Showing papers in "Review of Managerial Science in 2019"

Entrepreneurship research: mapping intellectual structures and research trends

Abstract: Using bibliometric techniques to identify connections between existing entrepreneurship studies, this article seeks to understand the scientific structure of entrepreneurship research and how entrepreneurship scholarship is organized. Co-citation data and quantitative approach were used to identify scientific publications, intellectual structures, and research trends interrelated with theories of innovative entrepreneurship. Data were gathered from the citations and co-citations found in the Science Citation Index Expanded, Social Science Citation Index, and Arts and Humanities Citation Index. Our research reveals six groups of underlying entrepreneurship theories: (1) knowledge spillover theory of entrepreneurship, (2) creation and networks theory, (3) decision-making theory, (4) specialization of labor, (5) social entrepreneurship theory, and (6) entrepreneurship in the informal economy.

Digital innovation and venturing : An introduction into the digitalization of entrepreneurship

Abstract: This special issue follows the 2018 Global Innovation and Knowledge Academy (GIKA) Conference, which took place at the Catholic University of Valencia “San Vicente Martir” in Spain from June 25th to 27th, 2018. As the eighth of its kind, the 2018 GIKA conference continued to attract the attention of scholars from around the world. The subject of this special issue—Digital Innovation and Venturing—had its own track at the GIKA conference, which served as a first-round review of some of the submissions to the journal. The special issue was also open for external submissions. As a result, this special issue includes seven contributions on the digitalization of entrepreneurship, encompassing important topics like digital business models, crowdfunding, and the sharing economy.

An individual-level perspective on intrapreneurship: a review and ways forward

Abstract: Intrapreneurship as a sub-field of entrepreneurship has increased in importance. Due to the crucial role of entrepreneurial employees with regard to innovation and competitive advantage, research has increased and various concepts have emerged. Despite the growing interest in the field, intrapreneurship is still lacking a clear classification of the related concepts as research has thus far been based on diverse theoretical approaches. Indeed, contributions in the field are fragmented, using various definitions. There is no systematic review providing an overview of the field. By distinguishing between corporate entrepreneurship, entrepreneurial orientation and intrapreneurship, this paper clearly positions intrapreneurship as individual-level concept. Most prior research has been done at the organizational level, focusing on concepts such as corporate entrepreneurship, but research concentrating on individual intrapreneurial employees is rare. Therefore, this paper closes the gap by performing a systematic literature review and using a narrow focus to present the current state of research with regard to the individual-level perspective on intrapreneurship. The results of the review make it possible to identify five different research streams based on the analytical levels applied. The research streams examined used various lenses and cover business, technological and academic contexts. In a final step, the findings and possible research agendas are integrated in a model that serves as the basis for future research initiatives. Hence the paper offers the possibility of a clearer justification for future research and is a first step towards a holistic research model related to intrapreneurship.

Coopetition as the new trend in inter-firm alliances: literature review and research patterns

Abstract: Since the end of the 1990s, the number of articles on coopetition—a relationship built on simultaneous competition and cooperation—has steadily increased in response to the growing prevalence of relationships of coopetition in many industries. The tension inherent in a relationship of coopetition with a direct competitor presents both a challenge for managers and, at the same time, an exciting and complex research area. Different researchers of coopetition have addressed the topic from vastly different perspectives, basing their research on different theoretical frameworks, types of analysis, methods, and aims. By classifying articles on coopetition published in the last 20 years, this paper presents an application of cluster analysis to examine trends and tendencies in coopetition research. The paper also assesses whether this research field has followed a coherent progression during this period. The research reveals two independent research trends within the coopetition literature. The first research trend consists of studies that have mathematically modeled and simulated coopetition scenarios using game theory, whereas the second research stream consists of theoretical research describing the dynamics and tensions of coopetition based on evidence from case studies. Based on the cluster analysis, inter-firm alliances and their governance mechanisms emerge as the most promising theoretical and practical approach to improve cooperation between competitors.

Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management

Abstract: Drawing on innovation and family business literature, this study examines the largely overlooked family effect in exploratory and exploitative innovation–performance processes via the moderating impact of the family firm image and family involvement in the top management team (TMT). Based on a sample of 91 Spanish small and medium family firms (family SMEs), our results show some interesting findings. First, we find that while family firm image is beneficial to the exploitative innovation–firm performance relationship, it has a negative impact on the exploratory innovation–performance link. Second, we find that different forms of family involvement in the TMT have different effects on the results of exploratory and exploitative innovation processes. A higher proportion of family members in the TMT negatively impacts the positive effect that both exploratory and exploitative innovation have on firm performance. We also find that a higher number of generations involved in the TMT has a positive effect on exploratory innovation–firm performance, but a detrimental effect on exploitative innovation–firm performance. Thus, our study deepens the current understanding of exploratory and exploitative innovation in family SMEs, highlighting previously overlooked effects of family firm image and two forms of family involvement in the TMT on exploration– and exploitation–firm performance relationships. Furthermore, our findings have meaningful managerial implications for the development of an attractive family firm image and an effective TMT composition in order to improve the outcomes of exploratory and exploitative innovation processes.

The perception of value of platform-based business models in the sharing economy: determining the drivers of user loyalty

Abstract: Platform-based business models have become such an essential pillar of today’s economy that the term ‘sharing economy’ is now frequently used to describe the new status quo. The success of platforms such as Airbnb, Blablacar or Shpock is evidence of a seismic shift from an ownership society to a sharing society. However, only very few platforms are able to accumulate a large and loyal following of customers. When success hinges upon engagement, a large user base can make or break one of these platforms. In our research we approach this challenge by researching platform loyalty from a customer-centric perspective. We show the impact of different value perceptions for customer-to-customer-based platforms through the use of a variance-based structural equation model. By demonstrating how customer perception of emotional value and quality value drive the loyalty of the platform, we are able to show that factors other than price determine loyal usage among platform-based business models.

Measuring brand image: a systematic review, practical guidance, and future research directions

Abstract: Measuring and understanding brand image is crucial for both branding research and practice. Empirical studies focusing on brand image reveal a large number of techniques for measuring brand image, highlighting the need to organize them. However, no comprehensive review of brand image measurement techniques can be found in the existing literature. Therefore, this article seeks to contribute to the extant knowledge of brand image by systematically reviewing the related literature, providing a comprehensive discussion and characterization of brand image measurement techniques, offering recommendations for measuring brand image through a roadmap, and suggesting directions for future research. Our systematic literature review identified 224 high-quality scholarly articles published between 1991 and 2016 using 12 main techniques for measuring brand image. This article may aid both researchers and brand managers in selecting and applying appropriate brand image measurement techniques for their specific research context.

Trust, control and knowledge transfer in small business networks

Abstract: The ability to transfer knowledge effectively in the networks of small and medium-sized firms (SMEs) is paramount for supporting firm competitiveness. Our research is the first one that explores the joint effect of trust and control mechanisms on knowledge transfer in the case of networks of SMEs. We use a multiple case study approach based on six Italian networks of SMEs. We analyse the joint impact of different ethical based trustworthiness factors—namely benevolence and integrity—and the levers of control (LOCs)—namely, belief, boundary, diagnostic and interactive LOCs—on knowledge transfer between SMEs in networks. We find that trust substitutes for the implementation of boundary, diagnostic, and belief tools, while it works jointly with interactive tools in order to support knowledge transfer. These insights not only provide a rich foundation for follow-up research, but also inform SME managers about how to increase the effectiveness and efficiency of knowledge transfer with their network partners.

Corporate scandals and the reliability of ESG assessments: evidence from an international sample

Abstract: This paper studies the reliability of environmental, social, and governance (ESG) assessments in the case of corporate scandals. Reliable disclosures on ESG assessments may reduce information asymmetries when it comes to due diligence, for instance. We use the press release of corporate scandals, which are seen as being unexpected events, and analyze ESG assessments before, during, and after the event year. We find a significant decline in retrospective controversy indicators during the period in which the scandals are released. Subsequent to the scandals, we document a rebound of these indicators. The assessments of forward-looking indicators indicate slightly significant increases during the scandal period. Moreover, our findings show that aggregated ESG assessments consisting of both retrospective and forward-looking indicators are useless when it comes to predicting corporate scandals. Therefore, the managerial implication of this paper recommends educating managers and investors upon how to obtain a comprehensive vision of the corporate social responsibility of a firm based on single ESG assessment indicators.

