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11 – 20 of over 144000Manmohan D. Chaubey and Mukund S. Kulkarni
Recently the topic of executive compensation has received considerable attention in the popular press as well as in the academia. It is argued that “… top executives would get…
Abstract
Recently the topic of executive compensation has received considerable attention in the popular press as well as in the academia. It is argued that “… top executives would get paid handsomely for first class performance, and would lose out when they flopped.“ This study is an attempt to find out whether executive compensation is in fact related to firm performance. Specifically, this study investigates whether the determinants of executive compensation in firms with above average performance are different from those in firms with below average performance. The underlying hypothesis being that the executive compensation in the above average firms is related to performance variables.
Yahya N. Al Serhan, Craig C. Julian and Zafar U. Ahmed
The purpose of this paper is to develop and justify a theoretical framework for analyzing the relationship between manufacturing strategy, business strategy, time-based…
Abstract
Purpose
The purpose of this paper is to develop and justify a theoretical framework for analyzing the relationship between manufacturing strategy, business strategy, time-based manufacturing competence, capability and competitiveness and their impact on firm performance for firms operating in the manufacturing sector. Many executives and scholars have argued that time is an important component for developing a brilliant strategy to achieve a sustainable competitive advantage for the firm.
Design/methodology/approach
This paper provides a theoretical framework primarily concerned with the relationship between time-based manufacturing competence, competitive priorities and firm performance. The framework suggests that firms focusing on time as a strategic factor at both strategic levels – business strategy and manufacturing strategy – can achieve a multi-competitive advantage, and, in turn, high performance.
Findings
To realize the level of performance associated with time-based manufacturing competence, it is essential for firms to identify the areas in which time can be reduced. These include reduction in design lead time, product concept to production; time-based competition for product-to-market firms; time-based manufacturing competence; product development activities; fast-to-product; and customer service.
Originality/value
This article provides a theoretical framework for linking manufacturing strategy to business strategy and performance to help expand the body of knowledge for other researchers to follow.
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Thomas L. Powers and William Hahn
This paper reports research on the number of competitive methods used by firms and their impact on firm performance. The research was based on a survey of banks in the New England…
Abstract
This paper reports research on the number of competitive methods used by firms and their impact on firm performance. The research was based on a survey of banks in the New England Federal Reserve district. It was found that an increased number of competitive methods resulted in a higher level of firm performance. It was also found that there is an optimal range of competitive methods that positively impact on performance. Firms that emphasized between 16 and 20 competitive methods realized higher performance than firms below or above this optimum level. The results of this study have important theoretical, marketing, and managerial implications that are presented and discussed.
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Marlin R.H. Jensen, Beverly B. Marshall and William N. Pugh
This study seeks to investigate whether a firm's financial disclosure size can help investors predict performance.
Abstract
Purpose
This study seeks to investigate whether a firm's financial disclosure size can help investors predict performance.
Design/methodology/approach
Controlling for size and industry, the relationship between financial disclosure size and subsequent stock performance for all Standard and Poor's (S and P) 500 firms over a seven‐year period is examined.
Findings
It is found that firms with smaller 10‐Ks tend to have better subsequent performance relative to their industries. However, the findings suggest that the performance explanation may not lie in the size of the 10‐K itself. Firms with smaller 10‐Ks tend to perform better because they are smaller in terms of total assets and more focused, with fewer business segments.
Research limitations/implications
While the study is limited to examination of S and P 500 firms, no consistent evidence is found of a relation between changes in a firm's disclosure size and future performance changes.
Practical implications
The results suggest that more disclosure relative to a firm's size is not necessarily bad. Investors attempting to predict future firm performance cannot use the firm's disclosure size alone.
Originality/value
This paper extends two recent Merrill Lynch studies that appear to contradict the extant financial literature's view that increased disclosure reduces the informational asymmetry problem. While the results confirm the findings of these studies, they suggest that the performance explanation may not lie in the size of the 10‐K itself.
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Ahmed Riahi‐Belkaoui and Ronald D. Picur
This study examined the relation between performance plan adoption and profitability. It posits that the nature of this relation varies with the ownership structure of the firm…
Abstract
This study examined the relation between performance plan adoption and profitability. It posits that the nature of this relation varies with the ownership structure of the firm, arguing that following performance plan adoption, profitability will increase in owner‐controlled firms. Results based on data from a usable sample of 70 US firms support this contention with respect to owner‐controlled firms but not manager‐controlled firms.
James W. Bannister, Paul H. Mihalek and Carl S. Smith
Performance plans, a form of executive compensation plan, are designed to reward management for improved performance over the long run. Various accounting measures can be used to…
Abstract
Performance plans, a form of executive compensation plan, are designed to reward management for improved performance over the long run. Various accounting measures can be used to evaluate this performance: return on assets (ROA), return on equity (ROE), and earnings per share (EPS) are examples. This study employs these, as well as cash flow measures, on a sample of matched performance plan adopting and control firms to examine whether there is a difference in performance associated with the adoption of a plan. The results indicate that adopting firms display significantly greater growth in ROA, ROE, and working capital from operations to total assets (WCFO) than do control firms. This result continues to hold for ROE, but not ROA or WCFO, after controlling for economy‐wide growth.
Worachet Onngam and Peerayuth Charoensukmongkol
The purpose of this study was to analyze the effects of social media analytics on firm performance using a sample of small and medium enterprises (SMEs) in Thailand. This study…
Abstract
Purpose
The purpose of this study was to analyze the effects of social media analytics on firm performance using a sample of small and medium enterprises (SMEs) in Thailand. This study also investigated whether entrepreneurial orientation (EO) moderated the effects of social media analytics on firm performance.
