Willingness Of Companies Research Articles

Are digital trends driving corporate environmental, social, and governance practices? Evidence from China

AbstractThis paper aims to explore whether the trend of digital transformation is driving companies to engage in environmental, social, and governance (ESG) practices. The impact of strategic transformation on firms is all‐encompassing, making it difficult to capture the mechanisms of impact on corporate ESG practices. To this end, we construct a new theoretical framework that combines slack resources and stakeholder theory. This framework attributes the heterogeneity of ESG practices to differences in the ability and willingness of companies. Using data from Chinese listed companies, we find that the digital transformation is improving ESG performance. The mechanism is that digital transformation increases the availability of long‐term slack resources and strengthens the connection with stakeholders. However, there is insufficient evidence that digital transformation contributes to greater transparency in corporate disclosure. We also find that this effect is larger for firms with less risk‐responsiveness and firms with international connections, but smaller for firms with political connections. Our findings affirm the advantages of contemporary trends in corporate digital transformation for ESG practices and offer a new theoretical framework to investigate the factors influencing ESG practices.

Machine learning tool for the prediction of electrode wear effect on the quality of resistance spot welds

The quality of resistance spot welding (RSW) joints is strongly affected by the condition of the electrodes. This work develops a machine learning-based tool to automatically assess the influence of electrode wear on the quality of RSW welds. Two different experimental campaigns were performed to evaluate the effect of electrode wear on the mechanical strength of spot welds. The resulting failure load of the joints has been used to define the weld quality classes of the machine learning tool, while data from electrode displacement and electrode force sensors, embedded in the welding machine, have been processed to identify the predictors of the tool. Some machine learning algorithms have been tested. The most performing algorithm, i.e., the neural network, achieved an accuracy of 90%. This work provides important theoretical and practical contributions. First, the decreasing thermal expansion of the weld nugget as the electrode degradation advances results in a strong correlation between the difference of the maximum displacement value and the last value recorded during the welding and the relative failure load. Then, this work offers a practical decision support tool for manufacturers. In fact, the automatic detection of low-quality welds allows to reduce or eliminate unnecessary redundant welds, which are performed to compensate for the uncertainty of electrode wear. This leads to savings in time, energy, and resources for manufacturers. Finally, general recommendations for the timing of redressing or replacing the electrode are provided in the manuscript based on the company willingness to accept some non-compliant welds or not.

PENGARUH FEE AUDIT DAN UKURAN PERUSAHAAN TERHADAP TAX AVOIDANCE

This quantitative research focuses on examining the impact of audit fees and firm size on tax avoidance. Secondary data, specifically financial reports published on www.idx.co.id, is utilized for this study. The population consists of mining companies, and purposive sampling is employed to select a sample of 138 companies. The analysis is conducted using the e-views software. The results indicate a positive and significant influence of audit fees on tax avoidance. A high audit fee does not imply a company's willingness to comply with tax regulations, but rather companies aim to minimize potential fiscal correction effects that may inflate profits. Proactive measures are taken to mitigate the impact, ensuring that the taxes paid are not excessively high. Additionally, firm size shows a positive and significant impact on tax avoidance

SOEs' commitment to transparency: Voluntary disclosure as a driver of mandatory disclosure

AbstractNon‐compliance with transparency obligations among publicly owned enterprises has revealed the lack of coercive capacity of the legislation. In this context, literature suggests that mandatory disclosure becomes a matter of company willingness, but this has not been empirically tested so far. Drawing on Oliver's (1991) typology of organizational strategies and studies on normativity production, this study analyzes whether voluntary disclosure levels of financial and non‐financial information determine compliance with transparency legal requirements for the case of Andalusian state‐owned enterprises (SOEs) owned by local and regional governments. We have verified this question using linear regression analysis. The analysis proves that when transparency legislation lacks enforcement power, the level of voluntary disclosure determines the level of legal compliance. Both voluntary and mandatory disclosure levels are explained by the same determinants, suggesting that disclosure is determined by reasons of legitimacy and commitment to transparency. This contributes to the research lines on normativity and transparency in SOEs, being also relevant for lawmakers. This study provides evidence for Oliver's (1991) theoretical arguments about firms' strategies in the face of institutional pressures. It offers policy‐makers and SOE managers an insight into how prepared SOEs are to respond to the demands for greater transparency.

