Does integrity matter for CSR practice in organizations? The mediating role of transformational leadership

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility (CSR) and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions.     

Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments

In recent years, there has been an increasing scholarly and practical interest in the internationalization of top management teams. It is argued that international firms need international top managers to meet the challenges arising from operating across borders. However, the few existing studies that focus on the link between top managers’ internationalization and firm performance yield inconclusive results. Thus, it is an open question if and to what extent international firms can benefit from international top managers. Drawing on upper-echelons theory, resource-dependence theory, and signaling theory, this paper examines how the stock market reacts to the appointment of an international top manager. Our empirical study of German firms employs an event study to analyze the direct impact of internationalization on a firm's stock price. Piecewise regression analysis reveals that a top manager's internationalization needs to exceed a certain threshold before investors incorporate this individual characteristic into their investment decisions. Furthermore, our analysis shows an inverted U-shaped relationship between internationalization and abnormal returns, suggesting that internationalization may have both positive and negative effects on a firm's stock price. We present several explanations for our empirical findings and discuss future research directions.     

Does opinion leadership influence service evaluation and loyalty intentions? Evidence from an arts services provider

The role of opinion leadership to develop positive loyalty effects in the arts services has received little attention. The objectives of this paper are: first, to test the influence of opinion leadership between service attributes and loyalty; and second, to test if this effect is different across gender and education level groups. The model was validated using EFA and multiple regression analysis with bootstrapping. Results fully support that during the service evaluation process, loyalty is predicted differently according to the individual's opinion leadership level. When opinion leadership is high, satisfaction-related attributes are determinant to predict a person's loyalty; when opinion leadership is low, perceived quality-related attributes act as predictors of loyalty. The data also supports a moderation effect amongst women and visitors in the high education level group. These findings highlight the importance of understanding opinion leaders in identifying ways for an organization to strengthen interactions among arts patrons, and develop positive loyalty effects.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-of-a-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisor-subordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-ofa-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisorsubordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

Does mutual fund investment influence accounting fraud?

Does mutual fund investment deter accounting fraud? Using a bivariate probit model, this study examines the relationship between mutual funds and accounting fraud between 2007 and 2014. We observed mutual fund investment has significantly higher levels of fraud detection, reducing firms' propensity to commit fraud. This validates Chinese regulators' efforts to develop mutual funds to address accounting fraud. Open-end mutual funds outperform closed-end mutual funds in detecting accounting fraud and reducing fraud commission; redeemable shares appear to discipline managers. This effect is moderated by state ownership of listed firms: mutual funds cannot effectively detect fraud in state-owned firms.     

Customer experience and commitment in retailing: Does customer age matter?

While the customer experience (CX) concept has rapidly gained traction in recent years, its effect on customer brand commitment and loyalty remains tenuous. Moreover, while customer age has been identified as an influential driver of consumer behavior, little is known about its effect on the customer's brand experience. Addressing these gaps, we develop a model that examines the relationships between CX, commitment, and loyalty, while using customer age as a moderator in the proposed associations. A total of 423 valid responses was collected from branded retail customers. Structural equation modeling results reveal a positive effect of (a) CX on customers' affective/calculative commitment, and (b) customer commitment on brand loyalty. Moreover, multi-group analysis results reveal that while customer ages moderates the association between CX/affective commitment, it does not significantly moderate the relationship between CX/calculative commitment. We conclude with key implications that arise from this research.     

Does transparency influence the ethical behavior of salespeople?

This study introduces the concept of perceived salesperson transparency to the sales literature. It addresses how recent technological developments impact traditional agency theory concerns, while simultaneously creating a conceptual definition of perceived transparency for application on an individual level. Salesperson perceptions regarding managerial use of behavioral information obtained through technological means are empirically found to have a mediating effect on the relationship between managerial access to such information and the likelihood of unethical salesperson behavior. It concludes that salesperson ethical behavior is not influenced by management's ability to obtain behaviorally relevant information, but rather by the use of this information. Further, it is found that the mediating influence of use of information accessed via technology is itself moderated by the salesperson's job performance.     

Does corporate social responsibility influence corporate innovation? International evidence

Whether corporate social responsibility (CSR) affects corporate innovation remains controversial in the literature. We re-examine this issue using a newly available comprehensive innovation database on 20 countries and find support for the view that CSR performance fosters innovation. This effect of CSR is reflected on corporate innovation through its environmental and social dimensions. We also show that the effect of CSR on corporate innovation is less pronounced in emerging countries, but this is driven only by the environmental dimension of CSR. Finally, in comparison to common-law countries, we report a more positive impact of CSR on innovation in civil-law countries.     

Does religion influence location choice in the hotel industry?

