Showing papers in "Euromed Journal of Business in 2020"

The growing complexity of customer engagement: a systematic review

Abstract: The topic of customer engagement has been growing in relevance and complexity in the last decade. Therefore, the purpose of this paper is to systematically review and critically analyse the research about customer engagement and address the research question: “What marketing research has been conducted on customer engagement until now and what could be future avenues for research?”,A systematic review of the existing literature is performed based on the Web of Science and Scopus electronic databases. A total of 144 articles are included in the final analysis.,Customer engagement is perceived as a multidimensional concept with different definitions and sub-forms associated. There is an increasing number of authors studying the concept in different industries and geographies, with empirical studies being widely used. The concept emerges from specific theoretical pillars. Different constructs are associated with customer engagement, being studied as antecedents and/or outcomes. This study presents 8 major paths for future research.,This type of approach has a certain level of subjectivity, associated to the methodological process for choosing the articles to be included in the final analysis and the applied filters.,Through this study, readers become aware of the state of the art on customer engagement and associated constructs, the gaps found in past research, the research contexts and also have a glimpse about what can be the future of this field of research, as well as research questions to be addressed.

Corporate social responsibility disclosure and firms' performance in Mediterranean countries: a stakeholders' perspective

Abstract: The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and firms' operational, financial and market performance (measured in the form of return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ), respectively) in the Mediterranean countries from a stakeholder perspective.,Research is quantitative in nature, based on a cross-sectional and time-series analysis of 203 firms listed in six Mediterranean countries for 10 years from 2008 to 2017, with 1,689 observations. The theoretical model is built on a stakeholder theory. The practical model is built on the independent variable (CSR) and the dependent variables ROA, ROE and TQ.,The findings deduced from the empirical results indicated that CSR disclosure negatively affects operational and market performance but does not affect financial performance.,Studying the relationship between CSR disclosure and firms' operational, financial and market performance, with the consideration of variations, can bring many benefits internally by being more conscious of important activities that should be undertaken and externally by detecting what regulators and other stakeholders want for better sustainable development.,This research adds value to the existing limited literature of CSR disclosure on firm's performance in the Mediterranean countries, and it gives tips of advice for firms to manage CSR disclosure wisely.

Unpacking stakeholder relationship management in the public and private sectors: the comparative insights

Abstract: This literature review paper attempts to discuss and present one’s current knowledge on the wide spectrum of stakeholder relationship management, to highlight future research opportunities.,The research is based on a literature review methodology involving different streams of research.,Diverse and distinct sections concerning stakeholder relationship management with specific regard to corporate governance and CSR, entrepreneurship and open innovation/open social innovation are discussed.,The paper presents future research opportunities concerning the wide spectrum of stakeholder relationship management.

Internal audits in the digital era: opportunities risks and challenges

Abstract: The aim of this study is to examine continuous auditing in the digital age from the perspective of audit firm employees. It also investigates contemporary factors affecting continuous auditing, as well as the techniques that could be utilised for its implementation.,Internal audit departments of private companies were contacted via email and given a questionnaire developed based on the extant literature. The sample consisted of 105 individuals employed in the largest audit institutions in Greece. Data were analysed using multiple regression.,As expected, technological advances are indispensable for the establishment of an effective digital auditing system. The impact of data protection measures against cyber-attacks as well as employees' skills and training were found to be significant. Particular attention should be given to the preparation and building of virtual auditing teams.,The fact that the digital era is still nascent with its final outcomes not yet visible makes it difficult to produce accurate predictions and draw conclusions. Further, there is a need to survey salient stakeholders in other country contexts beyond Greece pursuant of producing generalisable results.,The actions taken by companies to ensure cyber security and the formation of virtual teams were found to be highly significant for the implementation of a real-time auditing process. Traditionally, factors such as cost and time play an important role in optimising internal continuous auditing. Technological advancements combined with careful, strategic and case-specific implementation have the potential to enhance the efficacy of older methods.,The positive propensity of staff to adopt technology and modern techniques illustrates how implementation difficulties can be overcome through the redefinition and scheduling of an organisation's objectives and training of its personnel.,Audit firm employees highlighted the protection of personal data, the avoidance of cyber-attacks and training as major continuous internal auditing goals. The results indicate acceptance towards technology and modern techniques, provided companies ensure adequate preparation and staff training conditions.

