Woon Leong Lin, Murali Sambasivan, Jo Ann Ho and Siong Hook Law
Although various studies have investigated the corporate political activity (CPA), however, there is no definite report which shows its effect on the public policy outcome or the…
Abstract
Although various studies have investigated the corporate political activity (CPA), however, there is no definite report which shows its effect on the public policy outcome or the organization’s performance. Hence, the political effects of the corporate social responsibility (CSR) have garnered a lot of recent interest since the CSR included activities which have an intended or an unintended effect on the CPA–corporate financial performance (CFP) link. We use data made available by the 1995 Lobbying Disclosure Act, while the CSR indices were gathered from the Fortune Magazine’s most admired companies from 2007 to 2016. We analyzed the relationship between the organization’s CPA and CFP, with the help of the dynamic panel data system generalized method of moment (GMM) estimation. Their results showed that the CPA did not improve the firm’s performance. Moreover, CPA and CSR are substitute in affecting financial performance, because they are essentially exclusive investments that require resources but do not have synergies.
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Social movement organizations increasingly engage directly with companies, rather than using the political process to regulate them. This development has spawned lively new…
Abstract
Social movement organizations increasingly engage directly with companies, rather than using the political process to regulate them. This development has spawned lively new literatures on non-market strategy and on social movements, but the two would benefit from engaging each other more effectively. A common framework and set of shared constructs would allow for collaborative theorizing on how new issues emerge into the public sphere, how interest groups mobilize, and how public opinion is formed; transaction cost analysis, with its primarily verbal theorizing, may prove a helpful starting point. Empirical knowledge is growing rapidly, yet many exciting questions remain open.
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Meng Jia, Linda Caroline Hendry and Mark Stevenson
To study the learning processes and mechanisms involved in sustainability-oriented supplier development (SSD), including how knowledge is transmitted by the buyer and how it is…
Abstract
Purpose
To study the learning processes and mechanisms involved in sustainability-oriented supplier development (SSD), including how knowledge is transmitted by the buyer and how it is received, understood and internalised by the supplier.
Design/methodology/approach
An exploratory longitudinal multi-case study approach is adopted. The research context is a social SSD project focusing on occupational health and safety (OHS) management at four supplier factories. The paper draws on the constructs of absorptive capacity and boundary objects.
Findings
The development of a supplier's absorptive capacity for OHS management is triggered by the transfer of boundary objects that are created by the buyer. Findings suggest that each supplier starts explorative learning in a similar and passive way in order to accept the knowledge, but then each supplier proactively transforms and exploits the knowledge through continuous sensing, seizing, and reconfiguring loops that develop the boundary objects in a way that fits their own needs and contexts, incorporating the objects into organisational structures and routines.
Research limitations/implications
The research furthers the understanding of the development of supplier absorptive capacity for sustainability via SSD projects, including how it is triggered and sustained. The impact of ostensive and performative aspects of boundary objects on knowledge transfer is presented. Finally, insight is provided into how absorptive capacity and dynamic capabilities are linked in the context of SSD.
Practical implications
Buying firms should seek to develop boundary objects that can trigger and maintain learning momentum for sustainability at supplier organisations in addition to effectively transferring SSD-related sustainability knowledge. There is also a need to allow for sufficient flexibility in the design of the boundary objects, and to pay sufficient attention to how suppliers contextualise and embed them into their own organisations, providing support for this process where necessary. For the supplier, establishing structures and routines for OHS management can help to prepare for future audits, thereby reducing audit fatigue.
Originality/value
The paper contributes to the supply chain learning literature by exploring the development of supplier absorptive capacity for sustainability triggered by the focal buying firm. It sheds new light on the role of boundary objects for facilitating knowledge transfer and learning between supply chain members in the context of SSD projects.
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Jia Choi, Jong‐Mee Lee and Mi‐Sook Cho
The primary aim of this paper is to reveal the changes in perception of East Asian cuisine (Chinese, Japanese, Korean, Thai, and Vietnamese) in New York City between 1997 and…
Abstract
Purpose
The primary aim of this paper is to reveal the changes in perception of East Asian cuisine (Chinese, Japanese, Korean, Thai, and Vietnamese) in New York City between 1997 and 2007. Through analysis of data collected from Zagat Survey food reviews, the research seeks to explore trends regarding each cuisine's social status, quality, and also to observe general comparisons between each ethnicity's cuisine. The secondary aim is to evaluate how each cuisine is currently perceived in the city that is not only beaming with culinary delights, but also deemed the “Restaurant capital of the world”.
