International Journal of Management Practice (10 papers in press)
CSR Activities of a Japanese company operating in India Strong or Weak Sustainability: A theory testing of a Cybernetic Model
by Santosh Basavaraj, Ravi A, Katinka C. Van Cranenburgh, Vikkraman P
Abstract: The first objective of the study is to shed light on the reasons why Toyota in India achieves a high ranking in CSR ratings and the second objective is to determine whether it adopts a strong or weak approach to sustainability.
This study follows qualitative research methodology with the case study approach for the first objective to test the theory of cybernetics model to Toyota case to develop new insights. For the second objective in-depth interviews of CSR stakeholders were carried out by using a structured questionnaire. The results indicates that Toyota would appear to take a holistic, as opposed to a stakeholder approach to its CSR policies, and one that, therefore, adopts strong sustainable business practices. Based on a study of its CSR activities, Toyota is found to follow most of the components of the cybernetic model proposed by Roome (2012). Rather than placing the company at the centre of the stakeholder model, the management of Toyota responds to the requirements of the environment by placing societal development at the top of its list of objectives. The conclusion of this study indicates that Toyota adopts a strong approach to sustainability, while it cannot be claimed unequivocally that the cybernetic approach furnishes a better management model than that of the stakeholder approach in part because this study examines the case of a single company, the paper provides a framework for illustrating the way in which a company might grow in terms of sustainability.
Keywords: Holistic view; Stakeholder approach; Decision making; Cybernetics model; Sustainability; System thinking view.
Explaining User Acceptance and Usage of Social Networking Sites: The role of Trust, Social Connectedness and Visibility in Extending UTAUT2
by Praveena K, Sam Thomas
Abstract: Social Networking Sites (SNS) have become ubiquitous and the numerous sites popping up poses challenges to each site in retaining the user base. Different sites are accepted by different strata of people. Technology acceptance models like TAM, UTAUT,UTAUT2 etc have explained the acceptance of different systems and technologies and these models are extended using contextual variables with new technologies coming into force. This study aims to explain the acceptance and usage of Social Networking Sites with the help of UTAUT2 by adding three variables- Trust, Social Connectedness and Visibility. The result shows that the proposed model explained 66% variation in the usage and 53% variation in explaining the behavioural intention to use social networking sites. Visibility was found to be the main predictor of usage while habit is found to be the main predictor of behavioural intention, followed by Social Connectedness. Further, the model was found to be a better model than the base model UTAUT2 in explaining the usage of SNS. The study adds to the existing literature of theoretical models by providing a comprehensive model in acceptance and usage of SNS.
Keywords: Social Networking Sites; UTAUT2; nested model; Trust; Social Connectedness; Visibility.
Monitoring audit quality and firm resources of audit firm practices in Malaysia: The implementation of ISQC 1
by Takiah Mohd Iskandar, Aida Hazlin Ismail, Zuraidah Mohd Sanusi, Zaleha Abdul Shukor
Abstract: Audit quality is the core of business strategy and key driver of success for audit firms. With the adoption of International Standard Quality Control (ISQC 1), the Malaysian Institute of Accountant (MIA) is enforcing quality control for all audit firms in Malaysia. Semi-structured interviews were conducted for four discussion groups comprised of audit seniors, managers and partners of Big 4 and non-Big 4 audit firms. This research paper reports an exploratory study on the implementation and acceptance of ISQC 1. Results indicate that small audit firms in Malaysia are prepared with the implementation of ISQC 1. However, acceptances vary between the Big 4 and non-Big 4 audit firms. Results also indicate that working experience of the auditors, professional qualifications; education background and on-the-job trainings, and job performance appraisals, do have an effect on audit quality. Hence, the audit firm resources such as human resource characteristics are important in ensuring quality audit work.
Keywords: audit quality; firm resources; ISQC 1; qualitative; auditors; human resource characteristics; Resource-based view theory.
The Profitability of Islamic banking in Sudan
by Entissar Elgadi, Peiyi Yu
Abstract: We investigate the determinants of Sudanese banking performance between 2005 and 2013. Sudan is one of only three countries in the world fully committed to Islamic banking system. The period of investigation is an important period in Sudan involving political changes and financial reform. After following a dual banking system consisting of conventional and Islamic banking between 2005 and 2011, a wholly Islamic banking system was adopted in 2011. We use the return on assets (ROA) and return on equity (ROE) as the performance indicators, while explanatory variables include banks age, size, type, capitalisation, liquidity, credit risk, leverage, operational efficiency, staff expenses, and assets utilisation. We also examine factors which are specific to Islamic banking performance: profit and loss sharing, non-profit and loss sharing and Salam mode of finance. These are all established types of modes of finance upon which Islamic Banking operations are based. We find that ownership, capitalisation and asset utilisation have a positive impact on ROA while operation efficiency, bank age, leverage and specialisation bring an adverse impact. We also find that the Profit and Loss Sharing mode of finance, one of the financial products provided by Islamic banking only, can have a positive impact on both financial performance indicators.
Keywords: Islaamic banking; Profitability determinanats.
