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1 – 10 of over 247000Adela Cornelia Fedora, Felizia Arni Rudiawarni, Dedhy Sulistiawan and Abdurrahman Gümrah
The purpose of this study is to investigate the connection between earnings management, business strategy, and market competition.
Abstract
Purpose
The purpose of this study is to investigate the connection between earnings management, business strategy, and market competition.
Design/methodology/approach
The study utilizes data from non-financial companies listed on the Indonesia and South Korea Stock Exchange between 2017 and 2021, involving 2,598 firms from Indonesia and 3,256 firms from South Korea. We use data panel analysis to explore the relationships between variables.
Findings
Firms using cost leadership are prone to earnings management, while differentiation strategies are less inclined to do so. Market competition negatively correlates with earnings management in Indonesia and South Korea. Market competition moderates the relationship between differentiation strategy and earnings management in both countries. When profitability is considered, the results remain consistent, particularly in Indonesia.
Research limitations/implications
This research enriches previous studies on earnings management and business strategy by examining the extent of industry competitiveness in developed and developing markets.
Practical implications
This finding is significant for managers, guiding them in the selection of an appropriate business strategy within a competitive environment.
Originality/value
This study is unique in that it examines the subject matter in both developed and developing countries, specifically Indonesia and South Korea, to compare the differences.
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Aylin Ates, Peter McKiernan and Akwal Sunner
Strategic management is traditionally seen as an exclusive managerial task rather than inclusive where accountability is reserved for top managers. However, contemporary strategy…
Abstract
Strategic management is traditionally seen as an exclusive managerial task rather than inclusive where accountability is reserved for top managers. However, contemporary strategy management practices increasingly pay attention to equality, diversity, and inclusion (EDI) by engaging with broader internal and external stakeholders via more open business models such as ecosystems. Hence, central to our examination is the concept of openness disposition, which in the context of strategic management refers to the tendency of individuals, collectives, and managers to make strategy transparent, participatory, and/or inclusive, or look for closure. While openness in strategy is regarded as a positive means of contemporary management, fostering diversity, creativity, innovation, and empowerment, there are some researched downsides too. The purpose of this chapter is to address the openness puzzle in strategy and gain a deeper understanding of the dilemmas of bottom-up strategy initiatives, and investigate the associated dilemmas, if any in the context of manufacturing small and medium enterprises (SMEs). We contribute to addressing the performative effects of the dynamic expansion and contraction in openness within the SME strategy process while using the concept of openness dilemmas, tensions, and disposition. Using the Management Control Theory, this chapter will combine theory with SME practitioners’ experiences of bottom-up strategy initiatives to increase EDI in their organisations. Based on findings that emerged from a four-year longitudinal multiple case study research with 10 European SMEs, we found that bottom-up strategy exercises are more interactive. They consider a greater number of views, increase legitimacy, and EDI at the workplace, and yield more process benefits, but are time-consuming and difficult to organise that require special attention to the capability, reciprocity, and credibility dimensions.
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Paul Drnevich and Mark Shanley
Most research issues in strategic management are essentially problem focused. To one extent or another, these problems often span levels of analysis, may align with different…
Abstract
Most research issues in strategic management are essentially problem focused. To one extent or another, these problems often span levels of analysis, may align with different performance metrics, and likely hold different implications from various theoretical perspectives. Despite these variations, research has generally approached questions by taking a single perspective or by contrasting one perspective with a single alternative rather than exploring integrative implications. As such, very few efforts have sought to consider the performance implications of using combined, integrated, or multi-level perspectives. Given this reality, what actually constitutes “good” performance, how performance is effectively measured, and how performance measures align with different perspectives remain thorny problems in strategic management research. This paper discusses potential extensions by which strategic management research and theory might begin to address these conflicts. We first consider the multi-level nature of strategic management phenomena, focusing in particular on competitive advantage and value creation as core concepts. We next present three approaches in which strategic management theories tend to link levels of analysis (transaction, management, and atmosphere). We then examine the implications arising from these multi-level approaches and conclude with suggestions for future research.
Gábor Nagy, Carol M. Megehee and Arch G. Woodside
The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why…
Abstract
The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. The present study applies complexity theory tenets and a “neo-configurational perspective” of Misangyi et al. (2016) in proposing complex antecedent conditions affecting complex outcome conditions. Rather than examining variable directional relationships using null hypotheses statistical tests, the study examines case-based conditions using somewhat precise outcome tests (SPOT). The complex outcome conditions include firms with high financial performances in declining markets and firms with low financial performances in growing markets – the study focuses on seemingly paradoxical outcomes. The study here examines firm strategies and outcomes for separate samples of cross-sectional data of manufacturing firms with headquarters in one of two nations: Finland (n = 820) and Hungary (n = 300). The study includes examining the predictive validities of the models. The study contributes conceptual advances of complex firm orientation configurations and complex firm performance capabilities configurations as mediating conditions between firmographics, firm resources, and the two final complex outcome conditions (high performance in declining markets and low performance in growing markets). The study contributes by showing how fuzzy-logic computing with words (Zadeh, 1966) advances strategic management research toward achieving requisite variety to overcome the theory-analytic mismatch pervasive currently in the discipline (Fiss, 2007, 2011) – thus, this study is a useful step toward solving the crucial problem of how to explain firm heterogeneity.
