environmental performance: Evidence from China

H. L. Zou, S. X. Zeng, H. Lin and X. M. Xie

The purpose of this paper is to empirically investigate how top executives’ compensation is associated with environmental performance in the Chinese context and how this…

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Abstract

Purpose

The purpose of this paper is to empirically investigate how top executives’ compensation is associated with environmental performance in the Chinese context and how this association varies with differing levels of industrial competition.

Design/methodology/approach

Combining agency and institutional theories, the empirical study is based on a sample of 698 publicly listed firms in China’s manufacturing sector.

Findings

The authors find that top executives’ cash pay has a positive association, and equity ownership a negative association, with corporate environmental performance. Furthermore, in more competitive industries, both pay and ownership are more strongly associated with environmental performance, indicating that industrial competition plays a moderating role in these relationships.

Practical implications

The findings imply that different incentive schemes can motivate executives toward environmental management in the Chinese context in opposite directions. They highlight the importance of improving regulation in order to motivate firms to engage in further environmental management.

Originality/value

Previous work on the relationship between executives’ compensation and socially responsible activities has mainly focussed on developed countries. This study is set in an emerging economy, and identifies new evidence to show that the effect of executive incentives is institutionally specific. In addition, it explores the effect of industrial competition on executives’ incentives to engage in environmental management, suggesting an explanation for the contradictory evidence found in previous research.

Details

Management Decision, vol. 53 no. 9
Type: Research Article
DOI: https://doi.org/10.1108/MD-08-2014-0515
ISSN: 0025-1747

Keywords

  • Executive compensation
  • Managerial shareholding
  • Environmental performance
  • Industrial competition

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Article
Publication date: 10 December 2020

Modelling the continuous innovation capability enablers in Indonesia’s manufacturing industry

Benny Lianto, Muhammad Dachyar and Tresna Priyana Soemardi

The purpose of this paper is to identify and screen continuous innovation capability enablers (CICEs) in Indonesia’s manufacturing sectors, develop a relationship among…

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Abstract

Purpose

The purpose of this paper is to identify and screen continuous innovation capability enablers (CICEs) in Indonesia’s manufacturing sectors, develop a relationship among these enablers and determine their driving power and dependence power in the sector.

Design/methodology/approach

The initial CICEs identification process is based on a literature review, while a fuzzy Delphi method (FDM) was used for the screening process of CICEs. Total interpretive structural modelling (TISM) was used to develop contextual relationships among various CICEs. The results of the TISM are used as an input for the matrix of cross-impact multiplications applied to classification (MICMAC) to classify the driving power and dependence powers of the CICEs.

Findings

This paper selected 16 CICEs classified in seven dimensions. TISM results and MICMAC analysis show that leadership, as well as climate and culture, are enablers with the highest driving power and lowest dependence powers; followed by information technology. The results of this study indicate that efforts to continuously develop innovation capabilities in the Indonesian manufacturing industries are strongly influenced by their leadership capability, climate and culture, also information technology-related capability.

Practical implications

The framework assessed in this study provides business managers and policymakers to obtain a bigger picture in developing policies with evidence-based strategy and priority in regard to continuous innovation capability.

Originality/value

The results will be useful for business managers and policymakers to understand the relationship between CICEs and identify key CICEs in Indonesia’s manufacturing sectors, which were previously non-existent.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JM2-04-2020-0103
ISSN: 1746-5664

Keywords

  • Innovation
  • Manufacturing
  • Fuzzy
  • Expert systems
  • Modelling
  • Innovation enablers
  • Continuous innovation capability
  • Indonesia

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Article
Publication date: 6 March 2009

Relationships between business factors and performance in internationalization: An empirical study in China

Saixing Zeng, X.M. Xie, C.M. Tam and T.W. Wan

While internationalization of firms can be a source of growth in profitability, it can also result in huge losses due to the risky internationalized environment. Success…

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Abstract

Purpose

While internationalization of firms can be a source of growth in profitability, it can also result in huge losses due to the risky internationalized environment. Success in the home countries does not guarantee success internationally. The objective of this study is to identify the main business factors affecting performance of firms in the process of internationalization.

Design/methodology/approach

Ten business factors have been selected to investigate their relationship with the business performance in the internationalization process of Chinese manufacturing firms. The ten business factors are transformed into four dimensions (principal factors) using the method of factor analysis. Using the categorical regression method, relationships between return on assets (ROA) and the four dimensions extracted are examined.

Findings

The findings reveal that marketing capability of firms plays the most important role in improving performance of firms that embrace internationalization.

Research limitations/implications

The study is confined to data collected from the Yangtze River Delta region via the method of survey, and it is generally agreed that China is a large market composed of distinctively different regional sectors, and there are significant differences in the level of development among the regions.

Practical implications

Performance of firms that embrace internationalization is affected by different business factors. If these factors could be identified, it would be possible to engineer the performance of firms.

