Top Management Characteristics Research Articles

THE ANTECEDENTS OF EXPORT MARKET ORIENTATION: AN EXPLORATORY STUDY OF TURKISH MANUFACTURING FIRMS

The purpose of this research is to investigate the factors influencing the behavior of Turkish manufacturing firms towards export market orientation. In this regard, semi-structured interviews were conducted with 18 export sales managers and the obtained data were analyzed using qualitative content analysis. According to the findings of the analysis, the factors that may influence firms' export market orientation practices are classified under seven themes which include organizational structure, firm characteristics, firm capabilities, export sales manager characteristics, top management characteristics, inter-firm factors, and environmental factors. The study provides important conclusions regarding which firm capabilities should be developed to increase the level of market orientation in export activities, and which characteristics and competencies of export managers and top-level executives should be emphasized. Additionally, it highlights the importance of developing trust-based cooperative relations with importers to obtain export market knowledge and provide effective responses.

Top Management Characteristics, Performance Measurement Systems Design and Strategic Change of Reformed Public Hospitals in Indonesia

This study examined the impact of top management characteristics on strategic change in public hospitals in Indonesia, focusing on the mediating role of performance measurement system (PMS) design. Questionnaires were distributed to 157 top managers from Indonesian regional public hospitals undergoing reform. The findings indicate that younger, short-tenured top managers with business administration backgrounds are likelier to lead the strategic change, specifically the shift from a defender to a prospector strategy. Additionally, PMS design partially mediates the relationship between top managers' age, educational background, and strategic change. However, no significant mediation effect of PMS design was observed in the relationship between top managers' tenure and strategic change. These results suggest that healthcare organizations should consider their top managers' characteristics when planning and implementing strategic change. The role of PMS design in facilitating strategic change should also be carefully evaluated, especially when considering younger and less-tenured top managers as change leaders.

Influence of Top Management Characteristics on the Innovative Development of the World’s Top Companies in the Pharmaceutical Industry

Changes in the pharmaceutical industry lead to the need for detailed consideration of the issues of stimulating innovation, where top management largely determines the company's strategy of innovative development. Thus, it is important to study which characteristics of top management's human capital influence the innovation activity of pharmaceutical companies in creating new products. This article tests a hypothesis that the success of a pharmaceutical company's drug portfolio depends on ideas arising from basic research and large-scale commercialization that recoup high development costs, which in turn are influenced by the personal characteristics of top managers. The study is an econometric analysis of the impact of human capital elements, represented by top management characteristics, on the innovation activity of major pharmaceutical companies, where two models on patents and R&D were tested using panel regression. The models were tested using data from the world’s top 100 pharmaceutical companies from 2010 to 2022. The results made it possible to compile an average portrait of the top manager of the largest pharmaceutical companies. The analysis has shown that professional experience, age, as well as a job-specific degree can have a significant impact on innovation activity. The study contributes to the literature as it makes it possible to predict the innovation strategy of pharmaceutical companies through an average portrait of the top manager. The proposed model will reduce the number of failures of innovative directions, optimize the time period of commercialization of new drug development projects and can be used in other research studies.

DO CEO CHARACTERISTICS REALLY MATTER FOR FIRM PERFORMANCE? EVIDENCE FROM INDONESIA

The Upper Echelon Theory explains that CEOs with certain characteristics are believed to influence firm results because the CEO plays an important role in the firm as the final decision maker. Thus, this raises the question of how important CEO characteristics are in explaining firm performance, or specifically does it matter or not. Addressing these gaps, this study aims to empirically prove the effect of CEO characteristics on firm performance. CEO characteristics in this study are proxied by tenure and gender. The data analysis technique used is Multiple Linear Regression. Based on an analysis of 102 samples of property and real estate sector companies from 2017-2019 on the IDX, we find that CEO tenure positively affects firm performance, and CEO Gender negatively affects firm performance. These results suggest that the Upper Echelon Theory is still a relevant theory for explaining the importance of top management characteristics in understanding organizational outcomes. Furthermore, companies should consider the characteristics of their CEO because it reflects the organizational outcomes.

