The role of national culture in the relationship between microfinance outreach and sustainability: a correlated random effects approach

2020 ◽  
Vol 27 (3) ◽  
pp. 447-472 ◽  
Author(s):  
Mohammad Zainuddin ◽  
Masnun Mahi ◽  
Shabiha Akter ◽  
Ida Md. Yasin
Keyword(s):  
National Culture ◽  
Random Effects ◽  
Information Exchange ◽  
Fixed Effects ◽  
Microfinance Institutions ◽  
Trade Off ◽  
Content Type ◽  
Correlated Random Effects ◽  
The Relationship

PurposeThis study investigates the role of national culture between outreach and sustainability of microfinance institutions (MFIs). Despite microfinance's deep embeddedness in cultural contexts, research on the influence of national culture on MFI performance is rather sparse. This paper seeks to fill this gap and, based on cross-country microfinance data, attempts to explain the outreach-sustainability relationship in reference to cultural factors.Design/methodology/approachAn unbalanced panel, consisting of 5,741 MFI-year observations of 1,232 MFIs from 43 countries in six regions, is drawn from the Microfinance Information Exchange (MIX) Market database. Two different econometric models are tested. Model 1 estimates the direct effect of outreach on sustainability, using a fixed-effects estimator. Model 2 examines the moderation effect of national culture on outreach-sustainability relationship, employing correlated random effects approach.FindingsThe results show that depth of outreach and financial sustainability of MFIs are negatively related, and the relationship is moderated by national culture. Power distance and uncertainty avoidance positively moderate the outreach-sustainability relationship, whereas individualism and masculinity negatively moderate the relationship.Originality/valueThe findings suggest that the national culture where MFIs are located plays an important contingent role in their performance and that the magnitude of the trade-off effect varies from culture to culture. The research thus provides further insight in the trade-off debate and contributes to literatures of both microfinance and cross-cultural management.

The relationship between intellectual capital and financial statements readability: the role of management characteristics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Hassan Mohammadzadeh Moghadam ◽  
Zohreh Hajiha
Keyword(s):  
Regression Model ◽  
Intellectual Capital ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Financial Statements ◽  
Multiple Regression Model ◽  
Content Type ◽  
The Relationship

Purpose The present study aims to investigate the relationship between intellectual capital and the readability of financial statements with the mediating role of management characteristics of companies listed on the Tehran Stock Exchange. In other words, this research tries to find the answer to whether intellectual capital can positively affect the readability of financial statements. Design/methodology/approach A multivariate regression model was used to test the hypotheses for this purpose. The research hypotheses were tested using a sample of 1,309 observations listed on the Tehran Stock Exchange from 2012 to 2018 and a multiple regression model based on panel data and fixed-effects models. Findings The results indicate that intellectual capital has a positive and significant relationship with the readability of financial statements, which means that with increasing intellectual capital in companies, financial statements’ readability also increases. Based on the hypothesis test results, it has been determined that narcissism, accrual and real earnings management have a negative effect on the relationship between intellectual capital and the readability of financial statements. Originality/value Since the present study examines such an issue in emerging markets, it provides users, analysts and legal entities with useful information about management’s inherent and acquired characteristics that significantly impact the purchase of audit opinion. This study’s results also contribute to developing science and knowledge in this field and close the literature gap.

Impact of export market orientation on export performance

2014 ◽  
Vol 9 (4) ◽  
pp. 403-425 ◽  
Author(s):  
Ku-Ho Lin ◽  
Kuo-Feng Huang ◽  
Yao-Ping Peng
Keyword(s):  
Market Orientation ◽  
Information Exchange ◽  
Export Performance ◽  
Export Market ◽  
Organizational Relationships ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Degree Of Internationalization

Purpose – The purpose of this paper is to explore the mediating role of export market orientation (EMO) in the relationship between inter-organizational relationships and export performance, and the moderating role of degree of internationalization in the relationship between EMO and export performance. Design/methodology/approach – The authors sent questionnaires to the 1,000 largest manufacturers listed in CommonWealth magazine (2009), and a random sample of 500 machinery manufacturers listed in the Taiwan Association of Machinery Industry Directory. The authors received 244 completed questionnaires through which to examine the hypotheses. Findings – The findings show that trust and social interaction positively influence EMO, which then enhances export performance. However, the moderating effect of degree of internationalization has no significant impact on the EMO and export performance relationship. Research limitations/implications – Future studies should conduct two-way research on focal firms (manufacturers) and overseas partners (agents or distributors) through common variables including trust, commitment, satisfaction, etc. The results indicate that the content validity of the present study is somewhat inadequate, possibly due to the cultural differences involved. Practical implications – Overseas information exchange between exporters and partners fosters firms’ export performance. Thus, closer relationships with channel partners or customers via trust and social interactions may help firms to conduct appropriate EMO activities to access overseas market information and improve export performance. Originality/value – By investigating Taiwanese exporters, who tend to emphasize relational capital, the authors determine that EMO is important in understanding how inter-organizational relationships influence export performance. The authors also contribute a more comprehensive view to the literature.

