Corporate Survival Research Articles

Private social media usage of employees: Implications for corporate risk management to protect corporate reputation

In an increasingly complex business environment, risk management has become essential for corporate survival. Given the rapidly changing environmental conditions and trends, new risks are constantly emerging and need to be assessed and managed. The influence of risks extends beyond the corporate sphere, for example, with the private use of social media by employees and the resulting potential damage to the company’s reputation. According to the literature, there is little to no knowledge on this topic. Therefore, in this study, 20 experts at different positions in their companies were interviewed about the significance, handling, mapping, consideration, and measurement of potential reputational risks associated with the private use of social media by employees. The results show that there is a certain awareness of the problem, but only a few mechanisms have been implemented to manage such risks. Based on the findings, risk management measures are identified by examining the employees’ journey, which can be used in operational practice to reduce the risk of potential reputational damage.

The incidence and persistence of partnerships in a British industrial city: Glasgow, 1861–81

AbstractThis paper examines the prevalence of business partnerships in a late‐nineteenth‐century British city, using individual‐level data from post office directories and censuses. Focusing on Glasgow, we present a detailed picture of partnership number and type, demographic characteristics of the entrepreneurs who ran them, and how these businesses persisted over time. We show that partnerships were a key business grouping in the city and demonstrate that the partnership form was advantageous in manufacturing and that the majority of partnerships were formed between individuals without family ties. Furthermore, we offer new insight into business longevity, showing that partnership business survival broadly matched corporate survival rates in this period, with persistence data also suggesting that kinship partnerships were better able to deal with the perceived hold‐up problems associated with the partnership form.

Sink or swim in the R&D pool: the relationship between peer density and streamlining

Our study explores the strategic reduction of firms' R&D investment, focusing on ‘peer R&D density’ as a main factor. This concept reflects the level of R&D engagement among competing firms. Based on organisational ecology theory, we find a U‐shaped relationship between peer R&D density and R&D streamlining, driven by legitimacy and competition resulting from high peer density. Furthermore, we examine how state ownership moderates this relationship. Using data from Chinese listed firms between 2006 and 2018, our analysis sheds light on the drivers R&D reduction and the impact of ownership structures on these dynamics. Our findings enhance the understanding of corporate survival and adaptation in research‐intensive industries, highlighting the interplay between state and market logics.

Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises

In 2015, Chinese Government issued the<i> Notice on the National Civil Space Infrastructure Medium - and Long-Term Development Plan (2015-2025)</i>, announcing that it would support and guide social capitals to participate in the application and development of national civil space infrastructure construction. Later, Chinese private companies are allowed to apply for launch licenses, breaking the traditional model of allocating funds from the state budget and developing rockets only by the "national teams". Many Chinese private rocket companies were registered and established afterwards, and some of them have successfully launched rockets several times in recent years. At the same time, Chinese private rocket enterprises are also facing with many problems, including the low success rate of rockets, the risk of rocket debris falling, high space insurance rates, space junk, talent competition, and corporate survival, etc. In 2023, the Chinese Government issued <i>Notice on Strengthening the License Management for Civil Space Launch Projects</i>, which requires the third-party liability insurance policy and space debris mitigation plan for launch licenses application, meanwhile the last sub-stage of the launch vehicle should de-orbit according to the regulations after taking measures such as passivation, using government policy tools to regulate and guide the development of private rockets. In conclusion, in order to promote the healthy development of commercial launch service industry, the market mechanism should play a leading role, while appropriately regulation and adjustment from the government policy are also needed. In addition, this paper also suggested that the Chinese government should carry out overall planning for the division of labor and product models of state-owned and private rocket companies.

