Firm Leadership Research Articles

Revolutionising the ready-made garments firms in Bangladesh: strategies for transformative change towards sustainable product innovation

ABSTRACT Ready-Made Garments (RMG) firms, particularly in developing economies such as Bangladesh, struggles to integrate sustainability into its operations and product innovation. Limited supportive policies and institutions exacerbate this challenge, hindering the industry's ability to produce high-standard and globally competitive sustainable products. Drawing on case studies of Bangladesh’s RMG firms, this qualitative paper aims to identify potential strategies and commitments to drive transformative change in the RMG firms towards sustainable product innovation. It addresses the main questions on the drivers of transformative change in sustainable product innovation, as well as firm leadership responses to sustainable development. Key findings from key informant interviews (KII) and focus group discussions (FGD) indicate drivers and strategies for transformative change towards sustainable product innovation in five dimensions: sustainability practices, market demands, firms’ commitments and initiatives, policy and regulatory framework, and technology and innovation. The findings of the paper highlights policy insights and leadership roles that contribute to a comprehensive understanding of the crucial factors and guidelines for initiating transformative changes in the RMG firms towards sustainable products. Also, a framework with insights from stakeholders is developed based on the findings to provide leadership guidance and recommendations for companies in the RMG sector and other related industries.

Leadership in small business environments: from the heroic model to distributed approach

Purpose This study explores the process of interactions experienced by leaders during the evolution of the small firm. Three key propositions are conceptualized into a model with the main aim of supporting leaders of small organizations in understanding better the leadership phenomena. Design/methodology/approach This qualitative research project investigates the dynamics of leadership in small businesses through an inductive and abductive approach, inherent to grounded theory. This enabled the development of propositions directly from data. Field research involved responsive interviews with 12 established small enterprise leaders. Selective and theoretical sampling coupled with ongoing data comparison and analysis were applied to uncover and refine emerging leadership concepts. Findings Intellectual assets of leaders in small firms propel the recognition and sensitivity to the process of organizational evolution which requires a continuous adaptation of the leadership paradigm. Research limitations/implications The researchers’ philosophical stance to construct reality based on the participants own experiences, cannot produce generalized findings on the subject area. Practical implications Enhanced Decision-Making and Strategic Planning: Small business leaders can leverage their academic and industry backgrounds to make more informed and strategic decisions. Facilitating Organizational Change: By understanding the necessity of continuous change, small business leaders can implement frameworks that encourage flexibility and adaptability within their organizations. Adopting Distributed Leadership: Encouraging small business owners to move away from centralized control towards a more distributed leadership model can lead to better organizational outcomes. Originality/value A considerable amount of research has been devoted to leadership in the past decades. There is very little evidence on behavioral patterns of leaders, grounded in data within the context of the Small Firm aimed at the practitioner. This work is contribution towards this shortfall.

Factors Affecting the Labor Productivity of Garment Firms in Nam Dinh Province, Vietnam

Under the impacts of the 4th Industrial Revolution, garment firms in Vietnam are facing various challenges, and improvement in their labor productivity is one of the important measures to overcome these challenges. This study, therefore, investigated the determinants of the labor productivity of garment firms in Nam Dinh province. The data used for this study were extracted from the Enterprise Survey Dataset in 2021, and descriptive statistics, comparative analysis, and the Cobb-Douglas function in logarithm form were the major methods employed for the study. The study findings underscored the positive impacts of fixed assets and business management costs, average payments to employees, exporting activities, and the utilization of internet resources on labor productivity. The study revealed that firm size, gender composition, and age of firm leaders do not significantly influence labor productivity, emphasizing the complexity and industry-specific nuances of these relationships. Based on the insights gained from the study, several strategic suggestions were proposed to improve the labor productivity of garment firms in Nam Dinh province in the future.