Behavioral Biases among SME Owners
by H. Kent Baker, Satish Kumar, Harsh Pratap Singh
Abstract: People are not fully rational and their decisions suffer from errors and biases. Because behavioural finance research focuses on investor irrationality, additional attention should examine managerial decision-making. This study helps to fill this gap by addressing three objectives: (1) to identify whether owners of small and medium-sized enterprises (SMEs) in India are prone toward behavioural bias; (2) to assess the impact of these biases on their decision-making; and (3) to determine whether age, experience, education, and gender affect their propensity to exhibit behavioural biases. Using responses from 154 Indian SME owners, the study uses logistic regression to assess how demographic variables affect behavioural biases. The evidence shows that SME owners are prone to self-attribution, overconfidence, and loss aversion, but not anchoring. Differences exist in the working capital management decisions of owners prone to behavioural biases. Gender, age, and experience significantly affect the propensity to exhibit behavioural biases.
Keywords: Behavioral biases; overconfidence bias; self-attribution bias; loss aversion bias; anchoring bias; working capital management.
The relationship between management team (TMT) metacognition, entrepreneurial orientations and small and medium enterprises (SMEs) firm performance
by Jo Rhodes, Vincent Cheng, Zahra Sadeghinejad, Peter Lok
Abstract: This study examines the impact of top management team (TMT) metacognition on entrepreneurial orientation and firm performance. The result revealed that the mediation effect of 'managing risk' in TMT entrepreneurial orientation has a negative impact on SMEs performance. Hence, TMT in SMEs should focus their strategic decisions on innovativeness and proactiveness rather than high risk projects to remain competitive. Furthermore, the findings further supported that effective behavioural integration of TMT could significantly influence the outcome of TMT metacognition and entrepreneurial orientation. 1500 SMEs were surveyed in this study.
Keywords: TMT; top management team; metacognition; entrepreneurial orientation; behavioural integration; SME performance.
Supply chain process of olive oil industry
by Rupesh Kumar, Surendra Kansara
Abstract: The supply chain in olive oil industry consists of many phases that include olive fruits extraction, processing, packaging, and distribution to consumers. The purpose of this research is to throw the light on olive oil industry supply chain process and its phases prevalent for different countries on the basis of literature. The study identifies important stages with respect to olive oil supply chain process; these are the quality of olive fruits and oil, organising the olive farming systems and throw light on the necessity of consumer's awareness regarding understanding differences in the variety of olive oils. The study likely to help practitioners, researchers, academicians, and managers to get an overview of using multi-criteria decision methods for improving supply chain process of the olive industry.
Keywords: olive fruits; olive oil; supply chain management; quality; multi-criteria decision making.
Impact of leader creativity expectations on employee creativity: assessing the mediating and moderating role of creative self-efficacy
by Muhammad Shahnawaz Adil, Muhammad Nadeem Khan, Imran Khan, Muhammad Asif Qureshi
Abstract: This study analyses the impact of the leader creativity expectations on employee creativity and also investigates whether creative self-efficacy mediates or moderates the positive relationship between leader creativity expectations and employee creativity. A sample of 300 responses is drawn from the employees of the advertising agencies of Karachi (Pakistan) using cross-sectional survey questionnaire administered to them. The responses about employees' creativity are rated by their immediate supervisors. We used variance-based structural equation modelling (SEM) technique with bootstrapping method to test hypotheses. The findings suggest that leader creativity expectations significantly increase employee creativity. In addition, creative self-efficacy does not moderate rather partially mediates the relationship between leader creativity expectations and employee creativity. Managerial implications are also discussed in the context of the advertising agencies of Karachi, Pakistan.
Keywords: leader creativity expectations; creativity; self-efficacy; advertising agencies; PLS-SEM; Pakistan.
A strategic perspective on the implementation of inclusive businesses: the experience of Ecuadorian firms
by Pilar Arroyo, Virgilio Pesantes-Burgos, Lorena Carrete
Abstract: This study analyses the viability of inclusive business models as a strategic corporate social responsibility (CSR) action with the potential to balance business and social objectives. A qualitative approach was used to gather information from leading Ecuadorian firms with visible CSR activities. The strategic CSR framework proposed by Burke and Logsdon was used to analyse whether the inclusive business models used by Ecuadorian firms qualify as strategic opportunities with dual benefits. The case analysis confirms that inclusive businesses are social initiatives that are also recognised as viable business opportunities. However, current projects reproduce the models of leading multinationals and provide only temporary strategic advantages and indeterminate social benefits that are subject to organisational outcomes. The strategic recommendations are compared with empirical accounts to outline a conceptual framework for the implementation and management of inclusive business projects. The framework is oriented towards the achievement of the full potential value of these models.
Keywords: inclusive business; CSR; corporate social responsibility; social value; strategic framework; developing countries; Ecuador; case study.
Exploring the antecedents of marketing-operations interface quality and competitive aggressiveness
by Sumi Jha, Som Sekhar Bhattacharyya
Abstract: The purpose of the study is to develop a model on Marketing Operations Interface Quality (MOIQ) and Competitive Aggressiveness (CA). The model is developed by establishing the relationship between MOIQ and CA with Enacting Organisational Environment (EOE), Management Support (MS) and Human Resource Management Development (HRDM). The study is conducted by a structured survey questionnaire on 413 managers related to manufacturing organisations in India, employed in both private and public-sector firms. The data were analysed using structural equation modelling. The results of the study indicated goodness of fit of the model having independent variables Enacting Organisational Environment, Management Support and Human Resource Management Development. The dependent variables of the model were Marketing Operations Interface Quality and Competitive Aggressiveness.
Keywords: EOE; enacting organisational environment; management support; HRDM; human resource management development; MOIQ; marketing operations interface quality; competitive aggressiveness.