Crossing the threshold from founder management to professional management in Russian firms

2015 ◽  
Vol 21 (1) ◽  
pp. 76-106 ◽  
Author(s):  
Galina Shirokova ◽  
Gina Vega ◽  
Dmitri Knatko
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Negative Impact ◽  
Institutional Factors ◽  
Ceo Succession ◽  
Institutional Perspective ◽  
Data Set ◽  
Content Type ◽  
Professional Management ◽  
Organisational Factors

Purpose – The purpose of this paper is to bring together a strategic choice perspective and an institutional perspective in order to address the key research questions: how do Russian founder-CEOs perceive the institutional environment when succession issues are taken into consideration?; how do the perceived characteristics of different formal and informal institutions affect the founder-CEO’s decision to delegate authority to a professional CEO?; and what are the main barriers to founder-CEO succession in threshold firms in emerging markets such as Russia? Design/methodology/approach – Using a data set of 500 entrepreneurial companies from fast growing industries in Russia, the paper defines and studies threshold firms and analyses how various perceived characteristics of the institutional environment in emerging markets influence the likelihood of transition from founder management to professional management. Findings – Institutional factors such as poor security of property rights and dependence of the business on relationships with government officials have a negative impact on the likelihood of founder-CEO succession in threshold firms in emerging markets. At the same time, the perception of contract law as insecure increases the likelihood of transition from founder management to professional management. Originality/value – Most research on initial succession deals with internal organisational factors and does not consider external environments and their influence on founder-CEO departure and willingness to exit from company management. This study is unique in its focus on the external environment and institutional factors and their impact on management transitions in threshold firms in emerging economies.

Intensity of product market competition, institutional environment and accrual quality

2020 ◽  
Vol 32 (3) ◽  
pp. 391-419
Author(s):  
Khairul Anuar Kamarudin ◽  
Akmalia Mohamad Ariff ◽  
Wan Adibah Wan Ismail
Keyword(s):  
Institutional Environment ◽  
Negative Impact ◽  
Market Competition ◽  
Product Market ◽  
Least Square ◽  
Product Market Competition ◽  
Data Set ◽  
Accrual Quality ◽  
Content Type ◽  
The Impact

Purpose This paper aims to investigate the joint effect of product market competition (PMC) and institutional environment on accrual quality. Design/methodology/approach The sample covers a large data set of 52,138 firm-year observations from 35 countries over the period of 2011-2015. Using the weighted least square regression, the study estimates PMC and institutional environment on accrual quality. The study measures PMC based on Herfindahl-Hirschman index, anti-director rights index (ADRI) based on the revised and updated La Porta et al.'s (1998) and accrual quality using the modified Dechow and Dichev (2002) model proposed by McNichols (2002). The study also uses a series of specification tests using alternative measures for each variable. Findings The study finds that highly intensified PMC relates to a lower quality of accruals. The results also show that accrual quality is better in countries with stronger institutional environment, specifically countries with higher ADRI, investor protection, judicial independence, protection of minority shareholders’ interests, protection of property rights, strength of the auditing and reporting standards, efficacy of corporate boards and corporate ethics. The findings suggest that institutional factors weaken the negative impact of PMC intensity on accrual quality, hence suggesting that institutional environment has a significant role to enhance accrual quality among firms in highly intensified industries. Practical implications The findings provide additional insights to policymakers and regulators on the importance of strong institutional and industry environment that can provide incentives and extra governance mechanisms besides the conventional firm-level corporate governance. Originality/value This study contributes in understanding the impact of intensity of PMC on accrual quality internationally and subsequently highlights the role of institutional environment as significant country-level governance in determining financial reporting quality, particularly accrual quality.

Institutional effect on born global firms in China: the role of Sun Tzu’s The Art of War strategies

2016 ◽  
Vol 10 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Man Zhang ◽  
Qian Gao ◽  
Jane V. Wheeler ◽  
Jungsook Kwon
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Critical Role ◽  
Born Global ◽  
Internationalization Process ◽  
Content Type ◽  
International Performance ◽  
The Relationship ◽  
Born Global Firms

Purpose – This paper aims to investigate the role of Sun Tzu’s significant strategies on the relationship between the institutional environment and international performance of Chinese born global firms, a type of small- and medium-sized enterprise (SME) characterized by the company’s limited resources and its early efforts to internationalize. Design/methodology/approach – The methodology is based on a multi-case analysis of interviews conducted with four chosen born global firms, coupled with public database and Web site searches. Through the use of qualitative methods, propositions were developed. Findings – This paper provides insights regarding how the institutional environment, both formal and informal, has a strong positive relationship with born global firm’s international performance. Moreover, Sun Tzu’s significant strategies play a critical role in the internationalization process of born global firms in emerging markets. Originality/value – Although existing studies discuss the application of Eastern philosophical strategies adopted by firms in emerging markets, to the best of our knowledge, this is one of the earliest studies which evaluates the moderation effect of Sun Tzu’s significant strategies on the relationship between institutional environment and business performance. The paper contributes to scholarly discourse on the influencing factors of born global firm’s internationalization process. It also has practical relevance to international entrepreneurs and SMEs from emerging markets.

