scholarly journals Corporate boards' and firms' R&D responses to performance feedback

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michal Jirásek
Keyword(s):  
Decision Making ◽  
Performance Feedback ◽  
Fixed Effects ◽  
Strategic Decision ◽  
Corporate Boards ◽  
Corporate Board ◽  
Search Activity ◽  
Content Type ◽  
Moderation Effect ◽  
Age Diversity

PurposeA firm will respond to performance feedback, i.e. a comparison of its current performance with the goals to which it aspires, by means of changes in its search activity. There is an emerging body of literature that studies how such behavioral responses are shaped by important decision-makers inside firms. The study focuses on the corporate board – one of the most influential decision-making groups in terms of strategy. More specifically, the study aims to study the moderation effect of the size, turnover and age diversity of the board.Design/methodology/approachThe sample is based on the largest listed German automobile and manufacturing firms followed between the years 2001 and 2015. The sample is analyzed using fixed-effects panel data models.FindingsThe findings indicate that the age diversity of the corporate board and, partially, also the turnover of its members moderate firms' responsiveness to performance feedback. On the other hand, the size of the board does not seem to play a role. The study, therefore, supports the notion of taking into account the characteristics of the corporate board when analyzing strategic decision-making and points to areas for further research.Originality/valueThe study contributes to the literature by empirically testing the moderating effect of three characteristics of corporate boards that have not been largely tested in the literature to date.

scholarly journals Women on corporate boards and allocation of capital raised through IPOs

2019 ◽  
Vol 57 (3) ◽  
pp. 547-568 ◽  
Author(s):  
Bazeet Olayemi Badru ◽  
Nurwati A. Ahmad-Zaluki ◽  
Wan Nordin Wan-Hussin
Keyword(s):  
Decision Making ◽  
Governance Structure ◽  
Capital Allocation ◽  
Strategic Decision ◽  
Corporate Boards ◽  
Content Type ◽  
Investment Opportunities ◽  
Women On Corporate Boards ◽  
The Impact ◽  
A Company

Purpose The purpose of this paper is to examine whether the differences in men and women, such as risk aversion in decision making, can influence the amount of capital that the board of directors can allocate for investment opportunities. Design/methodology/approach This study sampled 212 IPOs over the period of 2005–2015 and employed the OLS and the quantile regression techniques to examine the impact of female directors on capital allocation. Findings The results show that women on corporate boards have a positive influence on the amount of capital an IPO company can allocate for investment opportunities. These findings suggest that the investment strategies of women in an emerging financial market, like Malaysia, may differ from women in other financial markets. Practical implications The presence of women on corporate boards plays an important role in board involvement in a company’s strategic decision at the time of the IPO. Therefore, regulators and IPO issuers should pay close attention to the corporate governance structure of a company at the time of an IPO. In addition, investors and other stakeholders of a company may consider women on corporate boards as an important factor in financing and investment decisions. Originality/value Despite several studies that have examined the influence of women on corporate boards on corporate outcomes, globally, the presence of women on corporate boards and their influence on corporate decision-making related to allocation of capital to investment opportunities, have not been fully explored in the IPO literature.

Curvilinearity in the performance feedback and R&D relationship

2019 ◽  
Vol 13 (1) ◽  
pp. 1-14
Author(s):  
Michal Jirásek
Keyword(s):  
Performance Feedback ◽  
Fixed Effects ◽  
Design Methodology ◽  
Theory Of The Firm ◽  
Panel Data Models ◽  
Search Activity ◽  
Industrial Firms ◽  
Content Type ◽  
Aspiration Levels ◽  
Measure Of Performance

Purpose The question of how the firm responds to performance feedback forms the backbone of the behavioral theory of the firm. Although the literature works with goals aspirations and additional determinants of a firm’s search activity – proximity to bankruptcy and slack resources – the majority of the empirical research assumes the firm’s response to performance feedback to be linear with a spline at the aspiration level. The purpose of this paper is to study possible curvilinear properties of performance feedback itself that may yield insight on the behavior of firms responding differently from the theory’s predictions. Design/methodology/approach The research uses data from exchange-listed German industrial firms followed from 2001 to 2015. It evaluates hypotheses using historical aspiration models with ROA as a measure of performance and with a spline specification. The fixed-effects panel data models serve as an estimation technique. Findings The research supports an inverted U-shape relationship between performance feedback and research and development (R&D) intensity for firms below their aspiration levels, and a U-shape relationship for firms above their aspiration levels. Originality/value The research is one of the first to directly study curvilinearity in performance feedback relationships. Arguably, there is no such a study directly focusing on a firm’s search as represented by R&D, despite the fact, that R&D forms the backbone of performance feedback research. Also, the population of German industrial firms is new in the literature.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