부분육 온라인 거래소 참여 및 거래량 결정요인

To revitalize the wholesale market function, the government intends to establish an online livestock product exchange platform, promoting online trading for cuts of meat. We surveyed 110 meat processing companies nationwide to assess factors affecting the willingness to participate in online trading of cuts of meat and trading volume, using the sequence of Heckman, Logit, and Tobit models. Favorable online trading experience, short operation time, limited workforce, and minimal meat procurement boosted the willingness to participate in the online trading. High carcass auction satisfaction and distribution/sales challenges also increased the willingness to participate and transaction volume. This implies that a company's willingness to engage in the online trading of cuts of meat may be influenced by its perception of challenges stemming from a lack of experience in livestock product auction and variations in the company's size and business history.

The courage to venture: Revealing the effect of social trust on corporate venture capital.

In an uncertain and risky business environment, the decision for corporate venture capital (CVC) often requires courage and determination. This article empirically examines the relationship between social trust and corporate venture capital based on CVC data from Chinese companies spanning from 2006 to 2018. The findings reveal that social trust significantly positively influences a company's willingness and scale of involvement in venture capital. Further analysis highlights the variations in social trust effects under diverse governance environments, particularly in non-state-owned firms and firms with separate CEO and chairman roles. Meanwhile, in regions characterized by a more developed market environment and a robust legal framework, social trust demonstrates a more pronounced motivating effect. Moreover, social trust fosters innovation within CVC deals. Focused on emerging markets, this research delves into the significance of informal institutions in incentivizing corporate innovation and venture capital, offering a fresh perspective on the driving forces behind CVC.

Improvement of Strategic Investment Decision Making Process in Petrochemicals Industry

Joint ventures, commercial conglomerates, and public-private partnerships must go through various stages of planning prior constructing mega-petrochemical projects. One of the most important steps is the Final Investment Decision (FID). Before approving and ordering large-scale petrochemical project construction, corporations and project partners must follow these steps. FID comes after careful preparation and before project implementation. Market attractiveness, proven production technology, and high investment return affect FID. The project's investment return—determined by IRR, NPV, and PP—is the main factor. An approved FID shows the company's willingness to invest and make a profit, while an unapproved FID prevents further losses if the project goes ahead. NPV, IRR, and PP not meeting criteria prevents a final investment decision. Economic return failure is caused by high taxes, total investment costs, product spread, capital costs, and operating costs. This study aims to improve the current techno-economic model in the petrochemicals industry's final investment decision process by investigating the main parameters of existing FID techno-economic models, developing a new model for the industry, and validating its accuracy. This study began by populating relevant final investment decision criteria, assembling production technology techno-economic data, and determining techno-economic parameters. This study is expected to improve the current techno-economic model and allow more projects to achieve successful FID for long-term profit, while preventing further losses if the economic return is still unfavourable by incorporating sensitivity and real option analysis. An improved techno-economic model should meet the needs of the petrochemical industry and provide prominent outputs for business risk management by allowing precise input consideration.

Leadership and the company's willingness to take risks: Empirical analysis in Vietnam

This research analyzes the nexus between the leader and the company's willingness to take risks in the case of Vietnamese companies. Corporate governance procedures rely heavily on the leader to carry out the company's most important objectives and maximize returns to shareholders. However, leadership does not always conform to scholarly expectations. Consequently, non-financial firms listed on Vietnam's stock market from 2010 to 2020 are analyzed to determine the association between leadership and the extent of willingness to take risks. Using the SYS-GMM method to control for endogenous confounds, this investigation reveals that there is an inverted U-shaped relationship between leader authority and the extent of willingness to take risks. In particular, a willingness to take risks in pursuit of more profits increases as the leader's level of authority decreases. However, companies become less risk-taking as their leader's authority grows. Consequently, the study's key contributions are implications for setting up governance and oversight systems, particularly leader power, to maximize stakeholder interests.

