Abstract
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Supavich (Fone) Pengnate, Derek G. Lehmberg and Chanchai Tangpong
In economic crisis, where tensions create anxiety and test the emotions of the firms' shareholders, communication from top management is very crucial as it provides the reflection…
Abstract
Purpose
In economic crisis, where tensions create anxiety and test the emotions of the firms' shareholders, communication from top management is very crucial as it provides the reflection of the managers' interpretation of the firms' situation and potential strategies. The goal of this paper is to investigate the relationships between sentiment, as an aspect of emotions extracted from the letters to shareholders, managerial discretion and the firms' subsequent performance and performance trajectory during crisis.
Design/methodology/approach
A sentiment analysis was conducted to extract the sentiment from the letters to shareholders, which were collected from firms in two countries with different levels of managerial discretion (US vs. Japan). Hypotheses were developed and tested using a series of regression analysis.
Findings
The primary findings indicate that (1) managerial sentiment identified in letters to shareholders can potentially be related to the firm's subsequent performance in the economic crisis, and (2) managerial discretion moderates the relationship between managerial sentiment and subsequent firm performance.
Practical implications
When the managerial discretion is high, firms' shareholders can use the sentiment in top management communications to gauge whether the firms' situation would be improving in the near future.
Originality/value
This study expands the current research on sentiment analysis and firm performance to the context of economic crisis by suggesting that managerial sentiment can be substantially provoked as firms are facing with stressful economic conditions. The study also highlights the moderating role of managerial discretion on the firms' subsequent performance.
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Marta Félix and Paula Arriscado
Intrapreneurship (IP) and Strategic Human Resource Management (SHRM) are a paradigm in which the current global scenario of increased homeoffice and professional globalization can…
Abstract
Intrapreneurship (IP) and Strategic Human Resource Management (SHRM) are a paradigm in which the current global scenario of increased homeoffice and professional globalization can have the capacity to stimulate professionals’ autonomy and new business orientations able to re-invent new strategies, services, technologies and even leadership development. This study, of an exploratory nature, aims to analyze the synchronicities between IP and SHRM, raised by relational dynamics translated into leadership, organizational culture and individual practices having as a facilitating factor technology as an agent of change for continuous improvement (based on the Kaizen philosophy). It is supported by a qualitative analysis through a case study of a leading Portuguese group, Grupo Salvador Caetano, which has been in existence for 75 years.
The results demonstrate that dynamic relations are the synchronicities of IP and SHRM as long as stimulated and transmitted to collaborators, and that technology, facilitated these processes. The flexibility of SHRM, the sequence of delegation and implementation of relational dynamics must be the key for the synchronicities of SHRM and IP to be two phenomena that go side by side and contribute to more effective performance and evolution among collaborators, as they support each other in creating firms’ value for customers. Some contributions to theory and practice, raised through a logic of “in-house entrepreneurship,” are also presented at the end of the study.
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David W. Kunsch, Karin Schnarr and W. Glenn Rowe
Using resource dependency theory, the purpose of this paper is to examine what elements in the business environment may be associated with the formation and continuance of…
Abstract
Purpose
Using resource dependency theory, the purpose of this paper is to examine what elements in the business environment may be associated with the formation and continuance of cartels.
Design/methodology/approach
The authors employ a unique data set of 148 cartel data points from the 1970s to 2008 which have at least one American company involved to quantitatively test causal relationships. The authors also interview key class action anti-trust attorneys for their views and opinions on the impact of these environmental factors on cartel formation and continuance.
Findings
The authors find statistically significant relationships between the pursuit and maintenance of industry profits and the dynamism in the industry, and illegal behavior as represented through price fixing by business cartels. The authors find that in the attorneys’ opinion, it is also the pursuit of individual corporate profits and munificence that are associated with these cartels.
Practical implications
This research furthers the understanding of organizational deviance which is critical given its impact on organizations, individuals, regulators, law enforcement, and the general public.
Originality/value
This research is a first step in considering cartel activity in a way that encompasses external influences in a new and innovative manner and as a tool to help researchers and practitioners better understand how organizational deviance, as manifested through illegal corporate activity, can be anticipated, identified, and prevented.
