Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

Prospect theory: an analysis of corporate actions and priorities in pandemic crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poornima Tapas ◽  
Deepa Pillai
Keyword(s):  
Prospect Theory ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Organizational Growth ◽  
Content Type ◽  
Grounded Theory Research ◽  
Corporate Decisions ◽  
Corporate Actions ◽  
Different Sources

Purpose The purpose of this study is to examine and interpret the findings from different sources on the corporate decisions during COVID-19. Design/methodology/approach The COVID-19 is a new phenomenon; grounded theory research approach is adopted to develop propositions on prospect theory and strategic decisions. The paper examines and interprets the findings from different sources on the corporate decisions during COVID-19. Findings Conventionally, it is believed that innovation brings risks, and individuals preferred certainty over uncertainty, even if the gains under uncertainty were twice as high. But, the results of the study indicate a divergent trend. Under threat perceptions of risks, companies explore significant opportunities and possibilities for organizational growth. Practical implications The study provides a framework to analyze the strategic decisions of corporate enterprises. The decisions replicate value function as concave in a gain situation and convex in a loss realm in times of pandemic crises. Originality/value This paper uses “actions taken” by enterprises offering various solutions in the testing times. The study is multidisciplinary in nature; it analyses the transformation strategic decisions in the context of economic and social dimensions for surviving the pandemic crises. The study provides a foundation for future research, as inferences are based on select examples.

Assessing the effects of flight delays, distance, number of passengers and seasonality on revenue

Kybernetes ◽  
2019 ◽  
Vol 48 (9) ◽  
pp. 2138-2149
Author(s):  
Murat Guven ◽  
Eyup Calik ◽  
Basak Cetinguc ◽  
Bulent Guloglu ◽  
Fethi Calisir
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Future Research ◽  
Negative Effects ◽  
Flight Delays ◽  
Content Type ◽  
Positive Effects ◽  
Common Correlated Effects ◽  
Flight Delay ◽  
Airline Company

Purpose This study aims to investigate the effects of flight delays, distance, number of passengers and seasonality on revenue in the Turkish air transport industry. Design/methodology/approach The domestic return routes of a Turkish airline company were examined to address this issue. Among five cities and six airports, 14 major domestic return routes were selected. The augmented mean group (AMG) estimator and common correlated effects mean group (CCEMG) estimator were conducted with a two-way fixed effects (FE) robustness test in this study. Findings The results show that arrival flight delay and departure flight delay had negative effects on revenue, whereas the distance between airports, the number of air passengers and seasonality had positive effects on revenue. Research limitations/implications The data used in this study were retrieved from a Turkish airline company; for future research, other airline companies operating in Turkey may be included. Practical implications These findings could be evaluated by air transportation leaders to provide a guide to make strategic decisions to achieve greater performance in this competitive environment. Originality/value The originality of the paper comes from the facts that besides distance and number of passengers, the authors control for the seasonality when assessing the effects of flight delay on revenue; they use panel data techniques, which permit them to control for individual heterogeneity, and create more variability, more efficiency and less collinearity among the variables; they use two recent panel data techniques, CCEMG and AMG, allowing for cross-section dependence.

The role of work authenticity in linking strengths use to career satisfaction and proactive behavior: a two-wave study

2020 ◽  
Vol 25 (6) ◽  
pp. 617-630
Author(s):  
Makoto Matsuo
Keyword(s):  
Structural Equation ◽  
Quantitative Research ◽  
Career Satisfaction ◽  
Well Being ◽  
Future Research ◽  
Proactive Behavior ◽  
Content Type ◽  
Mediating Role ◽  
Strengths Use

PurposeAlthough positive psychology asserts that authenticity comes from identifying and using our strengths, no quantitative research has been conducted to test that relationship. This study aims to examine the mediating role of work authenticity in linking strengths use to career satisfaction and proactive behavior.Design/methodology/approachUsing a two-wave survey with nurses in two large, acute hospitals in Japan (n = 298), a structural equation model was produced.FindingsThe results show that work authenticity fully mediated between strengths use and career satisfaction, and that work authenticity partially mediated between strengths use and proactive behavior.Research limitations/implicationsAs work authenticity, career satisfaction and proactive behavior were measured at time 2, it is desirable to conduct a three-wave survey to measure these variables separately in future research.Practical implicationsIt may be imperative to recognize that employees who use their strengths are satisfied with their careers only by enhancing authenticity at work.Originality/valueThe main contribution of this study was to identify the mediating role of work authenticity in linking strengths use to both career-related well-being and proactive work behaviors.

