Risk management and firm performance: the moderating role of supplier integration

2018 ◽  
Vol 118 (7) ◽  
pp. 1327-1344 ◽  
Author(s):  
Yongyi Shou ◽  
Wenjin Hu ◽  
Mingu Kang ◽  
Ying Li ◽  
Young Won Park
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Operational Efficiency ◽  
Operational Performance ◽  
Content Type ◽  
Supplier Integration ◽  
Performance Effects ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of this paper is to scrutinize the performance effects of supply chain risk management (SCRM). Besides financial performance, two aspects of operational performance are examined: operational efficiency and flexibility. Moreover, the authors explore the moderating role of supplier integration in the relationship between SCRM and operational performance.Design/methodology/approachA survey-based methodology was adopted. Based on the data from an international survey, this study applied the structural equation modeling and latent moderated structural equations approach to test the hypotheses.FindingsThe results indicate that SCRM positively influences both operational efficiency and flexibility, and has an indirect effect on financial performance. In addition, supplier integration enhances the impact of SCRM on operational flexibility, but does not moderate the relationship between SCRM and operational efficiency.Originality/valueThis study extends the existing literature by providing a comprehensive analysis of the performance effects of SCRM. It also provides managerial insights on both risk management and supplier integration.

Capital structure, competitive intensity and firm performance: an analysis of Indian pharmaceutical companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neeti Mathur ◽  
Satish Chandra Tiwari ◽  
T. Sita Ramaiah ◽  
Himanshu Mathur
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Market Competition ◽  
Competitive Intensity ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThis research paper aims to explore the relationship of financial performance and capital structure of Indian pharma firms of BSE 500, the impact of research and development (R&D) expenditure on financial performance and also explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance.Design/methodology/approachThe balanced panel data of listed pharma firms of BSE 500 are used for the research study, and the present study adopts both the panel and ordinary least square (OLS) estimation techniques to draw the results.FindingsThe results exhibit that the high debt ratio is harmful for the accounting performance of the selected sample of pharma firms of BSE 500. Besides, market competition negatively moderates the relationship between capital structure and firm performance.Research limitations/implicationsThe research findings provide evidence for the policymakers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace.Originality/valueThe core contribution of the current research is to examine impact of R&D expenditure on financial performance and the moderating role of market competition on the relationship of capital structure and firm performance to the best of the authors' knowledge, and no single study has previously explored this relationship in the context of BSE 500 pharma firms.

Examining the moderating role of HIHRP in the relationship between external integration and productivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jorge Tarifa Fernández ◽  
José Cespedes-Lorente ◽  
Jerónimo de Burgos Jiménez
Keyword(s):  
Supply Chain ◽  
Human Resource ◽  
Hierarchical Regression ◽  
Food Sector ◽  
Content Type ◽  
Supplier Integration ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

Purpose Based on the human resource (HR) and supply chain integration (SCI) literature, this paper aims to argue that high-involvement human resource practices (HIHRP) work as a complementary capability for SCI, and thus, HIHRP moderates the relationship between SCI and firm productivity. This moderating role is analyzed through the following HIHRP dimensions, namely, ability-enhancing, motivation-enhancing and opportunity-enhancing practices framework. Design/methodology/approach Using empirical data collected from a survey of the agri-food sector (horticultural firms of southern Spain), the moderating effects of HIHRP on the relationship between supply chain external integrations (with customers and suppliers) and productivity are examined. Hierarchical regression analysis is used to test the proposed hypotheses. Findings The results support that HIHRP has a moderating effect on the SCI/productivity relationship. However, these results are only significant in the case of supplier integration. Originality/value This study analyzes HIHRP as a complementary asset in the context of SCI and makes both theoretical and managerial contributions to the SCI literature by empirically analyzing the role of HR practices in enhancing the relationship between SCI and performance.

The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chairani Chairani ◽  
Sylvia Veronica Siregar
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Thomson Reuters ◽  
Enterprise Risk ◽  
Moderating Role

Purpose This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance. Design/methodology/approach The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters. Findings The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries. Originality/value Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.

Revisiting the financial performance – corporate social performance link

2018 ◽  
Vol 30 (7) ◽  
pp. 2586-2602 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The existing literature has focused heavily on investigating the effect of corporate social performance (CSP) on financial performance (FP) but has not paid sufficient attention to an inverse causation of the relationship. Moreover, while some of the literature argues that FP positively affects CSP, based on the slack resources theory, others have found negative effects of FP on CSP, supporting the managerial opportunism perspective. Thus, this paper aims to address the impact of FP on CSP. Further, this study examines the moderating role of franchising to better understand the relationship. Design/methodology/approach This study uses and expands the models derived from the CSP literature to confirm the effects of FP on CSP with the moderating role of franchising within the restaurant industry. Using two-way fixed effects models, it effectively addresses important problems embedded in the panel data. Findings The findings show a positive effect of FP on CSP, which is inconsistent with Park and Lee’s (2009) findings and supports the slack resources theory. Further, the interesting results show that the impact of FP on CSP diminishes as a firm franchises more, supporting the double-sided moral hazard framework of the agency theory. Originality/value This paper fills the lacuna in both the existing literature on the relationship between CSP and FP and the franchising. This study contributes to enhancing restaurant practitioners’ understanding of the double-sided moral hazard of agency theory unique to franchising context.

