Corporate Business Strategy Research Articles

Understanding the Conceptual Evolutionary Path and Theoretical Underpinnings of Corporate Social Responsibility and Corporate Sustainability

To unlock the potential for corporations to play a more proactive role in sustainable development, it is critical to have a fundamental understanding of the pathways leading to a responsible and sustainable business. This study explores contributions of theories of the firm in explicating why and how integrating corporate social responsibility (CSR) and corporate sustainability (CS) into business strategic decisions and operation processes helps to improve the viability of corporations. The research objective is addressed through a narrative review of relevant literature by following the developmental and evolutionary sequences in business responsibility and sustainability while contemplating the connections between CSR and CS through the lens of the dominant theoretical perspectives underpinning the concepts. The study posits an integrative theoretical framework that offers supports for embedding CSR and CS into a corporate business strategy. It discusses that corporate choice of CSR and CS actions and policies is supported by dual internal and external mechanisms based on resource-based theory and institutional theory. This is to meet the interests and expectations of internal and external stakeholders, the basis upon which stakeholder theory is constructed. Findings from this review corroborate the proposition that the three theories of resource-based, institutional, and stakeholder could be used as the primary approach to explain corporate recognition of the need for CSR and CS, and further build a coherent platform to support corporate choice and adoption of CSR and CS in business strategy.

The role of corporate controls and business-level strategy in business unit performance

PurposeCorporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement of corporate controls have led many researchers to operationalize them as part of the more ambiguous corporate effects construct, instead of addressing them separately. The purpose of this paper is to examine the significance of “fit” between corporate control mechanisms and business unit strategy in performance of business units.Design/methodology/approachThe authors use ordinary least squares regression analysis on data collected between 2010 and 2012 from surveys from managers of 142 Iranian corporations and 1,822 of their subsidiaries. The authors also use financial and market data collected by an IDRO division and accessed through partnership in a joint project.FindingsThe authors found that while the fit between business unit strategy and corporate controls has a significant effect on business unit financial performance, it does not have a similar effect on market performance. The findings demonstrate that when business unit managers perceive that they are subject to a balance of strategic and financial controls with a slightly greater emphasis on strategic controls, then business units have higher financial and market performance, although the difference in financial performance is not significant.Research limitations/implicationsThe authors find that the misfit between corporate controls and business strategies in such cases could negatively affect the performance of the business unit. However, this research also contributes to a better understanding of the importance of strategic controls to the successful performance of business units. The findings show that while the fit between controls and strategy is most critical for achieving financial performance in business units that pursue product leadership, strategic controls play a more prominent role than financial controls in achieving higher financial or market share performance for all business units.Practical implicationsThe findings of the propositions in this research would discourage corporations with tight financial control from engaging in acquisition of businesses considered to be product leaders in their relative product markets.Originality/valuePast research focusing on the fit between corporate-level factors and business-level factors and their role on business performance are largely limited to conceptual work. The limited empirical studies completed in the past generally reduce control mechanisms to lack or absence of autonomy. This shortcoming has been mainly due to difficulties in measurement of control mechanisms. The empirical study overcomes these barriers and in doing so, reveals surprising findings related to the effectiveness of different control mechanisms.

The impact of accounting restatements on corporate innovation strategy

This study examines the effect of accounting restatements on corporate innovation strategy. Using a sample of restating firms and propensity-score-matched non-restating firms from 2000 to 2009, we find that, after restatements, restating firms experience a greater increase in exploratory innovation and a greater reduction in exploitative innovation compared to non-restating firms. These results suggest that restating firms are associated with an increased risk appetite as managers believe the upside potential may yield corporate improvement. The results also differ between fraudulent and non-fraudulent restatements, and among restatements of varying severity. The results of this study shed light on a previously unexplored consequence of accounting restatement and highlight its real impact on corporate business strategy.

