The dynamics of organizational reputation and status: momentum and volatility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eunjung Kim ◽  
Tohyun Kim ◽  
Mooweon Rhee
Keyword(s):  
Estimation Method ◽  
Dynamic Panel ◽  
Content Type ◽  
Organizational Reputation ◽  
The Us ◽  
Managerial Implications ◽  
Venture Capital Firms ◽  
Positive Effect ◽  
Significant Direct Effect ◽  
Dynamic Traits

PurposeOrganizational reputation and status are similar yet distinct constructs, serving as signals conveying information about an organization and its products and thus constituting audiences' perceptions about the organization. However, compared to status, reputation tends to change more dynamically over time. In this study, the authors argue that the dynamic traits of reputation – particularly, its momentum and volatility – may serve as additional signals and/or noises, influencing potential exchange partners' perception about the organization and thereby determining its status.Design/methodology/approachThe authors test our hypotheses in the context of the US venture capital firms between 1990 and 2010. The authors collected 8,793 firm-year observations of 1,186 VC firms and used the Arellano–Bover/Blundell–Bond dynamic panel estimation method to estimate their model.FindingsThe authors’ findings show that reputation momentum has a positive effect on status, whereas reputation volatility does not have a significant direct effect. However, the authors found that volatility has indirect effects on status, serving as a noise weakening the signaling effects of reputation and its momentum.Originality/valueThis paper contributes to the literature on organizational reputation and status by suggesting the importance of considering the dynamic traits of organizational reputation, which are indeed the crucial factors that distinguish reputation from status. Also, this study provides managerial implications for the organizations that aim to enhance their status through managing their reputation.

Foreign venture capital firms and internationalization of ventures

2020 ◽  
Vol 28 (3) ◽  
pp. 381-399 ◽  
Author(s):  
Heejin Woo
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Linear Models ◽  
Strategic Decisions ◽  
Foreign Markets ◽  
Content Type ◽  
The Us ◽  
Venture Capital Firms ◽  
Logistic Regressions

Purpose The purpose of this study is to examine how foreign venture capital firms affect the internationalization of investee ventures and their performance. The author argues that, as influential stakeholders, foreign venture capital (VC) firms engage in strategic decisions of investee ventures and may positively contribute to ventures’ business in foreign markets. Design/methodology/approach The study examines 551 VC-backed ventures that went public between 2000 and 2014 in the US. Logistic regressions and generalized linear models are used to test hypotheses, and the two-stage approach is used to address a potential endogeneity issue. Findings In the empirical results, the author finds that foreign VC investment is positively associated with the internationalization of ventures in terms of both the likelihood of internationalization and foreign sales intensity. In addition, the author finds that internationalization and foreign sales intensity are positively associated with firm performance when a venture is backed by a foreign VC firm. Originality/value This study makes important theoretical and empirical contributions to the international entrepreneurship literature by highlighting the role of foreign VC investors on internationalization of ventures.

Research shows HRM policies benefit organizational performance of Chinese companies

2019 ◽  
Vol 27 (7) ◽  
pp. 1-3
Keyword(s):  
Environmental Factors ◽  
Organizational Performance ◽  
National Culture ◽  
Design Methodology ◽  
Industrial Relations ◽  
Content Type ◽  
The Us ◽  
The Usa ◽  
The Many ◽  
Positive Effect

Purpose The German author set out to review existing studies of human resource management (HRM) in the USA, Europe, and China. His goal was to assess whether Chinese organizations had successfully imitated the HR strategies of organizations in Europe. Design/methodology/approach The author first reviewed studies of organizations in the US, where HRM strategies originated. He then turned to studies of European organizations. Only then did he turn to China and assess the many studies of HRM's effect on organizations there. Findings A clear process of copying western HR approaches was evident in China. The research confirmed that HRM could have a similarly positive effect in China as in the USA and Europe. But the results should be treated with caution, partly because the studies didn’t take into consideration environmental factors, such as industrial relations, unions, market conditions, and national culture. Originality/value The value was in demonstrating the enormous Chinese capacity to learn from Western HR strategies and benefit from them. It was also apparent that the differences in approaches were becoming narrower and narrower.