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Guilherme Fowler A. Monteiro and Rinaldo Artes
This paper examines the relationship between entrepreneurs' internality of causal attributions and firm growth during an economic crisis. We propose a U-shaped relationship…
Abstract
Purpose
This paper examines the relationship between entrepreneurs' internality of causal attributions and firm growth during an economic crisis. We propose a U-shaped relationship between the two variables, arguing that the highest-growth entrepreneurs are those with either the highest or lowest levels of internal attribution (IA) during such periods.
Design/methodology/approach
To test our hypothesis, we analyze a database of 804 interviews with entrepreneurs in Brazil during a period of economic stress. Due to the existence of endogeneity, we estimate a model of simultaneous equations in two stages.
Findings
We find evidence of a U-shaped relationship. This means that during economic stress, the fastest-growing entrepreneurs are those who rely more on their own effort (high IA) and those who attribute their success to the economic crisis (low IA).
Practical implications
Tailoring interventions based on attribution patterns and recognizing the U-shaped relationship ensures effective support during economic stress. Entrepreneurial support programs should align with internality levels, emphasizing external awareness or skill development accordingly. Policymakers should take attributions into account when promoting financial resilience. Entrepreneurs would benefit from awareness programs on attributions for reflective decision-making. Ecosystems should foster collaboration by recognizing diverse attributions, enhancing a collective understanding of entrepreneurial responses in crises.
Originality/value
Our results have important implications for understanding the role of entrepreneurs in economic crises. Our results are relevant because they challenge the usual claim that entrepreneurs with high IA are the ones who perform better in situations where external economic conditions are adverse.
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Michaela Blahová, Parissa Haghirian and Přemysl Pálka
The purpose of this paper is to investigate factors influencing contemporary Japanese business environment mainly in the field of strategic management and, therefore, having…
Abstract
Purpose
The purpose of this paper is to investigate factors influencing contemporary Japanese business environment mainly in the field of strategic management and, therefore, having influence on corporate performance and its measurement in selected manufacturing companies located in Japan in respect to their key business perspectives focused on people, processes and systems, innovations, finance, social responsibility and ecology, and that in relation to ongoing economic crises and a fundamental transformation of mature societies (in particular in USA, Japan and Western Europe).
Design/methodology/approach
The research involved assembling key academic and other literature on the subject of trends in strategic management and performance measurement in Japan as well as semi-structured interviews with managers within manufacturing companies located in Japan that deal with performance measurement, finance, strategic management, etc. and a review of various internal management reports.
Findings
The research has been useful in identifying companies that respond to current changes and trends the fastest and the most effective.
Research limitations/implications
Among the limitations of the conclusions belongs rather a small sample of companies involved in the research. Moreover, the respondents may have seen their own company more favourably than an objective outsider would have done.
Originality/value
This paper shares insights on current trends influencing Japanese business environment and how these trends are implemented, used and updated in a selected sample of companies located in Japan.
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Javid Iqbal, Muhammad Khalid Sohail and Muhammad Kamran Malik
This study aims to predict the financial performance of Islamic banks with sentiments of management from the textual information in annual reports.
Abstract
Purpose
This study aims to predict the financial performance of Islamic banks with sentiments of management from the textual information in annual reports.
Design/methodology/approach
The study uses data from 33 Islamic banks in six Islamic countries from 2006 to 2020. The authors estimate the model using the system GMM because it helps dealing with endogeneity problem, which are inherent in panel data.
Findings
The findings of the study reveal that there is a strong relationship between the sentiment expressed by management in annual reports and the current (future) financial performance of Islamic banks. The higher the positive sentiments of management, the better financial performance. In addition, the study also suggests that negative sentiments using term frequency-inverse document frequency is linked to a decrease in banks’ financial performance.
Research limitations/implications
The study does not present the Islamic view on sentiment analysis in the context of Islamic scriptures due to the unavailability of a relevant dictionary.
