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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The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is…
Abstract
The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.
The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.
In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.
The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.
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Ya-ru Yang, Jianqiong Wang and Wentao Lou
The purpose of this paper is to analyze the interaction between internal factors of corporate governance, especially the relationship between equity checks and balances and…
Abstract
Purpose
The purpose of this paper is to analyze the interaction between internal factors of corporate governance, especially the relationship between equity checks and balances and corporate social responsibility (CSR), and further analyze the mediating of green innovation performance and the moderating role of environmental uncertainty.
Design/methodology/approach
This study adopts a sample of Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2020 constructed a regulated mediation effect model, empirically tests the impact of equity checks and balances on CSR and the mediation and mediator roles of green innovation performance and environmental uncertainty.
Findings
(1) Equity checks and balances among shareholders have a significant positive impact on CSR. (2) Equity checks and balances have a positive impact on green innovation performance, green innovation performance has a positive impact on CSR and green innovation performance plays a partial mediation effect between equity checks and balances and CSR. (3) Additionally, environmental uncertainty not only moderates the relationship between Green Innovation Performance and CSR but also moderates the direct effect between equity balance and CSR, which verifies the existence of a moderated mediation effect.
Research limitations/implications
The study only considers listed companies on the Shanghai and Shenzhen stock markets as the research sample and does not include unlisted and gem enterprises.
Practical implications
The present research can offer some managerial implications about implementing equity checks and balances among shareholders, actively fulfilling CSR and developing new products.
Social implications
This study complements previous studies on the role of green innovation in corporate governance by exploring the impact of green innovation on equity checks and balances and CSR. And this study explores the dynamic moderating of environmental uncertainty within enterprises and provides another explanation for the mixed results of equity checks and balances, green innovation performance and CSR.
Originality/value
By demonstrating the influence of the ownership structure of A-shares listed companies on CSR, this paper provides a new and comprehensive theoretical framework to examine the interaction between equity checks and balances, green innovation performance, environmental uncertainty and CSR. The results can be used as a reference for corporate governance, improving innovation performance and fulfilling CSR.
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Yung-Cheng Shen, Crystal T. Lee and Wen-Ya Lin
The proliferation of digital communication on social media provides new opportunities for businesses to take advantage of Internet memes to boost customer engagement. Academic…
Abstract
Purpose
The proliferation of digital communication on social media provides new opportunities for businesses to take advantage of Internet memes to boost customer engagement. Academic literature on digital communications mostly focuses on popular forms such as selfies, branded posts, and branded emoticons. Less attention has been paid to brand memes and their implications for brand management. Based on the cue utilization theory, this research aims to investigate the informational cues of brand memes foster brand partnerships.
Design/methodology/approach
The structural equation modeling and importance-performance matrix analysis were used to empirically validate the research hypotheses with 595 respondents to an online survey.
Findings
Three informational cues of brand memes (i.e. comprehensibility, novelty, and meme-brand congruity) stimulated consumers' attitudes, which in turn impacted consumer-brand relationships. Another brand meme informational cue, sarcasm, negatively moderated the relationships between the three informational cues and consumer-brand relationships.
Originality/value
Our findings indicate that a brand can engage consumers in conversations on social media and foster long-term consumer-brand relationships through brand memes.
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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.