Showing papers in "Management Research Review in 2017"

Social eWOM: does it affect the brand attitude and purchase intention of brands?

Abstract: Purpose The purpose of this paper is to examine how user-generated positive social electronic word-of-mouth (eWOM) via Facebook affects brand attitude and, consequently, influences purchase intention of smartphones. The spending patterns of consumers, particularly decision-makers, have been affected to a substantial degree by the strong presence of brands on the web. eWOM, one among the shape of net product reviews, exercises extensive influence not only on the consumers’ attitude towards the brand but also impacts their buying intentions. Design/methodology/approach A survey-based empirical study was conducted to examine the influence of social eWOM on brand attitude and purchase intention of consumers. Structural equation modeling (SEM) was applied using data collected from 311 respondents comprising users of Facebook. Findings The research established that user-generated positive eWOM on social networking site, Facebook significantly influences brand attitude and purchase intention of consumer electronics. Research limitations/implications The data set used for the study limits generalizing of results, as the data are not representative across industries or across all social media applications. The study provides a useful and interesting insight into the theory and practice of eWOM. It shows how social eWOM, an emerging communication tool, not only helps twenty-first century marketers in reaching customers, but how it also plays a vital role in affecting brand attitude and purchase intention of products. Originality/value This paper provides useful and valuable insights into the relationship between social eWOM, brand attitude and purchase intention of consumer electronics, an area that largely remains unexplored. The study can also be replicated for other products or services for future research.

Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry: Evidence from Ethiopian enterprises

Abstract: Purpose The Purpose of this paper is to examine the difference in the performance of Small Business using Entrepreneurial and market orientation. There is solid empirical evidence confirming the importance of small and medium-sized enterprises (SMEs) in economic development. Using entrepreneurial and market orientations, this paper investigates the extent to which this strategic orientation contributes to the superior performance of manufacturing SMEs. Design/methodology/approach A total of 171 SME managers participated in the survey research. Multiple and linear multiple regression were applied to test the hypotheses. Findings The empirical result reveals that integrating entrepreneurial and market orientations into the operation of SMEs contributes to superior performance, which in turn enables them to thrive in institutionally complex and economically turbulent environments. Except for innovativeness, each dimension of entrepreneurial orientation along with market orientation has a positive influence on business performance of small businesses. Practical implications Developing economies see SMEs as a path out of poverty, thereby realizing industrialization and sustainable growth. There is a keen interest to adopt proactive policies so as to create competitive domestic industries. Conversely, this can only be realized if states develop policy measures that prioritize or at least emphasize on highly growing SMEs rather than creating jobs that are neither productive nor decent. Originality/value The present paper confirms previous findings and contributes additional evidence that suggests working on entrepreneurial and market orientations of SMEs will improve performance and compensate the multi-dimensional constraints imposed by the existing market in developing economies. The finding of this study offers important insights for managers and policymakers.

Gender diversity in the Italian boardroom and firm financial performance

Abstract: Purpose This study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors. Design/methodology/approach Panel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014. Findings Gender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance. Practical implications The results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors. Originality/value Most articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

An empirical examination of firm financial performance along dimensions of supply chain resilience

Abstract: Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

The impact of transformational leadership on employees’ creativity: The mediating role of perceived organizational support

Abstract: Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.

Resource scarcity in SMEs: effects on incremental and radical innovations

Abstract: Purpose This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to scrutinise whether resource scarcity among SMEs has an effect on their innovation performance. Design/methodology/approach The sample was based on panel data for 302 SMEs from the mechanical and electrical engineering sectors. Firms were divided into four groups by resource scarcity: human resource scarcity, financial resource scarcity, both types of resource scarcity and no resource scarcity. To test for significant inter-group differences in innovation performance, multivariate analysis of covariance and a multiple discriminant function analysis were carried out. Findings The results indicated that resource scarcity can have a positive effect on incremental but not radical innovation performance in SMEs. However, the authors found this to be true for financial resource scarcity only. Research limitations/implications These results may not be applicable to all SMEs, as the authors only focused on the industries of mechanical and electrical engineering. Future studies should focus on analysing the internal structures of SMEs that led to this study’s results. More research should also be conducted on ways that resource-limited SMEs can appropriately conduct radical innovations. Finally, resources should be made available for both practitioners and academics, explaining why the acquisition of resources is not always be the best option in response to limited resources. Practical implications These results indicate that resource-constrained SMEs, especially those that struggle with limited finances, should concentrate their innovation activities on incremental rather than radical innovations. Originality/value This study closes the knowledge gap as to whether it is beneficial for resource-limited SMEs to focus on either incremental or radical innovation. From the theoretical viewpoint, the resource-based view provides two strategies for resource-limited SMEs: acquiring new resources or recombining available resources. The authors were able to clearly demonstrate for the first time that the recombination of resources is especially important for SMEs that specifically wish to pursue incremental innovation.