Sustainable performance and supply chain leadership in logistic firms: the role of corporate sustainability strategies and digital supply chain

Purpose This study aims to investigate the relationship between supply chain leadership, digital supply chain practices and corporate sustainability strategies on the sustainability performance of logistics firms in Nigeria, one of Africa’s largest economies. It indicates that collaborative efforts within the supply chain context can improve sustainability performance. Design/methodology/approach Data from 468 firms in a major sub-Saharan African market were collected through a structured questionnaire. The analysis used descriptive statistics, principal component analysis and hierarchical regression analysis. Factor analysis and Cronbach’s alpha analysis were used to assess the validity and reliability of the instrument. Findings The results of this study reveal significant findings: proactive sustainability strategies exert a substantial positive effect on sustainability performance (β = 0.694, SE = 0.025, p < 0.01). Even when proactive sustainability strategies are included in the model, the positive impact of reactive sustainability strategies remains significant (β = 0.694, SE = 0.025, p < 0.01: Model 5). Regarding the moderating role of proactive and reactive corporate sustainability strategies, there is a notable interaction effect between supply chain leadership and proactive sustainability strategies concerning sustainability performance (p < 0.05). This confirms the positive relationship between supply chain leadership and sustainability performance when proactive sustainability strategies are at a high level (β = 0.844, SE = 0.0010, p < 0.01), supporting H4 that this relationship strengthens with higher levels of proactive sustainability strategies. Conversely, for Hypothesis H5, the interaction effect of reactive sustainability strategies with supply chain leadership changes the relationship from significantly positive to significantly negative (β = −0.068, SE = 0.0009, p < 0.01). Using the Baron and Kenny approach to test mediation, the mediating effect of digital supply on digital leadership is significant (β = 0.345, p = 0.000, p < 0.01). Furthermore, the effect of digital supply on sustainability performance is statistically significant (β = 0.081, p = 0.006, p < 0.01), as is the effect of digital leadership on sustainability performance (β = 0.181, p = 0.000, p < 0.01). These results indicate a mediation effect of digital supply. Research limitations/implications This study of logistic management has limitations, including its cross-sectional nature, which precludes the establishment of causality, thus necessitating longitudinal research to determine causal relationships. In addition, the focus on Nigerian firms, which vary significantly in their stages of learning and institutional development, emphasizes the need for further research in diverse contexts. Future studies should examine alternative institutional environments or developed economies to validate these assumptions. Another limitation is the potential for bias due to six employees rating their firms on each variable; therefore, using multiple data sources is recommended to objectively evaluate the validity of the self-reported questionnaire. Practical implications This study advises managers to exercise caution when selecting between proactive and reactive sustainability strategies to enhance sustainability performance. Proactive strategies reinforce the relationship between supply chain leadership and sustainability performance, while reactive strategies diminish it. Therefore, managers are encouraged to adopt more proactive strategies. This paper suggests that managers in emerging economies should recognize the distinct impacts of proactive sustainability strategies and allocate more resources toward them to improve sustainability performance, even in competitive markets. In addition, it highlights the importance of digital supply in fostering sustainability performance. Originality/value This study presents a novel perspective on the moderating role of corporate sustainability strategies in the relationship between supply chain leadership and the sustainability performance of logistics firms. It provides empirical evidence and fresh insights on proactive and reactive sustainability strategies for logistics firms in Nigeria. The findings highlight that proactive sustainability strategies enhance the connection between supply chain leadership and sustainability performance, whereas reactive strategies do not.

Do Firms Follow through on Environmental Commitments? An Empirical Examination

In response to ever-increasing pressure from stakeholders to reduce the impact of their operations and supply chain on the natural environment, firms frequently make public commitments to improve environmental performance. However, the commitments are difficult to validate and thus of unknown quality. Understanding whether and when the commitments are valid proxies for action is essential because they are used by environmentally conscious stakeholders to assess firm environmental performance in anticipation of buying from, investing in, working for, or selling to a firm. Results from examining 442 U.S. manufacturing firms show that firms generally follow through on such commitments. Larger firms and firms with better environmental performance are more likely to follow through. However, firms tend not to follow through if they are experiencing negative environmental publicity or resource constraints at the time of the commitment. The results provide important insights for environmentally conscious stakeholders who use the commitments to determine whether to buy from, invest in, work for, or supply to a firm. The study also highlights the benefits to firm leaders of following through and provides input towards ideas that can increase follow-through. Finally, the study contributes to several streams of the research literature, including the literature evaluating environmental management, environment commitments, and environmental accidents.

