scholarly journals Does Structural Power Matter? Board Attributes and Firm Performance

2020 ◽  
Vol 3 (5) ◽  
pp. 54-64
Author(s):  
Fiona Jepkosgei Korir ◽  
Joel K Tenai
Keyword(s):  
Firm Performance ◽  
Longitudinal Research ◽  
Chief Executive ◽  
Listed Firms ◽  
Longitudinal Research Design ◽  
Regulatory Bodies ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

Purpose- The study investigates the moderating role of Chief Executive Officer Duality onboard attributes and firm performance of companies listed in Kenya. Design/Methodology- The research used a longitudinal research design. Panel data were derived from published accounts for sixteen years that is from 2002-2017. IGLS regression models were used to test the hypothesis. Findings- The empirical results indicated that the independence of the board, the size of the board, and the duration in which the board member served the organization positively influence the firm performance. However, CEO duality does not moderate the relationship. Practical Implications- Regulatory bodies such as NSE and CMA in Kenya should ensure that listed firms have more independent directors serving a board, ensure a reasonable size of the board and increase the board tenure to enhance firm performance. Further, the combined roles of the CEO and chairman may not influence the efficiency of the board in the Kenyan context.

scholarly journals An assessment of the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya

2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana
Keyword(s):  
Firm Performance ◽  
Power Distance ◽  
Multinational Companies ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Manufacturing Companies ◽  
Cultural Orientations ◽  
The Relationship ◽  
Moderating Role

Orientation: This article investigates the question, of whether culture really matters in implementing international strategic human resource management (SHRM) practices.Research purpose: Specifically, this study sought to investigate the extent to which employee cultural orientations moderate the link between SHRM practices and firm performance in large foreign manufacturing multinational companies in Kenya. Motivation for the study: Large foreign multinational companies have generally applied SHRM practices without adaptation when trying to improve employee performance even though resource based perspectives argue for the consideration of employees’ cultural orientations. Research design, approach and method: SHRM practices were conceptualised as independent variables measured through distinct practices. Organisational performance as a dependent variable was measured using constructs of image, interpersonal relations, and product quality. Cultural dimensions adopted for this study were power distance, uncertainty avoidance, individualism or collectivism, and masculinity or femininity. The above conceptual framework was tested by the use of both quantitative and qualitative techniques with data from fifty (50) large foreign multinational companies operating in Kenya. Main findings: Findings indicated that the relationship between SHRM practices and firm performance depend to a greater extent on employee cultural orientations when power distance is considered. Power distance (PD) refers to the extent of people accepting that power in institutions and organisations when distributed unequally. The greater the PD, the greater the acceptance of this inequality. Practical/managerial implications: The study supported the notion that the relationship between SHRM practices and firm performance is moderated by power distance through motivation but not by the other three bipolar dimensions namely, Uncertainty Avoidance, Masculinity or Femininity and Individualism or Collectivism. Contribution/value-add: This is the first large-scale empirical article that has focused on the moderating role of employees’ cultural orientations in large foreign manufacturing companies operating in Kenya.

CEO outsiderness and firm performance in an emerging economy: The moderating role of managerial discretion

2018 ◽  
Vol 26 (5) ◽  
pp. 798-814
Author(s):  
Aylin Ataay
Keyword(s):  
Firm Performance ◽  
Chief Executive ◽  
Emerging Economy ◽  
Managerial Discretion ◽  
Ceo Succession ◽  
Direct Impact ◽  
And Performance ◽  
Succession Events ◽  
Moderating Role

AbstractInconsistent findings from prior research on the performance consequences of new Chief Executive Officer (CEO) origin led us to study the moderating effect of managerial discretion on the link between CEO outsiderness and firms’ post-succession performance. Data from 75 CEO succession events from an emerging economy show that new CEO outsiderness, without managerial discretion context influences, has no direct impact on post-succession performance. Further, our findings emphasise the moderating impacts of managerial discretion, stemming from factors in a company’s external and internal contingencies, which either strengthen or weaken the association between new CEO outsiderness and post-succession firm performance. It is found that market complexity, but not munificence, provides CEOs with more discretion in the Turkish context, thus strengthening the positive associations between CEO origin and firm performance. Firms inertia weakens both managerial discretion level and the association between CEO outsiderness and firm performance. The results show that internal corporate governance also matters. Finally, when a CEO assumes the dual role of both the chairman and the CEO, the link between CEO outsiderness and performance of the firm becomes stronger.

The moderating role of previous venture experience on breadth of learning and innovation and the impacts on SME performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanhaiya K. Sinha ◽  
Chad Saunders ◽  
Simon Raby ◽  
Jim Dewald
Keyword(s):  
Design Methodology ◽  
Leadership Team ◽  
Higher Learning ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Innovation Activities ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the moderating role of previous venture experience on the relationship between learning breadth and innovation breadth, defined as the range of innovation types within a firm, and the impacts on SME performance.Design/methodology/approachA theoretical model was developed, and hypotheses were tested using step-wise multivariate regressions on survey data from 509 North American SME respondents.FindingsThe results demonstrate that the previous venture experience of a firm's top management plays a key role in enhancing the innovation breadth for a given level of learning breadth. There is a curvilinear relationship between innovation breadth and learning breadth, and increases in innovation breadth lead to increases in firm performance.Practical implicationsThe results indicate that organizations seeking higher performance returns by expanding their breadth of innovations need parallel attention on higher learning breadth in order to adequately capture the value from this broader set of innovations.Originality/valueThe paper contextualizes learning and innovation in the SMEs and argues that the consideration of diversity (breadth) of learning and innovation can help us understand their performance implications across industries. It also extends the effect of previous venture experience (PVE) of the leadership team in explaining performance. Beyond their ability to address external factors, PVE has a moderating effect on the relationship between learning and innovation breadth across the organization. Previous venture experience serves as both a guide and catalyst for investments in learning activities that lead to a broader range of innovation activities across the firm.