Operational or strategic benefits: Empirical investigation of internet adoption in supply chain management

Abstract: Purpose The purpose of this study is twofold: identifying important determinants for effective adoption of internet technologies in an organizational supply chain context and examining and classifying benefits yielded from internet adoption in supply chain. Design/methodology/approach A structured Web-based questionnaire was designed and administered to respondents to collect the primary data. With two reminders, this study managed to obtain 236 respondents from different industries in Malaysia. Structural equation modelling was applied to test the seven hypotheses. Findings Four of five factors were significant for successful implementation of internet technologies in organizations. In addition, results suggested that internet technologies contribute more to operational activities rather than strategic initiatives, which would be one of the main contributions of this study. Research limitations/implications This study is limited by its being based on organizational perception rather than absolute value for measuring the benefits of internet adoption. Moreover, this study applied the cross-sectional technique which may limit generalizability of the findings. Practical implications This study provides in-depth knowledge about internet adoption and benefits for the organization by combining both theoretical and empirical knowledge. It helps managers to understand the importance and process of internet adoption. Originality/value Organizations who are interested in adopting the internet in their supply chain may feel that these results will guide them in making their final decision.

Market orientation, marketing capabilities and sustainable innovation: The mediating role of sustainable consumption and competitive advantage

Abstract: Purpose This study aims to observe the association between market orientation (MO), marketing capabilities and sustainable innovation and to determine the contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators. Design/methodology/approach The data for this study were collected by administering a survey, and well-defined scales were used for quantifying the data. Theories propounded by various authors were used to form the theoretical framework of the study while keeping those theories relevant to the Indian context. The study uses structural equation modelling to empirically test proposed hypothesis and research model of the relationships. Findings The results indicated that MO has a positive influence on marketing capabilities, including product development, communication, channel linking and pricing. The study also found, albeit with exceptions, a positive association between marketing capabilities and sustainable innovation. These exceptions were communication capability on technical innovations and channel linking capability on non-technical innovations. In addition, findings reveal that marketing capabilities fully mediate MO to performance link while sustainable consumption partially mediates the relation between sustainable innovation and competitive advantage. Competitive advantage also partially mediates marketing capabilities to performance relationship. Research limitations/implications This study deals with four marketing capabilities only and uses cross-sectional data, instead of longitudinal data, that comprises data of 192 service firms in India. Originality/value The study sets forth empirical evidence for the argument that specific marketing capabilities lead to sustainable innovation. The study further clarifies contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators in the proposed research model.

Credibility of online reviews and its impact on brand image

Abstract: Purpose Brand image is considered as a signaling phenomenon because high brand image ensures quality product that can reduce consumer’s uncertainty. A strong brand image induces consumers to pay higher prices, which in turn provides competitive advantage and market success to a company. Online reviews, blogs and texts on brand usage experiences are more effective than oral communication to build a strong brand image. Online reviews on products create distinct places for brands in the consumer’s mind, and thus ultimately affect images of the brands. Therefore, the purpose of this study is to investigate the effects of online reviews on functional and hedonic brand images in the context of consumer electronic products in India. Design/methodology/approach The present study adopts a novel approach to collect data. The data have been collected from select e-commerce sites’ brand pages on Facebook through Google form application. A number of respondents are 1,038. Structural equation modeling technique has been used to examine the effects of online reviews on functional and hedonic brand images. Findings The data analysis reveals that source and review quality have more significant effect on credibility evaluation of online reviews as compared to the effects of review consistency and receiver. Moreover, credible online reviews have more impact on hedonic brand image rather than functional brand image in the context of consumer electronics product in India. Originality/value The present study combines Yale attitude change model and attribution theory to examine the effects of online reviews on brand image.