Narratives of ‘bad leadership‘: Experiences and perspectives of successful Icelandic female leaders

Conservative, male-oriented company culture makes the corporate ladder more slippery for women, who are probably more likely to deal with “bad leadership” from superiors. The lessons drawn from the experiences of women, who have ac[1]complished unusual success as top directors in their organizations, are important guidelines to improve management. This paper reports primary findings from an Icelandic study on the characteristics of exemplary Icelandic female leaders and top managers and their leadership styles. Data was collected through qualitative semi-structured interviews with a chosen group of women that have got nominations and/or prizes for excellent leadership record in recent years in Icelandic organizations. Participants provided various narratives on their experiences of bad leadership (mainly from men in management positions), the more experienced interviewees felt pressured at times in their career to assimilate themselves to the male culture in their corporations and that the glass ceiling was indeed visible until they tried to break it by pushing forward and obtain power positions. Majority of the interviewees had experienced tunnel-vision, narrow-mindedness and resistance to change among their male counterparts and tendencies of top-down management, arrogance and pride, leading to incompetent mode of communication that can lead to weaker, non-professional decision-making with lack of diversity and open dialog ending in worse results for the organizations. Findings indicated that unacceptable working conditions, and the implication of stress and too much workload can transform a good leader to demonstrate some characteristics of a bad leader.

INFLUENCE OF FAMILY OWNERSHIP, BOARD AND TOP MANAGEMENT CHARACTERISTICS ON THE QUALITY OF WEBSITE CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE IN INDONESIA

Background and Purpose: This study aims to investigate the effect of family ownership, board characteristics (board foreign experience and board accounting expertise), and top management characteristics (management education level) on the quality of website Corporate Social Responsibility (CSR) disclosure via corporate website among the top companies listed in the Indonesia Stock Exchange (IDX). This study adds to the body of literature by examining the moderating effect of family ownership towards the relationship between board characteristics and website CSR disclosure, which is useful for investors who might have concerns on the level of CSR disclosure as a gauge of firm ethics, particularly in respect to family-owned firms.
 
 Methodology: Sample of this study consisted of 100 non-financial companies listed in Indonesia Stock Exchange (IDX) for the year of 2019. To test the study’s hypothesis, multiple linear regression analysis was applied.
 
 Findings: Empirical results from this study have shown that family ownership is negatively related to the quality of website CSR disclosure. Board foreign experience has a positive effect on CSR disclosure practices in their respective corporate websites. Meanwhile, top management education level was found to have a negative and statistically significant relationship with the quality of voluntary website CSR disclosure. Lastly, this study demonstrated that family ownership moderates the relationship between board accounting expertise and the quality of CSR disclosure on corporate websites.
 
 Contributions: This study contributes to the literature on CSR disclosure by introducing a set of index measuring the quality of voluntary website CSR disclosure, which captures not only the variety, but also the richness of CSR information. The moderating role of family ownership on such relationships, which is rarely investigated in the context of developing countries, was also explored by this study.
 
 Keywords: CSR disclosure, voluntary disclosure, family ownership, board characteristics, top management.
 
 Cite as: Melati, I., Arshad, R., Ahmad Nadzri, F. A., Nair, R., & Hermawan, A. A. (2023). Influence of family ownership, board and top management characteristics on the quality of website corporate social responsibility disclosure in Indonesia. Journal of Nusantara Studies, 8(TI), 351-381. http://dx.doi.org/10.24200/jonus.vol8issTIpp351-381

The Impact of Executive Green Incentives and Top Management Team Characteristics on Corporate Value in China: The Mediating Role of Environment, Social and Government Performance

The pursuit of economic growth remains a consistent focal point in the development of nations. However, this heightened emphasis on economic expansion has precipitated a global environmental crisis (e.g., climate change, air pollution, etc.). Numerous countries have announced targets and commitments aimed at mitigating carbon emissions. Enterprises are the mainstay of economic development. In the context of low-carbon development, the current challenge faced by enterprises lies in transforming their business philosophy and value orientation to achieve a harmonious integration of economic growth and carbon emission reduction. Consequently, within the framework of sustainable development, the stability and developmental trajectory of enterprise value have emerged as prominent research subjects in recent years. As the concept of sustainable development gradually permeates society, there has been widespread attention from various sectors toward evaluating corporate environmental, social and governance (ESG) performance. This study focuses on listed companies in China’s manufacturing industry as the research subject. Drawing upon the principal–agent theory, stakeholder theory, upper echelon theory and tournament incentive theory, we aim to validate the feasibility of selecting a top management team that aligns with the characteristics of sustainable development during enterprise transition. By constructing a structural equation model and conducting hypothesis testing under the premise of limited rationality among top management, we explore how green incentives provided to top management impact both enterprise transition toward sustainability and enhancement of corporate value. Additionally, we investigate how demographic characteristics of top management contribute to amplifying the role of green incentives on corporate value. The results show that executive green incentives and top management team characteristics positively impact the corporate environment, social and government (ESG) performance and that implementing environment, social and government aspects can improve corporate value. Upon further analysis, it is found that there is a moderate degree of coupling between top management team characteristics and executive green incentives in promoting better ESG performance and enhancing corporate value. This study provides empirical evidence of the favorable economic outcomes associated with environmental, social and governance (ESG) performance, which offers valuable insights for companies to consider when selecting and incentivizing executives, as well as for government departments aiming to enhance environmental, social and governance (ESG) incentive policies.