Sustainability practices during COVID-19: an institutional perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olena Klymenko ◽  
Lise Lillebrygfjeld Halse
Keyword(s):  
Data Collection ◽  
Institutional Theory ◽  
Supply Chains ◽  
Institutional Environment ◽  
Secondary Data ◽  
Institutional Perspective ◽  
Additional Time ◽  
Content Type ◽  
New Business ◽  
The One

PurposeThe purpose of this paper is to investigate how sustainable practices in supply chains are affected by the COVID-19 pandemic through the lens of institutional theory.Design/methodology/approachThis research applies a twofold data collection approach: 1) qualitative semistructured interviews and 2) secondary data collection that includes sustainability reports, newspaper articles, journal articles, strategic plans, research reports and statements made by authorities and stakeholders concerning decision-making. In total, managers representing six companies in Norway were interviewed.FindingsThe study suggests that during the COVID-19 pandemic, companies tend to focus on short-term decisions and economic issues. The long-term focus on sustainability has, however, increased at the cluster level. The research also indicates that the pandemic has led to the development of new business routines that may transform institutional norms. The diversity of institutional contexts can, on the one hand, drive sustainability transitions through pressures and supportive programs but, on the other hand, also hinder the development of sustainability thinking.Research limitations/implicationsInstitutional factors must be included when analyzing the effects of crises and sustainable transitions. Researchers are encouraged to explore the COVID-19 implications in the form of longitudinal studies.Practical implicationsPolicymakers can benefit from in-depth knowledge on the adverse effects of an institutional environment on sustainability. For managers, the outbreak of the pandemic can afford them additional time to revise their strategies and seek innovation. The pandemic highlights the need to build more resilient and sustainable systems that will aid managers in responding rapidly during future uncertainties and enduring sustainability trajectories in operations.Originality/valueThe paper offers an in-depth investigation of COVID-19 effects on the sustainability of supply chains by drawing on institutional theory.

The effect of fiscal transparency on government spending efficiency

2019 ◽  
Vol 46 (7) ◽  
pp. 1365-1379 ◽  
Author(s):  
Elina De Simone ◽  
Mariangela Bonasia ◽  
Giuseppe Lucio Gaeta ◽  
Lorenzo Cicatiello
Keyword(s):  
Government Spending ◽  
Financial Management ◽  
Institutional Environment ◽  
Public Spending ◽  
Time Interval ◽  
Data Set ◽  
Content Type ◽  
Fiscal Transparency ◽  
Positive Effects ◽  
Positive Effect

Purpose Making citizens able to monitor and evaluate public spending activities is a fundamental issue in public financial management literature. The purpose of this paper is to analyze whether fiscal transparency, measured by the Open Budget Index, has an effect on public spending performance, measured by the World Economic Forum’s Global Competitiveness Report data. Design/methodology/approach Research methods rely on random-effects panel regression models on a country-level panel data set of 82 world countries observed in the 2008–2015 time interval. Findings Results show that the potential positive effects of fiscal transparency are mediated by the level of democracy of the country. In detail, in democratic countries, a higher degree of disclosure of fiscal information is correlated with a higher efficiency of government spending while, in non-democratic countries, fiscal transparency does not seem to provide any effect. Social implications The results suggest that fiscal transparency can be a powerful device where politicians can be held accountable for their actions, while it could fail to provide positive results where a strong and effective vertical accountability is missing. Originality/value The novelty of the paper is twofold. First, it provides new additional evidence about the positive effect that fiscal transparency has on public spending efficiency by advancing previous research on this topic (Porumbescu, 2017; Montes et al., 2019). Second, the paper investigates conceptually and empirically how the positive effect on public spending efficiency determined by fiscal transparency depends on the degree of democracy present in the institutional environment in which fiscal information disclosure is implemented.

scholarly journals Political connections: a threat to auditor independence?

2015 ◽  
Vol 5 (2) ◽  
pp. 222-246 ◽  
Author(s):  
Effiezal Aswadi Abdul Wahab ◽  
Mazlina Mat Zain ◽  
Rashidah Abdul Rahman
Keyword(s):  
Design Methodology ◽  
Institutional Environment ◽  
Audit Fees ◽  
Auditor Independence ◽  
Political Connections ◽  
Panel Regression ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach – This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings – Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value – This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds.

