Chief executive officer ability,corporate social responsibility,and financial performance: The moderating role of the environment

This paper seeks to explore how chief executive officer (CEO) ability influences the economic impact of corporate social responsibility strategic decisions. Currently, the evidence on the impact of corporate social responsibility on the value of the company is mixed; in this paper, we aim to observe the moderate role played by this particularity of the CEO in the relationship between socially responsible commitment and financial performance. Our results identify that the most able CEOs make investments in social and environmental practices that lead to greater financial performance; in contrast, the less able CEOs can overinvest or underinvest in an opportunistic way for personal benefit at shareholders' expense. In addition, the role that CEO ability plays in social and environmental strategies is particularly pertinent in munificent environments that foment managerial discretion; in these contexts, high managerial ability leads to investment in socially responsible performance, which benefits shareholders by alleviating moral hazard.     

Corporate performance patterns of Canadian listed firms: Balancing financial and corporate social responsibility outcomes

Based on stakeholder theory and considering the conflicting performance interests of a wide range of stakeholders, this research investigates corporate performance patterns using a cluster analysis of financial, social, and environmental performance dimensions. An analysis of a Canadian sample of 771 company-year observations for the period 2014–2018 reveals three types of corporate performance: financially focused performance, balanced performance, and corporate social responsibility (CSR)-focused performance. Firms in the largest cluster, financially focused performance, deliver poor sustainable performance and prioritize financial performance over social and environmental performance. The CSR-focused performance cluster scores low for financial performance and high for environmental and social performance. The balanced-performance cluster also has higher levels of sustainable performance but is the smallest cluster, accounting for a quarter of the sample. Overall, this study presents a portrait of corporate performance balancing financial and CSR objectives and the evolution of this activity over the research period.     

An expanded investigation into the relationship of corporate social responsibility and financial performance

While many studies have examined the relationship of the two constructs of financial performance and CSR, little consensus has emerged. This study investigates the relationship through a set of comprehensive and long-term financial measures, which include both accounting and market returns. Also, an established CSR database generated through a validated CSR research instrument is used in a new, more thorough manner. While the regression analyses reveal no relationship to exist between the constructs, a number of methodological factors are proposed to play a role in contributing to such findings.     

When collaborative HR practices may not work well: the moderating role of social capital in the Chinese life insurance industry

In this study, we examine the main and interaction effects of insurance agent-focused collaborative HR practices and insurance agents' social capital on their sales performance. Data from 984 participants were collected in five subsidiaries of a large Chinese life insurance company. The results show a strong relationship between social capital and objective sales performance. More importantly, we found a negative interaction effect of collaborative HR practices and network size on individual performance and a positive interaction effect of collaborative HR practices and network range on objective sales performance. The study is unique in that it looks at the interaction between HR and social capital, investigates how HR practices affect individual performance and not firm performance as has been more commonly done, and focuses on one industry to be able to capture the unique aspects of HR practices in that industry. Theoretical contributions, managerial implications, and limitations are also discussed.     

Carbon performance and corporate financial performance: The moderating role of consumer awareness of corporate social responsibility

The paper detects the association between carbon performance (CP) and corporate financial performance (CFP) and the moderating role of consumer awareness (CA) of corporate social responsibility (CSR). We find that CP has consistent positive impacts on CFP in the short and long term, whereas CA has opposite moderating effects on CFP. These results indicate that companies should increase corporate value by improving CP. In addition, improving CA of CSR is an effective way to promote CFP.     

Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance

This study investigates the relationship between environmental management practices (EMPs) and financial performance (FP) and consequently ascertains whether environmental performance (EP) can mediate the EMPs–FP nexus. Distinctly using data envelopment analysis and generalised method of moments techniques to analyse a comprehensive dataset of Nikkei 225 listed firms from 2007 to 2018 (1920 firm-year observations), our findings first suggest that EMPs have a positive effect on FP. Second, the desired EP can be achieved through the adoption of comprehensive EMPs. Third, improved EP has a substantial impact on shaping the EMPs' effect on FP. These findings are consistent with the predictions of resource-based view and institutional theories. The results are robust to controlling for different types of alternative measures and endogeneities. The findings have important implications for academics, investors, managers, policymakers and regulators.     

High-performance work systems and firms' operational performance: the moderating role of technology

This paper analyses the moderating effect of technology on the potential impact of high-performance work systems (HPWS) on firms' operational performance. The paper distinguishes between production technology and the technological intensity of the industry. This potential effect is analysed in a sample of 965 Spanish manufacturing firms. Results support the moderating role of the technological intensity of the industry, while qualifying the hypothesized moderating effect of production technology.     