Sustainability Reporting Practices in Bangladesh: Insights from Upper Echelons Theory

The objective of this paper is to explore and understand how the top management team (TMT)'s, namely the CEO/ MD/ Board of Directors (BOD) and Executive Committee Members, observable attributes and cognitive traits influence the strategic choices, such as adopting the Sustainability Reporting (SR) practices in the organization. This qualitative study conducts 12 semi-structured in-depth interviews with the Top Management Team, including CEOs of publicly listed companies from different industries in Bangladesh. Using the Upper Echelons theory, the author provides an alternative theoretical lens to the motivations of SR practices in Bangladesh. There has been a number of studies on the relationship between CEO attributes and strategic decisions in management literature, primarily in the developed country context. However, the influence of CEO and TMT traits on strategic choices like SR practices in emerging countries is scant. The overall analysis reveals that cognitive bases like values and beliefs, philosophies, and vision of the top management team (TMT), as well as the observable traits like education and background, career track, functional and financial expertise, international exposure or orientation, views, and understanding of the SDGs and their disclosure influence the strategic choice of organizations like the adoption of SR practices. Demographic traits largely shape the values, views, and attitudes of the top management (Hambrick & Mason, 1984), which help them develop or change their perceptions and eventually influence their strategic choice. This paper contributes to sustainability reporting literature by providing an insight into how the top management characteristics shape the SR practices in an emerging economy like Bangladesh.

The Influence of Top Management’s Strategic Planning Capacity and Entrepreneurial Orientation on Corporate Entrepreneurship

Abstract This study examines whether, and how, top management influences middle management’s support of corporate entrepreneurship activities. Specifically, the study explores the influence of top management characteristics, i.e. strategic planning capacity and entrepreneurial orientation, on manager’s decision to support innovation adoption. We report on the findings from a vignette study. Research participants included a group of 259 experienced business professionals: 148 from the United States and 111 from China. The results suggest that the alignment of strategic planning capacity and entrepreneurial orientation influences middle management’s support for corporate entrepreneurship in both cultural settings.

Top and middle management characteristics and internationalization speed

PurposeThis study aims to bridge the gap between firms' internationalization speed research and the emerging study of the interface of a top management team (TMT) and a middle management team (MMT). Accordingly, this study examines the effect of TMT output function and the moderating effect of similarity between TMT and MMT in functional background and international experience on internationalization speed.Design/methodology/approachA two-way fixed-effects approach is used to analyze a dataset of 1,040 observations.FindingsThe results suggest that an output-oriented TMT tends to promote rapid internationalization and that MMT members who are similar with TMT members in functional backgrounds and international experience may be more inclined to support and facilitate internationalization speed advocated by TMT.Originality/valueThis study highlights the importance of demographic similarity between TMT and MMT in speeding up a firm's international expansion, thus advancing the notion that demographic similarity may align the perspectives and perceptions among multi-echelons, leading to consensus on strategy development.

Determinants of strategic management accounting implementation in Higher Education Institutions (HEIs) in Indonesia

Research aims: This study aims to examine determinants of strategic management accounting implementation, including market orientation, top management characteristics, strategy, and information technology.Design/Methodology/Approach: This research was conducted in higher education institutions (HEIs) in some areas, covering Sumatra, Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, and Papua. The research respondents were 368 HEIs leaders. Data were obtained by distributing questionnaires, and the hypotheses were tested using the partial least squares method.Research findings: The results revealed that market orientation, top management characteristics, HEIs strategy, and information technology positively affected strategic management accounting implementation.Theoretical contribution/ Originality: This research contributes to determining contingency variables in implementing strategic management accounting in HEIs.

