Showing papers in "European Management Review in 2020"

Corporate Governance Disclosure Index–Executive Pay Nexus: The Moderating Effect of Governance Mechanisms

Abstract: This paper first employs principal component analysis technique to develop and introduce an alternative UK corporate governance disclosure index to the US‐centric ones. Second, we then investigate whether this new corporate governance disclosure index can determine the level of executive pay (including CEOs, CFOs, and all executive directors) in UK listed firms, and consequently ascertain whether the governance mechanisms can moderate the pay‐for‐performance sensitivity. Employing data on corporate governance, executive pay and performance from 2008 to 2013, we find that, on average, better‐governed firms tend to pay their executives lower compared with their poorly‐governed counterparts. Additionally, our findings suggest that the pay‐for‐performance sensitivity is generally positive, but improves in firms with high corporate governance quality, implying that the pay‐for‐performance sensitivity is contingent on the quality of internal governance structures. We interpret our findings within the predictions of optimal contracting theory and managerial power hypothesis.

Investigating key antecedents and outcomes of employee-based brand equity

Abstract: A wealth of research examines firm- or consumer-based brand equity but largely ignores internal stakeholders’ perceptions of the brand asset. The present study focuses on service employees who affect both internal (i.e. other employees) and external (i.e. customers) stakeholders through their interactions. The study draws on cognitive psychology and social identity theory to develop and empirically test an integrated model of antecedents and consequences of employee-based brand equity (EBBE) that distinguishes between a cognitive and an affective route for its development via brand knowledge and brand identification respectively. The research extends the limited work on EBBE by examining how perceptions of employees about their supervisors’ brand leadership behaviors and their supervisors’ focus on their subordinates significantly drive employees’ responses to the internal brand. The proposed model also highlights the significant role of EBBE vis-a-vis two citizenship behaviors, namely brand value dissemination and customer orientation.

Organizational Learning of Absorptive Capacity and Innovation: Does Leadership Matter?

Abstract: Following the process-based definition of absorptive capacity, this study seeks to explore the mediating role of transformational and transactional leadership styles in the relationship between the three learning processes of absorptive capacity and innovation. Based on a survey in the United Arab Emirates (UAE), it was found that transformational leadership mediates the relationship between exploratory and transformational learning processes and innovation. It was also found that transactional leadership did not mediate the relationship between the internal exploitative learning process and innovation. Whilst several researchers have noted a need to develop a better theoretical understanding of the mechanisms explaining the interplay between absorptive capacity and innovation, we provide theoretical explanations of the underlying mechanism and further offer explanations as to why some firms are better able to convert external knowledge into strategic innovations when compared with others. The implications of these findings for theory and practice are delineated.

Survey Response Rates in Family Business Research

Abstract: Although family business survey research is growing in volume and publication in highly regarded management journals, we do not yet have evidence on the usual response rates in this research and on the factors that impact these response rates. This paper addresses these voids and finds that the average response rates of family business survey studies published in seven prominent outlets amount to 21%. We also find that the response rates have declined significantly over time and that the size of the survey population and the establishment of contacts with survey addressees before sending out questionnaires are significantly associated with response rates. Such precontacts and reminders seem less fruitful for family respondents than for non-family respondents.

Gender Quotas on Corporate Boards: Similarities and Differences in Quota Scenarios

Abstract: This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes

Entrepreneurial Intentions among University Students: The Moderating Role of Creativity

Abstract: This research was funded by Ministerio de Economia,Industria y Competitividad, Gobierno de Espana, grantnumber ECO2016-76783-R

Does Increased Generational Involvement Foster Business Growth? The Moderating Roles of Family Involvement in Ownership and Management

Abstract: Building upon the upper echelon perspective, we examine the effect of generationalinvolvement in management on various measures of business growth and consider differentlevels of family participati ...

Does Growth Represent Chimera or Bellerophon for a Family Business? The Role of Entrepreneurial Orientation and Family Influence Nuances

Abstract: Growth brings lifeblood to sustain longevity across generation, but also critical challenges for family business. Relying on the behavioral agency model and its assumptions on risk-bearing in family firms, we discuss and test the effect of family involvement in the top management team (TMT) on family business growth. We use an input-behavior-outcome framework based on the mediating role of entrepreneurial orientation. We also consider the moderating role of different ownership structures on the relationship between family involvement in the TMT on entrepreneurial orientation (EO). Results based on survey data collected by the STEP research consortium support the hypothesized negative effect of family involvement in the TMT on growth, fully mediated by EO. We also find that the presence of passive family members as majority shareholders and multigenerational involvement in ownership are important contingencies of the direct effect. Our evidence points to the fact that risk-bearing in family firms is not just dependent on the degree of family involvement in management, but also on the interests of different types of shareholders. We show that the at-times stylized negative traits of family firms are not universally valid, and that a comprehensive view of family influence over the business is needed to ascertain whether and to what extent these firms actually achieve growth.

Recursive and Discursive Model of and for Entrepreneurial Action

Abstract: This paper proposes a model of entrepreneurial action that integrates three distinct elements. First, it brings together action and time to articulate a recursive relationship between perception and action, mediated by consequences. Second, it brings together action and context to ground the entrepreneur’s perceptions and actions in a mesh of social orders and practices. Third, it articulates the content of perceptions and actions as discursive entries and exits in a social language game of giving and asking for reasons. We discuss a number of implications for a systematic understanding of different manifestations of entrepreneurship.

Tokenism Revisited: When Organizational Culture Challenges Masculine Norms, the Experience of Token Is Transformed

Abstract: Extant research on tokenism has documented the adverse consequences for employees in minority positions and how women's possibility of action is constrained in male-dominated contexts. We present a ...

TQM and Performance Appraisal: Complementary or Incompatible?

Abstract: Despite the scholarly interest in performance management as a key determinant of the effectiveness of enterprise process improvement methods such as total quality management (TQM) and its derivatives, few empirical studies have explicitly explored the practice of performance management systems in TQM-focused organizations. In order to redress this imbalance, this study aims to describe how organizational and managerial forces led to a performance management systems failing to embrace the core principles of process improvement methods such as TQM. Using a qualitative study of six large UK-based automobile and auto parts manufacturers, our results illustrate how manager-controlled, individual-focused, past-oriented, long-cycle, and narrowly defined performance appraisal (PA) systems can intervene to underline the ultimate potential of TQM. The paper concludes with the discussion of implications for theory and practice of TQM and human resource performance management.

Doubly disadvantaged: gender, spatially concentrated deprivation and nascent entrepreneurial activity

Abstract: © 2019 European Academy of Management. This is the peer reviewed version of: Murzacheva, E., Sahasranamam , S., & Levie, J. (2019). Doubly Disadvantaged: Gender, Spatially Concentrated Deprivation and Nascent Entrepreneurial Activity. European Management Review, Special Issue. https://doi.org/10.1111/emre.12370. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

Business incubator managers’ perceptions of their role and performance success: role demands, constraints and choices

Abstract: Using Stewart’s (1976) role framework as an analytical lens, this paper examines how business incubator managers perceive their role and performance, and the choices they make in dealing with constraints and competing demands. Given that the literature in this domain has not considered how these types of managers experience agency and structure in their role, this study is important in theory and practice terms. Drawing on 40 qualitative interviews in different UK regions, the findings demonstrate the ways in which business incubator managers see their role as pivotal in supporting the incubatee entrepreneurs and how they endeavour to address competing role demands against constraints. Notably, while funding is commonly viewed as an enabler, the findings suggest that the funding structure could act as a constraint on the incubator managers, due to the weight of perceived bureaucracy preventing the latter from operating effectively within the full remit of their role.