Consumer attitude and preference in the Islamic mortgage sector: a study of Malaysian consumers

Abstract: Purpose The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage sector in Malaysia. The present study also examines the effect of attitudinal-behaviour on consumer preference towards preference of Islamic mortgage selection. Design/methodology/approach The study is based on questionnaire survey. Data are collected using sample from customers of Islamic banks in Malaysia. The study collects 351 respondents. Data are analysed using partial least squares (PLS). Findings The results indicate that service quality, product choice and Islamic debt policy significantly influence consumer attitude, in turn, affecting the Islamic home financing preference. Consumer attitude also mediates the effects of service quality, product choice and Islamic debt policy on the Islamic home financing preference. Research limitations/implications Several limitations warrant future research. First, this study considers only a specific user group in one public university. Second, this study does not consider attitude as a moderator. Third, this study suffers from the limited number of factors used. These limitations, however, provide directions for future research. Practical implications Our results will add value to the consumer preference topic for Islamic home financing literature. The present study provides bank managers with valuable insights into better planning of Islamic home financing services in Malaysia. Originality/value This study is a pioneering effort at exploring consumer attitude and preference from the context of Islamic mortgage sector in Malaysia. The use of PLS analysis provides another important contribution to the literature in this area.

Do employees' private demands lead to Cyberloafing? The mediating role of job stress

Abstract: Purpose Cyberloafing has been reported as a prevalent practice among employees and has been called the hidden epidemic killing business productivity. Given the importance of this issue, this study aims to propose and empirically test a research model to investigate the relationships between private demands, job stress and cyberloafing, premised on border theory, conservation of resources theory and general strain theory. Design/methodology/approach A total of 301 usable data were collected from employees who work in the ICT sector, using self-reported questionnaires that are subsequently analysed using Partial Least Square (PLS) structural equation modelling. Findings The results of this study have revealed that both private demands and job stress are positively related to cyberloafing. In addition, job stress is positively related to private demands and also partially mediates the relationship between private demands and cyberloafing. Therefore, the findings are suggestive of employee’s job resources being depleted when they cross between work and non-work domains as they attempt to satisfy their private demands. As a result, insufficient job resources channelled towards handling job-related demands results in job stress, followed by their engagement in cyberloafing behaviour as a coping mechanism. Originality/value The main theoretical contribution of this research is to expand upon the existing knowledge of the relationship between private demands and cyberloafing by demonstrating the mediating effect of job stress. Interestingly, the findings revealed that employees’ non-work domain can have a significant influence on both emotions and behaviours at work.

HR analytics and performance appraisal system: A conceptual framework for employee performance improvement

Abstract: Purpose This paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approach The paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. Findings The paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implications The paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/value The paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.

The role of firm-specific factors in the strategy-performance relationship: Revisiting the resource-based view of the firm and the VRIO framework

Abstract: Purpose This paper aims to attempt to bring together various organisational aspects that have never been collectively investigated before in the strategic management literature. Its main objective is to examine the relationship between “strategic orientation” and “firm performance”, in the light of two firm-specific factors (“distinct manufacturing capabilities” and “organisational structure”). The proposed research model of the present study is built upon the resource-based view (RBV) of the firm and the organisational aspect of the VRIO framework (the “O” from the VRIO model). Design/methodology/approach The study proposes a newly developed research model that adopts a four-factor approach, while examining a number of direct and indirect effects. The examination of the proposed research model was made with the use of a newly developed structured questionnaire that was distributed on a sample of Greek manufacturing companies. Research hypotheses were tested using the structural equation modelling technique. The present study is explanatory (examines cause and effect relationships), deductive (tests research hypotheses), empirical (collects primary data) and quantitative (analyses quantitative data that were collected using a structured questionnaire). Findings The empirical results suggest the coexistence of three distinct categories of effects on “firm performance”: strategy or “utility” effects, depending on the content of the implemented strategy; firm-specific effects, depending on the content of the organisational resources and capabilities; and organisational effects, depending on the implemented organisational structure. More specifically, the statistical analysis underlines the significant mediating role of “strategic orientation” and the complementary role of “organisational structure”. Finally, empirical results support the argument that “strategy follows structure”. Research limitations/implications The use of self-reported scales constitutes an inherent methodological limitation. Moreover, the present study lacks a longitudinal approach because it provides a static picture of the subject under consideration. Finally, the sample size of 130 manufacturing companies could raise some concerns. Despite that, previous empirical studies of the same field, published in respectable journals, were also based on similar samples. Practical implications When examining the total (direct and indirect) effects on “firm performance”, it seems that the effect of “organisational structure” is, almost, identical to the effect of “distinct manufacturing capabilities”. This implies that “organisational structure” (an imitable capability) has, almost, the same contribution on “firm performance” as the manufacturing capabilities of the organisation (an inimitable capability). Thus, the practical significance of “organisational structure” is being highlighted. Originality/value There has been little empirical research concerning the bundle of firm-specific factors that enhance the impact of strategy on business performance. Under the context of the resource-based view (RBV) of the firm, the present study examines the impact of “organisational structure” on the “strategy-capabilities-performance” relationship, something that has not been thoroughly investigated in the strategic management literature. Also, the present study proposes an alternate measure for capturing the concept of business strategy, the so-called factor of “strategic orientation”. Finally, the study adopts a “reversed view” in the relationship between structure and strategy. More specifically, it postulates that “strategy follows structure” and not the opposite (“structure follows strategy”). Actually, the empirical data supported that (reversed) view, challenging the traditional approach of Chandler (1962) and calling for additional research on that ongoing dispute.

