Impact of the perception of performance appraisal practices on individual innovative behavior

PurposeThe purpose of this paper is to analyze the impact of employees’ perception of performance appraisal (PA) practices on innovative behavior (IB). The authors also propose to analyze consistency, a dimension of Human Resource Management (HRM) system strength, as a moderating variable in the aforementioned relationship.Design/methodology/approachA quantitative study was conducted, using a sample of 166 employees carrying out highly qualified, intensive knowledge jobs in four industrial companies in the Valencian region of Spain. The hypotheses were tested by applying the Smart-PLS 3.2 software.FindingsThe findings confirmed that in a context of professional and qualified work, PA practices have a direct and positive effect on IB. However, the results obtained did not enable us to affirm that employee perceptions of the consistency of the HR system moderated the relationship between PA and IB.Originality/valueThe paper’s originality lies in including the role of consistency, a dimension of HRM system strength, in the analyzed relationship. When employees believe that PA achieves the goals for which this practice was designed, and that this appraisal follows a clear strategic direction over time, they perceive that the assessment system is not arbitrary, i.e., that this HR practice is being applied consistently. Consequently, the present work shows the relevant role of the perception of consistent PA when the firm wants to encourage IB. This fact opens up the field to study how to define and implement control mechanisms that tell managers whether there is a fit between employees’ perceptions and the intentionality of the HRP these managers have defined.

The path to sustainability

Purpose Climate change has become an increasingly important issue globally, and organisations are being urged to be more carbon friendly by taking initiatives to reduce carbon emissions in their business operations. The purpose of this paper is to examine the extent to which climate change has been addressed and the influence of financial strength and corporate governance structure on the disclosure of carbon information. Design/methodology/approach The research process consists of an investigation via content analysis of the annual and sustainability reports of the top 100 public-listed companies in Malaysia for the year 2017. Findings The results of the study revealed that carbon information on carbon emissions accounting had the highest disclosure and that climate change risks and opportunities had the lowest disclosure. The results of the multiple regression analysis revealed that profitability is positively significant with carbon disclosure while leverage is negatively significant. However, the governance structure does not seem to have any influence on the disclosure of carbon information. Research limitations/implications The conclusions drawn from the study must be interpreted with caution as the sample companies only comprise of the top 100 public-listed companies in Malaysia to provide an initial insight into the situation in Malaysia. Furthermore, the interpretations and conclusions drawn from this study are based solely on a cross-sectional analysis of the data for only one year. Practical implications This finding is a significant contribution to regulatory bodies and policymakers regarding the drivers of climate change initiatives in an emerging economy such as Malaysia. This finding suggests that in the Malaysian setting, financial structure influence decisions on climate change initiatives. Social implications The commitment by business leaders of the impact on climate from the production processes would contribute towards a low carbon economy and subsequently improve the quality of life of the community. Originality/value The findings of the study provide insight of the business attitude towards climate change in an emerging economy such as Malaysia.

Local Development Platforms (LDP): an operational framework for business development

Purpose The purpose of this paper is to present a conceptual model of business development that provides operational ways to increase the competitive presence of more micro and small ventures (both actual and new) in enlarged markets, including international ones. Design/methodology/approach The paper develops a conceptual model starting from the identification of the most usual constraints limiting the SMEs and entrepreneurship development and success. After this stage, the model was built with the help of selected concepts, which represent a theoretical framework of support. Findings Regarding the universe of SME and entrepreneurship, the authors usually find some weaknesses: markets mainly local/regional, absence of growth, cooperative networks and/or international operations, because of several usual constraints: limited competences and resources, absence of critical mass on buying/selling and difficulty to cooperate. These shortcomings represent an economic waste when there are competitive offers and/or endogenous resources. Research limitations/implications The model will be applied in a Portuguese county, in this way the authors expect to make an empirical research in the near future. Practical implications The model surpasses the, usual, limited skills of people and organisations betting in their competitive specialisation, with the assumptions that few people can be successful entrepreneurs/managers, but quite everyone can perform something competitively. The organisation/structure – Local Development Platform (LDP) – has the responsibility to assure the competitiveness of value chains built over networks of these agents. Additionally, the LDP should provide collective resources to lower the investments and operational needs of the agents involved, provide the added value services necessary for offers and agents’ competitiveness, achieve critical mass on buying and selling and enlarge/open new markets. These resources are organised in up to five specialised platforms, to service a strategy structured along five axes of development. Social implications With this model, it is possible to increase the levels of employment and welfare. Originality/value A practical/operational integrated model able to be applied in different contexts will help private and public agents to define and implement strategies of development to enable the growth and success of SMEs and entrepreneurial initiatives in the international markets context.