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

This study empirically examines factors that can influence the sustainable corporate performance of Korean business-to-business (B2B) companies with the help of unique survey data. Factors such as technological capability, the chief executive officer (CEO)’s risk-taking propensity, B2B seller skill, and key account management (KAM) are analyzed to clarify their impact on sustainable financial and non-financial performance. In particular, given that environment, society, and governance (ESG) reporting has recently been widely recognized as an important evaluation factor for companies, we look at the mediating effects of ESG management on sustainable business performance. The results show that the CEO’s risk-taking propensity and B2B seller skill significantly impact the company’s sustainable financial performance, while technological capability and the CEO’s risk-taking propensity significantly impact sustainable non-financial performance. The fact that a CEO’s risk-taking propensity affects both sustainable financial and non-financial performance indicates the importance of entrepreneurial competency in the sustainability of the company. Furthermore, the findings reveal that ESG management plays a crucial role in sustainable corporate performance. The mediating role of ESG management allows technological capability, B2B seller skill, and KAM to influence sustainable financial performance significantly. Likewise, all of the explanatory factors contribute to the company’s sustainable non-financial performance through ESG management. The findings are important for both practitioners and scholars because they emphasize the need to establish an optimal ESG management strategy for corporate survival and sustainability. Furthermore, this study underscores that ESG management should be implemented by all organizational members, from CEOs to employees. Future research will include more comprehensive samples and analyze various strategic factors not covered in this study to derive effective ways by which companies can increase their performance and sustainability. We will also explore the factors that contribute to good ESG management practices.

The Nexus of Functional Stupidity Geometrics: Unpacking the Stupidity Theory on Leadership as a Toxic Mix Between Leaving a Legacy and Leadership Failure in Business Organizations

This study fires shots on the irony of corporate stupidity in the 21st century. The present study reveals that corporate functional stupidity is viral among both smart and non-smart corporations leader, small and big corporations- capitalizing on leadership and intra-organizational power dynamics and the level of imbalances in authority between those leading and those being led [leadership-follower matrix]. The practice by corporates, especially leadership from within, to ‘construct and build huge’ systems of communicative blockades ear-marked at blind-folding and encourage employees to accept demonic and exploitative work practices as a prerequisite for corporate survival is ontologically surprising and a major cause for concern. This stupidity paradox in corporations spear-headed by leaders advances the notion that power dynamics and imbalances in authority at work places create stupid leaders who represents a distinctive form of cognitive failing. Paradoxically, modern corporations appear more stupidified from within. Stupidity is here viewed as functional and is understood definitively as a form of conceptual self-hampering, characterized by aetiology and with a range of delirious effects on both individuals at work and corporate performance at the other extreme. Functional stupidity, is in its entirety an “active refusal of using one’s intellectual capacity in other than myopic ways” and leadership. The present study is a product of the researcher’s quest and thirst for ontological perspectives in determining, what characterizes stupidity and determine the emancipatory models that are needed to contain the over-acculturalization of the practice. The primary research question posits and examines the salient characteristics of corporate functional stupidity. Together with other secondary questions, this question raises issues focused on interventions (stupidity management) leaders can make to drive down levels of stupidity in their corporates and make their organizations less stupid. A mixed methodological design is adopted in order to comprehend the ontology of functional stupidity as well as the original episteme of the same. This is done by reviewing existing literature on functional stupidity, with observatory and experiential knowledge obtainable from the researcher’s work experience. The employment of discourse analysis and content merging of other studies conducted elsewhere is becomes the pedal for data analysis. The primary finding is that corporate stupidity can translate into a dangerous sense of futility that prompts even the brightest employees to abandon objectivity and silently accept absurd tasks. Corporate stupidity is a common hazard in many companies but paradoxically enough-it can prove useful to maintaining a certain degree of cohesion. Study further shows that stupid leadership attempts to structure individuals' internal conversations in ways that emphasize positive and coherent narratives and marginalize more negative or ambiguous ones. Stupid leaders throw up a variety of communicative blockades that encourage employees to accept bad practices as an inevitability of life in the particular organizational ontology within which they find themselves. The study further perspective is that many corporations are caught in the stupidity paradox: they employ smart people who end up doing stupid things. This can produce good results in the short term, but can pave the way to disaster in the longer term. Paradoxically, the study reveals that when people are seized by functional stupidity, they remain capable of doing the job, but they stop asking searching questions about their work, get over possessed with loyalism and loose creativity and innovation. Smart corporations encourage stupidity that this pays off in the short term, but creates problems in the long term. The study recommends that systematic de-stupification and denaturalization of corporate leadership discourse is a necessary undertaking. The creation of deliberate innovative support cultures cannot be over-emphasized. The study unapologetically stands and proposes very practical steps that can be used to destupidify our corporations. Future research need to be contacted focusing on the benefits of creating stupid corporations whose stupidity manifests through the behaviour of its leaders. This study is not complete until further study is conducted across all corporates to deduce how stupidity can be transformed into both medium and long term benefits to the corporation.