Effect of B2B advertising on firm’s market value: CSR as a strategic complement

2019 ◽  
Vol 35 (5) ◽  
pp. 895-908
Author(s):  
Shuojia Guo ◽  
Seokyoun Hwang ◽  
Chenglu Wang
Keyword(s):  
Market Value ◽  
Joint Effect ◽  
Signaling Mechanism ◽  
Content Type ◽  
Advertising Effect ◽  
Effect Regression ◽  
Managerial Implications ◽  
Corporate Social ◽  
Positive Effect ◽  
Financial Outcome

Purpose This paper aims to examine the B2B advertising effect on firm’s market value and whether/how its effectiveness can be enhanced with corporate social responsibility (CSR) strengths. Design/methodology/approach The authors propose that CSR can be a strategic complement to advertising and reinforce the latter’s positive effect on a firm’s performance in two logics: signaling mechanism and defensive mechanism. Using the Kinder, Lydenberg, and Domini database and final data obtained from Compustat, the authors applied fixed effect regression analysis to test the interaction effect of advertising expense and CSR strengths on firms’ market performance as operationalized in Tobin’s Q. Findings The result confirms that CSR moderates the B2B advertising effect on a firm’s market value. More importantly, the authors find that internal CSR activities that are closely related to a firm’s core business, compared to external CSR activities, more significantly enhance the advertising effectiveness on a firm’s market value. Practical implications This research provides guidelines for B2B firms to better prioritize resource allocation to CSR practices for achieving a better financial outcome. Originality/value The current study on the joint effect of advertising and CSR has important theoretical and managerial implications, given both tools are commonly used by most B2B firms but not necessarily integrated into one corporate marketing strategy.

scholarly journals The effect of acquisitions on exploration and exploitation in China

2019 ◽  
Vol 12 (2) ◽  
pp. 174-188
Author(s):  
Yulia Muratova ◽  
Damiana Rigamonti ◽  
Jesper N. Wulff
Keyword(s):  
Design Methodology ◽  
New Technologies ◽  
Innovation Capability ◽  
Exploration And Exploitation ◽  
Content Type ◽  
The Us ◽  
Capability Building ◽  
Knowledge Exploration ◽  
The Relationship ◽  
Positive Effect

Purpose The mechanisms of knowledge acquisition and their impact on innovation are particularly relevant in the context of rapidly growing emerging markets. The purpose of this paper is to investigate the relationship between firm acquisition characteristics and post-acquisition knowledge exploration and exploitation in the Chinese domestic acquisition market. Design/methodology/approach By using patent and company data of 188 domestic Chinese deals completed between 2002 and 2013, the paper replicates the measurements and analytical methods of the US-based study by Phene, Tallman and Almeida (2012) to address the acquirer’s opportunity to explore and/or exploit external knowledge, its ability to absorb and effectively assimilate such knowledge and thus establish innovations in new technologies. Findings The paper finds support for a positive effect of knowledge uniqueness of the target on the bidder’s post-acquisition exploration. The findings also support that the post-acquisition exploitation is facilitated by the commonality of technological knowledge between the bidder and the target, a result that, although expected, was not be supported in the US-based study. Originality/value This paper qualifies the generalizability of US-based findings about post-acquisition exploration and exploitation in the context of China. It also responds to the call for China-focused knowledge management research by capturing innovation capability building by Chinese firms through domestic acquisitions. Finally, it contributes to the nascent literature on replication in management studies.

