Business Practices Research Articles

MANAGING COMPETITIVENESS AND RISK: THE EFFECT OF SHARIAH COMPLIANCE AND THE CENTRAL ROLE OF REPUTATION AND INVESTMENT EFFICIENCY

Business practices, especially in Muslim-majority countries, are more influenced by religious values. Therefore, CSR is less relevant or relatively limited to be implemented as an accountability mechanism, so it is advisable to consider religious values as an alternative approach to business ethics. In this context, adopting Sharia Compliance (SC) is seen as one of the dimensions of accountability, a form of business ethics implementation, and a manifestation or proxy of business ethics other than CSR. Therefore, based on the theory of business ethics, this study develops and tests a trivariate relationship model to explain how reputation and investment efficiency play a role in the relationship between SC and competitiveness and risk as proxied by the cost of equity capital. Using 825 observations, the estimation results indicate a partial mediation effect of reputation in the relationship between SC and risk (cost of equity capital). However, there is no mediation effect in the relationship between SC and competitiveness. Other estimation results indicate a partial mediation effect of investment efficiency in the relationship between SC and the cost of equity capital and competitiveness. This indicates that investment efficiency can provide additional totals in the relationship between SC and the cost of equity capital and competitiveness. However, the mediation effect of investment efficiency in the relationship between SC and SC competitiveness produces a total negative effect. Therefore, it can be said that the mediation of investment efficiency in the relationship between SC and competitiveness is an inconsistent or competitive mediation model. Overall, the partial mediation effect of reputation and investment efficiency indicates (1) there are other mediators (hidden mediators) in the relationship between SC and equity capital costs and competitiveness, (2) SC in reducing equity capital costs and producing competitiveness, among others, by building a good reputation and utilizing positive NPV investment opportunities.

Integrating real-world entrepreneurship with international learning: insights from a blended intensive programme

Purpose This study aims to illustrate how a university can leverage a Blended Intensive Programme (BIP) to act as a boundary spanner in international collaborations and multi-stakeholder value co-creation. This research explores the potential of a reimagined study abroad program to connect disparate entrepreneurial ecosystems and enhance the university’s role in fostering international collaborative projects. Design/methodology/approach This study uses a case study methodology to investigate an Erasmus+ BIP aimed at integrating real-world entrepreneurship with international learning. Data were collected through surveys, interviews and participant observation, providing a robust analysis of how such programs can bridge entrepreneurial ecosystems internationally. Findings The study shows how a blended study-abroad program not only enhances students’ learning outcomes but also can bridge local and international entrepreneurial ecosystems. By facilitating rich exchanges and value co-creation among students, faculty, industry and government stakeholders, the blended format of the program—integrating virtual and in-person elements—proved crucial in maintaining continuity and engagement amid global disruptions. The study highlights the university’s pivotal role both as a facilitator of global business education and international collaboration. Research limitations/implications The study’s findings are based on a single BIP, so they may not apply to all similar programs worldwide. To understand the broader applicability and impact across different contexts, future research should include diverse BIPs from various regions and sectors. Practical implications This research highlights the multifaceted benefits of blended intensive study-abroad programs. The collaborative model serves as a template for enhancing the practical value of higher education globally. Originality/value The study provides insights into the potential of blended intensive programs for universities to extend their role as boundary-spanners through a unique model for international collaboration and multi-stakeholder engagement. This approach addresses the challenges of global disruptions and sets a precedent for future educational practices in international business.

ESG disclosure and financial performance in debt market: evidence from the oil and gas industry

