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This study aims to investigate the relationship between top manager tenure and the sophistication level of management accounting system (MAS) in extant literature.
Abstract
Purpose
This study aims to investigate the relationship between top manager tenure and the sophistication level of management accounting system (MAS) in extant literature.
Design/methodology/approach
Cumulating evidence from 31 studies (N = 12,739), this study meta-analytically examines the central question of whether top managers' tenure is significantly associated with MAS sophistication after correcting individual studies for statistical artifacts. The study also assesses the strength of this association bniy exploring the influence of several moderating factors.
Findings
The findings show that long-tenured top managers are not significantly related to MAS sophistication. However, the moderator analtgcqyses indicate that the relationship between top manager tenure and MAS sophistication is moderated by tenure measurement type, firm sector and size. The study provides evidence for the significant moderation of tenure measurement type (i.e. position tenure). The results also argue that top manager tenure matters for MAS sophistication in small- and medium-sized enterprises (SMEs) and firms in the private sector.
Originality/value
The meta-analysis summarizes existing studies quantitatively to expand prior narrative reviews by providing definitive evidence of the overall effect of top manager tenure on MAS sophistication.
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The purpose of this paper is to attempt to verify the predicted relationship between the demographic (i.e. tenure, functional background, etc.) difference and cognitive difference…
Abstract
Purpose
The purpose of this paper is to attempt to verify the predicted relationship between the demographic (i.e. tenure, functional background, etc.) difference and cognitive difference among top managers and examine how such a relationship is affected by the communication among top managers.
Design/methodology/approach
The authors hypothesized that there is a positive relationship between demographic deviation and cognitive deviation of a focal manager on a TMT, and that such a relationship is mediated by the degree of communication that the focal manager has with other team members on the TMT. Using Structural Equation Modeling techniques, these hypotheses were tested based on a sample of 348 top managers that consist of 28 top management teams.
Findings
It was found that the hypothesized relationship between demographic deviation and cognitive deviation of a focal top manager was supported with respect to the tenure of a manager, but not the functional background of a manager. Moreover, it was found that communication frequency of a focal manager with other team members mediated the relationship between the tenure deviation and the cognitive deviation of the focal manager and that tenure deviation negatively influenced communication frequency, which in turn, negatively influenced the cognitive deviation of the manager.
Practical implications
These findings imply that: when constructing a competitive top management, practitioners such as boards of directors of a firm should pay more attention to the tenure diversity of a top management team because tenure diversity influences the cognitive diversity of the team; and communication among members of a management team can reduce the cognitive differences among members. However, communication happens more frequently among managers with similar tenure than among managers with dissimilar tenure. To promote consensus, managers need to watch for the forming of group fault lines along tenure within their teams.
Originality/value
As far as is known, this is the first study that uses relational demography to examine the influence of tenure difference on cognitive difference among members of a top management team and to expose a mediating role played by communication frequency.
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This study examines how the strong emphasis placed on the purposes of budgeting, referring to a comprehensive focus on budgeting, is related to top managers' education and tenure…
Abstract
Purpose
This study examines how the strong emphasis placed on the purposes of budgeting, referring to a comprehensive focus on budgeting, is related to top managers' education and tenure while controlling for their functional positions in their respective firms and ages, as well as several company-specific predictors (information quality, firm size, information technology, importance of profit and strategy).
Design/methodology/approach
Survey data were collected from senior managers of large manufacturing firms in Finland and Sweden.
Findings
The results suggest that academic business education is positively associated with a comprehensive focus on budgeting, but tenure as well as functional position in the company (Chief Financial Officer (CFO) or not) and age are not. Overall, the company-specific control variables in general and information quality in particular are shown to have greater explanatory power than the top management characteristics analyzed.
Research limitations/implications
This study identifies several empirically supported factors that seem to contribute to a comprehensive focus on budgeting. The effects of information quality, business education, the importance of profit and firm size could be considered in future research.
Practical implications
Academic business education matters more than the other top management characteristics analyzed. If organizations want to make comprehensive use of budgets, they should employ business graduates and be mindful of company-specific variables.
Originality/value
This study is the first to address a comprehensive focus on budgeting and some of its determinants. Future research could investigate a broader set of such determinants in different contexts.
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Guofeng Wang, Runtian Jing and Andreas Klossek
The purpose of this study is to examine the relationship between demographic characteristics, job stress, and cognitive and affective conflict faced by Chinese top managers and…
Abstract
Purpose
The purpose of this study is to examine the relationship between demographic characteristics, job stress, and cognitive and affective conflict faced by Chinese top managers and how this conflict is resolved over multiple rounds of conflict situations.
