The role of organizational culture in the adoption of customer profitability analysis: a field study

2017 ◽  
Vol 14 (1) ◽  
pp. 38-59 ◽  
Author(s):  
Matthew Fish ◽  
William Miller ◽  
D’Arcy Becker ◽  
Aimee Pernsteiner
Keyword(s):  
Organizational Culture ◽  
Financial Reporting ◽  
Performance Measurement System ◽  
Growth Spurt ◽  
Stage Model ◽  
Customer Profitability ◽  
Content Type ◽  
Implementation Team ◽  
Profitability Analysis

Purpose The purpose of this paper is to examine the role of organizational culture as a company migrates through a four-stage model for designing a performance measurement system (PMS) focused on customer profitability. Design/methodology/approach This is a single-site phenomenological case study, at Growth Spurt Marine Accessories (Growth Spurt), a manufacturing organization headquartered in the USA. Data were collected over a two-year period through interviews with accounting staff, internal company documents and recording observational notes. Findings The paper identifies three major factors that prevented Growth Spurt from transitioning its customer profitability analysis (CPA) reporting package through Kaplan and Cooper’s four-stage model of PMS design: executives exerting their power and spending political capital to prevent implementation without providing rationale, executives believing that the allocation methods were too subjective and executives relying on their own intuition in analyzing customer profitability rather than relying on data. These factors suggest that organizational culture plays an important role in migrating a customer-focused profitability PMS through Kaplan and Cooper’s four-stage model of PMS system design. Research limitations/implications The findings suggest that a PMS focused on customer profitability that does not advance beyond Stage II (financial reporting-driven) may still suit the needs of an organization. Additionally, managers should advocate for a multidisciplinary PMS design and implementation team to minimize potentially adverse effects of organizational culture. Originality/value This paper is unique because it applies Kaplan and Cooper’s four-stage model for PMS design to CPA and it uses a phenomenological case approach to explore impediments to a comprehensive CPA implementation.

scholarly journals Expatriates’ withdrawal intentions

2017 ◽  
Vol 46 (8) ◽  
pp. 1852-1869 ◽  
Author(s):  
Luisa Helena Pinto ◽  
Carlos Cabral Cardoso ◽  
William B. Werther Jr
Keyword(s):  
Organizational Culture ◽  
Goal Orientation ◽  
Design Methodology ◽  
Negative Influence ◽  
Content Type ◽  
Mediating Role ◽  
Business Goals ◽  
Culture Characteristics ◽  
The Relationship

Purpose The purpose of this paper is to examine the role of perceived home and destination organizational culture characteristics and general satisfaction with the assignment as antecedents of expatriates’ withdrawal intentions. Design/methodology/approach Data were collected through a web survey of an international sample of expatriates with a broad representation of industries, organizations and countries of origin and destination. Findings The results indicate that home and destination organizational cultures affect expatriates’ withdrawal intentions, after controlling for demographics and national cultural differences, namely: home organizational culture has a stronger influence on withdrawal intentions from the organization, while host organizational culture affects withdrawal intentions from the assignment. Further, the relationship between host organizational culture and expatriates’ intentions to withdraw from the assignment is mediated by expatriates’ satisfaction with the assignment. Evidence was also found supporting a stronger and negative influence of the goal orientation dimension of organizational culture, thus suggesting that a collective orientation toward common business goals (i.e. solidarity) may help retain expatriates. Originality/value This study seeks to fill a gap in the literature by exploring the influence of organizational culture on expatriates’ withdrawal intentions, and the mediating role of expatriates’ satisfaction with the assignment, on that relationship.

scholarly journals Measuring the independence of audit oversight entities: a comparative empirical analysis

2017 ◽  
Vol 30 (2) ◽  
pp. 165-184 ◽  
Author(s):  
Lukas Loehlein
Keyword(s):  
Financial Reporting ◽  
Policy Research ◽  
Essential Elements ◽  
Future Research ◽  
Public Confidence ◽  
Content Type ◽  
Legal Provisions ◽  
Accounting Scandals ◽  
Independent Audit