The relationship between management characteristics and financial statement readability

Abstract: The present study attempts to assess the relationship between management characteristics (managerial entrenchment, CEO narcissism and overconfidence, managers' myopia, real and accrual-based earnings management) and financial statement readability of listed firms on the Tehran Stock Exchange. In other words, this paper seeks to answer the question that “whether management characteristics have a favorable effect on financial statement readability or not.”,Multivariate regression model is used to meet the purpose of this study and research hypotheses are also examined using a sample of 1,050 listed observations on the Tehran Stock Exchange during 2012–2017 and by employing multiple regression patterns based on panel data technique and fixed effects model. Moreover, exploratory factor analysis of six variables (tenure, board independence, CEO duality, CEO ownership, board compensation and CEO change) is used for calculating managerial entrenchment and the FGO index is used for measuring readability.,The obtained results show that there is a negative and significant relationship between managerial entrenchment and accrual-based earnings management and a positive and significant relationship between real earnings management, managers' myopia, managers' narcissism and overconfidence and financial statement readability.,Since the present study is the first paper to investigate such a topic in the emerging markets, it provides useful information about intrinsic and acquisitive characteristics of management for accounting information users, analysts and legal institutions that contribute greatly to financial statement readability. Besides, the results of this study aid the development of science and knowledge in this field and fill the existing gap in the literature.

Predicting purchasing behavior of green food in Algerian context

Abstract: The purpose of this paper is twofold: first, the verification of applicability of reasoned action theory to analyze consumer behavior in Algerian context; and second, the identification and analysis of factors influencing purchasing behavior in green food sector.,The authors proposed a model based on reasoned action theory that combines two types of variables, the green marketing type and personal type, in order to predict purchasing behavior of green food. The authors have established a structural equations modeling, with a path analysis on a sample of 304 Algerian consumers from Algiers town.,The model was confirmed and the results showed how green marketing and personal factors influence the green food purchasing behavior in direct and indirect way, in presence of the mediating variables’ attitude toward green food and intention to buy green food.,There is no database or any information concerning green consumption in Algerian context. There is a lack of information about green production in food field. The choice of reasoned action theory as a theory explaining the decision-making process leading to purchasing act is based on fact that the Algerian field of food sector is virgin of this type of analysis, so the authors thought it is appropriate to apply the reasoned action theory as a first initiative in this field. Also, a more recent and more innovative psychological theory should be applied in the future studies.,The study will give researchers interested in Algerian context a better understanding of consumer behavior, especially in green product case, and will open new paths for future research in the same field by the application of another psychological theory that is more recent and innovative; the study can open research paths for other fields as well, such as consumer behavior toward green cosmetic products in Algeria.,The implications of this research can assist marketers for better positioning in green food market using the results indicated in research. The better understanding of factors influencing consumer purchasing behavior will encourage contractors to invest in this field in Algiers town context.,The study was established in a context where consumer market data of green food are non-existent, so the research represents an orientation to green food marketers toward a better positioning in relation to influence factors of their market target.

