Muhammad Mushafiq, Syed Ahmad Sami, Muhammad Khalid Sohail and Muzammal Ilyas Sindhu
The main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation…
Abstract
Purpose
The main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation of firm size.
Design/methodology/approach
This study utilizes a total of 1,500 firm-year observations from 2013 to 2018 using dynamic panel data approach of generalized method of moments to test the relationship between default risk and financial performance with the moderation effect of the firm size.
Findings
This study establishes the findings that default risk significantly impacts the financial performance. The relationship between distance-to-default (DD) and financial performance is positive, which means the relationship of the independent and dependent variable is inverse. Moreover, this study finds that the firm size is a significant positive moderator between DD and financial performance.
Practical implications
This study provides new and useful insight into the literature on the relationship between default risk and financial performance. The results of this study provide investors and businesses related to nonfinancial firms in the Pakistan Stock Exchange (PSX) with significant default risk's impact on performance. This study finds, on average, the default probability in KSE ALL indexed companies is 6.12%.
Originality/value
The evidence of the default risk and financial performance on samples of nonfinancial firms has been minimal; mainly, it has been limited to the banking sector. Moreover, the existing studies have only catered the direct effect of only. This study fills that gap and evaluates this relationship in nonfinancial firms. This study also helps in the evaluation of Merton model's performance in the nonfinancial firms.
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Ahmad Arslan, Sami Al Kharusi, Syed Mujahid Hussain and Obinna Alo
Even though sustainable entrepreneurship has increasingly received researchers’ attention in recent years, the topic remains rather under-researched in natural resources’ rich…
Abstract
Purpose
Even though sustainable entrepreneurship has increasingly received researchers’ attention in recent years, the topic remains rather under-researched in natural resources’ rich Gulf countries such as Oman. Hence, this paper aims to fill this gap in the literature and, to the best of the authors’ knowledge, is one of the first attempts to assess the state of sustainable entrepreneurship development in Oman from a multi-stakeholder perspective.
Design/methodology/approach
This paper uses a qualitative research approach where in-depth semi-structured interviews were undertaken with 12 respondents representing relevant stakeholders of sustainable entrepreneurship development in Oman. The interviewees included four sustainable entrepreneurs, four policymakers and four educationists representing entrepreneurial skills development institutes in Oman.
Findings
This papers’ findings highlight that despite some positive improvements, several critical challenges remain, which hinder sustainable entrepreneurship development. The authors further found the role of FinTech to be critical in this concern by all stakeholders, though its usage and acceptance remain low. Also, the costs associated with the post-carbon (sustainable) economy and different profitability evolution have resulted in a slow change in the policy development in this concern. From an educational (skills development) perspective, a lack of context-specific training programmes and culture-based hesitations appeared to be hindering achieving sustainable entrepreneurship possibilities in Oman. The nascent entrepreneurial ecosystem, bureaucracy and lack of human capital (attraction as well as retention) appeared to be significant challenges for entrepreneurs. Finally, the findings highlighted the need for cross-sector collaboration with clear benchmarks for effective policy development concerning sustainable entrepreneurship in Oman.
Originality/value
To the best of the authors’ knowledge, this paper is the first academic study explicitly highlighting the state of sustainable entrepreneurship in Oman by incorporating the development initiatives as well as the major challenges in the analysis. Secondly, this study is also a pioneering work specifying the interlinkage between financing (FinTech), policy initiatives and skills development and the development of a sustainable entrepreneurship ecosystem in an under-researched context of Oman. Finally, the transition to a sustainable economy is challenging in natural resources’ dependent economies like Oman, as it needs to be supported by the mindset change in the larger society (legitimacy). In this concern, this paper, to the best of the authors’ knowledge, is one of the first academic endeavours to also specify the role of legitimacy from the perspective of different stakeholders (and larger society) for sustainable entrepreneurship development in such contexts.
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Sami Ullah, Tooba Ahmad, Bei Lyu, Abdul Sami, Mohit Kukreti and A. Yvaz
Green innovation, particularly in manufacturing firms, is one of the most advocated methods to curb the effects of climate change. This study aims to investigate the impact of the…
Abstract
Purpose
Green innovation, particularly in manufacturing firms, is one of the most advocated methods to curb the effects of climate change. This study aims to investigate the impact of the integration of green customers and suppliers on the green innovation performance of food manufacturing firms in Pakistan. The institutional and resource-based view theories determine the moderating role of regulatory pressure and the mediating role of green knowledge integration capability (GKIC).
Design/methodology/approach
Data was collected from 511 middle management-level employees of food manufacturing firms in Pakistan. The questionnaire was tested for reliability and validity. Hierarchical regression is used to test the proposed hypothesis.
