scholarly journals The impact of the gender composition of company boards on firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Teodora-Maria Soare ◽  
Céline Detilleux ◽  
Nick Deschacht
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Policy Reform ◽  
Causal Effect ◽  
Business Case ◽  
Gender Composition ◽  
Negative Effects ◽  
Content Type ◽  
Gender Quota ◽  
The Impact

PurposeThe authors estimate the effect of the gender composition of company boards on firm performance by exploiting variation in the percentage of women after the implementation of a 2011 Belgian policy reform, which introduced a gender quota for listed companies.Design/methodology/approachThe authors analyze the evolution of firm performance between companies that were subjected to the quota law and compare it with the performance of similar firms that were not subjected to the law. This difference-in-difference (DiD) approach allows the authors to avoid the potential bias resulting from unobserved firm characteristics.FindingsThe authors find that the quota policy resulted in the replacement of about one male director by a female one in the average firm between 2010 and 2017. However, this increase in diversity appears to have negatively affected some firm performance indicators. The authors find statistically significant negative effects for 10 out of the 23 financial indicators included in this study, while the other 13 indicators showed no significant effect.Originality/valueThe originality of this research lies in both the methodology and the findings. The policy reform that the authors study can be regarded as a natural experiment so that the DiD method provides estimates of the causal effect of the gender composition of company boards on firm performance. To the best of the authors’ knowledge, this is the first study that presents causal evidence of negative effects of gender quota on organizational performance. These results cast doubts on the business case argument for gender quota and show that results from correlational studies are likely to be biased upward.

Increasing the impact of SHRM on organizational performance

2019 ◽  
Vol 27 (5) ◽  
pp. 7-8
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications ◽  
Overall Effectiveness

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The role of HRM is increasingly being viewed in strategic as well as functional terms. The impact of SHRM on firm performance is also determined by factors in its internal and external contexts. Balance between these contextual dimensions and input from various actors in the organization can help increase the overall effectiveness of a SHRM system. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

New evidence of the relationship between employee satisfaction and firm economic performance

2015 ◽  
Vol 44 (6) ◽  
pp. 906-929 ◽  
Author(s):  
Santiago Melián-González ◽  
Jacques Bulchand-Gidumal ◽  
Beatriz González López-Valcárcel
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Satisfaction ◽  
Performance Outcomes ◽  
Firm Level ◽  
Content Type ◽  
Worker Satisfaction ◽  
The Impact ◽  
The Relationship ◽  
Level Performance

Purpose – Employee satisfaction appears in any discussion about how employees can contribute to organizational performance. The purpose of this paper is to test the relationship between employee satisfaction and organizational performance; this later measured with three firm-level performance outcomes (return over assets, operating margin, and revenue per employee). Design/methodology/approach – At different times and from two independent sources the authors obtained firms’ data about worker attitudes and financial and productivity performance, respectively. The analyzed sample of 475 firms is the biggest among the studies that analyze performance and employee satisfaction at the firm level. The impact of employee satisfaction over firm performance was assessed. Findings – Overall satisfaction and satisfaction with senior leadership, compensation, and work/life balance, respectively impact firm performance. Research limitations/implications – The ratings come from both employees and ex-employees and the individual characteristics were unknown. Additionally as an internet-based sample there has been a lack of control over the individuals’ response process. Practical implications – Managers have evidence about the importance of their employees’ satisfaction on firm performance, and on how the facets involved on worker satisfaction impact the performance. Social implications – Employer review web sites are increasing their popularity. However, unlike the marketing field with consumers HR area has not taken advantage of this trend. The found results may contribute to highlight the importance of this kind of data. Originality/value – Hitherto there is only one empirical evidence about the positive role of worker satisfaction in objective and financial firm level performance. That was based in best-firms type data. The current study draws in a big sample independent of this kind of rankings. Additionally, the job facet satisfaction conceptualization considered demonstrates the usefulness of this way to understand the employee satisfaction.

Knowledge diversity and firm performance: an ecological view

2016 ◽  
Vol 20 (4) ◽  
pp. 671-686 ◽  
Author(s):  
Deng-Neng Chen ◽  
Ting-Peng Liang
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Organizational Performance ◽  
Company Performance ◽  
Content Type ◽  
Knowledge Diversity ◽  
Ecological View ◽  
New Perspective ◽  
The Stability ◽  
The Impact