Effect of entrepreneurial and market orientation on consumer engagement and performance of manufacturing SMEs

Abstract: Purpose This study aims to examine the effect of entrepreneurial and market orientations on consumer engagement and the performance of manufacturing small- and medium-sized enterprises (SMEs) under the premise of the resource-based view (RBV) theory. Design/methodology/approach This study adopts a cross-sectional design, and quantitative data were collected from 360 manufacturing SMEs in Peninsular Malaysia. SMEs were selected using a stratified multi-stage sampling method from a total of 37,861 manufacturing SMEs. The respondents were selected from Selangor, Johor, Penang, Perak, Kelantan and Terengganu, as these states make up the majority (79 per cent) of the manufacturing SMEs in Malaysia. Findings Entrepreneurial and market orientations have statistically significant positive effects on consumer engagement. Consumer engagement in turn positively affects the performance of manufacturing SMEs in Peninsular Malaysia. Findings also revealed a partial mediation of consumer engagement between entrepreneurial and market orientations on performance. Research limitations/implications A larger sample size may improve the generalizability of the findings. Managers may be able to apply the findings of this paper in developing strategies for their manufacturing SMEs, specifically, by focusing on entrepreneurial and market orientation to raise consumer engagement and to improve the overall performances of their SMEs. Originality/value This study focuses on manufacturing SMEs in Malaysia, an emerging country with conditions unique to other industrialized countries. This study aims to demonstrate that integrated entrepreneurial and market orientations have significant effects on SMEs’ performance. This relationship could be mediated by consumer engagement. Specifically, consumer orientation may influence the effect of entrepreneurial and market orientations on overall firm performance..

Reducing biases of decision-making processes in complex organizations

Abstract: Purpose This paper aims to study how biases in decision-making processes could be reduced. In this vein, over the past 30 years, scholars interested in decision-making have been raising their interest in the development of quality control tools to mitigate the effects of cognitive distortions. However, they have often neglected the use of psychological instruments for understanding the role of decision-makers’ personality in the quality of the decision-making processes. Design/methodology/approach This is an intrinsic case study about an Italian complex organization (i.e. Consorzio ELIS) which tries to shed light on the identified research question. Three decision-makers responsible for the decision processes of three new business initiatives were interviewed using a recent quality control tool (i.e. checklist) and their personality types were tracked by performing MBTI® tests. The thematic analysis, approached by using NVivo software, and after six months of direct observations inside the organization, allowed an understanding of the decision processes and their distortions. Findings The results of this study show how initiatives with frequent quality control mechanisms and different stakeholders are more able to pass the decision phase than initiatives with no controls, few participants and little difference between personalities. Originality/value The results of this work show how reducing biases of decision-making processes in complex organizations can benefit from the simultaneous use of the checklist and MBTI® test. As demonstrated, when used together, they can make more effective use of and provide better results for both, as well as providing a better quality control of the decision-making processes. From that, an approach is proposed that both takes into account the two perspectives and can work together with other cognitive problem structuring methods.