Impact of Team Building on Organizational Performance: A Theoretical Review

The effective functioning of organization resulting to improv ed productivity and better performance of an organization is central to every organizational objectives and purpose. This paper examined the impact of team building on organizational performance. The paper observed that team building contributes immensely to the overall organizational performance and successes. The paper note that team building enhances collaborations, trust and knowledge sharing among employees of an organization which helps to build competitive advantage over their rivals as well as promote overall performance. The paper identified as lack of trust, resistance to change and inability to share common goal and purposes as well as lack of management support as key challenges to organizations team building process. Some advantages of team in an organization as enhance organizational learning because employees are able to experiment and create strategies that are best suited to their work. The paper concluded that team building is vital for corporate survival and enhanced performance as it help to provide the collaboration needed to meet organizations task and improve firm development which is vital in today ’s highly competitive business arena. It is recommended that organizations should

Corporate sustainability, organizational resilience and corporate purpose: a triple concept for achieving long-term prosperity

PurposeThis paper aims to narrow the gap caused by the lack of literature relating the three concepts of corporate sustainability, organizational resilience and corporate purpose in the context of corporations. A framework that explains how these three concepts are related and effectively merged for long-term corporate survival are proposed.Design/methodology/approachA systematic review is carried out. It is explained, first, initial search strategies to identify those documents that define each concept and to identify concepts with which each concept is associated. Subsequently, it is designed a search strategy combining all three concepts and their associated concepts to gather and analyze all the possible studies that have tried to connect these concepts. Finally, it is identified some gaps in the understanding of how these three concepts are related.FindingsResults indicate that corporate sustainability, organizational resilience and corporate purpose merge to achieve long-term corporate survival. There exists a two-way relationship between these three variables. Findings also present gaps and future directions that should be addressed to foster an increase in knowledge about the relationships between corporate sustainability, organizational resilience and corporate purpose.Originality/valueNowadays, some authors endeavor to explain how aspects such as corporate sustainability, organizational resilience and corporate purpose are crucial in the dynamic environment facing corporations every day. Nevertheless, there needs to be more understanding of how these three concepts are related and effectively merged for long-term corporate survival. This paper contributes to the literature by closing this gap.

Conceptualization of a methodology for circular value creation in SMEs in one-off production

Implementing a circular economy (CE) is essential to achieving the long-term goal of carbon neutrality. Therefore, circular economy becomes increasingly relevant in the manufacturing industry. As small and medium-sized enterprises (SMEs) constitute a large part of the manufacturing industry, without them, a wide-ranging circular economy would not be possible. However, various structural barriers across the three dimensions of value creation – process, resource and organization – hinder the adoption of circular practices in SMEs. The difficulty of implementing circular practices is especially true for SMEs in one-off production with highly customized products and low process repeatability. Corporate survival in a circular world means these SMEs must transform themselves in the long term. Therefore, this paper aims to conceptualize a methodology for transforming SMEs in one-off production towards circular value creation. To this end, this research summarizes and analyzes existing barriers in the literature and then derives the requirements for the methodology. It finishes by conceptualizing the methodology by outlining the individual steps.

