Business: Theory and Practice

Network ties, entrepreneurial creativity and competitive advantage: the moderating role of knowledge integration capability

Ni Made Rai Juniariani — 2024-06-27

This study aims to examine the moderating effect of knowledge integration capability on the relationship between business ties, political ties, and entrepreneurial creativity on competitive advantage. We present the first model that links the ability to integrate knowledge, network ties, and entrepreneurial creativity with the background of MSMEs in Indonesia. This study’s data collection method is a questionnaire survey given to Indonesian MSME entrepreneurs. Meanwhile, 358 questionnaires have been qualified for further processing as part of the random sampling approach used in this study’s sample collection. Additionally, the survey data were acquired through the use of SmartPLS, and the study’s findings indicate that business ties, political ties, and entrepreneurial creativity all favorably impact competitive advantage. Knowledge integration capability reinforces the influence of business ties and entrepreneurial creativity on competitive advantage. But knowledge integration capability is unable to counteract the impact of political ties on competitive advantage. The results complement the literature related to the use of knowledge resources in achieving competitive advantage. Considering the important role of knowledge integration capability in the escalation of competitive advantage in corporations, MSME entrepreneurs are strongly advised to consider the available resource of knowledge. To preserve the competitive advantage, knowledge should be continuously expanded.

Organisational commitment and organisational cynicism as feedback signals: from zero to substantive CSR

Jolita Vveinhardt — 2024-06-27

Corporate social responsibility (CSR) declared by organisations can be understood as a specific signal sent to stakeholders. However, social responsibility can vary from its complete absence to symbolic or substantive CSR. There is still a lack of knowledge on how employee feedback, manifesting itself by organisational commitment or organisational cynicism, varies depending on the nature of CSR and employee seniority. Therefore, this exploratory study examines how organisational cynicism and organisational commitment manifest themselves in organisations in different situations with regard to CSR. The study was conducted in Lithuania, surveying 981 employees from public and private sector enterprises. Organisations are divided into three groups showing the corresponding level of social responsibility: substantive, symbolic and not CSR. Organisational commitment was tested using two different instruments: Organisational Commitment Questionnaire (OCQ) by Mowday et al. (1979) and an instrument created by Allen and Meyer (1990). Organisational commitment (as in the cases of affective, continuance and normative commitment) was the strongest in the substantive CSR group; and the weakest, in the not CSR group. Employee cynicism showed the opposite result. The same consistency was observed separately in the public and private sectors, with stronger commitment and weaker cynicism found in the public sector. Organisational commitment and cynicism demonstrated by employees emerge as reactions to corporate social responsibility and as a kind of feedback signal sent to persons responsible for organisational management. The results are discussed considering the signalling theory, and their implications for practice are highlighted.

Materiality and stakeholder engagement in sustainability reporting: does it matter?

Erwin Saraswati — 2024-07-31

Materiality analysis and stakeholder engagement are crucial processes in sustainability reports which aim to identify material issues and prioritize them based on stakeholder interests. Subjectivity in the process of determining materiality and stakeholder engagement can affect the quality of sustainability reports because management can determine the information to be published and eliminate negative information related to sustainability. This research aims to investigate the influence of board of directors’ activity, presence of independence commissioners, company financial performance, and size on materiality disclosure and stakeholder engagement in mining companies in Indonesia. Content analysis and multiple regression analysis were carried out on 70 sustainability reports. The research results show that the involvement of the board of directors and the quantity of board members have a positive and significant effect, while the presence of independence commissioners and company size do not have a significant effect on materiality and stakeholder disclosure. It is noteworthy that disclosing materiality in sustainability reports is a crucial aspect of business practices, irrespective of the company’s financial status or size. This research contributes to the disclosure of materiality and stakeholder involvement in the reporting of companies operating in Indonesia from the perspective of stakeholder theory and legitimacy theory.

Trends and evolution of agile branding: a bibliometric analysis

Michaela Pöhlmann — 2024-07-31

As today’s environment constantly changes, scientific and practical literature suggests that brands must be managed more agilely. Agile branding, characterized by stakeholder involvement, adaptability, and flexibility, emerges as an innovative approach for companies to navigate dynamic markets to ensure that they remain sustainably relevant and competitive. Yet, no bibliometric analysis has been conducted on agility related to branding to date. This paper aims to illustrate and analyze the trends and evolution of agile branding by applying bibliometric methods to the scientific article literature produced between 1996 and 2023. The results of a systematic literature review are presented, and the findings of the bibliometric analysis of 70 publications listed in the Web of Science Core Collection database are evaluated. Furthermore, visualization and interpretation of bibliometric networks related to citations and publications, publication titles, keywords, authorship, and affiliations with the software VOSviewer is included. This bibliometric analysis shows that the number of scientific studies on agility related to branding has increased mainly since 2008, reaching its peak in 2022, indicating a growing research interest. The study reveals that much more research needs to be conducted on how brands can be managed more agilely and dynamically to compete in a fast-moving world.

