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1 – 10 of 593Guido Orzes, Fu Jia, Marco Sartor and Guido Nassimbeni
The purpose of this paper is to shed light on the relationship between the adoption of Social Accountability 8000 (SA8000) – which is considered the most important ethical…
Abstract
Purpose
The purpose of this paper is to shed light on the relationship between the adoption of Social Accountability 8000 (SA8000) – which is considered the most important ethical certification standard – and firm performance, building on agency and contingency theories.
Design/methodology/approach
The authors analyse secondary longitudinal balance sheet data of listed firms employing a rigorous event-study approach and compare SA8000-certified companies to different control groups based on three matching criteria, i.e., industry, size, and pre-certification performance. The authors then study the moderating effects of the cultural features, the country’s development level, and the labour intensity on the causal relationship through multiple regression methods.
Findings
The authors find that SA8000 certification positively affects labour productivity and sales performance but has no effect on profitability. Furthermore, the study supports that the relationship between SA8000 and profitability is moderated by two cultural features of the home country of the firms (i.e. power distance and uncertainty avoidance).
Originality/value
This is the first study, which empirically tests the effects of the ethical certification SA8000 on firm performance using a cross-country sample. In addition, the authors contribute to the wider debate on the effects of corporate social responsibility practices on firm performance.
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Alexander Hofer, Ewald Aschauer and Patrick Velte
This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs…
Abstract
Purpose
This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs) to better understand SCTs’ impact on sustainability performance.
Design/methodology/approach
Through a qualitative approach, 15 in-depth interviews are conducted in a two-tier governance setting. Participants include management and supervisory board members, compensation consultants and other stakeholders involved in proxy voting.
Findings
SCT implementation is primarily determined by meeting shareholders’ expectations rather than those of other stakeholders. Decision makers react in a differentiated way to increased expectations by implementing either primarily symbolic or substantive measures and encounter different implementation challenges like insufficient data quality and a lack of experience within supervisory boards, both of which potentially contribute to decoupling.
Research limitations/implications
The study offers valuable insights for companies in designing SCTs and emphasises the significance of addressing decoupling to effectively enhance sustainability performance through SCTs and provides a foundation for future studies aimed at analysing this phenomenon.
Originality/value
Using a neo-institutional theory lens, this study marks one of the first interview-based investigations to distinguish between symbolic and substantial SCTs. It delves deeply into the role of decoupling and the associated challenges, offering fresh perspectives within the under-researched framework of a two-tier corporate governance structure. Moreover, this study aims to meticulously capture the real-world design practices and implementation processes of SCTs through experts, an aspect that was emphasised as a limitation in previous studies.
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Idoya Ferrero-Ferrero, María Jesús Muñoz-Torres, Juana María Rivera-Lirio, Elena Escrig-Olmedo and María Ángeles Fernández-Izquierdo
This study aims to empirically analyze a sound commitment and a consistent integration of sustainable development goals (SDGs) in the corporate reporting and management systems of…
Abstract
Purpose
This study aims to empirically analyze a sound commitment and a consistent integration of sustainable development goals (SDGs) in the corporate reporting and management systems of companies that have a leading position in sustainability.
Design/methodology/approach
The study applies a content analysis procedure based on a proposed analytical framework to codify the commitment and the SDG integration. In order to analyze the consistency of the integration, this study has provided a “SDG integration” score based on fuzzy inference systems methods. The companies in the sample have been identified as benchmarks in terms of sustainability in a specific region of Spain.
Findings
The findings show a lack of formality regarding the SDG commitment at the highest decision-making level and a low level of SDG integration in the reporting and management systems. These results are mainly explained because the most companies do not prioritize according to the materiality analysis and those SDGs more reported have not been deployed along targets and KPIs in a consistent way.
Research limitations/implications
The results provide practical implications that help to overcome the limitations in terms of comparison and consistency of the SDGs-reported information. It also illustrates how the leading sustainable companies are doing the SDG reporting and suggests which elements could be improved to promote a consistent integration of the SDGs in the management systems.
Originality/value
This study provides new work lines in the promotion of an effective SDG-business reporting based on a robust management structure that allows an alignment among the SDG-business decisions based on a normative, strategic and operational approach.
