An investigation of the credibility of and confidence in audit value: evidence from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taslima Akther ◽  
Fengju Xu
Keyword(s):  
Structural Equation ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Order Type ◽  
Audit Committees ◽  
Content Type ◽  
Anglo American ◽  
The Global Financial Crisis ◽  
The Relationship

Purpose This study aims to investigate the factors that enhance the credibility of and confidence in audit value. Design/methodology/approach Data were collected from 254 institutional investors through a questionnaire survey and were analyzed using partial least squares structural equation modelling (PLS-SEM). Findings The findings reveal that the two influential predictors of enhanced credibility and confidence are perceived auditor independence and improved auditor communication. Factors related to auditor–client affiliation, such as restrictions on providing non-audit services, mandatory auditor rotation and the presence of effective audit committees, are identified as creating the perceived independence. Improved auditor communication is linked with improving the audit report and ensuring audit education, thus creating more sophisticated users who better understand the scope and purpose of an audit. Furthermore, independent audit oversight acts as a moderator in the relationship between perceived auditor independence, improved auditor communication and enhanced credibility. Enhanced credibility can lead to greater confidence in audit value. Originality/value In the wake of the global financial crisis and loss of confidence in the role of auditors, this study investigates the factors that can enhance the credibility of and confidence in audit value, especially in a non-Anglo-American setting. This study is unique in terms of methodological development, as it uses a higher-order Type II reflective–formative model using PLS-SEM.

Examining the effect of functional diversity on organizational team innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gladys Esinu Abiew ◽  
Eugene Okyere-Kwakye ◽  
Florence Yaa Akyia Ellis
Keyword(s):  
Functional Diversity ◽  
Structural Equation ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Content Type ◽  
Team Innovation ◽  
The Relationship ◽  
Moderating Role

Purpose Underpinned by the information processing theory, this study aims to investigate the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation. Design/methodology/approach A quantitative research method was used using a structured questionnaire as a tool to collect data from 251 respondents drawn from research institutions in Ghana. Data was analysed using simple regression and hierarchical multiple regression. In addition, a structural equation model was used to conduct confirmatory factor analyses to examine whether the variables in the hypothesized model for the study captured distinct constructs that the variables were designed to measure. Findings The study revealed that functional diversity was positively related to team innovation. The study also found that functionally diverse groups are more innovative when they exhibit low uncertainty avoidance, femininity and low power distance. Practical implications These findings suggest that practices such as team communication, honesty, respect and trust would foster team unity and commitment, which would enable members to share diverse expertise towards the creation and execution of new ideas and improvement of productivity in the country. Originality/value The study examined the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation.

Celebrity transgression and consumers’ forgiveness: does religiosity matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anwar Sadat Shimul ◽  
Matthew Barber ◽  
Mohammad Ishmam Abedin
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Online Survey ◽  
Intrinsic Religiosity ◽  
Content Type ◽  
Equation Modelling ◽  
Before And After ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the role of religiosity on consumers’ forgiveness when celebrities get involved in transgression. The celebrity’s reaction and its impact on consumers’ forgiveness is tested as well. In addition, consumers’ attitudes towards the brand and celebrity as well as purchase intention for the endorsed brand are examined both before and after the transgression. Design/methodology/approach Data (n = 356) were collected through a self-administered online survey and analysed though structural equation modelling in AMOS 26. Findings The results show that consumers’ attitude towards celebrity, brand and purchase intention gets weaker once the celebrity gets into transgression. Consumers tend to forgive more if the celebrity apologises (vs denies) for the wrongdoing. The hypothesised relationship between attitude towards celebrity and purchase intention did not sustain after the transgression. In addition, consumers’ intrinsic religiosity strengthens the relationship between attitude towards the celebrity and purchase intention. Practical implications The findings of this research present valuable implications for brands practitioners. Brands should formulate actionable contingency plans to mitigate the negative ramifications of celebrity transgressions. Specifically, intrinsic religiosity and celebrity apologies should assist consumers in forgiving the transgression and negate the implications that could have arisen if the celebrity instead denied the transgressions. Originality/value This research extends the previous research by examining religiosity and forgiveness within the context of celebrity transgressions. To the best of the authors’ knowledge, this is one of the first few research studies to consider the role religiosity plays in consumers’ intention to forgive celebrity transgressions.

