Search results

1 – 10 of over 5000
Open Access
Article
Publication date: 29 September 2022

Francis Donbesuur, Magnus Hultman, Nathaniel Boso and Pejvak Oghazi

The aim of the study is to examine the effects of opportunity creation and discovery on the performance of family firms. Specifically, from the tenets of dynamic capabilities and…

1045

Abstract

Purpose

The aim of the study is to examine the effects of opportunity creation and discovery on the performance of family firms. Specifically, from the tenets of dynamic capabilities and organizational contingency perspectives, this study proposes and tests a framework of how family firms' creation and discovery behavior impact venture growth and the conditions under which such impact can vary.

Design/methodology/approach

The study uses moderated-hierarchical regression to analyze survey data from 156 family-owned small and medium-sized enterprises (SMEs) operating within a sub-Saharan African economy.

Findings

The findings indicate that creation behavior has a curvilinear U-shaped relationship with venture growth, while discovery behavior has a direct positive relationship with venture growth. Further analysis reveals that the curvilinearity of the U-shaped relationship between creation and venture growth will be stronger for older family firms than for younger ones.

Research limitations/implications

The study findings may be limited by the cross-sectional nature of the data and the specific focus on family firms only.

Practical implications

The results highlight the significance of pursuing both opportunities among family firms. In fact, both creation and discovery opportunities are significant drivers of family firm growth, albeit in different capacities. Relatedly, managers of older family firms (compared to younger firms) can invest more in exploiting creative opportunities.

Social implications

From these findings, governments and other stakeholders should create enabling environment and institutional frameworks conducive to exploiting opportunities by entrepreneurial firms.

Originality/value

The study is novel – as it provides unique findings on the performance implications of creation and discovery behavior of entrepreneurial family firms within developing economies.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 16 March 2022

Zheyao Pan, Guangli Zhang and Huixuan Zhang

The aim of this study is to investigate the impact of local political uncertainty on the asymmetric cost behavior (i.e. cost stickiness) for listed firms in China.

1370

Abstract

Purpose

The aim of this study is to investigate the impact of local political uncertainty on the asymmetric cost behavior (i.e. cost stickiness) for listed firms in China.

Design/methodology/approach

In this study, the authors manually collect the turnover data of prefecture-city officials as a measure of exogenous fluctuations in political uncertainty and obtain firm-level financial information from the China Stock Market Accounting Research (CSMAR) database. To perform the analysis, the authors augment the traditional cost stickiness model by including the interaction terms of the prefecture-city official turnover, and firm-level and prefecture-city level control variables.

Findings

The authors find that political turnover leads to a higher degree of cost stickiness, implying that firms retain slack resources when political uncertainty is high. Moreover, the effect of political turnover on cost stickiness is more pronounced for firms residing in regions with weaker institutional environments, and firms that are privately owned and with smaller size. The authors further provide evidence that policy uncertainty and the threat of losing political connection are two underlying channels. Overall, this study documents that the local political process is an important channel that influences corporate operational decisions.

Originality/value

This study provides the first piece of evidence on the relation between political uncertainty and cost stickiness at the local government level. Moreover, the authors propose and demonstrate two underlying channels through which political uncertainty affects firms' asymmetric cost behavior.

Details

China Accounting and Finance Review, vol. 24 no. 2
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 27 January 2023

Bernardo Ramón Dante De la Gala-Velasquez, Americo Hurtado-Palomino and Elbia Myreyle Chavez Zirena

The purpose of this study is to understand the moderating role of market dynamism in the relationship between organizational flexibility and pioneering behavior in tourism firms…

Abstract

Purpose

The purpose of this study is to understand the moderating role of market dynamism in the relationship between organizational flexibility and pioneering behavior in tourism firms in Arequipa, Peru. This study aims to delve into the antecedents of pioneering orientation understood as a strategic stance that favors the creation and launch of new products in the market.

Design/methodology/approach

This empirical study involved the analysis, using partial least squares regression, of 306 surveys administered to mangers of tourism enterprises. Mediation has also been examined using the bootstrapping method.

Findings

The results show that organizational flexibility has a positive impact on pioneering behavior, while market dynamism positively mediates this relationship.

Practical implications

This work provides interesting theoretical and empirical contributions for the management of firms in the tourism sector. Firms should develop capabilities to reconfigure their processes and products to adequately implement and exploit innovations generated in their organizations. In addition, tourism enterprises should improve their performance by creating new products and/or services, aligned with changes in customers' purchasing and consumption habits.