Findings
A marginal improvement in integration with green customers can increase the green innovation performance (GIP) of a firm by 23.6%. Green supplier integration can improve the GIP by 14.2%, whereas the GKIC mediates the relationship between Green Customers Integration (GCI) and GIP but not for green suppliers integration (GSI). The moderating effect of regulatory pressure was significant for the relationship between GCI and GIP but insignificant for GSI.
Originality/value
Food manufacturing accounts for approximately 16% of global green house gases (GHG) emissions. Sustainable development goals (SDGs) cannot be achieved without a significant decrease in GHG emissions by food manufacturing companies. Therefore, it is crucial to investigate firms' green innovation performance in this sector. The findings of this study can help policymakers develop policies for achieving SDGs.
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Isma Zaighum, Qaiser Abbas, Kinza Batool, Shehar Bano and Syed Murtaza Sajjad
Intellectual capital (IC) plays a pivotal role in determining corporate risk profiles in the contemporary knowledge era. Consequently, this study aims to analyze the impact of IC…
Abstract
Purpose
Intellectual capital (IC) plays a pivotal role in determining corporate risk profiles in the contemporary knowledge era. Consequently, this study aims to analyze the impact of IC on firm risk (FR) among the manufacturing companies listed on the Pakistan Stock Exchange (PSX).
Design/methodology/approach
The authors have adopted the modified value-added intellectual model which combines human capital efficiency, structural capital efficiency, efficiency of capital employed and relational capital efficiency. FR has been used as the dependent variable, measured as the standard deviation of the daily stock prices. The study has used panel data from a sample of 40 manufacturing companies listed in the KSE-100 Index from 2015 to 2021.
Findings
The results suggest that IC has a significant impact on the FR of manufacturing companies listed on the benchmark index of PSX. Moreover, this relationship is direct; thus, an increase in IC would also increase FR measured by the change in stock prices.
Research limitations/implications
The current study has only used linear techniques. Future researchers may consider investigating the impact of IC at varying levels of FR using nonlinear techniques.
Practical implications
This study provides corporate managers and policymakers valuable insight into the need to strike a balance between investment in IC and their FR, particularly in an emerging market context.
Originality/value
IC is frequently associated with firm performance. However, the relationship between IC and FR has generally been underexplored. This study adds to the strand of limited IC literature by investigating the impact of a modified IC model on FR in an emerging economy.
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Sami Ullah, Tariq Mehmood and Tooba Ahmad
This study aims to investigate the complex relationship between green intellectual capital (GIC), green human resource management (GHRM) and green innovation (GI) for improvement…
Abstract
Purpose
This study aims to investigate the complex relationship between green intellectual capital (GIC), green human resource management (GHRM) and green innovation (GI) for improvement in the environmental performance (EP) of an organization.
Design/methodology/approach
The data collected from 456 food manufacturing firms in Pakistan was used for structural equation modeling through SmartPLS. Hypotheses were tested through path analysis, predictive relevance and effect size of variables.
Findings
The findings show that GIC and GHRM have no direct impact on EP; instead, GI plays a mediating role to make GIC and GHRM helpful in improving an organization’s EP. Also, the environmental strategies play a significant role in the EP and act as a moderator in the relationship between GI and EP.
Originality/value
The Global Climate Risk Index has ranked Pakistan as the fifth most vulnerable to climate change. Industrial activities are contributing significantly to carbon emissions, and therefore, it is vital to mitigate and adapt to climate change to improve the organization’s EP. The findings of this study show that GIC, GHRM and GI can significantly enhance the EP of food manufacturing firms in Pakistan.
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Bader Alhammadi, Khalizani Khalid, Syed Zamberi Ahmad and Ross Davidson
This paper aims to adopt the dynamic capabilities view to investigate the relationship between managerial ties (i.e. business and political ties), dynamic capabilities and…
Abstract
Purpose
This paper aims to adopt the dynamic capabilities view to investigate the relationship between managerial ties (i.e. business and political ties), dynamic capabilities and innovation climate on ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), in the renewable and sustainable energy context. It also examines the mediating effects of dynamic capabilities between managerial ties and ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), and moderating effects between dynamic capabilities and ambidextrous innovation relationships.
Design/methodology/approach
Multilevel analyses conducted using AMOS 26 on 288 employees working in 47 UAE energy firms.
Findings
Results found that business ties influences balanced and combined ambidextrous innovation indirectly, whereas political ties only impact combined ambidextrous innovation indirectly through dynamic capabilities. Dynamic capabilities insignificantly mediated managerial ties–ambidextrous innovation and political ties–balanced ambidextrous innovation relationships, with stronger indirect effect on combined than on the balanced dimension. Findings also indicate that innovation climate is the crucial moderator between dynamic compatibilities and ambidextrous innovation, as well as balanced and combined ambidextrous innovation, with stronger effect on balanced dimension than the combined.
Originality/value
This study addresses recent calls by highlighting the role of dynamic capabilities, an important yet underexplored organizational capabilities in the innovation and ambidexterity literature. Also, this study advances insight into how balanced and combined exploration–exploitation innovation and dynamic capabilities are connected and enhances the understanding into how organizational factors stimulate dynamic capabilities leading to superior innovation.