Why Do We Need to Examine Leadership Concepts and Styles in Finance? Literature Overview

In the contemporary world, leadership concepts are associated with managerial literature. As a rule, scholars define a leader as a person with a certain set of positive characteristics that enable them to lead people and contribute to the successful development of a company. However, the concept of financial efficiency has to be factored into the effective developmentof a company. At the same time, personal characteristics of top managers, such as overconfidence, narcissism, excessive risk-taking, usually have a negative connotation in financial literature.
 This review includes a study of the development of various leadership concepts in management-related literature. The leader’s main personal characteristics are highlighted according to the literature. It also explores the relationship between the concepts of a leader and a manager. The literature devoted to the relationship between the concept of a transformationalleader and company performance has also been studied. The key conclusion of this literature review is that certain personal characteristics of top managers can have a positiveeffect on a company’s performance if they are considered from the point of view of transformational leadership. This confirms the need for a deeper study of the relationship between managers’ personal characteristics and a company’s financial efficiency, especially in the context of sustainable development and the concept of transformational leadership.

Top management characteristics and performance of financial companies: The role of women in the top management

The top management (TM) is very important to the company. It is concerned with planning, directing, monitoring results, and adjusting strategic plans. This research intends to investigate the connection between TM characteristics and financial company performance. Specifically, this research explores the role of women in this relationship. The sample of the study is 368 firm-year-observations from the listed financial sectors in Saudi Arabia for the 2014–2021 years. The ordinary least squares (OLS) regression analysis is used to determine if TM characteristics have an impact on firm performance. The moderating effect of women in TM on the connection between TM qualities and performance is also tested in this research. This research confirms the primary theories by using attentional tests in conjunction with additional data. We discover that the size of TM has a statistically significant detrimental impact on performance according to the major models. We also find the significant effects of accounting and finance experience of TM, professional certificate of TM, education level of TM, and women in TM on performance. Further analysis reveals that omen in TM has a moderator effect on TM characteristics and company performance. The study contains new empirical data to comprehend how management- and governance-specific elements impact the effectiveness of performance in Saudi Arabia enterprises. In addition, the representation of women in TM has an impact on the association between TM characteristics and performance.

Top Management Characteristics and State-owned Enterprises’s Performance: The Moderating Role of Government Financial Support

Top Management Characteristics and State-owned Enterprises’s Performance: The Moderating Role of Government Financial Support

The Effect of Data Characteristics and Top Management Characteristics on Decision Making Capabilities: The Role of AI and Business Analytical Capability

Data is essential for making decisions. However, these data should be appropriately collected and analyzed by capable managers. Few studies examined the effect of data characteristics (DC) and top management characteristics (TMC) on decision-making capability (DMC). In addition, few examine the application of artificial intelligence enterprise resource planning (AIERP) in this process. The purpose of this study is to examine the effect of DC and TMC on DMC. Building on existing theories and studies, this study proposed that DC (data integrity, data quality, data authentication, and data error) significantly affect the DMC. In addition, TMC (data analytical capability and technological innovation) significantly affect the DMC. AIERP is predicted to have a mediator role between DC and TMC, and DMC. Business analytical capability (BAC) is anticipated as a moderating variable. The data was collected from technological companies in the Gulf Cooperation Council (GCC). A purposive sampling technique was deployed. The findings using SmartPLS 4.0 showed that DC and its components expect data authentication and TMC and its components have significant effects on DMC. AIERP mediated the effect of DC and TMC on DMC while BAC did not moderate the effect of DC and TMC on DMC. Decision-makers have to focus on collecting high-quality data and ensuring the data is free from error. Decision-makers also have to use technology to enhance the quality and effectiveness of decisions.

Ex-auditor executives and investment efficiency: evidence from Indonesia

PurposeThis study aims to examine the relationship between the presence of ex-auditor chief executive officers (CEOs) and ex-auditor chief financial officers (CFOs) with the company's investment efficiency decisions.Design/methodology/approachThe authors use non-financial Indonesian listed firms, and the authors obtain 2,763 firm-year observations of ex-auditor CEOs and 2,708 firm-year observations of ex-auditor CFOs from 2010–2019.FindingsThe results show that ex-auditor CEOs tend to make efficient investment decisions, while ex-auditor CFOs do not. However, when a company has a CEO and a CFO who are both former auditors, there is a significantly stronger positive relationship with investment efficiency. These results indicate that working experience as an auditor can optimally facilitate the decision regarding investment level. Moreover, the results suggest that the CEO, as top management, has more influence in providing the company's final investment decisions, whereas the CFO plays a role in providing investment recommendations to the CEO. The results of this study are consistent with the use of alternative measurements and the robustness test of Coarsened Exact Matching (CEM).Practical implicationsThe results of this study can contribute as material for consideration by company management in selecting company organs with an auditor background to secure efficient investment.Originality/valueThis study specifically examines the experience, values, and particular characteristics of top management with an auditor background on the company's strategic decisions. This study is also based on the phenomenon that the number of ex-auditor CEOs and CFOs in Indonesia tends to increase every year.

