Ling Jong and Poh-Ling Ho
The purpose of this paper is to examine the influence of family directors and independent directors on executive remuneration of listed family firms in Malaysia, and their…
Abstract
Purpose
The purpose of this paper is to examine the influence of family directors and independent directors on executive remuneration of listed family firms in Malaysia, and their involvement in remuneration committee on executive remuneration.
Design/methodology/approach
Fixed effect estimation is employed to examine 1,395 firm-year observations from 2010 to 2014.
Findings
Family and independent directors do not have statistically significant influence on executive remuneration. Rather, family ownership exerts a significant positive influence on executive remuneration. This study also reveals that the interaction of family CEOs with the family directors on remuneration committee exerts a significant positive influence on executive remuneration.
Research limitations/implications
The measurement of executive remuneration excludes the share options due to the non-disclosure of this information in the annual reports.
Practical implications
The findings would be useful to the policy-makers and regulators in appraising the governance measures of remuneration arrangement.
Originality/value
This study premises on the Type II agency conflict between controlling shareholders and minority shareholders. Independent directors could not mitigate the Type II agency conflict via the governance of executive remuneration. They are not the effective governance mechanism that the minority shareholders can rely on. The additional analyses provide theoretical implication that the pervasive Type II agency conflict is ameliorated when the CEOs do not have family relationships with the controlling family shareholders.
Details
Keywords
Spiros Gounaris, George Chryssochoidis and Achilleas Boukis
This paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to…
Abstract
Purpose
This paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to explore the indirect effect of internal market orientation (IMO) adoption, as a dynamic capability, on both PRA and PRC through the shaping of the emerging dynamics within NSD teams.
Design/methodology/approach
Using a hierarchical research design, the authors use a meso-theory approach to test a path-analytic framework against 116 NSD managers (offering data at the macro- or organisational level) and 543 NSD team members (offering data at the micro- or team level).
Findings
Both PRA and PRC are important in explaining NSD teams’ IP at the organisational level, though their explanatory power varies. The adoption of IMO is also an important antecedent to this factor through the (indirect) effect on the team climate and degree of integration.
Research limitations/implications
IMO is an important dynamic capability that allows management to transform the mindset of employees, even if they do not directly interact with customers. In NSD efforts, this reflects on the team’s perceptions of the adequacy of the resources they have to deliver the project through the managerial interventions at the team level, which (mainly) explains the team’s IP.
Practical implications
Adopting an IMO allows the development of a dynamic capability that carries wider benefits for the service organisation, as this has positive implications not just for frontline employees. Specifically, NSD efforts are likely to become more resource-efficient as a result of IMO adoption because of the interventions of management during the development effort.
Originality/value
This empirical study is the first to test the impact of IMO adoption as a dynamic capability and in a context other than frontline employees from a meso-theory perspective. This allows considering the different effects at the appropriate levels (macro and micro), thus enabling a more accurate definition of the mechanism through which companies benefit from IMO adoption.
Details
Keywords
Based on data collected over a 15 year period (2000–2015) for 89 countries selected across nine geopolitical regions of the world, the purpose of this paper is to explore the role…
Abstract
Purpose
Based on data collected over a 15 year period (2000–2015) for 89 countries selected across nine geopolitical regions of the world, the purpose of this paper is to explore the role of economic development and the Hofstede index of national cultures in influencing level of government effectiveness and ICT diffusion; as well as the impact of ICT diffusion on government effectiveness. The level of economic development and a country’s ranking on the E-government index were found significant in explaining ICT diffusion and level of government effectiveness, respectively. But the findings also indicate that only the cultural factors such as Indulgence and long-term orientation (LTO) were quite significant in explaining level of government of effectiveness and ICT diffusion, respectively. The findings conclude that while some cultural factors may provide partial explanations for a country’s level of government effectiveness or ICT diffusion, but for other cultural elements, the path of influence is still unclear and at best debatable. Hence, in light of the growing emphasis placed on it in the literature, the effect of culture is limited and may have been overstated. ICT diffusion, while a necessary tool for administrative efficiency, is only but one piece of a larger puzzle and should be developed in consideration of and in the context of a broader framework of economic development, institutional design and behavioral practices.
