Wouter Broekaert, Bart Henssen, Johan Lambrecht, Koenraad Debackere and Petra Andries
The purpose of this paper is to analyze how the sense of control, psychological ownership and motivation of both family owners and non-family managers in family firms are…
Abstract
Purpose
The purpose of this paper is to analyze how the sense of control, psychological ownership and motivation of both family owners and non-family managers in family firms are interrelated. This paper analyzes the limits set by family owners when delegating control to their non-family managers and the resulting potential for conflict and demotivation of the non-family managers.
Design/methodology/approach
Building on the existing literature, first, an overview of the literature on psychological ownership and control is presented. Second, the paper analyzes the insights gained from interviews with 15 family owners and non-family managers in five family firms.
Findings
This study finds that motivating non-family managers is not merely a matter of promoting a sense of psychological ownership throughout the company. A strong sense of psychological ownership may facilitate but also hinder the cooperation between family and non-family. Family owners are often only willing to delegate operational control, while non-family managers also feel entitled to participate in strategic decision making. This leads to the proposition that non-family managers’ psychological ownership in family firms’ conflicts with family owners’ desire to maintain control.
Originality/value
This study answers the calls to seek additional insight in how non-family managers function within family firms. By shedding light on the complex relationship between control, psychological ownership and motivation in family firms, the study responds to the calls for more empirical validation of the psychological ownership framework and for more research into the potential negative effects of psychological ownership in the family business.
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Petra Andries and Annelies Wastyn
The main purpose of this paper is to provide large‐scale empirical evidence on the value‐enhancing and cost‐increasing effects of knowledge management (KM) techniques.
Abstract
Purpose
The main purpose of this paper is to provide large‐scale empirical evidence on the value‐enhancing and cost‐increasing effects of knowledge management (KM) techniques.
Design/methodology/approach
The authors conduct structural equation analyses, using data from the Community Innovation Survey 2007 and from annual accounts of 705 innovative Belgian firms.
Findings
Results confirm that the use of KM techniques has an indirect positive impact on financial performance via increased innovation performance. In addition, a direct cost‐increasing effect of KM practices on financial performance is observed. In the short term, this direct cost‐increasing effect exceeds the indirect value‐generating effect of KM techniques.
Research limitations/implications
This study investigates the short‐term effects of KM techniques. Future research should study the long‐term costs and benefits. Data were collected in Belgium and may not reflect the impact of KM practices in other geographic, economic or cultural settings.
Practical implications
The findings clearly indicate that the implementation of KM techniques entails significant costs. Within a two‐year time frame, the financial costs of KM techniques are more visible than their potential benefits. An exclusive focus on the short‐term implications of the use of KM techniques is hence likely to give a too pessimistic view on their potential financial contribution.
Originality/value
This article is the first large‐scale study that disentangles both the value‐enhancing and cost‐increasing effects of KM techniques on financial performance and that uses time lags and accounting data (as opposed to self‐reported performance measures) to do so.
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Peter M. Bican, Carsten C. Guderian and Anne Ringbeck
As firms turn their innovation activities toward collaborating with external partners, they face additional challenges in managing their knowledge. While different modes of…
Abstract
Purpose
As firms turn their innovation activities toward collaborating with external partners, they face additional challenges in managing their knowledge. While different modes of intellectual property right regimes are applied in closed innovation systems, there seems to be tension between the concepts of “open innovation” and “intellectual property rights”. The purpose of this paper is to investigate how firms best manage knowledge via intellectual property rights in open innovation processes.
Design/methodology/approach
Following a mixed methods approach, the authors review relevant literature at the intersection of knowledge management, intellectual property rights, strategic management of intellectual property rights and the open innovation process. The authors identify success drivers through the lenses of – but not limited to – intellectual property rights and classify them in five distinct groups. Expending the view on open innovation beyond its modus operandi, the authors develop the Open Innovation Life Cycle, covering three stages and three levels of the open innovation process. The authors apply their findings to a case study in the pharmaceutical industry.
Findings
The authors provide four key contributions. First, existing literature yields inconclusive results concerning the enabling or disabling function of intellectual property rights in open innovation processes, but the majority of scholars detect an ambivalent relation. Second, they identify and classify success drivers of successful knowledge management via intellectual property rights in open innovation processes. Third, they advance literature on open innovation beyond its modus operandi to include three stages and three levels. Fourth, they test their findings to a case study and show how management leverages knowledge by properly using intellectual property rights in open innovation.