Capital sudden stop, savings rate difference and economic growth: evidence based on 49 emerging economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu Ma ◽  
Jun Shi ◽  
Qiang Ji
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Estimation Method ◽  
Economic Effects ◽  
Sudden Stops ◽  
Dynamic Panel ◽  
Content Type ◽  
Savings Rate ◽  
Different Types ◽  
The Impact

PurposeThis paper empirically tests the impact of capital sudden stops on the economic growth using quarterly data from 49 emerging economies.Design/methodology/approachThis paper applies the GMM dynamic panel estimation method.FindingsThe results show that capital sudden stops can significantly inhibit the economic growth of emerging economies. It was also found that the inhibiting effect on low-savings-rate economies is greater, but less on high-savings-rate economies. In addition, this paper examined the impact of different types of capital sudden stops on economic growth in emerging economies. The results reveal that the impact of sudden stops of direct investment is not significant.Originality/valueLittle existing research considers the impact of capital sudden stops through the perspective of savings rate differences. Based on our research using the GMM model, we argue that capital sudden stops will lead to a decline in investment kinetic energy in emerging economies, and therefore, a decline in economic growth. There are also few studies on the economic effects of capital sudden stops. And the time series model is generally used in a single economy. This paper, however, uses the data from 49 emerging economies and takes the panel approach to more comprehensively study the capital sudden stops of emerging economies.

Product recalls and product-harm crises

2014 ◽  
Vol 24 (3) ◽  
pp. 190-210 ◽  
Author(s):  
Syed Tariq Anwar
Keyword(s):  
Small Scale ◽  
Product Recalls ◽  
Consumer Product Safety Commission ◽  
Content Type ◽  
Societal Issues ◽  
The Us ◽  
The Usa ◽  
Managerial Implications ◽  
Toy Industry ◽  
Compare And Contrast

Purpose – The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness. Design/methodology/approach – By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the paper uses content analysis to compare and contrast toy recalls, product hazards and country of origin issues of 721 toy recalls in the US market between 1974 and 2008, covering 270 million recalled toys. Findings – Findings of this work reveal that most of the recalled toys were manufactured in China, although a wide variety of toy brands were designed in the USA. Major hazards of toy recalls included choking, lead poisoning, aspiration, fire/burn and other injuries. Research limitations/implications – The study relied on the CPSC's data that seemed representative of the toy industry in the US market, but missed other markets of Europe and Asia. Also, there was availability of detailed data in sub-categories of the toy industry. Practical implications – The paper provides useful academic and managerial implications that can help us understand the issues of product recalls and product-harm crises. Social implications – Toys are one of the most widely available products in the world; the industry is a $50 billion industry and has transformed itself from a small-scale business sector into a well-established industry. Originality/value – This investigation is particularly important in the areas of firm-specific competitiveness, business ethics and regulatory and societal issues.

Turkey’s defence spend will rise despite economic woes

2021 ◽  
Keyword(s):  
Content Type ◽  
Self Sufficiency ◽  
The Us ◽  
The Government ◽  
Positive Effect

Significance Official spending on defence and security for 2022 is up by about 22% year-on-year. This does not include extrabudgetary resources which are kept secret even from lawmakers. The lack of transparency and independent oversight leaves it unclear whether the government is spending wisely or efficiently. Impacts The aim of 100% self-sufficiency in critical defence technologies is far-fetched given existing dependence on imports and foreign licences. Erdogan could drag Turkey into war on its borders to deflect attention from his economic mismanagement. Buying Russian S-400 missiles will cost Turkey its share of revenue from the US-led F-35 project and access to new defence technologies. Arms embargoes have had a positive effect in pushing Turkey to produce some banned products formerly sourced from its allies.

The effect of investor sentiment and the structure of shareholder ownership on corporate investment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Li ◽  
Bruce Grundy
Keyword(s):  
Fixed Effects ◽  
Investor Sentiment ◽  
Corporate Investment ◽  
Content Type ◽  
Investment Level ◽  
The Us ◽  
Retail Investors ◽  
Empirical Tests ◽  
Positive Effect ◽  
Practical Implications

Purpose This paper aims to investigate the relations amongst investor sentiment, the structure of shareholder ownership and corporate investment.Design/methodology/approach This paper develops a theoretical model, proposes hypotheses based on the predictions of the model and conducts empirical tests. The primary method is panel regression with fixed effects. The sample covers the US data for the period between 1980 and 2018.Findings This paper finds that firms with a higher proportion of retail investors invest more than otherwise similar firms. In the low-sentiment periods, the financially constrained firms invest less than the non-financially constraint firms. The positive effect of residual retail ownership on the investment level is higher for firms with a higher idiosyncratic risk.Practical implications The results suggest that larger share ownership of the relatively informed institutional investors may serve as a mechanism that could reduce the degree of overinvestment caused by higher investor sentiment and the over-optimistic of the relatively uninformed investors.Originality/value This paper provides an incremental theoretical and empirical contribution to the relations amongst investor sentiment, corporate investment and the structure of shareholder ownership.

