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1 – 10 of over 6000Lilian M. de Menezes, Ana B. Escrig-Tena and Juan C. Bou-Llusar
As a Quality Management (QM) framework, the European Foundation for Quality Management (EFQM) Excellence Model has stakeholder management at its core. In EFQM (2012), based on…
Abstract
Purpose
As a Quality Management (QM) framework, the European Foundation for Quality Management (EFQM) Excellence Model has stakeholder management at its core. In EFQM (2012), based on which assessments were made until 2021, “creating a sustainable future” was a fundamental principle, but how it translated to a Sustainability Orientation and delivered to stakeholders remains questionable. This study aims to investigates the Sustainability Orientation within EFQM (2012) and its associations with Results for stakeholders.
Design/methodology/approach
Longitudinal assessments of recognized-for-excellence organizations by a partner of EFQM are considered. Using factor analysis, scores on the sub-criteria that defined “creating a sustainable future” are investigated, and a Sustainability Orientation is inferred. Panel regressions and structural equation modeling assess the correlations between Sustainability Orientation and Results. A qualitative analysis follows, where sustainability reports from role-models within this population are text mined to examine whether and how they reflected the guidance in EFQM (2012) concerning “creating a sustainable future”.
Findings
Direct and indirect positive associations between the Sustainability Orientation implied by EFQM (2012) and stakeholder-performance are confirmed. Yet, inferences from text mining of reported priorities of role-models of excellence illustrate that EFQM (2012) might have driven different strategies towards sustainability.
Originality/value
Despite conceptualizations that the EFQM model embeds a Sustainability Orientation, to the best of the researchers’ knowledge, its existence and likely impact remain to be examined. By combining longitudinal statistical analysis, structural equation models and text mining, consistent insights on the link between Sustainability Orientation and organizational performance are obtained.
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Elena Pellizzoni, Daniel Trabucchi, Federico Frattini, Tommaso Buganza and Anthony Di Benedetto
This study aims to shed lights on the dynamics of involving and sharing knowledge with stakeholders in the process of new service development (NSD) over time.
Abstract
Purpose
This study aims to shed lights on the dynamics of involving and sharing knowledge with stakeholders in the process of new service development (NSD) over time.
Design/methodology/approach
The paper is based on a paradigmatic case focused on the development of the digital MBA program by the School of Management of Politecnico di Milano. Primary and secondary data have been largely collected and analyzed, involving multiple stakeholders of the development process.
Findings
This study describes how several stakeholders have been involved during the phase of the NSD process, showing two variables that ruled their involvement: the level of control exerted by the School on the stakeholders and the level of flexibility of the stakeholders.
Research limitations/implications
This research offers insights to the understanding of the dynamics of involving and sharing knowledge with multiple-stakeholders in NSD. From a theoretical perspective, it contributes to stakeholder theory linking it with the service management literature, highlighting the role of cyclical fluctuations in the involvement activities.
Practical implications
This research offers insights to managers dealing with the development of new services, offering them a novel view on how various stakeholders may be involved over time, in different moment and in different ways, to properly enhance the development process thanks to their knowledge sharing.
Originality/value
This paper contributes to the service management literature emphasizing the role of multiple stakeholders while providing insights and suggestions to manage the complex relationships created by their involvement and their knowledge.
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Valentina Cucino, Cristina Marullo, Eleonora Annunziata and Andrea Piccaluga
Humane Entrepreneurship (HumEnt) is strongly purpose-oriented and characterized by a focus on inclusiveness and social and environmental sustainability, with attention to both…
Abstract
Purpose
Humane Entrepreneurship (HumEnt) is strongly purpose-oriented and characterized by a focus on inclusiveness and social and environmental sustainability, with attention to both internal and external stakeholders and their needs. In the attempt to provide new research in this field, this study aims to conduct an empirical investigation within the theory of HumEnt and, in particular, of the Human Resource Orientation (HRO) model among Italian Small and Medium-size Enterprises.