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

Abstract: This study aims at examining the level of risk of disclosure practices and the effect of four board of directors' characteristics (board size, board meetings, CEO duality and board expertise) on these practices in the Jordanian context. This study also adds to the body of literature by examining the moderating effect of family ownership on the relationship between the board of directors' characteristics and the corporate risk disclosure.,The sample of this study contains the non-financial Jordanian firms listed on Amman Stock Exchange (ASE). 376 annual reports of the sampled firms over four years from 2014 to 2017 were used. The content analysis approach was used to collect data and to determine the level of risk disclosure by computing the number of risk-related sentences in the annual reporting. To test the study's hypothesis, the random effect model was employed.,The empirical results show that the total of the risk disclosure sentences for each firm ranges from a minimum value of 2 sentences to a maximum value of 61 sentences, and the mean of CRD is 28 sentences. The results also indicate that the board expertise is positively related with the level of risk disclosure. Conversely, CEO duality has a negative impact on the risk disclosure practices. However, the results failed to support that the board size and the board meetings have a significant effect on the level of risk disclosure. Furthermore, the study demonstrated that the family ownership moderates the relationship between the board of directors and the corporate risk disclosure.,The finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.,The current study contributes to the literature of risk disclosure because the previous research has paid little attention to this topic in Jordan. To the best knowledge of the researcher, this study is the first Jordanian study that focuses on examining the relationship between the board of directors' characteristics and the corporate risk disclosure in the non-financial sector. Furthermore, it is the first study that examines the moderating role of family ownership on such relationships. Consequently, the results of the current study draw attention to the CRD practices and the monitoring role of board of directors in Jordan.

Sport, media and actual consumption behavior: an examination of spectator motives and constraints for sport media consumption

Abstract: The present study is an initial attempt to assess the impact of motivators and constraints on individual's intention for sport media consumption. The advancement of sport media consumption has been underlined by the academic literature during the past few years. In fact, one of the most conspicuous concerns that experts in the sport industry face nowadays is the fans' preference to stay home and watch sport events. The objective of this research is to determine the impact of motivations and constraints for individuals' sport media consumption intentions.,A quantitative method was used for the purpose of this study, and a sum of 1,704 fulfilled questionnaires were obtained and analyzed by means of SPSS and AMOS,According to the results, internal and external motivators such as attachment to team, achievement, social, drama, role model and promotion observed to have a considerable impact on participants' consumption intention. Moreover, results pointed out a significant impact of structural and intrapersonal constraints on consumption intention.,The aim of the present research was to analyze the link between the constraints of spectator purposes and actual media consumption. In addition, there is an examination of generation-based factors among the spectators within the scope of possible contrasting aspects, a variable which has not been examined in any previous studies until now.

Impact of product innovativeness on technology switching in global market

Abstract: The purpose of this paper is to explore the relationship between product innovativeness and the process of technology switching. This issue is important for two reasons: (1) in mature markets, the only way to increase market share is through consumers' switching from competitor firms and (2) it is essential to determine whether the product innovation strategy can meet users' needs in high-technology markets.,Research centers (university hospitals) specializing in magnetic resonance imaging (MRI) are the lead users of the MRI market. In this market, the technology switching process was tracked using an annual conference database. Interviews with industry experts and lead users were conducted in order to determine the relationship between product innovativeness and technology switching.,The findings reveal that in the lead users' segment, technology switching is occurring at a significant level. The interviews emphasized the influence of product innovativeness on technology switching in the global MRI market, as well as the importance of adopting an open innovation process as a strategy to enhance product innovativeness.,The results can be generalized to industries with similar characteristics, such as high rates of technological change and technology heterogeneity. In high-technology markets, managers should monitor switching behavior. They should also study the influence of product innovativeness on such behavior in order to determine the correct product innovation strategy and meet users' preferences effectively.,The literature reports considerable research that investigates switching behavior, but most publications use data from a short time period and cover a limited geographical region. This is the first study that uses data to track the switching behavior of high-technology products on a global scale over a 22-year period.