Promoting integration of industry and vocational education: Exploring stakeholder intentions of hydrogen energy industry

The integration of industry and education plays a crucial role in facilitating the transfer of research outcomes from universities to industrial applications, promoting technology exchange and innovation, and fostering the development of skilled professionals in the hydrogen sector. However, the lack of motivation among hydrogen enterprises to engage in this integration process poses a pressing challenge. This paper presents a theoretical model based on a cost-benefit driving analysis framework, aiming to explore the relationship between resource income from universities, hydrogen enterprises' cost risks, policy subsidies, and their willingness to integrate. Through the use of questionnaire data collected from 184 hydrogen enterprises, this study examines the underlying mechanisms among these variables. The findings reveal that resource benefit (β = 0.632, p < 0.01) has a significantly positive correlation with the companies' willingness to participate in collaborative education. Higher levels of resource benefit are associated with greater willingness. Policy subsidies were found to moderate the relationship between resource benefits and integration willingness, as evidenced by the positive interaction effects of resource income and policy subsidies (β = 0.4, p < 0.01; β = 0.129, p < 0.01). This indicates that policy subsidies play a positive role in fostering collaboration between enterprises and educational institutions. On the other hand, cost risk (β = 0.575, p < 0.01) showed a significantly negative correlation with the enterprises' willingness to engage in collaborative education. Higher levels of cost risk hinder the company's willingness to participate. These findings highlight the importance of resource benefits and policy subsidies in promoting collaborative education initiatives for hydrogen enterprises. The findings contribute to the understanding of factors influencing enterprise engagement and have practical implications for fostering fruitful collaborations between educational institutions and hydrogen enterprises.

Protect, respect, remedy, and report? Development of human rights reporting in the context of formal institutional settings

AbstractThis paper investigates the influence of formal institutions, in particular legislation, on corporate human rights (HR) reporting. We use a mixed‐method approach, combining qualitative institutional analysis of two European countries — the Netherlands and Switzerland — with quantitative content analysis of annual reports of 94 listed companies for the years 2007 to 2019 (1222 firm‐years). We find that, for each observed book year, companies in the Netherlands are more willing to disclose HR information than companies in Switzerland, which we explain by their differences in formal institutional development. Our results indicate that formal institutions are essential determinants in HR reporting, both in the willingness of companies to disclose and the extensiveness of disclosure. Moreover, we observe a significant positive impact of legislation on HR reporting but find that the overall compliance levels of affected companies are low. We contribute to prior research, by providing evidence on the development and institutional drivers of HR reporting, a largely overlooked branch of sustainability reporting.

Effect of the Green Supply Chain Management on the Environmental Performance: The Moderating Effect of Institutional Pressure

For sustainable growth and development, it is time for eco-friendly efforts as well as pursuing economic performance. This study first identified the relationship between green supply chain management practices and environmental performance. In addition, it was of key significance to examine the differences in the influence of green supply chain management practices on environmental performance through moderating variables of institutional pressure.BR The results showed that among the green supply chain management practices, internal environmental management system, investment recovery, and buyer management have a positive impact on environmental performance. Previous studies argued that institutional pressure increases the willingness of companies to implement and improve green supply chain management and affects the efficiency of resources used for environmental management. However, contrary to the arguments suggested in the institutional theory, our study found that the higher the institutional pressure, the weaker the positive influence of green supply chain management practices on environmental performance. In particular, concerning green design, it has been statistically significantly demonstrated that the higher the institutional pressure, the weaker the positive influence of green design on environmental performance.