Design/methodology/approach
This study examines how existing ICT diffusion and infrastructures among a set of 89 countries spread across nine world geopolitical zones has been able to improve their government effectiveness – as measured by their relative scores or rankings on the global “government effectiveness index” over a 15 year period (2000–2015); and also how specific cultural factors may influence the level of ICT diffusion. Drawing data from the United Nations e-Government knowledge database, the United Nations Development Program, the GlobalEconomy.com, as well as other socio-demographic sources, I examine key and associated indicators that influence information technology diffusion and its contributory effects on level of government effectiveness; as well as the impact of national cultures on ICT diffusion.
Findings
Overall, the finding from this analysis point to the fact that only two of the Hofstede national culture variables were significant (LTO and Indulgence). The other four national culture variables (Power Distance, Individualism, Masculinity/Femininity and Uncertainty Avoidance) were not. Indulgence has a negative effect on level of government effectiveness, while LTO has a positive effect on ICT diffusion. The other culture variables were not significant in any of the regression models, but they seem to congregate much closer to or around the mean.
Originality/value
This is the only work of its kind that has utilized the seven Hofstede indicators to test for the relationship between culture and technology over a long period of 15 years.
Details
Keywords
Zanthippie Macrae and John E. Baur
The personalities of leaders have been shown to impact the culture of their organizations and are also expected to have a more distal impact on the firm’s financial performance…
Abstract
The personalities of leaders have been shown to impact the culture of their organizations and are also expected to have a more distal impact on the firm’s financial performance. However, the authors also expect that leader gender is an important intervening variable such that exhibiting various personality dimensions may result in unique cultural and performance-based outcomes for women and men leaders. Thus, the authors seek to examine first the impact of leader personality on organizational performance, as driven through organizational culture as a mediating mechanism. In doing so, the authors propose the expected impact of specific personality dimensions on certain types of organizational cultures, and those cultures’ subsequent impact on the organization’s performance. The authors then extend to consider the moderating effects of leader gender on the relationship between leader personality and organization. To support their propositions, the authors draw from upper echelons and implicit leadership theories. The authors encourage researchers to consider the proposition within a sample of the largest publicly traded US companies (i.e., Fortune 500) at an important era in history such that for the first time, 10% of these companies are led by women. In doing so, the authors hope to understand the leadership dynamics at the highest echelons of corporate governance and provide actionable insights for companies aiming to optimize their leadership composition and drive sustainable performance.
Details
Keywords
Muhammad Riaz, Shu Jinghong and Umar Iqbal Siddiqi
The purpose of this study is to illuminate financial commitment of a firm vis-a-vis corporate behavior of 519 reported fabric businesses in G-20 states. This study also aims to…
Abstract
Purpose
The purpose of this study is to illuminate financial commitment of a firm vis-a-vis corporate behavior of 519 reported fabric businesses in G-20 states. This study also aims to take into account the regional baseline comparisons (i.e. subsampling) of G-20 firms based on the available data. The pattern of the current study comes from the registered companies in the G-20 states. For the fabricating business, the 2007–2018 annual financial statements are obtained from the Thomson Reuters Data Stream and World Stock Exchange.
Design/methodology/approach
For the investigation, the panel data were analyzed from the period 2007–2018 by applying summary statistics of ordinary least square, correlation matrix and generalized method of moments.
Findings
The findings of this study suggest that Ln assets, dividends and investments have a positive association with the debt level. In addition, profitability and working capital were negatively associated with change in total debt under pecking order theory.
Research limitations/implications
The effects of the geographical location of the firms and current global economic downturn were accounted for the capital structure decisions and corporate performance of G-20 firms.
Originality/value
This study instigates observed phenomenon elicited from capital structure theory by applying analytical method, instead of describing them in terms of administrative selection, taking measure and chief financial officers risk preference. Finally, work is required to form new hypothesis and explore novel factors that could enrich academic scholars’ motivation.
