scholarly journals Human capital, income diversification and bank performance–an empirical study of East African banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Nderitu Githaiga
Keyword(s):  
Human Capital ◽  
East Africa ◽  
Control Variable ◽  
Bank Performance ◽  
Income Diversification ◽  
Content Type ◽  
Bank Managers ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

PurposeThe purpose of this paper is to examine whether income diversification moderates the relationship between human capital and bank performance.Design/methodology/approachThe study uses a sample of 53 banks and panel data for the years 2010–2018. The hypotheses are tested through hierarchical multiple regression and the choice between fixed effect and random effect estimation is based on the results of the Hausman test.FindingsThe study finds that human capital and income diversification significantly influence bank performance; however, the direction of the causality varies. While human capital has a positive effect, income diversification has a negative effect. Additionally, the interaction term has a negative and significant effect on bank performance, inferring that income diversification has an antagonistic effect on the human capital and bank performance relationship. For the control variable, liquidity and asset quality negatively affects bank performance while capitalization has a positive effect.Research limitations/implicationsHuman capital was measured as human capital efficiency (HCE), which is a quantitative measure of human capital, hence future studies can use qualitative measures. Also, the study focused on commercial banks in East Africa, future researcher may possibly consider other regions and industries, which would shed more insights.Practical implicationsThe results of this paper provide valuable insights. Bank managers can get a better understanding of the impact of human capital on bank performance, and the need to invest more in human capital development. Further, the study cautions bank managers that engaging in non-lending activities might destroy the economic value of human capital and ultimately lower performance. The study also recommends that policymakers should address the obstacles to banks' income diversification, for instance relaxing regulations restricting diversification; this might enable banks to leverage related financial service activities for optimal utilization of human capital and improve banks' profitability.Originality/valueWhile a good number of previous studies investigated the direct effect of human capital and income diversification on the performance of banks, this study examines the moderating role of income diversification on the relationship between human capital and performance of banks in East Africa.

Forecasting the schedule performance resulting from the adoption of social distancing in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hilary Omatule Onubi ◽  
Nor'Aini Yusof ◽  
Ahmad Sanusi Hassan ◽  
Ali Ahmed Salem Bahdad
Keyword(s):  
Construction Projects ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Social Distancing ◽  
Schedule Performance ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

PurposeThe coronavirus disease 2019 (COVID-19) pandemic has had major impacts on the performance of construction projects that have adopted social distancing measures. This study examines the effect of social distancing measures on project schedule performance through job reorganization on construction project sites.Design/methodology/approachResponses were obtained through a survey of 154 construction projects and analysed using the partial least square structural equation modeling (PLS-SEM) technique.FindingsThe findings established that social distancing has a negative effect on schedule performance, social distancing has a positive effect on job re-organization and job re-organization has a positive effect on schedule performance. Additionally, the results indicate that job re-organization partially mediates the relationship between social distancing and schedule performance, while social distancing moderates the relationship between job re-organization and schedule performance with low social distancing having the stronger positive effect.Originality/valueThis study contributes theoretically to a greater understanding of the impact of adopting COVID-19 safety measures such as social distancing on the schedule performance of construction projects. The study also shows how social distancing could lead to schedule performance through job reorganization.

scholarly journals The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

2020 ◽  
Vol 47 (9) ◽  
pp. 1143-1159
Author(s):  
Roseline Tapuwa Karambakuwa ◽  
Ronney Ncwadi ◽  
Andrew Phiri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
African Countries ◽  
Content Type ◽  
Econometric Approach ◽  
The Impact ◽  
The Relationship ◽  
Ssa Countries

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

Environmental management practices, operational competitiveness and environmental performance