Relying on data from the Spanish hotel industry, this paper analyzes the role of informal institutional factors (IIF) in location choice. Earlier studies mostly use an aggregate level of cultural differences as informal institutional factors. We, however, go deeper into this concept and study the impact of two distinct but interrelated informal institutional factors, religion and language, on the location decisions of hotel chains. We resolve the overlapping problem between these two highly correlated IIF by means of a ‘layer’ measurement in Confirmatory Factor Analysis. Our results show that the higher the informal institutional differences (IID), the lower the presence of the hotels in the foreign country. While physical distance plays a key moderating role, formal institutional differences (FID) did not show any effect. We contribute by unravelling the role of language and religion in location choice in the internationalization process of service firms. Moreover, we test the moderating role of formal institutions in these decisions, thus combining the impact of formal and informal institutions on location choices in service firms.     

Does ethical leadership enhance group learning behavior? Examining the mediating influence of group ethical conduct,justice climate,and peer justice

The link between ethical leadership and employees' ethical behaviors is well established, but are ethical leadership's benefits confined to ethical behaviors? This study aimed to address this question by examining the extent to which ethical leaders create an environment conducive to cultivating a broader set of desirable behaviors such as group learning behavior. We drew upon and integrated insights from social learning theory and the social marketplace model to develop and test a model that illuminates how ethical leadership enhances group learning behavior. We propose that group ethical conduct, justice climate, and peer justice are three contextual mechanisms through which ethical leadership improves group learning. Using data collected over two time periods from 95 supervisors and 323 work group members from a large financial institution in the United States, we found that ethical leadership significantly relates to group learning behavior, and that this relationship is partially explained by group ethical conduct and peer justice, but not justice climate. Implications for future research and practice are discussed.     

Does air pollution influence investor trading behavior? Evidence from China

Building on the research linking environmental factors to investor mood, we posit that there is a negative relation between air pollution and individual trading strategies. Through an analysis of unique individual transaction data, our results show that air pollution negatively influences individual investors' propensity to buy and positively influences investors' propensity to sell. We find obvious heterogeneity effects across different investor, stock and city characteristics. The effects are even larger for investors with less investment experience and for those living in heavily polluted cities. This study is crucial for establishing an association between air pollution and individual trading activities.     

Does attitudinal loyalty influence behavioral loyalty? A theoretical and empirical study

Despite a plethora of studies on brand loyalty spanning over last three decades, the research paradigm is unique in its inability to produce generalizable results. The research suffers from a lack of agreement over the operationalization of the construct of the brand loyalty. Many researchers [e.g., Kahn, B.E., Kalwani, M.U., Morrison, D.G., 1986. Measuring variety seeking and reinforcement behaviors using panel data. Journal of Marketing Research 23, 89–100; Ehrenberg, A.S.C., Goodhardt, G.J., Barwise, P.B., 1990. Double jeopardy revisited. Journal of Marketing 54, 82–91] have defined brand loyalty only from a behavioral perspective. They assumed that repeat purchasing can capture the loyalty of a consumer towards the brand of interest. Other researchers [e.g., Day, G.S., 1969. A two-dimensional concept of brand loyalty. Journal of Advertising Research 9, 29–35; Dick, A.S., Basu, K., 1994. Consumer loyalty: towards an integrated conceptual approach. Journal of the Academy of Marketing Science 22 (2), 99–113; Baldinger, A.L., Rubinson, J., 1996. Brand loyalty: the link between attitude and behavior. Journal of Advertising Research 36 (6), 22–34; Rundle-Thiele, S.R., Bennett, R., 2001. A brand for all seasons: A discussion of loyalty approaches and their applicability for different markets. Journal of Product and Brand Management 10 (1), 25–37; Rundle-Thiele, S.R., 2005. Elaborating customer loyalty: exploring loyalty to wine retailers. Journal of Retailing and Consumer Services 12 (5), 333–344], however, have suggested that attitude should be included along with behavior to define loyalty. In particular, Dick and Basu (1994) were precise in suggesting that a favorable attitude and repeat purchase were required to define loyalty. By viewing loyalty as an attitude–behavior relationship in their framework, Dick and Basu (1994) were able to investigate the concept from a causal perspective thereby permitting the identification of the factors that influence loyalty.Our research extends the idea proposed by Dick and Basu (1994) in two ways. First, we provide a conceptually clear, and an operationally meaningful way of segmenting the market on the basis of attitudes that govern this behavior. To be specific, we offer a unique way to measure attitudinal loyalty. And we use a unique survey data with a large sample of 1800 respondents that includes both behavioral (purchase) patterns and attitudes of the respondents for all major brands of toothpaste, to demonstrate that behavioral loyalty is influenced by attitudinal loyalty across many brands of the toothpaste category. Finally, we propose that a third behavioral pattern—non-user—should be also included along with two known behavioral patterns viz. single user and multiple user. This is because a non-user has the potential to become a consumer in future.     