The Role of Trust in the Acceptance of Government Cloud

2021 ◽  
pp. 2394-2414
Author(s):  
Maha A. Alrashed ◽  
Mutlaq B Alotaibi
Keyword(s):  
Risk Perceptions ◽  
Structural Equation ◽  
Quantitative Research ◽  
Equation Modeling ◽  
Future Research ◽  
Research Approach ◽  
Use Of Technology ◽  
Facilitating Conditions ◽  
The One

This study proposes and empirically examines a revised and extended Unified Theory of Acceptance and Use of Technology (UTAUT) model, while acknowledging the role of trust on government cloud (G-Cloud) acceptance. The study utilized a quantitative research approach to examine the research model with data collected from a survey administered to IT professionals at government agencies in Saudi Arabia. The model was tested using the partial least squares structural equation modeling (PLS-SEM). Results show that trust is a major predictor of behavioral intentions to use G-Cloud that reduces uncertainty associated with the cloud and mitigates risk perceptions on the one hand, and significantly increases the perceptions of usefulness on the other hand. Furthermore, results indicate that performance expectancy, social influence, and facilitating conditions are all significant determinants of G-Cloud acceptance. Based on the findings, the study highlights several implications for practice and suggests opportunities for future research in the field of government cloud.

Sensing and seizing in the apparel industry: the role of dynamic capabilities in fostering sustainable strategic orientations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Chevrollier ◽  
Fons Kuijf
Keyword(s):  
Dynamic Capabilities ◽  
Apparel Industry ◽  
Strategic Orientation ◽  
Incremental Innovation ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations ◽  
Inductive Research

Purpose This paper aims to explore how the dynamic capabilities sensing and seizing could support a sustainable (either instrumental or stewardship) strategic orientation in the apparel industry. Design/methodology/approach Through qualitative and inductive research design, ten companies from the Sustainable Apparel Coalition, specifically focusing on brands, were researched. Employees in strategic positions were interviewed. Subsequently, thematic analysis was realized to extract findings from both instrumental and stewardship organizations. Findings Instrumental organizations focus on increasing their brand, mainly by following market demands. They sense opportunities via a hierarchical organizational structure that allows for incremental innovation based on internal competition. Stewardship organizations believe in a collective approach toward conducting business effectively. While building a “sustainable case for business”, a stewardship-oriented company senses by involving their stakeholders and seeks unorthodox opportunities using a long-term internal compass as a beacon for decision-making. Originality/value Key capabilities are revealed that allow businesses and managers to reach higher levels of sustainability in a specific sector: the apparel industry. Especially the capabilities of stewardship-oriented companies and its ambidexterity provide a fertile base for future research at the nexus of organization development and sustainability.

A relational view of start-up firms inside an incubator: the case of the ARCA consortium

2018 ◽  
Vol 21 (4) ◽  
pp. 601-619 ◽  
Author(s):  
Davide Di Fatta ◽  
Francesco Caputo ◽  
Gandolfo Dominici
Keyword(s):  
Design Methodology ◽  
Single Case ◽  
Research Approach ◽  
Short Term ◽  
Collaborative Relationships ◽  
Content Type ◽  
Start Up