Purpose Independent audit oversight is a prerequisite for restoring public confidence in financial reporting and auditing after the past accounting scandals and the financial crisis. By analysing and comparing the independence of the audit oversight boards of 27 European Member States and the USA, this study aims to provide insights into the question of how independent “independent” audit oversight boards are. Design/methodology/approach Independence is measured in terms of the organisational compositions and regulatory competences of the audit oversight authorities. The data were collected through an e-mail questionnaire that was sent to all European oversight authorities, and by analysing legal provisions of various regulators. The results are analysed and visualised by a Partial Order Scalogram Analysis with Coordinates, which allows conclusions about the similarities of various systems and their relative levels of independence. Both measurements are then equally combined into one value of material independence, which is used to rank the oversight authorities. Findings Although all countries encounter similar pressures to establish profession-independent oversight systems, this study identifies how differently “independence” has been translated in regulatory outcomes. While all countries claim to possess formal independent oversight bodies, there is a visible gap between countries with comparatively strong independent oversight authorities and systems in which accounting bodies still maintain far-reaching regulatory influence. At the same time, the results question the role of the Public Company Accounting Oversight Board (PCAOB) as the globally perceived benchmark of an entirely independent regulator. Research limitations/implications This study focuses on formal independence rather than de-facto independence. Future research has, therefore, to address how these formal arrangements have evolved in regulatory practice. Practical implications Policy makers around the world perceive independent oversight as one of the essential elements of regulatory reforms aiming at restoring public confidence in the aftermath of past accounting scandals. This study enables the comparison and benchmarking of national specific regulatory designs with other forms of independent oversight. Originality/value Although the role of independent regulation is a recurring theme in accounting research, a systematic and encompassing comparison of the intertwining of audit oversight authorities and the accounting profession has not yet been provided. This study takes a first step towards providing a quantifiable measure of the formal independence of audit oversight authorities by mobilizing concepts, methods and prior findings from the field of public policy research.

The role of state ownership on earnings quality: evidence across public and private European firms

2018 ◽  
Vol 19 (2) ◽  
pp. 312-332 ◽  
Author(s):  
Cristina Gaio ◽  
Inês Pinto
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Capital Markets ◽  
Capital Market ◽  
Earnings Quality ◽  
State Ownership ◽  
Public And Private ◽  
Content Type ◽  
Large Sample

Purpose The purpose of this paper is to examine the role of state ownership on financial reporting quality regarding the characteristics of conservatism and earnings management. Design/methodology/approach Using a large sample of public and private European firms during the period 2003-2010, the authors test the hypotheses following Ball and Shivakumar’s (2005) model for conservatism and the modified Jones (1991) model proposed by Dechow and Sloan (1995) for earnings management. To ensure that the results are robust, the authors conduct sensitivity analysis with regard to potential endogeneity and selection bias. Findings The authors find that state-owned firms are less conservative than non-state-owned firms, which is consistent with the idea that there is less need for accounting conservatism due to government protection. The authors also show that capital markets play an important role in shaping the relation between state ownership and earnings management. Among public firms, the authors find that state-owned firms have higher abnormal accruals and worse accruals quality than non-state-owned firms, which suggests that state-owned firms are not immune to capital market pressures. Research limitations/implications The study has two limitations. First, as state-owned and non-state-owned firms face quite different incentive structures, management behavior might be determined by factors that have yet to be identified. Second, prior research results suggest an inverted U-shape relation between ownership concentration and earnings management (Ding et al., 2007). It would be interesting to investigate the impact of different levels of state ownership on earnings quality. Practical implications As the paper investigates the role of state ownership on earnings quality using a sample of European firms, it brings new insights regarding the role of state ownership in accounting quality and firm performance. In addition, it considers the role of capital markets in the relation between the quality of financial reporting and ownership by considering a sample with both public and private firms. Originality/value The study contributes to the debate about state intervention in the corporate sector, by extending the knowledge of the effects of government ownership on earnings quality by using a large sample of European firms. Furthermore, the authors also introduce the effect of capital market forces on managers’ behavior in state-owned and non-state-owned companies by analyzing private and publicly listed firms.

The role of the Troika on the Greek central government accounting reforms

2018 ◽  
Vol 31 (3) ◽  
pp. 316-330 ◽  
Author(s):  
Sandra Cohen ◽  
Sotirios Karatzimas
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Central Government ◽  
Case Study Research ◽  
Extreme Case ◽  
Resource Dependency ◽  
Reform Process ◽  
Content Type

Purpose The purpose of this paper is to explore the role of the Troika’s advent played in the progress of the budgeting and the financial reporting systems reform at the Greek central government level. Design/methodology/approach The approach of an extreme country case study is adopted. The data used in the paper have been identified through document analysis performed on the relevant documents produced by the Troika, the Greek Ministry of Finance, and other relevant sources. The reform process is seen through the lens of the neo-institutional theory and the resource dependency theory. Findings Although both reforms targeted the introduction of best international practices – particularly useful in periods of financial distress and scarce resources – the advent of the Troika affected their progress and changed the priorities. As a result, the reform was redirected toward strengthening the cash budgeting system. Research limitations/implications The study is subject to the limitations of an extreme case study research. Practical implications This is a case where resource dependency changes political priorities and directions and affects the evolvement of state budget and accounting reforms under way. Originality/value The role of external fund providers in public sector financial management reform priority-setting, in the case of a developed Eurozone country, is analyzed. The study contributes to the research agenda on accounting practices in times of austerity.

