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This paper seeks to explore the effect of performance duration (rather than intensity) on the subsequent initiation of strategic change by firms. Specifically, the effect of outperformance and underperformance duration on strategic change, as well as the moderating effect of environmental dynamism, is studied.

Using a fixed-effects model, analyzing a sample of 34,907 firm-year observations from 1980 to 2018 across 112 industries mostly supported proposed hypotheses.

Results revealed a U-shaped relationship between outperformance duration and strategic change and an inverted U-shaped relationship between underperformance duration and strategic change. The moderation role of environmental dynamism was only partially supported.

This study examines a new dimension of performance feedback, namely duration, rather than the widely used intensity of performance feedback, to enhance our understanding of the behavioral theory of the firm.

The phenomenon of defamilization of family firms is gradually increasing for the growth of family firms, that is, nonfamily executives are increasingly present in the executive teams of family firms. Although previous scholars have identified various determinants of family firms' defamilization, whether and when innovation underperformance affects the decision to defamilize family firms has not been explore. This study aims to fill the aforementioned research gaps.

This study empirically tests the theoretical view based on the data of Chinese A-share family listed companies from 2009 to 2017.

The authors found that innovation underperformance drives family companies to increase the percentage of nonfamily executives in their executive teams. Further, the authors found that family firms are less willing to hire nonfamily executives with an increase in socioemotional wealth, particularly when founders of such businesses serve as directors or are major shareholders, even when they are not directors.

This study shows that innovation underperformance and socioemotional wealth are important predictors of family firms’ defamilization decisions.

Opinions have been divided on whether there is a rational explanation to the reason behind seasoned equity offerings (SEOs) or whether the explanation lies within the behavioural intricacies attributed to stock market participants. The paper aims to discuss these issues.

This study investigates the long-run performance of firms conducting SEOs on the Johannesburg Stock Exchange (JSE) over the period of 1998–2015, by examining the return performance and operating performance of firms, along with the impact of investor sentiment on these variables.

The results of this study are inconsistent with the existing literature, which argues that the long-run performance of issuing firms signalled an initial underreaction to SEOs buoyed by over-optimistic investors.

Instead, the long-run performance of issuing firms is adequately explained by the rational models centred on the risk-return framework, implying that investors are reacting swiftly to SEOs in an unbiased fashion.

Investor sentiment does not materially influence the long-run share performance or operating performance of issuing firms, casting doubt on the ability of the market timing theory to explain the long-run performance of SEOs. The authors thus find that SEO performance cannot be explained by behavioural-based reasoning, in contrast to some asset pricing studies on the JSE which indicate the role of sentiment in explaining returns.

The purpose of this paper is to examine the underperformance problem of four UK-based small and medium-sized enterprises (SMEs) from management's and employees' perspectives in order to advance knowledge on a neglected area in small business and management studies.

Based on performance management's theoretical frame of managerial/entrepreneurial, market shaping and system-wide resource (re)organisation and the microstories obtained from 85 surveyed employees and managers, the data are analysed using an interpretivist paradigm.

The key findings of the study highlighted the adoption of tough performance implementation measures by management, the development of learning initiatives, the adaptation of roles, the redefinition of what a performing employee meant and three areas for performance improving in all four SMEs. This study reveals the crucial role of personal, conversational agency and implementation attributes, which are neglected aspects in current performance management in small firms.

The drawbacks of the study centre on the limited nature of the survey sample and the fact that it is solely based within the UK. This suggests that the findings are not to be generalised to other contexts.

The study identifies key employee and management behaviours, attitudes and lived experiences that need to fundamentally change in order to resolve the four SMEs' underperformance. In addition, an innovative environment encouraging inter-departmental agency collaborations and grassroots implementation are needed to effectively and holistically revive the four companies' performance.

The study's results highlight the impact of manager/entrepreneur/employee relations on the social aspects that could either facilitate or hamper micro- and macro-level performance. It is therefore critical that owner entrepreneurs are mindful of the impact that their actions/activities and practices could have on the social lives of their employees and partners and on the ultimate bottom line of business success or failure.

Studies focussing on small businesses' underperformance in the UK are a rarity. The paper advances the traditional performance management literature by proposing employee learning and skills' developmental as non-tangible resources to complement managerial attempts. In addition, a “can do” attitude and a more holistic, organisational and individual approach to performance resolution is proposed to fill the performance implementation and theoretical gap faced by academics, employees, managers and owner entrepreneurs.

This study aims to detail how employees’ experience of distributive injustice may compromise their job performance, with specific attention to how this detrimental process may be explained in part by their beliefs about organization-level underperformance and moderated by their own psychological entitlement.

The research hypotheses were tested with three-round, time-lagged data collected among employees and their supervisors.

A critical channel through which employees’ perceptions that their organization’s reward system is unfair translates into thwarted job performance is a conviction that their organization does not meet its own performance targets. As a mediator, such organizational underperformance beliefs have particularly salient effects on employees who believe they are more deserving than others.

This study gives HR managers insights into how they can reduce the danger that unfair reward practices escalate into a reduced propensity by employees to complete their job tasks diligently. HR managers should make employees aware of their possible entitlement and discourage them from expecting that things always must go their way.