Investigating the causal link between a management improvement technique and organizational performance: The case of the HPO framework

Abstract: Purpose An important question in contemporary research is: do certain management practices cause better performance or do better performing organizations find it easier to adopt certain management practices? This question is also of importance when applying the high performance organization (HPO) framework, which is a scientifically validated technique designed to achieve and sustain a high level of performance. Many research studies correlate the HPO framework with improved organizational performance. There are, however, no studies which explicitly look at the causal relationship. This paper aims to provide empirical evidence of causality. Design/methodology/approach Longitudinal research was conducted at two companies. An HPO diagnosis was conducted at each company, after which management implemented the HPO framework. Two units at each company were selected as case studies. Data were collected, using a questionnaire and interviews, at the beginning and after 18 months, when the diagnoses were repeated. A linear regression analysis was performed to interpret the data. Findings Despite exposure to the same HPO framework techniques, organizational units achieved significantly different outcomes. In each company, one unit achieved a higher HPO score and higher organizational results, while the other unit had no change, or a lower HPO score and lower organizational results. The key factor was the manner in which unit managers applied the HPO framework. Practical implications Optimal effectiveness for the HPO framework occurs when management incorporates the HPO factors into the workplace and strives diligently to improve performance. Originality/value This research responds to the question “Do certain management practices cause better performance or do better performing organizations find it easier to adopt certain management practices?”

Organizational antecedents of job embeddedness

Abstract: A recent major development in the turnover literature is the introduction of the job embeddedness (JE) construct. Although it has been shown to impact organizational outcomes such as voluntary turnover, there is very limited research on how JE develops or its generalizability. In an effort to begin addressing this gap, this paper aims to investigate a range of presumed organizational antecedents of JE in the context of Vietnam.,A written survey questionnaire was used to collect data from employees in a state-owned company in Hanoi, Vietnam. Of the 473 survey questionnaires distributed to company employees, a total of 292 were determined usable surveys, producing an effective response rate of 61.7 per cent.,The results indicated that organizational rewards, growth opportunities and procedural justice directly influence JE. In addition, perceived organizational support was found to mediate the relationships between these organizational factors and JE.,This study contributes to the literature on both perceived organizational support and JE. In addition, this study is the first to empirically test the relationships among these two constructs and other organizational variables in the country of Vietnam.

Predicting voluntary turnover through human resources database analysis

Abstract: Purpose This paper aims to question whether the available data in the human resources (HR) system could result in reliable turnover predictions without supplementary survey information. Design/methodology/approach A decision tree approach and a logistic regression model for analysing turnover were introduced. The methodology is illustrated on a real-life data set of a Belgian branch of a private company. The model performance is evaluated by the area under the ROC curve (AUC) measure. Findings It was concluded that data in the personnel system indeed lead to valuable predictions of turnover. Practical implications The presented approach brings determinants of voluntary turnover to the surface. The results yield useful information for HR departments. Where the logistic regression results in a turnover probability at the individual level, the decision tree makes it possible to ascertain employee groups that are at risk for turnover. With the data set-based approach, each company can, immediately, ascertain their own turnover risk. Originality/value The study of a data-driven approach for turnover investigation has not been done so far.

The effect of human IT capability on organizational agility: an empirical analysis

Abstract: Purpose The purpose of this study underpins investigation of the impact of human IT capabilities (comprising business functions, interpersonal management and technology management expertise) on organizational agility (in terms of sensing and responding agilities). The moderating influence of IT infrastructure spending on this human IT–agility linkage is also thoroughly investigated. Design/methodology/approach Primary data collected from 300 IT personnel working in various publicly owned banking groups functioning across India are used for this study and structural equation modeling (SEM) is used to assess the human IT–agility link. Findings The two-fold research findings highlight the following: first, human IT capabilities enable both the sensing and responding components of agility and second, firms need to focus on translating huge and impudent IT investments into building superior capabilities to effectively shape agility. Originality/value This study greatly contributes to the information system (IS) literature by examining human IT capability and agility in terms of second-order constructs and provides a more holistic and comprehensive understanding of this unique relationship. The study precisely investigates the manner in which distinct human IT capability dimensions interact with both types of agilities along with the moderating effect of IT spending on this linkage.

Institutional investor behavioral biases: syntheses of theory and evidence

Abstract: Purpose This paper aims to review the theory and empirical evidence of institutional investor behavioral biases in the lenses of behavioral finance paradigm. It surveys the research specifically focusing on behavioral biases among institutional investors in investment management activities worldwide. Design/methodology/approach A literature survey is done to gather and synthesize evidence on behavioral biases of institutional investors. Findings The survey and analysis reveal the following findings. First, the theoretical underpinning of investors’ irrational behavior has been neglected in behavioral finance research. Second, the behavioral heuristics and biases are dynamic and complex. Third, understanding behavioral biases’ origin, causes and effects requires interdisciplinary perspectives from the fields of psychology, sociology and biology. Originality/value The analysis and alternative perspectives drawn in this paper provide new insights into the field of behavioral finance and aims to suggest researchers, practitioners and regulators on the next course of actions.