Purpose Knowledge has been considered a crucial organizational asset for gaining competitive advantages. It is critical for a firm to maintain a knowledge composition that is productive. This study aims to examine the applicability of the diversity–stability principle in ecology to knowledge management and further investigate the impact of knowledge diversity on firm performance. Design/methodology/approach A theoretical framework for knowledge diversity and firm performance is proposed; a questionnaire survey was conducted to evaluate the research framework. Fifty-eight valid responses from experts were collected to measure knowledge strength and diversity of 20 enterprises in four industries, and financial indexes of the 20 enterprises from 2008 to 2012 were collected to analyze the research model. Findings The results show that higher information technology (IT) capabilities in a firm lead to higher levels of knowledge strength and diversity. The strength and diversity of knowledge in a company can improve average company performance and reduce performance variations. Research limitations/implications This paper presents a new perspective that applies the ecological concept of diversity to examine the value of knowledge in organizations. The findings expand our understanding of the role of IT and knowledge in organizational performance. A limitation is that the sample size is relatively small, which may limit the generalizability of the findings. Practical implications CEOs and chief knowledge officers can apply the findings herein to assess their organizational knowledge profiles and maintain a healthy knowledge ecology in strategic planning. They should be aware that both knowledge strength and knowledge diversity are crucial to the stability of firm performance. Originality/value The ecological view of knowledge management stresses the importance of maintaining a healthy intensity and diversity of knowledge at the macro level and indicates a new direction for knowledge management.

Enhancing staff motivation in “tough” periods: implications for business leaders

2014 ◽  
Vol 30 (6) ◽  
pp. 35-36
Author(s):  
Antonios Panagiotakopoulos
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Performance ◽  
Chief Executive ◽  
Business Leaders ◽  
Individual Development ◽  
Content Type ◽  
Long Run ◽  
Long Term Impact ◽  
The Impact

Purpose – The purpose of the paper is to present a viewpoint based on an empirical study conducted by the author, which explored the motivational techniques used by 30 chief executive officers in the context of an advancing economy like Greece that faces a severe financial crisis and evaluated the impact of such motivational tools on staff performance. Design/methodology/approach – The viewpoint is based on a quantitative survey of 30 Greek large organizations involving the leaders of the firms and 113 workers. In all, 143 responses were collected concerning the main motivational techniques used by the participant leaders and their impact on employee behavior. Findings – Overall, the findings showed that in the short-term, both motivational models (i.e. “inspirational” versus “fear”) may lead to effective organizational performance. However, the main difference appears to be related to the long-term impact of each model on firm performance. In particular, the findings indicated that “fear motivation” is more likely to lead to poor firm performance in the long-run compared to “inspirational motivation” due to increased staff absenteeism and turnover. Practical implications – The core implication of the study is that “fear motivation” should be reconsidered by business leaders, as the particular motivational approach adopted has been based on a limited understanding around its overall impact on employee performance. As the analysis revealed, a motivational model focused around empowerment, trust and individual development may lead to better organizational results. Originality/value – It informs the existing management literature about the impact of different motivational patterns on employee performance, where our knowledge is limited.

scholarly journals Intellectual capital and organizational ambidexterity in Chinese and Irish professional service firms

2016 ◽  
Vol 3 (2) ◽  
pp. 94-114 ◽  
Author(s):  
Na Fu ◽  
Qinhai Ma ◽  
Janine Bosak ◽  
Patrick Flood
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Professional Service ◽  
Service Firms ◽  
Organizational Ambidexterity ◽  
Professional Service Firms ◽  
Content Type ◽  
Internal Management ◽  
The Impact

Purpose – Organizational ambidexterity enables firm to simultaneously exploit existing resources and explore new resources. It is associated with high levels of organizational performance. The purpose of this paper is to identify key internal management resources which contribute to building organizational ambidexterity. In particular, this study examines the impact of intellectual capital, i.e. human, social, and organizational capital, on organizational ambidexterity which in turn influences firm performance. Design/methodology/approach – The research was conducted within the context of professional service firms due to the importance of intellectual capital and organizational ambidexterity. Data were collected from 112 Chinese (cross-sectional design) and 93 Irish accounting firms (time-lagged design). Findings – Results provide support for the linkage of intellectual capital to organizational ambidexterity and firm performance. Interestingly, findings are mixed regarding the impact of the three types of capital resources on organizational ambidexterity across both countries. Practical implications – This study finds that various components of intellectual capital facilitate organizational ambidexterity which in turn improves firm performance. Therefore the authors provide managers with evidential support for the salience of intellectual capital in enabling organizations to simultaneously engage in exploiting existing resources while also exploring new ideas and opportunities. Originality/value – This study is unique in that it highlights the importance of internal management resources in building up organization’s ambidexterity capability. The link between intellectual capital and organizational ambidexterity was established using a rigorous research design which has not been done before. It also emphasizes the role of people in leading to organizational effectiveness via developing organizational ambidexterity. Furthermore the evidence is gathered in two countries.