Practical implications
The findings of the study suggest that developing accurate models with the help of textual information for performance prediction of Islamic banks help shareholders, regulators and policymakers avoid devastating events. Using textual information may also help reduce the information asymmetry between the management and shareholders, which may lead to more efficient bank supervision. The study can also help investors evaluate their prospective investments in the Islamic bank.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind that uses management sentiments for performance prediction of the Islamic banking sector. It may add a valuable contribution to the existing literature.
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Aluisius Hery Pratono and Denni Arli
This article attempts to understand the impact of global consumer culture and ethnocentric consumerism on global citizenship by identifying the mediating effect of cultural…
Abstract
Purpose
This article attempts to understand the impact of global consumer culture and ethnocentric consumerism on global citizenship by identifying the mediating effect of cultural intelligence.
Design/methodology/approach
The proposed structural equation model explains the relationship between global consumer culture, ethnocentric consumerism, and global citizenship. The empirical analysis involves an online survey targeted young people in Indonesia context.
Findings
The empirical evidence broadly supports the view that cultural intelligence strengthens the impact of global consumer culture and ethnocentric consumerism on global citizenship. There is a strong tendency in this study to suggest that global consumerism will not be able to contribute to global citizenship unless cultural intelligence provides as a mediating variable. However, the results do not support the mainstream literature, which suggests that ethnocentric consumerism harms global citizenship.
Originality/value
This study extends the discussion on achieving sustainable development by examining global citizenship leads to a better understanding of consumer culture theory.
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Moustafa Salman Haj Youssef, Hiba Maher Hussein and Hoda Awada
The purpose of this paper is to examine cross-cultural differences in managerial discretion and the extent to which variations and interaction of cultural practices and values…
Abstract
Purpose
The purpose of this paper is to examine cross-cultural differences in managerial discretion and the extent to which variations and interaction of cultural practices and values affect the degree of freedom in decision making that is accorded to executives. This paper offers a holistic approach to investigating culture in addition to acknowledging its paradoxical nature.
Design/methodology/approach
Using a panel of prominent management consultants to rate discretion across 18 countries, the authors further develop the national-level construct of managerial discretion by empirically investigating the influence of cultural practices and values on CEOs’ discretion.
Findings
The study reveals that cultural values moderate the relationship between cultural practices and managerial discretion for three cultural dimensions: individualism, uncertainty tolerance and power distance (PD). By adopting the logic of marginal utility, the authors also show that the more a society values individualism, uncertainty tolerance and PD, the weaker the effect of their practices on managerial discretion.
Originality/value
Few research has attempted to assess both cultural values and practices in relation to managerial discretion. By showing the mechanism in which culture affects the level of managerial discretion, the authors offer new theoretical insights and practical implications, overall contributing to the field of cross-cultural and strategic management. Finally, this will offer CEO’s a new perspective of leveraging culture as a tool, enhancing their decision-making capabilities in the aim of improving organizational performance.
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The purpose of this paper is to explain why some real estate companies choose to have a vertically integrated structure, instead of specializing in only stage of the production…
Abstract
Purpose
The purpose of this paper is to explain why some real estate companies choose to have a vertically integrated structure, instead of specializing in only stage of the production chain.
Design/methodology/approach
The first stage of the research was an extensive literature review to generate hypotheses. A case study method was then chosen, as more detailed knowledge about the companies were judged to be needed to evaluate the different hypothesis. Documents about the companies were studied and interviews carried out.
Findings
In the studies cases, there is no support for theories related to vertical integration as a way to monopolize a market and only marginal support for theories that focus on contracting problems related to the so called hold up problem. The most important factors for the companies were that vertical integration gives information and more options that are important in small number bargaining situations. The companies bargaining power increases when they are better informed about, e.g. costs and profits in nearby activities, and when they can use in-house units, if there are problems to find reasonable conditions on the outside market.
Research limitations/implications
The main limitation is that only three cases were studied.
Practical/implications
The study can be helpful both to companies that choose to integrate vertically and those that chose not to. There are similar problems related to information and bargaining power that needs to be handled.
Originality/value
This is the first study that test theories about vertical integration in the real estate sector.