Design/methodology/approach
A questionnaire was designed and submitted to Chinese top managers of firms located in Sichuan Province, PRC. Besides Likert‐type questions concerning demographic characteristics, job stress, and both types of conflict, contextual anchorage method was used to let top managers rank the conflict resolution styles they would prefer for solving a given situation of conflict.
Findings
Data were submitted to hierarchical regression analysis. It was found that age is in negative relation with job stress and that the higher the education level of top managers, the more cognitive conflict they will experience. In turn, the more cognitive conflict, the more affective conflict will be experienced. In addition, it was found that job stress is in positive association with cognitive conflict. Finally and most importantly, the findings indicated that Chinese top managers are inclined to using integrating to handle conflict. This seems to be generally inconsistent with traditional Chinese culture.
Originality/value
The paper accounted for respective calls that proposed to focus on the antecedent conditions of cognitive and affective conflict. Therefore, a framework containing important antecedent factors of conflict was proposed. As a first attempt, it integrated the relationship between job stress and conflict. Most importantly, and also as a first attempt, however, this study sought to identify the conflict resolution styles Chinese top managers applied over multiple rounds of conflict situations, whereas findings additionally differentiate between affective and cognitive types of conflict.
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Won Seok Lee, Insin Kim and Joonho Moon
The purpose of this research is to account for the internationalization of restaurants. The conceptual framework of upper echelons theory is applied to identify the demographic…
Abstract
Purpose
The purpose of this research is to account for the internationalization of restaurants. The conceptual framework of upper echelons theory is applied to identify the demographic determinants of internationalization among chief executive officers (CEOs).
Design/methodology/approach
Data from 30 restaurant firms for the period 1999-2013 were collected from a variety of sources, primarily Compustat and Execucomp, based on Standard Industrial Classification (SIC) code 5812, the annual 10-K and public information. A panel feasible generalized least squares model was used as the main instrument of analysis.
Findings
The findings indicate that the CEO gender and share ownership negatively affect the internationalization of restaurant companies, whereas size, the extent of franchising, the type of restaurant and stock options positively affect the degree of internationalization. Additionally, an inverted U-shaped relation exists between CEO tenure and the degree of internationalization.
Practical implications
The presented information may provide shareholders and boards of directors with valuable guidelines regarding the assignment of appropriate managers depending on the extent to which their companies are pursuing internationalization strategies.
Originality/value
Most studies in hospitality sectors have focused only on accounting-based measures to explain strategic decision-making, although proponents of upper echelons theory have argued that CEO attributes influence strategic decisions/changes. This study contributes to the literature on hospitality by identifying the effects of CEO characteristics on internationalization decisions.
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The purpose of this study is to empirically examine the effect of top management team (TMT) characteristics on corporate turnaround performance in declining firms under conditions…
Abstract
Purpose
The purpose of this study is to empirically examine the effect of top management team (TMT) characteristics on corporate turnaround performance in declining firms under conditions of environmental stability and turbulence.
Design/methodology/approach
Theoretical hypotheses were developed and tested using data collected from 98 US manufacturing firms that experienced performance decline and turnaround during the periods 1990‐1994 and 1995‐2000 respectively. Data were collected from the COMPUSTAT database and annual filings and analyzed using a moderated regression analysis.
Findings
The results of moderated regression analysis indicate an adverse effect of long organizational tenure on corporate turnaround, especially in turbulent environments. Hence, if was found that the effect of top team composition on corporate turnaround varies depending on the environmental context.
Research limitations/implications
The study contributes to the ongoing corporate turnaround research by examining the interplay between TMT characteristics and turnaround performance under different environmental contexts. Consequently, the findings of the study suggest that the environmental context in which declining firms operate matter just as much as the nature and characteristics of their top team in determining the success of their turnaround attempt.
Practical implications
The results of the study shed some light on corporate governance issues, specifically on the importance of matching top management change efforts in declining firms with the respective environmental context.
Originality/value
The study contributes to the corporate turnaround literature by addressing the recent call for research in the TMT‐turnaround relationship under environmental contingencies (i.e. environmental stability/turbulence).
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Kun Qiao, Chen-Lu Yang and Xue Yin
Upper echelons theory regards the CEO as a top management team (TMT) member. Research has rarely distinguished the CEO from other TMT members and has not explained the boundaries…
Abstract
Purpose
Upper echelons theory regards the CEO as a top management team (TMT) member. Research has rarely distinguished the CEO from other TMT members and has not explained the boundaries between them, which causes little attention to be paid to the interaction between the CEO and TMT members. The authors want to divide the CEO and other TMT members into two independent parts and explore the types of interactions between them and the impact of these interactions on organizational performance. The two independent parts and their interactions are important for the integration, supplementation and refinement of leader-team research in the empirical field.