In-work poverty: reversing a trend through business commitment

2019 ◽  
Vol 40 (5) ◽  
pp. 3-11
Author(s):  
Antonios Panagiotakopoulos
Keyword(s):  
Organizational Performance ◽  
Small Firm ◽  
Empirical Work ◽  
Well Being ◽  
Business Case ◽  
Working Poor ◽  
Structured Interviews ◽  
Content Type ◽  
The Impact ◽  
Firm Owners

Purpose This study aims to explore whether employer action may contribute towards reducing in-work poverty. Essentially, the study examines the extent to which small firm owners accept as being among their core responsibilities the support of the working poor both from an ethical and financial perspective. It further explores the impact of employee-friendly policies to support the working poor on the organizational performance of small enterprises. Design/methodology/approach A qualitative approach was adopted consisting of 60 responses from 30 small firm owners and 30 employees. More specifically, the study draws on the empirical data collected through face-to-face semi-structured interviews with the firm owners of 30 low-paying enterprises operating in Greece and 30 employees working in those firms. Findings The findings reveal that employer measures to reduce in-work poverty such as systematic training, travel allowance, provision of free meals and retail vouchers, bonus schemes and other indirect financial rewards do enhance overall employee well-being, which, in turn, makes employees more engaged with their work and motivate them to “go the extra mile” for their employer. As a result, organizations appear to enjoy several benefits including less absenteeism and staff turnover, reduced errors in production and increased productivity. Practical implications The present analysis argues that a narrow focus by policymakers on both direct and indirect governmental measures (e.g. an increase of the minimum wage, childcare and housing support) to reduce in work-poverty could be problematic as there are employer instruments that could also have a direct and indirect impact on employee income that could be useful when thinking about how in-work poverty can best be addressed. The empirical work showed that the above-mentioned measures have the potential to bring various organizational benefits including increased staff loyalty, less absenteeism, improved customer service and increased productivity. Such findings indicate that there is a strong business case for employers to combat in-work poverty and provide “better” jobs to individuals. Originality/value The emphasis of research around in-work poverty has been placed predominantly on welfare state measures to support the working poor, whereas the contribution of employers has been ignored. The present study fills this knowledge gap by leading to a better understanding of whether there is a business case for employers to fight in-work poverty.

Does TMT cultural diversity contribute to firm performance and do socialisation and tenure matter? A test of two competing perspectives

2019 ◽  
Vol 49 (1) ◽  
pp. 324-348 ◽  
Author(s):  
Fang-Yi Lo ◽  
Yue Wang ◽  
Wu Zhan
Keyword(s):  
Firm Performance ◽  
Cultural Diversity ◽  
Transaction Cost Economics ◽  
Positive Impact ◽  
Diversity Management ◽  
Business Case ◽  
Negative Effects ◽  
Content Type ◽  
Cost And Benefit ◽  
Positive Effects

Purpose The purpose of this paper is to establish the effect of top management team (TMT) cultural diversity on firm performance with a framework that considers such an effect from both cost and benefit perspectives. The paper also examines whether and how diversity management mechanisms such as socialisation and tenure may moderate the effect of TMT diversity on firm performance. Design/methodology/approach Drawing upon two competing perspectives of resource-based view (RBV) and transaction cost economics (TCE), this paper theorises and tests the potential positive and negative effects of TMT cultural diversity on firm performance with 442 publicly listed IT companies in the USA. Findings The results supported the RBV prediction that TMT cultural diversity enhances firm performance and socialisation strengthens the positive effects of a culturally diverse TMT on firm performance. However, tenure was not found to be important in promoting diversity gains or mitigating diversity costs. By showing clear support for the RBV prediction of the positive impact of TMT cultural diversity and refuting the TCE prediction of the potentially negative effects, this research strengthens the business case for embracing cultural diversity in TMTs. Originality/value This paper contributes to the current literature by developing a more balanced framework to deepen our knowledge of how TMT cultural diversity may impact firm performance, and how the use of socialisation and tenure may moderate the TMT cultural diversity–firm performance relationship from both cost and benefit perspectives.

