According to the paper “Creating shared value” (CSV) (Porter and Kramer, 2011), three specific strategies will expand the firm’s pool of available economic and social values and…
Abstract
Purpose
According to the paper “Creating shared value” (CSV) (Porter and Kramer, 2011), three specific strategies will expand the firm’s pool of available economic and social values and improve businesses’ competitive position over time. However, firms’ performances are not systematically compared to validate this claim. The purpose of this paper is to suggest a path towards delineating CSV to validate the claim and to contribute to the foundation of an industry-specific ranking based on CSV.
Design/methodology/approach
This paper attempts to delineate CSV based on relevant literature, including the critique of CSV, to measure CSV empirically. The suggested indicators of CSV are based on an interpretation of Porter and Kramer (2011) referring to a market-centric approach to corporate social responsibility (CSR).
Findings
None of the CSV strategies proposed by Porter and Kramer (2011) are new to the academic literature, though several scholars argue that these strategies, taken together, characterize prosperous multinational corporations (MNCs).
Research limitations/implications
The relevance and usefulness of the indicators presented here will vary among industries.
Practical implications
CSV indicators may be the source for an industry-specific ranking of MNCs. An index based on these indicators may reveal systematic differences between industries.
Social implications
A CSV index would include synergies between commercial and CSR-related performances of firms. If a CSV index attracts international attention, the rank of an MNC would indicate to what degree MNCs succeed in integrating their commercial and CSR-related strategies and influence the valuation of firms.
Originality/value
A CSV index based on these indicators enables to rank MNCs according to both commercial, social and environmental criteria, and thereby transcend the divide between CSR indexes and commercial indexes.
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The purpose of this article is to study how we may identify the link between rising externality costs and corporate social responsibility (CSR) by using a market‐centric approach…
Abstract
Purpose
The purpose of this article is to study how we may identify the link between rising externality costs and corporate social responsibility (CSR) by using a market‐centric approach to CSR.
Design/methodology/approach
The paper uses indicators measuring CSR performances triggered by rising externality costs due to EU legislation on electric and electronic equipment (EEE). The case study includes three leading companies in the global electric appliances industry.
Findings
The EU legislation on EEE has increased the externality costs of the electric appliances industry. Some companies only meet the minimum requirements of the legislation, while others go beyond what is required and engage in CSR. It is found that the strongest CSR impact is related to output externalities in the authors' sample in the EEE sector, while the strongest CSR impact in the clothing sector, in an earlier study, is related to input externalities.
Practical implications
The findings suggest that governments need to adapt their CSR policies not only to general sector‐specific features, but in addition to the potential for reducing negative externalities in different parts of the value chain in each sector.
Originality/value
This article contributes to a better understanding of how government policies raise the externality costs of industries, which in turn lead these industries to strengthen their CSR performance. The study also demonstrates the usefulness of a market centric approach to CSR.
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The purpose of this paper is to analyze how drivers and barriers of corporate social responsibility (CSR) vary with regard to stages in the transformation process from a small and…
Abstract
Purpose
The purpose of this paper is to analyze how drivers and barriers of corporate social responsibility (CSR) vary with regard to stages in the transformation process from a small and medium‐sized enterprise (SME) to a multinational enterprise (MNE).
Design/methodology/approach
The main method used is a literature survey. The survey covers 47 journal articles. A limited survey of managers in the Norwegian clothing business is used to validate the findings in the literature survey.
Findings
Eight main drivers and barriers of CSR are identified in the literature survey and are also supported by a regression analysis based on Norwegian survey data. By relating the drivers and barriers to more general social science models, it is shown how they are affected by different business contexts and vary with regard to stages in the transformation process from a SME to a MNE.
Practical implications
The paper suggests that public policies for CSR should be adapted to four main contexts, referring to stages in the growth and internationalization of the firm, and overcoming barriers and boosting drivers for CSR.
Originality/value
The paper contributes to a better understanding of how and why drivers and barriers of CSR differ with respect to the size and internationalization of firms.