Reduction of tension effects on partner evaluation

2018 ◽  
Vol 36 (4) ◽  
pp. 425-439
Author(s):  
Ossi Pesämaa ◽  
Peter Dahlin ◽  
Christina Öberg
Keyword(s):  
Structural Equation ◽  
Negative Impact ◽  
Equation Modeling ◽  
Negative Effects ◽  
Data Set ◽  
Content Type ◽  
Business Partners ◽  
Positive Side ◽  
Tension Management ◽  
Business To Business

Purpose The purpose of this paper is to examine how tension management as a means of achieving compromise and overcoming minor conflicts reduces the effects of the opportunism and bargaining costs of relationships on the evaluation of business partners. The paper proposes and tests a theoretical model with a full-information approach using structural equation modeling. Design/methodology/approach The data set was based on 312 observations from a unique survey based on a business-to-business relationship sample in Sweden. The measurements reflect the effects of partner opportunism, bargaining costs, and tension management on partner evaluations. Findings The findings corroborate that partner opportunism and bargaining costs have a negative impact on partner evaluation. In addition, the model shows that tension management weakens the negative effects of opportunism and bargaining costs on the evaluation. Originality/value This study offers evidence on how negative effects are reduced through intervening constructs. With most studies focusing on the positive side of relationships, this paper makes an important contribution to the literature through not only describing negative effects, but also how these can be decreased.

“When I get older, I wanna be an entrepreneur”: the impact of disability and dyslexia on entrepreneurial self-efficacy perception

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin Powers ◽  
Séverine Le Loarne-Lemaire ◽  
Adnane Maalaoui ◽  
Sascha Kraus
Keyword(s):  
Self Efficacy ◽  
Negative Impact ◽  
Research Question ◽  
Entrepreneurial Intention ◽  
Economic Life ◽  
Entrepreneurial Intentions ◽  
Data Set ◽  
Content Type ◽  
The Usa ◽  
The Impact

PurposeThis article contributes to the literature on entrepreneurship for people with disabilities through a better understanding of the impact of entrepreneurial self-efficacy perceptions on entrepreneurial intentions in populations with lower levels of self-esteem. It investigates the entrepreneurial intention and self-efficacy of a population of students suffering from dyslexia, which is a learning disability.Design/methodology/approachThe paper is based on the study of a data set of 796 male and female adolescents in the USA, aged 13–19 years, both with and without dyslexia. The sample is a convenient one. The whole sample replied to the questionnaire on their self-efficacy perception and their intention to create, one day, their own venture. They also self-declare their dyslexia. Regressions have been conducted to answer the research question.FindingsResults show that having dyslexia has a negative impact on entrepreneurial self-efficacy perceptions. They also reveal that self-efficacy perceptions mediate the relationship between dyslexia and entrepreneurial intentions and their three antecedents (social norms, control behavior and perceived ability).Research limitations/implicationsThe sample is composed of students from private schools and might socially be biased.Practical implicationsOur findings relaunch the debate on the necessity to develop education programs that consider the personal-level variables of students, specifically the development of entrepreneurial self-efficacy among adolescents with disabilitiesSocial implicationsSuch findings should help to better understand students who are suffering from dyslexia and help them find a place in society and economic life.Originality/valueThis is so far the first study that has been conducted on dyslexic adolescents.

scholarly journals An empirical study of green supplier collaboration in the Chinese manufacturing sector: the double-edged sword effect of guanxi

2019 ◽  
Vol 25 (3) ◽  
pp. 359-373
Author(s):  
Ruoqi Geng ◽  
Afshin Mansouri ◽  
Emel Aktas ◽  
Dorothy A. Yen
Keyword(s):  
Institutional Environment ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Interpersonal Relationship ◽  
Manufacturing Companies ◽  
Institutional Variables ◽  
Content Type ◽  
Environmental Consequences ◽  
Institutional Forces ◽  
Supplier Collaboration