Impact of skill on bi-dimensional trust within small-to-medium sized enterprises upstream relationships

Abstract: This paper examined the deterministic and moderating impacts of skill on the behavioural (benevolence) and cognitive (credibility) dimensions of trust within small-to-medium-sized enterprises (SMEs) upstream (i.e. supplier-to-customer) relationships. A theoretically grounded research model was developed that comprised of three cognitive and three behavioural antecedents of benevolence and credibility. Impact of time (i.e. chronological influences) on skill-driven bi-dimensional trust development was assessed as well.,All measures were borrowed from top ranking journals and adapted for use. An online questionnaire-based survey was conducted with UK SMEs executives who were involved in electrical and electronic components industry. A total of 231 useable questionnaires were received which represented a response rate of 15.4%. After validity and reliability checks, the collected data were subjected to partial least square analysis to verify the deterministic and/or moderating impact of skill on bi-dimensional trust.,The results supported a dual role (a moderator and a determinant) of skill on SMEs upstream relationship trust. However, the moderating effect of skill dominated the deterministic effect. Furthermore, the results indicated that skill tends to behave differently toward cognitive and behavioural dimensions of trust. Hence, how skill development is influenced by different dimensions of trust, and the role time plays in skill-driven trust enhancement should be carefully considered in SME upstream relationships. Therefore, it is suggested that the nature and context of each supplier–customer relational episode should be examined in terms of the outcomes it is designed to achieve in a relationship.,This study evaluated an in-depth association between skill and bi-dimensional trust development within SME upstream relationships. Specifically, deterministic and moderating impacts of skill on credibility and benevolence were investigated.

Emergence and development of low-tech clusters: an empirical study of five Palestinian clusters

Abstract: This study aims to analyze the nature of challenges facing five low-tech Palestinian small and medium-sized enterprise (SME) clusters and to understand their dynamics. The study proposes a number of key policies necessary to foster start-ups and the growth of the current clusters.,Five low-tech Palestinian clusters were selected for investigation. Using multiple sources of evidence, the research questions are answered using a case study approach. Twelve semi-structured in-depth interviews were conducted with representatives from the government, private sector and universities. Content analysis was used to analyze the data obtained from the interviews.,These five low-tech clusters in Palestine are located in a complex environment that imposes a mix of challenges which adversely affect their performance. The challenges facing Palestinian clusters are different in terms of their degree of complexity. The common challenges facing the Palestinian low-tech SME clusters are the fundamental lack of innovative stimulation policies or of incentives in the Palestinian ecosystem, lack of trust, unfair competition, limited access to finance, lack of access to promising markets and the limited collaboration between different parties. More focused policies are suggested to the Palestinian authorities.,Clusters represent a new and complementary way of understanding an economy, organizing economic development, enhancing competitiveness and innovation through sectoral specialization and cooperation and implementing public policies. In the overwhelming majority of Palestinian entities categorized as SMEs, clustering adds value to the firms from the point of view of productivity and by battling unemployment, which is rampant among Palestinian youth.,Even though the issue of clusters in SMEs has been well researched in developed countries, empirical studies are still lacking in this developing region. The attention given to policies in this article allows using the insights gained for cluster development in Palestine.

The impact of macro-fiscal factors and private health insurance financing on public health expenditure: evidence from the OECD countries for the period 2000–2017

Abstract: Because of the 2008 global financial crisis aftermaths, economic downturn and prolonged recession, several OECD countries have adopted an austerity compound by significantly reducing public health expenditure (PHE) for dealing with their fiscal pressure and sovereign-debt challenges. Against this backdrop, this study aims to examine the responsiveness of PHE to macro-fiscal determinants, demography, as well to private health insurance (PHI) financing.,The authors gather annual panel data from four international organizations databases for the total of OECD countries from a period lasting from 2000 to 2017. The authors apply static and dynamic econometric methodology to deal with panel data and assess the impact of several parameters on PHE.,The authors’ findings indicate that gross domestic product, fiscal capacity, tax revenues and population aging have a positive effect on PHE. Further, the authors find that both unemployment rate and voluntary private health insurance financing present a negative statistically significant impact on our estimated outcome variable. Different specifications and sample periods applied in the regression models reveal how inseparably associated are PHE and OECD's economies compliance on macro-fiscal policies for offsetting public finances derailment.,Providing more evidence on the responsiveness of PHE to several macro-fiscal drivers, it can be a helpful tool for governments to reconsider their persistence on fiscal adjustments measures and rank public health financing to the top of their political agenda. Health systems policies for meeting Universal Health Coverage (UHC) objectives, they should also take into consideration the voluntary PHI institution, especially for economies with insufficient fiscal capacity to raise public health financing.,To the best of knowledge, the impact of unemployment and voluntary PHI funding on public health financing, apart from other macro-fiscal and demographical parameters effect, remains unnoticed in the existing published studies on the topic.