Promoting fearlessness of change through social intelligence: mediating role of collective efficacy and moderating role of management commitment to change

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meghna Goswami
Keyword(s):  
Collective Efficacy ◽  
Structural Equation ◽  
Social Intelligence ◽  
Mediation Effect ◽  
Commitment To Change ◽  
Content Type ◽  
Management Commitment ◽  
The Relationship ◽  
Moderating Role

Purpose This study aims to investigate the influence of social intelligence and collective efficacy on the fearlessness of change. Furthermore, this study investigates the mediation effect of collective efficacy and moderating role of management commitment to change in the relationship between social intelligence and fearlessness of change. Design/methodology/approach The analysis is based on data collected from 296 members of information technology and Banking Financial Services Industry organisations using a survey questionnaire. Hypotheses have been tested using structural equation modelling. Findings The findings show that social intelligence and collective efficacy positively influence fearlessness of change. Social intelligence also impacts collective efficacy positively. Further, collective efficacy acts as a mediator and management commitment to change acts as a moderator in the relationship between social intelligence and fearlessness of change. Research limitations/implications This study highlights the relevance of social intelligence in fostering a fearless attitude towards change for easy transition from the current organisational state to a new or desired state. Practical implications Organisational leaders must strive to develop a climate of fearlessness in organisations undergoing change so that the employees acquire this attitude of fearlessness and face the hurdles that come with change with a positive mind set. Originality/value This study is amongst the few such studies that examined the relationship amongst variables of this study.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

It is not a case of “one size fits all”: the need for customized HRM practices for employee engagement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geetha Jose ◽  
Nimmi P. M. ◽  
Sebastian Rupert Mampilly
Keyword(s):  
Employee Engagement ◽  
Structural Equation ◽  
Psychological Safety ◽  
Equation Modeling ◽  
Care Providers ◽  
Content Type ◽  
Experienced Nurses ◽  
Hrm Practices ◽  
The Relationship

Purpose This study seeks to evaluate the role of HRM practices in enhancing Employee Engagement, particularly at varying levels of perceived psychological safety. Design/Methodology/Approach Data collected through a questionnaire survey of 151 nurses are analyzed with warp-PLS structural equation modeling. Findings Perceived HRM practices lead to higher engagement levels. Psychological safety moderates the relationship between HRM practices and employee engagement inversely. Originality/value An un-preceded study examining the moderating role of Psychological safety on the instrumentality of HRM practices on engagement particularly among experienced medical care providers. Results suggest to provide customized HRM practices to experienced nurses in order to enhance their engagement levels.

The relationship between food heritage and clan culture: is “familiness” the missing link in SMEs?

2020 ◽  
Vol 123 (1) ◽  
pp. 337-354
Author(s):  
Fahimeh Khatami ◽  
Alberto Ferraris ◽  
Paola De Bernardi ◽  
Valter Cantino
Keyword(s):  
Structural Equation ◽  
Small Sample Size ◽  
Methodological Approach ◽  
Strong Relationship ◽  
Small Sample ◽  
Equation Modeling ◽  
Content Type ◽  
Clan Culture ◽  
The Relationship

PurposeThis paper empirically tests the relationship between food heritage, familiness, and clan culture, thus, highlighting the pivotal role of familiness in building robustly competitive food firms based on clan culture and food heritage.Design/methodology/approachThe methodological approach adopted is based on a quantitative analysis with data from one eco-tourist city in Iran (Torqabeh). In this regard, we developed a structured questionnaire surveying 98 small- and medium-sized enterprises (SMEs) operating in the food industry. We then used partial least squares structural equation modeling (PLS-SEM) to carry out the analysis.FindingsThe results indicate the significant positive relationship between food heritage and clan culture, and highlight the role of familiness as a strong mediator, which is also associated with a strong relationship between food heritage and clan culture.Research limitations/implicationsIn the present study, the main limitation was linked to the small sample size and data collection, which took place in only a single city; however, further research could overcome this limitation by investigating SMEs from a heterogeneous geographical context.Originality/valueThe value of this research relates to studies that have examined food heritage as a possible antecedent of familiness. Moreover, the novelty of this research is to study the concept of familiness in improving resource-based views and organizational theories.

Linking corporate entrepreneurship, expatriation and reverse knowledge transfers

2019 ◽  
Vol 23 (1) ◽  
pp. 67-89 ◽  
Author(s):  
Muhammad Mustafa Raziq ◽  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Omer Farooq Malik ◽  
Abubakr Saeed
Keyword(s):  
New Zealand ◽  
Structural Equation ◽  
Multinational Enterprises ◽  
Corporate Entrepreneurship ◽  
Equation Modeling ◽  
Content Type ◽  
Knowledge Transfers ◽  
Entrepreneurial Strategy ◽  
The Relationship