Stimulating employee creativity by providing developmental feedback

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Cong Thuan
Keyword(s):  
Information Exchange ◽  
Current Paper ◽  
Hierarchical Regression ◽  
Employee Creativity ◽  
Content Type ◽  
Innovative Climate ◽  
Developmental Feedback ◽  
Time Lagged ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of task-efficacy and information exchange in linking the relationship between developmental feedback and employee creativity. In addition, this current paper tests the moderating role of innovative climate in reinforcing the effects of task-efficacy and information exchange on employee creativity. Design/methodology/approach This current research used a time-lagged questionnaire survey to reduce the potential problem of common method variance. The sample size of this study was 305 employees from information technology companies in southern Vietnam. This research undertook a hierarchical regression analysis to test the hypotheses. Findings The results found that task-efficacy and information exchange fully meditated the relationship between developmental feedback and employee creativity. Furthermore, innovative climate positively moderated the effects of task-efficacy and information exchange on employees’ creative performance. Originality/value This current paper is one of the first studies to examine task-efficacy as a motivational mechanism and information exchange as a cognitive mechanism for understanding the relationship between developmental feedback and employee creativity. This paper is also one of the first attempts to investigate whether innovative climate reinforces the effects of task-efficacy and information exchange on employee creativity.

Role of psychological empowerment in the relationship between structural empowerment and innovative behavior

2019 ◽  
Vol 42 (4) ◽  
pp. 521-538 ◽  
Author(s):  
Manjari Singh ◽  
Anita Sarkar
Keyword(s):  
Information Exchange ◽  
Structural Equation ◽  
Psychological Empowerment ◽  
Critical Role ◽  
Equation Modeling ◽  
Innovative Behavior ◽  
Structural Empowerment ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to empirically test the relationship between the empowering structure and the employees’ innovative behavior and the role of psychological empowerment in mediating this link. Design/methodology/approach Structural equation modeling was used to analyze data from 401 female primary school teachers in India. Prior to the main study, the scales were tested on a sample of 288 teachers. While psychological empowerment and structural empowerment were based on the self-reporting by the teachers, the innovative behavior of the teacher was assessed by two to three colleagues for each teacher. Findings The results confirmed that structural empowerment leads to innovative behavior and psychological empowerment and partially mediates the relationship between structural empowerment and innovative behavior. Practical implications Promising ideas die down because of lack of proper resource support and a free flow of information exchange despite employees’ willingness to carry out innovative tasks. Psychological empowerment affects creative intention in the workplace and can play a critical role for employees at their workplace. Social implications In the context of development at the teacher and school levels, it is imperative to address both the psyche of the individual and the existing structure in schools. Originality/value This study makes two critical contributions. One, it emphasizes the importance of structural empowerment in ensuring innovative behavior of employees. Two, it also brings forward the importance of psychological empowerment in the relationship between structural empowerment and innovative behavior.

Role of resource slack in rapid international expansion of restaurant companies

2019 ◽  
Vol 31 (1) ◽  
pp. 2-20
Author(s):  
Yue Vaughan ◽  
Yoon Koh
Keyword(s):  
Firm Value ◽  
Fixed Effects ◽  
Firm Growth ◽  
Negative Impact ◽  
Hierarchical Regression ◽  
International Expansion ◽  
Slack Resources ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this study is to investigate the relationship between rapid internationalization and firm value in US restaurant companies. This study also identified the moderating role of available slack, potential slack and recoverable slack on the relationship of rapid internationalization and the firm’s value.Design/methodology/approachA hierarchical regression analysis with panel fixed effects was used in this study. Samples were drawn from publicly traded US restaurant companies, and span from 1993 to 2016 with 264 firm-year observations was used for the study’s analysis.FindingsDrawing on Penrose’s seminal theory of firm-growth that a firm needs excess resources to grow and that the amount of slack resources directly influences a firm’s international growth, this study found that available slack alleviates the negative impact of rapid international expansion in achieving higher firm value.Originality/valueThis study is one of the few analyses that examined thespeedof rapid international expansion in the service context. In addition, this study contributes to existing literature by examining three different slack resources with regards to the speed of international expansion. The findings of this study shed light on restaurant companies whose financial resources are critical for value-adding international expansion.