Purpose Analyzing the entrepreneurial ecosystem related to the ARCA consortium, the purpose of this paper is to study the relationships among the start-up firms inside an incubator. Design/methodology/approach Thanks to the adoption of the relationships concentric model and the density concentric model, the paper highlights the role of relational conditions for innovative projects in partnership among the incubated firms. Reflections herein are tested via a qualitative research approach based on a single case study: the ARCA consortium. Findings This research found that about 32 percent of relationships inside the incubator support the emergence of short-term relationships among the incubated firms. Furthermore, about 18 percent of the relationships support the emergence of strong collaborative strategies for the implementation of long-term relationships resulting in innovative pathways: innovative projects in partnership. Originality/value The most interconnected firms inside the incubator are those that play a central role also in the innovation pathway developing the higher number of innovative project in partnership. This finding emphasizes a correlation between collaborative relationships and innovation inside an incubator ecosystem.

Influence of leaders’ authentic competences on nepotism-favouritism and cronyism

2019 ◽  
Vol 43 (4) ◽  
pp. 369-386 ◽  
Author(s):  
Isaac Nana Akuffo ◽  
Kurmet Kivipõld
Keyword(s):  
Quantitative Research ◽  
Self Regulation ◽  
Negative Influence ◽  
Positive Influence ◽  
Research Approach ◽  
Self Awareness ◽  
Negative Effects ◽  
Content Type ◽  
Moral Perspective ◽  
Private And Public

Purpose The purpose of this study is to explore how an authentic leader’s internal (self-regulation, self-awareness and internalised moral perspective) and external competencies (relational transparency and balance processing) influence nepotism, favouritism and cronyism (NFC). Design/methodology/approach The study used a quantitative research approach and respondents were sampled from private and public banks across the ten regions of Ghana using survey questionnaires. Overall, 127 branch managers and 997 subordinates were sampled. The collected data were analysed using exploratory and confirmatory factor analysis, and multiple regression was used to explore the influence the of authentic leadership (AL) competences on NFC. Findings On leader’s internal competences, the results revealed that self-awareness had a significant decreasing influence on nepotism in terms of operations, while internalised moral perspective had a significant increasing influence on favouritism in the context of position. Self-regulation did not have any significant influence on NFC. Regarding the leader’s external competences, relational transparency had a significant positive influence on favouritism and nepotism, while balance processing had a significant negative influence on favouritism and nepotism in the context of position and operations, respectively. Research limitations/implications The results suggest that AL competences have a mixed influence on NFC in the context of this study. However, the findings are limited to Ghana and cannot be generalised to countries that do not share a similar culture with Ghana such as countries in Europe, North and South America, Asia and even certain countries in Africa. Practical implications The authors advise family businesses to use free and fair measures to appoint or promote employees who have the required skills to manage the office rather than appointing family members to positions without merit. Training on AL and NFC should be conducted for managers to enable them to understand the potential negative effects of NFC on the employees and the organisation at large. Social implications Laws must be passed to guard against appointments or recruitments of employees in the public sector organisations based on NFC to minimise these unethical behaviours. Originality/value This is the first study which empirically explores AL competences influence on the leaders’ behaviour in the context of NFC.

scholarly journals An ideological analysis of sustainable careers: identifying the role of fantasy and a way forward

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P. Matthijs Bal ◽  
Lee Matthews ◽  
Edina Dóci ◽  
Lucy P. McCarthy
Keyword(s):  
Design Methodology ◽  
Current Paper ◽  
Future Research ◽  
General Interest ◽  
Theoretical Understanding ◽  
Content Type ◽  
Individual Agency ◽  
The Individual