Legitimacy profiles of women directors on top French company boards

2015 ◽  
Vol 34 (7) ◽  
pp. 803-820 ◽  
Author(s):  
Val Singh ◽  
Sebastien Point ◽  
Yves Moulin ◽  
Andrès Davila
Keyword(s):  
Management Development ◽  
Annual Reports ◽  
Academic Excellence ◽  
Gender Quotas ◽  
Corporate Boards ◽  
Women Directors ◽  
Corporate Board ◽  
Content Type ◽  
Female Directors ◽  
Short Space

Purpose – The purpose of this paper is to question the profiles of female directors on top French company boards. It explores the legitimacy attributes of current female directors to identify the profiles sought recently, as firms approach the need to make many new appointments to fulfill gender quotas for supervisory boards, given that the proportion of women on a corporate board must reach 40 percent by 2017, with an intermediate level of 20 percent by 2014. Design/methodology/approach – The authors gathered numerical and qualitative biographical data on all SBF 120 (French stock exchange index) firms’ female directors from annual reports and web sites over seven years (from 2003 to 2009). The authors constructed an SPSS database to categorize the individuals into various orders of legitimacy. Findings – Drawing on director bio-data, the authors extend previous work on four legitimacy assets (family ownership; academic excellence; strong ties to the State; and top career), by adding a fifth asset (representative director), and contribute a gender dimension to the literature on personal legitimacy. Owning-family ties and academic excellence are still particularly salient in explaining legitimacy of women directors. A new source of female directors since 2005 is the pool of foreign women, outside the elite Grandes Ecoles system. Research limitations/implications – The authors had data for directors of 115 companies out of the SBF 120 firms. The authors also lacked data for seven women out of 144 appointed during the period, despite efforts to track down data from public sources. Practical implications – These legitimacy profiles present different challenges for management development as those responsible for appointing several women to their boards in a short space of time will find out. Social implications – The authors highlight that with the diminishing role of family members on large corporate boards, more women directors need to be found, developed and mentored. If this approach is followed, new female directors with solid achievements can be appointed, without having their legitimacy as directors challenged by resistant males. Women will thus be able to take their legitimate place in French boardrooms and contribute their diverse experiences and knowledge. Originality/value – This paper questions the legitimacy assets of female directors, which can be clustered into three groups: combined elite education and top corporate career; owning-family membership; and representative directors. These legitimacy profiles present different challenges for management development as those responsible for appointing several women to their boards in a short space of time will find out.

Selection of lean manufacturing systems using the PROMETHEE

2008 ◽  
Vol 3 (1) ◽  
pp. 40-70 ◽  
Author(s):  
G. Anand ◽  
Rambabu Kodali
Keyword(s):  
Decision Making ◽  
Lean Manufacturing ◽  
Manufacturing Systems ◽  
Strategic Decision ◽  
Computer Integrated Manufacturing ◽  
Preference Ranking ◽  
Manufacturing Strategy ◽  
Manufacturing Companies ◽  
Content Type

PurposeIn recent years, many manufacturing companies are attempting to implement lean manufacturing systems (LMS) as an effective manufacturing strategy to survive in a highly competitive market. Such a process of selecting a suitable manufacturing system is highly complex and strategic in nature. The paper aims to how companies make a strategic decision of selecting LMS as part of their manufacturing strategy, and on what basis such strategic decisions are made by the managers.Design/methodology/approachA case study of a small‐ and medium‐sized enterprise is presented, in which the managers are contemplating on implementing either computer integrated manufacturing systems (CIMS) or LMS. To supplement the decision‐making process, a multi‐criteria decision making (MCDM) model, namely, the preference ranking organisation method for enrichment evaluations (PROMETHEE) is used to analyse how it will impact the stakeholders of the organisation, and the benefits gained.FindingsAn extensive analysis of PROMETHEE model revealed that LMS was the best for the given circumstances of the case.Research limitations/implicationsThe same problem can be extended by incorporating the constraints (such as financial, technical, social) of the organisation by utilising an extended version of PROMETHEE called the PROMETHEE V. Since, a single case study approach has been utilised, the findings cannot be generalized for any other industry.Practical limitations/implicationsThe methodology of PROMETHEE and its algorithm has been demonstrated in a detailed way and it is believed that it will be useful for managers to apply such MCDM tools to supplement their decision‐making efforts.Originality/valueAccording to the authors’ knowledge there is no paper in the literature, which discusses the application of PROMETHEE in making a strategic decision of implementing LMS as a part of an organisation's manufacturing strategy.