A study of Firm Leaders

This research was conducted to evaluate and measure the capabilities of management and operating small and medium-sized enterprises in Hai Phong City. Small and medium-sized enterprises in Hai Phong City with limited resources are facing fierce competition in the context of increasingly deep international integration. A survey was conducted through the analysis of survey data from 210 respondents working in small and medium-sized enterprises in Hai Phong City, including middle managers and employees. Analytical methods such as independent t-tests and ANOVA analyses are used to test and measure the scales. Analysis results based on descriptive statistical methods, comparison methods with an independent T-test, and ANOVA analysis show that, there is no statistically significant difference in the capabilities of management and operating small and medium-sized enterprises in Hai Phong City of Leaders between these different genders, job position, labor scale, and main business sectors. There is a statistically significant difference in the capabilities of management and operating small and medium-sized enterprises in Hai Phong City of Leaders between these different academic levels, and professional seniority. This research uses the contents of the theoretical and practical basis for human resource management in general and the capabilities of management and operating firm leaders in particular. Within the context of international economic integration, these variables are useful solutions for SMEs. The paper's primary contribution is findings that benefit the SMEs in Hai Phong City in the improvement of their scale expansion and business performance. Therefore, SMEs should focus on enhancing the capacity of their board of directors, thereby improving their leadership and management capabilities and contributing to improved business performance.

Shattering the glass ceiling: Female leadership and acquisitiveness in family and nonfamily firms

This research investigates the impact of female CEOs on mergers and acquisitions (M&As) in family and nonfamily firms. With a sample of 165 Italian listed companies engaged in M&As from 2011 to 2016, the study explores whether CEO gender impacts on firm's acquisitiveness in family and nonfamily firms. Findings indicate that having a female CEO is associated with lower acquisitiveness overall. However, this trend is not consistently observed in family firms, challenging conventional assumptions. This research contributes to understanding the nuanced dynamics of female leadership and M&As, shedding light on the role of CEO gender in distinct ownership contexts.

Leadership Succession and Transgenerational Entrepreneurship in Family Firms: an Evolutionary Perspective of Familiness

This article analyses how familiness influences the evolution of entrepreneurial actions undertaken by new-generation family leaders. Despite the recognised importance of familiness in family firms’ entrepreneurship, the mechanism by which it influences transgenerational entrepreneurship during leadership succession remains largely unexplored. Through qualitative analysis of the entrepreneurial processes carried out by five multigenerational family firms, we identify how resources associated with familiness shape strategic renewal and their evolution across the transgenerational entrepreneurship process. Our results shed light on the critical role of leaders’ managerial capabilities in orchestrating the resources of family firms and engaging key stakeholders to support entrepreneurial ventures and growth opportunities. Among the practical contributions, the article offers a set of strategies for assisting new leaders of family firms in their entrepreneurial pursuits.

The enterprise activism risk model: How good intentions can jeopardize business success

Companies are increasingly expected to contribute, above and beyond a profit motive, to society. Leaders across industries have addressed the expectation by engaging in activism. While some upper echelons leaders initiate activism efforts in a way that strengthens their firms, others are struggling to do so without risking brand and business performance. This research addresses this important managerial challenge by conceptualizing activism through a risk paradigm. To do this, we first introduce and define a construct called Enterprise Activism. The construct comprises all forms of firm-initiated activism which can impact brand and business performance, such as brand activism, CEO activism, and corporate activism, regardless of who is making the decision (e.g., Chief Marketing Officer or store manager) or whether a portfolio brand or the corporate brand is involved (e.g., Harris Teeter or the corporate brand, Kroger). We then conceptualize the Enterprise Activism Risk Model, providing insight into how different types of actions can pose market share and positional advantage risks. Leveraging insight from C-level leaders, we identify ways that firm leaders can deploy the model to advance business practice. Finally, we provide a research agenda to develop new theory and evidence to help support and improve practice. The new insight provided herein provides a framework that can enable upper echelons leaders to evaluate, discuss, and navigate activism to minimize business risk.

