scholarly journals Corporate Reputation and Subsequent Financial Performance: A Theoretical Explanation of the Mediating Role of Trust

2019 ◽  
Vol 14 (11) ◽  
pp. 209
Author(s):  
M. M. D. De S. Gunawardena ◽  
R. Senathiraja ◽  
S. Buvanendra
Keyword(s):  
Financial Performance ◽  
Stakeholder Theory ◽  
Corporate Reputation ◽  
Organizational Trust ◽  
Theoretical Explanation ◽  
Scarce Resources ◽  
Mediating Role ◽  
Proposed Model ◽  
The Relationship

Amidst empirical evidence that claim corporate reputation affects subsequent financial performance of firms, the literature does not provide a comprehensive explanation for this relationship. The aim of this article therefore is to provide a theoretical explanation on how corporate reputation affects the subsequent financial performance. The available literature supports that corporate reputation signals trustworthiness of firms, based on which stakeholders make decisions such as to trust a firm and allocate valuable, scarce resources. The resources so allocated would help a firm to achieve its objectives, including targeted financial performance in subsequent years. In order to explain the role of trust in the relationship between corporate reputation and subsequent financial performance, the researchers combine two extensively referred models from the reputation and trust literature, the model of reputation-financial performance dynamics and the proposed model of organizational trust. The signaling theory and the stakeholder theory provide the theoretical explanation for the new model proposed.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

Restaurant Employee Service Sabotage and Customer Deviant Behaviors: The Moderating Role of Corporate Reputation

2020 ◽  
Vol 44 (7) ◽  
pp. 1126-1152
Author(s):  
Hsin-Hui Hu “Sunny” Hu ◽  
Hung-Sheng “Herman” Lai ◽  
Brian King
Keyword(s):  
Corporate Reputation ◽  
Relational Quality ◽  
Deviant Behaviors ◽  
Mediating Role ◽  
Service Sabotage ◽  
Using Data ◽  
Hospitality Employee ◽  
The Relationship ◽  
Moderating Role

This article provides a timely exploration of the relationship between hospitality employee service sabotage and customer deviant behaviors in Taiwan. The authors also examine the mediating role of relational quality and the moderating role of corporate reputation. The proposed research framework was tested using data from 226 customers of casual dining restaurants who responded to a questionnaire-based survey that was administered in northern Taiwan. The results indicate that employee service sabotage is positively related to customer deviant behaviors and potentially increases the incidence of the latter. Moreover, the relationship between employee service sabotage and customer deviant behaviors is mediated by relational quality, including satisfaction and commitment. It was found that the relationship between employee service sabotage and customer deviant behaviors is negatively moderated by corporate reputation. Employee service sabotage has less effect on customer deviant behaviors when customers perceive corporate reputation more positively. The study contributes to knowledge by proposing an empirically developed and tested conceptual model that offers an enhanced understanding of the relationship between employee service sabotage and customer deviant behaviors.

Unpacking the black box

2020 ◽  
Vol 21 (6) ◽  
pp. 809-834 ◽  
Author(s):  
Kaveh Asiaei ◽  
Omid Barani ◽  
Nick Bontis ◽  
Maryam Arabahmadi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Content Type ◽  
Knowledge Resources ◽  
Mediating Role ◽  
Strategic Resources ◽  
Structural Capital ◽  
Resource Orchestration ◽  
The Relationship

PurposeDrawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.Design/methodology/approachData was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.FindingsThe results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.Research limitations/implicationsThe focus on Iranian publicly listed companies limits the generalizability of results.Practical implicationsManagers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.Originality/valueTo our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.

scholarly journals Employee Engagement and Perceived Financial Performance: A Serene Insight

2017 ◽  
Vol 10 (12) ◽  
pp. 88
Author(s):  
Y. Anuradha Iddagoda ◽  
Kennedy D. Gunawardana
Keyword(s):  
Sri Lanka ◽  
Job Performance ◽  
Financial Performance ◽  
Employee Engagement ◽  
Wide Spread ◽  
Mediating Role ◽  
Hr Managers ◽  
The Relationship ◽  
Vast Range

Employee engagement encompasses and connects a vast range of management discipline which turns it to be a wide spread concept. The correlation between employee engagement and perceived financial performance has rarely been studied. The intention of this study scrutinizes the connection between employee engagement and perceived financial performance. Based on data extracted from 67 HR managers in the listed companies in Sri Lanka, the study investigates two hypothesized relationships; the relationship between employee engagement and perceived financial performance, and the mediating role of employee job performance on the relationship between employee engagement and perceived financial performance. These ideas initiate important discussion for academics and practitioners.

scholarly journals INNOVATION, PROCESS CAPITAL AND FINANCIAL PERFORMANCE: MEDIATING ROLE OF MARKETING PERFORMANCE (EVIDENCE FROM MANUFACTURING INDUSTRY IN INDONESIA)

2019 ◽  
Vol 7 (1) ◽  
pp. 278-290 ◽  
Author(s):  
Bambang Tjahjadi ◽  
Hanna Miriam Shanty ◽  
Noorlailie Soewarno
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Data Set ◽  
Mediating Role ◽  
Marketing Performance ◽  
The Relationship

Purpose of the Study: This paper aims to investigate the mediating role of marketing performance on innovation-financial performance relationship as well as on process capital-financial performance relationship using the publicly listed manufacturing firms on the Indonesia Stock Exchange (IDX). Methodology: This is a quantitative research employing marketing performance as the mediation variable. A mediation research model is constructed to test the hypotheses of this research using the Partial Least Squares Structural Equation Modeling. A new data set is prepared which involves the publicly listed manufacturing companies on the IDX covering a period of thirteen years from 2005 to 2017. Main Findings: The results of this research provide the following empirical evidence. Firstly, marketing performance partially mediates the relationship between innovation and financial performance. Secondly, marketing performance fully mediates the relationship between process capital and financial performance. Conclusion: This study provides a better understanding of managers regarding the mechanism of how innovation affects financial performance via marketing performance as well as on the mechanism of how to process capital affects financial performance via marketing performance. Application/Implication: This study implies that managers need to continuously innovate, improve manufacturing processes, and enhance marketing management to achieve better financial performance.

scholarly journals Ethical Leadership and Young University Teachers’ Work Engagement: A Moderated Mediation Model

2019 ◽  
Vol 17 (1) ◽  
pp. 21 ◽  
Author(s):  
Jianji Zeng ◽  
Guangyi Xu
Keyword(s):  
Work Engagement ◽  
Ethical Leadership ◽  
Organizational Trust ◽  
Interpersonal Relationship ◽  
University Teachers ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
The Relationship ◽  
Young Teachers

This paper aims to examine the mediating role of organizational trust in the relationship between ethical leadership and young teachers’ work engagement, and the moderating effect of supervisor–subordinate (S–S) guanxi. S–S guanxi is a special interpersonal relationship in Chinese organizations. The sample in this study comprises 205 young teachers from 15 Chinese universities. The results reveal that organizational trust mediates the relationship between ethical leadership and young teachers’ work engagement. Moreover, S–S guanxi strengthens the positive relationship between organizational trust and young teachers’ work engagement, and the indirect effect of ethical leadership on young teachers’ work engagement through organizational trust. Based upon these findings, several theoretical and practical implications are discussed.

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

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