Fostering performance management by identifying key performance indicators for human capital in integrated reporting

Kristine Uzule — 2024-08-26

Human capital is widely recognized as a pivotal factor in driving economic development and ensuring the sustained success of organizations. In efforts to enhance transparency in reporting and elucidate the mechanisms through which organizational value is generated, businesses might turn to the integrated reporting framework, encompassing six key capital dimensions, including human capital. However, a notable gap exists in the standardization of essential performance indicators within this framework. Therefore, the primary aim of this research was to identify the fundamental concepts underlying key performance indicators specific to human capital within integrated reports. These identified indicators not only enhance the usability of integrated reporting frameworks but also resonate with the perspectives of economic theory on human resource management, delving into various facets of employee performance and well-being. Moreover, the study delved into how transformational and benevolent leadership styles can harmonize with both the integrated reporting framework and the suggested key performance indicators of human capital, offering insights into effective organizational management and sustainable value creation.

Exploring the relationship between perceived organizational support and affective commitment among Saudi employees: the mediating effect of organizational trust

Abdallah M. Elamin — 2024-08-27

Despite the acknowledged importance of perceived organizational support (POS), organizational trust (OT), and affective commitment (AC) for favorable organizational outcomes, relatively little is known about the processes that underlie these various associations, especially in Islamic, Arabian Middle Eastern contexts. This study aims to address this gap by exploring the relationships between POS and AC, and testing the mediating effect of OT in the Kingdom of Saudi Arabia (KSA). This study conducted a survey of 347 Saudi employees from a wide range of organizations, occupations, and industries and performed a hierarchical regression analysis. The results provided evidence of the validity of the three relevant constructs (POS, OT, AC) and the generalizability these constructs have outside of North American samples. It also indicated that POS is a significant predictor of OT, and both POS and OT were significant determinants of AC. The study also revealed that OT partially mediates the relationship between POS and AC. The findings contribute to a better understanding of the POS-OT-AC link in the Islamic Arabian context of the KSA. This study is among the first to test the mediating effect of OT on the POS-AC relationship, aiding the understanding of the indirect relationship between POS and AC.

Does conditional cash transfer deliver? The Indonesian evidence on PKH

Adrianus Kabubu Hudang — 2024-09-03

Social protection programs aim to secure individuals’ incomes from socioeconomic shocks and provide access to social services for developing human capital and alleviating poverty. In Indonesia, the Family Hope Program (PKH – Program Keluarga Harapan) is a social protection program that focuses on human capital development that requires children’s school enrollment and mothers and toddlers’ health as the conditions of cash transfers. This study seeks to analyze the effects of the PKH program on consumption expenditure, children’s educational attainment, and prenatal visits in Indonesia. We use the 2007 and 2014 IFLS (Indonesian Family Life Survey) survey data analyzed by the difference-in-difference (DID) method. The results demonstrate that PKH has a significantly positive effect on food consumption expenditure. However, PKH has insignificantly negative effects on children’s educational attainment and prenatal visits. The results suggest that the government monitors and ensures that the targeted recipients receive the program’s benefits. As such, the government can enhance the recipients’ awareness of the program’s benefits and ensure the equal availability of supporting infrastructure that enables households to utilize education and health facilities optimally.

How organizational citizenship behaviors promote job performance: evidence from the aviation industry

Bui Nhat Vuong — 2024-09-19

In the 21st century, the working environment is changing rapidly, and competition is fierce. In industries such as airlines, it is crucial to identify the factors that drive employee performance. This study aims to determine the elements of organizational citizenship behaviors (OCBs) that have an impact on work performance. A mixed research method was employed for the study, which collected survey data from 195 employees of ground service companies in Vietnam, including Saigon Ground Service Company (Sags), Vietnam Airport Ground Service Company (Viags), and Hanoi Ground Service Joint Stock Company (Hgs). The results revealed that five factors of OCBs affect job performance, ranked in descending order: (1) Voice-speaking up about concerns, (2) civic virtue, (3) conscientiousness, (4) courtesy, and (5) altruism. The study also proposed some implications for managers of ground service companies to enhance their employees’ job performance.

