Impact of buyer-supplier TMT misalignment on environmental performance

2020 ◽  
Vol 40 (11) ◽  
pp. 1695-1721
Author(s):  
Anupam Kumar ◽  
Adams Steven ◽  
John-Patrick Paraskevas

PurposeThis study investigates the relationship between buyer-supplier top management team (TMT) demographic misalignment (defined as differences in TMT composition based on background, age and gender) and environmental performance (EVP).Design/methodology/approachThe empirical setting is publicly held US manufacturing firms that are present in both the Kinder, Lydenberg and Domini’s (KLD's) annual EVP ratings and Bloomberg's supply chain database. The study employs panel data regression methods on an unbalanced panel dataset of 7,493 dyad-year observations comprising 427 unique firms.FindingsThe research shows that misalignment in functional background and gender composition between TMTs have a negative outcome on both the buyer's and the suppliers' EVP. However, increasing presence of females across TMTs has a positive influence on EVP. Further, the research shows that misalignment based on age between the TMTs does not impact EVP in any significant way. On the contrary, increasing age across TMTs is a significant predictor of EVP.Originality/valueThis study builds on existing works in TMT heterogeneity and adds context to the heightening belief in the positive linkage between heterogeneity and performance through extension to a boundary spanning interfirm context.

2018 ◽  
Vol 17 (2) ◽  
pp. 238-258 ◽  
Author(s):  
Godfred Adjappong Afrifa ◽  
Oluseyi Oluseun Adesina

Purpose The purpose of this paper is to empirically explain the relationship between the remuneration levels of a sample of listed small and medium enterprise (SME) directors and firm performance. The paper also investigates whether deviations from the optimal directors’ remuneration level reduces firm performance. Design/methodology/approach The study uses a panel data regression analysis of 802 AIM-listed SMEs over an eight-year period (2005-2012). Findings Using a non-linear approach, the results show that an optimum director’s remuneration level is calculated by comparing the benefits and costs of director’s remuneration. Hence, the paper not only shows how directors’ remuneration level affects firm performance but it also extends the stream of knowledge by indicating how a deviation from the optimal point influences UK-listed SME performances. Moreover, the results show that the effect of directors’ remuneration on firm performance is greater during a financial crisis period. Originality/value Compared with previous literature on directors’ remuneration, this paper focuses on AIM-listed SMEs, and the author’s finding of a concave relationship between directors’ remuneration level and performance of leads them to recommend that firms, especially SMEs, should endeavour to determine the optimal level of directors’ remuneration to maximise performance.


2020 ◽  
Vol 33 (2) ◽  
pp. 415-431
Author(s):  
Patricia S. Sánchez-Medina

PurposeBusinesses in Mexico, particularly small and mid-sized companies, are faced with numerous challenges: a lack of competition, difficulty in positioning and maintaining oneself in the market, irrational use of natural resources, and poverty in the environment in which they develop. In spite of these problems, many are able to succeed; however, there is limited knowledge about how these businesses could implement organizational changes that would positively impact their results.Design/methodology/approachUsing dynamic capabilities theory and survey data obtained from pottery businesses in several artisan communities in Mexico through the application of face-to-face interviews, this paper analyzes the relationship between organizational capability for change (OCC) and economic and environmental performance.FindingsThis research proves that OCC positively and significantly impacts economic and environmental performance. Results contribute to the existing literature on OCC in the context of poverty.Originality/valueThis study offers empirical research that illustrates the relationship between OCC and the environmental and economic performance of pottery businesses. Additionally it contributes to a field of knowledge in progress; that is, OCC in contexts of subsistence where poverty is a constant issue. Artisans living in this context can also develop business capabilities that contribute to the permanence of their business in the market.


2014 ◽  
Vol 21 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Michael Abebe

Purpose – This study aims to contribute to the literature by addressing two research questions: is there a relationship between e-commerce adoption and performance of SMEs? And, more importantly, does the degree of entrepreneurial orientation moderate the relationship between e-commerce adoption and SME performance? Design/methodology/approach – Data were collected from a sample of 55 manufacturing and service SMEs located in the state of Texas, USA, between 2008 and 2009 using a structured questionnaire. Customized questionnaires were mailed out to the owner-managers of 55 SMEs. A moderated regression analysis was conducted to test the two hypotheses. Findings – The results suggest that e-commerce adoption has a significant, positive influence on SMEs' average sales growth rate and that adopters of e-commerce technology have significantly higher average sales growth rate than non-adopters. The results also indicate that e-commerce adoption positively affects SMEs' annual sales growth rate even more when the sample firms have higher level of entrepreneurial orientation. Overall, the results of this analysis indicate the importance of e-commerce adoption as well as SMEs' entrepreneurial orientation on the performance of SMEs. Research limitations/implications – The findings of this study can be useful for SMEs in general as a means of understanding how e-commerce adoption positively affects the firm's performance. Such a relationship suggests that e-commerce adoption is an important factor that can enhance firm's internal processes and ultimately performance. Therefore, e-commerce adopters should continue to utilize this technology while non-adopters should consider harnessing the potential of this technology to further streamline their operations and effectiveness. Originality/value – This study contributes to the literature by providing empirical evidence on the role of e-commerce adoption and entrepreneurial orientation in small firm performance.