Anthropomorphized vs objectified brands: which brand version is more loved?

Purpose The purpose of this paper is to deal with the role of the human metaphor (anthropomorphism) and consumers’ liking for the humanized version of the brand as antecedents of three key components of brand love: self-brand integration, positive emotional connection and feelings of anticipated separation distress. Design/methodology/approach A sample of 399 consumers provided information about a brand from a stated list of 16 brands of clothing. Findings Both anthropomorphism and consumers’ liking for the humanized brand have positive effects on specific components of brand love. The results confirm that brand anthropomorphism is only desirable when the humanized version of the brand is attractive for consumers. Research limitations/implications A potential shortcoming is the qualitative technique employed to observe anthropomorphic thought. Collecting ratings of anthropomorphic and non-anthropomorphic traits could be viewed as a method more easily applied in market research surveys. Practical implications Managers have to control how consumers imagine the brand as a human entity because it affects brand love. For example, by tracking consumers’ opinions and traits of those people associated with the brand and brand user stereotypes can condition consumers’ imagination of the humanized brand. Originality/value Compared to the limited number of studies about the relationship between anthropomorphism and brand love, this study focuses on the effects of anthropomorphism as a process, and not as a personal trait, on brand love. It also relies on consumers’ imagination instead of brand personification strategies to stimulate anthropomorphism.

Predictors of knowledge transfer between expatriates and host country nationals

Purpose The purpose of this paper is to investigate the influences of cultural intelligence, feedback-seeking behavior and shared vision as a mediator on bi-directional knowledge transfer involving expatriates and host country nationals (HCNs). Design/methodology/approach This paper integrates the signaling theory, the social capital theory and the anxiety and uncertainty theory in investigating the relationships between predictors and knowledge transfer in a bi-directional manner. The participants of the study were 125 expatriate-HCN pairs of MNCs and local organizations in the areas of Klang Valley, Malaysia. Findings Shared vision was found to significantly mediate the influences of cultural intelligence and feedback-seeking behavior on knowledge transfer as perceived by the respective respondents. Originality/value Co-existence between expatriates and HCNs leads to many organizational outcomes including knowledge transfer. This paper additionally provides theoretical and practical implications to human resource practices.

Macroeconomic determinants of credit risks: evidence from high-income countries

Purpose The purpose of this paper is to empirically assess the significant indicators of macroeconomic environment that influence credit risk in high-income countries. Design/methodology/approach The study employs the system generalized method of moments estimator to avoid the dynamic panel bias and endogeneity issues. Different indices of economic growth are used in each model in order to find the most significant proxy of the economic cycle that influences problem loans. The analysis is carried out using a sample of 49 developed countries covering a 16-year period (2000–2015). Findings The overall empirical results highlight that the development of industrial sectors and exports are the main drivers of loan performance in high-income countries. The findings specifically recommend adopting an expansionary fiscal policy to boost per capita income and potential productivity for the safety of the banking system. Practical implications The findings have direct practical applicability for stabilizing the financial system. The study recommends the government to increase the productivity of export-oriented industries in order to boost employment and increase the payment obligations of individuals and business firms. More importantly, it highlights the essentiality of perfect economic policy to control default risks. Originality/value To the best of the authors’ knowledge, this is the first empirical study that compares the relative effect of three alternative proxies of the economic cycle on credit risk and identifies the most significant proxy. The current study also empirically shows that industrial development could be one of the crucial factors to improve financial health in developed countries.