Originality/value

This study aims to elaborate on the background of pioneering orientation understood as a strategic stance that favors the creation and launch of new products in the market. This study also proposes that market dynamism is a factor to be considered in improving this relationship.

Propósito

El objetivo de este trabajo es comprender el papel moderador del dinamismo del mercado en la relación entre la flexibilidad organizacional y el comportamiento pionero en las empresas de turismo de Arequipa, Perú. El estudio pretende profundizar en los antecedentes de la orientación pionera, entendida como una postura estratégica que favorece la creación y lanzamiento de nuevos productos al mercado.

Diseño/metodología/enfoque

El estudio empírico involucró el análisis, mediante regresión de mínimos cuadrados parciales (PLS), de 306 encuestas administradas a gerentes de empresas turísticas. La mediación también se realizó utilizando el método de “bootstrapping”.

Hallazgos

Los resultados muestran que la flexibilidad organizacional tiene un impacto positivo en el comportamiento pionero, mientras que el dinamismo del mercado media positivamente en esta relación.

Implicaciones practices

El trabajo aporta interesantes aportes teóricos y empíricos para la gestión de empresas del sector turístico. Las empresas deben desarrollar capacidades para reconfigurar sus procesos y productos para implementar y explotar adecuadamente las innovaciones generadas en sus organizaciones. Además, las empresas turísticas deben mejorar su desempeño mediante la creación de nuevos productos y/o servicios, alineados con los cambios en los hábitos de compra y consumo de los clientes.

Originalidad/Valor

El estudio pretende profundizar en el trasfondo de la orientación pionera entendida como una postura estratégica que favorece la creación y lanzamiento de nuevos productos en el mercado. También propone que el dinamismo del mercado es un factor a considerar en la mejora de esta relación.

Details

International Journal of Tourism Cities, vol. 9 no. 1
Type: Research Article
ISSN: 2056-5607

Keywords

Open Access
Article
Publication date: 11 April 2023

Mengjie Huang, Kunpeng Sun and Yuan Xie

An emerging line of research examining the role of numerological superstition in the capital market shows that it has significant impact on investor behavior (Bhattacharya, Kuo…

Abstract

Purpose

An emerging line of research examining the role of numerological superstition in the capital market shows that it has significant impact on investor behavior (Bhattacharya, Kuo, Lin, & Zhao, 2018; Hirshleifer, Jian, & Zhang 2018). However, to the authors’ best knowledge, there is a dearth of evidence on whether numerological superstition affects corporate behavior. This study fills this void by examining the association between investors’ numerological superstition and earnings management using Chinese data.

Design/methodology/approach

Chinese culture views 6 and 8 as lucky numbers. Using Chinese publicly traded firms, the authors examine the relation between investors’ numerological superstition and corporate financial reporting behavior.

Findings

The results suggest that firms reporting lucky earnings-per-share (EPS) numbers ending with 6 or 8 are more likely to engage in earnings management. These firms also raise more capital through seasoned equity offerings in the following year; however, they do not have more capital investments. Instead, their controlling shareholders siphon a significant amount of capital through related party transactions. Overall, the findings suggest that managers collude with controlling shareholders to manage earnings by exploiting the superstitious beliefs of minority shareholders.

Originality/value

To the authors’ best knowledge, there is a dearth of evidence on whether numerological superstition affects corporate behavior. This study fills this void by examining the association between investors’ numerological superstition and earnings management using Chinese data.

Details

China Accounting and Finance Review, vol. 25 no. 3
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 28 June 2023

Anshu Duhoon and Mohinder Singh

The increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the…

12409

Abstract

Purpose

The increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the multiple aspects that influence the tax avoidance behavior of corporations and its impacts through the systematic review method.

Design/methodology/approach

This study used “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” as search strings to extract the relevant literature from the Scopus database. This study is a comprehensive analysis of existing literature on corporate tax avoidance behavior. Further, the keyword network analysis has been used to find out the most explored and dry research areas related to corporate tax avoidance behavior using VOSviewer software.

Findings

The study finds that taxation decision is an important managerial decision. Managers adopt tax avoidance tactics to boost postax profits to meet the shareholders’ expectations, particularly of risk-averse shareholders, and sometimes for their benefit also. With this, this study also finds that firms’ characteristics, political connections and corporate social responsibility activities also impact taxation decisions. In addition, the study identifies that tax-avoiding behavior has a contradictory impact on firm value, market growth and corporate transparency disclosure decisions.

Research limitations/implications

The study assists the researchers by providing a brief overview of tax avoidance behavior, for corporates in understanding the implications of tax avoidance, and for policymakers to fix the taxation loopholes and bring necessary tax reforms.

