Managerial Value Research Articles

The effect of reverse knowledge spillovers on the total factor productivity of emerging markets

The aim of this paper is to shed the light on the phenomenon and mechanisms of knowledge spillovers from developed economies to emerging markets through the lens of productivity effects. We hypothesize on the impact of foreign R&D stocks on the total factor productivity growth in emerging markets and on the moderating effect of R&D stocks on the knowledge spillover effects. We use panel data from 38 countries for the period of 2001–2014. Our findings suggest that firms investing in developed markets are able to improve TFP growth via reverse spillovers. Two important findings having managerial value are that, on average, the effect of OFDI on productivity becomes apparent three years after the initial investment. The study also indicates that investment efforts have a negative effect on TFP growth in the year of investment. This research contributes to the ex- isting literature by analyzing bilateral FDI stocks between emerging and developed markets and the impact of both traditional and reverse spillovers on TFP growth in developing economies.

PENGARUH KEPEMILIKAN MANAJERIAL, PROFITABILITAS, LIKUIDITAS, DAN UKURAN PERUSAHAANTERHADAP NILAI PERUSAHAAN

This study aims to analyze the relationship among proportion of managerial ownership, profitability, likuidity, and firm size toward firm value. This research used purposive sampling method. The type data is panel data during 2015-2017 in the from Indonesia Stock Exchange with total sampel was 192 data. Data analysis technique using multiple linear regression with Eviews program 10.0. The results shows that proportion of managerial ownership and likuidity have no significant effects on firm value, meanwhile profitability and firm value has significant on firm value. The results also shows that proportion of managerial ownership, profitability, likuidity, and firm value simultaneously have significant effects on firm value.

The “Interacted” actor in platformed networks: theorizing practices of managerial experience value co-creation

PurposeThe purpose of this paper is to conceptualize the “interacted” actor and connect it with practices of managerial value creation in an interactive business world. In doing so, it accounts for the interactive agency of actors via dynamics of the creational process across increasing technological “platformization” of interactions of heterogeneous (human and non-human) sociomaterial entities.Design/methodology/approachThe study discusses a foundational theoretical framework of a co-creation paradigm (CCP) while connecting it with recent industrial marketing and purchasing (IMP) literature on mixed network and system ontology. It then elaborates on conceptual research contributions and key business management implications in advancing IMP studies through CCP.FindingsThe framing of interactional flows across interactive system environments in business networks is related to both stability and developmental change in the enactment of creation via interactive agencies-structures in the ongoing pursuits of both business efficiency and innovation of value creational opportunities.Practical implicationsBy effectively configuring platformed networked interactions of experience value creation in their business contexts, managers (and stakeholding individuals in general) can better cope with the complexity of interactivity and interdependencies.Originality/valueManagerial experience value co-creation through CCP builds on the IMP tradition by explicitly recognizing actors, in addition to activities and resources as being interactively defined. Because the relational logics are applicable at varying levels of scale across system-environment boundaries, it can be applied at both the individual and company levels or more generally at any level of agglomeration.

Optimal Contracting of Pension Incentive: Evidence of Currency Risk Management in Multinational Companies

Using a large sample of multinational companies (MNCs), this paper intends to explore whether executives’ pension incentives will function as a mechanism of optimal contracting in motivating firm risk management. We find that granting more pension to executives is significantly related to the higher likelihood and intensity of currency hedging strategies in MNCs. This suggests that pension incentive should promote executives to more actively manage firms’ risk. Such a positive relationship is robust to endogeneity and is more prominent in firms with strong shareholder power. We further explore the contribution of currency hedging induced by pension incentives to shareholder value. Supporting the hypothesis of optimal contracting, our results indicate that pension incentives play an important role in reconciling managerial risk preference and shareholder value creation.

Managerial opportunistic behavior and firm value: Empirical study of manufacturing companies in Indonesia

Managerial opportunistic behavior and firm value: Empirical study of manufacturing companies in Indonesia

Prior Information and Consumer Search: Evidence from Eye-tracking

This paper develops a search model in which both the information obtained during the search process and the information possessed by consumers prior to search influence their choices. We estimate our model on a data set from an experiment that has two novel features: (i) it contains information on consumers’ prior brand ownership, familiarity with each brand, and prior experience using different product features; and (ii) it uses eye-tracking methods to capture search behavior during the experiment. Using these data we show consumers are generally more likely to search and buy brands they own and are familiar with, highlighting the importance of their prior information. We then quantify the impact of prior information on consumer choices, as well as document the estimation bias arising when brand prior information is absent from the model. Finally, through a series of counterfactuals, we explore the managerial value of using consumers’ brand priors to construct personalized ranking-based recommendation systems.