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The paper explores the relationship between organizational strategies and human resource management strategies. Data was collected from owners or topmanagers and managers in…
Abstract
The paper explores the relationship between organizational strategies and human resource management strategies. Data was collected from owners or top managers and managers in charge of human resource issues of 100 small and medium sized companies operating in Turkey. Human resource strategies were analyzed on a unipolar dimension ranging from internal orientation to external orientation. An instrument was developed to measure Human resource practices based on human resource functions. Organizational strategy was measured using an instrument developed by Zajac and Shortell (1989) based on Miles and Snow’s (1978; 1987) typology. The study revealed that prospector organizations were more likely to have an externally oriented human resource approach. A general external orientation in human resources is reflected in the recruitment, retention, and performance management functions of the organizations.
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Alexeis Garcia-Perez, Alessandro Ghio, Zeila Occhipinti and Roberto Verona
This paper provides a conceptual discussion of the bidirectional relationship between knowledge management (KM) and intellectual capital (IC) in a specific subset of…
Abstract
Purpose
This paper provides a conceptual discussion of the bidirectional relationship between knowledge management (KM) and intellectual capital (IC) in a specific subset of knowledge-based organisations, i.e. professional sport organisations. Through the review and conceptual discussion of two relevant research themes, i.e. KM strategies for IC value creation and IC codification, this paper aims to highlight research gaps useful to future research.
Design/methodology/approach
The authors apply a systematic literature review method to analyse 66 management and accounting studies on KM and IC in sport organisations. Internal and external validity tests support the methodology adopted.
Findings
The authors provide a conceptual model to explain how KM strategies about IC investments can be optimal, i.e. they create value for all the stakeholders but also suboptimal, i.e. they create value only for a group of stakeholders. Next, they provide evidence of the opportunistic use of the codification associated with IC investments that impair financial reporting information transparency and mislead managers and investors.
Practical implications
The results are informative for managers, regulators and policymakers to mitigate the inefficiencies regarding KM and IC codification and decisions.
Originality/value
This study contributes to the understanding of the bidirectional relationship between KM and IC in knowledge-based organisations by focussing on professional sport organisations in which KM and IC have played an important role for a long time. It also includes future avenues for advances in managing, measuring and reporting IC.
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Jingxiao Zhang, Hui Li, Vera Li, Bo Xia and Martin Skitmore
Service-oriented innovation economies are becoming the new trend for the construction industry. Benchmarking the quality management level of developed countries and improving…
Abstract
Purpose
Service-oriented innovation economies are becoming the new trend for the construction industry. Benchmarking the quality management level of developed countries and improving quality management are also becoming necessities for promoting innovation in the economy. The purpose of this study is to analyse the internal relationships between the five enablers of the European Foundation for Quality Management (EFQM) Excellence model, based on a market-oriented strategy, to serve as a framework for managing and improving quality.
Design/methodology/approach
Considering the different market environment and culture, this study refines the strategy enabler based on Zebal and Goodwin's (2011) Developing Country Market Orientation Scale, and builds a market-oriented EFQM Excellence model. Structural equation modelling (SEM) is used to analyse the results of a questionnaire survey of 683 China construction industry top enterprises to explore the internal relationships between the model's five enablers.
Findings
(1) “Leadership” has a positive influence on “Market-Oriented Strategy”, “People” and “Partnerships and Resources”; (2) “Market-Oriented Strategy” has positive influence on “Partnerships and Resources”; (3) “People” has a low influence on “Processes, Products and Services”; (4) “Partnerships and Resources” has a medium influence on “Processes, Products and Services” and (5) the relationships between “Market-Oriented Strategy” and “People”, “Partnerships and Resources” are not significant.
Originality/value
This study refines the strategy enabler of the original EFQM Excellence model with Zebal and Goodwin's (2011) Developing Country Market Orientation Scale. It also develops a market-oriented EFQM Excellence model that is suitable for developing countries, and it tests the implicit relationships of its five new enablers in an innovation environment where cultural differences exist.
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Juliana Raupp and Olaf Hoffjann
The purpose of this article is to provide a new perspective on the relationship between communication management as a strategic process and corporate strategy.
Abstract
Purpose
The purpose of this article is to provide a new perspective on the relationship between communication management as a strategic process and corporate strategy.
Design/methodology/approach
This paper compares approaches of the prescriptive and the descriptive branch of strategy research and highlights how these seemingly contradictory strategy concepts are interrelated. It integrates decision‐making and interpretive perspectives on strategy in management and transfers those perspectives to strategy in communication management. Two areas of communication management, problem definition and the identification of stakeholders, serve as examples to illustrate the conceptual framework.
Findings
A conceptual model of strategic decision making in communication management is developed. Strategy in communication management is understood as deliberately creating decision‐making situations. Strategic decisions in communication management are part of both retrospective and prospective sensemaking processes in organizations.
Originality/value
This paper points to fruitful tensions between different strategy concepts and suggests ways to resolve this tension partly. It offers further insights into the role of strategy in communication management by providing a comprehensive view on strategies of communication management from the perspectives of strategy content and strategy process research.
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The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions: