Effect of board- and firm-level characteristics on the product responsibility ratings of firms from emerging markets
TL;DR: In this article, the authors examined the relationship between the board and firm-level characteristics and the product responsibility (PR) ratings of firms and found that total revenue, board size, and board diversity have a positive effect on PR ratings.
Abstract: Consumers have increasingly become more concerned about environmental degradation, wastage of critical resources and safety. Therefore, firms are adopting sustainability management practices to attract these conscious consumers. Product responsibility (PR) is an important indicator of corporate social responsibility (CSR) and sustainability management. This study examines the relationship between the board- and firm-level characteristics and the PR ratings of firms.,A temporal design with a lag of one year for a sample of 403 firms from the global emerging economies is analyzed for this purpose.,Hierarchical regression analysis shows that total revenue, board size, and board diversity have a positive effect on PR ratings.,These findings have implications for policy-level decisions on the composition of boards for the sustainable future of firms.,The study is one of the few studies that have looked into the factors affecting the PR ratings, which are an important indicator of the sustainable practices of an organization.
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TL;DR: In this paper, a cross-sectional data across 50 non-financial firms was used to test whether corporate governance predicts firm profitability in a sample of firms listed in the financial mark in Oman and found that a positive link between all the predictors is found: board size, ownership, gender, and audit committee.
Abstract: Purpose — This research aims to test whether corporate governance (CG) predicts firm profitability in a sample of firms listed in the financial mark in Oman. Design/methodology/approach — This research analyses cross-sectional data across 50 non-financial firms. This study used annual reports for the fiscal year 2018 to analyze the impact of CG on firm profitability. This work tested its hypotheses and analyzing them via the Partial Least Squares (PLS). Findings — The result of this research indicates that a positive link between all the predictors is found: board size, ownership, gender, and audit committee, and firm profitability (financial performance). Practical Implications — Originality/value — This research is the first of its kind via examining the link between this set of predictors of (CG) and firm performance in the Omani context. The present study provides empirical evidence for the researchers, policymakers, and other stakeholders. Keywords Corporate governance, Financial performance, Oman Paper Type research paper (secondary data)
34 citations
TL;DR: In this paper, the authors developed an integrated approach combining data envelopment analysis (DEA) and structural equation modeling (SEM) for estimating the working capital management (WCM) efficiency and evaluating the effects of diverse exogenous variables on the WCM efficiency and firms' performance.
Abstract: This study develops an integrated approach combining data envelopment analysis (DEA) and structural equation modeling (SEM) for estimating the working capital management (WCM) efficiency and evaluating the effects of diverse exogenous variables on the WCM efficiency and firms' performance.,DEA is applied for deriving WCM efficiency for 212 Indian manufacturing firms over a period from 2008 to 2019. Also, the effect of human capital (HC), structural capital (SC), cost of external financing (CEF), interest coverage (IC), leverage (LEV), net fixed asset ratio (NFA), asset turnover ratio (ATR) and productivity (PRD) on the WCM efficiency and firms' performance is examined using SEM.,The average mean efficiency scores ranging from 0.623 to 0.654 highlight the firms operating at around 60% of WCM efficiency only, which is a major concern for Indian manufacturing firms. Further, IC, LEV, NFA, ATR revealed direct effect on the WCM efficiency as well as indirect effect on firms' performance, whereas CEF had only a direct effect on WCM efficiency. HC, SC and PRD had no effects on WCM efficiency and firms' performance.,The findings offer vital insights in guiding policy decisions for Indian manufacturing firms.,This study is the first to identify the endogenous nature of the relationship of HC, SC, CEF, IC altogether with firms' performance, compounded by the WCM efficiency, by applying a comprehensive methodology of DEA and SEM and provides an efficiency performance model for better decision-making.
26 citations
TL;DR: In this article, the authors investigated the barriers that prevent sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs) and quantified the relative intensity of these barriers to understand the importance and dependence power of observed variables.
Abstract: The purpose of the study is two-fold. First, to find out the different barriers that prevent the implementation of sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs). Second, quantifying the relative intensity of these barriers to understand the importance and dependence power of the observed variables.,Primary data were collected via structured questionnaires from 150 Indian MSMEs working in the automobile industry. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was performed. Finally, barriers are ranked using graph theory and matrix approach (GTMA), considering the inheritance and interaction among the observed variables.,There are a total of 22 barriers to “sustainable manufacturing”. EFA and CFA models confirmed four different categories of barriers. In order of importance, they are ranked as – production and operations related; organization related; collaboration related; and government rules and regulations.,The findings show that there are multiple barriers to sustainable manufacturing. The barriers are categorized into four major categories, and their ranking provides an opportunity for prioritization from both policy and managerial perspectives. The barriers can be overcome through both policy interventions as well as through best practice sharing, benchmarking and organizational-wide initiatives.,The study is among the first studies that provide valuables insights on what are the 22 different barriers to sustainable manufacturing and its relevance to the MSMEs working in the automobile industry. The study would provide further opportunities for similar studies in different sectors.