PurposeScholarly and general interest in sustainable careers is flourishing. Sustainable careers are focused on the long-term opportunities and experiences of workers across dynamic employment situations, and are characterized by flexibility, meaning and individual agency. The current paper analyzes and challenges the underlying ideological assumptions of how sustainable careers are conceptualized and advocates the inclusion of the ecological meaning of sustainability and the notion of dignity into the sustainable careers concept.Design/methodology/approachUsing Slavoj Žižek's (1989, 2001) conceptualization of ideology as fantasy-construction, the authors explore how the use of sustainable careers is influenced by fantasies about the contemporary workplace and the role of the individual in the workplace. This is a conceptual method.FindingsThe authors argue that the concept of sustainable careers is grounded in the neoliberal fantasy of the individual. The paper concludes by presenting an alternative concept of sustainable careers grounded in a dignity-perspective on sustainability, which offers an alternative theoretical understanding of sustainable careers in the contemporary workplace, sharpening its contours and usefulness in theorizing careers.Originality/valueThis paper is the first to systematically analyze the use and conceptualization of sustainable careers in the literate and to expose the ideological underpinnings of the concept. Propositions are developed to be explored by future research.

scholarly journals Re-branding the High Street: the place branding process and reflections from three UK towns

2017 ◽  
Vol 10 (4) ◽  
pp. 392-403 ◽  
Author(s):  
Nikos Ntounis ◽  
Mihalis Kavaratzis
Keyword(s):  
Knowledge Exchange ◽  
Place Branding ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Holistic Understanding ◽  
High Street ◽  
The Right ◽  
Research Stage

Purpose The main aim of this paper is to develop a holistic understanding of place branding and reflect on its practical value and implications, by drawing evidence from the rebranding process of three UK towns (Alsager, Altrincham and Holmfirth) that participated in the HSUK2020 project. Design/methodology/approach A comprehensive place branding process that includes the interrelated stages of research, deliberation, consultation, action and communication is presented. The practical value of this theoretical proposition is linked to the experiences of three UK towns that participated in the HSUK2020 project. Findings The importance of research, the challenges of participation and the role of communications in place branding processes were identified as primary issues in all towns. The results of the project demonstrate the significance of the initial research stage of the place branding process and show that the process as a whole is valuable in helping places deal effectively with identity issues. Research limitations/implications Participatory place branding processes can flourish when place stakeholders are engaged in the right context and are encouraged to work together. In addition, place brands are important cues and empower stakeholders’ participation in all stages of place brand processes. Practical implications Knowledge exchange projects that have the potential to engage a plethora of place stakeholders should be considered by practitioners for future place branding strategies. Originality/value The paper offers a refreshing practical grounding on participatory place branding concepts and theories. The value of knowledge exchange strategies for examining the field of place branding is also highlighted and can become a useful research approach for future research.

scholarly journals Motivational profiles and proactive career behaviors among the solo self-employed

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sjanne Marie Elyse van den Groenendaal ◽  
Silvia Rossetti ◽  
Mattis van den Bergh ◽  
T.A.M. (Dorien) Kooij ◽  
Rob. F. Poell
Keyword(s):  
Latent Class ◽  
Methodological Approach ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Self Employment ◽  
Motivational Profiles ◽  
Future Work ◽  
Person Centered Approach

PurposeAs the current “one size fits all” research approach is likely to be ineffective in identifying the conditions that promote the entrepreneurial career of the solo self-employed, this paper advances the current understanding of the heterogeneity among the solo self-employed.Design/methodology/approachA person-centered approach is used to identify groups among the solo self-employed based on their starting motives and to examine their engagement in proactive career behaviors.FindingsUsing Latent Class Analysis (LCA), six groups displaying distinct motivational profiles are identified: (1) the pushed by necessity, (2) entrepreneurs by heart, (3) control-seekers, (4) occupationally-driven, (5) challenge-seekers and (6) the family business-driven. In line with the argument that starting motives affect behavior because they reflect the future work selves that individuals aim for, results show that solo self-employed with distinct motivational profiles differ in their engagement in proactive career behaviors. For future research, it is recommended to examine the role of demographic characteristics in the engagement in proactive career behaviors.Originality/valueAlthough starting motives among self-employed people have been studied frequently, this research applies an innovative methodological approach by using LCA. Hereby, a potentially more advanced configuration of starting motives is explored. Additionally, this study applies a career perspective towards the domain of solo self-employment by exploring how solo self-employed with distinct motivational profiles differ in terms of managing their entrepreneurial careers.

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