2009 ◽  
Vol 7 (2) ◽  
pp. 330-342 ◽  
Author(s):  
Musibau Adetunji Babatunde ◽  
Olawoye Olaniran

There is a renewed interest on the need to strengthen mechanisms to ensure that managers and directors take measures to protect the interest of a firm’s stakeholders. This study made use of panel data regression analysis between 2002 and 2006 for a sample of 62 firms listed on the Nigerian Stock Exchange to examine the relationship between internal and external governance mechanisms and corporate firms’ performance. The results have the implication that regulatory agencies should encourage firms to achieve a reasonable board size since overly large boards may be detrimental to the firm. Our results also show no significant evidence to support the idea that outside directors help promote firm performance. In addition, the study found that the measure of performance matter for analysis of corporate governance studies. We found in some cases different results from the use of Returns on Assets (ROA) and Tobin’s Q as measures of firm performance.


Author(s):  
Rofiul Wahyudi ◽  
Annisa Fithria ◽  
Sartini Wardiwiyono

The capital structure is important for financial institutions including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. The main objective of this paper is to investigate the relationship capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio), but negatively affects ETA (equity to total Asset ratio). These findings indicate that there is an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity, and consider the negative relationship between liquidity creation and bank performance when making decisions.


2016 ◽  
Vol 6 (2) ◽  
pp. 143-168 ◽  
Author(s):  
Wuwei Li

Purpose – For the studies whose purposes are to evaluate the relationship between industrial characteristics and innovation activities of the enterprises, there are some limitations in the measures of industrial characteristics and using traditional statistical techniques. The purpose of this paper is to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries using grey system theory. The research results show that grey system theory is suitable to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries. Design/methodology/approach – This paper proposes the measures of industrial characteristics and innovation capabilities of high-tech enterprises. First, based on the data on Chinese large and medium-sized high-tech enterprises for the period of 2011-2013, this paper applies grey relational analysis to identify the relatively most important indexes on affecting innovation capabilities of Chinese high-tech enterprises. Second, based on the results from grey relational analysis, this study draws a ranking of the five Chinese high-tech industries in terms of innovation capabilities by grey decision making. Finally, based on the results from grey decision making, this study applies GM (0, N) model to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries. Findings – The results of this study show that in the evaluation indexes system of innovation capabilities of high-tech enterprises, personnel in R & D institutions, R & D personnel, internal expenditure on R & D, expenditure on new product development, expenditure on technology imports, expenditure on technology renovation, and expenditure on technology assimilation and absorption are relatively most important elements affecting innovation capabilities of Chinese high-tech enterprises. In addition, the two top ranking on innovation capabilities are manufacture of electronic equipment and communication equipment, and manufacture of medicines. At last, the findings indicate that in the measures of industrial characteristics, the three top ranking on affecting innovation capabilities of Chinese high-tech enterprises are R & D intensity, technology absorption intensity of indigenous high-tech enterprises and foreign-invested enterprises size. The opening level is in the middle position. Technology intensity, market concentration, and state-owned enterprises size are the three bottom ranking on affecting innovation capabilities of Chinese high-tech enterprises. Research limitations/implications – This study has some limitations. First, this study is limited to Chinese high-tech industries. The findings may not be applicable to other countries’ high-tech industries. Further studies with other countries’ high-tech industries could be extended and examined how industrial characteristics affect innovation capabilities of the firms in these industries. Second, the measures of industrial characteristics proposed in this study are somewhat theoretically weak. In the future, the authors will further improve the current analysis, and develop the measures of industrial characteristics. Finally, with the advent of the more data with the consistent statistical coverage released by China’s National Bureau of Statistics during the more continuous years, other methods, such as panel data regression model in econometrics could be used to evaluate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries. By then, the scholars can compare the results from grey system theory and those from panel data regression model in econometrics. Practical implications – Appropriate industrial environment is favorable for Chinese high-tech enterprises to feed their innovation capabilities. Scientific evaluation on the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries is of great significance for Chinese high-tech enterprises in exerting technological catch-up and promoting their competitive advantage. The purposed measures of industrial characteristics and innovation capabilities of high-tech enterprises in this paper, and combined methodology based on grey system theory could be applied to evaluate the relationship between industrial characteristics and innovation capabilities of Chinese high-tech enterprises. Originality/value – This paper proposes the measures of industrial characteristics and innovation capabilities of high-tech enterprises, and uses grey system theory to evaluate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries.


2016 ◽  
Vol 36 (10) ◽  
pp. 1333-1358 ◽  
Author(s):  
Stephanie Graham ◽  
Rodney McAdam

Purpose As pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance. Design/methodology/approach It uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships. Findings Support was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results. Originality/value This study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.