Implementasi master strategi dalam menciptakan nilai publik pada PDAM TKR Kabupaten Tangerang

The main problem faced by PDAM TKR Tangerang Regency is the low coverage of drinking water services for domestic customers or the community. Whereas services for non-domestic customers such as companies and apartments, Tangerang TKR PDAM is considered to have provided good and optimal services. The service provided by the Tangerang Regency TKR PDAM is done unevenly. This problem can be found in the difference in service quality between domestic and non-domestic consumers. This study focuses on the problem of less than optimal service to domestic customers by the Tangerang TKR PDAM. Public value theory by Mark Moore becomes the basic theory used to measure the success of a company in providing good and optimal service to the community. Company achievements are assessed in terms of service, results and trust. The strategy needed to realize this public value is the Strategy Master initiated by Higgins which includes corporate strategy, business strategy, functional strategy and enterprise strategy. This study recommends that to realize a good and optimal Public Value, Tangerang Regency TKR PDAM is deemed necessary to use the Strategy Master in its entirety and comprehensively in an effort to serve the community as domestic customers. DOI: https://doi.org/10.26905/pjiap.v4i1.2411

Disposal strategies in corporate real estate portfolios

PurposeThe purpose of this paper is to develop an operational framework with guidelines and lessons to improve the current real estate portfolio disposal procedures of freeholds, based on empirical evidence from the banking sector.Design/methodology/approachThe empirical research is based on a comparative analysis of four case studies, representing approximately 80 per cent of the Dutch banking sector. The case studies comprise a systematic document review of corporate business and real estate strategies and semi-structured interviews with decision makers who steer the organisation’s corporate real estate (CRE) portfolio composition.FindingsThis research shows a strong relationship between organisation characteristics, legacy and strategy, disposal drivers and CRE disposal strategies. The weighing of drivers and order of steps in strategy execution strategies largely depend on organisational objectives.Research limitations/implicationsThis paper reports empirical findings from Dutch case studies. To generalise, further research is needed in different legal, financial and economic contexts and in other sectors. This paper suggests a more thorough study of the relationship between space-use efficiency and technological innovation implementation..Practical implicationsThe framework proposes strategy improvements and a proactive approach to corporate real estate management (CREM) to create value through real estate portfolios.Originality/valueThis paper provides a thorough analysis of the CREM of the Dutch banking sector and is applicable to CREM in this and other sectors.

Corporate Social Responsibility vs. Business Strategy

The article discusses the concept of corporate social responsibility (CSR) viewed as an important direction for the evolution of business towards low emission and resource efficient business models and responsible and inclusive economy. With the appreciation to the contribution of the concept for social and economic development the goal of the article is to identify the most important concerns and shortcomings rising from of the application of the corporate social responsibility in business strategy. The article is of theoretical character and is based on the review of the recent literature on CSR, sustainability and non-financial reporting. The paper argues that while the CSR concept proposes important rationales for the evolution of business, it may have a limited effect on the factual change with respect to business models and strategy. Specifically, the concept raises several concerns related to the coherence and the clarity of its theoretical approach as well as severe methodological and measurement shortcomings. In addition, corporate social responsibility faces problems of the firm intention and its effective implementation in the organisational context.

Do Financing Constraints Lead to Incremental Tax Planning? Evidence from the Pension Protection Act of 2006

Over the last three decades, academic research has sought to understand how cash shortfalls impact a firm’s ability to take all available value-increasing investment projects. We investigate whether firms facing greater financing constraints turn to tax strategies that generate lower cash effective tax rates (ETRs) to mitigate the adverse effect of these financing constraints. We use the Pension Protection Act of 2006 (PPA 2006) as an exogenous shock to financing constraints for pension firms, but not for other firms. Using a difference-in-difference research design, we predict and find that pension firms experience a decrease in their cash effective tax rates by 1.8 to 2.4 percentage points after the PPA 2006, relative to other firms. These cash tax savings mitigate the investment shortfall brought about by financing constraints by 19 percent. We also predict and find that the decline in cash ETRs is greater among firms more adversely affected by the PPA 2006. Our paper sheds light on the direction, causality, and economic magnitude of the association between financing constraints and tax planning activities. We also provide insight into the role of tax planning activities within firms’ broader corporate business strategies in responding to financing constraints.