Sustainability,accountability and corporate governance: exploring multinationals' reporting practices

Recent years have seen a rapid increase in accountability pressures on particularly large global companies. The increased call for transparency comes from two different angles, which show some (potential) convergence in terms of topics and audiences: accountability requirements in the context of corporate governance, which expand to staff‐related, ethical aspects; and sustainability reporting that has broadened from environment only to social and financial issues. This article examines to what extent and how current sustainability reporting of Fortune Global 250 companies incorporates corporate governance aspects. Many multinationals, particularly in Europe and Japan, have started to pay attention to board supervision and structuring of sustainability responsibilities, to compliance, ethics and external verification. While detailed disclosures are not yet common, some notable practices can be found. Underlying dilemmas and complexities for managers in dealing with accountability to shareholders and stakeholders, and the role of auditors, are indicated. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment     

Perceptions of HR practices,person–organisation fit,and affective commitment: The moderating role of career stage

In a three‐wave survey study among 487 Dutch university employees, we examined how and when employees' perceptions of high‐performance work practices (HPWP) affect employee affective commitment. We proposed that perceived person–organisation (PO) fit mediates this relationship and that the relationships among perceptions of HPWP, perceived PO fit, and affective commitment differ across career stages. Our results confirm that perceptions of HPWP enhance PO fit perceptions and, in turn, strengthen affective commitment. Moreover, the relationship between perceptions of HPWP and perceived PO fit is only significant among employees in the advancement stage of their careers; however, direct comparison across different career stages reveals no significant differences in the HPWP–PO fit relationship. Furthermore, career stage partly moderates the relationship between PO fit and affective commitment, which is only significant among employees in the maintenance career stage. These findings have important implications for the literature on strategic Human Resource Management and PO fit.     

High involvement work practices and firm performance

During the past two decades the chain of three links organizational strategy – human resources practices – organizational performance has been deeply analysed. However, the mediator role of organizational structure in the first link of this chain remains relatively uninvestigated. In this article we analyse a model of relationships among organizational strategy, organizational structure, human resources practices, and organizational performance. Through a structural equation methodology applied to a sample of 183 Spanish companies, we will try to confirm that organizations with differentiation strategies are more likely to implement high involvement work practices. As a novelty we will introduce organizational structure as a mediator of this relationship. For that we will use the construct control mechanisms (centralization, formalization and socialization). Further, we will analyse the effect on firm performance of these proposed relationships among differentiation strategy, control mechanisms and high involvement work practices.     

The impact of corporate entrepreneurship and high-performance work systems on employees' job attitudes: empirical evidence from Greece during the economic downturn

In turbulent times, corporate entrepreneurship (CE) and high-performance work systems (HPWSs) are expected to expand and flourish. However, research on the influences of both CE and HPWSs on employees' job attitudes has generally been neglected. The aim of this study is twofold. First is to investigate the effects of CE and HPWSs on facets of job satisfaction and the three components of organisational commitment. Second is, consistent with the social exchange theory, to examine whether psychological contract act as an important mediator for the CE, HPWSs and employees' job attitudes relationships. Empirical evidence was obtained from 424 employees in the Greek manufacturing industry. Results indicate that both CE and HPWSs positively impact employees' level of job satisfaction and organisational commitment. In addition, we find evidence that psychological contract theory provides a coherent theoretical framework for understanding these relationships. Theoretical and practical implications for HR managers conclude the article.     

The moderating role of relational bonding in green supply chain practices and performance

Previous research has paid attention to the effect of green supply chain practices on green innovation performance. However, little has been done to examine the substantive role of relational bonding in green supply chain management context. This study attempts to identify relational bonding as a potential moderator and examines the relationships between green supply chain practices, relational bonding, and green innovation performance. The results indicate that green supply chain practices and relational bonding are positively related to green innovation performance. Relational bonding moderates the relationship between green supply chain practices and green innovation performance. This study makes a contribution by integrating relationship marketing literature and green management literature. This study also provides practical implication for the essential role of relational bonding in green supply chain management.     

The impact of human resource management practices and corporate entrepreneurship on firm performance: evidence from Turkish firms

This paper outlines the important role of human resource management practices with a link between corporate entrepreneurship and firm performance. Data were collected from a survey of 124 firms operating in different industries in Turkey. The findings of this study indicated that human resource management (HRM) practices partially mediated the relationship between corporate entrepreneurship and firm performance. In other words, corporate entrepreneurship affects firm performance, both directly and through its effects on HRM practices. In addition to corporate entrepreneurship, it is found that HRM practices explain a significant level of additional variance (9 per cent) in firm performance. The theoretical and managerial implications are discussed.     

Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate

Abstract

The purposes of this paper are to explore the effect that perceived HR practices have on the innovative work behavior (IWB) of individual workers and to examine the role that an innovative climate plays in this relationship. We hypothesize that employees will show greater IWB if they perceive the organizational climate to support innovation and perceive the presence of HR practices related to a compensation system, training and development, information sharing, and supportive supervision. Using data from 463 individuals in four Dutch manufacturing companies, the study tests the effects of employees’ perceptions of HR practices and of an innovative climate on their innovative behaviors. We found that employee perceptions of a compensation system are negatively related to IWB, and that employee perceptions of information sharing and supportive supervision are positively related to IWB. The effect of perceptions of information sharing and training and development on IWB are moderated by an innovative climate, in such a way that information sharing has a stronger effect on IWB and training and development a weaker one. Managers can stimulate innovative behavior by investing in information sharing, supportive supervision, and establishing an innovative climate.     