Discovering and Transforming Exhaust Data to Realize Managerial Value

“Exhaust data” is “extra data” or “left over” data from “core data” digital transactions, collected, either intentionally or unintentionally, but for which there is no initial, specific purpose for its collection. This article differentiates core data from exhaust data, defines and describes exhaust data, and proposes how to turn it into core data to provide value for firms. We present a framework for discovering and transforming exhaust data and apply it to four case studies involving Internet search data, accounting entries and data security, social media disclosures and Edgar use logs. From the cases, we extract five managerial challenges and generate five recommendations to help managers identify exhaust data applications for realizing potential value.

Discovering and Transforming Exhaust Data to Realize Managerial Value

“Exhaust data” is “extra data” or “left over” data from “core data” digital transactions, collected, either intentionally or unintentionally, but for which there is no initial, specific purpose for its collection. This article differentiates core data from exhaust data, defines and describes exhaust data, and proposes how to turn it into core data to provide value for firms. We present a framework for discovering and transforming exhaust data and apply it to four case studies involving Internet search data, accounting entries and data security, social media disclosures and Edgar use logs. From the cases, we extract five managerial challenges and generate five recommendations to help managers identify exhaust data applications for realizing potential value.

Tax Aggressiveness and Earnings Persistence and Its Components

The objective of this research is to analyze if companies with higher tax aggressiveness have different levels of earnings persistence components, specifically: i) book-tax differences and ii) tax profit. The study period was from 2010 to 2016, involving Brazilian companies listed on B3. The most aggressive companies ranked tax-dependent by the Effective Tax Rate metric. The results showed that companies, when segregated by levels of tax aggressiveness, present differentiated earnings persistence in their components. It is noted that, in most tax- aggressive companies, tax profit becomes a determining factor for future book income. This paper contributes to the accounting literature by identifying the impact of taxation on earnings quality, in particular, for earnings persistence, which is a fundamental requirement for greater managerial and tax predictability and greater value direction for companies.

Contextual adaptation of omni-channel grocery retailers’ online fulfilment centres

Purpose The purpose of this paper is to investigate how grocery retailers configure their online fulfilment centres (OFC) as they move towards an omni-channel structure and what contextual factors influence their decisions. Design/methodology/approach An exploratory case study with three grocery retailers in the Nordic countries was conducted. The study investigates the current OFC configurations and identifies nine important contextual factors. Findings This study shows the importance of understanding the changes that omni-channel retailing entails for an OFC configuration. Nine contextual factors were identified. Several of the factors are found in previous theory, but this paper extends the knowledge of how they affect the configuration of an OFC in grocery retail. The changes in, for example, order characteristics create different requirements for picking, packing, sorting and shipping when compared with traditional distribution centres (DC). Although representing a separate flow for online fulfilment, OFC configuration depends on how the other logistics flows from the DC to stores are designed. Research limitations/implications To support further theory development, nine contextual factors and their relationship to OFC configurations are proposed. Practical implications This study provides managerial value in two ways. First, grocery retailers with one or more OFCs can benchmark existing solutions using the empirical case descriptions. Second, the findings provide grocery retailers with knowledge of how to configure an OFC. Originality/value The literature lacks a holistic approach towards how grocery retailers configure their OFCs and what factors affect these decisions. This study provides the first in-depth analysis of how the omni-channel context affects the configuration of all the aspects of an OFC.

Parabolic Effect Between Managerial Ownership And Firm Value To Control Agency Conflict

This research attempts to place the ownership structure, which includes managerial ownership, institutional ownership, foreign ownership, and concentration ownership as determinants to predict value of the firm. Managerial ownership will be identified and analyzed on its possibility to form the inverse U-shape relationship pattern, therefore the test on parabolic effect between managerial ownership using Tobin’s Q can be conducted. Meanwhile, such test cannot be conducted to the other three independent variables. This test was applied to non-financial firms whose shares were listed on Indonesia Stock Exchange (IDX) during 2000-2017. The result of panel data regression test concludes that managerial ownership can predict value of the firm, while it is not for institutional ownership and foreign ownership.