PurposeThis study aims to analyze the relationship between environmental, social and governance (ESG) ratings and corporate bond credit spreads within the oil and gas (O&G) industry. Given the sector’s significant environmental impact and the current energy transition, it is crucial to understand how ESG disclosure affects financial performance, particularly in terms of debt market dynamics. This research aims to provide empirical evidence on whether ESG efforts by O&G companies influence their cost of borrowing.Design/methodology/approachThis study employs a quantitative approach using secondary data from Refinitiv for the period 2018–2022. To address potential endogeneity issues, we utilize two-stage-least-squares regressions. The analysis focuses on corporate bond spreads as the dependent variable and ESG as the key independent variable.FindingsOur findings indicate a negative association between ESG disclosure and corporate bond spreads. Specifically, companies with higher ESG ratings tend to experience lower credit spreads, suggesting that improved ESG practices may lead to reduced borrowing costs. Additionally, the results show that non-state-owned companies (SOC) benefit more from ESG in terms of financial performance compared to state-owned counterparts.Research limitations/implicationsThe study is limited by its reliance on secondary data from Refinitiv, which may not capture all nuances of ESG practices and financial performance. Additionally, the analysis is confined to the O&G industry, potentially limiting the generalizability of the findings to other sectors. Future research could expand the scope to include other industries and incorporate primary data to provide a more comprehensive understanding of the ESG–financial performance relationship.Practical implicationsThe study’s findings suggest that O&G companies can potentially reduce their borrowing costs by improving their ESG ratings. This insight is valuable for corporate managers and investors, as it highlights the financial benefits of sustainable practices. Additionally, policymakers could use these findings to encourage better ESG disclosure and practices within the industry, ultimately promoting a more sustainable energy sector.Social implicationsBy demonstrating the financial advantages of ESG disclosure, this study underscores the broader social benefits of sustainable business practices. Improved ESG ratings not only contribute to environmental and social well-being but also enhance a company’s financial performance. This dual benefit can motivate more companies to adopt sustainable practices, leading to positive societal impacts such as reduced environmental damage and improved community relations.Originality/valueThis study contributes to the existing literature by providing empirical evidence on the relationship between ESG ratings and corporate bond credit spreads specifically within the O&G industry. By highlighting the differential impact of ESG disclosure on state-owned versus non-SOC, the research offers unique insights that can inform corporate strategies in the context of sustainability and financial performance.

Do sustainable business practices enhance firm profitability? An empirical study of Indian listed companies

This study employs a panel data model to examine the impact of sustainable business practices on profitability in the Indian market, focusing on 49 companies listed in the S&P BSE ESG 100 index from 2015 to 2022. Sustainable business practices are measured by ESG composite scores and individual environmental, social, and governance scores. Profitability is represented by return on equity and return on assets. Utilizing the Panel Corrected Standard Error technique to address data issues like autocorrelation and heteroscedasticity, the study finds that sustainable business practices insignificantly impact profitability. However, the social pillar has a significantly positive correlation with return on assets, with each unit improvement in the social score resulting in a 0.1323 increase in return. Conversely, the governance pillar negatively impacts return on assets, with each unit increase in governance score resulting in a decrease of 0.1527 units in profitability. Interestingly, larger companies experienced reduced returns on both assets and equity, as financial risk also lowered returns. These findings emphasize the relevance of companies’ socially responsible behavior, suggesting that managers and investors should prioritize sustainable practices for long-term benefits. Additionally, the findings advocate for robust regulatory frameworks focused on sustainability.

Network and Business Performance Installed in Coworking Spaces: Evidence and Associations

Space sharing for companies has become a trend in the last decade. Many of the benefits of these spaces go beyond the financial scope, creating real value-added processes from these spaces. This study examines the associations between networks developed in coworking spaces and business performance. This research was quantitative, exploratory, and descriptive ex post facto. A survey was conducted among companies installed in coworking spaces in Recife, Brazil. The sample consisted of 77 valid respondents, and the data were analyzed using descriptive and inferential statistics that measure central tendency, factor analysis, and Spearman (ordinal indicators) and Pearson (resulting factors) correlations, in addition to reliability tests and adequacy of the sample, necessary in the refinement of the scales. This study makes a theoretical contribution by specifying the concept of coworking, a topic still underexplored in the literature, and by defining networks in this context, which allowed for the development of a measurement scale. It also discusses the performance construct and its measurement classes, which showed significant internal consistency. Despite the consistency in the data, only the hypothesis of a positive and significant association between network and market performance was partially accepted, demonstrating that more than the network alone was needed to generate results among coworkers. This lack of association contradicts the literature as it is the most discussed aspect in qualitative studies on coworking and suggests that the network may not be a final resource but rather a means by which users obtain benefits such as benchmarks, creative ideas, and adaptation of business practices.