Assessing digital capability for twin transition and profitability: From firm and people perspectives with leadership support as moderator

AbstractDigital capability encompasses the skills and attitudes that firms and employees need to thrive in the modern digital era. Digital capability of a firm involves the effective adoption and use of modern digital technologies such as Industry 4.0. From the individual perspective, digital capability is referred to as knowledge and skill sets of people which are essential to work in digitally enabled firms. Not many studies have been conducted to assess how digital capability can help in twin transition, that is, both at individual and firm levels, and how such digital capability can help in improving profitability for the firms. There is also a lack of studies exploring how firm leadership support can enhance digital capability to improve both organizational and employee performance. In this background, the aim of this study is to assess the role of digital capability for both firm and people perspectives with leadership support as moderator. With the support of resource‐based view (RBV) and literature, a research model was prepared conceptually which was later validated using PLS‐SEM technique considering 348 responses from employees of different types of industries. Based on the analysis of feedback from participants in India, this study has reached a specific conclusion. Consequently, the results suffer from external validity issues which have been considered as one of the critical limitations of this study. It has been demonstrated that impacts of digital competency could improve both people and firm performance enhancing the profitability of the firms. Such enhancement of profitability is facilitated by the impact of leadership support.

Partner-Track Aspirations in Public Accounting: Comparisons between Partners and Nonpartners

SYNOPSIS Partner aspirations (i.e., an employee’s desire to make partner) benefit accounting firms by promoting succession planning and reducing unwanted employee turnover. Further, female partner aspirations are critical for firms striving to achieve gender equity at the partner level. Prior research has begun to examine partner aspirations (e.g., Jones and Iyer 2020); however, little is known about how partner and nonpartner attitudes and values differ regarding the benefits and sacrifices required of the partner track. We survey 224 public accounting professionals (101 partners and 123 nonpartners) to systematically compare partner and nonpartner attitudes and values. By identifying mismatches in perceptions between these two groups, our results direct firm leadership to specific issues most detrimental to partner aspirations. Our comparisons by gender provide further insight into specific issues that firms need to address to increase female partner aspirations.

Determination Of Factors That Influence Employee Performance

The objective of this research is to examine empirical data demonstrating how a leader's style affects work discipline and employee performance. This research employed a census methodology, using 150 employees of PT. SurajBraja Cukup Rupiah as respondents, representing the entire population. Structural Equation Modeling (SEM) is the data analysis method used. The findings demonstrated that work discipline and employee performance were positively and significantly influenced by leadership style. While employee performance is not directly impacted by a leader's style, it is indirectly affected. These findings demonstrate that increased work discipline and staff performance follow from a stronger leadership style. Optimal performance can be improved by firm leadership exercising more discipline in the workplace.

Varieties of engagement: Japanese corporate leaders’ strategic relations with foreign shareholders and institutional change

PurposeApplying the concept of “entrepreneur managers” from dynamic capabilities theory to the question of how some Japanese managers develop and use their relationships with foreign investors, this article explores organizational contexts in which Japanese managers use foreign shareholders as resources to enhance firm capabilities in the global marketplace, deploy assets effectively and implement changes to traditional organizational customs. The article asks why and how some top managers implemented institutional changes and adopted customs that are common in the shareholder-based system while others did not.Design/methodology/approachWe conducted qualitative interviews with 11 inverstor relations (IR) managers of large, listed Japanese firms in Kyoto and Tokyo.FindingsFirst, by inviting a hedge fund partner and using their human capital and social capital, a Japanese CEO committed to strengthening his firm’s competencies in the global market and introduced changes that are common in the shareholder-based system. Second, a CEO with an MBA degree and exceptional communication skills in English and Japanese dedicated himself to executing much of the strategic advice suggested to him by foreign shareholders and altered some of his firm’s traditional Japanese management practices. Third, even though many Japanese firms welcomed and used foreign shareholders as advisors to help them streamline and/or acquire firm assets, their top leaders’ implementation of organizational changes was limited. Fourth, the top leaders of family-owned firms were reluctant to initiate dialogue with foreign investors.Originality/valueThis article adds some useful organizational context to existing scholarship on institutional theory by examining Japanese leaders’ strategic management in their relations with foreign investors. Using the concept of dynamic capabilities, it addresses the role of innovative strategic managers in firms’ institutional changes.