2020 ◽  
Vol 4 (1) ◽  
pp. 10
Author(s):  
Silmi Haslinda ◽  
Nurul Hikmah Amalia ◽  
Farah Margaretha Leon

Penelitian ini dilakukan untuk menguji literatur pada penelitian sebelumnya tentang hubungan antara hutang dan kinerja perusahaan. Sampel yang digunakan dalam penelitian ini adalah perusahaan manufaktur yang sudah Go Public di Indonesia selama tahun 2016 – 2018. Terdapat 183 perusahaan manufaktur, namun dalam penelitian ini menggunakan 121 perusahaan manufaktur setelah dilakukan purposive sampling. Kinerja perusahaan sebagai variabel dependen diwakili oleh tingkat profitabilitas yang dapat mengukur kemampuan perusahaan dalam menghasilkan laba dari aktiva yang digunakan (dalam hal ini menggunakan nilai ROA dan ROE).Variabel independen dalam penelitian ini diwakili oleh hutang jangka pendek (STD), hutang jangka panjang (LTD), total hutang (TD). Variabel kontrol dalam penelitian ini adalah ukuran perusahaan atau SIZE, GROWTH, GDP dan INFLASI.Dalam penelitian ini menggunakan metode regresi data panel dan uji individu (uji-t). Hasil penelitian ini menunjukkan bahwa pengukuran kinerja berdasarkan nilai ROA, STD, Size, dan inflasi berpengaruh negatif sedangkan TD, growth dan nilai pertumbuhan GDP suatu negara berpengaruh positif. Implikasi dari penelitian ini adalah sebagaireferensi tambahan bagi manajer keuangan dalam hal usaha meningkatkan profitabilitas dan kinerja perusahaan. This study was conducted to examine the literature in previous studies about the relationship between debt and company kinerjance. The sample used in this study is manufacturing companies that are public in Indonesia during 2016 - 2018. There are 183 manufacturing companies, but in this study used 121 manufacturing companies after purposive sampling. Firm’s performance as the dependent variable is represented by the level of profitability that can measure the company's ability to generate profits from the assets used (in this case using the value of ROA and ROE). The independent variable in this study is represented by short-term debt (STD), long-term debt (LTD), total debt (TD). The kontrol variables in this study are company size or SIZE, GROWTH, GDP and INFLATION. In this study using panel data regression methods and individual tests (t-test). The results of this study indicate that kinerjance measurement based on ROA, STD, Size, and inflasification values are negative while TD, growth and GDP growth values in a country affect positively. The implications of this research are as an additional reference for financial managers to increase profitability and firm’s performance.


2016 ◽  
Vol 23 (1) ◽  
pp. 44-63 ◽  
Author(s):  
Godfred Adjapong Afrifa ◽  
Kesseven Padachi

Purpose – The purpose of this paper is to report the results of an investigation of the relationship between working capital level, measured by the cash conversion cycle (CCC) and profitability of small and medium enterprises (SMEs). Design/methodology/approach – The paper employs panel data regression analysis on a sample of 160 Alternative Investment Market (AIM)-listed SMEs for the period from 2005 to 2010. Findings – The empirical results show that there is a concave relationship between working capital level and firm profitability and that there is an optimal working capital level at which firms’ profitability is maximised. Furthermore, an examination as to whether or not deviations from the optimal working capital level reduce firm profitability indicate that deviations above or below the optimum decrease profitability. Research limitations/implications – The sample is limited to AIM-listed SMEs, and therefore the findings cannot be generalised to all firms. Practical implications – Overall, the evidence suggests that firms should strive and attain the optimal working capital level in order to maximise their profitability. Originality/value – The results are of importance to both SMEs and policy makers providing insight into the nature of CCC and its relationship to SMEs profitability.


2017 ◽  
Vol 28 (3) ◽  
pp. 346-367 ◽  
Author(s):  
Jing Zhang ◽  
Qiaozhuan Liang ◽  
Yue Zhang ◽  
Yuanmei (Elly) Qu

Purpose This study aims to focus on three types of team faultlines (separation-based faultlines, variety-based faultlines and disparity-based faultlines) and discuss the different ways through which their configurational properties (faultline strength and faultline distance) affect team performance. Design/methodology/approach The authors adopted panel data regression analysis to test the model. Panel data of Chinese provincial party-government top cadres teams that covers 30 provincial areas from 2007 to 2012 were collected for data analyses. Findings The results revealed that separation-based faultline strength was negatively related to team performance, variety-based faultline strength had a U-shape relationship with team performance and disparity-based faultline strength had an inversed U-shape relationship with team performance. In addition, separation-based and disparity-based faultline distances served as moderators enhancing the curvilinear relationship between faultline strength and team performance. Notably, variety-based faultline distance failed to exaggerate the U-shape relationship between variety-based faultline strength and team performance; however, the relationship changed based on different levels of variety-based faultline distance. Originality/value This study discussed team configurations based on three types of faultlines by comparing differences between team configurations reflected by diversity and faultline strength. Settled in Chinese political context, this study empirically tested the interaction effects between faultline strength and distance on team performance.


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