Gender-related factors in family business succession: a systematic literature review

Abstract: Succession is one of the most discussed topics in family business research. However, despite the changing professional and family roles of women and the growing number of female CEOs worldwide, published works in the body of literature have relatively little to say on the role of gender in succession. The article reviews the recent development in the literature related to women in intergenerational succession in family businesses with the aim of systematizing gender-related factors affecting intra-family succession, and also proposes directions for future research. Based on a sample of 35 studies published between 2005 and 2017, this paper categorizes the gender-related factors found in the literature into three categories: environment and context, people, and processes. Subsequently, the paper summarizes the current state-of-the-art in light of these three categories. Since the research on the role of gender in succession is fragmented and lacks an overall direction, we present multiple directions for future research. The present review contributes to the body of literature on the development of family business by comprehensively systematizing existing gender-related factors affecting succession.

Organizational innovation climate and individual innovative behavior: exploring the moderating effects of psychological ownership and psychological empowerment

Abstract: The present study proposes that psychological ownership for the organization and psychological empowerment are important determinants of individual innovative behavior, and serve as moderators of the climate–innovation relationship. In a study of 804 employees from 157 firms in China, we found that both of these two psychological variables had a positive relationship with individual innovative behavior. Additionally, we found psychological empowerment served as a moderator of the climate–innovation relationship, such that the relationship was stronger for individuals high in psychological empowerment. This study contributes to further understanding of the climate–innovation relationship.

Predicting customer quality in e-commerce social networks: a machine learning approach

Abstract: The digital transformation of companies is having a major impact on all business areas, especially marketing, where audiences are most volatile and loyalty is at its scarcest. Many large retail brands try to keep their client base interested by becoming partners in cashback websites. These websites are based on a specific type of affiliate marketing whereby customers access a wide range of merchants and obtain financial rewards based on their activities. Besides using this mix of traditional marketing strategies, cashback websites attract new target customers and increase existing customers’ loyalty through recommendations, using a word-of-mouth marketing strategy built on economic incentives for users who refer others to these sites. The literature shows that this strategy is one of the major areas of success of this business model because customers who join following recommendation are more active and are therefore more profitable and loyal to the brand. Nevertheless, the new users who are referred to these sites vary considerably in terms of the number of transactions they make on the site. This study advances research on the design of recommendation-based digital marketing strategies by providing companies with a predictive model. This model uses data science, including machine learning methods and big data, to personalize financial incentives for users based on the quality of the new customers they refer to the cashback website. Companies can thus optimize and maximize the return on their marketing investment.

Professionalization of management accounting in family firms: the impact of family members

Abstract: Literature on the professionalization of management accounting in family firms has extensively focused on non-family experts, such as controllers or CFOs, as drivers of this process, a somewhat one-sided view. The present study therefore aims to explore how family managers may contribute to the professionalization of management accounting in family firms. For this purpose, we develop a framework that identifies the controlling family’s ability and willingness to professionalize as necessary conditions for professionalization. We apply this framework to a single case study of a family firm situated in the German-speaking area of Europe, followed from the business’ foundation in the 1980s until 2014. Our findings show that under certain conditions, members of the controlling family may indeed primarily promote the professionalization of management accounting. Consequently, further research should not only relate the level of family influence at a firm to measures of management accounting professionalization but also consider the controlling family’s ability and willingness to professionalize management accounting.

Customer satisfaction and repurchase intention theory for the online sharing economy

Abstract: The online sharing economy can multiply the effects of its traditional counterparts. This study intends to explore consumer behavior for the sharing economy in the hotel industry. To that end, this study explores the relationships between variables for online and offline hotels to identify the differences in both relationships. In addition, this study compares the results from two research methods: structural equation modeling (SEM) and qualitative analysis with structural associations. The survey examines both Airbnb (online hotels) and conventional hotels. From SEM analyses for Airbnb and conventional hotels, all the variables have significant positive impacts on satisfaction, which then has a significant positive impact on repurchase intention. This study also discusses the differences in the coefficients for both targets. Qualitative analysis with structural associations supports different relationships and one unique relationship with structural associations for Airbnb.

Management control in multinational companies: a systematic literature review

Abstract: Executing management control across borders is crucial for multinational companies (MNCs). Various management control mechanisms serve to align foreign subsidiaries with corporate goals. Management control at MNCs has been subject of numerous studies in the past 25 years, thus highlighting the relevance of the topic. To provide a comprehensive overview of the research field, a systematic literature review including 79 articles from scientific journals has been conducted that outlines various control mechanisms and presents underlying theories as well as development over time. The design of management control and management accounting depends on internal factors at headquarters and the subsidiary as well as on external factors like culture or market requirements. The relationship of headquarters with subsidiaries and the integration into the host country context represent another influence on management control. This paper categorizes influencing factors, discusses interactions and limitations of control mechanisms and suggests implications for practice and research along with avenues for future research.