The Influence of Women’s Leadership on Organizational Alignment with Sustainable Development Goals: A Discriminant Analysis Approach

Although it seems that the roles of leaders in sustainable development are extremely important, it is not entirely clear whether the obstacles for women leaders in this context have really changed and to what extent there is still gender discrimination in this domain. In line with this, the study investigates the relationship between the gender of the leaders and the alignment of organizations with the 17 Sustainable Development Goals (SDGs) set by the United Nations. With the growing emphasis on sustainability in business practices, understanding how leadership, particularly CEO gender, influences corporate sustainability initiatives is crucial. The research adopts a quantitative approach to analyze data from organizations led by both male and female CEOs across various industries. By considering the 17 SDGs as independent variables, the study aims to discern whether organizations led by female CEOs exhibit a stronger commitment to specific sustainability goals compared to those led by male CEOs. The analysis seeks to uncover patterns in goal prioritization and explore whether gendered leadership affects sustainability outcomes. The findings are expected to provide insights into how leadership characteristics impact an organization’s sustainability strategies and could suggest future policies and practices aimed at enhancing gender diversity in leadership roles.

Optimal Bundling Cooperation Strategies for Online Paid Membership Programs

ABSTRACTPaid membership programs are popular in Internet firms, and “bundling cooperation for paid memberships” is trendy in their online operations. Unlike traditional product bundling problems, membership bundling between Internet firms presents new characteristics such as member sharing, which brings challenges to profit allocation and partner selection. Despite being a commonly seen business practice, little is known about the optimal bundling strategies and the cooperation mechanisms regarding firms' membership status. To fill this gap, we develop a stylized model that considers the potential added‐value income of membership to analyze the bundling problem between two firms. We show that the optimal bundling strategy depends on firms' original member bases and their ability to mine member value (i.e., value‐monetization ability). We discuss the allocation policy with Nash bargaining and find that the firm may entirely waive its bundled membership fee income and even compensate its partner to achieve cooperation. Surprisingly, a start‐up partner with no member base may be the optimal option. Nevertheless, if there is no such a partner in the market, forming a bundle with a well‐established partner is the right choice. Our findings provide novel managerial insights into bundled membership operations of Internet firms in practice.

Comparative assessment of ESG ratings methodology and results based on XBRL

This study provides a comparative analysis of Environmental, Social, and Governance (ESG) ratings methodologies and explores the potential of eXtensible Business Reporting Language (XBRL) to enhance transparency and comparability in ESG reporting. Evaluating ratings from different agencies, the research identifies significant methodological inconsistencies that lead to conflicting information for investors and stakeholders. Statistical tests and adjusted rating scales confirm substantial divergence in ESG scores, primarily due to differing data categories and indicators used by rating firms. Using a sample of 265 European companies, the study demonstrates that individual ESG agencies report markedly different ratings for the same firms, which can mislead stakeholders. It proposes that XBRL based reporting can mitigate these inconsistencies by providing a standardized framework for data collection and reporting. XBRL enables accurate and efficient data collection, reducing human error and enhancing the transparency of ESG reports. The findings advocate for integrating XBRL in ESG reporting to achieve higher levels of comparability and reliability. The study calls for greater regulatory oversight and the adoption of standardized taxonomies in ESG reporting to ensure consistent and comparable data across sectors and jurisdictions. Despite challenges like the lack of a standardized taxonomy and inconsistent adoption, the research contends that XBRL can significantly improve the reliability of ESG ratings. In conclusion, this study suggests that standardizing ESG data through XBRL could provide a viable solution to the unreliability of current ESG rating scales, supporting sustainable business practices and informed decision making by investors.

Detecting financial statements fraud: Evidence from listed companies in China

Financial statement fraud is the deliberate misrepresentation of a company’s financial statements. Financial statement fraud has been a global concern since it not only harms the investors and creditors but also undermine the public confidence of the capital market. Based on the fact that a common incentive for companies to manipulate financial statement is a decline in the company’s financial prospects, this paper applies the mixture hazard early warning model to identify the key impacting financial characteristics in detecting the financial statement fraud for listed companies in China. We find that in the construction industry the warning sign of suspcious business practices is a falling return on assets, while in the real estate industry the financial red flag is an increase in the inventory level. The estimation results indicate that the financial characteristics may have different implications in different industries in detecting financial statement fraud. This research has shed light on setting specific financial characteristics for fraud monitoring and detecting by the regulators.

