Managerial Perception of Human Capital, Innovations, and Performance: Evidence from Banking Industry

This paper aims to examine the relationship between the managerial perception of human capital, innovations, and bank performance. We specifically sought to examine the influence of human capital on bank performance, by introducing the factors of innovation speed and quality. The study was taken in the Serbian banking industry, with the focus on the perception and the viewpoint of CEOs and general managers of different departments. We used a two-phase survey to design the questionnaire and the correlation and regression analyses to examine our hypotheses. Our findings propose that, from managers’ perspective, human capital is critical to the success of banks, and that innovation speed is more influential than its quality. The backward multiple regression model shows that human capital and innovation speed account for 67.5% of the variability of the bank performance. The findings of this research can contribute to bank management policies by revealing how to enhance bank performance by focusing on human capital and innovation agility and readiness. The proposed research model could potentially be implemented in other sectors and industries to hopefully endorse the significance of the detected relationships.

Perception of the Controllability Principle and its Consequences for Budgetary Control

In this study, we empirically examined the following three relationships through quantitative analysis of web-based survey data collected from managers of Japanese firms. First, we examined the relationship between managers’ perceptions of controllability and budget use. Second, we examined the relationship between budget use and altruistic behavior. Third, based on managers’ perceptions of controllability, we examined the relationship between altruistic behavior and managerial performance. Structural equation modeling revealed that not only did perception of low controllability by managers promoted the use of budgeting, it also promoted organizational citizenship behavior through increased trust in superiors, which subsequently enhanced managerial performance. Keywords: managerial perception, controllability principle, altruistic behavior, organizational citizenship behavior, trust, managerial performance

Determining the managerial perception on triple bottom line performance

Purpose The purpose of this paper is to determine managerial perception on social and environmental performance and its effect on financial performance in the Indian banking industry. In addition, the study tests moderating role of gender and experience of bank managers in influencing the association between the constructs. Design/methodology/approach The empirical study is conducted using survey methodology. Responses were collected from 182 bank managers covering the private sector, public sector, foreign, regional rural and cooperative banks. Structural equation modelling technique was used to test hypothesized relationships between the constructs using Smart partial least squares software (3.3.2 version). Findings Results of the study endorse the stakeholder perspective. Bank managers perceive that involvement in socially responsible practices strengthens the relationship between stakeholders and banks, which eventually improves financial performance. Conversely, results indicate that environmental practices by banks do not influence financial performance, thereby sustaining shareholder perspective. Further, results suggest that gender and experience of bank managers are not effective moderators in determining the relationship between the constructs. Practical implications Findings would be valuable for investors to better assimilate social and environmental performance along with its effect on the financial performance of banks. The study would also facilitate policymakers and regulators to outline pertinent policies and rules to uphold financial strength and integrity in the banking industry. Further, bank managers’ perception would have a marked influence on customers’ understanding of social and environmental activities that might shape customer satisfaction, trust, engagement and loyalty. Originality/value The study underscores the eminence of endorsing socially responsible practices in the banks. This would facilitate in improving the sustainability in the Indian banking industry.

Qualitative analysis of effects of managerial perception on open innovation

This paper deals with the aspects of managerial perception and understanding of the success of the open innovation concept and its impact on the sustainability of public institutions. Major French (and global) Agrobiotech Institutes were selected for the qualitative analysis to understand its managers' position in terms of open innovation concept and how it might contribute to the sustainability of the public institutions. Findings indicate that balanced activities of creation of social values and commercialization of the effects are perceptions for sustainability strategy of academicians and managers that were interviewed.

Technology towards hotel competitiveness: Case of Antalya, Turkey

The main goal of the paper is to identify the perception of technology by managers of five-star hotels located in Antalya region (Turkey). The managerial perception in the following contexts is discussed in detail: the enterprise, the employees, the managers and the competitiveness of hotel entities. The selection of such research area was determined by the fact that Antalya is one of the top Turkish tourist destinations, with international profile of visitors and intense hotel competition. The following three types of hotels were investigated: hotels affiliated with international chains, hotels affiliated with national brands and independent enterprises. Furthermore, 12 selected general managers were interviewed regarding the above-mentioned hotel types. The results confirmed that managers of internationally affiliated hotels are more focused on increasing their employees’ skills and competencies compared to managers of independent entities.

Role of managerial perception of competitive pressures in firms' product innovation success

PurposeThis study explores the link between the level of importance managers assign to competitive pressures from domestic competition, foreign competition and customers as factors in the key business decisions related to innovation and the outcome of firms' product innovation efforts.Design/methodology/approachThe research sample is taken from the Business Environment and Enterprise Performance Survey by World Bank (2005). The relevant questions for the study were extracted from the survey. Logistic regression models were used for analysis using the ISLR library from R statistical software.FindingsManagers' consideration of customer pressure for innovation as important in key business decisions related to innovation has a positive and sustainable effect, distinct from that of R&D and other innovative activities, on firms' success of product innovation efforts.Research limitations/implicationsThe research acknowledges the need to verify the findings in a multicountry setting.Practical implicationsThis research can help mediate the managers' assignment of importance to certain types of competition for innovation decisions in multicompetitive environment for improved success of product innovation efforts.Originality/valueSimultaneous consideration of multiple competitive pressures by managers helps to identify the most suitable innovation activities for their respective firms and improve the chances of success of firms' innovation efforts.