CSR and appropriation potential of firm innovative knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaohong Mei ◽  
Yang Ge ◽  
Jiashun Huang ◽  
Yu Chen
Keyword(s):  
Financial Performance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Alternate Mechanism ◽  
Work Shifts ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

PurposeThe purpose of this paper is to study the moderating role of corporate social responsibility (CSR) in the knowledge asset–firm financial performance relationship.Design/methodology/approachThis paper first develops hypotheses based on multiple theoretical lenses and uses a sample of 3,030 US firms in 51 industries over 11 years to test these hypotheses.FindingsIt is found that CSR positively moderates the relationship between research and development (R&D) investments and the firm's financial performance, and the moderating effect declines when firms mistreat their employees.Practical implicationsThis paper provides evidence that when firms allocate their resources, they should consider the synthetic effect among different activities such as R&D and CSR.Originality/valueFirst, this study offers a new and alternate mechanism for the appropriability literature and also extends the boundary of CSR research. Second, this work shifts the CSR performance thought by considering CSR as an enabler rather than a driver for performance.

COVID-19 operational disruption and SMEs' performance: the moderating role of disruption orientation and government support

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Ahmad Mahmoud ◽  
Ahmed Mahmoud ◽  
Shamsu Lawan Abubakar ◽  
Abubakar Salisu Garba ◽  
Bashir Ahmad Daneji
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Government Support ◽  
Equation Modeling ◽  
Content Type ◽  
Health Related ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

PurposeDespite the growing unforeseen and catastrophic events that disrupt business operations, empirical studies on the impact of operational disruption (OD) on small and medium enterprises' (SMEs) performance dimensions are limited. The study aims to investigate the moderating effect of disruption orientation (DO) and government support (GS) on the relationship between coronavirus disease (COVID-19) OD and SMEs' performance.Design/methodology/approachQuantitative survey method was used to collect data from 170 SMEs in Nigeria, through hand-delivery questionnaires. Partial least square (PLS) structural equation modeling (SEM) was employed to analyze the data.FindingsThe result shows no significant relationship between COVID-19 OD, DO and GS with SMEs' financial performance (FP). However, the relationship between COVID-19 OD and non-financial performance (NFP) is negatively significant. The relationship between DO and NFP is positively significant. DO and GS have insignificant relationship with FP. Finally, DO and GS does not moderate any of the relationships between COVID-19 OD and the dimensions of SMEs' performance.Practical implicationsThe result implies that health-related disruptions such as COVID-19 affect only the NFP of SMEs. However, supply chain managers and SMEs are encouraged to adopt DO to enhance NFP of firms.Originality/valueThe current study is the first to evaluate the impact of health-related disruptions on the two major dimensions of SMEs' performance (FP and NFP) by incorporating the moderating role of internal (DO) and external (GS) factors in to a single framework. However, the paper revealed new theoretical and practical knowledge by illuminating the absence of significant relationship between COVID-19 OD and SMEs' FP, implying that COVID-19 disruption does not significantly affect SMEs' FP.

scholarly journals Performance and (non) mandatory disclosure: the moderating role of the Directive 2014/95/EU

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sebastiano Cupertino ◽  
Gianluca Vitale ◽  
Pasquale Ruggiero
Keyword(s):  
Financial Performance ◽  
Moderating Effects ◽  
Content Type ◽  
Moderation Effect ◽  
Trade Offs ◽  
Performance Dimensions ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

PurposeThis paper investigates whether and how Directive 2014/95/EU affects financial performance as well as its moderation effect on the relationship between financial and non-financial performance, involving different stakeholders' perspectives.Design/methodology/approachWe adopted the panel data approach to perform random effects regression analysis on a sample of 435 European listed non-financial companies, considering a timeframe of six years. Furthermore, the moderation effect of the Directive 2014/95/EU on the relationship between financial and non-financial performance has been tested.FindingsNFD regulation negatively affects firms' operating profitability and shareholder value while produces no effects on debtholders' returns. Nevertheless, the Directive 2014/95/EU has general positive moderating effects on the relationship between non-financial and financial performance, mitigating the direct costs induced by pursuing non-financial performance.Research limitations/implicationsShifting from mimetic to coercive isomorphism caused a strengthening of the complementarity between financial and non-financial performance dimensions, extending the concept of performance itself. The analysis carried out is limited to a short-term timeframe and on non-financial companies subject to the Directive 2014/95/EU.Practical implicationsThe paper highlights trade-offs between the costs induced by non-financial activities and the benefits of being compliant with the non-financial disclosure (NFD) regulation, supporting managers in allocating business resources.Originality/valueThis paper is among the first that investigates the impact of mandatory NFD on the relationship between non-financial and financial performance. It is also one of the earliest in finding some pieces of evidence on the direct impact of Directive 2014/95/EU on EU companies' financial performance.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou
Keyword(s):  
Cloud Computing ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Supply Chain Integration ◽  
Content Type ◽  
Supply Chain Financing ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

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