scholarly journals Construction of capital procurement decision making model to optimize supplier selection using Fuzzy Delphi and AHP-DEMATEL

2018 ◽  
Vol 25 (5) ◽  
pp. 1528-1547 ◽  
Author(s):  
Anil Kumar ◽  
Amit Pal ◽  
Ashwani Vohra ◽  
Sachin Gupta ◽  
Suryakant Manchanda ◽  
...  
Keyword(s):  
Decision Making ◽  
Automobile Industry ◽  
Supplier Selection ◽  
Selection Process ◽  
Strategic Decision ◽  
Extensive Literature ◽  
Content Type ◽  
Fuzzy Delphi ◽  
Selection For ◽  
Decision Making Model

Purpose Supplier selection for capital procurement is a major strategic decision for any automobile company. The decision determines the success of the company and must be taken systematically with the utmost transparency. The purpose of this paper is to construct capital procurement decision-making model to optimize supplier selection in the Indian automobile industry. Design/methodology/approach To achieve the stated objective, a combined approach of fuzzy theory and AHP-DEMATEL is applied. Evaluation parameters are identified through an extensive literature review and criteria validation has been introduced through a Fuzzy Delphi method by using fuzzy linguistic scales to handle the vagueness of information. AHP is employed to find the priority weight of criteria, although an inter-relationship map among criteria is not possible through AHP alone since it considers all criteria as independent. To overcome this, DEMATEL is used to establish cause-effect relationships among criteria. Findings The results show that the total cost of ownership (TOC) is the first weighted criterion in supplier selection for capital procurement, followed by manufacturing flexibility and maintainability, then conformity with requirement. The cause-effect model shows that supplier profile, TOC, service support and conformity with requirement are in the cause group and are considered to be the most critical factors in selecting the supplier. Originality/value The study’s outcome can help the automobile industry to optimize their selection process in selecting their suppliers for capital procurement; the proposed model can provide guidelines and direction in this regard.

To downsize or not to downsize: when and how does corporate downsizing create long-term value?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mishari Alnahedh ◽  
Abdullatif Alrashdan
Keyword(s):  
Positive Relationship ◽  
Business Environment ◽  
Strategic Decision ◽  
Value Appropriation ◽  
Empirical Examination ◽  
Content Type ◽  
Growth And Survival ◽  
Moderation Effect ◽  
Corporate Downsizing

Purpose How does corporate downsizing contribute to a firm’s long-term value? While the extant empirical findings on this relationship are inconclusive, contradictory and equivocal, the answers to this question remain particularly important in today’s business environment. Considering that downsizing is often directed toward long-term growth and survival, this paper aims to posit that scholars should account for the temporal nature of this strategic decision to understand its economic impact on the firm’s operations. Therefore, this paper provides a more rigorous empirical examination of how a firm’s decision to downsize its workforce affects that firm’s long-term value. Design/methodology/approach This paper used Wibbens and Siggelkow’s (2020) measure of long-term investor value appropriation (LIVA) to directly observe the effects of corporate downsizing on firm long-term value and growth. Using a sample of 3,149 US publicly traded manufacturing firms that operated between 2002 to 2018, this paper tested the main effect of downsizing on LIVA and 3 boundary condition hypotheses. Findings This paper found a positive relationship between corporate downsizing and a firm’s long-term value. Interestingly, this positive relationship is stronger among firms that had high human resource slack and R&D intensity. Contrary to the expectations, this paper did not find support for the moderation effect of the proximity to bankruptcy on the relationship between corporate downsizing and a firm’s long-term value. Originality/value With these findings, the paper sheds light on the long-term implications of a firm’s decision to downsize its workforce.