Sustainability reporting adoption in developing countries: managerial perception-based determinants evidence from Uganda

PurposeThe aim of the study is to investigate managerial perception-based determinants of the adoption of sustainability reporting (SR) by companies in Uganda.Design/methodology/approachThis study is cross-sectional. Data were collected through a questionnaire survey of 194 companies belonging to the Uganda Manufacturers Association (UMA) and were analysed using multiple regression analysis.FindingsThe findings suggest that lack of expertise, lack of training and negative attitudes/beliefs towards SR are significant and negative determinants of the adoption of SR. The results also show that resources, free training and support and positive attitudes/beliefs towards SR are significantly and positively associated with the likelihood of the adoption of SR. Lack of time, lack of legal requirements and lack of stakeholder pressure are not significant determinants of the adoption of SR.Research limitations/implicationsSince the results are based on a questionnaire survey, they may suffer from issues associated with self-reporting data such as consistency seeking, self-enhancement and self-presentation, which may affect the reliability of the data. Nonetheless, the findings imply that there is a need to sensitise, provide free training and support for companies to engage with SR.Practical implicationsThere is a need to sensitise, train and provide support for free to encourage companies to engage with SR.Originality/valueThis study contributes to the literature on managerial perception-based determinants of the adoption of SR by extending the analyses using a multivariate approach. This enhances our understanding of how the determinants interact to explain the adoption of SR by companies in developing countries.

Managerial perceptions of the strategic relevance of resources and capabilities and its configuration for firm competitiveness: an exploratory study

Purpose Highlighting the important role of managerial action in resource orchestration, the purpose of this paper is to explore how differences in managerial perceptions about the strategic relevance of resources and capabilities influences the resource configurations in SMEs from an emerging economy context. Design/methodology/approach Using a survey-based instrument that was developed by the Global Competitive project (www.gcp.org), the authors identify 62 Mexican SMEs and perform a cluster analysis based on firm size and age and estimate the competitiveness of the SMEs in each cluster. Findings The results of our cluster analysis indeed suggest the existence of four configurations of SMEs based on the managerial perceptions of the value creating potential of the different resources and capabilities at the firms' disposal. The authors find evidence that managerial perception of the strategic relevance of resources and capabilities at a firm's disposal could influence firm-level competitiveness. Managers of firms that perceive high value or importance to the resources and capabilities, considered the ten resource pillars for competitiveness in this study, are also likely to be the most competitive. Research limitations/implications This study is exploratory in nature and intends to provide an initial and more descriptive analysis of SME competitiveness in an emerging economy context. Additionality, the study does not take into account the effect of industry membership. Originality/value The choice of an emerging economy that are often characterized by asymmetric information and informal rules and regulations provides an original context for an understudied area of research in firm-level competitiveness.

Managerial Perception and Organizational Identity: A Comparative Analysis

In this study, the effect of transformational leadership and procedural justice on manager trust and sustainable organizational identity is analyzed, also including the role of mediation on manager trust. First, we analyzed what the effect of transformational leadership and procedural justice on trust in the organization and sustainable organizational identity is. Secondly, we examined the mediator effect on organizational trust, in addition to the effects of transformational leadership and procedural justice on sustainable organizational identity. The sample of the study consists of 558 subjects from Turkey, 106 subjects from Azerbaijan, and 95 subjects from Kyrgyzstan—a total of 759 subjects. To analyze the collected data, we used correlation analysis, regression analyses, and ANOVA testing. For these analyses, we used the SPSS statistical software. The results indicate that transformational leadership and procedural justice positively and significantly affect manager trust. Moreover, manager trust has a positive and significant impact on creating a sustainable organizational identity. The results of the regression analyses further show that in the relationship between transformational leadership and procedural justice with sustainable organizational identity, there is a full effect of mediation on the perception of manager trust. Moreover, there is an indirect relationship among transformational leadership and procedural justice with creating a sustainable organizational identity, and this relationship is established through the perception of manager trust. The results of the study suggest that an efficient way to increase the trust of managers by employees is to increase procedural justice and to follow a transformational leadership style in the workplace. Moreover, it is expected that corporations following these strategies can sustain their organizational identity.

Intellectual Capital Reporting and Disclosure Practices in Sri Lanka

This chapter examines disclosure practices of intellectual capital in the Sri Lankan context. The chapter provides an empirical analysis to showcase the relationship between intellectual capital reporting and the management perception. The three capital components identified in the intellectual capital are human capital, organizational capital, and social capital. Those capitals give a considerable contribution on the wealth of the organization and the main problem is the subjectivity and complexity of the disclosure practices of the listed companies in Colombo Stock Exchange from 2013 – 2016. This study is based on the intellectual capital disclosure practices published in annual reports for the period of 3 years. The managerial perception and company characteristics were linked with the intellectual capital disclosure practices. The study found no common procedure for disclosure among the annual reports while the details of intellectual capital disclosures vary considerably from one annual report to another.