Design/methodology/approach
Based on quantitative data, this study used a deductive approach to investigate the relationship between the HumEnt model and firms’ relational embeddedness with different types of stakeholders (value chain stakeholders and societal stakeholders, respectively). More concretely, to investigate the relationships between the dimensions of the HumEnt model and firms’ relational embeddedness, partial least squares structural equation modeling was applied.
Findings
Findings of this study suggest that Entrepreneurial Orientation (EO) directly contributes only to value chain embeddedness. However, the results also show that if EO is mediated by an HRO (i.e. companies with a high HRO), a high level of societal embeddedness is also present.
Originality/value
This study represents a first attempt to provide comprehensive empirical evidence about the different dimensions characterizing the HumEnt theoretical model, and to highlight their relevance in supporting companies’ relational embeddedness capacity with different categories of stakeholders.
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James D. Doyle and John A. Parnell
Firms are advocating for social change to a growing extent, but the performance implications of corporate activism are not clearly understood. This study aims to introduce social…
Abstract
Purpose
Firms are advocating for social change to a growing extent, but the performance implications of corporate activism are not clearly understood. This study aims to introduce social nonmarket strategy (SNMS) as a goal-directed form of corporate activism, explore whether such strategy harms corporate financial performance (CFP), and assess the buffering potential of effective market-based strategy and good standing with stakeholders.
Design/methodology/approach
A reflective measurement model and all hypothesized relationships were tested using consistent partial least squares structural equation modeling on a data set of 202 US-based small, medium, and large manufacturing and service firms.
Findings
SNMS is positively related to good standing with stakeholders but negatively related to CFP. By contrast, a higher market strategy (MS) is positively associated with both stakeholder performance and CFP. MS and stakeholder performance buffer but do not fully neutralize the adverse financial effect of SNMS.
Practical implications
Firms undertaking SNMS face serious risks. However, effective MS and higher levels of stakeholder performance can buffer but not fully neutralize the adverse financial effect of SNMS.
Originality/value
This research introduces SNMS as a goal-directed form of corporate activism, establishes the conflicting performance effects of such strategy and estimates the buffering potential of MS and stakeholder performance.
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The aim of this theoretical and conceptual research paper is to give a definition of the concept of corporate citizenship, which together with business ethics and stakeholder…
Abstract
Purpose
The aim of this theoretical and conceptual research paper is to give a definition of the concept of corporate citizenship, which together with business ethics and stakeholder management function as foundation of a vision of the UN Sustainable Development Goals (SDGs) for financial institutions and capital markets.
Design/methodology/approach
This paper is based on a conceptual methodology which analyzes the main aspects of corporate citizenship with regard stakeholder management and the UN SDGs. In particular there is focus on stakeholder justice, integrity and fairness with regard to stakeholder responsibility at capital markets.
Findings
This paper suggests that concepts of corporate citizenship, business ethics, stakeholder justice, integrity and fairness, as well as stakeholder responsibility must be conceived as the basis for an acceptable vision of sustainable development at capital markets.
Research limitations/implications
This paper is a theoretical paper so the paper is limited to the presentation of major concepts from the point of view of business ethics, stakeholder management and SDGs. This is a framework that needs to be developed in specific research and investment practice at capital markets.
Practical implications
This paper provides the basis for developing a good vision of SDGs in financial institutions and capital markets and it demonstrates that the SDGs must be developed as the foundation of ethics of investments and capital markets.
Social implications
With suggestions of visions of corporate citizenship, business ethics and stakeholder management this paper situates the firm in a social context as a social actor in the context of sustainable development. The business firm is therefore integrated in society and there is a close connection between business and society which needs to be developed in codes and values of ethics of financial institutions capital markets.
Originality/value
The originality and value of this paper is a conceptual formulation of the relation between the concepts of corporate citizenship, business ethics, stakeholder management and SDGs in financial markets. With this the paper refers to earlier research and summarizes concepts from this in a short synthesis.
