Can socially responsible leaders drive Chinese firm performance?

2015 ◽  
Vol 36 (4) ◽  
pp. 435-450 ◽  
Author(s):  
Shuo Wang ◽  
Wei Huang ◽  
Yuhui Gao ◽  
Sean Ansett ◽  
Shiyong Xu
Keyword(s):  
Content Analysis ◽  
Firm Performance ◽  
Organizational Performance ◽  
Private Enterprises ◽  
Responsible Leadership ◽  
Socially Responsible ◽  
Content Type ◽  
Large Corporations ◽  
The Relationship ◽  
Practical Implications

Purpose – The relationship between socially responsible leaders, the key driver of corporate social responsibility (CSR) practices, and organizational financial performance is a salient issue in the global context for both CSR scholars and practitioners. The purpose of this paper is to provide much-needed insights into the interplay of responsible leadership, CSR practices, and organizational outcomes. Design/methodology/approach – It analyses 85 CEOs’ behaviors and their companies’ performance in a two-year database. It thereby enriches understanding of how leaders’ socially responsible decisions impact upon CSR engagement and firm performance. Findings – The results suggest that socially responsible leaders were positively related with organizational performance of return on equity (ROE). The aspects of integrity, morality, and stakeholder relationship aspects of responsible leadership are closely related to CSR. However, CSR practices were negatively related to ROA and ROE. It implies that in China CSR activities could not boost organizational performance in the short term, at least in two years. Research limitations/implications – Our research has clear limitations. First, most selected firms are renowned large corporations, state-owned, or private enterprises. Foreign-owned enterprises are excluded. Second, the evaluation of CSP is based on the content analysis of firms’ annual CSR reports. Our research has clear limitations. First, most selected firms are renowned large corporations, state-owned, or private enterprises. Foreign-owned enterprises are excluded. Second, the evaluation of CSP is based on the content analysis of firms’ annual CSR reports. Practical implications – Our research has practical implications for the business world. First, CSR practices in China shall be conducted in a strategic way. Second, responsible leadership is of significance for the Chinese MNCs that are overseas to build trustful stakeholder relations with local stakeholders. Originality/value – Based on the data analysis, this study provides in-depth discussion of CSR situation in China and its relationship with firm performance, which is one of the first studies to examine responsible leadership in Chinese context and investigate the relationship between responsible leadership and organizational performance.

Improving performance through leaders' forgiveness: the mediating role of radical innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Domínguez-Escrig ◽  
Francisco Fermín Mallén Broch ◽  
Ricardo Chiva Gómez ◽  
Rafael Lapiedra Alcamí
Keyword(s):  
Organizational Performance ◽  
Explanatory Variable ◽  
Radical Innovation ◽  
Structural Equations ◽  
Content Type ◽  
Mediating Role ◽  
Firm Turnover ◽  
The Relationship ◽  
Practical Implications

PurposeThe objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable.Design/methodology/approachThe study was conducted in a sample frame of 11,594 Spanish companies. A total of 600 valid questionnaires were obtained. The structural equations were used to validate the proposed hypotheses.FindingsResults confirmed the hypotheses proposed in the model: the authors provided, through structural equations, empirical evidence of the relationship between leaders' forgiveness and organizational performance, mediated by radical innovation. Leaders' forgiveness promotes radical innovation and, in turn, performance.Research limitations/implicationsThe sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation.Practical implicationsThe present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs.Originality/valueThe business field is closer to competitive values and has traditionally underestimated the importance of leaders' forgiveness. This is one of the few studies that empirically analyze the consequences of leaders' forgiveness within organizations.

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sitara Karim
Keyword(s):  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Executive Directors ◽  
Women Directors ◽  
Socially Responsible ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Practical Implications

PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

Increasing the impact of SHRM on organizational performance

2019 ◽  
Vol 27 (5) ◽  
pp. 7-8
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications ◽  
Overall Effectiveness

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The role of HRM is increasingly being viewed in strategic as well as functional terms. The impact of SHRM on firm performance is also determined by factors in its internal and external contexts. Balance between these contextual dimensions and input from various actors in the organization can help increase the overall effectiveness of a SHRM system. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

How to build a business

2015 ◽  
Vol 31 (11) ◽  
pp. 33-36
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Illustrative Case ◽  
Conceptual Approach ◽  
Model Framework ◽  
Content Type ◽  
The Right ◽  
Entrepreneurial Activities ◽  
The Relationship ◽  
Practical Implications

Purpose – This paper aims to deconstruct entrepreneurial orientation (EO) using a business model framework. Design/methodology/approach – Develops a conceptual approach supported by illustrative case studies that show how five Swedish small-to-medium-sized enterprises identified entrepreneurial opportunities and how they then modified their business model to exploit them. Findings – What makes an enterprise enterprising? What distinguishes these firms from the conservative, steady-as-she-goes, take-no-risks company quietly supplying its chosen market and expecting to do so for many more? Intuitively you might expect that entrepreneurial activities would be better rewarded – but researchers evaluating the link between EO and firm performance have found ambiguous results. So are we asking the right questions? And are we measuring the right things? Practical implications – Shows that companies can be entrepreneurial in some parts of their business model and more cautious in their approach to other activities. Social implications – Draws attention to the way that differences in entrepreneurs’ background, skills and growth ambitions affect their firm’s activities. Originality/value – Highlights opportunities for further research clarifying the relationship between EO and firm performance.