2018 ◽  
Vol 29 (3) ◽  
pp. 588-607 ◽  
Author(s):  
Samuel Famiyeh ◽  
Ebenezer Adaku ◽  
Kwasi Amoako-Gyampah ◽  
Disraeli Asante-Darko ◽  
Charles Teye Amoatey
Keyword(s):  
Environmental Management ◽  
Developing Country ◽  
Environmental Performance ◽  
Management Practices ◽  
Operational Performance ◽  
Content Type ◽  
Environmental Management Practices ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this paper is to examine the relationship between environmental management practices (EMP) and competitive operational performance with respect to reduced cost, improved quality, improved flexibility and improved delivery as well as overall environmental performance, of firms, using data from a developing country. Design/methodology/approach The study employed a survey approach with responses from 164 informants from different industries and used partial least squares structural equation modeling to examine the relationship between EMP and competitive operational performance and their overall impact on the environmental performance of firms. Findings The results indicate that EMP by firms have a significant positive effect on firms’ competitive operational performance. Again, firms’ competitive operational performance has a partial positive effect on the overall environmental performance. It was also realized that the EMP initiated by a firm have a direct positive impact on the overall environmental performance of the firm. Research limitations/implications There is the need for organizations to take steps to plan and implement EMP since it is likely to enhance their competitive operational performance as well as their overall environmental performance. Practical implications The findings demonstrate the impact of EMP on competitive operational performance as well as on the overall environmental performance of firms. This is important as firms struggle with balancing investments in those practices against the perceived benefits that might be obtained from the practices. Originality/value The work provides insights and adds to the literature in the area of EMP and firm performance by providing evidence from a developing country environment. This study is among the few that have investigated the impact of EMP on firm performance in developing country environments.

Do firm-specific risks affect bank performance?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Asad Mehmood ◽  
Hung Phu Nguyen ◽  
Tahar Tayachi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Content Type ◽  
Nonperforming Loans ◽  
Operational Risks ◽  
Bank Managers ◽  
The Impact

PurposeThe authors examine the impact of credit, liquidity and operational risks on the financial performance of commercial banks of South Asia.Design/methodology/approachData are extracted from DataStream of 76 commercial banks of four countries, i.e. Pakistan, India, Bangladesh and Sri Lanka for the period 2009–2018. The generalized method of moments (GMM) is used to analyze the results.FindingsAll three risks are significantly associated with financial performance. The authors find that Z-score positively affects the bank performance, whereas the nonperforming loans (NPLs) ratio has a negative impact on financial performance of bank. Liquidity risk analyses show the current and loan-to-deposit (LTD) ratios positively and negatively, respectively, affect financial performance. While operational risk positively affects financial performance. The authors further present the significant effects of joint occurrence of credit and liquidity risks on financial performance.Practical implicationsFor managing credit risk, banking management should ensure the policies for granting loans and timely reimbursement of the loan installments from customers. Bank managers should regularly monitor the liquidity position by maintaining the necessary levels of loans and deposits. Management should retain a healthy capital charge to meet operational risks.Originality/valueCredit, liquidity and operational risks are considered the most important categories of risk which are faced by financial institutions. To the best of the authors’ knowledge, this is the first study which investigates the impact of these risks on banks’ financial performance in selected South Asian countries. The results of this study have relevance and probable generalizability about the impact of risks on the performance of banks in emerging markets.

The relationship between corporate social responsibility and corporate reputation in a turbulent environment: Spanish evidence of the Ibex35 firms

2015 ◽  
Vol 15 (4) ◽  
pp. 563-575 ◽  
Author(s):  
José Luis Fernández Sánchez ◽  
Ladislao Luna Sotorrío ◽  
Elisa Baraibar Diez
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Corporate Reputation ◽  
Content Type ◽  
Current Financial Crisis ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Purpose – The purpose of this study is to provide more knowledge about the model to generate reputation and its relationship in the long term with companies’ strategy of social responsibility. Particularly, research is done to test whether there is a positive effect of firms’ social behaviour (corporate social responsibility [CSR]), analysing differences of intensity and consistency, on their corporate reputation (CR) and whether the current financial crisis is a factor that has changed the relationship between both variables (moderator factor). Design/methodology/approach – This study uses a sample of 26 Spanish large firms of the Ibex35 index and covers an eight-year period from 2004 to 2011. To test the hypotheses of this research, a fixed-effects model was estimated using moderating regression analysis. Findings – The results obtained show that, for the Spanish Ibex35 companies, CSR practices according to their consistency have a significant positive effect on CR and in turbulent environments, as in the current financial crisis, it has had a significant positive influence on the CSR-CR relationship. Originality/value – Although a substantial number of empirical studies have examined the relationship between firms’ strategy and their performance, only a few of them have analysed the impact of the external environment on this relationship, whereby there is a need for longitudinal studies with different economic scenarios to achieve better knowledge of the CSR–CR relationship.