Country corruption and corporate cash holdings: the mediating effect of firm’s anti-bribery policy

The literature about the influence of country corruption on corporate cash holdings is not conclusive as there are studies supporting both a positive and negative relationship. To better explain this relationship, our study introduces a corporate-level mediating variable, i.e. the company's willingness to fight bribery as part of its CSR policy. Using a sample of 1,075 listed firms from 21 European Union countries for the period 2008–2019 (7,771 firm-year observations), we find a partial mediating effect of the corporate anti-bribery policy on the relationship between country corruption and corporate cash holdings. On the one hand, according to the shielding argument, country corruption negatively influences corporate cash holdings. And, on the other hand, there is a mediating effect such that firms in corrupt countries adopt less tough anti-bribery policies and, instead, they reduce their cash holdings both to protect themselves from expropriation and to signal their limit on bribe payments.

An investigation of the impact of interpersonal and institutional trust on knowledge sharing in companies: invisible hands for knowledge sharing

Purpose This study aims to examine the impact of different subtypes of trust on the willingness of companies to share knowledge. To measure improvement in work performance, three perspectives of interpersonal trust, institution-based trust and their combined effect on fostering trust are examined. Design/methodology/approach A comparative analysis and quantitative measurement are used in this study (with a sample size of 147) to determine which knowledge-sharing channels need to be established to increase effectiveness and efficiency. Findings This study found that both interpersonal and institutional trust can positively influence employees' willingness to share personal knowledge. Despite this, the combination of these two types of trust cannot outperform the scenarios in which one type of trust can reach its maximum. As a result of institutional trust, trustees are more likely to trust others when they feel protected. Research limitations/implications Trust may take on multiple dimensions in different business contexts and industries. In this study, the limited sample size and domain may only reveal some of these aspects of trust, which may not be representative of other contexts. Originality/value Few researchers have examined the degree of trust and its impact on knowledge dissemination using relevant parameters. Their focus is solely on the interaction between interpersonal trust and knowledge sharing. As a result of this study, the concept of “trust” was quantified, with more tangible metrics to provide better estimates when assessed in different business contexts.

Funding by the Stock Exchange: Alternative or Decoy for Cameroonian’s Companies

The main objective of this study is to identify the factors that prevent Cameroonian companies from being listed on the Central African Stock Exchange (CASE), despite their difficulties in obtaining funding through bank loans. Based on semi-structured interviews conducted with six (06) managers of Cameroonian public companies, several factors blocking the listing of companies on the stock exchange were identified. Some of these factors are inherent to CASE itself and others are linked to the companies or public authorities.&#x0D; By identifying these different factors that inhibit the willingness of companies to go public, this study makes a scientific contribution to the debate on corporate finance. It also fills a gap by shedding light on the contrast between the need to finance investments and the lack of interest in the financial market, even though these companies are faced with insufficient financial resources.&#x0D; At the managerial level, the results obtained constitute a challenge for the Cameroonian public authorities, stock exchange authorities and business associations to work on supporting and encouraging companies to go public, but also to adapt the conditions of access to the stock exchange by taking into account local realities.

HPR5 Reimbursement of Pharmaceuticals in Turkey: Comparison With Approvals of the FDA Between 2010-2021

Turkey has a highly regulated pharmaceutical market with profound challenges for market approval, pricing and reimbursement decisions. The external and internal reference pricing procedures, low value of exchange rate used in pricing, high statutory discounts required from companies during reimbursement applications, the complex system with imported drugs and alternative reimbursement mechanisms have contributed to the decreased willingness of companies to launch new molecules or new indications for already available ones. This study’s main aim is to have a picture of the new molecule and indication reimbursement trends of Turkey in comparison to FDA approvals between 2010-2021.