Towards a BIM-based approach for improving maintenance performance in IBS building projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zul-Atfi Bin Ismail
Keyword(s):  
Decision Making ◽  
Good Practice ◽  
Maintenance Management ◽  
Strategic Decision ◽  
Building Information Modelling ◽  
Content Type ◽  
Information Modelling ◽  
Building Information ◽  
Conventional Methods

PurposeThe contemporary practice of conventional maintenance for industrialised building system (IBS) constructions suffers from poor service delivery and defect repetition. A key problem impeding the widespread adoption of emerging technologies is the lack of competent contractors to support the effectiveness of the technology implemented in conventional methods and to ensure returns on investment. The shortcomings of conventional methods are assessed from the perspective of IBS buildings. This paper aims to identify the different system approach using Building Information Modelling (BIM) technology that is equipped with decision making processes.Design/methodology/approachThis paper describes the establishment of key problem areas, the elements involved in implementing good practice and the requirements for integrating maintenance management processes and information databases in the maintenance management system.FindingsConventional methods have little emphasis on defect diagnosis tools. They also enhance inadequate strategic decision-making in the analysis of information when attempting to improve the maintenance project outcomes for IBS construction. The characteristics identified in a case study of IBS buildings are presented and analysed.Originality/valueThe conclusions and recommendations drawn from the analysis of the IBS case study are discussed, synthesised and deliberated upon. The approach presented in this paper integrates various aspects of building information modelling technology to facilitate improved execution of IBS maintenance activities.

Implementing asset data management in power companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizaveta Gavrikova ◽  
Irina Volkova ◽  
Yegor Burda
Keyword(s):  
Decision Making ◽  
Data Management ◽  
Electric Power ◽  
Organizational Context ◽  
Corporate Strategy ◽  
Strategic Decision ◽  
Content Type ◽  
Operational Level ◽  
Asset Data

PurposeThe purpose of this paper is to design a framework for asset data management in power companies. The authors consider asset data management from a strategic perspective, linking operational-level data with corporate strategy and taking into account the organizational context and stakeholder expectations.Design/methodology/approachThe authors conducted a multiple case study based on a literature review and three series of in-depth interviews with experts from three Russian electric power companies.FindingsThe main challenge in asset data management for electric power companies is the increasing amount and complexity of asset data, which is frequently incomplete or inaccurately collected, hard to translate to managerial language, focused primarily on the operational level. Such fragmented approach negatively affects strategic decision-making. The proposed framework introduces a holistic approach, provides context and accountability for decision-making and attributes data flows, roles and responsibilities to different management levels.Research limitations/implicationsThe limitations of our study lie in the exploratory nature of case study research and limited generalization of the observed cases. However, the authors used multiple sources of evidence to ensure validity and generalization of the results. This article is a first step toward further understanding of the issues of transformation in power companies and other asset intensive businesses.Originality/valueThe novelty of the framework lies in the scope, focus and detailed treatment of asset data management in electric power companies.

Impact assessment of contemporary international and national accounting standards adoption: evidence from Greek hotels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikolaos Iason Koufodontis ◽  
Stella Zounta ◽  
Maria Papagiouvanni
Keyword(s):  
Decision Making ◽  
Accounting Standards ◽  
Strategic Decision ◽  
International Accounting ◽  
Property Management ◽  
International Accounting Standards ◽  
Legal Form ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Mandatory Adoption

PurposeThis paper aims to offer new insights on how the adoption of contemporary international accounting standards can affect the financial performance of a hotel. It provides significant input for strategic decision making in property management, especially in countries where hotels properties are given a choice between different accounting standards.Design/methodology/approachData was collected from 3-, 4- and 5- star hotels in Greece, through primary research with questionnaires, filled by hotel financial managers. Greece was selected because hotels can choose between national and international accounting standards; therefore, the research could focus on actual factors beyond mandatory adoption.FindingsMicroeconomic factors such as category or legal form of the hotel in combination with other factors can affect the perceived benefits of the selected accounting standards. Macroeconomic factors such as the overall tourism development of the destination also affect the perceived impact.Research limitations/implicationsThe research was targeted at hotel executives with knowledge and participation in decision making regarding accounting standards. This requirement limited the sample since all hotels do not have a financial manager position.Practical implicationsThe new knowledge can be utilized in property management as an element of hospitality strategic planning for improved assessment of anticipated effects resulting from the adoption of specific accounting standards.Originality/valueThe research fills a gap in existing knowledge by introducing elements not previously examined; additionally, it expands previous knowledge from other sectors to hospitality and tourism, while verifying or rejecting past findings.

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