Maretno Agus Harjoto, Indrarini Laksmana and Ya wen Yang
This paper aims to examine the relationship between the nationality and educational background diversity of directors serving on corporate boards and the firms’ corporate social…
Abstract
Purpose
This paper aims to examine the relationship between the nationality and educational background diversity of directors serving on corporate boards and the firms’ corporate social performance (CSP).
Design/methodology/approach
This study measures nationality diversity by directors’ national citizenship and measures educational background diversity by countries from which they earned their undergraduate and post undergraduate degrees. It measures firms’ CSP using the MSCI ESG ratings. The study uses both univariate and multivariate analyses to empirically test the hypotheses.
Findings
Using a sample of US firms, the authors find that board nationality diversity and educational background diversity are positively associated with CSP. The findings suggest that improving director nationality diversity and educational background diversity could improve firms’ social performance.
Originality/value
This study shows that the increasing trend of foreign nationals in the US boards could shift the focus of US corporations to be more stakeholder-oriented.
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Maretno Harjoto, Indrarini Laksmana and Ya-wen Yang
This study identifies the factors that influence companies to obtain the B corporation certification. Drawing from institutional isomorphism, gender socialization theory, the…
Abstract
Purpose
This study identifies the factors that influence companies to obtain the B corporation certification. Drawing from institutional isomorphism, gender socialization theory, the ethics of care and social identity theory, the authors examine the impact of geographic locality, product market competitions and owners’ demographic characteristics on a firm’s decision to be a certified B Corporation.
Design/methodology/approach
Using two sets of data, a hand-collected sample of 743 small businesses receiving a B Corporation certification between 2007 and 2014 and a sample of 902 firms participating in a B Lab survey from 2011 to 2013, the authors examine factors that influence firms’ decision to obtain the B Corporation and their environment, social and governance (ESG) performance.
Findings
Firms in states that are democratic-leaning, have a lower hourly wage rate or have a greater religious population are more likely to be early adopters and leaders of the B Corporation movement than those in other states. On average, states with a higher unemployment rate and more democratic-leaning voters have more B Corporation certified firms in each year and over the years. Additionally, product market competition is positively associated with firms’ likelihood of obtaining B Corporation certification and their ESG scores.
Practical implications
This study brings new insights to the understanding of purpose-driven enterprises and factors that influence firms’ decision to go through the B Corporation verification and certification process.
Originality/value
This study establishes a theoretical foundation that becoming a B Corporation is a corporate social responsibility (CSR) action and shows that existing theories explaining the factors motivating companies to engage in CSR can also be applied to explain firms’ motivation to become B Corporations.
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Chang‐Chun Lee, Kuo‐Chin Chang and Ya‐Wen Yang
Integration of Cu/low‐k interconnects into the next‐generation integrated circuit chips, particularly for devices below the 90 nm technology node, has proved necessary to meet the…
Abstract
Purpose
Integration of Cu/low‐k interconnects into the next‐generation integrated circuit chips, particularly for devices below the 90 nm technology node, has proved necessary to meet the urgent requirements of reducing RC time delay and low power consumption. Accordingly, establishment of feasible and robust packaging technology solutions in relation to the structural design, as well as material selection of the packaging components, has become increasingly important. Moreover, the nature of low‐k materials and the use of lead‐free solder greatly increases the complications in terms of ensuring enhanced packaging level reliability. The foregoing urgent issue needs to be quickly resolved while developing various advanced packages. This paper aims to focus on the issues.
Design/methodology/approach
The prediction model, especially for the fatigue life of lead‐free solder joints, combined with virtual design of experiment with factorial analysis was used to obtain the sensitivity information of selecting geometry/material parameters in the proposed low‐k flip‐chip (FC) package. Moreover, a three‐dimensional non‐linear strip finite element model associated with the two levels of specified boundary condition of global‐local technique was adopted to shorten the time of numerical calculation, as well as to give a highly accurate solution.
Findings
The results of thermal cycling in experimental testing show good agreement with the simulated analysis. In addition, the sensitivity of analysis indicates that the type of underfill material has a significant effect on the lead‐free solder joint reliability.
Originality/value
A suitable combination of concerned designed factors is suggested in this research to enhance the reliability of low‐k FC packaging with Pb‐free solder joints.