Innovation in work practices: a practice perspective

Dynamic capability theory argues that organizations' internal capabilities enable sustained competitive advantage. Innovations in work practices (commonly termed ‘high performance’, ‘high commitment’ or ‘high involvement’ practices) are an important source of these internal capabilities but research evidence shows low levels of penetration. Using a practice perspective, case study analysis of 7 establishments in the aerospace sector identifies three themes that are under-attended to in current research on innovations in work practices: industry and production context; distributed nature of management activity, and social embeddedness. Implications for future research are discussed.     

Psychological contract breach,high-performance work system and engagement: the mediated effect of person-organization fit

Based on social exchange theory, we developed and tested a mediated moderation model to investigate the effects of psychological contract breach (PCB), person–organization fit (P–O fit) and high-performance work system (HPWS) on employee engagement. Using a sample of 255 employees in China, our results revealed that PCB has significant negative effect on employee engagement, and P–O fit partially mediates this relationship. We further found that high levels of perceived HPWS aggravate not buffer the negative effect of PCB on employee engagement and P–O fit. In addition, the interaction of HPWS and PCB on employee engagement is mediated by P–O fit. Implications for the research and practices, limitations and directions for future research are discussed.     

Employee stock ownership and financial performance in European countries: The moderating effects of uncertainty avoidance and social trust

This study investigates how the effect of employee stock ownership on financial performance may hinge on the diverse cultural and societal contexts of European countries. Based on agency and national culture theories, we hypothesize that the positive relationship between employee stock ownership and return on assets (ROA) is stronger in those nations with lower uncertainty avoidance and higher social trust. Using a multisource, time‐lagged, large‐scale dataset of 1,741 firms from 21 countries in Europe, our multilevel, random coefficient modeling analysis found evidence for these hypotheses, suggesting that uncertainty avoidance and social trust serve as important contextual cues in predicting the linkage between employee stock ownership and financial performance. Our supplemental analysis with distinction between the managerial and nonmanagerial employee stock ownership further indicates managerial employee stock ownership has a direct positive effect on ROA. Although nonmanagerial employee stock ownership had a nonsignificant association with ROA, the relationship was positive and significant when uncertainty avoidance was low and social trust was high. This research contributes to the existing literature by illuminating some of the contextual influences altering the effectiveness of employee stock ownership. Our findings also offer practical suggestions for effectively using employee stock ownership.     

Shaping the organisational context for corporate entrepreneurship and performance in Iran: the interplay between social context and performance management

Abstract

Prior research highlighted the importance of an organisational context stimulating autonomous behaviour when trying to increase levels of corporate entrepreneurship. From a social exchange perspective, we argue that firms in developing countries need to complement such supportive practices with performance-oriented practices. Our findings indicate that Iranian firms with an organisational context characterised by an interaction of social context and performance management have more engagement in corporate entrepreneurship, and that corporate entrepreneurship mediated the relationship between the organisational context and firm performance. This provides a better understanding of the way firms in developing economies can shape their organisational context to promote corporate entrepreneurship in order to achieve better firm performance.     

Voluntary turnover rates and organizational performance in the US federal government: the moderating role of high-commitment human resource practices

Despite the growing body of literature on antecedents of employee turnover, little attention has been paid to the effect of voluntary turnover on organizational outcomes in public administration. Using panel data from the US federal government, this article tests the proposition that the relationship between voluntary turnover rates and organizational performance is negative but becomes curvilinear as turnover rates increase. Based on the contingency perspective of the turnover–performance link, this article further examines the moderating role of high-commitment human resource practices (HCHRP) in the relationships. Findings indicate that voluntary turnover has a positive relationship with organizational performance, but it turns out to be an inverted U-shaped curve as turnover rates increase from low to high levels. Furthermore, the moderating effect on the curvilinear relationship is especially pronounced for federal agencies with high levels of HCHRP.     

Power shifts in organizations: the role of high-performance work systems

This paper analyses the effects of high-performance work systems (HPWS) on the rent appropriation of employees and shareholders in firms from the viewpoint of appropriation theory. Applying a meta-analytical approach I test the hypothesis that HPWS shift the balance of power between stakeholder groups in an organization, favouring employees over other stakeholders. This hypothesis is confirmed. However, the overall results of HPWS are positive for both stakeholder groups, as HPWS also increase firm value creation. My study also emphasizes the need to decompose the construct ‘firm performance’ into value creation and value distribution among stakeholder groups. Directions for future research and recommendations for management practice conclude the paper.