Governance Management Research Articles

Combining life cycle assessment and dynamic qualitative comparative analysis to analyze the environmental impacts of urban development across different provinces in China

Examining the environmental pollution landscape is a vital link for urban development. Across production, distribution, and usage stages of 24 provinces in China between 2010 and 2019, this study conducts Life Cycle Assessment and Dynamic Qualitative Comparative Analysis to explore the effects of conditional combination on environmental impact assessment indicators including Photochemical Oxidation, Eutrophication, Global Warming Potential, Human Toxicity, and Acidification. The results reveal that: (1) Shandong contributes most significantly to environmental impact assessment indicators in the production and distribution stages, while Inner Mongolia dominates the usage stage. In contrast, Beijing, Hainan, and Shanghai show lower contributions, though Hainan exhibits a rising trend in the Global Warming Potential index across all stages; (2) The production stage consistently accounts for the largest environmental impact, with notable differences in contributions from Beijing, Ningxia, Inner Mongolia, and Shanghai across the three stages; (3) Environmental impact is not driven by individual factors alone; rather, it is the combination of factors that proves influential. Complex nonlinear relationships are revealed between energy consumption patterns and environmental impacts in the production stage. The combination of transport operating distance and traffic volume has an interaction during the distribution stage. The usage stage leads only to the environmental impact of Eutrophication, which is caused by the resident population and ecological water consumption excluding residential water use. These findings present a new strategy for optimizing energy structure and water resource utilization, and emphasize the synergies to reduce the environmental impacts, providing instrumental implications for policymakers and government managers in environmental management and urbanization development.

Governance and Risk Management in Sharia Banks and Financial Performance

General Background: The financial performance of Sharia commercial banks is crucial for Indonesia's economic growth. Specific Background: This study explores the impact of Good Corporate Governance (GCG), Internal Audit, and Risk Management on the financial performance of Sharia banks, particularly after the enactment of Law No. 21 of 2008. Knowledge Gap: Existing literature shows mixed results regarding the effects of these governance factors, indicating a need for comprehensive analysis in the context of Sharia banking. Aims: The research aims to assess how GCG, Internal Audit, and Risk Management affect financial performance from 2018 to 2021. Results: Analysis of 44 Sharia banks reveals that while Internal Audit negatively affects performance, GCG and Risk Management have significant positive impacts. Novelty: This study introduces a thorough examination of Risk Management alongside GCG and Internal Audit, enhancing the understanding of their roles in Sharia banking. Implications: Findings highlight the importance of strengthening governance frameworks in Sharia banks to improve financial performance, providing insights for investors and policymakers. Highlights: Good Corporate Governance and Risk Management significantly enhance financial performance in Sharia banks. Internal Audit shows a negative impact on the financial performance, emphasizing the need for effective implementation. The study addresses a gap in literature by examining the interplay of GCG, Internal Audit, and Risk Management in the Sharia banking sector. Keywords: Good Corporate Governance, Internal Audit, Risk Management, Financial Performance, Sharia Banks

Erratum for “Study on the Prototype of Platform Tools and Practice Related to the ‘Sustainability Scoring Index’ for Disaster Resilience of Local Governments in Japan” (Vol.19, pp. 631-644, 2024)

Due to an authors’ error, the original version of this article contained error in the in-text citations for tables in Section 4.1. The referenced table number should be corrected as follows: Now reads The self-assessment by the officials in charge of disaster management in the local governments was based on the Sustainability Scoring Index that was formulated by the authors for this study (Table 3). Should read The self-assessment by the officials in charge of disaster management in the local governments was based on the Sustainability Scoring Index that was formulated by the authors for this study (Table 2). The authors regret this error, and this error has now been corrected in the PDF version of the article.