How does digital transformation affect corporate governance paradigms? A synthesis of the literature

At present, digital transformation has become a vital way for companies to achieve sustainable growth. This paper reviews the literature on the correlation between digital transformation and corporate governance paradigm, analyzes the specific impact mechanism of AI technology and big data technology in the field of corporate governance, and explores the influence effect of the most popular ChatGPT technology on corporate governance from the perspective of business practice. It is found that digital transformation has an important impact on stakeholder management, information disclosure, green governance and other aspects of corporate governance. The purpose of the study is to provide a new reference for the construction of corporate governance paradigm and help companies achieve long-term development in the digital wave.

‘We are changed yet the same…we can make a difference’: using a critical, creative, collaborative inquiry process to understand and develop professional artistry in nursing

ABSTRACT Professional practice in health and social care is embodied by the practitioners concerned, embedded in practice contexts and creative in nature. It is therefore complex to investigate, understand and develop. Current health and social care contexts can present practitioners with increasingly constraining circumstances and spaces that can feel closed instead of open to exploration and development of practice. The collaborative, critical and creative inquiry methodology presented here was developed among nurses practising in such challenging circumstances. It enables nurses and other health and social care practitioners to reveal, explore and develop their embodied practices, systematically and collaboratively, amid busy daily practice situations. However ‘small’ the space they are in, the process described here can help practitioners to enlarge their space for becoming. The iterative cycle and the use of participatory arts help illuminate otherwise hidden and difficult to articulate aspects of practice, enable the involvement of stakeholders in coming to new understandings and lead to an expanded view of professional practice and its potential for transformation. The purpose of this paper is threefold. First, to present the methodology, methods and lessons learned during the doctoral study in which this approach was developed. Second, to reveal the professional artistry of facilitating this space for becoming and of supporting professionals to reveal their own and others’ professional artistry. Lastly, to offer inspiration and a guide for others considering similar participative inquiry work and to encourage debate and critique of the approach taken.

Transnational mobility and precarity in the shadow of pandemics: Chinese migrants in Africa

ABSTRACT Through the lens of the Covid-19 pandemic, this paper examines the conditions of and responses to (im)mobilities and precarity among Chinese migrants in Africa. It emphasizes a relational and relative understanding of mobility–immobility as well as precarity–agency within the broader context of transnational migration. The empirical findings are based on in-depth, semi-structured interviews with Chinese migrants living in Ethiopia, Zambia, Republic of Congo and Sierra Leone during the pandemic. The analysis reveals a reconfiguration of (im)mobilities, not only between China and African host countries but also across different African destinations. This interplay between mobility and immobility exposes the dilemmas Chinese migrants faced during the pandemic while shedding light on the precarious life-worlds they navigate even in normal times. Although the pandemic exacerbated the precarity of their already unstable lives, it has also created spaces for community support, entrepreneurial ventures, and critical reflections on their businesses practices and life plans.

Bridging Theory and Practice: Applying Vrio and Pest to Foster Digital Transformation in Kadin Bandung City Msmes

ABSTRACT The data indicates that approximately 70% of MSMEs in Indonesia operate within the food and beverage sector, with 99.5% falling under the MSME classification. Despite being perceived as having numerous advantages, MSMEs face several limitations that hinder their ability to enhance competitiveness and growth. The PKM program is designed to equip participants with relevant knowledge and skills, aiming to improve product quality, expand market access, and implement effective digital strategies. The approach employed involved direct counseling and mentoring sessions for 20 women-led MSMEs supported by KADIN Bandung City. The most notable improvement was observed in participants' understanding of the benefits of digital transformation, along with a strong motivation to apply it within their business practices. Overall, the counseling and mentoring activities demonstrated their effectiveness in enhancing participants' comprehension and motivation to implement the three concepts presented in a practical business context. Keywords: PEST Analysis, VRIO Analysis, Digital Transformation