Measuring an audit quality climate among employees

The International Standard on Quality Management requires, among other things, that audit firm leadership promotes a quality‐oriented culture in firms. We add a novel contribution to the audit quality literature by developing an instrument to measure the audit quality climate in audit firms. Our data consisted of perceptions of non‐executive employees at large South African audit firms and the Auditor‐General of South Africa. Instrument development followed a rigorous scale development process, beginning with the adaptation of a widely used organizational climate measure to explore audit quality at employee level. Exploratory factor analysis determined six audit quality climate dimensions. Confirmatory factor analysis provided evidence of construct validity. The six dimensions of our audit quality climate measurement instrument fit into the three types of culture currently identified in audit firms. The findings of our study are a starting point to develop an acceptable audit quality climate scale for employees in audit firms.

Blue versus red: partisan firm leaders and corporate culture

Abstract This paper documents significant partisan divides across a range of corporate cultural values. Using panel data of 2,424 S&P 1500 firms spanning the period from 2001 to 2018, we find that firms whose top management teams lean toward the Democratic Party exhibit higher cultural values of integrity, teamwork, innovation, respect, and quality, in comparison with firms with executives leaning toward the Republican Party. In addition, we find that the partisan gap diminishes when firms have less entrenched management or locate in states with stronger judicial accountability. Our findings lend support to earlier research suggesting that leader characteristics are associated with corporate culture.

Relationship between open innovation and innovation performance within high-tech firms: The mediating role of knowledge management capability

In the current competitive global marketplace, innovation is key for high-tech firms to thrive. Open innovation offers a promising approach, but its effectiveness remains unclear. Therefore, this research explored the connection between open innovation, knowledge management capability, and innovation performance within high-tech firms. We used a mediation approach to highlight the central role of knowledge management capability in the relationship between open innovation and innovation performance. We used a survey questionnaire approach to collect data from the 462 employees of high-tech firms on open innovation, knowledge management capability, and innovation performance using a convenient sampling technique. We used partial least square structural equations modeling through PLS-SEM statistics. Results indicated that open innovation has a direct, positive and significant connection with innovation performance. Similarly, the current research serves as a pioneering exploration into mediation analysis, highlighting the mediating role of knowledge management capability that influences the relationship between open innovation and innovation performance. Empirical studies offer valuable insights for leaders of high-tech firms, guiding them to identify effective knowledge management practices and determine the ideal extent of open innovation to boost innovation performance. The current study reveals novel insights into the benefits of knowledge management capability in enhancing open innovation efforts within firms. This research provides valuable implications and future research directions.

Data analytics strategy and internal information quality

AbstractI examine whether a strategic focus on data analytics is associated with improvements in firms' internal information quality. Using textual analysis of firm disclosures to identify a data analytics strategy, I first document that firm, leadership, and operating environment characteristics are all important determinants of the decision to adopt a data analytics strategy. I next use operating and financial reporting outcomes to infer whether a data analytics strategy improves internal information quality. I find that a data analytics strategy is associated with enhanced operating efficiency, as adopting firms invest and utilize existing resources more efficiently. I also find that a data analytics strategy is associated with more accurate management forecasts. These results, collectively, are consistent with a data analytics strategy improving firms' internal information quality. Lastly, I corroborate and extend my findings with job postings data, and the results suggest that firm leadership signals their support for data analytics initiatives through disclosure.