Impact of relatedness, uncertainty and slack on corporate entrepreneurship decisions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Garrett ◽  
Shaunn Mattingly ◽  
Jeff Hornsby ◽  
Alireza Aghaey
Keyword(s):  
Decision Making ◽  
Hierarchical Linear Modeling ◽  
Cognitive Strategies ◽  
Corporate Entrepreneurship ◽  
New Venture ◽  
Organizational Level ◽  
Linear Modeling ◽  
Slack Resources ◽  
Content Type ◽  
Positive Effect

PurposeThe purpose of this study is to evaluate the effect of opportunity relatedness and uncertainty on the decision of a corporate entrepreneur to pursue a venturing opportunity.Design/methodology/approachThe study uses a conjoint experimental design to reveal the structure of respondents' decision policies. Data were gathered from 47 useable replies from corporate entrepreneurs and were analyzed with hierarchical linear modeling (HLM).FindingsResults show that product relatedness, market relatedness, perceived certainty about expected outcomes and slack resources all have a positive effect on the willingness of a corporate entrepreneur to pursue a new venture idea. Moreover, slack was found to diminish the positive effect of product relatedness on the likelihood to pursue a venturing opportunity.Practical implicationsBy providing a better understanding of decision-making schemas of corporate entrepreneurs, the findings of this study help improve the practice of entrepreneurship at the organizational level. In order to make more accurate opportunity assessments, corporate entrepreneurs need to be aware of their cognitive strategies and need to factor in the salient criteria affecting such assessments.Originality/valueThis paper adds to the limited understanding of corporate-level decision-making with regard to pursuing venturing opportunities. More specifically, the paper adds new insights regarding how relatedness and uncertainty affect new venture opportunity assessments in the presence (or lack thereof) of slack resources.

scholarly journals Sleep Duration and Waking Activities in Relation to the National Sleep Foundation’s Recommendations: An Analysis of US Population Sleep Patterns from 2015 to 2017

2021 ◽  
Vol 18 (11) ◽  
pp. 6154
Author(s):  
Michael Osei Mireku ◽  
Alina Rodriguez
Keyword(s):  
Sleep Duration ◽  
Time Use ◽  
Variance Estimation ◽  
Estimation Method ◽  
Short Sleep Duration ◽  
Weighted Estimates ◽  
American Time Use Survey ◽  
Increased Risk ◽  
The Us ◽  
Time Use Survey

The objective was to investigate the association between time spent on waking activities and nonaligned sleep duration in a representative sample of the US population. We analysed time use data from the American Time Use Survey (ATUS), 2015–2017 (N = 31,621). National Sleep Foundation (NSF) age-specific sleep recommendations were used to define recommended (aligned) sleep duration. The balanced, repeated, replicate variance estimation method was applied to the ATUS data to calculate weighted estimates. Less than half of the US population had a sleep duration that mapped onto the NSF recommendations, and alignment was higher on weekdays (45%) than at weekends (33%). The proportion sleeping longer than the recommended duration was higher than those sleeping shorter on both weekdays and weekends (p < 0.001). Time spent on work, personal care, socialising, travel, TV watching, education, and total screen time was associated with nonalignment to the sleep recommendations. In comparison to the appropriate recommended sleep group, those with a too-short sleep duration spent more time on work, travel, socialising, relaxing, and leisure. By contrast, those who slept too long spent relatively less time on each of these activities. The findings indicate that sleep duration among the US population does not map onto the NSF sleep recommendations, mostly because of a higher proportion of long sleepers compared to short sleepers. More time spent on work, travel, and socialising and relaxing activities is strongly associated with an increased risk of nonalignment to NSF sleep duration recommendations.

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