Voluntrip atau Voluntrap? Mengungkap Permasalahan Etis dalam Voluntourism for Profit: Studi Kasus Project Bakti Milenial #6 Banda Neira

This study examined the ethical concerns related to profit-driven voluntourism, specifically highlighting Project Bakti Millenial #6 in Banda Neira. The study sought to elucidate the ethical issues and obstacles inherent in voluntourism, emphasizing the intricacies of merging voluntary activity with commercially-driven tourism activities, which was termed a 'voluntrap'. This study offered a comprehensive examination of the ethical implications and repercussions of such programs and delivered a critical analysis of Project Bakti Millenial #6 as a case study. This research revealed that the complexities stemming from the commercialization of voluntourism underscore ethical concerns, including deceptive claims, information manipulation, and business practices that commodify social activities, thereby necessitating a heightened sense of responsibility in fulfilling the altruistic objectives of voluntourism. Organizing voluntourism necessitates the active involvement of local communities, financial transparency, ethical education, partnership with qualified entities, and enhanced communication to assure sustainability, foster trust, and prevent future issues.

Developing Green Marketing Strategies: A Comprehensive Analysis of Consumer Behaviour and Business Practices

The purpose of this research is to examine the relationship between green marketing communication techniques, consumer behaviour patterns, and business organisations’ practices by employing both qualitative and quantitative methodologies. A hypothesized quantitative survey with 500 consumers and a qualitative case study of leading organisations to assess modern tendencies and approaches were carried out. The quantitative analysis shows that 70% of the consumers take environmental concern while purchasing products, but only 45% are ready to pay the premium price for green products. Moreover, there is a low level of confidence in green claims where only 30% of the consumers are confident that firms have sincere intentions about the statements they make. An analysis of Nike, Starbucks, and Toyota, Apple, and Microsoft organizations shows that they incorporate different strategies in supply chain management, carbon footprint, corporations’ responsibility, and customer relations. Some of these firms focus on the promotion of the company’s transparency, product sourcing based on an ethical approach, encouragement of the use of renewables, as well as community involvement in fulfilling sustainable objectives. Thus, the study also stresses the importance of clarity within communication channels and information reliability for the development of consumers’ trust. It defines factors like the cost and every person’s doubt or disbelief in what is green that prevents an extensive use of green products. Altogether, this research contributes useful knowledge for companies wanting to implement suitable green marketing initiatives that would be appealing to eco-aware consumers. It is clear that implementing corporate practice according to the customer expectation and practicing transparency would not only increase the brand value but also the customer loyalty and which in longer runs would also help in supporting and implementing sustainable development goals across the world.

Unravelling the Dynamics of Necessity-Driven Entrepreneurs (NDEs) and Opportunity-Driven Entrepreneurs (ODEs): A Study of Immigrant Micro Enterprises (IMEs) in the Hospitality Industry

The purpose of the study is to investigate the notion of Necessity-driven Entrepreneurs (NDEs) and Opportunity-driven Entrepreneurs (ODEs) among IME (Immigrant Micro Enterprise) owners in the hospitality industry and how changes in motivational traits influence business practices, innovation, and growth aspirations. In many geographical contexts, the ever-challenging hospitality industry is dominated by businesses that are immigrant-owned and of micro sizes that experience additional challenges compared to their native and large counterparts. Through qualitative research and interviews with 18 owners of restaurants and eateries in the IME category in eastern Norway, the study found that while NDE traits are dominant during start-ups, ODE traits also exist, revealing a dynamic relationship between the two and thus problematic to classify hospitality IMEs as either NDE or ODE. Experiences and close customer interactions rather than formal R&D activities inspire changes and innovations in business practices, growth aspirations, and perceptions of success. This study offers new insights into hospitality IME owners’ motivations and goals, which may be relevant in other similar industries and geographical contexts. It underscores the importance of understanding the interplay of NDE and ODE traits among IME owners and their impact on business success in the challenging industry in which they operate.