Dynamic capabilities facilitate the use of technology to promote organizational ambidexterity

Tyna Yunita — 2024-09-26

The organizational ambidexterity of commercial banks has been the subject of recent research. As a novelty, research has yet to be conducted on the banking sector in a dynamic environment. This study’s goal is to identify the variables that affect ambidextrous banking. The research methodology uses quantitative techniques with six constructs: organizational ambidexterity (OA), dynamic capability (D-CA), organizational culture (O-CU), human capital (H-CA), and technological capacity (T-CA) with moderator environmental dynamism (E-DY). The research questionnaire was measured using seven Likert scales, and the data was processed using structural equation modeling and Smart PLS software. The results of all hypothesis tests are as follows: First, technological capacity, organization culture, and dynamic capability have a positive effect on organizational ambidexterity. Second, technological capacity, human capital, and organizational culture have positive results for a positive effect on dynamic capability. Third, the moderating effect of E-DY on the relationship between T-CA and OA has a negative and significant impact. Fourth, the moderating effect of E-DY on the relationship between O-CU and OA is insignificant. Fifth, the moderating influence of E-DY on the link between dynamic capability and organizational ambidexterity has a positive and significant impact. This study will contribute to the theoretical aspect by enriching the theory that human resource management, technological capacity, organizational culture, and dynamic capabilities are essential in organizational ambidexterity.

The factors impacting employee commitment to organizational change

Vaida Petrauskaitė-Jocienė — 2024-09-27

In the financial sector, the need for organizational change is impacted by the consequences of pandemic, changes in consumer needs, competition, climate change, and increasing number of financial technology start-ups. The banks play a vital role in the economies of countries, so the changes taking place in them are undoubtedly important, and the commitment of employees to change is considered a necessary condition for the successful implementation of change. However, the studies, investigating how different factors contribute to the employees’ commitment to change in the Lithuanian banking sector, are scant. Therefore, the aim of this article is to determine how transformational leadership style, organizational change goals, communication quality, and certainty affect employees’ commitment to change in banking sector organization. The results of the study demonstrate that transformational leadership style, quality of change communication, clarity of goals, and certainty increase employees’ commitment to change, and transformational leadership style increases employees’ commitment to change by acting as a mediator between organizational communication, clarity of organizational change goals, and other information that increases employees’ feeling of certainty. The findings provide insights for managers who want to support employees and seek the success of organizational changes.

Peculiarities of online user’s content search in the context of inbound marketing

Sigitas Davidavičius — 2024-09-30

The article addresses the issue of the distribution of users browsing the internet for content in a specific format through alternative content delivery channels in the context of inbound marketing. The problem being addressed is part of a broader problem with the formation of traffic to an organization’s website. The theoretical part of the work presents the concept of inbound marketing and analyzes the theoretical aspects of its tactical activities, such as content marketing, search engine marketing, and social media marketing. Based on the theoretical research, the scientific hypothesis is formulated – there are links between the desired content format and the choice of content search and consumption channel. The research methodology consists of data collection by survey method and hypothesis testing using Cochran’s Q test. Empirical research has shown links between the content format sought and the channels for searching and consuming content. Although in almost all cases the search for video and audio content is dominated by search engines, evaluating other content delivery channels reveals a significant specialty of users’ web browsing.

Influencing factors on sustainability reporting quality based on sustainable development goals (SDGS) considering COVID-19

Wiwi Idawati — 2024-10-07

In 2020, the major companies in the Asia Pacific region faced challenges in sustainability performance reporting, primarily attributed to disruptions caused by the COVID-19 pandemic. This crisis compelled companies to reassess their sustainability goals. This study aims to analyze the relationship between corporate governance and corporate characteristics such as industry type and government ownership of sustainability reporting quality based on sustainable development goals (SDGs) with a population of 200 companies in ASEAN countries, including Indonesia, Malaysia, Thailand, and the Philippines, listed on each country’s stock exchange. The research sample consisted of 84 companies selected through purposive sampling. The hypothesis testing model employed a multiple linear regression method and utilized the panel data regression analysis approach. The findings indicate that the three corporate governance components examined in this research board independence, audit committee, and managerial ownership, along with government ownership do not exert a significant influence on sustainability reporting quality based on the seventeen SDGs goals. Furthermore, we believe that this research is very important to be carried out in Indonesia, given that environmentally sensitive industries face the risk of environmental damage and therefore need legitimacy to maintain their operations, demonstrated through sustainability report reporting.

Financial literacy as an important aspect in the area of business sustainability: the case of Slovak Republic

Eva Kicová — 2024-10-10

The essence of literacy is currently understood on a broader level. Emphasis is placed on functional literacy, which also includes financial literacy. Its level significantly affects a person’s standard of living. In the contribution, we are devoted to the investigation of this issue and the possibilities of increasing the level of financial literacy in the Slovak Republic. We will use theoretical and empirical scientific methods. We work with analysis, synthesis, induction, and deduction. Subsequently, empirical scientific techniques that work with concrete data and precise methods to achieve results will be used. In addition to explanatory methods, interpretative methods will also be used. According to the level of financial literacy of respondents based on the interview method, hypotheses are established. An analysis of individual answers and an analysis of the impact of financial literacy on young people’s interest in entrepreneurship will be carried out. The findings led to the definition of practically oriented conclusions, with an emphasis on the assessment of the level of financial literacy. Attention is also paid to incentives for young entrepreneurs. All proposals written in this chapter are designed with the intention of improving the level of financial literacy in Slovakia.