Design/methodology/approach
A-share listed companies in the Shenzhen Stock Exchange with continuous operation from 2012 to 2015 were selected as samples. The data in the sample were mainly from the CSMAR database and the obtained data were checked with the data in RESSET, Sina Finance, Phoenix New Media and Eastmoney to ensure their accuracy and completeness. Finally, 209 companies were selected as the sample. The authors used SPSS 22.0 to process data.
Findings
The results showed that social network interaction, skill interaction and social experience interaction between the CEO and TMT members significantly affected organizational performance and the effects are more significant than those of the CEO and TMT members individually.
Originality/value
Such consideration can more clearly clarify the organizational use of CEO and TMT members and the complementary and overlapping relationships between them. Further, such consideration is instructive for the rational allocation and efficient operation of leaders and their team members in practice.
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The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a…
Abstract
Purpose
The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm.
Design/methodology/approach
The cognitive style of 58 members of ten top management teams were analyzed using the Myers Briggs Type Indicator (MBTI) and the strategy types based on Miles and Snow typology were defined using the paragraph approach. Descriptive statistics were used in the analysis.
Findings
Based on data from the ten top management teams in the spa industry, this study proposes that the cognitive composition of the top management team affects the strategies they prefer. Further, it is proposed that intuitive‐thinking top management teams prefer either a prospector or an analyzer strategy. A defender or an analyzer strategy is preferred by sensing‐thinking top management teams. Defining the composition of the top management team using the cognitive style is proposed to be a more promising way to explain the homogeneity or heterogeneity of the team than traditional measures such as age or education in this context.
Practical implications
For the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision‐making.
Originality/value
This study extends existing research by illuminating the relationships between the cognitive composition of the top management team and the strategy type and also confirms several results drawn from previous studies concerning manager‐strategy relationships. This paper also attempts to inspire researchers to take cognitive composition into consideration when studying the influences the top management team has on a firm's strategy.
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Building on the premise that top managers' characteristics affect firm outcomes, the study aims to examine whether the impostor feelings of top managers are associated with firm…
Abstract
Purpose
Building on the premise that top managers' characteristics affect firm outcomes, the study aims to examine whether the impostor feelings of top managers are associated with firm performance.
Design/methodology/approach
This study uses survey and regression estimation.
Findings
The results show that there is no strong association between the impostor phenomenon and firm performance, when considering the overall sample. However, in the case of women who experience strong impostor feelings, performance is negatively affected. There is no evidence that being a CEO or workload are mechanisms that explain this result.
Practical implications
Improving the understanding of whether top manager impostor feelings sabotage or improve firm performance can encourage managers to engage in preventive actions to overcome or explore its effects adequately so that positive firm outcomes are fostered.
Originality/value
Despite the economic importance of how top managers' judgment affects their decisions, little is known about how the cognitive frames of their top managers affect firm outcomes. In particular, there is no clear understanding of how top managers' feelings of inadequacy, intellectual phoniness and deceitfulness (the impostor phenomenon) affect firm profitability.
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Martin R.W. Hiebl, Bernhard Gärtner and Christine Duller
This paper aims to examine the relationship between characteristics of chief financial officers (CFOs) and enterprise resource planning (ERP) system adoption. Following upper…
Abstract
Purpose
This paper aims to examine the relationship between characteristics of chief financial officers (CFOs) and enterprise resource planning (ERP) system adoption. Following upper echelons theory, the authors theorize that CFO age, education, tenure and recruitment influence ERP system adoption, and that this relationship is moderated by the CFO being responsible for firm-wide information technology (IT) functions.
Design/methodology/approach
The empirical analysis is based on a survey of 296 large and medium-sized Austrian firms. Logistic regression analyses were used to test the association between CFO characteristics and ERP system adoption.
Findings
The authors find that firms with externally recruited CFOs have adopted ERP systems significantly more often than firms with internally promoted CFOs. Surprisingly, the results indicate that firms with less educated CFOs more often adopted an ERP system, and that the relationship between CFO characteristics and ERP system adoption is not moderated by the CFO being responsible for IT.
Research limitations/implications
This paper adds to the literature by corroborating case-based evidence that CFOs and their characteristics influence ERP system adoption. Extending previous research which indicates that CFO characteristics influence accounting practices, the authors show that CFO characteristics also influence technological innovation such as the adoption of ERP systems. Future research on technological innovation may therefore pay closer attention to the influence of CFOs.
Originality/value
This paper is the first to quantitatively test the influence of CFO characteristics on ERP system adoption.
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