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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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Ana B. Escrig-Tena, Beatriz Garcia-Juan and Mercedes Segarra-Ciprés
Although the European Foundation for Quality Management (EFQM) Excellence Model has been widely adopted throughout Europe, a thorough examination of the factors that contribute to…
Abstract
Purpose
Although the European Foundation for Quality Management (EFQM) Excellence Model has been widely adopted throughout Europe, a thorough examination of the factors that contribute to the internalisation of the model (i.e. a substantive adoption) has been neglected in the literature. The purpose of this paper is to present a model that analyses the drivers of the real internalisation of the EFQM excellence model, with a focus on the role of motives for adoption, and appraisal and compensation systems.
Design/methodology/approach
An empirical study was carried out based on a sample of Spanish organisations that had been awarded EFQM recognition. Structural equation models, cluster analysis and ANOVA were used to examine the research questions.
Findings
Internal motives concerning the creation of a participative style are the main driver of internalisation. Moreover, having an appraisal system-oriented towards the development of employees helps the substantive adoption of the EFQM model. These findings reinforce the importance of the soft elements of the EFQM model.
Originality/value
This study enhances evidence about the motives for adoption and their influence on the internalisation of the EFQM model. It analyses internalisation in a novel context, EFQM recognised organisations, and contributes to the debate about the efficacy of the EFQM model to performance improvement, by unveiling the factors that could foster the internalisation of the model within the organisational routines.
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Stefania Testa, Thaer Atawna, Gino Baldi and Silvano Cincotti
This paper aims at explaining variances in the contribution of Islamic crowdfunding platforms (ICFPs) to sustainable development (SD), by adopting an institutional logic…
Abstract
Purpose
This paper aims at explaining variances in the contribution of Islamic crowdfunding platforms (ICFPs) to sustainable development (SD), by adopting an institutional logic perspective (ILP). ICFPs represent a dual institutional overlap between two logics (the Western-mainstream and the Islamic logic) which have an impact on corporate social responsibility (CSR) interpretations, practices, and decisions and whose conflicts are mitigated by choosing different resolution strategies. The authors aim at showing that this choice affects SD differently.
Design/methodology/approach
The authors develop a conceptual typology through the following steps: (1) choice of variables and identification of corresponding variable domains, through literature review. Variables chosen are the elemental CSR dimensions related to various social and environmental corporate responsibilities to whom diverse meaning and emphasis are given under the Western-mainstream and Islamic logics. (2) Identification of three distinct ideal types of ICFPs, building on different resolution strategies to mitigate conflicts between logics; (3) development, for each ideal type, of a set of implications related to SD; (4) implementation of a first test aiming at assigning real cases to each ideal type.
Findings
The authors identify Western-mimicking (platforms adopting as resolution strategy decoupling or compartmentalizing strategies), Islamic-driven (platforms focusing on one prevailing logic) and Syncretism-inspired (platforms adopting hybridizing practices) ideal-types.
Originality/value
It is the first paper suggesting ILP to explain variances in crowdfunding platforms' role in addressing SD. It focuses on a specific type of CF platforms till now neglected.
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Leman Isik, Christina Nilsson, Johan Magnusson and Dina Koutsikouri
While digital transformation holds immense promise, organizations often fail to realize its benefits. This study aims to address how policies for digital transformation benefits…
Abstract
Purpose
While digital transformation holds immense promise, organizations often fail to realize its benefits. This study aims to address how policies for digital transformation benefits realization are translated into practice.
Design/methodology/approach
The authors apply a qualitative, comparative case study of two large, public-sector health care organizations in Sweden. Through document and interview data, the authors analyze the process of translation.
Findings
The study finds that practice variation is primarily caused by two types of decoupling: policy-practice and means-ends. Contrary to previous studies, coercion in policy compliance is not found to decrease practice variation.
Research limitations/implications
The limitations primarily stem from the empirical selection of two large public health-care organizations in Sweden, affecting the study’s generalizability. Reducing practice variation is more effectively achieved through goal alignment than coercion, leading to implications for the design of governance and control.
Practical implications
Policymakers should, instead of focusing on control-related compliance, work to align organizational objectives and policies to decrease practice variation for successful benefits realization.
Social implications
The study contributes to better benefits realization of digital transformation initiatives in health care. As such, the authors contribute to a better functioning and more transformative health care in times of increased demand and decreased supply of health-care services.
Originality/value
The study challenges conventional wisdom by identifying that coercion is less effective than goal alignment in reducing practice variation, thereby enhancing the understanding of policy implementation dynamics in health-care settings.