Knowledge-Oriented Leadership, Team Cohesion, and Project Success: A Conditional Mechanism

2022 ◽  
pp. 875697282110631
Author(s):  
Shahida Mariam ◽  
Kausar Fiaz Khawaja ◽  
Muhammad Nawaz Qaisar ◽  
Farooq Ahmad
Keyword(s):  
Project Success ◽  
Positive Association ◽  
Leadership Team ◽  
Team Cohesion ◽  
Project Complexity ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

We examined the impact of knowledge-oriented leadership on project success via team cohesion and the moderating role of valuing people and project complexity on this relationship. We collected data from 121 project employees in Pakistan in a two-wave field survey at an interval of 15 days. The results showed a positive association between knowledge-oriented leadership and project success, and team cohesion partially mediated this relationship. Valuing people positively moderated the relationship between knowledge-oriented leadership and team cohesion. Project complexity had a negative but insignificant moderating effect on project success. The theoretical and practical implications of these findings are discussed.

Organizational injustice and knowledge hiding: the roles of organizational dis-identification and benevolence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sadia Jahanzeb ◽  
Dirk De Clercq ◽  
Tasneem Fatima
Keyword(s):  
Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Knowledge Hiding ◽  
The Relationship ◽  
Sense Of Obligation ◽  
Moderating Role ◽  
Practical Implications ◽  
Organizational Injustice

PurposeWith a basis in social identity and equity theories, this study investigates the relationship between employees' perceptions of organizational injustice and their knowledge hiding, along with the mediating role of organizational dis-identification and the potential moderating role of benevolence.Design/methodology/approachThe hypotheses were tested with three-wave survey data collected from employees in Pakistani organizations.FindingsThe experience of organizational injustice enhances knowledge hiding because employees psychologically disconnect from their organization. This mediation by organizational dis-identification is buffered by benevolence or tolerance for inequity, which reduces employees' likelihood of reacting negatively to the unfavourable experience of injustice.Practical implicationsFor practitioners, this study identifies organizational dis-identification as a key mechanism through which employees' perceptions of organizational injustice spur their propensity to conceal knowledge, and it reveals how this process might be mitigated by a sense of obligation to contribute or “give” to organizational well-being.Originality/valueThis study establishes a more complete understanding of the connection between employees' perceptions of organizational injustice and their knowledge hiding, with particular attention devoted to hitherto unspecified factors that explain or influence this process.

scholarly journals Debt financing and firm performance: The moderating role of board independence

2020 ◽  
Vol 45 (3) ◽  
pp. 141-151
Author(s):  
Hanh Song Thi Pham ◽  
Duy Thanh Nguyen
Keyword(s):  
Emerging Market ◽  
Debt Financing ◽  
Board Independence ◽  
Data Set ◽  
Listed Firms ◽  
Negative Effect ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

This article investigates the moderating role of board independence in the relationship between debt financing and performance of emerging market firms. We have used an empirical model in which the firm’s accounting profitability is a dependent variable and the independent variables are debt financing, board independence, the interaction variable made of debt financing and board independence as well as various control variables. Our analysis is based on a panel data set of 300 listed firms in Vietnam between 2013 and 2017. Our study finds that debt financing has a significantly negative effect and that board independence reduces the adverse impact of debt financing on accounting profitability. Our results are consistent across different estimation models and methods.

The relationship between ethical leadership and employee voice: The roles of error management climate and organizational commitment

2019 ◽  
pp. 1-19 ◽  
Author(s):  
Jin Cheng ◽  
Haiqing Bai ◽  
Caixia Hu
Keyword(s):  
Organizational Commitment ◽  
Ethical Leadership ◽  
Employee Voice ◽  
Error Management ◽  
Voice Behavior ◽  
Mediating Role ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

AbstractStudies have shown that voice could be utilized as an effective method to improve organizational effectiveness. This study explores the relationship between ethical leadership and employee voice behavior by focusing on the mediating role of the error management climate and the moderating role of the employee's organizational commitment. Analysis of data collected in three phases in China indicates that the error management climate partly mediates the relationship between ethical leadership and voice behavior. Also, organizational commitment is found to moderate the relationship between the error management climate and voice behavior. Theoretical and practical implications of these results are discussed.

scholarly journals Differentiation Strategy, CSR, And Real Activities Earnings Management: Evidence From Korea

2017 ◽  
Vol 33 (4) ◽  
pp. 667 ◽  
Author(s):  
Sungbin Chun ◽  
Eunho Cho
Keyword(s):  
Earnings Management ◽  
Negative Relationship ◽  
Synergy Effect ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Sensitivity Tests ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

We empirically investigate whether a differentiation strategy constrains real activities earnings management (RAEM). Further, considering corporate social responsibility (CSR) activities are a popular tool of differentiation strategy, we examine whether interactive synergy between CSR activities and the differentiation strategy strengthens the negative relationship between differentiation strategy and RAEM. Using a sample of 659 firm-year observations of Korean manufacturing listed firms during 2005-2010, we find that differentiation strategy is negatively associated with RAEM, suggesting that firms pursuing a differentiation strategy are likely to refrain from managing earnings using RAEM that goes against their strategy. We also observe that interactive synergy between differentiation and CSR strengthens the negative relationship between differentiation strategy and RAEM, implying that synergy effect between CSR and differentiation strategy even more constrains RAEM that is in conflict with both CSR and differentiation strategy. These findings are robust after we perform sensitivity tests. This study contributes to the literature by providing the first evidence on the relationship between differentiation strategy and RAEM and the moderating role of CSR activities on the relationship.

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