Details
Keywords
Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…
Abstract
Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).
The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.
This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.
Details
Keywords
Jenna M. Evans, Ross G. Baker, Whitney Berta and Barnsley Jan
To examine the evolution of health care integration strategies and associated conceptualization and practice through a review and synthesis of over 25 years of international…
Abstract
Purpose
To examine the evolution of health care integration strategies and associated conceptualization and practice through a review and synthesis of over 25 years of international academic research and literature.
Methods
A search of the health sciences literature was conducted using PubMed and EMBASE. A total of 114 articles were identified for inclusion and thematically analyzed using a strategy content model for systems-level integration.
Findings
Six major, inter-related shifts in integration strategies were identified: (1) from a focus on horizontal integration to an emphasis on vertical integration; (2) from acute care and institution-centered models of integration to a broader focus on community-based health and social services; (3) from economic arguments for integration to an emphasis on improving quality of care and creating value; (4) from evaluations of integration using an organizational perspective to an emerging interest in patient-centered measures; (5) from a focus on modifying organizational and environmental structures to an emphasis on changing ways of working and influencing underlying cultural attitudes and norms; and (6) from integration for all patients within defined regions to a strategic focus on integrating care for specific populations. We propose that underlying many of these shifts is a growing recognition of the value of understanding health care delivery and integration as processes situated in Complex-Adaptive Systems (CAS).
Originality/value
This review builds a descriptive framework against which to assess, compare, and track integration strategies over time.
Details
Keywords
The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service…
Abstract
Purpose
The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service development (NSD) process by discussing the role of some intra‐organizational contingencies that determine NSD project performance.
Design/methodology/approach
This paper develops a number of propositions applicable to new service development projects, in order to shed light on how internal team dynamics and contextual antecedents of service innovation affect NSD project performance.
Findings
The importance of adopting an internal market orientation (IMO) for new service development performance is illustrated. The role of intrateam contingencies, such as trust, relationship conflict and political activity and some contextual antecedents, such as resource allocation effectiveness and efficiency and cross‐functional integration for NSD project performance are also discussed.
Originality/value
This study is clearly a fruitful path of exploration ahead to help NSD project managers understand the importance of the internal environment for NSD performance. Moreover, different proxies of NSD performance are suggested in order to identify organizational gains stemming from NSD initiatives.
Details
Keywords
Michael Matthews, Thomas Kelemen, M. Ronald Buckley and Marshall Pattie
Patriotism is often described as the “love of country” that individuals display in the acclamation of their national community. Despite the prominence of this sentiment in various…
Abstract
Patriotism is often described as the “love of country” that individuals display in the acclamation of their national community. Despite the prominence of this sentiment in various societies around the world, organizational research on patriotism is largely absent. This omission is surprising because entrepreneurs, human resource (HR) divisions, and firms frequently embrace both patriotism and patriotic organizational practices. These procedures include (among other interventions) national symbol embracing, HR practices targeted toward military members and first responders, the adulation of patriots and celebration of patriotic events, and patriotic-oriented corporate social responsibility (CSR). Here, the authors argue that research on HR management and organization studies will likely be further enhanced with a deeper understanding of the national obligation that can spur employee productivity and loyalty. In an attempt to jumpstart the collective understanding of this phenomenon, the authors explore the antecedents of patriotic organizational practices, namely, the effects of founder orientation, employee dispersion, and firm strategy. It is suggested that HR practices such as these lead to a patriotic organizational image, which in turn impacts investor, customer, and employee responses. Notably, the effect of a patriotic organizational image on firm-related outcomes is largely contingent on how it fits with the patriotic views of other stakeholders, such as investors, customers, and employees. After outlining this model, the authors then present a thought experiment of how this model may appear in action. The authors then discuss ways the field can move forward in studying patriotism in HR management and organizational contexts by outlining several future directions that span multiple levels (i.e., micro and macro). Taken together, in this chapter, the authors introduce a conversation of something quite prevalent and largely unheeded – the patriotic organization.