Design/methodology/approach
Using the Zagat Survey New York City 1997 and 2007, quantitative analyses were performed using the scores for comparison purposes. The mean and the standard deviations are calculated in terms of food, decor, service, and price. The t‐test was used to verify whether there have been statistically meaningful changes in each cuisine for the past ten years in the Zagat Survey.
Findings
In terms of popularity, the number of Japanese restaurants has significantly increased in ten years while that of Chinese restaurants decreased about 30 percent. According to the t‐tests, Japanese showed most significant changes in almost all aspects. Thai cuisine also demonstrated remarkable improvements, especially, in decor and service. Korean and Chinese cuisine did not show a noticeable change in food, decor, and service. Only the price showed a little change for these cuisines. Vietnamese cuisine achieved a significant progress in food while no enhancement in other aspects.
Research limitations/implications
Because the scope of the research was “general” restaurants in New York City, the discussion on their price range, quality of food, decor, and service, the type of restaurant under observation was inevitably limited.
Practical implications
The research can help in marketing and development of new restaurants for it provides some insight into the characteristics of each ethnic cuisine and trend changes of restaurants.
Originality/value
The research presented in the paper can be applied both by practitioners and academics in the fields of food service management.
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Shufeng Xiao, Alfredo Jiménez, Sukyoon Jung, Byung Il Park and Seong Jin Choi
How much variance in firm performance can be attributed to firms’ corporate political activities (CPA)? Under what conditions does CPA contribute to firm performance? To theorize…
Abstract
Purpose
How much variance in firm performance can be attributed to firms’ corporate political activities (CPA)? Under what conditions does CPA contribute to firm performance? To theorize and empirically tackle these questions, we build on the resource-based view (RBV) to theorize how CPA might improve or hinder firm performance, and specifically examine the direct relationship between firms’ investments in lobbying activities and their performance. We also expect firm growth rate to moderate the relationship between lobbying and performance.
Design/methodology/approach
We empirically test our hypotheses using large-scale longitudinal panel data from publicly traded US firms from 2008 to 2018.
Findings
Our analyses support our predictions of the double-edged sword effect of lobbying on firm performance. Moreover, our results show that this effect is steeper for firms with higher growth rates.
Originality/value
Our study contributes meaningful insights to strategy scholarship on the influence of nonmarket strategies, highlighting the relevance of firm-specific conditions in shaping the performance outcomes of such strategies. In particular, we make a contribution by identifying a nonlinear relationship between lobbying and firm performance, which is amplified in fast-growing firms compared to stagnant ones.
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Weihua Liu, Xinyun Liu and Tsan-Ming Choi
This study aims to explore the impact of supply chain quality event (SCQE) announcements on enterprises’ stock market value.
Abstract
Purpose
This study aims to explore the impact of supply chain quality event (SCQE) announcements on enterprises’ stock market value.
Design/methodology/approach
This study adopts the event study approach and analyzes the changes in shareholder value of companies listed in China based on data from 118 SCQE announcements. In the event study, the market, market-adjusted and Carhart four-factor models are used to estimate abnormal stock market returns, and a cross-sectional regression model is performed to examine the effects of SCQE announcements on enterprises’ stock market value.
Findings
SCQE announcements have a negative impact on shareholder value. From the perspective of the supply chain network structure, the market reacts more negatively to SCQE announcements issued by the enterprises with higher supply chain concentration. From the perspective of companies’ characteristics, announcements that do not reflect the establishment of supply chain quality cooperation have a more negative effect on stock market value, which indicates that the supply chain network structure and firm-level characteristic can moderate the market reaction.
Practical implications
The findings demonstrate a quantitative evaluation of how SCQE announcements affect the stock market value of listed companies and provide guidance for managers to enhance the value of SCQE announcements.
Originality/value
This study fills the research gap on the impact of SCQE announcements on stock market value by using secondary data and first explores the relationship between SCQE announcements and stock market value from the perspective of supply chain network. Furthermore, this study contributes to the literature on SCQE using an empirical study in China.
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Marta Peris-Ortiz, Pablo Álamo and Jaime Alonso Gómez
Many experts agree with the opinion that blockchain technology will bring about a revolution and create a new system of living, relating and doing business. What so far seems to…
Abstract
Many experts agree with the opinion that blockchain technology will bring about a revolution and create a new system of living, relating and doing business. What so far seems to be an experimental phenomenon, which is already producing results and creating high-value communities, may soon become a real social transformation. The case study presented here sheds some light on the blockchain reality, the importance of digital entrepreneurial talent, which seeks to take advantage of a situation in the country to develop a commercial project attractive to foreign investors. The authors analyze the key elements of the success of a Paraguayan company focused on high-tech operations. The authors venture to present an exploratory model of management in the blockchain world, in order to collaborate, cooperate and encourage the success of many future digital ventures.