Understanding the influence of digitalization on service firm business model design: a qualitative-empirical analysis

Abstract: This paper focuses on an analysis of how service firm digitalization is reflected in the business model design. We make use of an eclectic research approach combing insights from digitalization research, service firm research, and business model research. Against the background of nine in-depth case studies including 41 interviews and covering a 3-year-period of time (2014–2017), we identify four digital service firm business model archetypes. Our findings show that implementing digital technologies and digitalizing business activities helps service firms to overcome traditional service-related business constraints. Digital technologies help to speed up service processes and to disentangle the still very often assumed linkage between human activities and services. Our data further reveals that service firms are enabled to enhance service availability and service efficiency in this realm. Interestingly, we observe no effect of ongoing digitalization on the firms’ service-related knowledge base. Changes in the knowledge base only relate to digital knowledge.

Assessing ethical efficacy, workplace incivility, and turnover intention: a moderated-mediation model

Abstract: Drawing upon the social cognitive theory and social identity theory, this study hypothesizes that ethical efficacy and perceived workplace incivility affect turnover intention via the full mediation of emotional exhaustion At the same time, organizational identification is a moderator in the development of turnover intention A field survey on 512 employees from high-tech and banking industries was conducted for empirical testing Test results using structural equation modeling and hierarchical regression analyses reveal that emotional exhaustion fully mediates the relationship between workplace incivility and turnover intention, as well as between ethical efficacy and turnover intention Organizational identification positively moderates the effect of workplace incivility on emotional exhaustion Theoretical and practical implications are discussed based on the empirical findings

Market orientation research: a qualitative synthesis and future research agenda

Abstract: The prominence of market orientation as a core organizational concept, as well as recent discussions about its contributions and shortcomings, suggest that it is time to assess the large and expanding body of research surrounding the construct. Our research takes a systematic qualitative approach to assessing extant research on market orientation, identifying problems, patterns, and paradoxes in the literature. Specifically, we provide an integration of the burgeoning empirical research on market orientation, based on a thorough synthesis of articles published over more than 25 years of inquiry. Bringing together the different strands of inquiry that have guided knowledge accumulation on market orientation, we are able to identify major theoretical gaps and omissions in the literature. We also find that while market orientation research has made considerable strides over the years, much work still needs to be done as voids remain that need to be addressed in future investigations.

Drivers and outcomes of eco-design initiatives: a cross-country study of Malaysia and Australia

Abstract: In this study, we have developed and empirically tested a model of the antecedents of eco-design initiatives and their outcome using data that was collected from 255 environmental management representatives of certified manufacturing firms in Malaysia and Australia. Our model incorporates regulations, customer pressure, social responsibility, and expected business benefits as the antecedents to the eco-design initiatives, and investigates their environmental, economic, and intangible outcomes. The results indicate that regulation and social responsibility are positively associated with eco-design initiatives, which have a positive effect on the environmental, economic, and intangible outcomes of firms in both countries. Only in Australia, customer pressure is the motivator of eco-design initiatives. As for Malaysia, expected business benefit is the driver of eco-design initiatives. This study extends the knowledge on the drivers and outcomes of eco-design initiatives in the upper middle and high-income countries.

How individual needs influence motivation effects: a neuroscientific study on McClelland’s need theory

Abstract: Among frequently used motivation theories some are built on the premise of work happening in the 60s and 70s. Since work life has changed dramatically the question arises whether these theories are still valid. This study validates the long-standing need theory of McClelland (Am Psychol 40(7):812–825, 1985. doi: 10.1037/0003-066X.40.7.812 ) using neuroscientific methods as a new lens of analysis. It neurally tests the assumptions that (1) heterogeneous rewards may result in similarly rewarding effects and (2) that these effects are enhanced if a reward closely matches an employee’s need. Therefore, we conducted an fMRI-study (n = 44; 29♀; Mage = 25.00, SDage = 2.26) in which participants completed decision tasks before receiving the heterogeneous rewards high income, respectful leadership and a company car. Additionally, participants provided information on their need for achievement, affiliation and power. Results show that the heterogeneous types of rewards lead to overlapping neural activations in parts of the brain’s reward circuitry, such as the putamen or caudate. Additionally, each of these rewards uniquely activates brain areas not stimulated by other reward types. A closer matching between the type of reward and the participants’ individual needs results in stronger neural activations in the reward circuitry. These findings support and enhance key assumptions of need theory on a neural level and further promote a personality-based approach to work motivation. From a practical standpoint they suggest need-tailored reward systems for organizations and an increased use of rewards other than money.

