Search results
1 – 10 of 581
This study aims to explore the moderating effects of strategy on the relationship between working capital management (WCM) and profitability.
Abstract
Purpose
This study aims to explore the moderating effects of strategy on the relationship between working capital management (WCM) and profitability.
Design/methodology/approach
A data sample of 72,444 firm-year observations of US-listed firms during 2000–2020 was used. The research hypotheses were tested using a panel regression analysis and an appropriate research instrument that signifies a firm’s strategic positioning.
Findings
The prospecting (defending) strategy has a decreasing (increasing) moderating effect on the relationship between WCM and profitability. The empirical findings are not affected by the level of earnings management, the presence of motives to meet earnings targets or the intensity of unreported intangible assets. Additionally, the reported empirical results remain robust within the context of propensity score matching regression analysis, in the presence of nonlinear effects of WCM on profitability, when alternative measures of WCM are used, and between firms with an increase or decrease in future profitability or different levels of efficiency on net WCM investments.
Research limitations/implications
This study may stimulate future research exploring the moderating effects of various variables on the relationship between WCM and operating performance.
Practical implications
The findings highlight the importance of strategy for improving the performance evaluation of WCM policies and the prediction accuracy of the consequences of a strategy on short-term operating performance.
Originality/value
Prior empirical research has documented either a negative or positive relationship between WCM and profitability, which implies the presence of moderating effects of various factors. This study provides empirical evidence of the moderating effects of strategy on the relationship between WCM and profitability.
Details
Keywords
Qurat-ul-Ain Burhan and Muhammad Asif Khan
Empowering leadership has a wide range of positive individual employee-related outcomes. However, a limited number of research studies are available emphasizing the overall…
Abstract
Purpose
Empowering leadership has a wide range of positive individual employee-related outcomes. However, a limited number of research studies are available emphasizing the overall organization-related outcomes. The major aim of this study is to delve into the function of organizational identification and intellectual capital (structural, relational and human) in mediating the relationship between empowering leadership and organizational innovativeness. Depending upon the resource-based view theory, this study comprehensively investigates the sequential effects of empowered leadership on the mediating roles of organizational identification and intellectual capital in organizational innovativeness.
Design/methodology/approach
Data were gathered through a self-administered questionnaire, which got 337 responses from telecom employees. To evaluate the hypotheses, the data were analyzed in SEM-M-Plus using exploratory and confirmatory factor analyses.
Findings
The findings demonstrate that empowering leadership impacts organizational innovativeness with the sequential mediation of organizational identification and intellectual capital (structural, human and social).
Practical implications
Organizations can identify and encourage leaders who exhibit empowering behaviors such as delegating responsibilities, providing autonomy and fostering a sense of ownership among employees. Also, organizations can foster intellectual capital by providing opportunities for learning, training and development. Additionally, knowledge sharing and collaboration can help to enhance the intellectual capital of employees.
Originality/value
While much research has been conducted on empowering leadership, the continued development of knowledge and the emergence of new perspectives related to identification and intellectual capital highlights the importance of exploring alternative paths that have been overlooked. Therefore, there is a pressing need to conduct research that takes into account these additional factors.
Details
Keywords
Little is known about the determinants of supply chain finance (SCF) adoption among small and medium-sized enterprises (SMEs) in developing countries. This study aims to address…
Abstract
Purpose
Little is known about the determinants of supply chain finance (SCF) adoption among small and medium-sized enterprises (SMEs) in developing countries. This study aims to address this relevant research gap and hence, draws on the resource-based view and transaction cost economies to empirically investigate five factors that make SCF adoption practicable among SMEs in Ghana.
Design/methodology/approach
The approach involves a sample of 257 SME managers/owners and modelling via structural equations modelling.
Findings
All five factors (innovative capability, information sharing, inter- and intra-firm collaboration, external financing and trade process digitization) were found to impact positively and significantly on SCF adoption. The findings provide SME managers/owners with a research model which guides them on how to settle the SCF process.
Research limitations/implications
This paper used a cross-sectional survey, which makes it impossible to access changes over time. In addition, the use of quantitative method limits respondents from expressing their feelings fully. Using a mixed or qualitative methodology will provide avenues for future research.
Practical implications
This paper offers a completive advantage for Ghanaian SMEs to strengthen their relationships while collaborating with each other. The findings suggest that by adopting SCF solutions, SMEs can optimize their liquidity and working capital. The factors underpinning SCF adoption are of incredible attractiveness for SME managers/owners to discover the relevant practice of SCF solutions. SMEs should adopt SCF strategies for improving their capability to respond promptly to transactions.
Originality/value
This paper is among the few papers that have examined these five factors in a developing economy context. The study also provides new understanding of the factors that influence SCF adoption in the context of a developing economy.