Lessons learned from warning signs before the October 7, 2023, failure: Strengthening board and auditor oversight

This paper argues that incomplete information analysis and over-reliance on technology can obscure financial risks, drawing parallels between audit failures and intelligence lapses such as the October 7, 2023, attack. It asserts that professional auditors and proactive boards are essential for corporate survival. Emphasizing a risk-based audit approach, the study highlights the need for holistic use of technology, critical thinking, and effective communication. The research offers actionable guidance for boards to enhance collaboration with auditors, integrate safeguards into decision-making, and strengthen corporate governance. By focusing on robust internal controls and proactive risk management, this study provides a framework to prevent future financial disasters.

Competitive Advantage Based on Green Intellectual Capital and Green Innovation

In the limited use of natural resources, companies must use the intelligence of their human resources to produce environmentally friendly and energy-efficient products and avoid environmental damage for the company's survival. This study investigates how green intellectual capital and innovation affect the competitive advantage of companies operating in the primary consumer goods industry. The research question is whether companies need more natural resources that are limited in quantity and quality. To ensure business sustainability, increased green intellectual capital, expensive green innovation, and long-term research are needed. Primary consumer goods sector manufacturing companies listed on the Indonesian Stock Exchange (BEI) from 2018 to 2020 are the subject of the research used. With the purposive sampling method, 62 companies were used, thus obtaining 179 samples. Research data is obtained from annual reports, sustainability reports, or company websites on the Indonesian Stock Exchange (BEI). The data analysis model is track analysis. Studies show that green intellectual capital affects competitive advantages, while green innovation does not. Innovative green innovations must be well integrated into the corporate accounting system to ensure corporate survival. This will involve increased research and development to improve resource access by increasing R&D.

Corporate Sustainable Growth Among Listed Non-Financial Firms in Nigeria During Financial Crisis: Does Board Characteristics Matter?

During the worldwide financial catastrophe and pandemic, non-financial firms faced several challenges. Corporate survival in these difficult times necessitates the agitation for the long-term growth of the companies. Sustainable growth is defined as growth witnessed by a company in a stand-alone position without any outside finance. Sustainability in a term of long-term growth is obtained through the existence of effective qualities of the board of directors. There is indeed the existence of fantastic research on the theme of our study. However, the studies were not only scanty, but they were of divergent results and did not cover all the countries. Against these loopholes, our study was conducted to investigate the influence of board qualities on the sustainable growth of non-financial firms in Nigeria. Listed firms other than financial ones on the Nigerian Exchange Group, between 2011 to 2020 were the population of the study. 60 companies were selected through the application of content analysis. The best multiple regression model adopted for the study, after the conduction of the Breusch-Pagan LM test and Hausmann test, was the random effect through e-view 8.0. The result obtained was that board qualities – size, independence, and meeting – had positive cum significant impacts on SGR (coefficients: 0.0659, 0.0405, 0.0508; p-values < 0.05). while board gender diversity was positively correlated with sustainable growth though insignificant at the 5% threshold of significance (coefficient: 0.0397; p-value > 5%). The study was in support of principal-agent theory because effective features of the board were seen to be a way of solving the principal-agent problem.

Corporate innovation and analysts’ estimates of the cost of equity: Evidence from China

We examine the effect of corporate innovation input and output on analysts' estimates of the cost of equity based on data from public listed Chinese companies between 2007 and 2017. Analysts' estimates of the cost of equity significantly increase with corporate innovation input, whereas their estimates decrease with corporate innovation output, as indicated by this research. The results of additional analysis suggest that the role of corporate innovation input in increasing the estimates of the cost of equity is more significant with an increase in environmental uncertainty and negatively mitigated by strong survival ability. However, the role of corporate innovation output in decreasing analysts' estimates of the cost of equity is not significantly moderated by environmental uncertainty or corporate survival ability. Furthermore, we find that analysts consider financial constraints and information asymmetry when estimating the cost of equity. On this basis, the present study confirms that investors are significantly responsive to analysts’ estimates of the cost of equity during investment decision making.