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Esben Rahbek Gjerdrum Pedersen and Kirsti Reitan Andersen
– The purpose of this paper is to explore current barriers and opportunities for sustainability in the fashion industry.
Abstract
Purpose
The purpose of this paper is to explore current barriers and opportunities for sustainability in the fashion industry.
Design/methodology/approach
The paper is based on a study among 36 fashion experts from academia, industry, and non-governmental organizations, who took part in an online study on sustainable fashion.
Findings
The results from the study indicates that the fashion industry faces immense social and environmental challenges and that the scale and scope of current approaches to sustainability are limited and fail to address more fundamental challenges linked to the dominant business models and consumption behaviors.
Research limitations/implications
As the study is based on the knowledge, values, attitudes, and cultural stances of the participating experts it cannot claim to provide a picture of the “real world.” Nonetheless it contributes with a nuanced understanding of current challenges and opportunities within the industry, as experienced by key stakeholders in the field.
Originality/value
The expert study approach moves beyond “good practice” case studies and allow a broader discussion of micro- and macro challenges for sustainability within the fashion industry. The learnings gained through such an approach could inspire future system level research as well as business model innovation in the industry.
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Susan Cantrell, James M. Benton, Terry Laudal and Robert J. Thomas
Over the past three years Accenture developed and applied a new measurement tool that assesses the maturity of an organization's human capital development processes, benchmarks…
Abstract
Purpose
Over the past three years Accenture developed and applied a new measurement tool that assesses the maturity of an organization's human capital development processes, benchmarks the processes' performance against other organizations, and determines the relationship of each process to bottom line business results. It is designed to help executives make significantly more informed choices about their investments in human capital. This article aims to look at this tool.
Design/methodology/approach
The tool, known as the human capital development framework, now has been tested in more than 60 organizations. This case describes how one organization used it to help turn around a struggling division.
Findings
Results of the initial implementations of the framework suggest that financial performance improves as a company improves its scoring in those critical human capital processes with strong relationships to financial success. As an organization moves from one benchmarking quartile to the next in these processes within the framework scoring, its capital efficiency – or the ratio of total annual sales to the capital invested in the operations of the business by shareholders and creditors – improves from 10 to 15 percent.
Practical implications
The framework outlined in this article provides a tool that enables company leaders to make clear‐eyed assessments of the payoff from human capital investments. It helps organizations diagnose their strengths and weaknesses in key human capital practices, to set investment priorities and track performance, and to establish an empirical link between human capital investments, business practices, and overall business performance.
Originality/value
Those organizations in the study with more mature human capital processes have better financial performance than those organizations with less mature processes. Specifically, those organizations that focus on processes devoted to three key areas – creating a people strategy aligned with the business strategy, providing supportive work environments, and developing employees by giving them ample opportunities to learn and grow – achieve far greater economic success than those that do not.
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Amal Alameeri, Mian M. Ajmal, Matloub Hussain and Petri Helo
Sustainability has become an important objective for most organizations, as it is emerging as a competitive necessity. This study aims to develop a framework for the…
Abstract
Purpose
Sustainability has become an important objective for most organizations, as it is emerging as a competitive necessity. This study aims to develop a framework for the identification, categorization and prioritization of sustainable management practices (SMPs) in the hotel sector.
Design/methodology/approach
An extensive literature review was conducted to identify SMPs in the service sector, and a survey tool was used to categorize and prioritize the most important practices based on expert opinion. An analytical hierarchical process (AHP) was used to prioritize the main criteria and sub-criteria of SMPs. The study is composed of 8 main criteria and 33 sub-criteria relevant to the hotel sector.
Findings
It is observed that employee management and government management take top priority under the main criteria, and policy requirements, customer culture and education and training were determined to be the three most relevant sub-criteria as SMPs for hotels in UAE. The results indicate that hotels mostly focus on economic sustainability; however, the environmental and social dimensions of sustainability are ignored in management practices.
Research limitations/implications
The results are derived from four- and five-star hotels and therefore cannot be generalized. In addition, future research on specific categories of hotels is needed in other countries. The current research model can be also applied in different types of companies in tourism and other sectors.