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Mauro Sciarelli, Giovanni Landi, Lorenzo Turriziani and Anna Prisco
This study aims to explore the impact of controversial firms’ corporate sustainability assessments on their risk exposure according to the environmental, social and governance…
Abstract
Purpose
This study aims to explore the impact of controversial firms’ corporate sustainability assessments on their risk exposure according to the environmental, social and governance (ESG) paradigm.
Design/methodology/approach
This study conducts a cross-sectional study using the ordinary least squares approach to test how corporate social responsibility practices affect firms’ risk exposure, testing the three single impacts of ESG components and the impact of an overall ESG assessment. This study considers the largest Standard & Poor’s (S&P) 500 stock market index companies and focus on a double-risk measurement – systematic and idiosyncratic – developing an empirical study on 132 controversial companies listed on the S&P index.
Findings
Empirical findings indicate that the overall ESG assessment and the environmental and social sub-dimensions decrease idiosyncratic firm risk. At the same time, no significant results are found according to the systematic risk component.
Originality/value
This study fits into the domain of risk management research, investigating whether additional and non-financial disclosures regarding sustainability issues decrease information asymmetries, improving investors’ decision-making and stakeholders’ relations. Prior literature has shown limited evidence on the relationship between corporate social performance (CSP) and firm risk based on controversial companies. The main contribution is to consider the controversy as an independent factor from the industry sector, given that the implications of CSP actions and practices are mainly firm-specific.
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Javier Aguilera-Caracuel, Jaime Guerrero-Villegas and Encarnación García-Sánchez
The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international…
Abstract
Purpose
The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international diversification) and social performance on multinational companies’ (MNCs) reputation.
Design/methodology/approach
The authors confirm the research hypotheses using a sample of 113 US MNCs in the chemical, energy and industrial machinery sectors during the period 2005-2010.
Findings
This study contributes to the literature in three ways. First, it incorporates literature on internationalization to study the possible connection between geographic international diversification and social performance in MNCs. Second, it sheds light on the debate between corporate social responsibility (CSR) and the reputation of MNCs in a very diverse transnational context in which MNCs must meet the needs of stakeholders at both local and global levels. Third, it incorporates the mediating role of social performance in the relationship between geographic international diversification and the firm’s reputation.
Originality/value
Prior studies have hardly analyzed this relationship, which becomes especially relevant for MNCs, since their implementation of advanced CSR practices in the different markets in which they operate will gain them a good reputation, not only in specific local contexts but also globally, benefitting the organization as a whole and enabling it to gain internal consistency (improvement in internal efficiency), transparency and legitimacy.
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Kari Lepistö, Minna Saunila and Juhani Ukko
This study examines whether certification improves the dimensions of total quality management (TQM) and whether the impact of certification is similar across companies of…
Abstract
Purpose
This study examines whether certification improves the dimensions of total quality management (TQM) and whether the impact of certification is similar across companies of different sizes and industries. The benefits of certification for companies have been widely discussed in recent years. The general debate has been partly marked by the dispute about whether companies will benefit more from certification or the implementation of TQM. This debate has led to numerous studies on the benefits of certification; however, few studies simultaneously have examined traditional TQM issues and the requirements of the new quality standard, ISO 9001: 2015, as well as the updated European Foundation for Quality Management (EFQM) criteria.
Design/methodology/approach
This study was conducted via a survey of Finnish SMEs and covered both industrial and service companies. The study comprehensively compared industrial companies with service companies and small companies with medium-sized companies.
Findings
In industrial and small enterprises, certification clearly has a positive effect on the dimensions of TQM, but a similar effect was not observed in medium-sized enterprises or in the service sector.