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Indrarini Laksmana and Ya-wen Yang
The study aims to examine the association between product market competition and corporate investment decisions on, particularly, risk-taking and investment efficiency. Existing…
Abstract
Purpose
The study aims to examine the association between product market competition and corporate investment decisions on, particularly, risk-taking and investment efficiency. Existing theoretical studies on whether product market competition mitigates or exacerbates agency problems are inconclusive. Prior research generally finds that competition constrains management opportunism in reporting operating performance. However, the association between product market competition and managerial investment decisions has largely been unexplored.
Design/methodology/approach
The primary measure of product market competition is the Herfindahl–Hirschman Index. The authors use regression analysis to examine the association between corporate risk-taking and over-investment of free cash flow (FCF) (as dependent variables) and product market competition (as an independent variable).
Findings
Using firm-year observations from 1990 to 2010, the authors find that competition encourages managers to invest in risky investment. They also find that competition disciplines management on its use of FCFs. Overall, their results provide support for the disciplining role of product market competition in management investment decisions. The results are robust after they control for shareholder activism and executive compensations.
Originality/value
The paper contributes to the literature by providing evidence of the disciplining role of product market competition in management investment decisions. First, the results suggest that competition encourages managers to invest in risky investment. One potential explanation for the results is that competition reduces opportunities for resource diversion for management personal benefits and, in turn, decreases management risk aversion. Another explanation is that competition forces management to take more risks for the long-term survival of the company. Second, the results indicate that competition disciplines management on its use of FCFs. Although firms in highly competitive industries make investment decisions that are less conservative, they tend to avoid suboptimal investment decisions, such as over-investment of FCF, compared to their counterparts.
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Dongwei Li, Han Lin and Ya-wen Yang
– This study aims to examine whether the association between stakeholders and corporate social responsibility (CSR) documented in developed countries exists in China.
Abstract
Purpose
This study aims to examine whether the association between stakeholders and corporate social responsibility (CSR) documented in developed countries exists in China.
Design/methodology/approach
This study tests the hypothesis and examines the impact of the central government, political connection, shareholders, customers, suppliers, employees and foreign investors on CSR practices by estimating the ordinary least squares regressions.
Findings
Using the CSR indexes developed by the Chinese Academy of Social Science (CASS), this study finds that the central government, supplier concentration and foreign investors are positively associated with CSR, whereas shareholder concentration and customer concentration are negatively associated with CSR in China. Inconsistent with findings documented in developed countries, the result indicates that employee power is not associated with CSR.
Originality/value
This paper extends prior research by including stakeholders, such as government and foreign investors, who have a unique impact on CSR activities in emerging markets in addition to other stakeholders. The findings have implications in other countries where state ownership is also prevalent (Claessens et al., 2000; Faccio and Lang, 2002). While the issue of CSR has attracted growing research interest in recent years, most empirical results are based on the US data. This paper contributes to the empirical CSR research by examining determinants of CSR in an emerging market. Interestingly, some of the findings are contrary to those documented in developed countries. The contradiction suggests the danger in generalizing CSR–stakeholder research findings in developed countries to emerging economies.
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This study aims to examine the factors influencing the quality of corporate governance in South Africa (SA). Firm-level variables including performance, firm size, leverage…
Abstract
Purpose
This study aims to examine the factors influencing the quality of corporate governance in South Africa (SA). Firm-level variables including performance, firm size, leverage, investment opportunities and audit quality were identified from the corporate governance literature.
Design/methodology/approach
The study used ordinary least squares regression on firm-specific and corporate governance variables obtained from panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the Johannesburg Stock Exchange (JSE) Securities Exchange of SA.
Findings
This study found leverage, firm size and investment opportunities as the main factors influencing the quality of corporate governance in SA.
Research limitations/implications
The research findings should be interpreted in the light of the following limitations. First, the study sample consists of the 50 largest firms listed in the JSE of SA. Because these are large companies, the results may not be generalized to other smaller firms operating in SA. Second, this study is constrained to SA. Firms in other developing countries may differ from their SA counterparts.
Originality/value
The results of this study are important to the King Committee and other corporate governance regulators in Sub-Saharan Africa, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the well-being of the minority shareholders. Furthermore, the study contributes to our understanding of the variables affecting the quality of corporate governance in developing economies of Africa.