Voluntary Assurance of Sustainability Reports: Evidence from Indonesia

Purpose : This study aims to prove the determinants of the adoption of assurance statements in companies in Indonesia. Several companies in Indonesia have included assurance reports in their sustainability reports as a voluntary disclosure. This phenomenon motivates this study, considering that sustainability report assurance is gaining interest among companies, but there is still very little literature discussing this issue, specifically in Indonesia. This research will fill the research gap on sustainability report assurance. &#x0D; Method : Using data from companies participating in ASRRAT (Asian Sustainability Report Rating) for five years (2017 – 2021), this study assesses the influence of governance, profitability, and company age on the company’s decision to adopt assurance on sustainability reports. Total unit analysis are 140 sustainability reports from 28 companies. &#x0D; Findings : The results show that governance, profitability, and the company age significantly influence the adoption of assurance on sustainability reports. This study provides preliminary evidence of the willingness of companies to adopt assurance of sustainability reports in Indonesia by identifying characteristics that distinguish Indonesia from other countries concerning the choice to implement an assurance for sustainability reports. &#x0D; Novelty : This research uses governance measures based on the GRI standard of governance disclosure standards, consisting of 29 disclosure indicators. Previous studies linking governance with sustainability reports only tested specific governance mechanisms, such as the audit committee, board of directors, or diversity.&#x0D; Keywords : Assurance Statement; Corporate Governance; Sustainability Report

Analysis of Loyalty of Individual Customers to Increase the Customer Focus of the Cargo Carrier

The customer focus of cargo carriers plays an extremely important role in the highly competitive market of transport and logistics services, influencing the willingness of companies to be flexible in the pricing policy and other parameters of provision of services when forming a personalised offer to a customer, allbowing to attract a range of new customers, to expand the pool of regular customers based on their brand loyalty. One of the modern tools intended to achieve this goal is the customer loyalty program. The objective of the article is to review and summarise the research and series of recent publications [1–4] by the author and other researchers to substantiate provisions of the customer loyalty program based on analysis and assessment of motives and wishes of customers themselves. To achieve this objective, besides the method of monographic analysis of publications on this topic, the practical part of the research was based on a customer survey. The object of the study was the RZD-Express service for transportation of groupage cargo provided by JSC RZD Logistic company, the subject of the study was the loyalty of private consignors. The task of survey of respondents was to study consumer preferences and motives for choosing such a service, to analyse their willingness to recommend this service to their entourage, the intention to maintain long-term relations with the company, as well as customers’ expectations from interaction with the company. The interpretation of the results of the survey shows the interest of respondents in availability of such a marketing tool as a loyalty program. The study permitted to suggest a system of indicators for the assessment of loyalty program, as well as to put forward proposals for formation of provisions of the loyalty program to improve quality of transport services.

How do manufacturing companies and service providers share knowledge in the context of servitization? An evolutionary-game model of complex networks

The digital capabilities driven by Internet of Things and affiliated techniques have enabled the prevailing service-oriented business models, among which servitization has been well recognised as one of the most competitive strategies for manufacturing companies. However, manufacturing companies usually show a lack of knowledge regarding the service offering associated to their manufactured products. Acquiring external knowledge from service providers is one effective way to tackle this problem, but due to the information asymmetry, the process of knowledge sharing between the two is often faced with a prisoner’s dilemma game. Meanwhile, the company’s game strategy will change with the evolution of the knowledge sharing network structure. We therefore consider the influence of group spatial structure on individual game strategy, marry a canonical evolutionary game model on the decision-making mechanism of individuals to the complex network theory on the interaction behaviour among individuals in the groups. By analysing the model, we reveal the influence of various factors under the dimensions of ability and benefit on the willingness of companies to share knowledge. We also demonstrate the divergence in the influence of various factors on different types of companies.