A virtuous circle brought about by corporate social responsibility – A study of the dynamic relationship between social capital, social responsibility and corporate value

AbstractCorporate social responsibility plays an important role in promoting national harmony and high‐quality development. And social capital is the foundation of corporate survival and enhancing value is the goal of corporate survival. The interaction between social responsibility, social capital and corporate value and the degree of influence is an issue waiting to be studied. This paper takes listed companies from 2010 to 2020 as the research object, and empirically examines the dynamic interrelationship and degree of influence between the three on time series by constructing the PVAR model to include the three in the same analytical framework. The study shows that: (1) There is a virtuous circle mechanism of “social responsibility‐social capital‐corporate value”. (2) CSR and social responsibility are mutually causal, and social responsibility and corporate value are mutually causal, while social capital can only enhance corporate value in one direction. (3) Although the interaction between the three variables gradually decreases and tends to zero over time, it still has a strong lag, and the effect generated in the current period can lag at least 10 periods. The research results enrich the dynamic relationship between social capital, social responsibility and corporate value, and provide strategic references for corporate value enhancement.

The Role Of Enterprise Risk Management And Digital Transformation On Sustainable Banking In Indonesia

This research investigates the role of Enterprise Risk Management and Digital Transformation in banking sustainability in Indonesia. Banking demands good performance from its owners and shareholders to carry out operational activities on an ongoing basis. In this study, the target population is the Indonesian Banking Sector, which has a digital banking transformation experience. The data was collected by administering questionnaires to the Director/Manager/Division Head/Branch Head of the company. Data were analyzed using descriptive and verification analysis using Partial Least Square (PLS) Structural Equation Modeling (SEM). Additional moderation analysis was also employed to examine the element of mediation. The findings reveal that Enterprises Risk Management and Digital Transformation Banking significantly and positively influence banking sustainability in Indonesia. The Moderation Variable used is that knowledge management cannot improve the relationship between Enterprises Risk Management and Digital Transformation Banking on Banking Sustainability in Indonesia. The issue of sustainability in the financial services involve many aspects; therefore, the key to the sustainability strategy is the awareness from the banking sector of relevant impacts and robust risk management. Technological developments in the banking sector have significant implications for banking which have an impact on corporate survival.

A Framework of Excessive Executive Compensation – An Obscured Breach in Corporate Governance Agency Contract

Excessive executive compensation is tantamount to a breach of agency contract. There are two main problems with excessive executive compensation: excessive compensation is stealing from a shareholder’s standpoint; excessive executive compensation is demoralizing to the other workers in the organization. Purpose. This paper aims to provide a conceptual framework of the antecedent and postcedent of excessive executive compensation. Approach. The paper inclines on agency theory and the attendant principal-agent contract. The paper follows a critical deconstruction approach, culminating in the development of an original conceptual framework. Finding. Through a critical deconstruction of agency theory postulation of optimal agent’s response to corporate compensation structure, it emerges that this postulation may not hold in all instances given that gargantuan compensation structure has a high propensity to nurture irresistible executive financial misdemeanours to inflate profit or share price, which are the performance index of reaping the excessive compensation. This incubates ancillary agency costs to the detriment of the principal and corporate survival. Theoretical and practical value. The paper offers insight into corporate governance strategy for accounting and business law theory and practice in university business schools and for further research. In addition, corporate boards may draw insights from the theory developed in this paper, which portrays the antecedents and postcedents of executive excessive compensation. This theory will catalyse debate and rethinking of corporate compensation policies within the boards of directors. The paper offers an original contribution to the contentious agency cost issues by developing a conceptual framework of the antecedent and postcedent of excessive executive compensation – depicting obscured additional agency costs.