Design/methodology/approach
This study used SMEs listed in the Department of Business Development of Thailand as the sampling frame. Probability sampling was used to draw the sample. A questionnaire survey was used to collect data from 334 firms. The data were analyzed using partial least squares structural equation modeling.
Findings
The results supported the positive association between social media analytics practices on firm performance. Moreover, this study found that EO moderated this association significantly. In particular, the positive association between social media analytics practices on firm performance was higher for firms that exhibit a high EO than those that exhibit a low EO. This result indicated that firms that implement social media analytics practices achieved higher performance when they exhibited a high EO.
Practical implications
Social media data analytics should be implemented to strengthen the technological competence of firms. Moreover, firms should integrate EO practices into their implementation of social media analytics to increase their ability to generate substantial improvements in their strategic implementation, thereby enabling them to gain sustainable competitiveness in their market.
Social implications
Because SMEs are the driving force for economic growth and development in Thailand, their ability to achieve higher performance when they effectively integrate EO practices into their implementation of social media data analytics could be beneficial for the sustainable development of Thailand, especially in the current data-driven era.
Originality/value
The result that EO moderates the effect in enhancing social media analytics practices’ influence on firm performance provides new knowledge that extends the boundary of research on this topic. The authors provided a theoretical explanation to clarify the way the implementation of social media analytics practices should be integrated with EO to increase the level of performance that firms achieve from such practices.
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Jiali Fang, Yining Tian and Yuanyuan Hu
The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent…
Abstract
Purpose
The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent firms.
Design/methodology/approach
We conduct regression analyses using a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020 to examine whether CSR performance is similar from one firm to the next as executives switch jobs.
Findings
We find a positive relationship between the CSR performance of former and subsequent firms under job-hopping executives. This relationship is the strongest in the year of the job switch; it weakens in the second year and eventually disappears in the third year. In addition, we show that this relationship benefits different CSR stakeholder groups and is contingent on executive and subsequent firm attributes and job-hopping characteristics. Furthermore, we demonstrate that firms that hire a new chief executive officer from a firm with a strong track record in CSR, the new firm experiences a significant surge in CSR performance compared with firms that do not experience such a shock.
Practical implications
This study has implications for executive hiring decisions.
Originality/value
This study extends the understanding of CSR determinants through the lens of inter-organisational ties associated with job-hopping executives.
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Ramesh Dangol, Rangamohan V. Eunni, Patrick J. Bateman and Alina Marculetiu
This study aims to investigate the conflicting views in supply chain and strategic management literature regarding cooperative supply chain relationships (CSCR) and firm…
Abstract
Purpose
This study aims to investigate the conflicting views in supply chain and strategic management literature regarding cooperative supply chain relationships (CSCR) and firm performance. Supply chain literature suggests a universally positive impact of CSCR on performance, irrespective of a firm’s strategy. In contrast, strategic management literature contends that the effectiveness of CSCR depends on their alignment with the firm’s competitive strategy. The research aims to clarify this disparity, offering insights into the strategic use of CSCR for enhancing firm performance.
Design/methodology/approach
This paper theorizes the integration of perspectives for the impact of CSCR on firm performance by examining the relationships considering the alignment of cost leadership and product differentiation strategies with supplier and customer relationships. Plant-level survey data is analyzed using regression techniques to test four hypotheses.
Findings
All four main relationships (cost leadership, product differentiation, supplier relationship and customer relationship) on firm performance are statistically significant. However, cost leadership firms are better aligned to their chosen strategy when they have strong relationships with suppliers, whereas similar relationships with customers create misalignment, negatively influencing firm performance. In contrast, product differentiators benefit by investing in relationships with customers rather than with suppliers.
Practical implications
A firm’s performance does not solely depend on its CSCR efforts but on aligning them with the firm’s overall strategy. Therefore, managers need to be cognizant of the firm’s competitive strategy when investing in CSCR. Failing to do so could negatively impact firm performance and, eventually, its ability to compete in the marketplace.
Originality/value
Scholars have advocated for the importance of examining competing perspectives of phenomena, both within and across various bodies of literature, as cross-disciplinary analysis often brings enhanced focus and depth, leading to improved understanding. This research is one of the initial efforts to empirically analyze the varying perspectives on CSCR in supply chain and strategic management literature. This cross-disciplinary approach can yield a more integrated perspective.
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Yuying Wu, Min Zhang and Zhiqiang Wang
This study empirically investigates the impacts of technological innovation and operational efficiency on environmental performance and the moderating effects of environmental…
Abstract
Purpose
This study empirically investigates the impacts of technological innovation and operational efficiency on environmental performance and the moderating effects of environmental orientation.
Design/methodology/approach
We develop a conceptual framework based on the Porter Hypothesis. We collect a sample of 850 listed firms in China between 2010 and 2019. The fixed effect model was used to analyse the data.
Findings
The empirical findings reveal that technological innovation indirectly enhances environmental performance through operational efficiency and partially mediates this impact. We also find that environmental orientation strengthens the positive impacts of technological innovation and operational efficiency on environmental performance.
Originality/value
This study contributes to the literature by revealing that technological innovation is positively associated with operational efficiency and environmental performance, which suggests that technological innovation can simultaneously enhance business and environmental performance. Hence, this study provides empirical support for the Porter Hypothesis. The results also extend the Porter Hypothesis by revealing how technological innovation affects environmental performance and under what conditions technological innovation has a greater impact on environmental performance.
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