Government Policy Influence on Land Use and Land Cover Changes: A 30-Year Analysis

This study investigated land use and land cover (LULC) patterns and changes in the Bandon Bay area of Thailand from 1991 to 2021 using satellite imagery, the first comprehensive effort to assess historical LULC trends over the past 30 years and forecast future LULC scenarios using the CA-Markov model for 2031, 2041, and 2051. Results showed the predominant LULC during 1991-2001 was the abandoned paddy fields, and during 2006-2021 was the oil palm plantations. During 1991-2001, the abandoned paddy fields changed significantly, with a net gain of 59.28 km2. From 2001-2011 and 2011-2021, the oil palm plantations experienced the most crucial change, with a net gain of 292.94 km2 and 70.06 km2. In 2031, 2041, and 2051, the LULC was predicted to be oil palms, shrimp farms, mangroves, and urban and built-up lands. The LULC changes were consistent with the government policies implemented and indicated government policy as a driving force in LULC dynamics on Bandon Bay area forestry, aquaculture, and agriculture, particularly on oil palm cultivation. Government management and regulation on land use is crucial for reducing the expansion of agricultural areas, especially oil palm plantations and aquaculture areas, to mitigate negative impacts on the Bandon Bay ecosystem. Doi: 10.28991/ESJ-2024-08-05-06 Full Text: PDF

Data governance & quality management—Innovation and breakthroughs across different fields

In today's rapidly evolving digital landscape, the substantial advance and rapid growth of data presents companies and their operations with a set of opportunities from different sources that can profoundly impact their competitiveness and success. The literature suggests that data can be considered a hidden weapon that fosters decision-making while determining a company's success in a rapidly changing market. Data are also used to support most organizational activities and decisions. As a result, information, effective data governance, and technology utilization will play a significant role in controlling and maximizing the value of enterprises. This article conducts an extensive methodological and systematic review of the data governance field, covering its key concepts, frameworks, and maturity assessment models. Our goal is to establish the current baseline of knowledge in this field while providing differentiated and unique insights, namely by exploring the relationship between data governance, data assurance, and digital forensics. By analyzing the existing literature, we seek to identify critical practices, challenges, and opportunities for improvement within the data governance discipline while providing organizations, practitioners, and scientists with the necessary knowledge and tools to guide them in the practical definition and application of data governance initiatives.

A multidisciplinary perspective on the role of plastic pollution in the triple planetary crisis

In this perspective paper, we discuss the negative impacts of plastics and associated chemicals on the triple planetary crisis of environmental pollution, climate change and biodiversity loss from a multidisciplinary perspective. Plastics are part of the pollution crisis, threatening ecosystems and human health. They also impact climate change and accelerate biodiversity loss; in this, they aggravate the triple planetary crisis. We analyze the scientific state-of-the-art to identify critical knowledge gaps regarding the life cycle, release, fate, exposure, hazard and governance of plastics and associated chemicals, as well as links to climate change and biodiversity loss. Based on the outcome, we derive key research needs for a comprehensive hazard assessment of plastics and associated chemicals, amongst others, to address the largely missing regulation of plastic additives and in-use plastics. We offer a holistic perspective bridging disciplinary expertise from natural and social sciences to achieve effective plastic governance and risk management of plastics and associated chemicals that protect the Earth, its ecosystems and human health from the plastics crisis.

Operational resilience implementation: Challenges and opportunities for UK building societies

Operational resilience is the preparedness and existence of resilient IT systems, processes and resources to provide services continuously during a disruption. This study examines the operational resilience implementation challenges and opportunities for UK building societies and wider financial institutions. The key challenges are resource constraints, understanding regulatory requirements, supplier concerns, domain knowledge, legacy systems and manual-driven processes. Some challenges are being addressed with awareness and training, improved governance and risk management, recruitment and industry support networks. The opportunities include realising the actual state of IT systems, adopting cloud solutions, resources and capabilities, as well as improved domain knowledge and a better understanding of services and markets. Regulators need to be more explicit about their expectations and requirements, while the industry needs to collaborate on setting up common frames of reference for operational resilience frameworks. Lastly, the study provides a holistic view of operational resilience, including its implementation and management challenges, control measures and emerging opportunities.