Corporate entrepreneurship and market performance

Abstract: Purpose The purpose of this paper is to investigate the effects of a firm’s entrepreneurial proclivity on market performance for large, publicly traded US firms. This study draws upon the five-dimensional view of corporate entrepreneurship (CE) and develops hypotheses aimed at understanding the effects of direct effect of CE cues of proactiveness, autonomy, innovativeness, competitive aggressiveness and risk-taking on stock performance during earnings conference calls. Design/methodology/approach The entrepreneurial orientation of 339 firm post-earnings announcement conference calls is analyzed through a content analysis of transcripts, and the impact of CE cues on stock price is measured using event-study methodology. Findings The results suggest that the cueing the CE dimensions of innovativeness, risk-taking and especially autonomy have a positive effect on market performance during conference calls, while competitive aggressiveness has a negative effect. No effect was found for proactiveness. Research limitations/implications The effect of entrepreneurial proclivity on firm value is not uniform. Not all dimensions of CE have a positive effect on market performance at a corporate level, and measuring each dimension of CE separately may be a valuable approach for future research. Practical implications Firms may create more value when they cue specific entrepreneurial attributes, and cueing competitive aggressiveness may not be desirable. Originality/value This study fills a gap in the literature by measuring the direct effect of CE cues on market performance through an innovative research design which relies on computer-aided text analysis.

A critique of normative commitment in management research

Abstract: Purpose The purpose of this paper was to critically evaluate the existing conception of normative commitment (NC; Meyer and Parfyonova, 2010) as having “two faces”, indebted obligation and moral duty. This paper proposes that NC should be unidimensional, and based on moral content. Design/methodology/approach Review and reevaluation of empirical research into NC and its fit with Meyer and Parfyonova's theory were conducted. Findings First, existing empirical research is inconsistent with Meyer/Parfyonova's theory of NC, as is their proposed motivational bases for NC having two dimensions. Research limitations/implications An important limitation is that NC is likely a culture-specific concept, so cross-cultural research will be essential to fully develop a universally valid concept of morals-based work commitment. A key implication is that despite the lack of construct validity of the currently used NC construct, morals-based commitment is surely a workplace phenomenon; meaning that steps should be taken to rehabilitate the construct, so it can be investigated in substantive research. Therefore, proposals for developing a unidimensional concept of NC that comports with morals-based forms of organizational attachment are developed. Practical implications Because of the lack of validity of the currently used NC concept, managers are advised to not rely on research using this concept to manage their employee's commitment, organizational citizenship behavior (OCB) or withdrawal behavior. Practical implications Organizational members often invest their actions at work with moral meaning. Explicating that meaning via a valid concept of NC could help management researchers understand employee support or lack of support for social responsibility initiatives. Originality/value NC is a key construct in the work commitment literature. This paper shows that the currently utilized construct is largely invalid, and develops steps to be taken to develop a valid concept of morals-based work commitment.

Enabling factors that contribute to women reaching leadership positions in business organizations: The case of management accountants

Abstract: Purpose Although the number of women working in management accounting has increased, the percentage of female executives in this area remains low. Previous studies examining the underrepresentation of women in accounting leadership positions have analyzed factors that hinder women from reaching these positions. The purpose of this paper, by contrast, is to identify factors that support the advancement of those female executives who have reached a leadership position. Further, this paper highlights the self-reported obstacles and difficulties faced by respondents in reaching their current positions. Design/methodology/approach Semi-structured interviews were conducted face-to-face with ten female executives in the management accounting departments of Austrian firms. The interview transcripts were analyzed by using the general inductive approach. Findings The results of the study show that most women classified their social skills and professional expertise as the key factors leading to their successful advancement; however, they also highlighted that ambition and luck played important roles. The authors found that support from both life partners and superiors was essential for these women in reaching their current positions and in handling difficulties when in a leadership position. Further difficulties include working time, work-life balance and motherhood. Research limitations/implications As the findings are based on interviews conducted with female Austrian executives in large (more than 250 employees) manufacturing- or service-sector firms, they are not readily generalizable. Practical implications This study identifies factors that may help prospective female management accounting executives reach leadership positions. Furthermore, less senior female management accountants may learn from this paper that women who have already reached leadership positions in management accounting may have had to cope with problems similar to those that younger and less senior female management accountants currently experience. Originality/value This paper is among the first to address gender in the field of management accounting.