Originality/value

From a political perspective, the research provides a better understanding on how to improve the internationalization performance for firms, which do not have such experience in the emerging economies.

Details

Management Decision, vol. 47 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/00251740910938939
ISSN: 0025-1747

Keywords

  • International business
  • Manufacturing industries
  • Performance management
  • Factor analysis
  • China

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Article
Publication date: 7 August 2017

Identifying the factors determining cooperative innovation effect in emerging economies: Evidence from Chinese firms

Xuemei Xie, Saixing Zeng, Zhipeng Zang and Hailiang Zou

The purpose of this study is to identify the factors determining collaborative innovation effect of manufacturing firms in emerging economies.

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Abstract

Purpose

The purpose of this study is to identify the factors determining collaborative innovation effect of manufacturing firms in emerging economies.

Design/methodology/approach

Based on a survey of 1,206 Chinese manufacturing firms and using structural equation modelling, this study explores the factors determining the effect of collaborative innovation among manufacturing firms (namely, internal capabilities, government policies, collaboration mechanisms and social networks) and examines the relationship between collaborative innovation effect and innovation performance.

Findings

The study finds that there are significantly positive relationships between firms’ internal capabilities, government policies, collaboration mechanisms and social networks and collaborative innovation effect among firms.

Practical implications

These findings reveal that policymakers should create an effective institutional culture and market environment to facilitate firms’ collaborative innovation.

Originality/value

This paper draws on the resource-based view of firms and contributes to understanding of how the development of factors determining firms’ collaborative innovation effect can improve innovation performance. This study extends established frameworks on collaborative innovation in relation to four dimensions, namely, firms’ internal capabilities, government policies, collaboration mechanisms and social networks, uniquely identifying the limits of specific dimensions. Moreover, this study addresses government policies and “Guanxi culture” specific to China that provide new insights into how firms’ collaborative innovation is improved from the perspectives of business–governmental relations and social networks.

Details

Chinese Management Studies, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/CMS-01-2017-0013
ISSN: 1750-614X

Keywords

  • Guanxi
  • Emerging economies
  • Innovation performance
  • Structural equation modelling
  • Collaborative innovation effect

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Article
Publication date: 5 August 2019

Corporate misconduct, trade credit and charitable donations: evidence from Chinese listed companies

Zheming Liu, Saixing Zeng, Xiaodong Xu, Han Lin and Hanyang Ma

The purpose of this paper is to investigate how revelations of corporate misconduct are associated with trade credit. Specifically, it investigates how this association…

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Abstract

Purpose

The purpose of this paper is to investigate how revelations of corporate misconduct are associated with trade credit. Specifically, it investigates how this association varies in different regions, in different types of industries and in response to companies’ subsequent charitable donations.

Design/methodology/approach

The authors empirically tested various hypotheses using a sample of 2,725 Chinese A-share listed companies from 2009 to 2014 based on signaling theory. Fixed effect models underpinned the methods used.

Findings

The authors found that corporate misconduct has a significant negative impact on an irresponsible company’s trade credit received and granted, and the negative impact is heterogeneous for different regions and industries. There is no evidence that charitable donations mitigate the effect on the trade credit of irresponsible companies following revelations of corporate misconduct.

Practical implications

The results suggest that listed companies in China should obey national and local laws and regulations if they wish to avoid the risk of significant trade credit loss. If a company’s violation of these laws and regulations is disclosed, making charitable donations is not an effective strategy for safeguarding trade credit.

Originality/value

This study enriches understanding on the consequences of corporate misconduct and extends the literature on trade credit. It fills a research gap by identifying the impact of corporate misconduct on trade credit.

Details

Chinese Management Studies, vol. 13 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/CMS-07-2017-0209
ISSN: 1750-614X

Keywords

  • Trade credit
  • Signalling theory
  • Corporate misconduct
  • Charitable donations

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Article
Publication date: 25 May 2020

Explaining alternative termination modes of international joint ventures

Palitha Konara, Zita Stone and Alex Mohr

The authors combine options logic with transaction cost economics to explain why firms maintain, divest or buy out their international joint ventures (IJVs). It is…

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Abstract

Purpose

The authors combine options logic with transaction cost economics to explain why firms maintain, divest or buy out their international joint ventures (IJVs). It is suggested that a decline in environmental risk and higher partner-related risk makes a firm more likely to acquire an IJV but less likely to divest an IJV. The study also investigates how IJV age moderates the effects of a decline in environmental risk and higher partner-related risk.

Design/methodology/approach

The study employs competing risks analyses to examine the drivers of different termination outcomes using a dataset consisting of 459 IJVs in the People's Republic of China, of which 110 were either acquired or divested by their foreign parent.

Findings

The study finds that changes in environmental risk and partner-related risk affect how firms terminate their IJVs in the People's Republic of China. Specifically, the authors find that the effect of exogenous and endogenous risk are more pronounced for the acquisition of IJVs than for the divestment of IJVs.