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Mohammadreza Akbari and Robert McClelland
The purpose of this research is to provide a systematic insight into corporate social responsibility (CSR) and corporate citizenship (CC) in supply chain development, by analyzing…
Abstract
Purpose
The purpose of this research is to provide a systematic insight into corporate social responsibility (CSR) and corporate citizenship (CC) in supply chain development, by analyzing the current literature, contemporary concepts, data and gaps for future discipline research.
Design/methodology/approach
This research identifies information from existing academic journals and investigates research designs and methods, data analysis techniques, industry involvement and geographic locations. Information regarding university affiliation, publishers, authors, year of publication is also documented. A collection of online databases from 2001 to 2018 were explored, using the keywords “corporate social responsibility”, “corporate citizenship” and “supply chain” in their title and abstract, to deliver an inclusive listing of journal articles in this discipline area. Based on this approach, a total of 164 articles were found, and information on a chain of variables was collected.
Findings
There has been visible growth in published articles over the last 18 years regarding supply chain sustainability, CSR and CC. Analysis of the data collected shows that only five literature reviews have been published in this area. Further, key findings include 41% of publications were narrowly focused on four sectors of industry, leaving gaps in the research. 85% centered on the survey and conceptual model, leaving an additional gap for future research. Finally, developing and developed nation status should be delineated, researched and analyzed based on further segmentation of the industry by region.
Research limitations/implications
This research is limited to reviewing only academic and professional articles available from Emerald, Elsevier, Wiley, Sage, Taylor and Francis, Springer, Scopus, JSTOR and EBSCO containing the words “corporate social responsibility”, “corporate citizenship” and “supply chain” in the title and abstract.
Originality/value
This assessment provides an enhanced appreciation of the current practices of current research and offers further directions within the CSR and CC in supply chain sustainable development.
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Hung-Tai Tsou, Ja-Shen Chen and Ya-Wen (Diana) Yu
In the contemporary business environment, companies must constantly consider methods to enhance their competitive advantage and create value for their customers. The purpose of…
Abstract
Purpose
In the contemporary business environment, companies must constantly consider methods to enhance their competitive advantage and create value for their customers. The purpose of this paper is to develop a research model based on a business ecosystem view. Within a business ecosystem, the authors identified the key factors of co-development and the manner in which these factors affect a company’s innovation performance.
Design/methodology/approach
The theoretical hypotheses are confirmed by partial least squares analysis of survey responses collected from information and communication technology (ICT) and hotel industries in Taiwan.
Findings
In both industries, the results suggest that a firm’s co-development within its own ecosystem has positive effects on innovation performance. For companies in the ICT industry, collaborative networks and partner selection have significant impacts on the firms’ co-development, but their information technology (IT) capability does not; in contrast, in the hotel industry, partner selection and IT capability have significant impacts on firm co-development, but their collaborative network does not.
Originality/value
This study contributes to the literature of business ecosystem and co-development by offering a co-development model. As both conceptual and empirical research on this topic is still underdeveloped, this study provides fresh insights into collaboration management and offers significant theoretical and managerial implications from a business ecosystem perspective.
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The purpose of this paper is to focus on selection of a location which can widely influence business strategy planning and operation profit.
Abstract
Purpose
The purpose of this paper is to focus on selection of a location which can widely influence business strategy planning and operation profit.
Design/methodology/approach
In this paper, the relationship between location strategy and clustering is primarily shown by obtaining location decision criteria and the impact of high‐tech firms with the decision‐making trial and evaluation laboratory (DEMATEL) method. Then, analytic network process (ANP) method is used to explain the value and benefits from cluster location.
Findings
The authors study decision‐making for location selection of high‐tech firms in Hsinchu Science Park. The example is based on two dimensions including network effect and transaction cost. Network effect plays a more significant role than transaction cost for this example location selection of high‐tech firms in Hsinchu Science Park. The Science Park is surrounded by entrepreneurial spirit, a significant talent pool, and support infrastructure.
Originality/value
This paper explores how high‐tech managers make their decisions on location strategy in Science Park.
Research limitations/implications
The authors found that cost and benefit factors of network effect dominate the major decision‐making in selection of location and has direct impact on strategic intent. They also have shown that the DEMATEL and ANP approaches are valuable for evaluating this situation.