New evidence of the relationship between employee satisfaction and firm economic performance

2015 ◽  
Vol 44 (6) ◽  
pp. 906-929 ◽  
Author(s):  
Santiago Melián-González ◽  
Jacques Bulchand-Gidumal ◽  
Beatriz González López-Valcárcel
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Satisfaction ◽  
Performance Outcomes ◽  
Firm Level ◽  
Content Type ◽  
Worker Satisfaction ◽  
The Impact ◽  
The Relationship ◽  
Level Performance

Purpose – Employee satisfaction appears in any discussion about how employees can contribute to organizational performance. The purpose of this paper is to test the relationship between employee satisfaction and organizational performance; this later measured with three firm-level performance outcomes (return over assets, operating margin, and revenue per employee). Design/methodology/approach – At different times and from two independent sources the authors obtained firms’ data about worker attitudes and financial and productivity performance, respectively. The analyzed sample of 475 firms is the biggest among the studies that analyze performance and employee satisfaction at the firm level. The impact of employee satisfaction over firm performance was assessed. Findings – Overall satisfaction and satisfaction with senior leadership, compensation, and work/life balance, respectively impact firm performance. Research limitations/implications – The ratings come from both employees and ex-employees and the individual characteristics were unknown. Additionally as an internet-based sample there has been a lack of control over the individuals’ response process. Practical implications – Managers have evidence about the importance of their employees’ satisfaction on firm performance, and on how the facets involved on worker satisfaction impact the performance. Social implications – Employer review web sites are increasing their popularity. However, unlike the marketing field with consumers HR area has not taken advantage of this trend. The found results may contribute to highlight the importance of this kind of data. Originality/value – Hitherto there is only one empirical evidence about the positive role of worker satisfaction in objective and financial firm level performance. That was based in best-firms type data. The current study draws in a big sample independent of this kind of rankings. Additionally, the job facet satisfaction conceptualization considered demonstrates the usefulness of this way to understand the employee satisfaction.

Achieving organisational resilience through inbound logistics effort

2019 ◽  
Vol 122 (2) ◽  
pp. 432-447
Author(s):  
Flávio Henrique De Oliveira Costa ◽  
Andrea Lago Da Silva ◽  
Carla Roberta Pereira ◽  
Susana Carla Farias Pereira ◽  
Fernando José Gómez Paredes
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Quick Response ◽  
Content Type ◽  
Transportation Security ◽  
Geographical Dispersion ◽  
The Relationship ◽  
Practical Implications ◽  
Case Based ◽  
Inbound Logistics

Purpose The purpose of this paper is to identify how the relationship between inbound logistics (IL) activities and elements of resilience (EoR) can contribute to organisational resilience. Design/methodology/approach Two in-depth case-based studies were conducted in the dairy industry. After identifying EoR and IL activities through a systematic literature review, relationships among them have been empirically discussed in six groups (emerged content analysis results): supplier and response capability; transportation; security; quick response to disruption; logistics management; trust and knowledge. Findings A framework was developed describing the contribution of these six groups to organisational resilience by highlighting and discussing three aspects: rigidity of the hierarchy, type of relationship and geographical dispersion. These aspects emerged from the process of content analysis and are related to the companies’ characteristics. Practical implications The proposed framework can assist managers to decide which group of EoR and IL activities they should prioritise, depending on the company’s characteristics and needs. Originality/value Although some studies have discussed the IL contribution to generating resilience in companies, none of them have explored in detail the relationship between EoR and IL activities, and their contribution to organisational resilience. The proposed framework shows the contribution of the EoR to three different organisational aspects.

Does a retailer's performance depend on CSR practices? A stakeholder theory perspective from developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anil Kumar ◽  
Rohit Kr Singh
Keyword(s):  
Organizational Performance ◽  
Stakeholder Theory ◽  
Equation Modeling ◽  
Content Type ◽  
Structured Equation Modeling ◽  
Indian Context ◽  
Retail Outlets ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

PurposeThe study aims to examine the relationship between retailer's performance and corporate social responsibility (CSR) practices in Indian context. The article introduces a new conceptual model considering the parameters as per the stakeholder theory perspective.Design/methodology/approachThe authors conducted empirical research with CSR practices (CSRP) and other parameters to evaluate the retailers' performance using stakeholder theory. The authors present the results from 292 valid responses from the Indian retailers. The study used structured equation modeling (SEM) to present the analysis and the results.FindingsFindings indicate that CSRP along with additional constructs loyalty (L), reputation (R), customer satisfaction (CS) and competitive advantage (CA) have positive and significant impact on organizational performance (OP).Practical implicationsThe framework will serve as a guiding tool to the management of the retail outlets to examine carefully the link among CSRP with other variables presented in the study and subsequently to the retail outlet performance. The retailers must be more focused on the expectations and demands of the customers concerning products and services for better growth of the firms.Originality/valueThe uniqueness of the study lies in “CSR practices enabled integrated model” to examine the performance of the organizations. The proposed theoretical model would add value to the existing literature to help the retailers in process of their performance improvement.