Does shared tenure between board of directors and CEO affect R&D investment?

Psychology literature suggests that shared tenure between individuals affects how they communicate and share information. Given that the relationship between board of directors and CEO involves extensive interactions and information-sharing to maintain shareholders' interests, this study seeks an answer as to whether that shared tenure between directors and CEO affects R&D investments. Using a sample of firms listed in the UK FTSE350 index between 2010 and 2019, we find that directors–CEO shared tenure positively affects R&D intensity. The study has implications for corporate governance and strategic management literature by highlighting Board–CEO shared tenure as a new factor affecting R&D investments. This study has implications for practice and policy-makers. In particular, companies that are eager to strengthen corporate governance and maintain sustained innovation might consider the shared tenure between directors and CEO.

Board Independence And Financial Distress: Insights From India

Resource Dependency Theory (RDT) posits that organizations depend on external resources to navigate uncertainty and sustain growth, with independent directors in corporate governance acting as key intermediaries, providing expertise, external networks, and strategic oversight. This study employs Panel [Random Effect (RE)] regression to analyze the impact of independent directors on the financial distress likelihood of 20 manufacturing companies listed on the NSE over the period 2019–2024. The findings reveal that firms with a higher number of independent directors exhibit a significantly higher risk of financial distress, reinforcing the notion that these directors aggravate financial vulnerabilities and enhance organizational instability. Background: Corporate frauds like the Satyam and Nirav Modi-PNB scandals highlight the severe consequences of deceptive practices, undermining financial markets and stakeholder trust. These incidents exposed vulnerabilities in governance and risk management, prompting regulatory reforms in India. Weak corporate governance facilitates fraud by allowing insufficient oversight and accountability. Recent reforms under the Companies Act, 2013, and SEBI's regulations aim to enhance transparency and reduce fraud risks. Strong corporate governance would be critical for financial stability, investor confidence, and achieving the "2047 Viksit Bharat" vision. Research explores how independent directors influence the likelihood of financial distress. Materials and Methods: This study investigates financial distress in manufacturing firms listed on the National Stock Exchange (NSE) through a panel data methodology. A random sample of 20 firms was selected to ensure representativeness, covering the period from 2019 to 2024, with banks and financial institutions excluded due to their distinct financial characteristics. Financial distress was assessed using the Altman Z-score, a widely recognized metric for evaluating financial distress. The independent variable in the study is Board Independence, i.e., the total number of independent directors on the Board. The control variables include Profitability, Leverage, and Activity. Panel data estimation techniques were used to address issues of endogeneity and heteroscedasticity. The Hausman test was conducted to determine whether to retain fixed or random effects for the analysis. Results: The Hausman test showed a p-value of 0.0.78 (greater than 0.05) which revealed that that random effect model is appropriate for the analysis. The analysis reveals a negative relationship between board independence and financial distress, indicating that an increase in the number of independent directors is associated with a higher likelihood of financial distress at 5% level of significance. Leverage significantly increases the likelihood of financial distress, while increased operational activity decreases it; Net Profit Margin is statistically insignificant. Conclusion: This finding challenges the conventional understanding of board independence, which is generally seen as a mechanism to enhance corporate governance by providing unbiased oversight, strategic guidance, and external resources

On certain areas of improvement of legal support for government management of scientific and technological development

On certain areas of improvement of legal support for government management of scientific and technological development

A governance and risk management framework for project management in the oil and gas industry

