scholarly journals Assessment of the moderating effects of Nigerian market environment on the relationship between management success determinants and SMEs’ performance

2020 ◽  
Vol 18 (4) ◽  
pp. 388-401
Author(s):  
Olalekan Asikhia ◽  
Vannie Naidoo
Keyword(s):  
Performance Management ◽  
Chief Executive Officers ◽  
Small And Medium Enterprises ◽  
Chief Executive ◽  
Environmental Turbulence ◽  
Small Scale ◽  
Moderating Effects ◽  
Market Environment ◽  
Executive Officers ◽  
The Relationship

A reported eighty-five percentage failure rate of SMEs in Nigeria before five years of operation was ascribed to a lack of knowledge of the market environment. Hence, this study investigated the moderating effects of the Nigerian market environment on the relationship between management success determinants and SMEs’ performance to see how the environment has affected SMEs’ performance. The study employed a survey research design, the population of the study comprised chief executive officers (CEOs) of registered SMEs, and a sample size of 1,102 was used. Probability sampling methods of stratified, proportionate, and random sampling were adopted. Responses were collected through a predetermined set of questions and a self-administered questionnaire. Data were analyzed using descriptive and inferential statistics. The study found that the Nigerian market environment had moderating effects on the relationship between management success determinants and SMEs’ performance (R = 0.817, R2 adjusted = 0.664, R2 change = 0.041, and Fchange = 19.694 at ρ = 0.000), most of the Nigerian market environment’s components have significant moderating effects on all the management success determinants relationship with SMEs’ performance; management skills (β = 0.220, 0.182; ρ < 0.05), innovation (β = 0.147, 0.135; ρ < 0.05), operating system (β = 0.083, 0.061; ρ < 0.05), organizational structure (β = 0.290, 0.303; ρ < 0.05), business reporting system (β = 0.142, 0.137; ρ < 0.05), system flexibility (β = 0.110, 0.107; ρ < 0.05), environmental scanning (β = 0.091, 0.062; ρ < 0.05). Only decision-making is not statistically significant (β = 0.037, 0.004; ρ > 0.05). These imply that Nigerian SMEs’ decisions under intense environmental turbulence are mostly ineffective, and the effects of management success determinants in facilitating performance were also drastically reduced as well as firms’ system flexibility. The study has a practical value of identifying the effect of the Nigerian market environment on the relationship between management success determinants and SMEs’ performance, thus revealing the gaps in the Nigerian SMEs’ management factors. Acknowledgment(s)To Small and Medium Enterprises Development Agency of Nigeria and Small Scale Enterprises Association of Nigeria for their support in ensuring participation of their members.

scholarly journals Chief Executive Officer Regulatory Focus and Competitive Action Frequency

2020 ◽  
pp. 105960112098141
Author(s):  
Arpita Agnihotri ◽  
Saurabh Bhattacharya
Keyword(s):  
Chief Executive Officer ◽  
Regulatory Focus ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Moderating Effects ◽  
Upper Echelons ◽  
Prevention Focus ◽  
Competitive Action ◽  
Executive Officers ◽  
The Relationship

Using regulatory focus, the Chief Executive Officer-Top Management Team (CEO-TMT) interface, and upper echelons theories, the present study casts additional light on the competitive action frequency of firms, as determined by their chief executive officers (CEOs) regulatory focus under the contingent effect of the CEO–TMT dissimilarity of informational demographics. Applying regulatory focus and upper echelons theories, this study first hypothesizes how CEO regulatory focus influences competitive action frequency. Next, leveraging CEO–TMT interface research, this study suggests moderating effects on the part of CEO–TMT dissimilarity, across functional background and tenure, and on the relationship between CEO regulatory focus and competitive action frequency. Drawing on a sample of 218 firms from India for a 5-year period (2010–2015), we find that a CEO promotion focus enhances a firm’s competitive action frequency and that a prevention focus diminishes the same. Furthermore, dissimilarities in terms of both CEO–TMT functional background orientation and tenure in the organization moderate this relationship. This study concludes with a discussion of the article’s theoretical and practical implications.