Company Strategies for Responsible Research and Innovation (RRI): A Conceptual Model

Responsible research and innovation (RRI) has become an important topic in the academic community and in policy circles, but it has not yet been systematically included in the innovation process of companies. We discuss how companies can integrate RRI into their corporate social responsibility (CSR) policies and business strategy. To this end, we developed a conceptual model that links a company’s RRI strategy to its context, and that helps to translate the RRI strategy into activities that result in RRI outcomes. We also propose a process for developing company-specific RRI key performance indicators (KPIs) that can support companies to measure RRI outcomes.

PENGARUH GOOD CORPORATE GOVERNANCE DAN BUSINESS STRATEGY TERHADAP GOING CONCERN PERUSAHAAN

This study aims to see the influence of corporate governance and business strategy on going concern companies. Sampling method using purposive random sampling that is manufacturing company listed in Bursa Efek Indonesia (BEI) or Indonesia Stock Exchange for the year 2012-2014. The research method used multiple linear regression. Test results shown differentiation strategy has a significant positive effect on Companies’s going concern, while cost strategy and corporate governance have no significant effect on Companies’s going concern. Keywords: Good Corporate Governance, Business Strategy and Company’s Going Concern.

The Impact of Reputation on Corporate Financial Performance: Median Regression Approach

AbstractBackground:In recent years, reputation has become an important risk concern for companies around the world. Deloitte Global Survey highlights the reputation risk as the top strategic business risk in 2014. This is also proven by a research conducted by AON Global Risk Management Survey in 2015 and Allianz Risk Barometer Survey in 2016 which finds a loss of reputation as one of the biggest risks for business executives. Furthermore, the importance of reputation is confirmed by the fact that reputation accounts for more than 25 percent of a company’s market value and the total market capitalization of the S&P500 companies.Objectives:To investigates the relationship between corporate reputation and financial performance.Methods/Approach:The survey of the paper was conducted in 2015 in Croatia. The questionnaire for assessing corporate reputation contained three reputational dimensions: products and services, corporate integrity, and organizational performance while the financial dimensions contained indicators of EVA, ROCE, ROA, ROE and the financial stability coefficient. Hierarchical regression methods were applied in the analysis.Results:This research leads to the conclusion that some dimensions of corporate reputation can be important predictors of financial performance.Conclusions:Results of the research could be a valid motivation for business executives to consider reputation risk as a critical issue of corporate business strategy.

INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY INTO THE CORPORATE STRATEGY

Introduction. The issue of strategizing corporate management approach during the implementation of the concept of corporate social responsibility (CSR) is considered in the article. The implementation of CSR concept in the enterprise’s overall strategy is one of the important areas of building mutually beneficial relationships with key stakeholder groups. Purpose. The research aims to justify a comprehensive strategic approach to CSR on the basis of the construction of integrated corporate and business strategies with a focus on the CSR principles. Method (methodology). A complex of scientific methods such as method of theoretical generalization, comparison and systematic approach to the formation of interconnected strategies for different hierarchical levels of enterprise management with a focus on CSR principles have become the methodological basis of the study. Results. The necessity to overcome the isolation of socially responsible programs and initiatives and provide their close relationship with key business processes on a strategic basis through the introduction of CSR elements in strategic management has been proved. Stages of forming integrated corporate (business) strategy with a focus on CSR principles, which allow implementing a comprehensive strategic approach to CSR at all hierarchical levels of enterprise management, have been proposed. It has been emphasized that corporate and business strategy integrated with socially responsible objectives and principles form prerequisites for improving operational efficiency of the enterprise management systems.