Consumo residencial: uma proposta de modelo de negócio para medidores inteligentes

São verificadas diversas iniciativas, tanto em empreendimentos como na literatura, para o desenvolvimento de produtos inteligentes voltados a aplicações residenciais, principalmente relacionados ao monitoramento e controle de consumo de energia por meio de medidores inteligentes. O uso de medidores inteligentes tem ganhado espaço em diversos países, porém verifica-se que este tipo de aplicação ainda é muito incipiente no Brasil, resultando em altos custos para as concessionárias na realização de coleta de dados de consumo no país. As pesquisas na literatura sobre medidores inteligentes apresentam principalmente foco em aspectos tecnológicos e engenharia de produto, o que resulta em uma lacuna em relação aos aspectos gerenciais e valor ao cliente. Dessa forma, este trabalho tem como objetivo desenvolver uma proposta de modelo de negócio com arranjo flexível voltada ao desenvolvimento e oferta de serviços associado aos medidores inteligentes (água e/ou energia e/ou gás) para uso doméstico. Para tanto, foram utilizadas diversas fontes de evidência a fim de se levantar dados para o desenvolvimento do modelo. Foi possível observar que, de fato, as fontes de evidência da literatura e os casos identificados apresentam foco nos aspectos tecnológicos e estrutura do produto. Os resultados apresentam uma síntese de diversas possibilidades de configuração de modelos de negócio para medidores inteligentes residenciais. A partir disso, este resultado permite estimular o desenvolvimento de negócios para o controle e fomento do consumo consciente de recursos naturais, tais como água, energia e gás, tão estratégicos e críticos para a manutenção do meio ambiente.

Association of Business Value to Productivity through Information Technology

The organizations around the world have integrated information technology into their processes with anticipation in the increase in productivity. Importantly, they have considered business value as a measure of productivity generated through the adoption of information technology. Carrying this forward, several information technology practitioners have tried to examine the relationships between business value and adoption of information technology. Business value aspects (employee value, customer value, economic value, and managerial value) have been examined in multiple research studies for adopting and implementing information technology. Some of the research studies have found a positive correlation between business value (as a measure of productivity) and the implementation of information technology. This research paper has attempted to examine whether business value can be safely associated with productivity through information technology.

Co-creation of value outcomes: A client perspective on service provision in projects

Client organisations, as financiers, owners, and users, face the challenge of generating and delivering value outcomes for a wide range of stakeholders. However, research has demonstrated that projects constantly fall short of providing valuable outcomes in the medium- and long-term. The value outcomes start to appear in the latter stages of a project, yet, they have a link back to the project definition phase, where value outcomes can be purposely designed for the long-term. Value outcomes per se have been historically researched from a supplier and financial perspective. However, the research around the client perspective has been scarce, particularly the exploration of the co-creation of value outcomes for the long-term. To this end, the Service-Dominant Logic is an established framework to analyse the co-creation of value outcomes in the long-term from a client perspective. Thus, this framework is being used in this research to analyse six project case studies from two public sector client organisations in the United Kingdom. The results show eight managerial value interactions, which may enhance a set of five value outcomes from a client perspective in the medium- and long-term. Additionally, tensions around the co-creation process have been identified, which require management attention to secure and to defend the value outcomes. Overall, this study may prompt project practitioners to undertake a set of co-creation practices in order to formulate projects as service provision, as well as to avoid negative financial impacts to business models.

Managerial Value, Financial Condition, and Downsizing Reform: A Study of U.S. City Governments

This study examines downsizing reforms in U.S. city governments to understand the influence of managerial values and financial conditions on the implementation of downsizing strategies. Based on the analyses of national survey data, we found that downsizing tends to be implemented with a package of downsizing factor including structural and procedure changes. We further confirmed that managerial values, measured as their innovative attitudes and ethical concerns, affect downsizing factors of structural changes. Financial conditions, including budget surplus and fund deficits, are not related to downsizing strategies. Implications of the research findings are presented for future studies of public downsizing reforms.

