The effects of Six Sigma on corporate performance: An empirical investigation

The purpose of this study is to investigate the impact of adopting Six Sigma on corporate performance. Although there is a fairly large and growing body of anecdotal evidence associated with the benefits of implementing Six Sigma, there is very little systematic and rigorous research investigating these benefits. This research extends previous research in several important ways including utilizing a sample of 84 Six Sigma firms that represent a wide variety of industries and firm characteristics, utilizing rigorously constructed control groups to ensure the validity of our comparisons and conclusions, and investigating the impact of adopting Six Sigma on corporate performance over a ten year period. To carry out this investigation, the event study methodology is employed. The ten year period consists of three years prior to Six Sigma implementation, the event year corresponding to the year Six Sigma is adopted, and six years post Six Sigma implementation. To assess the impact of adopting Six Sigma on corporate performance we utilize commonly used measures including Operating Income/Total Assets (OI/A), Operating Income/Sales (OI/S), Operating Income/Number of Employees (OI/E), Sales/Assets (S/A), and Sales/Number of Employees (S/E). The sample Six Sigma firms are compared to different benchmarks including the overall industry performance and to the performance of carefully selected portfolios of control firms. The results of the study indicate that adopting Six Sigma positively impacts organizational performance primarily through the efficiency with which employees are deployed. More specifically, enhanced employee productivity results were observed in both static analyses that assessed the performance of the sample Six Sigma firms relative to their control groups at discrete points in time and dynamic analyses of the Six Sigma firms’ rate of improvement relative to the rate of improvement of their control groups. Benefits in terms of improved asset efficiency were not observed. Finally, there was no evidence that Six Sigma negatively impacts corporate performance.     

Repatriation of European female corporate executives: an empirical study

The increased internationalization of business in recent years has made the understanding of international human resource management problems more important for executives in multinational companies. In recent years, researchers have paid considerable attention to the issues of adjustment of managers to international assignments. Interestingly, comparatively little research has been undertaken on the topic of repatriation, i.e. re-entry and readjustment of international managers and their families to their home countries. Despite the growth of women in international management there are very few studies that document the repatriation experiences of female international managers. In particular, very few studies have been conducted outside North America on the topic of repatriation of female corporate executives. This paper reports on the experiences of re-entry to home organizations and home countries by an exclusively senior sample of female international managers in Western Europe. Based on extensive empirical research, the findings establish that the repatriation phase of the international career move may be even more stressful than expatriation. The findings also establish that female international managers experience more difficulties than their male counterparts because of their pioneering roles. Finally, the paper suggests that home-based mentors and access to networks while abroad are important factors in contributing to the successful repatriation of international managers. The research findings make a theoretical contribution, not only to the analysis of gender and international human resource management but, also, to wider debates within the contemporary women in management and career theory literatures.     

CEO compensation, shareholder rights, and corporate governance: An empirical investigation

We investigate whether CEO compensation is influenced by the strength of shareholder rights. Our evidence reveals that CEOs of firms where shareholder rights are weak obtain more favorable compensation. It is also found that higher CEO pay is associated with a higher degree of potential managerial entrenchment. Additionally, CEOs of firms with governance provisions that offer them protection from takeovers enjoy more generous pay. We also examine the change in CEO compensation relative to the change in shareholders' wealth. The evidence shows that when there is an increase in shareholders' wealth, the CEO is able to obtain higher incremental compensation when shareholder rights are weak. On the contrary, when shareholders' wealth falls, there is no corresponding decline in CEO compensation when shareholder rights are weak. Given the empirical evidence, we argue that CEO compensation practices reflect rent expropriation rather than optimal contracting.     

Export channel dynamics: an empirical investigation

We investigate the dynamics of export channel arrangements by modelling foreign operation method decisions as the interplay between factors that motivate switches and factors that deter them. Our model extends previous analyses by looking simultaneously at (1) no change of channel arrangement, (2) replacements of foreign intermediaries (within‐mode shifts), and (3) integration of the sales function abroad (between‐mode shifts). We use a multinomial logit model on longitudinal data from a sample of Danish exporters that had entered foreign markets through intermediaries. The results suggest that the decision to carry out within‐mode shifts (i.e. to replace an existing intermediary) is driven by a different set of factors than the decision to switch to another foreign operation mode (i.e. to in‐house operations). Copyright © 2005 John Wiley & Sons, Ltd.     

Customer concentration and corporate charitable donations: Evidence from China

This study examines the impact of customer concentration on corporate charitable donations. Drawing on stakeholder and resource dependency theories, we argue that when firms rely on a small set of customers for a significant proportion of sales revenue, they will reduce corporate charitable donations. State ownership and industry competition moderate this relationship. Using data on corporate donations from Chinese listed firms between 2009 and 2019, we find support for our hypotheses. Our study contributes to the literature on customer concentration and corporate philanthropy in emerging economies.     