Purpose Multinational enterprises (MNEs) encourage their subsidiaries to develop and transfer their unique knowledge and expertise back to the MNE as it is critical for the development of the MNE as a whole. However, what underlies the subsidiary ability to create such specialized knowledge that can be transferred to the MNE is less clear. The purpose of this paper is to examine the influence of MNE entrepreneurial strategy, subsidiary initiatives and expatriation on reverse knowledge transfers in a cross-country comparative context. Design/methodology/approach Data are gathered through surveys from 429 foreign subsidiaries operating in New Zealand and 164 subsidiaries in Brazil, and these are analyzed using variance-based structural equation modeling. Findings Subsidiary initiatives partially mediate the relationship between MNE entrepreneurial strategy and reverse knowledge transfers in case of subsidiaries operating in Brazil, but they fully mediate in case of New Zealand. Furthermore, expatriation, in case of the latter, has a negative interaction in the relationship between subsidiary initiative and reverse knowledge transfers, but, in case of the former, it has no moderating role. Overall, the results suggest that the influence of MNE entrepreneurial strategy and expatriation on reverse knowledge transfers can be explained by contingencies such as the subsidiary host economy and the heterogenous HQ–subsidiary relationships. Originality/value The paper contributes to literature by identifying some contingencies with regard to the occurrence of reverse knowledge transfers. It addresses some research calls with regard to examining reverse knowledge transfers and the role of expatriation across different empirical contexts.

scholarly journals Evolution of German corporate governance (1995-2014): an empirical analysis

2019 ◽  
Vol 19 (5) ◽  
pp. 1042-1062
Author(s):  
Andreas Rühmkorf ◽  
Felix Spindler ◽  
Navajyoti Samanta
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Governance System ◽  
Content Type ◽  
Convergence Process ◽  
Corporate Governance System ◽  
Anglo American ◽  
The Stability ◽  
The Global Financial Crisis

Purpose This paper aims to address the evolution of corporate governance in Germany with a particular regard to whether there can be observed a gradual convergence to a shareholder primacy corporate governance system. Design/methodology/approach To investigate a potential shift of the German corporate governance system to an Anglo-American tiled corporate governance system, the authors have empirically assessed on a polynomial base 52 separate company and corporate governance variables for 20 years (1995-2014). Findings This research suggests that a gradual convergence has taken place prior to the global financial crisis. However, the results suggest that the convergence process experienced a slowdown in the aftermath of the global financial crisis, which may be linked to the stability of the German corporate governance system during the global financial crisis and the political environment during this time. Originality/value This paper contributes to the research by not only analysing the development of the German corporate governance system but also identifying new reasons for this development and explaining why a new convergence process may be observed in the future again.

Corporate reputation and retail bank selection: the moderating role of brand image

2019 ◽  
Vol 48 (2) ◽  
pp. 109-127 ◽  
Author(s):  
Bedman Narteh ◽  
Mahama Braimah
Keyword(s):  
Service Provider ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Banking Sector ◽  
Brand Image ◽  
Retail Banking ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose Even though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a dearth of research. Moreover, the moderating role of brand image on this relationship has hardly been considered. The purpose of this paper is to fill these gaps in the literature. Design/methodology/approach The study employed a quantitative approach, collecting data from 540 retail bank customers using surveys. Results were analyzed using structural equation modelling in AMOS. Findings The study found out that emotional engagement, corporate performance, customer centricism and service quality directly predicted customer selection of retail banks in Ghana. The results further indicated that brand image moderates the relationship between social and ethical engagement, which was not directly significant and bank selection. Practical implications The findings of the study indicate that some of the dimensions of corporate reputation have a direct impact on bank selection by customers, and that brand image could also be used to improve social and ethical dimension of corporate reputation to ensure bank selection by retail customers. The study thus provides practical guidelines for managing corporate reputation to achieve retail bank selection in Ghana. Originality/value The paper provides support to some of the prior studies on corporate reputation in the retail banking sector. Thus, the study provides useful insights into how corporate reputation can be managed to ensure service provider selection by retail bank customers.

A study of goal frames shaping pro-environmental behaviour in university students

2017 ◽  
Vol 18 (7) ◽  
pp. 1291-1310 ◽  
Author(s):  
Arpita Chakraborty ◽  
Manvendra Pratap Singh ◽  
Mousumi Roy
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Environmental Practices ◽  
Environmental Behaviour ◽  
Content Type ◽  
Goal Framing ◽  
Education In India ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the role of university in shaping pro-environmental behaviour in students. Design/methodology/approach The paper used goal-framing theory to investigate the relationship between goals and pro-environmental behaviour by comparing the responses of entry- and exit-level students. Structural equation modeling, one-way analysis of variance and other standard statistical analysis have been used to analyse the data collected through questionnaire survey in a central university offering technical education in India. Findings Pro-environmental intention in students increases with a strong normative goal. The direct and indirect effects indicate hedonic goal and gain goal via normative goal leads to better pro-environmental behaviour. Higher values for normative goal in exit-level students substantiates the role of university. Practical implications The paper provides scope to improvise and incorporate environmental practices into the habits of the students by aligning their goals and university dimensions including curriculum, campus operations, research and outreach activities. Originality/value The results make an important contribution in establishing a sustained green culture by offering a new university paradigm.

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