Originality/value

This study adds to the existing literature by providing a thorough overview of theories, determinants and outcomes of corporate tax avoidance behavior.

Details

LBS Journal of Management & Research, vol. 21 no. 2
Type: Research Article
ISSN: 0972-8031

Keywords

Open Access
Article
Publication date: 29 December 2020

Glenny Alawag

This paper aims to understand real earnings management behavior in the context of a parent–subsidiary relationship. It explores the differences between business groups and firms…

1481

Abstract

Purpose

This paper aims to understand real earnings management behavior in the context of a parent–subsidiary relationship. It explores the differences between business groups and firms that do not have controlled subsidiaries and provides potential explanations for any measured difference.

Design/methodology/approach

The study uses the random-effects generalized least squares (GLS) estimation to find the difference between the real earnings management behavior of business groups, represented by the ultimate parent firms and the nonparent firms from 73 countries.

Findings

The results show that ultimate parent firms have lower abnormal production costs and abnormal discretionary expenses than nonparent firms. In contrast, parent firms have higher abnormal cash flow from operations (CFO) than nonparent firms. The results are unexpected because abnormal production costs usually have a dominant direct relationship with abnormal CFO. The results indicate that business groups use a route different from manipulating production costs and discretionary expenses.

Research limitations/implications

The results reveal that parent firms use a route different from manipulating production costs and discretionary expenses. The results can be used to extend the discussion to specific business group cases, such as tracing the route or allocation of real earnings management (REM) pressure from a parent firm to its listed and private subsidiaries, and if the consolidation of minority voting rights and the transitivity of control affect the behavior in its subsidiaries.

Originality/value

Instead of the degree of diversification or affiliation, this paper investigates REM behavior based on the parent firm's control of its subsidiaries. With this approach, the study argues that business groups prefer a route other than manipulating production costs and discretionary expenses. The results may redirect the attention of regulators to the activities of parent firms that need more policing.

Details

Asian Journal of Accounting Research, vol. 6 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 26 August 2021

Emanuela Rondi and Paola Rovelli

This paper aims to examine the influence that family firms’ top management team (TMT) behavior and characteristics exert on their innovation opportunity realization.

1618

Abstract

Purpose

This paper aims to examine the influence that family firms’ top management team (TMT) behavior and characteristics exert on their innovation opportunity realization.

Design/methodology/approach

Data were collected through a survey addressed to a representative sample of Italian firms. The analyzed sample consists of 237 firms, 120 of which are family firms. A series of ordinary least squares models were used to test the four hypotheses.

Findings

Family firms realize fewer innovation opportunities than non-family firms. This result is fully mediated by the knowledge exchange in the TMT as follows: in family firms, the TMT exchanges less knowledge than in non-family firms, which drives their lower realization of innovation opportunities. In family firms TMT, the increase in the non-family members positively influences the TMT knowledge exchange, but only when the time the Chief Executive Officer (CEO) spends in searching for innovation opportunities outside the firm is low. The more the CEO search increases, the more this positive influence decreases, up to the point it becomes negative.

Research limitations/implications

The study contributes to the literature on innovation, knowledge management and organizational design in family firms. Nevertheless, data were collected at a single point in time and in a single country.

Practical implications

The study suggests family firms on how to foster the realization of innovation opportunities. A greater TMT knowledge exchange allows to realize more innovation opportunities and the TMT characteristics emerged as the drivers of this TMT knowledge exchange. As such, family firms should examine the interaction of their TMT composition in terms of non-family and family members with the effort that the CEO deploys to search for innovation opportunities outside the firm.

Originality/value

Empirical investigation of the link between family ownership, absorptive capacity and innovation performance by considering TMT behavior and characteristics.

Open Access
Article
Publication date: 1 February 2021

Junaid Aftab, Huma Sarwar, Anam Amin and Alina Kiran

Leadership has a decisive role in the success of all types of businesses and firms, including small- and medium-sized enterprises (SMEs), and the ethical behavior of leaders is a…

4222

Abstract

Purpose

Leadership has a decisive role in the success of all types of businesses and firms, including small- and medium-sized enterprises (SMEs), and the ethical behavior of leaders is a key component which brings a sense of respect, fulfillment, trustworthiness and acceptance among the employees, which later become visible in their job performance (JP). This study aims to check the immediate effect of ethical leadership (EL) on employee’s JP (EJP) and also explore the indirect mediating effect of corporate social responsibility (CSR) on this EL and EJP nexus.