The oil and gas industry operates in an environment marked by high risks, complex regulations, and significant financial investments. Effective project management in this sector requires a robust governance and risk management framework to address operational, regulatory, financial, and environmental challenges. This review proposes a comprehensive governance and risk management framework tailored specifically to the unique needs of oil and gas projects. The framework integrates governance structures that define clear roles, responsibilities, and decision-making processes, ensuring that projects align with corporate objectives and compliance standards. Central to this framework is a risk management model that identifies, assesses, and mitigates potential project risks. The model emphasizes continuous risk monitoring, utilizing advanced technologies such as predictive analytics, AI, and digital twins to forecast risks and optimize decision-making. Additionally, it advocates for proactive stakeholder engagement strategies to ensure alignment among diverse stakeholders, including government agencies, investors, and local communities. The governance aspect of the framework promotes transparency, accountability, and sustainability, ensuring that projects meet both operational goals and regulatory requirements. It also introduces agile project management techniques to enhance flexibility and responsiveness throughout the project lifecycle. By integrating technological tools like blockchain for contract management and AI for predictive maintenance, the framework addresses both governance and risk management challenges. Ultimately, the review serves as a guide for oil and gas companies to enhance project efficiency, minimize risks, and meet the demands of an increasingly complex industry landscape.

Leadership and communication in sustainable management of local governments – a perspective of Slovak mayors

Leadership and communication in sustainable management of local governments – a perspective of Slovak mayors

The Psychological Mechanism of Moral Leadership Influencing Responsible Subordinate Behavior

As China’s anti-corruption campaign intensifies, several of those involved in various capacities in the public sector are demonstrating slackness, a lack of moral awareness, and a weakened sense of responsibility. This study analyzes the multiple mechanisms influencing the responsible behavior of public sector personnel by combining certain key factors, such as managers’ moral leadership style, psychological security, and the notion of interactive justice. Based on social information processing theory and social exchange theory, this study constructs a dual mediation model (psychological security and interactive justice) to explore the mediating psychological mechanism of moral leadership influencing employees’ responsible behavior. The results of a two-stage paired survey and structural equation modeling analysis of civil servants from 48 departments and eight units in Shandong and Henan provinces show that moral leadership positively impacts responsible behavior. Moreover, psychological security and interactive justice play a mediating role between them. Furthermore, this study elaborates upon the mechanism of moral leadership affecting the responsible behavior of employees, which is of great value for improving the efficiency of government management and guiding civil servants to behave more responsibly.

The Impact of Moderation Analysis Between Effective Project Governance and Project Performance Management in Malaysia’s Construction Industry

Objective - The building sector is essential to Malaysia's economic expansion. Despite its significance, large construction companies usually experience delays and project failure, affecting 95% of homebuyers due to 580 delayed projects in 2022. By February 28, 2023, 581 projects had been reported as delayed. Methodology/Technique – This study experimentally examines the relationship between effective project governance and project performance in 390 Malaysian construction companies, using a framework based on agency theory and assessed with partial least squares structured equation modeling. Finding – Benefit management serves as a mediator between project performance and effective project governance, and top management support has a positive moderating influence. Novelty – The study highlights the importance of preventive measures, enhancing team and project manager roles, and forming strategic alliances for improved project governance. Type of Paper: Empirical JEL Classification: H60, H61, M10, M11. Keywords: Effective project governance; project management risk; benefit management; top management support; project performance. Reference to this paper should be referred to as follows: Abdullah, F.C.B; Indiran, L; Krishnan, A; Pavithran, S.N. (2024). The Impact of Moderation Analysis Between Effective Project Governance and Project Performance Management in Malaysia’s Construction Industry, GATR-Global J. Bus. Soc. Sci. Review, 12(3), 114–124. https://doi.org/10.35609/gjbssr.2024.12.3(2)

Examining the discrepancy and synergy between marine protected areas and fisheries management in the Bohai Sea, China