This research unpacks the connection between distributive injustice and job performance, by delineating the unique roles of two pertinent factors (organizational underperformance beliefs and psychological entitlement) in this connection.

This study investigates how and when employees' exposure to organizational leaders who propose major changes might direct those employees toward efforts to mobilize support for innovative ideas. It specifically theorizes a mediating role of performance pressure beliefs and a moderating role of perceived organizational underperformance in this process.

Three-wave, multi-rater survey data were collected among employees and their supervisors across various industries.

A critical explanatory mechanism that links change-oriented leadership with enhanced championing efforts is that employees experience performance-related hardships. The extent to which employees perceive that their organization is unable to meet its own performance targets triggers this process.

For organizational decision makers, the findings identify results-driven pressures as key mechanisms by which employees' exposures to change-oriented leadership can be leveraged to promote novel ideas. This translation is more likely among employees who are convinced that there is significant room for organizational improvement.

This study unravels the previously unexplored link between change-oriented leadership and idea championing, pinpointing the influences of two performance-related aspects: beliefs about strenuous organization-induced performance expectations and perceptions of an underperforming employer.

Eckbo, Masulis, & Norli (2000) question previous examination of initial public offering (IPO) underperformance with the keen argument that the increase in the number of traded shares and the infusion of equity reduce two significant premia in the stock’s return, namely, liquidity risk and financial risk. The new market for high (expected) growth stock in Germany is examined for evidence of underpricing, underperformance, and liquidity improvements during the first two complete years of operation – 1998 and 1999. The initial trading period examines the offering day and also the first ten days of trading (for the investor who can not get allocation but enters the secondary market). The postissue performance study period is taken as the 5‐day period one‐year after the IPO. Using regression of four underpricing measures upon issuing firm characteristics deemed important from the extant literature, we seek to explain the degree of underpricing discovered. We find that substantial underpricing occurs and performance is high one year later, even adjusted for the German market return for the period or the firm‐specific sector performance for the same period. Trading dwindles for most stocks after the offering day. One year later, the trading of the stock is even lower. We do find that the more active the trading in the initial period, the greater the returns and trading one year after.

This paper attempts to explore possible contributing factors of females' outperformance and males' underperformance in the higher education in Pakistan from teachers' perspective. The central question of the study is what are the key factors that affect female and male students' educational performance at the university level? Using Artificial Neural Network (ANN) as a framework, we attempted to predict differentials of the perceived “female outperformance” and “male underperformance” in higher education. We carried out the study by employing quantitative research methods.

The data for the study come from 253 teachers from University of the Punjab-largest and oldest University in Pakistan. We used a structured questionnaire for data collection. The analysis was carried out with the help of ANN model. Statistical Package for Social Sciences (SPSS) was used to analyze the data.

The testing results of ANN indicated 85.3% of teachers' perception was correctly predicted on various dimensions of performance differentials across female and male students in higher education.

The study banks on primary data collected from teachers of the University of University of the Punjab, Pakistan. Thus, the study's universe was limited to one university – University of Punjab. It is purely based on a quantitative approach employing ANN.

The findings of this study have several significant implications, i.e. it makes a significant contribution to the existing body of scholarly texts on the issue of gender reverse change in academic performance in higher education.

The findings of this research, derived from primary data in Pakistan context, qualify this research as an original one. We also claim that this study is one of the first studies on gender reverse change in academic performance among graduate students in a public sector university of Pakistan employing ANN.

Mainstream literature on long‐term performance of initial public offerings focuses on long‐term underperformance. Because underperformance is an anomalous phenomenon, many authors search for explanations based on financial market imperfections. More recently, however, the attention shifts from underperformance to long‐term performance in general. This induces the search for other than financial market imperfections in explaining under‐ or outperformance. This article presents the idea that in many companies the preparation for the IPO and the IPO itself may bring organizational change. It searches for IPO‐related organizational change in The Netherlands with interviews of Dutch corporate officers. The research shows that an IPO primarily changes financial management and financial reporting, but that other types of organizational change may also be relevant. Moreover, long‐term stock market performance was on average higher in companies where IPO‐related organizational changes were reported than in companies where the changes were not reported.

We revisit the performance of seasoned equity offerings (SEOs) in Japan against the backdrop of the Tokyo Stock Exchange's historical nine-year run up from 1980 to 1989, with the time period chosen for the purpose of comparison to previous studies. We analyze the long-run performance of 427 issues or 387 Japanese firms that conducted SEOs from 1980–1990. Initial results indicate that SEOs firms underperform standard benchmarks over subsequent 3- and 5-year periods after issuing. The results from value-weighted portfolios, however, show that SEOs outperform three out of five benchmarks. The results from the Fama-French three factor model show that all of the 16 SEO portfolios (formed by size and book-to-market quartiles) have positively significant intercepts, and most loadings are significant. The size loadings from time series three-factor model of value-weighted portfolio show that SEO sample firm returns exhibit characteristics of large firms as opposed to those of small firms under equally weighted portfolios. Our results support the arguments that (1) the returns of issuing firms are not idiosyncratic, but rather covary with the common factors of nonissuing firms and that (2) the underperformance of SEOs is sensitive to the precise test specifications.