Nanotechnology Innovations and Commercialization – Opportunities, Challenges & Reasons for Delay

Innovations in nanotechnology are making a revolution in manufacturing and production, creating new materials and products through novel processes for commercial applications. New products based on nanotechnology with novel characteristics are continued to grow and benefit the society. Being general purpose technology, nanotechnology is expected to support all fields of the society, but some fields like medicine, energy, environmental remediation, robotics, manufacturing, commerce, and space exploration are expected to undergo explosive developments. In this paper, we made a detailed analysis of advantages, benefits, constraints, and disadvantages of progress in nanotechnology for the society and discussed the reason for the failure of estimated timeline for realizing various generations of progress and proposed a modified timeframe for anticipated nanotechnology innovations. Based on the business perspective, we have developed a nanotechnology products/services commercialization model and discussed the opportunities for nanotechnology commercialization. The paper also contains a detailed analysis of common commercialization challenges faced by nanotechnology firms including time lag, the valley of death, lack of infrastructure, lack of a standard for evaluation, bureaucratic delays, the dearth of funding, and lack of trained professionals, brand image, and public support. Finally, we have mentioned how the various corporate business strategies can be used in the successful business of nanotechnology products and services.

Corporate Business Strategy and its Challenges

Business environment and strategy faces continuous completion and impacts the business sustainability in a long-term. In a view, the business must realize the dynamic capabilities and must apply the right company strategy to survive in the global competition and achieving the desired targets. Many philosophers consider ethics to be the `science of conduct'. Philosophers have been discussing ethics for ages now, since the time of Socrates and Plato. Many ethicists consider emerging ethical beliefs to be "state of the art" legal matters, i.e., what becomes an ethical guideline today is often translated to a law, regulation or rule tomorrow. Values which guide how we ought to behave are considered as moral values, e.g., values such as respect, honesty, fairness and responsibility. The paper examines the concepts of strategy and business ethics undertaken to improve the overall business performance.

Nanotechnology Innovations and Commercialization-Opportunities, Challenges & Reasons for Delay

Innovations in nanotechnology are making a revolution in manufacturing and production, creating new materials and products through novel processes for commercial applications. New products based on nanotechnology with novel characteristics are continued to grow and benefit the society. Being general purpose technology, nanotechnology is expected to support all fields of the society, but some fields like medicine, energy, environmental remediation, robotics, manufacturing, commerce, and space exploration are expected to undergo explosive developments. In this paper, we made a detailed analysis of advantages, benefits, constraints, and disadvantages of progress in nanotechnology for the society and discussed the reason for the failure of estimated timeline for realizing various generations of progress and proposed a modified timeframe for anticipated nanotechnology innovations. Based on the business perspective, we have developed a nanotechnology products/services commercialization model and discussed the opportunities for nanotechnology commercialization. The paper also contains a detailed analysis of common commercialization challenges faced by nanotechnology firms including time lag, valley of death, lack of infrastructure, lack of standard for evaluation, bureaucratic delays, dearth of funding, and lack of trained professionals, brand image, and public support. Finally, we have mentioned how the various corporate business strategies can be used in the successful business of nanotechnology products and services.

What We Know About Environmental Policy: An Inductive Typology of the Research

AbstractEnvironmental performance is a multidimensional concept that is difficult to measure since it concerns the pollution generated by companies, their energy consumption and their different environmental policies. Academic research has used objective and/or non‐objective indicators to measure this performance, dealing with both its managerial and measurement dimensions. This paper provides an inductive typology of the academic work concerning environmental policy through a computerized content analysis of 151 articles from 1992 to 2014 related to the management and measurement of environmental performance. The results highlight four major themes around which the academic research is organized: the relationship between environmental and financial performance, environmental performance under stakeholder engagement and institutional pressures, the strategic management of environmental performance, and increasing awareness of the sustainable development issue. Environmental performance research has evolved from a quantitative towards a more managerial dimension, highlighting the integration of performance within the management of a corporate business strategy. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Does stronger patent protection increase export variety? Evidence from US product-level data

Proponents of global intellectual property rights (IPRs) reforms have argued that developing countries’ weak IPRs limit their access to foreign innovative products and technologies. Central to our understanding of the effects of IPRs on product access is the influence of national differences in patent protection on corporate behavior and business strategy of multinational firms. Using detailed product data on US exports from 1990 to 2000, this research note assesses the impact of strengthening IPRs in developing countries on product variety of US exports. Colonial origin and cross-industry variation in patent effectiveness serve to identify the impact. The results show that the strengthening of IPRs increased exports of new products in patent-sensitive industries. The expansion in product variety accounted for the entire increase in US exports. The findings substantiate claims that ratification of TRIPS by developing countries promotes access to new foreign products and technologies. Additionally, the results demonstrate that patent protection is a significant institutional factor in US firms’ business decisions over the introduction of new products and processes into a developing country marketplace.