Improving dynamics or destroying human capital? The nexus between excess turnover and performance

Abstract: The flow of employees leaving the organization and the necessity of finding and training suitable replacements is an important issue in the day-to-day management of organizations. However, the body of research empirically examining the exact effects of such employee flows on the performance of organizations remains relatively underdeveloped. This article aims to increase our understanding of this topic by unraveling the link between excess employee turnover—a concept incorporating both the entry and exit of employees—and the performance of US public sector organizations. The results indicate that a linear negative relationship between excess employee turnover and performance surfaces in a time-lagged manner. This finding first of all suggests that human resource management should continue to devote attention to turnover and employee retention, and secondly implies that researchers should specifically take into account potential medium to long-term effects when studying excess turnover.

Fostering entrepreneurship: an innovative business model to link innovation and new venture creation

Abstract: The paper investigates the link between academic innovation and new venture creation. It presents a case study of an Italian firm that has developed an innovative business model, transforming academic innovation into new ventures and tackling some of the key challenges of the academic entrepreneurial process. This case is particularly interesting because it can be seen as an “Enterprises Factory” that has already created 14 startups. It differs from both incubators and venture capital funds because it combines different forms of support—including both technical competencies to develop the innovation and managerial and entrepreneurial skills to create a new venture—and also acts as a founder of each new venture. The paper has theoretical and practical implications since it describes how this innovative business model fosters academic entrepreneurship, and it provides a model for possible replication in different contexts.

Participation in crowdfunding among users of collaborative platforms: the role of innovativeness and social capital

Abstract: This work aims to elucidate the profile of participants in crowdfunding initiatives among users of collaborative platforms, considering them as agents with a high likelihood of taking part in these initiatives due to being users of digital services. This delimitation is performed by investigating the link between two intrinsic factors (innovativeness and social capital) and participation in crowdfunding initiatives. After the analysis of a sample generated by the Sociological Research Centre (CIS) of 422 users of collaborative platforms, it is found that the two intrinsic factors analyzed are linked with participation in crowdfunding initiatives. Moreover, differentiation in participation among users of collaborative platforms corresponds to the adoption of new services (higher for crowdfunding participants) and bridging social capital (lower for crowdfunding participants). The results obtained suggest incorporation of crowdfunding projects in vertical thematic financial platforms to take advantage of the effect of social capital and innovative capacity to increase participation and maintain diversity of effective financing formulas.

Did UEFA’s financial fair play harm competition in European football leagues?

Abstract: When introducing UEFA’s Financial Fair Play (FFP) it was argued that as a beneficial side effect competition in European football leagues should become more equilibrated and perceived as being fairer. Based on a hand-collected dataset on league results, player market values as well as investor payments of more than 300 European football clubs, we scrutinize the impact of FFP on the competitive landscape in major European football leagues. By applying a fixed-effect panel regression difference-in-differences approach, we find results that are consistent with the view that FFP might have further amplified the competitive imbalance. This might be caused by the fact that FFP raises some barriers against the entrance of new investors. Moreover, we present evidence that FFP supports the former season’s winner in terms of budget shares in the upcoming season. Overall, our results support the view that FFP turns European football leagues less equilibrated and even tends to freeze current hierarchies.

When and how often to externally commercialize technologies? a critical review of outbound open innovation

Abstract: Since the 1990s, external technology commercialization (ETC) has become increasingly relevant in business management practice and the academic literature. Frequently, ETC is praised as highly important and is often even considered an important competence of a progressive firm. To date, research has mainly focused on the opportunities and advantages of ETC, while risks and costs tend to be ignored or downplayed. This paper aims to review ETC critically. We stress that ETC might not only cause operating costs but also requires additional human resources. From a strategic perspective, we propose that ETC may result in the loss of competitive advantages through the disclosure of internal knowledge (or areas the firm is working in) or through the suboptimal allocation of R&D resources, and thereby affects a firm’s performance negatively. Finally, we propose specific implications for management and research on when and how often companies should practice ETC, and illustrate related practical experience by a case study. We thereby propose an inversely U-shaped relationship between ETC’s intensity and the firm’s profit contribution.

Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation

Abstract: In this study, we suggest a new perspective on the linkage between alliance portfolio diversity and innovation performance based on a contingency approach. Using a longitudinal data set on alliance portfolios and patents of 182 firms in the U.S. manufacturing industries, we examined that alliance portfolio diversity has a U-shaped relationship with firm-level innovation. Internal value creation capabilities in terms of routine and ability are found to moderate the relationship between alliance portfolio diversity and innovation performance: organizational search routine strengthens the relationship of alliance portfolio diversity and innovation performance while technological capabilities weaken and flip the relationship.

Developing virtual team performance: an integrated perspective of social exchange and social cognitive theories

Abstract: The emerging trend toward physically distributed work teams has necessitated a critical inquiry into the nature and roles of psychological contract and leadership in virtual settings. This study proposes a model based on social cognitive theory and social exchange theory to explain virtual team performance in the information technology industry. In the proposed model, virtual team performance is directly influenced by IT training fulfillment, transactional fulfillment, and knowledge-oriented leadership and also indirectly via the partial mediation of collective IT efficacy. This study adds to the burgeoning theoretical and empirical research on virtual teams by assessing the joint effects of psychological contract fulfillment and knowledge-oriented leadership. Empirical testing of this study at the team level, by surveying team members and leaders across two different points of time, confirms the integrated applicability of social exchange and social cognitive theories in understanding the development of virtual team performance.

Like student like manager? Using student subjects in managerial debiasing research

Abstract: Managerial debiasing studies are rare because it is often challenging to obtain manager samples to perform the required experiments. Student subjects could mitigate this difficulty, but there is widespread uncertainty regarding their implications for a study’s validity. In this paper, I first trace the debate, and structure the literature, on the use of student subjects in business research in general. Next, I propose a conceptual framework of criteria to identify under which circumstances student subjects can be valid surrogates in managerial debiasing research. Finally, I illustrate the use of the framework by repeating an extant debiasing study conducted with management practitioners with a large sample of business students (N = 1423), showing that the student sample replicates the results from the manager sample to the expected degree. I close by discussing the study’s implications, limitations, and opportunities for future research.

Organizational wisdom practices and firm product innovation

Abstract: The manner in which organizational wisdom-related variables or practices (e.g., reasoning, intuition, virtue, prudence, and aesthetics) are related to firm product innovativeness, and financial performance is rarely addressed empirically in the management literature. By studying 202 Turkish firms and employing both structural equation modeling analysis and fuzzy set qualitative comparative analysis, this study demonstrates that (a) aesthetic practice is a core antecedent of firm product innovativeness, (b) intuitive practice has an inverted U-shaped relationship with firm product innovativeness, and (c) different combinations of organizational wisdom practices are indeed related to firm product innovativeness. This study also shows the mediating role of product innovativeness partially based on the relationship between wisdom practices and firm financial performance. In addition, this study demonstrates that environmental uncertainty is positively associated with virtuous and prudent practices.

Is there a trade-off between social and financial performance of public commercial banks in India? A multi-activity DEA model with shared inputs and undesirable outputs

Abstract: Indian public commercial banks play a crucial role in the financial support for the economic development, poverty alleviation, and women's empowerment. As social banks, they have dual performance objectives of financing the vulnerable sections of society as well as providing mainstream financial services. Balancing these twin missions is the biggest challenge for these hybrid enterprises. To date, no study has been published giving evidence on whether these banks are efficient in both facets of their dual goals. For this reason, this paper adds to the literature by measuring the social and financial efficiency of a sample of 26 Indian public banks over 2011–2014 by using an innovative Multi-activity Data Envelopment Analysis (MDEA) model with shared inputs and undesirable outputs. Our study also examines whether there is a conflict or trade-off between socially responsible and for-profit banking practices. We find that Indian public banks have managed their dual mission relatively well, but on average, they have been much more efficient in social (99.4%) than conventional banking (81.9%) activity. Moreover, this study shows a significant synergy effect between social and financial performance. However, when regional differences across India are considered by comparing the social and financial efficiency scores for different degrees of economic and human development in Indian states, the significant synergy effect is only confirmed in those public banks located in less more economically developed Indian states.