In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

2021 ◽  
pp. 147612702110048
Author(s):  
J Daniel Zyung ◽  
Wei Shi
Keyword(s):  
Chief Executive Officers ◽  
Empirical Support ◽  
Chief Executive ◽  
Firm Level ◽  
Self Confidence ◽  
Self Worth ◽  
Executive Officers ◽  
Leadership Research ◽  
The Relationship

This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.

scholarly journals The relationship between chief executive officer compensation and the size and industry of South African state-owned enterprises

2019 ◽  
Vol 17 ◽  
Author(s):  
Mariette Coetzee ◽  
Magda L. Bezuidenhout
Keyword(s):  
Chief Executive Officers ◽  
Ceo Compensation ◽  
African State ◽  
Chief Executive ◽  
Annual Reports ◽  
Performance Contracts ◽  
Ceo Pay ◽  
Managerial Implications ◽  
Executive Officers ◽  
The Relationship

Orientation: Concerns about exorbitant executive compensation are making headlines, because executives receive lucrative packages despite state-owned enterprises (SOEs) performing poorly. It appears as if chief executive officers (CEOs) are not being held accountable for the performance of the SOEs.Research purpose: The purpose of the study was to determine whether the size and the industry of an SOE had an impact on CEO compensation packages.Motivation for the study: A greater understanding of the relationship between CEO remuneration and the size and type of industry of SOEs would assist with the standardisation of CEO remuneration and linking CEO pay to SOE performance.Research approach/design and method: A multiple regression analysis on a pooled dataset of 162 panel observations was conducted over a 9-year period. Financial data of 18 SOEs were extracted from the McGregor BFA database and the annual reports of SOEs.Main findings: The findings show that the size of an SOE does not influence the total compensation of CEOs. However, larger SOEs pay larger bonuses due to these SOEs being in a stronger financial position to offer lucrative bonuses. CEO’s remuneration was aligned within certain industries.Practical/managerial implications: The findings emphasise the need to link CEO compensation with SOE performance. Standardisation in setting CEO compensation and implementing performance contracts should be considered.Contribution/value-add: The study confirms that CEO pay is not linked to performance and not justified when considering SOE size or industry.

The effects of global financial crisis on the relationship between CEO compensation and earnings management

2020 ◽  
Vol 28 (2) ◽  
pp. 389-408 ◽  
Author(s):  
Oheneba Assenso-Okofo ◽  
Muhammad Jahangir Ali ◽  
Kamran Ahmed
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Global Financial Crisis ◽  
Chief Executive ◽  
Content Type ◽  
Multivariate Tests ◽  
Executive Officers ◽  
The Relationship

Purpose This paper aims to examine the effects of global financial crisis (GFC) on chief executive officers’ (CEO) compensation and earnings management relationship. Specifically, the authors examine whether the recent financial crisis had moderated the relationship between CEO bonus and discretionary accruals. Design/methodology/approach The authors use panel data for 1,800 firm-year observations (over a period of six years from 2005 to 2010) and use univariate and multivariate tests to test their hypothesis. The authors divide the period into pre-crisis, during-crisis and post-crisis periods to examine how the different financial crisis periods affect the relationship between CEO compensation and earnings management. Various alternative tests including endogeneity test suggest that the results are robust. Findings The authors’ multivariate results indicate that the relationship between CEO’ compensation and earnings management changes because of the GFC. Practical implications The findings, therefore, justify more monitoring and scrutiny to limit the existence of opportunistic managerial behaviour and for the appropriate designing of CEO compensation packages during abnormal economic circumstances. Originality/value So far as the authors’ knowledge goes, this is the first study which examines the relationship between CEO compensation and earnings management during GFC.

Perceived accountability for local government infrastructure assets: the influence of stakeholders