scholarly journals Top management team demography and firm operating performance: a path analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tapio Jukka
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Top Management ◽  
Content Type ◽  
Age Diversity ◽  
Equation Modelling ◽  
Asset Turnover ◽  
The Relationship ◽  
Finnish Firms ◽  
Practical Implications

PurposeThis paper examined the relationship between TMT demographic properties and firm performance using diversity and level variables and measuring differing constructs of firm performance representing divergent strategies.Design/methodology/approachStructural equation modelling was used to test the relationships between TMT demographic properties and firm performance measured as return on net operating assets (RNOA), and its disaggregates profit margin (PM) and asset turnover (ATO). Data were from 89 Finnish firms during the years 2008–2011, resulting in 320 observations.FindingsTMT team tenure had associations with RNOA through both PM and ATO while TMT age, age diversity, firm tenure, firm tenure diversity and team tenure diversity showed paths through ATO. TMT firm tenure diversity showed effects in opposing directions through PM and ATO.Practical implicationsThe results help to understand and apply the separate effects of age, firm tenure and team tenure on TMT and firm performance. These results also provide explanations on how these TMT properties affect firm performance in diverse types of firms pursuing different strategies.Originality/valueThe results suggest that both diversity and level in a measured TMT demographic property are linked with firm performance, and the effect can be in differing directions. These links go through differing paths when using disaggregated operational firm performance measures. Also, diversity in top management is not always beneficial since it can cause separation or conflict impairing performance.

The effects of entrepreneurial orientation on the performance of the Malaysian manufacturing sector

2019 ◽  
Vol 11 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Wee Loong Lee ◽  
Aik Lee Chong ◽  
Ramayah T.
Keyword(s):  
Transformational Leadership ◽  
Firm Performance ◽  
Environmental Changes ◽  
Manufacturing Sector ◽  
Manufacturing Companies ◽  
Content Type ◽  
Competitive Aggressiveness ◽  
Composition Factors ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this paper is to examine the effects of entrepreneur orientation (EO) on firm performance of the Malaysian manufacturing sector.Design/methodology/approachData for the study were collected through a survey of 321 companies registered with the Federation of Malaysian Manufacturers. Responses were analyzed using PLS-SEM to assess the relationships between transformational leadership and firm performance.FindingsThe findings show that amongst Malaysian manufacturers, transformational leadership has a strong direct effect on firm performance.Practical implicationsThese findings provide useful insights for organizations, particularly in the Malaysian manufacturing sector, seeking to be competitive and responsive to environmental changes by successfully introducing EO.Originality/valueEO has been studied in detail in the recent literature. Many new researchers have explored various composition factors of EO, and how this will have an effect on firm performance. However, there are few research studies in the area of transformational leadership amongst Malaysian manufacturing companies. This research makes an important contribution to the existing literature by empirically examining the relationship between EO and firm performance, particularly in the Malaysian manufacturing sector. Conclusion emphasizes that mechanisms to encourage and foster EO mainly autonomy, competitive aggressiveness and proactiveness are likely to result in the achievement of superior firm performance.

The mediating role of TQM and organizational excellence, and the moderating effect of entrepreneurial organizational culture on the relationship between ERP and organizational performance

2016 ◽  
Vol 28 (6) ◽  
pp. 991-1011 ◽  
Author(s):  
Hassan Saleh Al-Dhaafri ◽  
Abdullah Kaid Al-Swidi ◽  
Rushami Zien Bin Yusoff
Keyword(s):  
Organizational Culture ◽  
Organizational Performance ◽  
Moderating Effect ◽  
Mediating Effect ◽  
Total Quality ◽  
Content Type ◽  
Organizational Excellence ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the relationship between enterprise resource planning (ERP) and organizational performance through examining the mediating effect of total quality management (TQM) and organizational excellence and the moderating effect of entrepreneurial organizational culture (EOC). Design/methodology/approach A survey questionnaire was used to collect the data from Dubai Police Departments. Out of the questionnaires distributed, 320 completed usable were returned and used for the analysis which employed partial least squares structural equation modelling methodology. Findings The results showed that there are positive and significant relationships between ERP, organizational excellence, TQM, and organizational performance. In addition, TQM was found to partially mediate the effect of ERP on organizational performance, where organizational excellence was found to fully mediate the effect on the same relationship. However, the moderating role of EOC on the ERP, TQM, and organizational performance was not confirmed. Practical implications Several practical implications have been gained from this study. It will increase the awareness of managers and decision makers to consider the constructs test to enhance the overall organizational performance in their organizations. The role of TQM and organizational excellence to facilitate the implementation of ERP is very critical. In addition, this research will increase the awareness of different stakeholders such as customers, supplier, and shareholders to integrate the proposed constructs examined to enhance the overall organizational performance. Originality/value The current study is one of the few or the only empirical study that examines the joint effect of ERP, TQM, organizational excellence, and EOC on organizational performance.

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