Practical implications
The findings support firms in managing knowledge via intellectual property rights in open innovation processes. Management should account for the peculiarities of open innovation preparation and open innovation termination to prevent unintentional knowledge drain.
Originality/value
This is one of the first studies to view open innovation as a process beyond its modus operandi by considering the preparations for and termination of open innovation activities. It also addresses the levels involved in managing knowledge via intellectual property rights in open innovation from individual (personal) to project and firm level.
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Armand Omar Moeis, Chatarina Petra Salim, Andri Dwi Setiawan and Arry Rahmawan Destyanto
The purpose of this research is to develop a set of policies to solve the decarbonization issues of container terminal clusters.
Abstract
Purpose
The purpose of this research is to develop a set of policies to solve the decarbonization issues of container terminal clusters.
Design/methodology/approach
This research used the system dynamics approach to develop an integrated multi-issue policy model.
Findings
We found that the mandatory use of low-sulfur fuel can decrease GRDP and container throughput and hinder the growth of companies and workers due to high fuel prices. However, it can contribute to a significant reduction in SOx emissions.
Research limitations/implications
This research used the Tanjung Priok container terminal cluster in Jakarta, Indonesia, as its case study. Hence, some findings are attached to the characters of this container terminal cluster.
Practical implications
We found that an integrated policy approach that can tackle technical and social issues can be used to develop a novel approach to solving the complexity that arises in a complex socio-technical system such as container terminal clusters.
Social implications
As this research used the socio-technical systemic point of view, we found that solutions for major environmental issues should be coupled with significant social programs to (at least) maintain the welfare of society.
Originality/value
This research used the integrated complexity model approach, system dynamics, which can significantly increase society’s ability to tackle multi-issue problems such as decarbonizing container terminal clusters.
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Anastasia Njo, Narsa I. Made and Andry Irwanto
The dual process of thinking between conscious processes and unconscious processes generate a different decision. Thinking consciously produces rational decisions. However, a…
Abstract
Purpose
The dual process of thinking between conscious processes and unconscious processes generate a different decision. Thinking consciously produces rational decisions. However, a person’s cognitive limitation makes him or her simplify complex scenarios and think implicitly result in making decision in heuristics or rules of thumbs. This paper aims to evaluate patterns of decision-making relationships and dual motives for home purchasing by first home buyers and family life cycle in Indonesia.
Design/methodology/approach
Collecting data was done by distributing questionnaires to home buyers within three years (2013-2016). Further data were processed using ANOVA based on group of dual motives, time for buyer and family life cycle.
Findings
The results show that buyers have consumption motives in buying a residence and they behave rational, while investors prefer to buy an apartment and tend to behave heuristics. Dual motives of time for buyers are not significant to decision model. Family life cycle is significant to decision model based on dual motives.
Originality/value
This is an unpublished dissertation study to qualify for graduation.
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Alexander Brem, Petra A. Nylund and Emma L. Hitchen
The purpose of this paper is to study the relationship between open innovation and the use of intellectual property rights (IPRs) in small- and medium-sized enterprises (SMEs)…
Abstract
Purpose
The purpose of this paper is to study the relationship between open innovation and the use of intellectual property rights (IPRs) in small- and medium-sized enterprises (SMEs). The authors consider patents, industrial designs (i.e. design patents in the USA), trademarks, and copyrights.
Design/methodology/approach
The relationships between open innovation, IPRs, and profitability are tested with random-effects panel regressions on data from the Spanish Community Innovation Survey for 2,873 firms spanning the years 2008-2013.
Findings
A key result is that SMEs do not benefit from open innovation or from patenting in the same way as larger firms. Furthermore, the results show that SMEs profit in different ways from IPR, depending on their size and the corresponding IPR.
Research limitations/implications
The different impact of IPRs on the efficiency of open innovation in firms of varying sizes highlights the importance of further investigation into IP strategies and into open innovation in SMEs.
Practical implications
Industrial designs are currently the most efficient IPR for SMEs to protect their intellectual property in open innovation collaborations. Depending on the company size, the use of different IPRs is recommended. Moreover, firms should seek to increase the efficiency of open innovation and the use of IPRs.
Social implications
The high impact of SMEs on employment highlights the importance of fomenting efficient innovation processes in such firms.
Originality/value
This paper opens the black box of IPR in relation to open innovation in SMEs, and draws distinctive conclusions with regards to patents, industrial designs, trademarks, and copyrights.