Role of leadership, strategic planning and entrepreneurial organizational culture towards achieving organizational excellence: evidence from public sector using SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hassan Al-Dhaafri ◽  
Mohammed Saleh Alosani
Keyword(s):  
Organizational Culture ◽  
Strategic Planning ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Content Type ◽  
Organizational Excellence ◽  
Practical Implications

Purpose The purpose of this study is to study the collective effect of leadership, strategic planning and entrepreneurial organizational culture (EOC) on organizational excellence. Design/methodology/approach Using primary data obtained through a survey questionnaire, hypotheses have been developed for testing. Out of a total of 565 questionnaires, only 355 questionnaires were returned where data were collected from the Dubai police organization. The structural equation modelling (SEM) approach was used to analyse the collected data. Findings Statistical findings using SEM-partial least square confirmed the full mediating role of strategic planning as a mechanism between leadership and organizational excellence. In addition, the results reported a significant effect of leadership on strategic planning besides its impact on organizational excellence. Practical implications Results reported many valuable implications. The outcomes of this study have practical implications that will help managers, decision-makers and practitioners to consider the study’s variables to enhance the overall performance through achieving excellence. Originality/value The collective role of leadership, strategic planning, EOC and organizational excellence is studied as one of the most important empirical studies which bring original contribution to the existing body of knowledge.

scholarly journals Investigating risk disclosures in Italian integrated reports

2020 ◽  
Vol 28 (6) ◽  
pp. 1149-1178 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes Rossi ◽  
Rebecca Levy Orelli ◽  
Giuseppe Nicolò
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Design Methodology ◽  
Alternative Form ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Risk Disclosures ◽  
Do So

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

The role of agency costs in the voluntary adoption of XBRL-based financial reporting

2020 ◽  
Vol 16 (5) ◽  
pp. 599-622
Author(s):  
Mehdi Khedmati ◽  
Farshid Navissi ◽  
Mohammed Aminu Sualihu ◽  
Zakiya Tofik-Abu
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Agency Costs ◽  
The United States ◽  
Matched Pair ◽  
Alternative Measure ◽  
Content Type ◽  
Using Data ◽  
Voluntary Adoption

PurposeThe purpose of this paper is to examine whether and how firm's agency costs played a role in the voluntary adoption of the eXtensible Business Reporting Language (XBRL) under the SEC's voluntary filing program (VFP) that encouraged the voluntary adoption of the XBRL.Design/methodology/approachThis study employs a logistics regression and a sample of 140 firms that voluntarily participated in the VFP during its entire existence in the United States, and 140 matched-pair counterparts that did not voluntarily adopt the XBRL to investigate the role of agency costs in the voluntary adoption of XBRL-based financial reporting.FindingsWe find evidence consistent with the conjecture that a firm's low magnitude of agency costs plays a significant motivating role in the voluntary adoption of XBRL-based financial reporting. Our results continue to hold after using an alternative measure of agency costs and conducting two-stage least squares regressions. Supplementing these results, the study also shows that the level of agency costs of voluntary XBRL adopters remains statistically unchanged after the adoption while the level of agency costs associated with the firms that did not participate in SEC's VFP significantly decline after the adoption during the XBRL mandate.Practical implicationsThe findings of this study suggest that based on a firm's level of agency costs, regulators and policymakers, especially those in countries that are yet to mandate XBRL reporting, can, in advance, identify firms that are more likely to comply with their new financial reporting initiatives.Originality/valueThis paper provides first evidence on the role of agency costs in the voluntary adoption of XBRL using data from the United States.

Employee happiness and corporate social responsibility: the role of organizational culture

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco Espasandín-Bustelo ◽  
Juan Ganaza-Vargas ◽  
Rosalia Diaz-Carrion
Keyword(s):  
Organizational Culture ◽  
Corporate Social Responsibility ◽  
Occupational Health ◽  
Social Responsibility ◽  
Health And Safety ◽  
Cross Cultural ◽  
Content Type ◽  
Corporate Social ◽  
Employee Happiness