23 citations
TL;DR: In this article, the authors identify SHRM (strategic human resource management) essential practices for the TQM (total quality management) program regarding an Indian tire manufacturing company and formulate an inclusive interrelationship to prioritize them.
Abstract: PurposeThis study aims to identify SHRM (strategic human resource management) essential practices for the TQM (total quality management) program regarding an Indian tire manufacturing company and formulate an inclusive interrelationship to prioritize them.Design/methodology/approachSemistructured interview with ten experts from the company was made to give SHRM practices scores. The SLR (systematic literature review) and TOPSIS (technique for order of preference by similarity to ideal solution) techniques are used to establish the model for 12 key practices and rank them afterward.FindingsThe findings clearly show that strategic planning and staffing, teamwork and leadership development have appeared as the top three essential practices. Simultaneously, performance measurement and evaluation, work design and analysis and promotion are identified as the bottom three practices. These essential practices are identified as contributing attributes.Practical implicationsThe findings prioritize the SHRM practices as contributing attributes that help other tire manufacturing industries identify their key practices. Moreover, it provides the necessary inputs comprised of ten experts' decisions to become more active and well prepared.Originality/valueThe novelty of this study is to identify the key practices by using SLR and measured by the TOPSIS method to rank and consider a tire manufacturing company as a case-based approach to gain high productivity and competitive advantage.
21 citations
TL;DR: In this paper, the authors examined the relationship between social and environmental accountability, attitude towards environmental advertising, materialism, and intention to purchase environmentally sustainable products (IPESP), and found that a consumer with low materialism and a positive attitude for both environmental sustainability and environmental advertising has higher chances of purchasing sustainable products.
Abstract: The purpose of the present study is to examine the relationship between Social and Environmental Accountability (SEA), Attitude towards Environmental Advertising (AEA), Materialism, and Intention to purchase Environmentally Sustainable Products (IPESP),The study sample consists of 205 business students from two B schools in India Data was collected through the survey method, and the moderated-mediation model was statistically tested using SPSS Process Macro software,The findings of the study suggest that the attitude towards social and environmental accountability (SEA) is positively associated with the intention to purchase environmentally sustainable products (IPESP) Moreover, this relationship is mediated and moderated by AEA and materialism, respectively,The findings of the study reveal that a consumer with low materialism and a positive attitude for both environmental sustainability and environmental advertising has higher chances of purchasing environmentally sustainable products,This study contributes to the existing literature on sustainability by providing a basis for understanding the moderated-mediation mechanism, which affects the relationship between SEA and IPESP; two key variables that have not been examined in combination
17 citations
References
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TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
49,666 citations
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
Abstract: ABSENT fiat, the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs.1 Our goal is to explain the survival of organizations characterized by separation of "ownership" and "control"-a problem that has bothered students of corporations from Adam Smith to Berle and Means and Jensen and Meckling.2 In more precise language, we are concerned with the survival of organizations in which important decision agents do not bear a substantial share of the wealth effects of their decisions. We argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. We contend that separation of decision and risk-bearing functions survives in these organizations in part because of the benefits of specialization of
14,045 citations
TL;DR: In this article, the authors outline a supply and demand model of corporate social responsibility (CSR) and conclude that there is an "ideal" level of CSR, which managers can determine via cost-benefit analysis.
Abstract: We outline a supply and demand model of corporate social responsibility (CSR). Based on this framework, we hypothesize that a firm's level of CSR will depend on its size, level of diversification, research and development, advertising, government sales, consumer income, labor market conditions, and stage in the industry life cycle. From these hypotheses, we conclude that there is an “ideal” level of CSR, which managers can determine via cost-benefit analysis, and that there is a neutral relationship between CSR and financial performance.
6,305 citations
TL;DR: In this article, the authors trace the evolution of the concept and definition of corporate social responsibility (CSR) and present an interesting history associated with the evolution and evolution of CSR.
Abstract: There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility (CSR). In this article, the author traces the evolution of the CSR cons...
5,403 citations
TL;DR: It is suggested that although different justice dimensions are moderately to highly related, they contribute incremental variance explained in fairness perceptions and illustrate the overall and unique relationships among distributive, procedural, interpersonal, and informational justice and several organizational outcomes.
Abstract: The field of organizationa l justice continues to be marked by several important research questions, including the size of relationships among justice dimensions, the relative importance of different justice criteria, and the unique effects of justice dimensions on key outcomes. To address such questions, the authors conducted a meta-analytic review of 183 justice studies. The results suggest that although different justice dimensions are moderately to highly related, they contribute incremental variance explained in fairness perceptions. The results also illustrate the overall and unique relationships among distributive, procedural, interpersonal, and informational justice and several organizational outcomes (e.g., job satisfaction, organizational commitment, evaluation of authority, organizational citizenship behavior, withdrawal, performance). These findings are reviewed in terms of their implications for future research on organizationa l justice.
5,097 citations