Culling the brand portfolio: brand deletion outcomes and success factors

Abstract: Purpose It is difficult to ascertain the success factors and outcomes of deleting a brand, since these factors and outcomes differ by type of industries, firms, and brands, and vary based on contextual and organizational situations. Brand managers would benefit by having a guide explaining various factors that contribute to a successful brand deletion and providing measures of brand deletion success. Therefore, the purpose of this article is to present a list of success factors and outcomes of brand deletion, which brand managers can adapt to their specific brand deletion context and which academic researchers can use to further investigate the systemic aspects of brand deletion. Design/methodology/approach This article adopts a conceptual viewpoint methodology. Findings If brand deletion leads to improvements in business performance represented by better customer relationship management, superior competitive position, and boosts in financial performance without degrading stakeholder relationships, it can be called a success. Various factors contribute to this success such as a proactive approach to brand deletion with the involvement of top management and cross-functional teams, timely implementation of the decision, considering the strategic role and importance of the brand to be deleted in the overall brand portfolio, and managing interests of all key stakeholders affected by and influencing brand deletion. Originality/value Marketing practitioners can use the guidelines provided in this article and adapt it to their individual idiosyncratic contexts during brand deletion decision-making and implementation. Researchers are encouraged to further investigate the phenomenon of brand deletion strategy and focus more research attention on developing strong empirical knowledge in this important yet under-researched field.

Emissions from international transport in global supply chains

Abstract: Purpose This paper aims to highlight the importance and need to include carbon emissions from international transport in the sourcing decisions of corporate organizations and the calculation of national emissions inventories (NEIs). Design/methodology/approach The paper proposes a method of attributing emissions from international transportation in global supply chains and calculating their impact on the economic sustainability of corporate organizations through a carbon price. Findings An application of the original model developed in this paper showed that international transport emissions can have an important effect on NEIs. An example of the imports of manufactured items from China and Germany to the USA showed a 3 per cent increase in emissions from manufacturing activities in the USA. Research limitations/implications Introducing carbon pricing on international transport emissions is expected to motivate corporate leaders to include emissions from international transport as a factor in their sourcing decisions. Practical implications Inclusion of international transport emissions along with the imposition of a carbon tax are designed to act as disincentives to generating emissions from supply chain activities. It is argued that the implementation of the model may provide long-term benefits associated with reduced emissions and a level playing field to organizations which use efficient technologies in manufacturing. Social implications It is recognized that the implementation of a carbon tax on international transport emissions may face resistance from several stakeholders, including governments of exporting countries, corporations and customers, due to an increase in cost. Originality/value This paper provides an original method to include emissions from international transport in supply chain decisions.

Substitute or complement? The use of trade credit as a financing source among SMEs

Abstract: Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze a large cross-sectional panel data set of 15,897 Swedish SMEs in five industry sectors for the 2009-2012 period. Findings The study provides empirical evidence that long-term debt and profitability each significantly and negatively influence trade credit (i.e. accounts payable) and that short-term debt positively influences trade credit. Notably, while trade credit seems to complement other short-term debt, it replaces long-term debt. Moreover, firm size in terms of sales is positively related and firm age is negatively related to accounts payable. Industry affiliation is another significant explanatory variable. Practical implications The results provide debt holders, potential investors, policymakers and academic researchers with insights into the relationship between trade credit demand, on the one hand, and external financing (i.e. short- and long-term debt) and internal retained earnings (i.e. profit), on the other. From a manager’s perspective, the findings may be important for decision-making regarding trade credit use. Originality/value When investigating trade credit determinants, the literature has seldom distinguished between short- and long-term debt and considered that they may influence the use of trade credit in different ways. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a large cross-sectoral sample in a high-tax country where both bank loans and trade credit are considered important financing instruments.