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Alessandro Gabrielli and Giulio Greco
Drawing on the resource-based view (RBV), this study investigates how tax planning affects the likelihood of financial default in different stages of the corporate life cycle.
Abstract
Purpose
Drawing on the resource-based view (RBV), this study investigates how tax planning affects the likelihood of financial default in different stages of the corporate life cycle.
Design/methodology/approach
Collecting a large sample of US firms between 1989 and 2016, hypotheses are tested using a hazard model. Several robustness and endogeneity checks corroborate the main findings.
Findings
The results show that tax-planning firms are less likely to default in the introduction and decline stages, while they are more likely to default in the growth and maturity stages. The findings suggest that introductory and declining firms use cash resources obtained from tax planning efficiently to meet their needs and acquire other useful resources. In growing and mature firms, tax aggressiveness generates unnecessary slack resources, weakens managerial discipline and increases reputational risks.
Practical implications
The results shed light on the benefits and costs associated with tax planning throughout firms' life cycle, holding great significance for managers, investors, lenders and other stakeholders.
Originality/value
This study contributes to the literature that examines resource management at different life cycle stages by showing that cash resources from tax planning are managed in distinctive ways in each life cycle stage, having a varied impact on the likelihood of default. The authors shed light on underexplored cash resources. Furthermore, this study shows the potential linkages between the agency theory and RBV.
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Radityo Putro Handrito, Hendrik Slabbinck and Johanna Vanderstraeten
This study aims to explore how an entrepreneur's implicit need for achievement and risk reception contribute to internationalization performance.
Abstract
Purpose
This study aims to explore how an entrepreneur's implicit need for achievement and risk reception contribute to internationalization performance.
Design/methodology/approach
This study involves 176 Indonesian entrepreneurs. The authors use the Operant Motive Test to assess the entrepreneur's implicit needs and apply hierarchical Tobit regression to assess the interplay between implicit need for achievement, risk perception and internationalization.
Findings
The authors show that an entrepreneur's basic needs and risk perception play an essential role in SME internationalization. More specifically, the authors reveal a positive association between the entrepreneur's need for achievement and small and medium enterprises (SME) internationalization. They also show a U-shaped relationship for the moderation effect of risk perception on this relationship. That is, for a high need for achievement-motivated entrepreneur, the level of internationalization is at the highest when risk perception is either very low or very high.
Originality/value
In this study, the authors argue that analyses at the entrepreneur's individual level are indispensable to better understand firm internationalization. The authors argue that the role of psycho-cognitive characteristics of individuals (such as motivational dispositions) received too little attention, compared to factors at the firm or environmental level. This study examines such personality aspects and finds that implicit need for achievement and risk perception impact SME internationalization.
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Berna Dogan Basar, İbrahim Halil Ekşi and Rizky Yudaruddin
The purpose of this study is to examine the causality between the environmental, social and corporate governance (ESG) score, which is the component of banks’ performance obtained…
Abstract
Purpose
The purpose of this study is to examine the causality between the environmental, social and corporate governance (ESG) score, which is the component of banks’ performance obtained from ESG activities, and the capital costs, market values and bankruptcy risk of banks. For this purpose, 117 banks with fully accessible data from 29 developing countries were included.
Design/methodology/approach
In the methodology part of the study, the panel causality test developed by Emirmahmutoglu and Köse was used based on the periods 2015–2022. First, the cross-section test and delta tests were performed. Then, Levin, Lin and Chu, Breitung, Im, Pesaran, Shin, Fisher ADF and Fisher-PP panel unit root tests and Emirmahmutoglu and Köse panel causality test were performed.
Findings
As a result of the analyses, bidirectional causality was observed between ESG and weighted average cost of capital of private banks. Similarly, bidirectional causality from ESG to company market capitalization and from ESG to the risk indicator ZSCORE was determined in both private and state banks. The results reveal that ESG components should also be considered in relation to financial performance. In this respect, it is expected to guide regulatory and supervisory institutions in the establishment of regulations and guidelines regarding the determination and promotion of ESG practices that will increase capital efficiency and reduce corporate financing costs.
Originality/value
Focusing on ESG activities has ceased to be an arbitrary situation for banks. In today’s competitive conditions, financial institutions are turning to strategies that differentiate them from their competitors, such as ESG, as they have difficulty maintaining customer loyalty. Based on the lack of focus on structure differentiation before, the main research question of this study is whether the private and public structure will cause a difference in the effect of ESG activities on bank performance and cost.