PurposeThis research explores how does the organizational culture influence internal corporate social responsibility (CSR) actions and the effect of these actions on the level of happiness of employees.Design/methodology/approachThe study adopts an employee perspective since the perception of employees is the unit of analysis. By relying on a sample of 921 workers of firms from different sectors and sizes headquartered in Spain, the empirical analysis is performed using partial least squares.FindingsThe findings evidence that clan and adhocracy cultures highly foster internal CSR practices and that internal CSR activities enhance employees' happiness. The mediating role of internal CSR in the relationship between organizational culture and employee happiness is also found. These results suggest that managers could play a proactive role in fostering internal CSR by designing the organizational culture according to features of clan and adhocracy cultures such as flexibility, innovation, creativity, autonomy, communication, training and support of supervisors.Research limitations/implicationsThe research focuses on a single country, which makes it difficult to generalize the results and guides future research into cross-cultural analysis. Including countries that present differences in their cultural and institutional context would allow to explore the influence of the national context on the business culture, on internal CSR and on employee happiness. This work is also limited in time, as the data used are of a cross-cultural nature.Practical implicationsA greater effort in internal CSR by companies translates into a higher level of happiness for their workers. Specifically, occupational health and safety practices have the greatest influence on employee happiness. Hence, organizations must develop cultures that contribute to promote internal CSR—adhocracy and clan—since this would enhance employees' happiness if the values and beliefs that characterize these cultural configurations are translated into internal CSR practices such as occupational health and safety, work–life balance and equal opportunities.Social implicationsThe improvement of employee happiness creates social value and can be enhanced through an organizational culture that promotes CSR. The research findings might be useful when defining institutional policies to promote job quality, as encouraged by the social policy agenda of the United Nations embodied in the Sustainable Development Goals.Originality/valuePromoting internal CSR through organizational culture will have positive effects for companies internally by enhancing employees' happiness. Therefore, the article contributes to overcome the lack of evidence about the antecedents of internal CSR and its relationship with employees' happiness, an emerging variable in the management literature.

Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulina Roszkowska
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Financial Scandals ◽  
External Auditor ◽  
Equity Investments

Purpose The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments. Design/methodology/approach The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature review at the intersection of business, accounting and engineering, provides a foundation to propose technology advancements that can solve identified problems in accounting and auditing. Findings The findings show that blockchain, internet of things, smart contracts and artificial intelligence solutions have different functionality and can effectively solve various financial reporting and audit-related problems. Jointly, they have a strong potential to enhance the reliability of the information in financial statements and generally change how companies operate. Practical implications The proposed and explained technology advancements should be of interest to all publicly listed companies and investors, as they can help safeguard equity investments, thus build investors’ trust towards the company. Social implications Aside from implications for capital markets participants, the study findings can materially benefit various stakeholder groups, the broader company environment and the economy. Originality/value This is the first paper that seeks solutions to financial fraud and audit-related financial scandals in technology and not in implementing yet another regulation. Given the recent technology advancements, the study findings provide insights into how the role of an external auditor might evolve in the future.

A new conceptual framework for identifying the factors influencing the effectiveness of competitive intelligence

2020 ◽  
Vol 30 (5) ◽  
pp. 555-576
Author(s):  
Somayeh Asghari ◽  
Sahar Targholi ◽  
Ali Kazemi ◽  
Saeed Shahriyari ◽  
Lila Rajabion
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Statistical Analysis ◽  
Conceptual Framework ◽  
Knowledge Sharing ◽  
Competitive Intelligence ◽  
Future Research ◽  
Content Type ◽  
Practical Implications

Purpose Competitive intelligence (CI) collects data through the distribution of knowledge to make decisions in a competitive environment. To better comprehend the concept of CI, the purpose of this paper is to determine the role of effective factors (knowledge sharing, competitor information, information technology (IT) and organizational culture) and their impact on CI. In addition, the paper provides a conceptual framework for determining the practical factors on CI. Design/methodology/approach For evaluating the elements of the model, a questionnaire is considered. Questionnaires were reread by specialists with significant experiences in the CI field. For statistical analysis, the SPSS 22 and SmartPLS 3.2 software package is also used. Findings Findings from the study showed the validity of the model for a CI assessment. Furthermore, the results confirmed that the competitor information significantly influenced CI. In addition, the obtained results implied that IT has a significant and positive influence on CI. The effect of organizational culture on CI also proved to be positive and significant. Research limitations/implications This paper makes significant contributions for both researchers and practitioners; however, the authors determine some limitations, which are as follows: First, the authors showed the result in a single region. It cannot be assured that the results are generalizable to other areas. Second, because of time and financial constraints, the authors gathered the data using a sample from a single location. Third, the use of variables to depict CI may be not exhaustive. The authors, therefore, encourage future research to study these CI dimensions. Practical implications This study meaningfully contributes to the knowledge and literature by focusing more on CI, examining other significant aspects and applying advanced statistical analysis method. Also, current research results suggest practical implications for marketing practitioners and managers who implemented tools and made strategic plans to enhance the organization’s performance. From a practical perspective, the statistical results support the crucial role of the following factors: IT, competitor information, organizational culture and knowledge sharing on CI. Originality/value Experts in the area of knowledge management, CI and strategic management can use this study to gain a competitive advantage based on knowledge and information resources. Organizations must have knowledge management function and CI to support the strategy formulation, implementation and evaluation.

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