The angel-halo effect

2016 ◽  
Vol 28 (6) ◽  
pp. 709-722 ◽  
Author(s):  
Kent Walker ◽  
Zhou Zhang ◽  
Bing Yu
Keyword(s):  
Firm Performance ◽  
Halo Effect ◽  
Market Valuation ◽  
Negative Effects ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect ◽  
Combined Data

Purpose This paper aims to examine how increases in corporate social responsibility (CSR) and corporate social irresponsibility (CSiR) relate to firm performance. Further, this paper investigates how increases in CSR (CSiR) while CSiR (CSR) is present relate to three measures of firm performance: profitability, management efficiency and market valuation. Design/methodology/approach Using over 10,000 observations from 2009-2013 and combined data from Sustainalytics and Compustat, this paper examines how increases in either CSR or CSiR relate to firm performance. Findings The paper finds that increased CSR significantly relates to increased firm performance in all three measures, and that increased CSiR significantly relates to decreased profitability only. Furthermore, increased CSR when CSiR is present relates to increased efficiency and market valuation. Finally, increased CSiR when CSR is present relates to increased profitability and efficiency. The results suggest that CSR dominates the relationship to firm performance, as it was positively related to all three measures of firm performance, and when CSR and CSiR exist simultaneously, CSR has a dominant positive effect. Research limitations/implications The study sample consists of US firms only from 2009-2013, thus the generalizability of the results to other countries and periods is unknown. Practical implications The results demonstrating differing effects based on the measure of firm performance suggest that managers should be specific with which measures are used to gauge the impact of CSR and CSiR. In addition, managers would be wise to invest in CSR, as the results suggest that they can improve profitability, efficiency and market value. Even further, the empirically identified angel-halo effect suggests that investments in CSR may counter any potential negative effects from CSiR. Finally, the latter results suggest that firms can “get away” with some degree of CSiR when CSR is present. Originality/value By examining changing levels of CSR and CSiR independently and conjunctly across various measures of firm performance, this paper found a dominating role for CSR, which is labeled as the angel-halo effect.

The More Control, the Better?

2014 ◽  
Vol 26 (2) ◽  
pp. 81-91 ◽  
Author(s):  
Jeeyun Oh ◽  
Mun-Young Chung ◽  
Sangyong Han
Keyword(s):  
Mixed Design ◽  
Negative Effects ◽  
Story Structure ◽  
Content Type ◽  
High User ◽  
User Control ◽  
Rigorous Research ◽  
Control Versus ◽  
The Media ◽  
The Impact

Despite of the popularity of interactive movie trailers, rigorous research on one of the most apparent features of these interfaces – the level of user control – has been scarce. This study explored the effects of user control on users’ immersion and enjoyment of the movie trailers, moderated by the content type. We conducted a 2 (high user control versus low user control) × 2 (drama film trailer versus documentary film trailer) mixed-design factorial experiment. The results showed that the level of user control over movie trailer interfaces decreased users’ immersion when the trailer had an element of traditional story structure, such as a drama film trailer. Participants in the high user control condition answered that they were less fascinated with, absorbed in, focused on, mentally involved with, and emotionally affected by the movie trailer than participants in the low user control condition only with the drama movie trailer. The negative effects of user control on the level of immersion for the drama trailer translated into users’ enjoyment. The impact of user control over interfaces on immersion and enjoyment varies depending on the nature of the media content, which suggests a possible trade-off between the level of user control and entertainment outcomes.

Business strategy, performance appraisal and organizational results

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Jose Enrique Galdon-Sanchez ◽  
Sara Martinez-de-Morentin
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Performance Appraisal ◽  
Competitive Strategy ◽  
Management Practices ◽  
Robust Regression ◽  
Innovation Strategy ◽  
Content Type ◽  
The Impact ◽  
Developmental Performance

PurposeThe purpose of this study is to analyze how the design of performance appraisal is influenced by the competitive strategy of the firm. Then, this paper examines if the alignment between appraisal and strategy impacts firm performance.Design/methodology/approachThe study sample includes 258 Spanish firms in the manufacturing and services sectors. This information was gathered through questionnaires addressed to the CEO and the senior human resources manager. Several econometric models are estimated, using robust regression analysis and including a set of relevant control variables.FindingsA positive relationship is found between an innovation strategy and developmental performance appraisal. A cost strategy has a negative impact on the adoption of developmental performance appraisal. The findings also confirm that firms with a quality strategy and developmental appraisal have higher performance. In addition, firms adopting an innovation strategy and administrative appraisal enjoy higher return of equity.Research limitations/implicationsFuture research should analyze the dynamics of the relationships between appraisal, strategy and performance to rule out the flaws of cross-sectional data. Another potential extension is the analysis of the interactions of the design of other human resources management practices with both competitive strategy and firm performance.Practical implicationsFirms can improve performance by aligning performance appraisal design with strategy. Those with an innovation strategy should choose administrative appraisal, and those competing on quality should focus on developmental appraisal.Originality/valueThis paper compares the theoretical recommendations on performance appraisal for different competitive strategies, what firms actually do, and the impact that the alignment between appraisal and strategy has on firm performance.

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