Sustainability reporting by companies: reasons and financial benefits

Sustainable development is one of the most promising concepts for the future of the society. Companies are an important participant in numerous social processes, and their sustainability is integral to the sustainability of the society. During the last three decades the number of companies preparing sustainability reports has increased. A lot of stakeholders and regulators pay already attention to this type of reporting. At the same time, there is а growing scientific interest in this field. Even though in recent years the number of regulatory acts that mandate certain companies to disclose environmental and social information has increased, the sustainability reporting is still mostly voluntary. This article attempts at summarizing and analyzing the causes that motivate companies to prepare a sustainability report, by reviewing existing literature and completed studies. A total of 14 main reasons have been found. Some of them are external, others are internal to the companies. The reasons may be economic, mainly related to the willingness of companies to improve the competitiveness of the company, but also non-economic, related to the value system of a top member of management or an owner, and the willingness to do good. All the reasons have been subsequently analyzed through the lens of the companies’ competitiveness.

The crisis management strategies of Indonesian event organizers in the face of COVID-19

PurposeThe goal of this study is to learn about of the strategic framework used by event organizers in Indonesia to survive the COVID-19 pandemic. This effort is also used to see how crisis management is implemented in the organization, particularly in relation to the company's efforts to maximize technology in this COVID-19 crisis situation.Design/methodology/approachThis is a qualitative study that employs the case study method with a single intrinsic case. Researchers chose six sources based on the range of responsibilities and authorities they have.FindingsTo remain viable faced with COVID-19 pandemic, event organizers must adopt an open communication strategy, be ready to adapt to changing conditions and take bold steps in crisis management. In general, Garuda Organizer's crisis management strategy consists of five stages: crisis research, forming a crisis team, planning crisis management steps, implementing a new work system and adapting to the new system's culture.Research limitations/implicationsThe focus of this research is on how to deal with crisis strategies in the world of event organizer from the standpoint of innovation diffusion. This study cannot be generalized because it is limited to efforts to formulate a strategic framework carried out by event organizer companies in dealing with the COVID-19 pandemic, not seeing the effectiveness of the strategy.Practical implicationsThis research, in addition to its theoretical implications, provides practical contributions to the event organizer industry. The pandemic encourages every event organizer company to always be prepared to adapt to changing conditions. There is no such thing as a static condition; rather, it can change abruptly at any time. As a result, the most important requirement is a quick and precise response. Responsive leadership will ensure that the adaptation process goes smoothly. With uncertain conditions, businesses must be prepared to respond to any changes that occur at any time. Sometimes desperate action is required because it must be done quickly. Aside from that, do not overlook openness management. It will be easier to manage a crisis if all available communication channels are opened. Opening all communication channels allows all components of the company to participate in overcoming the crisis. The participation of all parties will make it easier to deal with any crisis that arises. This transparency is carried out not only within the company, but also with parties outside the company, such as the government as a regulator, company partners and community members who use our services. Aside from that, a willingness to change and step outside of one's comfort zone is required both within the company and for each individual employee. The company's willingness to try new things and learn quickly becomes critical for businesses in the midst of a crisis. As in the case of Garuda Organizer, a willingness to constantly learn and develop a new culture that is more in line with current conditions will make the company more adaptable in dealing with crises. Thus, effective crisis-response strategies can be developed quickly. When we are at ease in certain circumstances, as employees, we are often hesitant to change, even if the times or circumstances have changed dramatically. It is necessary to avoid the comfort of the status quo. It takes self-will to change in a crisis like this. What does not change will be forgotten by time. To maintain the continuity of the company's activities, all employees must be willing to give up their comfort and possibly make a small sacrifice (including time and effort). If companies can unite the interests of companies and individuals who work as employees (As the management and employees of Garuda Organizer have done by devoting more time to the company's future and delving deeper into one's own potential), they will undoubtedly survive the current crisis.Social implicationsThis study discovered that even in the midst of the COVID-19 pandemic, which is fraught with restrictions, there still are event organizer companies striving to provide the best service. The Garuda Organizer company strives to provide good service to its customers by disseminating innovations. Despite the limited circumstances, the public continues to enjoy events in a novel format, namely through virtual spaces.Originality/valueThis study identifies the use of technology as a means to overcome the problem of organizing events in the midst of the COVID-19 pandemic and maps the complexity of the innovation adoption process in Indonesian event organizer firms.