Misalignment of Contribution and Pay:When do CEOs capture more (or less) than the value they create?

We examine the relationship between CEOs’ contributions to value creation and their pay. Findings demonstrate that variation in CEO value creation is not reflected in variation in their pay. Variation in pay is significantly larger than variation in CEO contributions. We explain this finding through supply-side and demand-side mechanisms. On the supply-side, we find that CEOs opt for non-monetary pay and accept pay that is lower than their next-best offer. On the demand side, we find that firms are unable to accurately assess CEO human capital. This study is among the first to directly examine the relationship between variation in managerial value creation and managerial value capture.

German Millennials’ Decision-Making Styles and Their Intention to Participate in Online Group Buying

This study focuses on the relationship between consumer decision-making style (CDMS) of German millennials and their intention to participate (ITP) in online group buying (OGB). We make substantive contributions to the literature of consumer behavior and electronic commerce in particular. The study conducts structural equation modeling to analyze data obtained from a sample of 591 German millennials, an economically powerful young generation constituting the main beneficiaries of OGB websites. Data analysis yields significant relations among millennials between a perfectionistic, brand-conscious, price-conscious, impulsive, and novelty-seeking CDMS and their ITP in OGB. Whereas the price-conscious CDMS dominates the picture, there are also gender-based differences, with female millennials who occupy impulsive or novelty-seeking CDMSs having a higher ITP in OGB. In contrast, male millennials with a brand-conscious CDMS have a higher ITP, and male perfectionists avoid OGB sites. Our results offer managerial value to OGB websites to cater to specific CDMSs of millennial buyers.

The CEO Horizon Problem and Managerial Slack in China

ABSTRACTThis study investigates how CEO behavior and incentives change during the CEO's final years in office, known as the horizon problem. We examine how the horizon problem alters managerial slack, a measure of operational inefficiency and managerial value diversion. Using data on Chinese publicly traded firms between 2003 and 2011, we find that managerial slack increases in the last two years of CEO tenure compared to earlier years. We also show that the increase in managerial slack in CEO final years in office is smaller in privately controlled firms than in state-owned enterprises, smaller in firms with CEO equity ownership and more independent boards compared to those without. We conclude that higher quality corporate governance mechanisms ameliorate the perverse incentives associated with the CEO horizon problem, and reduce CEOs’ tendency to increase managerial slack during their final years in office.

Employee Satisfaction and Corporate Performance in the UK

This paper investigates the informational value of online reviews posted by employees for their employer, a rather untapped source of online information from employees, using a sample of 349,550 reviews from 40,915 UK firms. We explore this novel form of electronic Word-of-Mouth (e-WOM) from different perspectives, namely: (i) its information content as a tool to identify the drivers of job satisfaction/dissatisfaction, (ii) its predictive ability on firm financial performance and (iii) its operational and managerial value. Our approach considers both the rating score as well as the review text through a probabilistic topic modeling method, providing also a roadmap to quantify and exploit employee big data analytics. The novelty of this study lies in the coupling of structured and unstructured data for deriving managerial insights through a battery of econometric, financial and operational research methodologies. Our empirical analyses reveal that employee online reviews have informational value and incremental predictability gains for a firm’s internal and external stakeholders. The results indicate that when models integrate structured and unstructured big data there are leveraged opportunities for firms and managers to enhance the informativeness of decision support systems and in turn, gain competitive advantage.

Does social networking ultimately sustain organisational performance?

This study examines how integrated social networking sites (SNSs) affect organisational management orientation (OMO) and assesses how this relationship can have an impact on managerial performance and organisational value. The researchers conducted a questionnaire and in-depth pilot interview to obtain the data with samples being selected from a developed economy (Taiwan) and an emerging economy (Thailand) with pretest. Non-respondent bias and common method variance were tested and the model was constructed by assessing reliability, extracting average variance, and testing discriminant validity. To test the proposed hypotheses, the researchers adopted PLS procedure. SNS integration appeared to strongly affect OMO, and managerial performance mediated the relationship between OMO and organisational value in both the developed and emerging economies. Interestingly, while no direct link could be established between OMO and organisational value in the developed economy, the researchers found that OMO appears to directly affect organisational value through managerial performance in the emerging economy.