Does the adoption of extensible business reporting language impact the quality of financial reporting? The mediating role of the e-disclosure system

Yaser Saleh Al Frijat — 2024-10-22

The study aimed to demonstrate the mediating role of the e-disclosure system (E-DS) in the relationship between the extensible business reporting language (XBRL) and the quality of financial reporting (FRQ), for the Jordanian companies listed at the Amman Stock Exchange (ASE). This study uses AMOS to perform structural equation modelling to analyze the data; survey data was gathered from 284 respondents working across various industries and sectors listed at the ASE; 229 usable responses were received. This study finds that XBRL is positively associated with the FRQ. Further, it is found that E-DS positively influences FRQ and plays a mediating role in the connection between XBRL and FRQ. The results of this study are expected to be of high quality regarding the preparation and presentation of financial statements by XBRL. Also, the study’s findings make original contributions to developing countries other than Jordan, which are expected to benefit.

Risk-based regulation and supervision of second-tier banks: experience of EU countries

Gulzhan Alina — 2024-10-25

The aim of the study was to determine the impact of increased capital adequacy standards of second-tier banks on their performance. The study is based on second-tier banks of EU member states, as these countries are the first to implement the Basel Committee recommendations, so their experience should be studied and taken into account when building risk-based regulation of second-tier banks of Ukraine and Kazakhstan. The study covers the period of 2009–2022, as the Basel III regulations were adopted after 2008, and they began to operate for the second-tier banks of EU member states in 2013. The study was conducted using econometric modelling with an analysis of the dependence of banking indicators on the capital structure established by Basel III. Functional interrelationships of the dependence of Net Interest Income, Profit, Return on Assets, Return on Equity, Risk Costs to Operating Income were tested. The impact of capital adequacy requirements on the performance of second-tier banks was determined: capital adequacy requirements have a positive impact on net interest income and profit of second-tier banks. The obtained results can be used to substantiate increasing capital adequacy requirements to increase the reliability of the banking system as an element in the system of factors of economic growth of the national economy.

The factor of war as a threat to sustainable development and a challenge for corporate social responsibility

Svitlana Korol — 2024-10-28

The purpose of the study is to analyze the practice of involving multinational companies in achieving the Sustainable Development Goals (SDGs), in general, and the response to SDG 16 “Peace, Justice and Strong Institutions”. The research methodology involves a comparative analysis of the attitude towards the SDG leaders of sustainable development and MNCs that currently continue to work on the Russian market is presented. The conducted research showed that MNCs mostly recognize their impact on achieving SDG 16, but at the same time (1) they put it at a medium or low priority level; (2) emphasize justice and strong institutions. As a result of the study, it was proven that the existing approach to assessing the level of achievement of SDG 16 does not take into account modern conditions of warfare and needs to be revised. The novelty of the study lies in the further development of scientific approaches to assessment of international business contribution to SDGs achievement and promotion of sustainable peace, opposition to military aggression, as well as substantiating the need to change approaches (criteria) to assessing the achievement of SDG 16.

Employees’ work–family enrichment in leadership context: systematic review and meta-analytical investigation

Tadas Vadvilavičius — 2024-11-07

The aim of this study is to systematically summarize and analyse the relationship between work-family enrichment/family-work enrichment and family-supportive supervisor behaviour. A systematic literature review procedure was applied to search and review articles in EBSCO Academic Ultimate (EBSCO), ScienceDirect, Web of Science, and Google Scholar. Fifteen papers were included. The systematic literature review mostly revealed the relationship between general work-family enrichment/family-work enrichment and family-supportive supervisor behaviour scores. To provide a summary of the results, a random effects model was employed for statistical analysis. The meta-analytic results revealed a moderate positive relationship between family-supportive supervisor behaviour and work-family enrichment, as well as between family-supportive supervisor behaviour and family-work enrichment. Furthermore, the results indicated that age and gender did not moderate these relationships. Recommendations for future research and practice are discussed. It is important to note that the main limitation of this review is the use of only general scores of family-supportive supervisor behaviour and work-family enrichment/family-work enrichment. This study is valuable because of providing summary of scattered data and reveals clearer relationship between family-supportive supervisor behaviour and work-family enrichment.