Details
Keywords
Emmanuel Dele Omopariola, Abimbola Olukemi Windapo, David John Edwards, Clinton Ohis Aigbavboa, Sunday Ukwe-Nya Yakubu and Onimisi Obari
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective…
Abstract
Purpose
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective project cash flow process. However, scant research has been undertaken to empirically establish the cash flow performance and domino effect of APS on project and organisational performance.
Design/methodology/approach
The epistemological design adopted a positivist philosophical stance augmented by deductive reasoning to explore the phenomena under investigation. Primary quantitative data were collected from 504 Construction Industry Development Board (CIDB) registered contractors (within the grade bandings 1–9) in South Africa. A five-point Likert scale was utilised, and subsequent data accrued were analysed using structural equation modelling (SEM).
Findings
Emergent findings reveal that the mandatory use of an APS does not guarantee a positive project cash flow, an improvement in organisational performance or an improvement in project performance.
Practical implications
The ensuing discussion reveals the contributory influence of APS on positive cash flow and organisational performance, although APS implementation alone will not achieve these objectives. Practically, the research accentuates the need for various measures to be concurrently adopted (including APS) towards ensuring a positive project cash flow and improved organisational and project performance.
Originality/value
There is limited empirical research on cash flow performance and the domino effect of APS on project and organisational performance in South Africa, nor indeed, the wider geographical location of Africa as a continent. This study addresses this gap in the prevailing body of knowledge.
Details
Keywords
Mine Karatas-Ozkan, Renan Tunalioglu, Shahnaz Ibrahim, Emir Ozeren, Vadim Grinevich and Joseph Kimaro
Sustainability is viewed as an encompassing perspective, as endorsed by the international policy context, driven by the UN’s Sustainable Development Goals (SDGs). We aim to…
Abstract
Purpose
Sustainability is viewed as an encompassing perspective, as endorsed by the international policy context, driven by the UN’s Sustainable Development Goals (SDGs). We aim to examine how women entrepreneurs transform capitals to pursue sustainability, and to generate policy insights for sustainability actions through tourism entrepreneurship.
Design/methodology/approach
Applying qualitative approach, we have generated empirical evidence drawing on 37 qualitative interviews carried out in Turkey, whereby boundaries between traditional patriarchal forces and progressive movements in gender relations are blurred.
Findings
We have generated insights into how women entrepreneurs develop their sustainability practice by transforming their available economic, cultural, social and symbolic capitals in interpreting the macro-field and by developing navigation strategies to pursue sustainability. This transformative process demonstrates how gender roles were performed and negotiated in serving for sustainability pillars.
Research limitations/implications
In this paper, we demonstrate the nature and instrumentality of sustainable tourism entrepreneurship through a gender lens in addressing some of these SDG-driven challenges.
Originality/value
We advance the scholarly and policy debates by bringing gender issues to the forefront, discussing sustainable tourism initiatives from the viewpoint of entrepreneurs and various members of local community and stakeholder in a developing country context where women’s solidarity becomes crucial.
Details
Keywords
Luuk Mandemakers, Eva Jaspers and Tanja van der Lippe
Employees facing challenges in their careers – i.e. female, migrant, elderly and lower-educated employees – might expect job searches to have a low likelihood of success and might…
Abstract
Purpose
Employees facing challenges in their careers – i.e. female, migrant, elderly and lower-educated employees – might expect job searches to have a low likelihood of success and might therefore more often stay in unsatisfactory positions. The goal of this study is to discover inequalities in job mobility for these employees.
Design/methodology/approach
We rely on a large sample of Dutch public sector employees (N = 30,709) and study whether employees with challenges in their careers are hampered in translating job dissatisfaction into job searches. Additionally, we assess whether this is due to their perceptions of labor market alternatives.
Findings
Findings show that non-Western migrant, elderly and lower-educated employees are less likely to act on job dissatisfaction than their advantaged counterparts, whereas women are more likely than men to do so. Additionally, we find that although they perceive labor market opportunities as limited, this does not affect their propensity to search for different jobs.
Originality/value
This paper is novel in discovering inequalities in job mobility by analyzing whether employees facing challenges in their careers are less likely to act on job dissatisfaction and therefore more likely to remain in unsatisfactory positions.
Details
Keywords
Guido Migliaccio and Andrea De Palma
This study illustrates the economic and financial dynamics of the sector, analysing the evolution of the main ratios of profitability and financial structure of 1,559 Italian real…
Abstract
Purpose
This study illustrates the economic and financial dynamics of the sector, analysing the evolution of the main ratios of profitability and financial structure of 1,559 Italian real estate companies divided into the three macro-regions: North, Centre and South, in the period 2011–2020. In this way, it is also possible to verify the responsiveness to the 2020 pandemic crisis.
Design/methodology/approach
The analysis uses descriptive statistics tools and the ANOVA method of analysis of variance, supplemented by the Tukey–Kramer test, to identify significant differences between the three Italian macro-regions.