Religious belief and international business negotiations: Does faith influence negotiator behaviour?

Religious observance is widespread and continues to influence managerial behaviour in many parts of the world. However, its role in international business negotiations has not received much scholarly attention. This study explores some of the key ways in which religious belief shapes negotiation behaviour. Focusing specifically on the Islamic context, and drawing on interviews with 27 religiously observant Muslim managers in Malaysia, the study found that commitment to a common religion among negotiators positively influenced certain components of the negotiation process through, for example, the use of religious/emotional appeal, which emphasised their ‘spiritual camaraderie’. In some instances, however, we observed something of a paradox, whereby differing religious beliefs among negotiating counterparts were claimed to actually enhance, rather than hinder, negotiations.     

Does Independent Industry Expertise Improve Board Effectiveness? Evidence From Bank CEO Turnovers

This study explores the impact of independent bank directors’ financial industry expertise on board effectiveness by investigating bank CEO turnovers and post‐turnover bank performance. Empirical results find such expertise increases the probability of forced CEO turnover and the probability of outsider succession. It improves bank performance and reduces bank risk‐taking following a forced CEO turnover. This is likely because industry‐specific expertise enhances boards’ ability to locate a superior successor CEO and to monitor and advise the new management. Market reaction to bank CEO turnover announcements tends to agree with this view.     

Determinants of attitudinal loyalty in Nigerian telecom service sector: Does commitment play a mediating role?

This paper explores the mediating role of commitment in the relationships between service assurance, service reliability and attitudinal loyalty. A quantitative cross-sectional data generated from 138 experienced users of telecommunication services formed the final database. Attitudinal loyalty was found to be a process-based construct that starts from service assurance and proceeds to service reliability and finally to customer commitment and loyalty. The entire process explained 69 per cent of the total variance in attitudinal loyalty. The relationship between service assurance and attitudinal loyalty was insignificant. No support was found for the proposed mediating role of customer commitment in the relationship between service assurance and attitudinal loyalty. In contrast, the relationship between service assurance and attitudinal loyalty was fully mediated by service reliability. Finally, service reliability was both directly and indirectly related to attitudinal loyalty through customer commitment. To attract customers' attitudinal loyalty therefore, services companies especially those within the low-contact service category must deliver reliable services and make efforts to assure customers that their services are reliable. The implications for customer loyalty theory and future research are also discussed.     

Does servant leadership foster creativity and innovation? A multi-level mediation study of identification and prototypicality

The purpose of this multi-level study is to examine how servant leadership affects both employee creativity and team innovation. Drawing from social identity, in particular, relational identification theory, we found on the basis of a two-nation Asian sample of 154 teams that servant leadership promotes individual relational identification and collective prototypicality with the leader which, in turn, fosters employee creativity and team innovation. In addition, our study suggests that the mediated effect of leader identification is strongest when team climate for innovation is high.     

Satellite fans: Does sport nostalgia influence purchase intention toward sponsors’ products?

The purpose of this study was to investigate how nostalgia influences their attitude towards the European Professional Football Leagues (EPFL) sponsors and purchase intention towards EPFL sponsors' products. Based on a convenience sampling, a total of 317 EPFL fans in Singapore responded to an online survey that included items on sport nostalgia, attitude towards EPFL sponsors, and intention to purchase EPFL sponsors' products. Data were analysed using confirmation factor analysis (CFA) and structural equation modelling (SEM). The results showed that sport nostalgia had a direct positive effect on both attitude and purchase intention towards EPFL sponsors’ products. Also, this study found that sport nostalgia had a significant indirect effect on purchase intention through attitude. From the findings of this research, sponsors could understand the role of sport nostalgia and would be able to implement marketing strategies that direct their consumers to purchase their products.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Does gender influence managers’ ethics? A cross‐cultural analysis

The relationship between gender and ethics has been extensively researched. However, previous studies have assumed that the gender–ethics association is constant; hence, scholars have seldom investigated factors potentially affecting the gender–ethics association. Thus, using managers as the research target, this study examined the relationship between gender and ethics and analyzed the moderating effect of cultural values on the gender–ethics association. The results showed that, compared with female managers, their male counterparts are more willing to justify business‐related unethical behaviors such as bribery and tax evasion, and that the gender difference in ethics becomes more pronounced under the cultural dimensions of collectivism, humane orientation, performance orientation, and gender egalitarianism. This study used data obtained through surveying 2,754 managers in 27 nations.