Context and person-oriented leader in teams: a meta-analytical review

2020 ◽  
Vol 26 (1/2) ◽  
pp. 91-121
Author(s):  
Meltem Ceri-Booms
Keyword(s):  
Random Effects ◽  
Team Performance ◽  
Random Effects Model ◽  
Team Size ◽  
Content Type ◽  
Moderating Variables ◽  
Common Method Bias ◽  
Method Bias ◽  
The Relationship

Purpose The research studies the role of contextual moderating variables on the relationship between person-oriented leadership behaviors (POLBs) and team performance. The authors claim that the varying effect sizes between POLBs and team performance are large because of the context the team is functioning in. Therefore, based on the framework of Johns (2006), this paper aims to investigate the moderating role of the relevant demographic (leader gender), social (in-group collectivism and team size), task (skill differentiation) and methodological (common method bias and the rater of the team performance) contextual variables in the study. Design/methodology/approach The authors accumulated evidence from 48 independent primary studies (N team = 4,276) to run the meta-analytic analyses. The authors followed the procedures described by Schmidt and Hunter (2015). For the categorical moderators, the analyzes were aided by the Hunter–Schmidt meta-analysis programs (2.0) (Schmidt and Le, 2014), which is an interactive software using a random-effects model. In the analyzes for the continuous moderators, the authors used Lipsey and Wilson’s (2001) statistical package for the social sciences macros and run meta-regressions using a random-effects model with unrestricted maximum likelihood. Findings The results indicate that the relationship weakens when female leaders exhibit these behaviors and when the team size increases. On the other hand, in-group collectivism strengthens the relationship. The study also found that the common method bias and the assessment method of the team performance are significant moderators altering the relationship. Practical implications The study highlights the perceptual differences and biases based on leader gender. Acknowledging these biases may help practitioners to appreciate the female qualities in leadership and decrease the undervaluation of female effectiveness. To create high-performing teams, leaders in high in-group collectivist countries are expected to develop a family feeling in the team by showing their concern for personal issues and build close interpersonal relationships. Researchers should use multiple sources to assess the predictor and criterion variables and also opt for more objective assessment methods for team performance. Originality/value With this study, the authors follow a substantively different perspective compared to the past meta-analytic reviews on this relationship. Rather than testing the inquiry whether there is a relationship between the two variables, the authors specifically focus on the role of contextual moderating variables. Several researchers have acknowledged that contextual considerations are critical in leadership-team performance research. Nevertheless, the body of research remains to be not cohesive. Thus, the study answers a call in the leadership area for a more context-based and cohesive understanding of the effects of leadership on team performance.

CEO duality, earnings quality and board independence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Alves
Keyword(s):  
Agency Theory ◽  
Fixed Effects ◽  
Earnings Quality ◽  
Chief Executive ◽  
Board Independence ◽  
Ceo Duality ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This study draws on agency, theory to evaluate the relationship between chief executive officer (CEO) duality and earnings quality, proxied by discretionary accruals. Additionally, this study aims to examine whether board independence moderates the relationship between CEO duality and earnings quality. Design/methodology/approach This study uses a fixed-effects regression model to examine the effect of CEO duality on earnings quality and to test whether board independence moderates that relationship for a sample of non-financial listed Portuguese firms-year from 2002 to 2016. Findings Consistent with agency theory, this study suggests that CEO duality decreases earnings quality. Further, the results also suggest that the earnings quality reduction associated with CEO duality is attenuated when the board of directors has a higher proportion of independent directors. Practical implications The findings based on this study provide useful information to investors and regulators in evaluating the impact of CEO duality on earnings quality and the effect of board independence on the role of CEO duality, especially under concentrated ownership. Originality/value To the knowledge, this study is the first to investigate the role of board independence on the association between CEO duality and earnings quality. In addition, this paper is the first empirical study to investigate the direct and indirect effect of CEO duality on earnings quality in Portugal.

scholarly journals Political connections, corporate governance, and tax aggressiveness in Malaysia

2017 ◽  
Vol 25 (3) ◽  
pp. 424-451 ◽  
Author(s):  
Effiezal Aswadi Abdul Wahab ◽  
Akmalia M. Ariff ◽  
Marziana Madah Marzuki ◽  
Zuraidah Mohd Sanusi
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Least Square ◽  
Political Connections ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between political connections and corporate tax aggressiveness in Malaysia. In addition, this paper investigates the relationship between corporate governance variables and corporate tax aggressiveness. Next, the study investigates the mitigating role of corporate governance in the relationship between political connections and corporate tax aggressiveness. Design/methodology/approach The sample of this study is based on 2,538 firm-year observations during the 2000-2009 periods. This study employs a panel least square regression with both period and industry fixed effects. The study retrieved the corporate governance variables from the downloaded annual reports, whilst the remaining data were collected from Compustat Global. Findings This study finds that politically connected firms are more tax aggressive than non-connected firms. Furthermore, the study finds that large board size decreases the likelihood of tax aggressiveness and a non-linear relationship exists between institutional ownership and tax aggressiveness suggesting increase in monitoring as the ownership increases. However, the study finds no evidence to suggest that corporate governance mitigates the influence of political connections in promoting tax aggressiveness behavior. The findings suggest that the impact of political connections could outweigh the benefits of changes in corporate governance in Malaysia. Research limitations/implications The data are not recent, but it reflects a rather longitudinal research period. Originality/value This paper extends the literature of tax research in Malaysia which is in its’ infancy stage. Furthermore, it investigates the role of political connections in tax-planning research.