Marine protected areas (MPAs) and other area-based conservation measures used in conjunction with climate-smart fisheries management approaches are important for safeguarding ecosystem and fish population health. However, spatial management approaches are often implemented separately from non-spatial management interventions due to their distinct legislative processes, management priorities, and administrating agencies. As global ocean governance becomes increasingly spatial in compliance with the Kunming-Montreal Global Biodiversity Framework, it is imperative to examine the utility of MPAs as a wider ecosystem approach to complement traditional, single species fisheries management. In this study, we examine current policy and management transformations happening in the Bohai Sea in China and demonstrate the discrepancies and synergies between MPA governance and fisheries management. By evaluating their interactions in objective setting, area selection, and management regulations, we reveal the gaps in coordination and consultancy between the government agencies implementing fisheries and spatial conservation measures. In particular, there is ambiguity or lack of consideration of fisheries management objectives in the framing of conservation area objectives and regulations, and vice versa. In addition, the mismatch between stated objectives of MPAs and their geographic coverage of species distribution ranges suggests insufficient incorporation of fishery expertise in conservation planning. To strengthen the cooperation between fisheries and conservation authorities, we identify opportunities and actions for synergizing management goals and ecosystem-based approaches, improving the design of spatial restrictions, and better integrating spatial management interventions as a critical fisheries and ecosystem-based management approach. These proposed changes will necessitate the creation of processes for engaging the full spectrum of expertise and actors, enhancing collaborations at multiple scales and between different sectors. These findings offer practical insights into bridging the gap between fisheries management and MPAs and could inform further decisions on integrated management in the Bohai Sea and elsewhere.

A geospatial assessment of the resilience of municipal water supply to flooding in Nowshera District, Pakistan

Post-disaster functionality of the potable water supply infrastructure is crucial for maintaining public health and safety. The failure of the water supply system may harm inhabitants and significant users, which can impact other services and various types of infrastructures. It is vital to assess climate change impacts on water resources to ensure resilience and sustainable management. The study assessed the resilience of 22 municipal water schemes using an indicator-based framework, How Tough is Wash (HTIW), across six domains: environment, infrastructure, community governance, water supply management, supply chains, and institutional support. The sites of municipal water supply were purposively selected based on specific criteria to include those water supply schemes which have been directly affected by flooding or are vulnerable to the impact of the flood. The resilience scores ranged from (6 to 7.5) for schemes with very low resilience, (7.5 to 10.5) for those classified as poor, and (10.6 to 16.5) for schemes considered moderately resilient. It was discovered that protective measures against the risk of flood were negligible. Community engagement governance and water supply management needed to be stronger. Local governments can pinpoint current advantages and disadvantages by utilizing these metrics and their impact on the public water supply's resilience and strategically allocate resources for optimal outcomes. Furthermore, the metrics that have been suggested simplify and unify the multiple dimensions of the elements, enabling decision-makers to optimize the measures.

Machine learning embedded hybrid MCDM model to mitigate decision uncertainty in transport safety planning for OAS countries

Providing defensible decisions is a prerequisite for methodologies of multi-criteria decision-making (MCDM) activities, and this is especially true for socio-economic analysis in public sector. This study proposes an all-in-one MCDM model with machine learning algorithms. The model integrates the method based on the removal effects of criteria (MEREC), combined compromise solution (CoCoSo), and density-based spatial clustering of applications with noise (DBSCAN), i.e., MEREC–CoCoSo–DBSCAN. In particular, the uniform manifold approximation and projection (UMAP) is implanted in DBSCAN to reduce the data dimensionality, and the k-nearest neighbors (KNN) algorithm is embedded to determine the inflection points (ɛ) and minPts in the data. This counters the inherent model failure of DBSCAN in dealing with high-dimensional data and eliminates the requirement for manual intervention in the model procedure, thereby fully avoiding potential human error and automating the computing process. A case study on benchmarking transport safety systems for member countries of the Organization of American States (OAS) demonstrates the reliability, adaptability, and efficiency of the proposed model. It moreover reflects its feasibility in resolving real-life socio-economic issues by offering valuable insights and potential solutions in economic investment and funding allocation in regard to transport safety strategy. Overall, this study provides government officials, managers, and policymakers with a valuable tool for handling MCDM activities in socio-economic development with considerable practicality and credibility.