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Paijie Wan, Feng He, Hongjie Zhang and Rengaowa Wu
This study examines the impact of industry-university-research (IUR) cooperation on the financial performance of pharmaceutical enterprises in China. The current literature has…
Abstract
Purpose
This study examines the impact of industry-university-research (IUR) cooperation on the financial performance of pharmaceutical enterprises in China. The current literature has primarily focused on the effects of IUR cooperation on innovative performance, often overlooking its financial implications. This research aims to address this gap by analyzing how such collaborations affect financial outcomes.
Design/methodology/approach
Using a difference-in-differences (DID) approach, this study analyzes data from publicly listed Chinese pharmaceutical companies between 2011 and 2022. The analysis includes robustness checks and heterogeneity analysis to validate the findings.
Findings
Empirical results indicate that IUR cooperation significantly improves the financial performance of pharmaceutical enterprises. Firms engaged in IUR collaborations exhibit a notable improvement in return on assets (ROA) and return on equity (ROE). The research findings confirm that absorptive capacity (internal factors) and the external knowledge resource base (external factors) enhance the positive impact of IUR collaboration on the financial performance of pharmaceutical enterprises. Additionally, the heterogeneity analysis based on regional levels of intellectual property protection demonstrates a stronger positive influence of IUR cooperation on the financial performance of pharmaceutical enterprises in regions with greater levels of intellectual property protection.
Originality/value
This study contributes to the understanding of the financial benefits of IUR cooperation in the biopharmaceutical sector. By highlighting the significance of absorptive capacity, external knowledge resource base and regional intellectual property protection, this study offers valuable insights for policymakers and business leaders aiming to cultivate effective industry–academia collaborations.
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Weihua Liu, Shangsong Long and Jingkun Wang
As a disruptive technology, blockchain technology brings new opportunities and challenges to operations management. We aim to examine the influences of blockchain cooperation…
Abstract
Purpose
As a disruptive technology, blockchain technology brings new opportunities and challenges to operations management. We aim to examine the influences of blockchain cooperation project announcements (BCPAs) on firms’ stock market reactions in an emerging market. From 2016 to 2021, a total of 113 BCPAs of listed firms from the Chinese A-share market are selected as samples.
Design/methodology/approach
This study is based on the loose coupling theory and uses the event study method and probit regression analysis.
Findings
We find BCPAs positively affect the firm’s stock price on the day they are released. Compared with vertical BCPAs in a supply chain, horizontal BCPAs exert a more positive market reaction. Moreover, a BCPA with a partner within a shorter geographical distance exerts a more positive influence on market reaction. Contrary to the intuition of the decentralized blockchain feature that one-to-many cooperation leads to better benefits, one-to-one BCPAs exert a more positive effect on market reaction than one-to-many BCPAs. We further find that (1) industry type has a certain impact on cooperation mode selection, and (2) manufacturing firms are more inclined to choose one-to-one cooperation than those in service industry.
Originality/value
We focus on the impact of blockchain cooperative announcements and additionally use the probit regression models to analyze the influencing factors of cooperation mode selection and find the critical role of the industry type, which complements the existing empirical research on blockchain announcements and is conducive to provide decision-making reference for managers.
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Weihua Liu, Zhixuan Chen, Tsan-Ming Choi, Paul Tae-Woo Lee, Hing Kai Chan and Yongzheng Gao
This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.
Abstract
Purpose
This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.
Design/methodology/approach
The event study approach is adopted. Market, market-adjusted, Carhart four-factor model and a cross-sectional regression model are employed to examine the impacts of carbon neutral announcements on “stock market value” of Chinese companies based on data from 188 carbon neutral announcements.
Findings
Carbon neutral announcements positively impact Chinese shareholder value. Carbon neutral announcements at the strategic level have a more positive and significant impact on Chinese stock market value. Innovative carbon neutral announcements do not significantly cause Chinese stock market reactions. Companies have more positive and significant stock market reactions when the companies make carbon neutral announcements that reflect high supply chain network resilience and heterogeneity and strong supply chain network relationships.
Practical implications
The findings uncover the business value of carbon neutral activities and provide operations managers in developing countries insights into how to improve enterprises' market value by actively implementing carbon neutral activities.
Originality/value
This paper is the first trial to apply an event study to examine the relationship between carbon neutral announcements and Chinese stock market value from the perspective of announcement level and type and supply chain networks. This paper introduces corporate reputation theory and enriches the application of corporate reputation theory in the field of low-carbon environmental protections and supply chains.