Practical implications
Hotel managers should exert greater effort with regard to the environmental and social dimensions of sustainability practices, as they are highly important. Internationally, there has been considerable debate with regard to these issues, and at present, customers are well aware of such social and environmental efforts.
Originality/value
This study offers original insights into the area of SMP in UAE, especially in the hotel sector.
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This article outlines a framework that enables company leaders to make assessments of the pay‐off from human‐capital investments.
Abstract
Purpose
This article outlines a framework that enables company leaders to make assessments of the pay‐off from human‐capital investments.
Design/methodology/approach
This briefing is prepared by an independent writer who adds her own comments and places the article in context.
Findings
Contends that organizations that focus on processes devoted to creating a people strategy aligned with business strategy, providing supportive work environments, and developing employees by giving them ample opportunities to grow, achieve greater economic success than those that do not.
Practical implications
Helps executives to determine whether they are getting significant return on their investment in human capital.
Originality/value
The briefing saves busy executives and researchers reading time by selecting only the most pertinent information and presenting it in an easy‐to‐digest form.
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Paraskevi Dekoulou and Panagiotis Trivellas
This paper aims to explore the impact of organizational structure dimensions on innovation performance as well as its implications on business customers’ relationship value and…
Abstract
Purpose
This paper aims to explore the impact of organizational structure dimensions on innovation performance as well as its implications on business customers’ relationship value and financial performance in the business-to-business (B2B) market of the Greek advertising and media industry.
Design/methodology/approach
Based on a sample of 180 executives, who are at the helm of 163 Greek advertising and media organizations, the authors apply the partial least square method to test the association of organizational structure with innovation performance, business customers’ relationship value and financial outcomes.
Findings
Findings have brought to light that training boosts organization’s capacity to innovate, whereas direct supervision as a coordination mechanism significantly restricts this capacity. Innovation performance in the advertising B2B market fosters business customers’ relationship value and financial performance, while financial outcomes are also beneficially affected by profitable relationships with customer relationship value.
Practical implications
Because of the dramatic decline in their profitability caused by the economic crisis in the past five years, Greek advertising and media companies are threatened with extinction; thus, they are required to enhance their effectiveness through the adoption of a more innovation-oriented structure. Thus, managers should facilitate structures supporting training and delimiting direct supervision to foster the development of a competitive advantage built on innovation, creativity and business clients’ relationship.
Originality/value
This study contributes to the existing relationship marketing literature because it introduced Mintzberg’s typology to measure organizational structure and led to the diagnosis of the associations between different dimensions of organizational structure and various aspects of performance in the media and advertising industry, revealing the partial mediating role of customer relationship value between innovation and financial performance in the B2B market.
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Yannis Zorgios, Orestes Vlismas and George Venieris
This study seeks to examine how the quantitative semantics of the learning curve phenomenon can be employed in order to derive monetary information for team learning observed…
Abstract
Purpose
This study seeks to examine how the quantitative semantics of the learning curve phenomenon can be employed in order to derive monetary information for team learning observed within knowledge‐intensive production environments.
Design/methodology/approach
Software development is selected as an identical example of a team‐based, knowledge‐intensive production environment. The interaction of learning rate of the developer teams and the improvements on their average solving time (i.e. productivity) is modelled as a Lotka‐Volterra predator‐prey interacting populations system establishing a causal relationship between the human capital (HC) of organizational teams and the observed learning curve effects on their performance. In addition, empirical evidence illustrates that the estimated learning rates capture the entire range of team learning effects on performance fluctuations caused by the HC.
Findings
The fluctuations on the learning rates can be interpreted as a result of the HC variability across the population of developer teams. Hence, the cost implications of the HC within knowledge‐intensive production environments can be rationalised using the quantitative semantics of the learning curve phenomenon
Research limitations/implications
The learning curve is associated with the cost side of the organizational income‐generating process limiting its potential valuation applications for team learning observed within the context of the production environments.
Originality/value
The study offers a theoretical justification, supported by empirical evidence, for employing the mathematical expression of the learning curve paradigm to rationalize the financial consequences of team learning observed within production environments.