Does political instability influence dividend payout policy: evidence from Tunisian Stock Exchange?

Abstract: The purpose of this study tests whether political instability influence financial decision-making behavior of Tunisian-listed firms, in particular dividend payout policy.,This paper uses dividend payout decisions announced over the period 2008–2015 by nonfinancial firms listed on the Tunisian Stock Exchange. A logistic regression is applied to analyze the relationship between political instability and dividend payout decision “changes. These latter are: past non-payers” dividend initiation, past payers' dividend termination, dividend payout “increasing and dividend payout” decreasing. Political instability variables used are as follows: number of changes in government head and dummy variables indicating the changes of ruling party and election year.,This study shows that government head changes are positively related to dividend initiation decisions while changes in ruling party are negatively related to termination dividend decisions except for family controlled ones. These firms are more likely to stop dividend on period of ruling party changes. Moreover, firms become unwilling to increase dividend payment on the period of political instability (changes in ruling party and government head and elections) and become willing to decrease dividend payment only when the government head changes.,The empirical findings contribute to the current debate on the signaling power of dividend policy in emerging market where raising equity capital is difficult and controlling shareholders prefer reinvest benefit to pay dividends. In addition, this study has important implications for regulators and governments struggling to design policies to improve investors' confidence and boost market activity. Indeed, investors may use corporate payout as a signal for better governance.,To the author' best knowledge, this paper is the first to investigate and to compare the effect of three political instability sources; government head changes, changes in ruling party and elections, on dividend payout decision changes. This paper provides evidence that firms facing political unstable environment seek to achieve two goals when they make dividend policy: reducing financial distress probability and attracting minority owners.

Financial characteristics of takeover targets: a French empirical evidence

Abstract: The purpose of this research is to highlight the financial characteristics of large French targets which were subject to takeovers during the period 2001–2007 and thereafter deduct the implicit motivations of acquirers.,Using a global sample of 128 French listed companies (64 targets and 64 non-targets), the authors carried out Wilcoxon–Mann–Whitney testing and logistic regression in order to test nine hypotheses likely to discriminate between the two categories of companies (targets and non-targets).,According to the results, target firms are more unbalanced in terms of growth resources and less rich in liquidity than their peers. They have unused debt capacity, offer greater opportunities for growth than firms in the control group and present low levels of value creation.,The main limitation of this study is regarding the sample size, limited by the exclusive use of large firms (deals of over $100m). The scope of this research could be broadened in future by including medium-sized companies.,The authors believe that their results have two major implications. First, they enable market investors to achieve abnormal returns by investing in predicted targets through a portfolio of high takeover probability firms. Second, CEO of companies that are potentially targeted can assess their takeover likelihood in order to act and to manage such a situation for the benefit of their shareholders.,This research concerns the last wave of takeover prior to the subprime-mortgage financial crisis (2001–2007), a period that has not been sufficiently covered in empirical studies. This research contributes to the existing literature in two main respects. First, the results of this study improve our understanding of motivations for takeovers, particularly in the French context. Second, the introduction of new accounting and financial variables, not previously tested in the literature, enriches the available information concerning the profile of takeover targets.