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María Lourdes Arco-Castro, María Victoria López-Pérez, Ana Belén Alonso-Conde and Javier Rojo Suárez
This paper aims to identify the effect of environmental management systems (EMSs), commitment to stakeholders and gender diversity on corporate environmental performance (CEP) and…
Abstract
Purpose
This paper aims to identify the effect of environmental management systems (EMSs), commitment to stakeholders and gender diversity on corporate environmental performance (CEP) and the extent to which an economic crisis moderates these relationships.
Design/methodology/approach
A regression analysis was conducted on a sample of 14,217 observations from 1,933 firms from 26 countries from 2002 to 2010. The estimator used is ordinary least squares with heteroscedastic panel-corrected standard errors (PCSEs), which allows us to obtain consistent results in the presence of heteroscedasticity and autocorrelation.
Findings
The results show that EMSs and stakeholder engagement are mechanisms that drive CEP but lose their effectiveness in times of crisis. However, the presence of women on boards has a positive effect on CEP that is not affected by an economic crisis.
Research limitations/implications
The study has some limitations that could be addressed in the future. We present board gender diversity as a governance mechanism because its role is strongly related to non-financial performance. Future studies could focus on other corporate governance mechanisms, such as the presence of institutional or long-term investors. In addition, other mechanisms could be found that can counteract poor environmental performance in times of crisis. Finally, it might be useful to contrast these results with the crisis generated by the coronavirus pandemic.
Practical implications
The results obtained have important practical implications at the corporate and institutional levels. At the corporate level, they highlight, as essential contributions, that environmental management systems and stakeholder orientation are not effective in times of economic crisis, except for with the presence of women on the board.
Social implications
Following the crisis, the European Commission has promoted gender diversity on boards as a mechanism to improve the governance of entities – improving, among other aspects, sustainability. In this sense, another one of the practical implications of the study is support for the policies that the European Union has implemented over the last two decades.
Originality/value
The paper analyses how a crisis affects the moral and cultural institutional mechanisms that promote CEP. Gender diversity on the board of directors not only promotes environmental performance but also appears to be a governance mechanism that ensures this performance in times of crisis when the other mechanisms lose their effectiveness. The study proposes specific policies that help maintain environmental performance in an economic crisis.
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Cesar Casiano Flores, Hans Bressers, Carina Gutierrez and Cheryl de Boer
In Mexico, only 19.3 per cent of industrial water is treated (Green-Peace, 2014, pp. 3-4), whereas municipal treatment levels are approximately 50 per cent (CONAGUA, 2014a). This…
Abstract
Purpose
In Mexico, only 19.3 per cent of industrial water is treated (Green-Peace, 2014, pp. 3-4), whereas municipal treatment levels are approximately 50 per cent (CONAGUA, 2014a). This paper aims to focus on how the wastewater treatment plant policy, from a circular economy perspective, is affected by the governance context at the Presa Guadalupe sub-basin. Circular economy can contribute to water innovations that help in improving water quality. However, such benefits are not easily achieved. This case provides an example of the complexity and challenges that the implementation of a circular economy model can face.
Design/methodology/approach
Data are collected via semi-structured in-depth interviews with the stakeholders that are members of the Presa Guadalupe Commission. The contextual interaction theory (CIT) is the theoretical basis for this analysis (Boer de and Bressers, 2011; Bressers, 2009).
Findings
The findings show that the wastewater treatment plant policy plays an important role in a circular economy model. Some incentives towards a circular economy model are already in place; however, the hurdles of a top-down implementation perspective, low availability of resources, prioritisation of short-term results, lack of enforcement of the “polluter pays” principle and a linear model of water systems need to be overcome. If Mexico wants to move towards a circular economy model and if the government wants to enforce sustainable development principles, wastewater treatment is a challenge that must be addressed.
Originality/value
There are few studies in the circular economy literature that have analysed its implementation under a governance arrangement perspective.
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Federica Sacco and Giovanna Magnani
In recent years, both academics and institutions have acknowledged the crucial role multinational enterprises (MNEs) can play in addressing the sustainability challenges, as…
Abstract
In recent years, both academics and institutions have acknowledged the crucial role multinational enterprises (MNEs) can play in addressing the sustainability challenges, as formalized by the sustainable development goals (SDGs). Nevertheless, because of their extensiveness and their design as country-level targets, SDGs have proven challenging to operationalize at a firm level. This problem opens new and relevant avenues for research in international business (IB). This chapter attempts to frame the topic of extended value chain sustainability in the IB literature. In particular, it addresses a specific topic, that is, how sustainability and resilience-building practices interact in global value chains (GVCs). To do so, the present study develops the case of STMicroelectronics (ST), one of the biggest semiconductor companies worldwide.
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