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This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia.

The sample of this research comprises 248 firms from Indonesian Stock Exchange during 2004-2006. This research using Transparency and Disclosure Index (TDI) to measure corporate governance in Indonesia

We find that TDI are low among Indonesian firms, with a score of 32 per cent out of the maximum point. This score indicates that Indonesian corporate governance is still low. The results show that there is a negative relation between corporate governance and dividend policy in Indonesia. Thus, the Indonesian companies pay more dividends when corporate governance practice is low. This result confirms applicable of substitution theory in Indonesia.

This research focuses on manufacturing industry in Indonesia. Therefore, the conclusions of this research apply on the manufacturing companies in Indonesia

This research shows that companies with poor corporate governance pay dividend higher than companies with better corporate governance. Thus, investor can use this information to make investment decision.

This research provides evidence on the negative effect of corporate governance on dividend policy in Indonesia (substitution theory).

Outlines the three theories which link multinationality to share value (internalization, imperfect capital markets and managerial objectives), reviews the relevant research and hypothesizes that a multinational’s degree of internalization is positively related to its accounting value (q‐value). Tests this using 1994‐1998 data on French listed companies and presents the results which support the hypothesis, the existence of a size effect (smaller firms have higher q‐values) and leverage effect (higher debts are linked with lower q‐values), but sow no significance in the proportion of intangible assets; i.e. they support the imperfect capital markets theory but not the internalization theory. Considers consistency with other research and opportunities for further research.

Despite the growing importance of logistics in corporate strategy and the global economy, the logistics literature reveals little effort to build a unified theory of logistics (i.e. a theory of the role of logistics in the firm). Thus, the purpose of this paper is to move toward a unified theory of logistics within the contexts of the strategic role and capabilities of logistics. Considering the importance of logistics in today's corporate strategy, various theories of the firm are adapted to explain the reasons for logistics activities within the firm. The proposed theory should serve as a conceptual reference point for future theory development and empirical research in logistics.

This study aims to contribute to the academic disciplines of entrepreneurship and management by developing a new theory that explains Founder-CEOs’ succession in family and non-family firms. Many scholars failed to generate a specific theory to describe the succession of Founder-CEOs. Family firms remain complex enterprises comprising interconnectedness of cultural interests in which corporate governance occurs by families, Founder-CEOs and sometimes a board of directors.

This study’s design/methodology/approach reflects post-modernist epistemological and ontological perspectives for conducting systematic literature reviews. To identify relevant studies in the review, the several databases (Australian Business Dean’s Council Journal Quality List; EBSCO Database, including PsycINFO and Psych studies; Web of Science) and a mix of ranked journals from entrepreneurship, management and psychology were used.

The findings and results in this paper reflect the purpose, methodology and literature analysis culminating in 1,582 peer-reviewed studies. A total of 182 peer-reviewed studies met the criterion for review. Throughout the research process, a systematic literature review uncovered management literature gaps overlooked for decades during the theory-building process. Hence, developing a theory of Founder-CEOs succession used a combination of systematic, inductive, comparative and interactive approaches.

A Theory of Founder-CEOs Succession explains the strategic process of replacing a founder systematically. The promotion of, and incentives for, internal executives have been topics of great interest and deliberation among scholars and practitioners for a long time. This study contributes research implications for theory building in the academic disciplines of entrepreneurship and management by offering scholars and practitioners a theory that does not exist to describe Founder-CEOs’ succession encompassing both strategic successes and failures. By incorporating successes and failures, this study provides realistic reflections of Founder-CEOs.

The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field.

A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of “multinational advantage”. These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors.

The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

This paper aims to show how researchers can overcome problems of fragmentation and eclecticism in an important strategy paradigm, namely, the Dynamic Capabilities (DC) perspective.

First, the explanandum of the theory of DC, conceptualized as a theory of strategic change, is generates. Second, four main constituent theoretical perspectives of DC were selected and their explanans on the explanandum of a theory of strategic change was mapped. Third, the explanans of a theory of strategic change was parsed out to derive the critical fragmentation sources as illustrated by the classical papers in DC.

First, consistent explanans of a theory of strategic change are integrated to build a meta-theory of strategic change. Second, testable propositions based on the meta-theory, in the context of industry convergence, a context which requires the development of dynamic capabilities in an uncertain and changing environmental context are developed.

By developing a meta-theory of strategic change, researchers are provided with the tools to overcome the confusion of fragmentation and eclecticism, specifically in the field of strategy research.

The aim of this empirical study is to explore the factors that affect the capital structure of manufacturing firms and to investigate whether the capital structure models derived from Western settings provide convincing explanations for capital structure decisions of the Pakistani firms.