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Hind Mubarak Alzaabi, Mohamed Abdulla Alawadhi and Syed Zamberi Ahmad
This study aims to examine the impact of cultural values [power distance (PD), uncertainty avoidance (UC), individualism vs collectivism (IC) and time orientation] and users’…
Abstract
Purpose
This study aims to examine the impact of cultural values [power distance (PD), uncertainty avoidance (UC), individualism vs collectivism (IC) and time orientation] and users’ perceptions on the adoption of big data analytics (BDA) within the context of the United Arab Emirates (UAE) health-care sector. It uses the unified theory of acceptance and use of technology (UTAUT) model as its theoretical foundation.
Design/methodology/approach
A cross-sectional survey involving 256 health-care organization users in major hospitals across the UAE was conducted. Smart partial least squares (PLS) structural equation modeling was used to assess users’ behavioral intentions (BI) to use BDA in the health-care context.
Findings
Results indicate that performance expectancy, social influence, facilitating conditions and perceived trust significantly predicted respondents’ BI to use BDA. However, effort expectancy, perceived security and time orientation were found to have insignificant impacts on BI. Interestingly, the remaining cultural values (PD, UC and IC) did not significantly affect the relationship between social influence and BI in the context of BDA adoption in health care.
Originality/value
This study contributes to the literature by examining the role of cultural dimensions in BDA adoption within health-care organizations, particularly in the underrepresented UAE health-care context. Moreover, it extends the application of the UTAUT model to the BDA adoption in health care, providing insights into the factors affecting users’ BIs to use the technology.
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Moza Saeed Alketbi and Syed Zamberi Ahmad
This study aims to examine the roles of corporate social responsibility (CSR), green innovation (GI) and knowledge management (KM) in boosting sustainable practices (SPs). It also…
Abstract
Purpose
This study aims to examine the roles of corporate social responsibility (CSR), green innovation (GI) and knowledge management (KM) in boosting sustainable practices (SPs). It also investigates the mediating effect of green innovation and the moderating effect of KM in the relationship between CSR and SPs.
Design/methodology/approach
Using measurement scales adapted from existing studies, a quantitative methodology with causal and deductive reasoning was used on data from an online survey with 322 respondents in manufacturing firms in the United Arab Emirates.
Findings
There was no direct significant positive relationship between CSR and SPs; the mediating role of GI was evident, whereas the moderating role of KM was not present.
Research limitations/implications
Only manufacturing enterprises are considered in this study, with a single geographical case study highlighting CSR efforts.
Practical implications
The findings reveal the positive influence of GI on CSR and SPs. This study contributes to the understanding of the influence of green processes and product innovation on applying social, environmental and sustainability practices to enhance the overall productivity, compliance, performance and well-being of the community.
Originality/value
This study collectively explores the causal relationships between these factors, besides offering new insights into the manufacturing industry in an emerging market.
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Hira Rani, Syed Mir Muhammad Shah, Waheed Ali Umrani, Jawad Syed and Gul Afshan
Utilizing affective event theory (AET), this paper aims to understand the affective reasoning behind choosing to speak up for or against abusive supervision. For this purpose, the…
Abstract
Purpose
Utilizing affective event theory (AET), this paper aims to understand the affective reasoning behind choosing to speak up for or against abusive supervision. For this purpose, the authors examine the underlying mechanism of employee state paranoia in the relationship between abusive supervision and promotive and prohibitive voice of employees.
Design/methodology/approach
Data from 307 microfinance bank employees were collected using supervisor–subordinate nested design and time-lag approach. The analysis was performed through partial least square (PLS) structural equation modeling using Smart PLS software.
Findings
The results support the direct relationship of abusive supervision with promotive and prohibitive voice. They also support the mediating relation of paranoia arousal between abusive supervision and promotive voice. However, the results do not support the mediating relationship of paranoia arousal between abusive supervision and prohibitive voice.
Originality/value
In light of the literature drawn from AET and empirical data, this study forwards robust recommendations for theory and practice and may assist future researchers interested in the role of employee paranoia arousal.
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It is commonly claimed that the entrapment defense has never succeeded in a terrorism case. Yet that is not precisely true. In several post-9/11 cases, entrapment claims have…
Abstract
It is commonly claimed that the entrapment defense has never succeeded in a terrorism case. Yet that is not precisely true. In several post-9/11 cases, entrapment claims have contributed to full or partial acquittals, hung juries, and unexpectedly lenient sentences. Prosecutors have also dropped charges, setting convicted defendants free, to prevent successful entrapment defenses upon retrial. This chapter concludes that, despite the fragility and ambiguity of the right not to be entrapped, entrapment claims can achieve partial victories even in terrorism cases, due to the multiple discretion points at which entrapment can inform strategic or normative judgments.