Top Management Characteristics and Earnings Management Strategies: Evidence from Indonesia

This study examines whether the strategic choice of earnings management chosen by top management (such as CEO and CEO and a team separately) is related to characteristics of top management (i.e., genders, age, tenure, financial expertise, business experience, and education). This study employs regression analyses to analyse 707 firm-year observations of manufacturing companies listed in the Indonesian Stock Exchange (IDX) between 2010 and 2018. This study found that top management team tended to choose the strategic choice of real-based earnings management. Meanwhile, top management individually, both CEO and CFO tend to choose accrual earnings management strategies over real activity-based earnings management. These results are inline with upper echelon theory and financial reportpreparation and mechanism in companies, especially in selecting and appointing top-level executive.

Nexus between environmental disclosures and top management team characteristics: a systematic review.

Voluntary nature of sustainability disclosures in most of the countries shifts focus of academicians towards discretion of top executives as a major determining force for firms to make their operations environmentally and socially sustainable. Based on two decade literature on the topic available at Scopus database this study aims to present a comprehensive knowledge map of intellectual structure on the relationship of top management characteristics on sustainability spending and disclosures. A bibliometric systematic review of 164 articles from 2002 to 2022 has been conducted with the help of VOSviewer and identified most influential journals, articles, and the countries whose corresponding authors have contributed in the field and influential research clusters in the literature. These research clusters are first, red cluster with 94 articles has discussed the upper echelon's personal and professional characteristics in relation to sustainability disclosures. Second, green cluster with 60 articles has discussed particularly the gender diversity in top executives and board of directors in relationship with sustainability disclosures. Third, blue cluster with 10 articles has elaborated the influence of independent directors on sustainability disclosures of corporate sector. The findings of this study will particularly help the regulators to make regulations regarding critical mass of female on boards and top management, family-owned firms, and politically connected directors. Moreover it will also help consultants, analysts, and investment bankers to differentiate firms with pressure-resistant and pressure-sensitive institutional investors. From this review shareholders can be very much clear in the selection of their representatives and ultimately the appointment of top management team. This study also provides an insight for future direction so that unexplored dimension of this field may further be discovered by upcoming researchers.

A two-level, longitudinal investigation into the effects of employee social entrepreneurship orientation and top management team decisions on product innovation

While social entrepreneurship orientation (SEO) is a relatively new field of study, thanks to SEO researchers' efforts we have learned how SEO influences firm performance, notably innovation performance. However, there is still a clear lack of empirical work on how social entrepreneurial employees within an organization and specific decision characteristics of top management they work under may influence innovation performance. This study aims to contribute to the above issues by adopting a meso-to-micro approach to investigating how top management team (TMT) decision creativity and speed influence the effects of employee social entrepreneurship orientation (eSEO) on firms' product innovation performance. To reveal the dynamics of eSEO over-time, we adopted a longitudinal research design to collect data from 2567 employees, one TMT member, and one new product development manager from each of the 206 social enterprises, with a secondary proxy dataset to triangulate the primary data. Our results show that high TMT decision creativity helps social enterprises leverage eSEO to enhance product innovation performance, while high TMT decision speed fails to produce the same effect. When high TMT decision creativity is coupled with low TMT decision speed, the contribution of eSEO to product innovation is at its largest.

Management accounting knowledge, limited managerial discretion and the use of management accounting: evidence from Japanese public hospitals

PurposeThis study examines whether management accounting knowledge and limited managerial discretion encourage and/or hinder the use of management accounting.Design/methodology/approachBased on the data obtained from public hospitals in Japan, this study tests whether top managers with more management accounting knowledge use management accounting more. Additionally, the study verifies whether lower managerial discretion leads to the use of less management accounting and conducts hierarchical multiple regression analysis.FindingsThe results show that the higher management accounting knowledge is, the more likely management accounting is to be used. By contrast, the more limited management discretion is, the less likely management accounting is to be used.Originality/valueThe author's management accounting research based on the upper echelon theory has shown that characteristics such as the education and experience of top managers affect the use of management accounting systems. However, the impact of management accounting knowledge and managerial discretion, which is one of the important characteristics of top managers, on management accounting has rarely been studied.