Is the rest of the EU missing out on REITs?

Purpose The purpose of this paper is to investigate whether real estate investment trusts (REITs) have any significant cost-efficiency advantages over real estate operating companies (REOCs). Design/methodology/approach The data for listed companies were extracted from the Bloomberg terminal. The authors analyzed financial ratios and conducted a non-parametric data envelope analysis (DEA) for 534 firms in the USA, Canada and some EU member states. Findings The results suggest that REITs were much more cost-efficient than REOCs by all the parameters in the DEA model during the entire three-year period under consideration. Although the debt-to-equity levels were similar, REOCs were more relying on short-term than long-term maturities, which made them more vulnerable against market corrections or shocks. Being larger in asset size did not necessarily guarantee greater economies of scale. Both – the cases of increasing economies of scale and diseconomies – were detected. The time period 2015–2017 showed the general trend of decreasing efficiency. Originality/value Very few papers on the topic of REITs have attempted to find out whether a different firm structure displays any differences in efficiency. Because the question of REITs and sustainable growth of the real estate market has become a prominent issue, this research can help EU countries to consider the option of adopting a REIT system. If this system were successfully implemented, the EU member states could benefit from a more sustainable and more rapid growth of their real estate markets.

Brand authenticity leads to perceived value and brand trust

Purpose This paper investigates consumer perceptions of brand authenticity (BA), perceived value (PV) and brand trust (BT) into the context of craft beer market. The purpose of this paper is to examine the statistical associations between these constructs as well as the three antecedents of BA: individuality, consistency and continuity. Design/methodology/approach The survey, delivered in an online format, was completed by 749 respondents from the USA. These respondents were gained through a basic simple random sampling technique. After conducting data analysis techniques such as reliability, correlation and regression, all five research hypotheses were accepted. Findings All three antecedents of BA were found to have significant influence on the first-order construct. Also, BA was shown to have a substantial effect on both PV and BT. The relationship between brand individuality and BA was the most significant of the five, while the association between BA and PV was found to be the least significant. Originality/value Prior research on BA, the majority of which has involved a qualitative approach, has been severely limited. The authors’ work deepens the study of the effects of BA, or its various antecedents, on PV and BT, enhancing the research with an empirical, quantitative analysis. In addition to the shortage of investigation related to these factors, there has been a nearly complete absence of the application of these variables to the craft beer market.

Do Islamic stock indexes outperform conventional stock indexes? A state space modeling approach

Purpose The purpose of this paper is to investigate whether Islamic stock indexes outperform conventional stock indexes, in terms of informational efficiency and risk, during the recent financial instability period. Design/methodology/approach The paper uses a state space model combined with a standard GARCH(1,1) specification while taking into account structural breakpoints. The authors allow for efficiency and volatility spillovers to be time-varying and consider break dates to locate periods of financial instability. Findings Empirical results show that Islamic stock indexes are more volatile than their conventional counterparts and are not totally immune to the global financial crisis. As regards of the informational efficiency, the results show that the Islamic stock indexes are more efficient than the conventional stock indexes. Practical implications Resulting evidence of this paper has several implications for international investors who wish to invest in Islamic and/or conventional stock markets. Policy makers and even academics and Sharias researchers should as well take preventive measures in order to ensure the stability of Islamic stock markets during turmoil periods. Overall, prudent risk management and precocious financial practices are relevant and crucial for both Islamic and conventional financial markets. Originality/value The originality of this study is performed by the use of time-varying models for volatility spillovers and informational efficiency. It considers structural break dates that think about the dynamic effect of informational flows on stock markets. The study was developed in a global framework using international data. The global analysis allows avoiding country specific effects.