Research limitations/implications

The study contributes to international marketing research by complementing options logic with transaction cost economics to provide a theoretical explanation of the different ways in which IJVs in the People's Republic of China are terminated.

Practical implications

IJVs continue to be an important yet often unstable method to serve international markets. Our findings increase managers' awareness of the effect that two important sources of risk may have on the termination of IJVs in the People's Republic of China.

Originality/value

The study provides novel insights into the effect that changes in exogenous and endogenous risk have on a firm's choice of termination mode drawing on novel data on the different ways in which foreign firms have terminated their IJVs in the Peoples' Republic of China.

Details

International Marketing Review, vol. 37 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/IMR-02-2019-0085
ISSN: 0265-1335

Keywords

  • Joint ventures
  • Transaction costs
  • Environmental risk
  • IJV age
  • Options logic

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Article
Publication date: 14 January 2019

Selective integration of management systems: a case study in the construction industry

Panos T. Chountalas and Filippos A. Tepaskoualos

Despite the widely recognized benefits of integrating management systems, many multi-certified organizations continue to implement two or more systems separately. This can…

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Abstract

Purpose

Despite the widely recognized benefits of integrating management systems, many multi-certified organizations continue to implement two or more systems separately. This can happen either through ignorance or by deliberate intent. Focusing on the second reason, the purpose of this paper is to examine a number of factors that can lead an organization to consciously choose not to integrate all of its management systems.

Design/methodology/approach

The paper presents a case study of a construction company that has integrated the environmental management system and the occupational health and safety management system – which implies that the company is familiar with the practice of integration – while choosing to implement the quality management system separately from the other two.

Findings

The findings of this study show that the reasons that led the company not to integrate all of its systems are not so much related to the compatibility of these systems, but are much deeper and have implications that touch upon its basic principles and values. Despite the occurrence of some organizational and operational problems (such as complexity of administrative issues and bureaucracy), the separate implementation of the systems allowed the company to preserve both the balance between the powers of its executives and the ability to attach special importance to each area: quality, environment, health and safety.

Originality/value

This study will be useful in order to understand that selective integration of management systems is based on the belief that integration is not a de facto desirable goal, especially when the estimated cost-benefit ratio of non-integration is better than that of integration.

Details

The TQM Journal, vol. 31 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/TQM-03-2018-0028
ISSN: 1754-2731

Keywords

  • Quality
  • Construction industry
  • Integrated management systems
  • Health
  • safety and environment
  • Multi-certified organizations
  • Selective integration

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Book part
Publication date: 22 October 2019

Environmental Management Practices and Financial Performance of SMEs in Ghana

Gabriel Sam Ahinful and Venancio Tauringana

The chapter investigates the relationship between environmental management practices (EMPs) and financial performance (FP).

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Abstract

Purpose

The chapter investigates the relationship between environmental management practices (EMPs) and financial performance (FP).

Design/Methodology/Approach

The study is based on a sample of 187 SMEs and uses data on six EMPs (energy, water, waste, material, emissions, and biodiversity) collected through a self-administered questionnaire from owner-managers of SMEs. Ordinary least squares regression is employed to model the hypothesized paths.

Findings

The results suggest a positive and significant relationship between EMPs (energy, water, and material) and FP. There is also a significant positive relationship between an aggregate EMP measure and FP. However, other EMPs (waste, emissions, and biodiversity) are not significantly associated with FP. Overall, these results provide empirical support to the mostly normative suggestion that the conflicting results on the environmental management and financial performance relationship are partly due to the EMP measure used.

Research Limitations/Implications

The study is based on cross-sectional data, and therefore, it is impossible to determine any changes over time. Longitudinal studies could help confirm the relationship between EMP and FP over a longer period. From a policy perspective, this results mean that the Ghanaian EPA must monitor more closely for violations of laws and regulations relating to waste, emissions, and biodiversity since SMEs do not have incentives to manage these impacts without commensurate return.

Originality/Value

The study contributes by documenting evidence of the relationship between multiple measures of EMP and FP. This unlike most existing studies has enabled us to report evidence of how each EMP measure affects FP differently and where win–win opportunities are for SMEs. Thus, the win–win opportunities are associated with some EMP measures but not all.

Details

Environmental Reporting and Management in Africa
Type: Book
DOI: https://doi.org/10.1108/S1479-359820190000008006
ISBN: 978-1-78973-373-0

Keywords

  • Environmental management practices
  • financial performance
  • developing country
  • SMEs
  • Ghana
  • Africa

Content available
Article
Publication date: 28 June 2011

An empirical examination of benefits from implementing integrated management systems (IMS)

S.X. Zeng

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Abstract

Details

Development and Learning in Organizations: An International Journal, vol. 25 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/dlo.2011.08125daa.013
ISSN: 1477-7282

Keywords

  • Benefits
  • Integrated management system
  • Structural equation modelling

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