2017 ◽  
Vol 29 (4) ◽  
pp. 551-572 ◽  
Author(s):  
Pavithra Siriwardhane ◽  
Dennis Taylor
Keyword(s):  
Local Government ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Stakeholder Salience ◽  
Content Type ◽  
The Public ◽  
The Government ◽  
Executive Officers ◽  
Policy Incentives ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between the degree of stakeholder salience and the degree of emphasis placed on accountability dimensions for infrastructure assets (IFAs) as perceived by mayors and chief executive officers (CEOs) of local government authorities (LGAs). Comparisons are drawn between the salience accorded to two broad stakeholder groups at the public level and at the government level. Design/methodology/approach Perceptions of mayors and CEOs are examined through a mail questionnaire survey administered among LGAs in Australia. Findings Overall accountability for IFAs by the LGAs is influenced by the salience accorded to the demands and needs of public stakeholders (PSs) but not the salience accorded to government stakeholders (GS). It is evident that public and managerial accountabilities are impacted by PS salience, whereas political accountability is impacted by the salience of GS. Thus, it emphasises that the establishment and implementation of policies, processes and systems that render transparency and responsiveness to the public, as well as service quality and the disclosure of performance measures, are positively affected by the salience accorded to PS groups. Research limitations/implications The results of the study may be affected by the inherent weaknesses associated with mail surveys. Practical implications Accountability of LGAs for IFAs to GS needs enhancement, specifically stronger policy incentives. Originality/value This paper contributes to the literature, providing evidence on how mayors and CEOs of LGAs perceive the salience of different stakeholders of IFAs and its impact on the perceived accountability.

Socializing accounting practices in governing boards: dairy co-operatives down-under

2016 ◽  
Vol 12 (1) ◽  
pp. 75-102 ◽  
Author(s):  
Karen VanPeursem ◽  
Kevin Old ◽  
Stuart Locke
Keyword(s):  
Chief Executive Officers ◽  
Design Methodology ◽  
Chief Executive ◽  
Document Analysis ◽  
Content Type ◽  
Challenges And Opportunities ◽  
Small Pool ◽  
Executive Officers ◽  
Accountability Practices ◽  
The Relationship

Purpose – The purpose of this paper is to evaluate the accountability practices of the directors in New Zealand and Australian dairy co-operatives. An interpretation of their practices, which focus on the relationship between directors and their farmer-shareholders, is informed by Roberts’ (2001a) understandings of a socializing accountability. Design/methodology/approach – The fieldwork consists of interviews with 23 directors, including all chief executive officers and chairmen, of six dairy co-operatives together with observations and document analysis. These co-operatives together comprise a significant portion of the regional dairy industry. The methodology draws from Eisenhardt’s (1989) qualitative approach to theory formation. Findings – The authors find that these directors engage in a discourse-based, community-grounded and egalitarian form of socializing accountability. As such, their practices adhere generally to Roberts (2001a) hopes for a more considerate and humble relationship between an accountor and an accountee. Social implications – Findings add to the small pool of research on the lived experiences of co-operative boards and to a parsimonious literature in socializing accountability practices. The contributions of the study are in advancing real understandings of alternative forms of accountability, in evaluating the conditions in which these alternatives may be likely to arise and in anticipating the challenges and opportunities that arise therefrom. Originality/value – The originality of the project arises from accessing the views of these industry leaders and, through their frank expressions, coming to understand how they achieve a form of a socializing accountability in their relationships with farmer-shareholders.

The Moderating Effects of Family Control on the Relation between Managerial Overconfidence and Earnings Management

2013 ◽  
Vol 16 (02) ◽  
pp. 1350010 ◽  
Author(s):  
I-Cheng Li ◽  
Jung-Hua Hung
Keyword(s):  
Earnings Management ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Positive Relation ◽  
Moderating Effects ◽  
Family Control ◽  
Listed Firms ◽  
Executive Officers ◽  
Managerial Overconfidence ◽  
Management Behaviors

This study investigates the relation between managerial overconfidence and earnings management and whether this relation is moderated by family control. Using a sample of Taiwan-listed firms, we estimate managerial overconfidence from manager dealings and determine the following: First, overconfident managers are more likely to engage in earnings management behaviors; second, family control negatively moderates the positive relation between managerial overconfidence and earnings management; and third, the negative moderating effects of family control primarily result from family chief executive officers.

Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meqbel Aliedan
Keyword(s):  
Chief Executive Officers ◽  
Small And Medium Enterprises ◽  
Chief Executive ◽  
Emerging Countries ◽  
Experiential Knowledge ◽  
Three Dimensions ◽  
Structured Interviews ◽  
Foreign Markets ◽  
Content Type ◽  
Executive Officers

Purpose The purpose of this study is to explore the relationship between experiential knowledge of foreign markets, institutional word of mouth (WOM) and small and medium enterprises’ (SMEs’) internationalization. Specifically, it aims to provide explanations of what and how cross-border experiential knowledge can be institutionally transmitted for SMEs’ internationalization purposes via WOM. Design/methodology/approach An exploratory approach was adopted within the phenomenological/qualitative research tradition. The data collection process was conducted through 23 semi-structured interviews with founders and chief executive officers of Saudi international SMEs. Findings The study’s findings confirm that SMEs seeking productive opportunities in the international market could improve their internationalization experience if they made proper use of institutional WOM as a catalyst for inter-firm learning. This concerns SMEs from emerging countries in particular as they are usually in a bid to legitimatize their presence in foreign markets. Originality/value The triadic relationship between experiential knowledge, institutional WOM and internationalization has not been previously researched. The current study, therefore, clearly adds value to the concept of WOM from three dimensions: institutionalization, cross-borderity and SMEs’ internationalization.

Fintech – stick or carrot – in innovating and transforming a financial ecosystem: toward a typology of comfort zoning

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Romeo V. Turcan ◽  
Bernadett Deák
Keyword(s):  
Grounded Theory ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Primary Data ◽  
Content Type ◽  
News Reports ◽  
Running Records ◽  
Executive Officers ◽  
Start Ups ◽  
The Relationship

Purpose Fintech is an “untilled field” in which the relation between Fintechs and incumbents is yet to be understood. This paper aims to explore this relationship and advance its theoretical and practical understanding. It further contributes toward Fintech paradigm and research domain emergence that both to date remain yet elusive. Design/methodology/approach This paper adopted a multiple-case study strategy for the purpose of theory building. Seven players from the Fintech ecosystem in Quebec (Canada) were selected, representing financial institutions, Fintech start-ups and Quebec’s financial cluster. Primary data was collected via in-depth interviews with ten respondents at the level of vice presidents, Managers, directors, chief executive officers and founders, and unobtrusive data – in the form of running records, mass-media news reports, presentations and proceedings from Fintech events. Data analysis was informed by grounded theory methods and techniques. Findings Grounded in data, this paper puts forward a typology of “comfort zoning” and its four types: nimbling, imperiling, cocooning and discomforting. Research limitations/implications Following the tenets of the grounded theory, four criteria are used to evaluate the emergent theory: fit, relevance, workability and modifiability. It is expected the interpretation and adoption of comfort zoning typology will be challenged, modified and enhanced by Fintech researchers and practitioners. Practical implications The comfort zoning typology would aid practitioners in their efforts to define and refine the domain of Fintech, problematize it and eventually enhance the relationship between Fintechs. Originality/value This paper fulfills an identified need to explore the relationship between Fintechs and incumbents and advance the theoretical and practical understanding of this relationship.

scholarly journals Application of environmental management accounting by small and medium enterprises in South Africa

2021 ◽  
Vol 12 (1) ◽  
pp. 103-111
Author(s):  
Thomas Nyahuna ◽  
Mishelle Doorasamy
Keyword(s):  
Environmental Management ◽  
Chief Executive Officers ◽  
Small And Medium Enterprises ◽  
Management Accounting ◽  
Chief Executive ◽  
Gauteng Province ◽  
Environmental Management Accounting ◽  
Executive Officers ◽  
Medium Enterprises ◽  
Depth Interviews

By focusing on environmental management accounting in SMEs, the study helps SME managers to effectively understand and find better ways of improving environmental management. The paper investigates environmental management accounting applications in manufacturing small and medium enterprises in Gauteng province. Small and medium enterprises were chosen based on their exclusion from the mainstream research on environmental management accounting (EMA). To achieve the main aim of the study, 24 in-depth interviews were undertaken among SMEs’ managers, accountants, chief executive officers, and owners. The study found that physical EMA is more common in SMEs than monetary EMA. 77% of SMEs’ respondents confirm using physical environmental information in their operations. Therefore, SMEs prefer EMA practices with little cost or no cost attached and practices that can effectively generate returns in the short term. In addition, the avoidance of monetary EMA is anchored on the premise of avoiding costly projects with no immediate material financial returns. Therefore, EMA is critical for SMEs to achieve sustainability.

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