Income diversification and bank performance: evidence from BRICS nations

2018 ◽  
Vol 67 (9) ◽  
pp. 1625-1639 ◽  
Author(s):  
Shweta Sharma ◽  
Anand Anand
Keyword(s):  
Generalized Method Of Moments ◽  
Structural Response ◽  
Bank Performance ◽  
Income Diversification ◽  
Diversification Discount ◽  
Data Set ◽  
Content Type ◽  
Brics Countries ◽  
And Performance ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of income diversification on bank performance in BRICS countries as a structural response to concentration risk. The authors argue that effectiveness of this approach is conditional upon its extent and quality. To understand the role of firm-specific characteristics on effectiveness of diversification, the authors examine this relationship across asset sizes.Design/methodology/approachAn unbalanced panel data set of 169 BRICS banks is sampled over the period 2001–2015. Fixed effect models and system generalized method of moments techniques are used to test the relationship between diversification and bank performance using alternate measures.FindingsResults indicate a positive relationship between diversification and performance measured in terms of bank risk and returns for medium and large size banks. However, for small banks this relationship is negative suggesting a “diversification discount.”Originality/valueThe study indicates that diversification as a risk mitigating tool can be effective but the managers and regulators should not emphasize on the “one-size-fits-all” approach for all banks. Policy frameworks for controlling concentration risk should be developed keeping in mind factors like bank size, customer base and financial leverage which brings variations to the risk profile of banks.

scholarly journals The impact of intellectual capital in organizational innovation: case study at Kuwait Petroleum Corporation (KPC)

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanan Ali Almutirat
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Organizational Innovation ◽  
Case Study Methodology ◽  
Content Type ◽  
Sustainable Environment ◽  
Human Aspects ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to study the relationship between intellectual capital and organizational innovation in Kuwait Petroleum Corporation (KPC) through a case study at KPC on the employees of the corporation (The study population was 2,180 respondents and the sample size was 335 respondents). Design/methodology/approach The statistical package for social science was used to analyze the data. While trying to explore the relationship between intellectual capital and innovation, the researcher used the descriptive analytical method and the case study methodology using various references, periodicals, internal and external documents and data, in addition to conducting a field study on a sample of employees of KPC, through a questionnaire form containing the axes that reflect the study variables. Findings There is a relative approval between the sample of the research on the existence of a good role for training in the corporation in terms of availability for all employees and the compatibility of training programs with the actual needs of employees, and linking the training paths and career paths for promotions in the corporation. The researcher attributed this to the employees' awareness to the importance of training and its role in raising their performance levels, and the awareness of the corporation to the importance of training and capacity building of the human element. Originality/value The research, in general, demonstrated the importance of human capital as the organization's most valuable assets, especially as it supports creativity and innovation, thus enabling competitiveness. The research stressed that human capital is the most important element in the formation of intellectual capital, which requires decision-makers to support it and give the intellectual and human aspects a strategic content that meets the needs to develop innovation and institutional education and to recruit systems and indicators to measure the performance objectively to achieve the goal of survival of the corporation in a competitive sustainable environment, through providing material and moral potentials that can support the implementation of organizational innovation at various levels.