Unsticking the status quo: Strategic framing effects on managerial mindset, status quo bias and systematic resistance to change

Abstract: Purpose Managerial mindset and cognitive bias can be barriers to any transformation strategy. In the case of telework, most employees express willingness to telework, yet, few firms formally enable it during regular business hours. The status quo is a daily commute to the traditional workplace. The purpose of this paper is to test framing interventions designed to harness cognitive biases through choice architecture. Design/methodology/approach Drawing upon behavioral strategy and prospect theory, this paper presents two studies: quasi-experiments with 146 senior business students and experiments in the field (replication using random assignment and extension) with 84 senior decision makers. Both studies use a one-way between-subjects design and chi-square analysis. Findings Findings support the proposition that, although cognitive biases can act as barriers to transformation, they can be re-framed through strategic interventions. Specifically, in both studies, there was a drastic increase in adoption simply by changing the way the choice was presented. Findings in the lab were cross-validated in the field. Observed shifts in preferences provide evidence that embedding the right reference point within communications can frame a decision choice more favorably. Findings also support that a bias for an implicitly perceived status quo can be overruled through an explicitly stated reference point. Research limitations/implications It is an assumption of behavioral strategy that most individuals simply respond to the gains/loss framing without being influenced by other psychological or contextual factors, and though these effects dissipate through aggregation, it is a limitation nonetheless. Indeed, using an individual construct to explain an organizational phenomenon is a well-debated topic in the field of strategy, with proponents on both sides. The distinguishing factor, here, is that behavioral strategists are only interested in results at the aggregated level. Practical implications Practitioners attempting to roll out telework adoption, or any transformation, now have proven strategies for designing frames of reference that intervene against and harness the power of loss aversion and the status quo. Social implications This paper measures micro processes that have an effect at the macro level. It explains systematic aversion to adoption as an aggregation of decision-making behavior that is seemingly subconscious. In doing so, it highlights the impact of bounded rationality perpetuated through social systems, while measuring effective interventions designed to make systematic behavior more predictable. Originality/value A novel contribution is made in designing/testing a new frame for systematic resistance to change that frames the status quo as the losing prospect. In this frame, the perceived loss is in the choice not to change, and loss aversion proves to be an effective tool for facilitating systematic change.

Market segmentation in container shipping services: a qualitative study

Abstract: Purpose Container shipping is a standardized business-to-business service market where carriers need to stay customer focused to survive. Market segmentation is an ideal solution to develop customized marketing programs for each segment, but container lines need personalized marketing programs for each customer. Hence, the purpose of this study is to develop a segmentation framework that can help container lines to profile each customer more efficiently considering their needs, strategic importance and demographics. Design/methodology/approach This study has adopted an exploratory approach. Semi-structured interviews were conducted with managers of container lines. Findings Segmentation bases are the type of customer, container volume, loyalty, seasonality, decision maker, the industry of shipper, cargo characteristics, container type, destination region and export/import. Market segmentation in container shipping can be helpful in developing effective customized marketing offering, including effective price discrimination and customized marketing communications. Practical implications A port-specific segmentation approach was adopted and a flexible segmentation framework was proposed for container lines to adapt in different hinterlands. Originality/value Unlike the literature, this study suggests market segmentation can be very helpful in customized marketing in business-to-business services like container shipping industry. This study also suggests port-specific market segmentation for container lines instead of route-specific.

The role of a firm’s innovation competence on customer adoption of service innovation

Abstract: Purpose This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level. Design/methodology/approach This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed. Findings Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption. Research limitations/implications This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity. Practical implications The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services. Originality/value This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

Applying critical realism in spirituality at work research

Abstract: Purpose This study aims to demonstrate how critical realism (CR) can be used in spirituality at work (SAW) research and to provide a practical example of CR in SAW research. Design/methodology/approach CR is a philosophical meta-theory that allows the stratification of spirituality into different levels of reality, advocates for research methods matching the ontology of the level investigated and provides complementary methods of exploring this phenomenon’s causal power in social contexts. The authors present a study where CR was used to explain how and why SAW influences ethics in organisational contexts. Findings The results demonstrate that CR provides a useful approach to bridging the positivist-interpretivist difference in SAW research. Moreover, a CR approach helped explain the underlying conditions and causal mechanisms that power SAW to influence ethical decision-making and behaviour in the workplace. Originality/value While CR has been applied in the management literature, negligible SAW research has used this approach. That which exists is either conceptual or does not discuss methods of data analysis, or describe how critical realist concepts resulted in their findings. This paper addresses that lacuna. CR also provides value, as an alternative approach to SAW research, in that it allows the use of both quantitative and qualitative methods as complementary, not confrontational methods while providing a more integrated and deeper view of SAW and its effects.