Impact Of Long-term Orientation Research Articles

The impact of long-term orientation on the resilience of niche leaders

The impact of long-term orientation on the resilience of niche leaders

The impact of long-term orientation on compulsive buying behavior: A cross-cultural study.

The overall purpose of this study was to investigate the wider impacts of cultural values on consumer compulsive buying from a cross-cultural perspective. This study considers the long-term orientation as an extended antecedent to explore the moderating role of materialism value and money attitude on compulsive buying behavior in different cultures. Survey results from 313 Chinese and 309 U.S. consumers indicate that the higher materialistic values drive compulsive buying though some differences exist between consumers in both countries. To specify, American buyers had a higher materialistic orientation and higher compulsive buying tendencies than Chinese consumers. Furthermore, the results indicate that money attitudes are negatively related to compulsive buying behaviors among two countries' consumers. Lastly, this study found that long-term orientations were found to significantly influence money attitudes and compulsive buying among Chinese consumers.

Board Long-Term Orientation, Earnings Management, Disclosure and Risk

Short-term thinking continues to dominate corporate decision making due to the pressure to achieve expected quarterly earnings. As such, strategic goals take a back seat to short-term performance among the prime objectives of CEOs, the board of directors and management teams. Be that as it may, shareholders and stakeholders expect corporate leaders to pay equal attention to the long-term health of the corporate enterprise. An empirical study is conduced to test how long-term oriented board of directors diminish earnings management, increase disclosure and reduce risk. The results show that a long-term board orientation decreases earnings smoothing, stock price synchronicity and downside risk. To study this relationship, we construct a panel data from 2004 to 2015 comprising of 2834 OECD country firms. We conclude that board independence, board expertise and board audit committee activity increase long-term firm orientation. We find that boards with these characteristics are prone to the implementation of executives’ long-term incentives, suggesting that a long-term orientation is beneficial not only to increase firms’ transparency and disclosure but also to reduce firms’ downside risk. Firms with long-term orientation reveal enough information to avoid stock price synchronicity, prevent the use of earnings management to conceal real firm performance and reduce downside risk - all decreasing the chance of financial failure. The results of the study not only nullify the arguments that there is no impact of long-term orientation and long-term incentives but also bolster and enrich the stream of literature that supports these variables’ impact on earnings management, stock price synchronicity and downside risk. Within the context of the international setting of the paper, we have substantiated the external validity of the results across geographies and country-wide regulations.

The Impact of Long-Term Orientation on Family Firms’ Innovation: A Multiple Case Study

Drawing on Lumpkin and Brigham’s (2011) conceptual long-term orientation (LTO) framework, we engage in multiple case study research to explore how family firm innovation manifests via the LTO dimen...

The impact of long-term orientation on decision making process

While time has long been recognized as an important dimension in strategy research, few studies have explored how decision makers’ perception of time drives firm strategic decision making processes...

The Effect of Long Term Orientation on Subsidiary Ownership, Expatriate Staffing, and Subsidiary Survival

This paper examines the link between the long term orientation (LTO) dimension of national culture to transaction cost economics and relational exchange theory. Hypotheses were developed on the impact of LTO on multinational corporations’ (MNCs’) subsidiary ownership and expatriate staffing strategies and on subsequent subsidiary survival. We used a sample of 10,244 overseas subsidiaries established by 1,292 Japanese MNCs in 30 host countries to test our hypotheses. Results showed that: i) LTO has a positive effect on ownership and expatriate staffing levels; ii) there is a positive interaction between LTO and cultural distance (CD) on ownership and expatriate staffing levels; iii) LTO has a positive effect on subsidiary survival; iv) the positive relationship between LTO and subsidiary survival is stronger when MNCs assume higher ownership and expatriate levels; and v) there is a positive interaction between LTO and CD on subsidiary survival. The theoretical and practical implications of these findings are discussed in terms of the vital role time orientation plays in theory and practice.