Effect of Stress on Employees’ Job Performance of Commercial Banks in Delta State, Nigeria

The purpose of the study is to determine how stress affects the work performance of employees at selected banks in Delta State, Nigeria. The study, anchored on the Selye stress theory, and adopted the survey research design. The study population consists of all staff of six selected commercial banks in Delta State. A sample size of 276 was used for the study. The study's findings showed that while role ambiguity and organizational change had significant negative effects on employees' job performance, workload and time pressure had a significant positive effect. The study comes to the conclusion that workers' job performance at commercial banks in Delta State is impacted by stress, and recommends amongst others that flexible workload should be incorporated into policies of banks to enhance employee productivity and commitment that will increase corporate survival.

FINANCIAL CRISES AS A THREAT TO CORPORATE SUSTAINABILITY: EVALUATING THE IMPLICATIONS OF ASSET DEVALUATION AND DEBT DEFLATION IN THE PURSUIT OF SUSTAINABLE DEVELOPMENT

In the past few years, economic efforts and policies of nations and businesses have been geared towards achieving sustainability. However, the general price level and other economic factors have not been so favorable for businesses over these years, especially in recent times, thus raising many questions in the area of sustainability of operations. Consequently, we examined the extent to which financial crises (measured by asset devaluation and debt deflation) threaten corporate survival using the case of selected Nigerian manufacturing companies. This descriptive study's population was 83 operations staff of selected manufacturing firms. Data for the study were gathered from 69 respondents who formed the study's sample. Pearson Product Moment Correlation was used as the procedure for data analyses, and evidence showed that asset devaluation and debt deflation significantly threaten firm liquidity and re-investment capabilities of manufacturing firms. This paper, thus, concluded that financial crises pose a significant threat to corporate sustainability. As a way forward, corporate organizations, especially those in the manufacturing business, should endeavor to maintain moderate capital and debt ratio while striving for survival to avoid the threats to liquidity and earnings re-investments; at the same time, national and state governments are encouraged to urgently institute measures to cushion the business effects of the financial crises as a further move to sustainable development.

ESG risks and corporate survival.

This research is the first attempt to examine the impact of corporate sustainability risks factors on its financial stability. By using S&P500 stocks data from 2019 to 2021 and calculating Altman's Z-score, we examined the influence of ESG (Environmental, Social, and Corporate Governance) risks score on the company survival chances. We documented diminishing total ESG scores of S&P500 stocks in recent years pointing out that companies pay attention to sustainability issues and invest resources to reduce them. We documented that Altman's Z-score is negatively influenced by E and S and not by G. These findings are very important since they prove for the first time that high environmental and social risks may reduce corporates' financial stability and rise their default risks incurring default costs. Moreover, high sensitivity of Altman's Z-score changes to S changes was found especially for relatively smaller firms. The result of this study emphasizes the importance of sustainability risk and especially social risk to a firm's survival chances and therefore mitigating those risks can dramatically improve corporates' financial stability.

Corporate Sustainability in the Wake of the COVID-19 Global Pandemic: Does CSR Enhance Corporate Survival during a Market Crisis?

This study investigates the effect of the COVID-19 global pandemic on the relationship between corporate social responsibility (CSR) and a firm’s sustainability. Prior studies on related topics empirically argue that CSR activities are highly likely to positively impact corporate sustainability. If this is true, firms that engage in CSR activities should demonstrate a higher degree of sustainability than their counterparts during the recent COVID-19 global pandemic. Using a sample of 390 Korean listed companies from 2019 to 2020, we find that CSR has no significant relationship with firm value variations as a proxy for sustainability during the COVID-19 global pandemic period. Our findings suggest that firms that engage in more active CSR activities do not appear to mitigate the market risk associated with the COVID-19 global pandemic compared to their counterparts who engage in less active CSR activities. That is, CSR does not provide a significant cushion that alleviates a firm’s market risk exposure, as heralded by COVID-19. Unlike previous studies that argue that CSR has positive effects on sustainability, our studies suggest that CSR’s impact on sustainability seems to be significantly lowered when uncontrollable market risks occur. It is important to note that this study has methodological limitations in that it was analyzed using proxy variables for CSR and sustainability measurement in Korea. For future studies, it would be insightful to expand the CSR concept to ESG and conduct research using longer-term data in the post-pandemic era.