CEO Type and Firm Performance: Evidence from Nasdaq Baltic

Despite the well-established characteristics of shareholder-CEOs and professional-CEOs, previous research has yielded inconclusive findings on the actual impact of the separation of shareholding and management on firm financial performance. This study aimed to address this gap by going off the beaten path of research centered on the U.S.-listed firms and investigating 55 firms listed on the Nasdaq Baltic market in the post-Soviet countries of Estonia, Latvia, and Lithuania from 2017 to 2021. While professional-CEO-led firms displayed higher Tobin’s Q (M = 1.37) compared to shareholder-CEO-led firms (M = 1.17), and shareholder-CEO-led firms had a higher average ROE (M = 7.76%) compared to professional-CEO-led firms (M = -1.74%), independent samples t-test analysis revealed that these differences in either stock market performance (p = .250 > .05) or shareholder return (p = .193 > .05) were statistically insignificant. These findings challenge organizational life cycle theory and agency theory predictions, aligning instead with stewardship theory and upper echelons theory, suggesting that CEO characteristics, motivation, and actions, while clearly distinct for shareholder-CEOs and professional-CEOs, are not the sole determinant of financial performance in mature firms. Accordingly, shareholder-CEOs, other stockholders, and boards of directors should draw support from these findings in their considerations regarding firm leadership.

Gender of firm leadership and environmental, social and governance (ESG) reporting: evidence from banks listed on Ghana Stock Exchange

PurposeThis study aims to examine how woman corporate leadership indicators and environmental, social and governance (ESG) disclosure in listed banks on Ghana Stock Exchange are related.Design/methodology/approachData was obtained from the audited annual reports of the banks for the period 2006–2020. Empirical result estimation was achieved using Panel Corrected Standard Errors.FindingsThe result revealed that female chief executive officer (CEO), female board chairperson and board gender diversity are associated with higher disclosure of ESG issues in listed banks in Ghana in overall terms. However, in terms of individual disclosures, female board chairperson positively impacts social disclosure, whereas both female CEO and female board chairperson affect governance disclosure positively.Research limitations/implicationsIn this era of business where there is much emphasis on green business and investment by various stakeholders for purposes of ensuring business legitimacy, the result implies that banks must consider females to occupy the positions of CEO and board chairperson since that can help to improve ESG performance of banks.Practical implicationsIn this era of business where there is much emphasis on green business, socially responsible investment and impact investment by various stakeholders, the result implies that banks must consider improving the representation of women in leadership since that can help to improve ESG performance of banks and hence ability to attract more investors.Originality/valueTo the best of the authors’ knowledge, this is the first study to provide empirical evidence from a developing country perspective in Sub-Saharan Africa that gender of bank leadership has implications for ESG disclosure.

Relationship between Profitability Indicators and Maximization Market Value A dded a nd I ntr insic for the I ndustr ial Companies

Purpose: This research aims to study the impact of profitability indicators on maximizing the market value added and intrinsic value for industrial companies listed on the Iraq Stock Exchange. Design/methodology/approach: The research was structured using the analysis study method, incorporating various financial indicators, such as Net Profit Margin, Basic Earning Power, Return on Assets, Return on Equity, to examine their impact on market value added and intrinsic value. Findings: The researchers utilized financial data form fourteen industrial companies operating in Iraq ; listed in the financial market, spanning the period from 2011 to 2022. The data underwent analysis employing financial methods and various statistical tools, including single and multiple regression analysis as well as transaction analysis. The results revealed that the profitability indicators adopted by the studied companies exerted varied effects on maximizing the market value or intrinsic value. This variance was observed in accordance with the nature and orientations of each company. The underlying reason for this variation can be attributed to the direct relationship of the financial indicators used directly with the investors, thereby influencing management decisions. Research limitations/implications: The paper focuses on four variables representatives of firm profitability indicators to maximize both the market value added and the intrinsic value; it is necessary expanding the independent variables. Originality/value: This research contributes to the literature on Maximizing value levels for industrial companies. It aids firm leaders and decision-makers understanding the significant role of profitability indicators in maximizing value in financial markets by offering a more comprehensive view of their effectiveness.