Different conditional theories of capital structure are reviewed (the trade‐off theory, pecking order theory, agency theory, and theory of free cash flow) in order to formulate testable propositions concerning the determinants of capital structure of the manufacturing firms. The investigation is performed using panel data procedures for a sample of 160 firms listed on the Karachi Stock Exchange during 2003‐2007.

The results suggest that profitability, liquidity, earnings volatility, and tangibility (asset structure) are related negatively to the debt ratio, whereas firm size is positively linked to the debt ratio. Non‐debt tax shields and growth opportunities do not appear to be significantly related to the debt ratio. The findings of this study are consistent with the predictions of the trade‐off theory, pecking order theory, and agency theory which shows that capital structure models derived from Western settings does provide some help in understanding the financing behavior of firms in Pakistan.

This study has laid some groundwork to explore the determinants of capital structure of Pakistani firms upon which a more detailed evaluation could be based. Furthermore, empirical findings should help corporate managers to make optimal capital structure decisions.

To the authors' knowledge, this is the first study that explores the determinants of capital structure of manufacturing firms in Pakistan by employing the most recent data. Moreover, this study somehow goes to confirm that same factors affect the capital structure decisions of firms in developing countries as identified for firms in developed economies.

The goal of this paper is to provide a broad foundation for future research in the area of strategic sourcing.

The foundation is derived by drawing from various well‐established organizational theories. Specifically, strategic sourcing was viewed from the perspective of institutional theory, resource dependence theory, network theory, systems theory, resource/knowledge‐based views of the firm, transaction cost economics, agency theory, strategic choice theory, sociocognitive theory, and critical theory.

By viewing strategic sourcing through the lens of ten organizational theories, this research provides multiple insights into many interrelated strategic sourcing questions, such as when to make, buy or ally, how many and which suppliers, and how to manage sourcing relationships. The paper offers a rich and diverse foundation to foster future theory‐building activities in sourcing and supply management research.

While some of these theory bases have been utilized, to some degree, in the supply management research, the paper offers a more holistic perspective of theoretical insights for strategic sourcing. Each of these organizational theories could be utilized as a foundation for future studies. Further, the paper offers competing and/or complementary theory bases to enhance possible insights into many strategic sourcing questions such as when to make, buy or ally.

The purpose of this paper is to demonstrate the usefulness of referring to a theory of the firm as a way to strongly improve internal consistency in both research and practice. To this end, the paper explores how a theory-of-the-firm perspective can assist in a consistent analysis of IC, focusing on five IC-related issues: the definition and the origins of IC; the set of property rights on IC; its role in the competitive advantage and the value generation process of the firm; the way IC can be valued, including issues relating to the internal and external reporting; and finally the most efficient way to effectively manage and control IC. Analysis is carried out referring to the strengths and weaknesses of the resource-based view (RBV), being the main reference theories for IC scholars and practitioners.

The paper employs a deductive approach to explore how different theories of the firm shape the way IC-related issues could be consistently analysed.

The research finds that referring to a theory of the firm assists investigating IC-related issues. It carries out the analysis of five important issues under the two forms of the RBV, demonstrating how a different theory of the firm differentiates analysis and offers room for improving the internal consistency for both research and practice.

Implications of the paper are mainly for improving consistency in research, but they also support practice as for consciousness and awareness. Limitations are as follows. First, the paper offers an analysis of only two selected theories of the firm. Second, the analysis is based on a deductive reasoning which can be criticised for the results, even if not for the aim.

The paper offer stimuli to both theoretical and empirical research and practice. As for research, the paper highlights how consistency can be developed and also focusses on the way empirical research could be consistently carried out. As for practitioners, the paper assists in enlightening covered links between practice and theories.

The paper pays attention to the role of the theory of the firm, as a way for improving internal consistency in the study and the practice of IC.

Using a meta-regression analysis, we quantitatively review the empirical literature on the relation between effective tax rate (ETR) and firm size. Accounting literature offers two competing theories on this relation: The political cost theory, suggesting a positive size-ETR relation, and the political power theory, suggesting a negative size-ETR relation. Using a unique data set of 56 studies that do not show a clear tendency towards either of the two theories, we contribute to the discussion on the size-ETR relation in three ways: First, applying meta-regression analysis on a US meta-data set, we provide evidence supporting the political cost theory. Second, our analysis reveals factors that are possible sources of variation and bias in previous empirical studies; these findings can improve future empirical and analytical models. Third, we extend our analysis to a cross-country meta-data set; this extension enables us to investigate explanations for the two competing theories in more detail. We find that Hofstede’s cultural dimensions theory, a transparency index and a corruption index explain variation in the size-ETR relation. Independent of the two theories, we also find that tax planning aspects potentially affect the size-ETR relation. To our knowledge, these explanations have not yet been investigated in our research context.