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1 – 7 of 7Ronaldo Parente, Keith James Kelley, Yannick Thams and Marcelo J. Alvarado-Vargas
Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition…
Abstract
Purpose
Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition (CBMA) location choices, it is critical to examine the acquirers’ ownership advantages.
Design/methodology/approach
Using a sample of CBMAs undertaken by US firms from 1999 to 2015, the paper explores the extent to which acquiring firm ownership advantages – financial and innovation capabilities – influence target firm country selection in relation to regulative distance.
Findings
It is shown that acquiring firms with greater innovative capabilities are likely to choose target firms in nations with less regulative distance from their home market; whereas firms with greater financial capabilities target firms in more distant nations.
Originality/value
This paper builds on the important research on CBMA activity, focusing on the largely neglected pre-acquisition resources in relation to the regulative distance between target firms and the acquirer.
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Whitney Douglas Fernandez, Yannick Thams and Mark Lehrer
Although resource dependence theory (RDT) has substantially deepened the understanding of the function and role of boards, no systematic review of this body of work has yet been…
Abstract
Purpose
Although resource dependence theory (RDT) has substantially deepened the understanding of the function and role of boards, no systematic review of this body of work has yet been undertaken. The purpose of this paper is to synthesize prior research on the strategically relevant resources provided by board members to their organization in the light of RDT and indicate avenues for future research.
Design/methodology/approach
The review covers 79 research articles from 1978 to 2016 dealing with the resource provision of boards of directors.
Findings
Board capital research most often assumes a positive, linear relationship between board capital, resource provision and ultimately firm-level performance outcomes. This tendency tends to exclude from view the possibility of important trade-offs relevant to both theory and practice. Future research will need to incorporate more complex models that take into consideration nonlinear and curvilinear effects. The authors outline opportunities to advance board research by refining the methodological techniques employed.
Originality/value
By recommending investigation of the important trade-offs inherent in board composition, the authors seek to inspire future research that offers practical guidance for improving the effectiveness of corporate boards.
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Whitney Douglas Fernandez and Yannick Thams
This paper aims to draw on insights from team learning theory and stakeholder theory to examine the influence of board composition on firms’ stakeholder management practices. The…
Abstract
Purpose
This paper aims to draw on insights from team learning theory and stakeholder theory to examine the influence of board composition on firms’ stakeholder management practices. The authors posit that board diversity is likely to enhance stakeholder management by shaping organizational goals by placing emphasis on the interests of a wide variety of stakeholders and providing firms with relevant knowledge to enhance their ability manage these interests. The authors further theorize on the moderating role of boards’ learning environment, which they conceptualized as an important complementary governance-related factor, likely to further boards’ ability to enhance stakeholder management.
Design/methodology/approach
The authors test these predictions using the generalized estimating equations (GEE) technique on a panel of S&P 500 firms observed from 2001 to 2011.
Findings
The findings provide evidence that more diverse boards in terms of gender, nationality and race/ethnicity are generally associated with more effective stakeholder management. Further, the findings also suggest that boards’ co-working experience moderates the relationship between gender and national diversity and stakeholder management.
Originality/value
While corporate governance research surveys many strategic implications of board composition, limited attention has been paid to the interplay of board characteristics with stakeholder management. This study is among the first to the authors’ knowledge to explore the impact of board diversity on stakeholder management using team learning research, thus drawing attention to the role of boards’ co-working experience in shaping their ability to impact firms’ outcomes.
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Keith James Kelley, Thomas A. Hemphill and Yannick Thams
This paper aims to explore the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) from a shared value perspective. Adopting…
Abstract
Purpose
This paper aims to explore the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) from a shared value perspective. Adopting reputation as a multilevel form of value that mediates the CSR–CFP relationship, the paper explains how CSR initiatives may enhance both firm and country reputation and how the amount of shared value between the two leads to CFP.
Design/methodology/approach
The paper first establishes the theoretical foundation for the relationship between CSR and CFP. It then draws connections to a more recent stream of literature surrounding the concept of creating shared value to expand upon this relationship, adopting reputation as a multilevel form of shared value that mediates the CSR–CFP relationship. The paper further discusses moderating influences of this relationship that may vary contextually with emerging economies such as those in Latin America.
Findings
The paper argues that as markets become further developed, CSR initiatives will create a higher proportion of shared reputational value between a corporation and country. This is the result of from aligning CSR initiatives that benefit a society, with the strategic goals of the firm – the essence of creating of shared value – but is more difficult in emerging markets, especially volatile ones.
Originality/value
This paper offers insight into a complex relationship between CSR, shared reputational value and CFP by introducing the more recent concept of creating shared value. Several propositions related to this general relationship, and some related to the difference among emerging markets (such as those in Latin America), address the need for more research related to corporate and country reputation, creating shared value and in the emerging market context.
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Keith James Kelley and Yannick Thams
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we…
Abstract
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we discuss how the creation of reputational value at the firm level may also lead to value shared by the industries and countries in which a firm operates, and vice versa. In examining the recursive and dynamic relationships, strategic implications emerge with regard to managing reputations globally. We argue that the value of reputation is determined by the ability to meet the expectations of stakeholders with respect to what they as an audience perceive as important. Stakeholders’ expectations and perceptions of what is valuable fluctuate across different markets and the more heterogeneous the markets in which a firm diversifies internationally, the more difficult it will be to manage all these expectations. By building on our understanding of firm, industry, and country reputation, and the recursive relationships between them, we contend that creating shared value (CSV), as part of the global reputation management process (GRM), is likely to be easier when there is contextual similarity and limited product diversification. Building on previous frameworks, and employing signaling theory, we create a simplified model of GRM that highlights CSV in the form of multilevel reputation. Distinctions are drawn between being efficient and effective as part of the GRM process and a corresponding typology is created. The chapter concludes with a discussion of strategic implications, alongside a few recommendations, and possible directions for future research.
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