Findings
The study shows the increase in profitability after the 2008 crisis, despite its reverberation in the years 2012–2013. The financial structure of companies improved almost everywhere. The pandemic had modest effects on performance.
Research limitations/implications
In the future, other indices should be considered to gain a more comprehensive view. This is a quantitative study based on financial statements data that neglects other important economic and social factors.
Practical implications
Public policies could use this study for better interventions to support the sector. In addition, internal management can compare their company's performance with the industry average to identify possible improvements.
Social implications
The research analyses an economic field that employs a large number of people, especially when considering the construction and real estate services covered by this analysis.
Originality/value
The study contributes to the literature by providing a quantitative analysis of industry dynamics, with comparative information that can be deduced from financial statements over the years.
Details
Keywords
Upon the premises of social exchange theory (SET), this study aimed at hypothesizing and examining a serial mediation model that investigated the underlying mechanism through…
Abstract
Purpose
Upon the premises of social exchange theory (SET), this study aimed at hypothesizing and examining a serial mediation model that investigated the underlying mechanism through which a high-performance work system (HPWS) affects individuals’ future time perspective (FTP).
Design/methodology/approach
The hypothesized relationships were examined using responses collected from 275 employees from 15 local private banks and 40 established branches through a proportionate stratified sampling technique. The statistical package for social sciences (SPSS) PROCESS macro 3.0 and analysis of moment’s structure (AMOS) 24.0 were employed for data analysis purposes.
Findings
The study revealed that HPWS is indirectly related to the individuals’ FTP through workplace social courage (WSC) and employee well-being (EWB) sequentially. Prescriptions for theoretical and managerial implications were discussed, and future research viewpoints with limitations were acknowledged.
Originality/value
This study illuminated the underlying mechanism and theoretical logic linking HPWS and individuals’ FTP by proposing the serial mediating effect of WSC and EWB.
Details
Keywords
Mark R. Mallon and Stav Fainshmidt
Because family businesses are highly complex enterprises, researchers need appropriate theoretical and methodological tools to study them. The neoconfigurational perspective and…
Abstract
Purpose
Because family businesses are highly complex enterprises, researchers need appropriate theoretical and methodological tools to study them. The neoconfigurational perspective and its accompanying method, qualitative comparative analysis, are particularly well suited to phenomena characterized by complex causality, but their uptake in family business research has been slow and fragmented. To remedy this, the authors highlight their unique ability to address research questions for which other approaches are not well suited and discuss how they might be applied to family business phenomena.
Design/methodology/approach
The authors introduce the core tenets of the neoconfigurational perspective and how its set-theoretic epistemology differs from traditional approaches to theorizing and analysis. The authors then use a dataset of family firms to present a primer on conducting qualitative comparative analysis and interpreting the results.
Findings
The authors find that family firm resources can be combined in multiple ways to affect business survival, suggesting that resources are substitutable and complementary. The authors discuss how the unique features of the neoconfigurational approach, namely equifinality, conjunctural causation and causal asymmetry, can be fruitfully applied to break new ground in scholarly understanding of family businesses.
Originality/value
This article allows family business researchers to apply the neoconfigurational approach without first having to consult multiple and disparate sources often written for other disciplines. This article explicates how to leverage the theoretical and empirical advantages of the neoconfigurational approach in the context of family businesses, supporting a more widespread adoption of the neoconfigurational perspective in family business research.
Details
Keywords
This study compares the motives of holding cash between developed (Australian) and developing (Malaysian) financial markets.
Abstract
Purpose
This study compares the motives of holding cash between developed (Australian) and developing (Malaysian) financial markets.
Design/methodology/approach
For the period 2006–2020, the t-test, fixed-effect and generalised method of moment (GMM) model have been applied to a sample of 1878 (1,165 Australian and 713 Malaysian) firms.
Findings
The empirical results reveal that firms in developed financial markets hold higher cash compared to the developing financial markets. The findings confirm that motives to hold cash differ between developed and developing financial markets. The GMM findings further show that cash holdings (CH) in Australia are higher due to higher ratios of cash flow, research and development (R&D) and return on assets (ROA), and lower due to larger dividend payments. In the Malaysian market, however, cash flows and R&D are ineffectual, ROA falls and dividend payments rise CH.
Practical implications
The study helps managers, practitioners and investors understand that firms' distinct economic, institutional, accounting and financial environments are important. To attain the desired outcomes, they must thus comprehend and consider these considerations while developing suitable liquidity strategies.
Originality/value
To the authors' best knowledge, this is the initial research demonstrating how varied cash motives and their ramifications are in developed and developing financial markets. Therefore, this study identifies the importance that CH motives varied among financial markets and that findings from a particular market cannot be generalised to other markets because of the market and financial structural variations.
Details