Design/methodology/approach

Primary data was obtained from the employees of manufacturing SMEs of Northern Italy using a cross-sectional design from the end of 2019 to the start of 2020. This paper circulated 450 self-administered questionnaires using simple random sampling, and 202 (44.88%) valid questionnaires were returned. The PROCESS macro was performed using statistical package for social sciences to ensure whether or not EL affects EJP and is there any mediation effect of CSR present in this nexus.

Findings

The results indicate that EL has a strong positive connection with EJP and CSR. Interestingly, CSR positively influences EJP. Furthermore, the results also report the strong mediating effect of CSR in the nexus of EL and EJP.

Originality/value

This scholarly work seeks to contribute not only to the literature of EL and EJP but also enriches the understanding of this EL-EJP association by highlighting the indirect effect of mediating variable CSR in the SME sector.

Details

Social Responsibility Journal, vol. 18 no. 1
Type: Research Article
ISSN: 1747-1117

Keywords

Open Access
Article
Publication date: 16 November 2021

Amra Tica and Barbara E. Weißenberger

This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes…

1752

Abstract

Purpose

This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’ competitive behaviors which lead to substantial misbehavior and the destruction of reputational capital. The authors are interested in whether and how regulatory activities – in the case analyzed here, changes in insurance regulation regarding sales commissions for insurance brokers – are used as a costly, external behavioral control mechanism (third-loop learning) to terminate a reputational scandal that cannot be stopped by internal controls at a firm level (first-loop and second-loop learning) anymore.

Design/methodology/approach

The paper explores a real-life case in the German insurance industry that peaked in 2012 and has been well documented by broad media coverage, complemented by interviews with leading industry representatives. Using causal process tracing as a methodology, the authors study the factors in the case that led to an industry scandal. The authors further analyze why the insurance firms involved were not able to limit the scandal’s impact by internally controlling their behaviors, but had to call for external regulation, thus imposing costly restrictions on sales and contract processes. To identify the mechanisms underlying this result, theories from the fields of economics (game theory) and sociology (vicious cycle of bureaucracies), as well as organizational learning theory, are used.

Findings

The authors find that individual rationality does not suffice to prevent insurance firms from scandalous business practices, e.g. via implementing appropriate internal behavioral control measures within their organizations. If, as a result, misbehavior leads to reputational scandals, and the destruction of reputational capital spills over to the whole industry, a vicious cycle is set in motion which can be terminated by regulation as an externally enforced control mechanism.

Research limitations/implications

This study is limited to the analysis of a single case study, combining published materials, e.g. broad media coverage, with interviews from representatives of the insurance industry. Nevertheless, the underlying mechanisms that have been identified can be used in other case studies as well.

Practical implications

The paper shows that if firms want to avoid increasing regulation, they must implement strong reputational risk management (RRM) to counteract short-term profit pressure and to avoid restrictive regulation imposed on the industry as a whole. Furthermore, it sheds light on the relevance of spillover effects for RRM, as not only employee behavior within an organization might lead to the destruction of reputational capital but also that from other firms, e.g. from elsewhere within an industry.

Originality/value

The paper contributes by emphasizing a direct causal link between corporate scandals, loss of reputation and regulatory change within the insurance industry. Furthermore, the paper contributes by combining economic theories with organizational theories to understand real-life phenomena.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 1
Type: Research Article
ISSN: 1832-5912

Keywords

Open Access
Article
Publication date: 8 June 2021

Giang Thi Thuy Huynh

The study aims to reveal the effects of transformational leadership on nonfamily employee international intrapreneurship with the mediating role of psychological empowerment.

3627

Abstract

Purpose

The study aims to reveal the effects of transformational leadership on nonfamily employee international intrapreneurship with the mediating role of psychological empowerment.

Design/methodology/approach

The study sample consists of 379 employees at 132 family export and import firms in Ho Chi Minh City of Vietnam. The data is analyzed by a partial least squares structural equation modeling (PLS-SEM).

Findings

The paper reveals that transformational leadership had a positive and significant influence on nonfamily employee international intrapreneurship. The effect of transformational leadership on international intrapreneurship is strongly mediated by psychological empowerment.

Practical implications

Family firms would have to form the architecture and mechanisms for supporting the dedication of nonfamily international intrapreneurship actions with transformational leadership and psychological empowerment.

Originality/value

The paper grants the driving mechanism of the transformational leadership on nonfamily employee international intrapreneurship through the mediating role of employee psychological empowerment in the context of family businesses in an emerging market.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 3
Type: Research Article
ISSN: 2515-964X

Keywords

Access

Only Open Access

Year

All dates (5440)

Content type

1 – 10 of over 5000