Originality/value
This is one of the first studies to examine the effect of certification on TQM in different types of SMEs while simultaneously considering EFQM and ISO 9001:2015 in Finland. The significant originality of this research lies in the formation of a comprehensive research framework for the dimensions of TQM.
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Joanna Dyczkowska, Joanna Krasodomska and Fiona Robertson
Stakeholder capitalism (SC) advocates that organisations should focus on creating long-term value for all key stakeholders rather than maximising short-term profits for…
Abstract
Purpose
Stakeholder capitalism (SC) advocates that organisations should focus on creating long-term value for all key stakeholders rather than maximising short-term profits for shareholders. This paper aims to explore whether and how business organisations have applied stakeholder capitalism principles (SCPs) during the COVID-19 pandemic and how these efforts were communicated in integrated reports.
Design/methodology/approach
This study is based on the content analysis of the text extracted from the integrated reports of 22 companies categorised as excellent in the 2020 EY Excellence in Integrated Reporting Award 2020. The research material consisted of paragraphs that reflected how the company observed the SCPs in practice.
Findings
The stakeholder responsibility principle was the most represented by the examined companies, followed by the principles of continuous creation, stakeholder engagement and stakeholder cooperation. The COVID-19 pandemic has propelled the necessity of implementing innovative solutions to counteract the virus's spread. It has also spurred the need for two-way digitalised communication between the executives and stakeholders. The new situation also required collaborative approaches in the forms of partnerships, joint initiatives and programmes to ensure employee safety and help communities recover from the social and economic impacts of the pandemic.
Originality/value
This study links SC with integrated reporting (IR) and contributes to the literature by providing new insights into how SCPs have been applied during the COVID-19 pandemic. This discussion suggests that whereas these principles determine how the companies must act to satisfy stakeholders expectations, integrating reporting may help develop a report that is stakeholder-oriented and which responds to their information needs.
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This study aims to investigate the relationship between corporate governance (CG) and financial performance in the case of publicly listed companies in Vietnam for the period from…
Abstract
Purpose
This study aims to investigate the relationship between corporate governance (CG) and financial performance in the case of publicly listed companies in Vietnam for the period from 2019 to 2021. The topic is crucial in understanding how effective governance practices can influence the financial outcomes of companies. The study sheds light on the link between CG practice and firm financial performance. It also provides insights for policymakers and practitioners to improve CG practices.
Design/methodology/approach
Due to the potential dynamic endogeneity in CG research, this study uses the generalized system methods of moments to effectively address the endogeneity problem. Financial performance is measured by Tobin’s Q, return on equity (ROE) and return on assets (ROA). Based on organization for economic cooperation and development (OECD) standards, these indices were calculated to assess the influence of CG practices on corporate financial performance, namely, for accounting information (ROA and ROE) and market performance (Tobin’s Q and service à resglement différé (SRD) – stock price volatility) for the period 2019–2021. In addition, the study examines the relationship between changes in the CG index and changes in financial performance.
Findings
The study’s main objective is to determine the relationship between CG performance scores and financial performance. The study found a positive relationship between transparency disclosure and financial performance and a positive correlation between CG and company size. The COVID-19 pandemic caused a decrease in transparency and information index scores in 2021 compared to 2019 and 2020 due to delayed General Meetings of Shareholders. The study failed to find a relationship between shareholder rights index (“cg_rosh”) and board responsibility (“cg_reob”) and financial performance, concerning which the findings of this study differ from those of previous studies. Reasons are put forward for these anomalies.
Originality/value
Policymakers need to develop a set of criteria for assessing CG practices. They also need to promulgate specific regulations for mandatory and voluntary information disclosure and designate a competent authority to certify the transparency of company information. The study also suggests that companies should develop CG regulations and focus on regulations relating to the business culture or ethics, as well as implementing a system to ensure equal treatment among shareholders. The study found that good CG practices can positively contribute to a company’s financial performance, which is crucial for investors to evaluate the quality of CG practices for each listed company so that investment risks can be limited.
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