Purpose Drawing on institutional complexity, this study aims to explore the interaction effect of formal and informal institutional forces on the adoption of green supplier collaboration (GSC) practices by Chinese manufacturing firms. Design/methodology/approach The paper hypothesises that the effect of the formal institutional forces on GSC in China is influenced by an informal institutional variable, guanxi, which is the interpersonal relationship between employees of the supplier and the manufacturer. To test the conceptual framework, hierarchical moderated regression analyses are conducted using multi-respondent data from 408 randomly sampled manufacturing companies in China. Findings Guanxi has a double-edged sword effect on the adoption of GSC practices. Specifically, guanxi reduces the negative impact of the perceived costs and the complexity of regulations on the adoption of GSC practices, but it also weakens the positive effect of suppliers’ advice and community pressures on the adoption of GSC practices. Research limitations/implications Results contribute to supply chain management literature by offering novel theoretical and empirical insights on the Chinese institutional environment governed by both formal and informal institutional variables. Practical implications Considering guanxi’s double-edged sword effect on the adoption of GSC, manufacturing companies are advised to carefully leverage their guanxi to maintain an institutional and contingent view of the environmental consequences in China. Originality/value This study empirically examines the effect of formal and informal institutional environments on the adoption of GSC practices in emerging economies.

scholarly journals Financial indicators, informational environment of emerging markets and stock returns

2019 ◽  
Vol 54 (3) ◽  
pp. 253-268
Author(s):  
Renata Turola Takamatsu ◽  
Luiz Paulo Lopes Fávero
Keyword(s):  
Emerging Markets ◽  
Stock Returns ◽  
Institutional Environment ◽  
Accounting Information ◽  
International Standards ◽  
Content Type ◽  
Quality Reporting ◽  
Financial Variables ◽  
Informational Environment ◽  
The Relationship

Purpose The purpose of this paper is to evaluate the influence of the informational environment on the relevance of accounting information in companies traded in stock exchanges of emerging markets. Design/methodology/approach For this purpose, the authors calculated indicators based on figures derived from the financial statements and variables that sought to capture the influence of the economic and institutional environment. The sample consisted of publicly traded companies from 20 countries classified as emerging by Standard & Poors. Macroeconomic information was obtained through the International Country Risk Guide database. The analysis period ranged from 2004 to 2013, excluding missing data, variables considered as outliers, besides the exclusion of data from companies that presented negative equity. Findings It was observed that the financial variables presented signs consistent with the literature, except for the price-to-book variable and the asset change variable. The inclusion of variables related to the accounting informational environment offered evidence that the more opaque the accounting environment in the country, the lesser the ability of the profits to portray the variations of stock returns. The variable that captured the adoption of international standards was consistent with expectations, i.e. the adoption of international standards would increase the quality of accounting information, showing a positive signal. Moreover, the variable aggressiveness of the earnings was statistically significant and negative, consistent with the literature. Research limitations/implications The variables earnings smoothing and aversion to losses did not show the expected behaviour though, highlighting the possible limitations of these proxies used to capture the opacity of the earnings. Originality/value When institutional moderators were included, it was observed that the adoption of the IFRS standards positively affected the relationship, which is more relevant when the accounting figures were under its aegis. Recently, countless nations’ transition to international accounting standards has been justified by the need to use high-quality reporting standards. The research sought to contribute to strengthen this dimension, presenting evidence that the dummy variable included to capture the adoption of international standards had a positive effect on the relationship.

Industry and country effects on innovation effort

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariano Nieto ◽  
Daniel Alonso-Martínez ◽  
Nuria González-Álvarez
Keyword(s):  
Generalized Method Of Moments ◽  
Geographical Area ◽  
Institutional Factors ◽  
Firm Resources ◽  
Firm Innovation ◽  
Data Set ◽  
Content Type ◽  
Innovation Activities ◽  
Country Factors ◽  
Country Characteristics

PurposeThe purpose of the paper is to study the determinants of firms' innovation effort using the main approaches in strategic management. The authors specifically analyze the joint effects of industry structure and country characteristics on innovation effort while controlling for firm resources.Design/methodology/approachThe hypotheses proposed are tested using a data set that includes firms registered in the EU Industrial R&D Investment (IRI) Scoreboard (European Commission, 2011). Specifically, the authors designed and applied a Generalized Method of Moments (GMM) method to perform an empirical analysis using a panel of 1,211 innovative firms in 55 industries and 26 countries between 2004 and 2012.FindingsCountry factors have significant effects on innovation effort. Results also indicate that the moderating and complementary effects of industry and country factors depend on the geographical area.Practical implicationsAlthough managers have generally tended to take into account only the firm perspective in innovation activities, this paper highlights that institutional factors are also relevant and play a key role in innovation effort. The authors provide suggestions for managers on how to ensure that their investment in innovation is efficient. They also suggest that the effect of some institutional factors may be modified by competitive pressure on firms' innovation effort.Originality/valueThe paper makes an incremental contribution to the literature on the determinants of innovation by providing a different approach to firm innovation determinants and taking into account the complementarities between institutional and industrial factors.

Sign in / Sign up

Export Citation Format

Share Document