Too much of a good thing?: The impact of ethical controls and perceived controllability on salesforce job performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joon-Hee Oh ◽  
Wesley J. Johnston ◽  
Carolyn Folkman Curasi
Keyword(s):  
Job Performance ◽  
Perceived Control ◽  
Self Efficacy ◽  
Ethical Climate ◽  
Theoretical Perspective ◽  
Content Type ◽  
Organizational Ethical Climate ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this paper is to attempt to better understand the relationship between organizational ethical climate, the internalization of ethical codes (INT), perceived control and business-to-business (B2B) and retail salesperson job performance. This research develops and tests a model that examines these relationships to better understand the relationship of these variables to salesperson job performance. Design/methodology/approach Using the theory of planned behavior (Ajzen, 2002) as the theoretical lens and survey data from 307 salespeople in the USA, this study examines the relationship between organizational ethical climate, salesperson perceived control and salesperson job performance. This study examines whether this relationship may change with the presence of intervening variables related to a strengthened organizational ethical climate, and examines the relationship between these variables in two different analyses. First, this study examines the differences among retail salespeople as compared to B2B salespeople. Then this study examines the total dataset of salespeople as one sample. Findings The findings show that the positive effect of organizational ethical climate on the job performance of salespeople was reduced significantly when salespersons’ INT and salesperson perceived controllability, were examined in this relationship. Practical implications Organizational controls, such as an ethical climate within a firm, can impact salesperson job performance, especially if the firm’s ethical climate causes the salesteam to feel that it lessens their perceived control. This study found that if the ethical climate reduces the salespeople’s feelings of self-efficacy, that the ethical climate changes can intervene and can significantly reduce the otherwise positive effect of the organizational ethical climate on salesperson job performance. Originality/value From a theoretical perspective, the research is distinctive in its endeavor to better understand the relationship between the role of salespersons’ ethical code internalization and their feelings of self-efficacy and perceived control. This paper then examines how these variables can be influential to the direct effect of organizational ethical control and can impact the job performance of salespeople. The findings contribute to research by advancing our knowledge of how we can enhance the responses of salespeople to an organization’s ethical control, leading to higher customer satisfaction and improved sales performance.

Can R&D internationalization improve EMNES' innovation efficiency? The moderating effects of TMT human capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Zhong ◽  
Tiebo Song ◽  
Weihong Chen
Keyword(s):  
Human Capital ◽  
Production Efficiency ◽  
Emerging Market ◽  
Moderating Effects ◽  
Content Type ◽  
Research Results ◽  
Performance Framework ◽  
Experience Education ◽  
The Impact ◽  
The Relationship

PurposeThe authors aim to discuss the impact of research and development (R&D) internationalization on emerging market enterprises' (EMNEs') innovation efficiency, as well as the moderating effects of top management team (TMT) human capital.Design/methodology/approachThe authors empirically tested the hypotheses based on Chinese listed manufacturing company data from 2008 to 2017.FindingsR&D internationalization helps to increase EMNEs' innovation efficiency. Incorporating TMT human capital into this framework, the authors found that international experience, education level and technical background would all strengthen the above relationship.Originality/valueFirst, the authors contribute to the R&D internationalization literature by providing the first empirical evidence that R&D internationalization will influence EMNEs' innovation efficiency. Second, this study enriches the research results on the driving factors of enterprise innovation efficiency and expands the related research results on the relationship between R&D internationalization and production efficiency. Third, the research highlights the prominent position of TMT human capital in the relationship between R&D internationalization and EMNEs' innovation efficiency, which strengthens the contextual characteristics of the “R&D internationalization-innovation performance” framework.

The impact of corporate governance on intellectual capitals efficiency in Iran

2020 ◽  
Vol 13 (4) ◽  
pp. 749-766 ◽  
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Mahdi Salehi ◽  
Alieyh Mirzaei ◽  
Hamideh Nazaridavaji
Keyword(s):  
Corporate Governance ◽  
Human Capital ◽  
Audit Committee ◽  
Negative Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Content Type ◽  
Financial Expertise ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to evaluate the impact of corporate governance on intellectual capital (IC) in companies listed on the Tehran stock exchange. Design/methodology/approach In this paper, the board features (size, independence and CEO duality) and the characteristics of the audit committee (financial expertise, independence and size) are considered to measure the factors of corporate governance. The IC is also divided into communicative, human, structural and value-added IC. Research data are gathered using a sample of 132 companies during 2013-2016. Research hypotheses are analyzed using panel data and logistic regression models. Findings The findings indicate that while the board’s independence, financial expertise and the size of the audit committee are negatively related to the communicative capital, the relationship between audit committee independence and communicative capital is positive and significant. Further, the authors observe that there is a positive relationship between board independence and human capital, a negative and significant link between audit committee size and human capital. By the way, the results reveal that audit committee independence and audit committee size have, respectively positive and negative impact on structural capital. Originality/value The results of the current study may give more insight into the relationship between corporate governance and managerial capital in developing nations.

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