scholarly journals Manufacturer-supplier relationships and service performance in service triads

2017 ◽  
Vol 37 (7) ◽  
pp. 950-969 ◽  
Author(s):  
Antonios Karatzas ◽  
Mark Johnson ◽  
Marko Bastl
Keyword(s):  
Information Exchange ◽  
Service Performance ◽  
Research Approach ◽  
Service Network ◽  
Supplier Relationships ◽  
Content Type ◽  
Causal Ordering ◽  
The Relationship ◽  
Supplier Relationship

Purpose The purpose of this paper is to explore the role of the manufacturer-supplier relationship in service performance within service triads. Design/methodology/approach An abductive case-research approach was adopted, using three embedded cases and 26 interviews in complex, multilevel manufacturer-supplier relationships within the same service network. Cannon and Perreault’s (1999) multidimensional relationship framework was deployed to achieve granular and nuanced insight. Findings This study corroborates the idea that relational relationships within service triads and servitization improve performance. The role of each relationship dimension in service performance is discerned and their interplay is captured in an analytic model. Information exchange, supplier relationship-specific adaptations, and the degree of formalization of the relationship directly influence performance, while cooperative norms and operational linkages are further back in the causal ordering. The study also highlights the importance of contingent factors (the size of the service site, the proportion of its revenues coming from service contract activities) and how they affect the relationship dimensions. Research limitations/implications The work was conducted in one network and the findings were generalized to theory rather than additional empirical settings. Originality/value This study is the first to derive a contextualized causal ordering of the Cannon and Perreault (1999) framework of relationship connectors and link it with service performance.

Deal proneness and national culture: evidence from the USA, Thailand and Kenya

2018 ◽  
Vol 35 (6) ◽  
pp. 981-1008 ◽  
Author(s):  
Dheeraj Sharma ◽  
Satyendra Singh
Keyword(s):  
Consumer Behavior ◽  
National Culture ◽  
Power Distance ◽  
Cultural Influences ◽  
Uncertainty Avoidance ◽  
Store Image ◽  
Content Type ◽  
Using Data ◽  
The Relationship

PurposeCulture is one of the critical variables in explaining consumer behavior and consumer response to external stimuli. The purpose of this paper is to delineate the relationship between deal proneness and culture. Specifically, this paper examines the relationship between Hofstede’s cultural dimensions, namely, power distance, individualism/collectivism, masculinity/femininity and uncertainty avoidance, and deal proneness. Additionally, the role of store image as a moderator between culture and deal proneness is explored. Finally, the paper offers prescriptive and descriptive insights for marketers to consider cultural perspectives when promoting products internationally. A clear understanding of cultural influences on deal proneness will allow marketers to target specific customer segments more accurately.Design/methodology/approachThe authors collected data from consumers in shopping malls in USA, Thailand, and Kenya. The authors analyzed the data using structural equation modeling.FindingsThe authors found that societies with a high femininity index are more likely to respond to deals than masculine societies. An inverse relationship between the Power Distance Index (PDI) and deal proneness may exist, suggesting that societies with a high PDI may be less deal prone. The authors found that individualism index is positively related to deal proneness, and thus societies with a low individualism index should be more deal prone. Finally, individuals in high uncertainty avoidance countries are expected to exhibit low deal prone tendencies.Research limitations/implicationsThe study utilized a sample from cities. Consequently, future studies may attempt to validate the relationship posited in this study by utilizing non-urban data. Additionally, the authors look at stores in a mall. Thus, there is a possibility of interaction between mall image and store image. It may be useful to validate the findings of this study by using data from stand alone stores and also examine the interaction effect of mall image and store image on the deal proneness in a given culture.Practical implicationsThis study suggests that appropriate store selection for offering deals can possibly augment the effectiveness of deal-based promotions. Specifically, choice of store can alter the context, and thus the perception of the value proposition could increase, which in turn is likely to increase the acceptance of deal-based promotion.Originality/valueAlthough several researchers have also examined differences in consumer behavior across cultures yet it appears that there is no direct study that examines the effects of cultural differences on deal proneness using data from three countries (USA, Thailand, and Kenya) which are diverse on all dimensions of national culture. This paper examines the influence of national culture on individual’s propensity to exhibit deal proneness. Furthermore, the paper examines the role of store image on the relationship between national culture and deal proneness.

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