Strategic choices regarding talent management in the Flemish public sector

In the past decade, talent management (TM) research has mainly focused on (large) organizations in a for-profit context. From this, it has been established that it is important to apply a contingency perspective since ‘organizations develop talent systems which reflect particular organizational objectives in the context of the strategic constraints which they face’ (Vaiman & Collings 2013). Furthermore, Vaiman & Collings (2013) state that future research thus should aim to connect the talent management policy of an organization to the corporate culture and business strategy. In addition, Thunissen et al. (2013a) acknowledge that the approach to talent is not only determined by the management of an organization but also by other stakeholders (e.g. employees and society). This article aims to contribute to these concerns in the literature by using the contextually based human resource theory (CBHRT) of Paauwe (2004) in a public sector context. The CBHRT tries to explain the choice for an HR policy by looking at several dimensions in the (institutional) environment of an organization and by taking into account the influence of stakeholders. Furthermore, by focusing on the Flemish government, this article meets the call to further research on TM in underexplored research areas.

Corporate strategy and the environment: towards a four-dimensional compatibility model for fostering green management decisions

Purpose– This article aims to draw on the contingency theory to develop a conceptual model of compatibility between corporate environmental responsibility and business strategy that reflects heterogeneity in this relationship. Four dimensions of compatibility are explored: trade-off, ambidexterity, synergy and symbiosis.Design/methodology/approach– The intended contribution is essentially conceptual. A company case study is included to contribute to the development of the four dimensions of compatibility and support the practical relevance of the model. Twelve in-depth interviews with six managers in different functions of the company were conducted. A grounded theory approach was used to identify and express the patterns of compatibility that emerge from the qualitative data and how these patterns are grounded in managers’ meaning-in-use.Findings– The contribution of the compatibility framework is essentially made to the literature on environmental strategy management, evolved from an implicit and, at most, two-dimensional (win–win and win–lose) conceptualisation of the relationship between green and business strategy into an explicit and multi-dimensionally grounded identification of processes and strategic challenges of corporate environmental and social responsibility. The resulting model contributes to a better understanding of corporate greening as a strategic and moral concern to individuals acting on behalf of business organisations and a greater understanding of the linkages between green and business strategies and operations.Originality/value– By clarifying the construct of corporate environmental sustainability and providing useful directions for theory and practice, this research claims to inform green management decision-making. While the compatibility model is not intended to explain all pathways by which firms may elicit contingencies of relevance to environmental and social responsibility, it is suggested that the model paints a more complete and contextualized picture of environmental management mechanisms in business.

Research on the Method of Asset Valuation Based on Grey Statistics Evaluation

When a security attribute of the assets assignment is valuated, the commonly used method is based on the analysis of the corporate business strategy, combined with the data value given directly by the experience and intuition of the evaluators. This assessment process is lack of scientific basis. Grey Statistical evaluation can composite the views of related personnel in different department and give confidence interval. The scientific, objective and impartial assignment process is ensured by the statistical results. For example of asset integrity assignment, the process can be completed by the method used of grey statistical evaluation.

On a methodology for component selection in modular branding: An industrial pilot study

Performing modularization of a product family with multiple brands is a complex task that must integrate and balance a wide range of contradicting and ambiguous aspects, such as product performance, customer expectations, supplier alliances, and corporate business strategies. Furthermore, decisions on balancing these aspects that also change with time have to deal with a high degree of uncertainty. No general methodology for modular branding has currently been published. A methodology with that aim is proposed and prototyped in a real but anonymized industrial case. The presented task is to select standard original equipment manufacturer engines for six brands of self-propelled walk-behind lawn mowers. Selection is based on a set of calculated utility scores and known costs. The utility of an engine with a certain performance level and set of features is specific to each brand. This article presents a first step in developing a general methodology for modular branding and the organizational learnings of using the proposed methodology in an industrial setting.