Mitigating managerial short-sightedness in green technology innovation and corporate financial performance: The role of “National Team” shareholding

The potential for green technology innovation (GTI) to enhance corporate financial performance continues to be the core motivation for sustained investment by companies. However, the micro-mechanisms to enhancing financial performance have not yet received sufficient attention in the academic literature. Internal corporate governance and corporate management constitute crucial factors that affect the process in which GTI contributes to corporate technological progress, and to the enhancement of corporate financial performance. Specifically, this paper will examine the role of “National Team” shareholding in corporate governance in mitigating managerial short-sightedness in GTI. A two-way fixed effects panel OLS model will be applied for individual-time on 618 listed companies with consistent R&D activities from 2015 to 2022. The results show that corporate GTI promotes corporate financial performance via technological progress. Through the conditional process analysis, it shows that the interaction of CEO narcissism and the “National Team” shareholding proportion together moderate the relationship between corporate GTI and technological progress, with the “National Team” shareholding proportion contributing to the impact of technological progress on corporate financial performance. From a corporate governance point of view, the presence of institutional investors helps mitigate the negative impact of managerial short-sightedness in technological progress.

Meta-Analyzing the Trust-Performance Link in Collaboration: Moderating Effects of Conceptual and Contextual Factors

Trust is vital for effective collaboration, but its impact on collaboration performance has produced inconsistent findings. This study examines the trust-collaboration performance link by testing the moderating effects of diverse conceptual and contextual factors. Through a comprehensive meta-analysis of 31 empirical studies, we synthesize siloed findings and offer a systematic and evidence-based examination of the trust-collaboration performance link. Our findings show that the trust-collaboration performance relationship is positive and stronger when trust is cognition-based rather than affect-based, when performance content focuses on process and outcomes, and when performance is subjectively measured. In addition, trust is more important in low generalized trust countries and in cross-sectoral or nonprofit collaboration. These moderation effects manifest differently in different collaboration forms, with trust playing a less salient role in contracting. These findings unravel the nuanced dynamics of trust within collaboration and have substantial implications for scholars and practitioners in collaborative governance and network management.

Status, Sources, and Risks of Heavy Metals in Surface Sediments of Baiyangdian Lake and Inflow Rivers, North China

Baiyangdian Lake, recognized as the largest freshwater body in northern China, plays a vital role in maintaining the regional eco-environment. Prior studies have pointed out the contamination of sediments with heavy metals, raising concerns about eco-environmental challenges. Therefore, it is imperative to evaluate the current pollution levels and ecological threats related to heavy metals found in the sediments of Baiyangdian Lake as well as in its inflow rivers. In May 2022, surface sediments with a depth of less than 20 cm were analyzed for Cu, Zn, Pb, Cr, Ni, As, Cd, and Hg to determine the pollution status, identify sources of pollution, and evaluate potential ecological risks. A range of evaluation methods used by predecessors such as geo-accumulation index (Igeo), enrichment factor (EF), ecological risk index (RI), sediment quality guidelines (SQGs), positive matrix factorization (PMF), absolute principal component score-multiple linear regression model (APCS-MLR), chemical mass balance (CMB), and UNMIX model were analyzed. After comparison, multi-methods including the geo-accumulation index (Igeo), absolute principal component score-multiple linear regression model (APCS-MLR), ecological risk index (RI), and sediment quality guidelines (SQGs) were utilized this time, leading to a better result. Findings reveal that pollution levels are generally low or non-existent, with only 1.64% of sampling sites showing close to moderate pollution levels for Cu, Pb, and Zn, and 4.92% and 1.64% of sites exhibiting close to moderate and moderate pollution levels for Cd, respectively. The main contributors to heavy metal presence are pinpointed as industrial wastewater discharge, particularly Cu, Zn, Pb, Cd, and Hg. The ecological risks are also relatively low, with 4.92%, 1.64%, and 1.64% of sampling sites demonstrating close to moderate, moderate, and strong risks in the inflow rivers, respectively. Additionally, only one site shows moderate potential biological toxicity, while the rest display non-toxicity. These findings will update our cognition and offer a scientific basis for pollution treatment and ecosystem enhancement for government management.