Do audit committees impact corporate social responsibility? A review of empirical quantitative research and research opportunities

Purpose The purpose of this study was to analyze whether audit committees (ACs) influence corporate social responsibility (CSR) outputs. Design/methodology/approach A structured literature review of 57 archival studies on the influence of ACs on CSR outputs was conducted. According to a stakeholder–agency theoretical framework, the AC variables were structured as follows: presence, composition and resources, incentives and diligence. CSR is mainly divided into CSR performance, CSR reporting and CSR assurance. Findings Previous studies have mainly focused on AC composition and CSR reporting. There are indications that AC composition and CSR performance and assurance are positively linked. Moreover, AC resources, incentives and diligence increase CSR reporting. Research limitations/implications This study stresses the need for linking AC composition with sustainability, the inclusion of moderator and especially mediator variables and addressing endogeneity concerns via advanced regression models. Originality/value This paper reports the first literature review on the interaction between AC and CSR. It presents the main variables that have been included in previous studies, the limitations of these studies and useful recommendations for future research, business practice and regulators.

Analysis of Factors Affecting Customer Loyalty and Acquisition in Sociopreneurship-Based Cleaning Services

The competitive landscape necessitates that startups have competitive strategies to attract consumers and retain customers. Startups need to realize sustainable business practices where companies cannot solely focus on profit but also implement sustainable business concepts that consider social and economic dimensions. Various digital platforms can be utilized by companies to publicize their business activities. One such startup that applies this strategy is Cleansheet, a sociopreneurship in the field of cleaning service based on empowerment. The research was conducted in Bogor from January to March 2024 through interviews and the distribution of questionnaires to 285 respondents. The results of the SEM analysis show that Cleansheet's customer acquisition is significantly influenced by digital marketing, customer loyalty, and sustainability perception. Meanwhile, customer loyalty is significantly influenced by customer satisfaction, sustainability perception, digital marketing, and service quality. Regarding the indirect effect, customer satisfaction significantly acts as a mediating variable in the partial influence of digital marketing and service quality on customer loyalty.

Socio-Environmental Management: Green Marketing and its Contributions to Sustainable Consumption

Objective: The objective of this research was to investigate the contributions of green marketing to sustainable consumption, analyzing how this approach can influence consumer behavior and promote more responsible business practices. Methodology: The research was carried out through a bibliographic review, involving the critical analysis of already published studies on green marketing and sustainable consumption. Academic databases such as SciELO, Google Academic and Scopus were used to collect relevant articles, books and theses. The analysis of the collected data was conducted through the content analysis technique, which allowed to identify significant themes and patterns. Results and Data Analysis: The results show that green marketing plays a crucial role in consumer education, promoting awareness about sustainable choices. Furthermore, the research showed that this approach stimulates innovation in products and processes, creating competitive differentials for companies. However, the phenomenon of greenwashing represents a challenge, emphasizing the importance of authenticity in green marketing practices. Companies that implement genuine sustainable marketing strategies tend to strengthen consumer loyalty and create a positive impact on the consumer culture. Concluding Considerations: The research concludes that green marketing is an essential tool to foster sustainable consumption, promoting cultural change and encouraging responsible business practices. Collaboration between businesses, consumers and governments is key to building a more sustainable future, reinforcing that sustainability must be integrated into operations and business models.

Challenges, Opportunities, and Strategies of Pentahelix Stakeholders in Realizing Sustainable Supply Chains in Indonesia

The sustainable supply chain sector is increasingly becoming an important concern in Indonesia, especially amidst the threats of climate change, environmental degradation, and exploitation of natural resources. This study aims to identify the challenges, opportunities, and strategies faced by pentahelix stakeholders in realizing a sustainable supply chain in Indonesia. This study uses a qualitative method with a case study approach. The data collection technique in this study is through literature studies. The data that has been collected is then analyzed in three stages, namely data reduction, data presentation and drawing conclusions. The results of the study show that efforts to realize a sustainable supply chain in Indonesia require strong collaboration between the government, academics, business, society, and the media. Pentahelix is ??the right strategy to ensure that each stakeholder plays its role optimally. By taking advantage of existing opportunities, such as increasing consumer demand for environmentally friendly products and strong government support and overcoming challenges through technological innovation and comprehensive policy development, Indonesia has great potential to become a leader in sustainable business practices at the global level.