Perceived versus actual value of product substitution flexibility: An experimental investigation

Prior literature suggests that in the presence of operational uncertainties such as uncertain demand, firms should deploy operational flexibilities. However, these flexibilities are costly to develop and a correct valuation of these capabilities is necessary to ensure that they are only deployed when the expected benefits exceed the cost. Using a set of behavioral decision-making experiments for inventory of substitutable products, we investigate how decision-makers perform when estimating the value of operational flexibility of product substitution. We found that subjects consistently overestimated the monetary value of product substitution. Furthermore, the overestimation became more acute as demand correlation increased. This behavior is not explained by risk aversion or random errors. Instead, it appears to be driven by fundamental and systematic behavioral biases when estimating the conjunctive probability of substitution. We suggest and validate a decomposition-based approach to mitigate this overestimation.     

Vintage growth and population density: an empirical investigation

"This paper tests a central prediction of vintage growth models of urban structure: that there are discontinuities in the population density function. The data set covers quarter sections in Chicago in 1980. Using such highly disaggregated data is critical because discontinuities are less likely to be found the larger is the unit of observation. Both a switching regression model and a nonparametric estimator reveal discontinuities and upward-sloping segments in the function, which supports the vintage growth model."     

Global value chains,local collective action and corporate social responsibility: a review of empirical evidence

A key debate in the corporate social responsibility (CSR) literature is the tension between global pressures and local responses. Developing country suppliers often grumble that CSR compliance adds costs. Yet, local collective action, articulated through industry associations, can potentially reduce costs and promote local embeddedness of CSR initiatives. Through case study analysis, this paper considers how demands for CSR compliance prompted collective action responses in selected developing country export industries. We argue that differences in collective responses can be partially explained by how local export industries are inserted into global value chains. We distinguish between ‘highly visible’ value chains, led by internationally well known brands as lead firms, and relatively ‘less visible’ chains, where external CSR pressures come from a variety of sources, including less dominant lead firms, international/national regulatory frameworks and national media. This differentiation suggests a possible trade‐off between the independence and the embeddedness of collective CSR initiatives. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Tourism donations in sacred settings: an exploratory study of visitor donations in an English cathedral

• This paper explores visitor behaviour in relation to making donations for Chichester Cathedral upkeep. It found that 94% of respondents were aware of the donation appeals and that 71% of them went on to make a donation, with the visitors aged 50 to 69 years and living within 25 mi of the Cathedral being the most frequent and generous donors. When asked to suggest what they would consider an appropriate donation, 44% of respondents gave a figure between £1 and £2. This paper argues that the present donation management measures at Chichester Cathedral are insufficient to bring the desired income and makes recommendations on the measures that Cathedral managers can implement to increase visitor donations. Among these recommendations, the most significant are the profiling of visitors, the identification and targeting of donors' personal meanings to give a donation and, in the case of Chichester Cathedral, to specifically target these meanings on their local, middle‐aged visitors.

Copyright © 2016 John Wiley & Sons, Ltd.     

Assessing total factor productivity across Africa: an empirical investigation

Journal of Productivity Analysis - Even though Africa is home to many emerging markets, the attention on African growth might be neglected by economists and scholars due to data unavailability and...     

Human resource management practices and corporate entrepreneurship: an empirical assessment from the USA

In this article, the relationship between human resource management and corporate entrepreneurship is assessed. The underlying nature of entrepreneurship is examined and the core dimensions of an entrepreneurial orientation are identified. Based on current classification schemes of HRM-related practices, an assessment is made of practices that facilitate rather than constrain entrepreneurial behaviour, and research hypotheses are generated. Results are reported of a cross-sectional survey of firms in which these hypotheses are tested. Conclusions and implications are drawn for managers, and suggestions are made for further research.     

Global corporate environmentalism: Theoretical expectations and empirical experience

Since the mid-1980s the concept of corporate environmentalism has taken hold among global stakeholders, promising improved environmental health and safety (EH&S) performance at multinational (MNC) facilities in less developed countries. In this article we examine corporate environmentalism through two lenses: (1) our own empirical case studies of three Third World subsidiaries of USA-based multinationals; (2) evolving theories on EH&S performance at MNC subsidiaries in less developed countries. We suggest that over the past decade there has been a convergence of three theoretical perspectives – neoclassical, radical and ecological – toward consistent predictions of improved EH&S performances and relations with host country governments. However, important differences among the three perspectives remain in how each interprets improved EH&S performance in the context of long-term benefits to corporations, host countries, workers, local publics and the global community. While we find that the neoclassical economic perspective is most consistent with the empirical findings of our three case studies, we also note some debatable neoclassical assumptions concerning whether all stakeholders benefit mutually from superior EH&S performance. In order to gain wide acceptance beyond the corporate sector, the concept of corporate environmentalism must be expanded to include greater labor participation and accounting for ecological interests.     

Social networks and labour productivity in Europe: an empirical investigation

This paper uses firm-level data recorded in the Amadeus database to investigate the distribution of labour productivity in different European countries. We find that the upper tail of the empirical productivity distributions follows a decaying power-law, whose exponent α is obtained by a semi-parametric estimation technique recently developed by Clementi et al. [Physica A 370(1):49–53, 2006]. The emergence of “fat tails” in productivity distribution has already been detected in Di Matteo et al. [Eur Phys J B 47(3):459–466, 2005] and explained by means of a model of social network. Here we show that this model is tested on a broader sample of countries having different patterns of social network structure. These different social attitudes, measured using a social capital indicator, reflect in the power-law exponent estimates, verifying in this way the existence of linkages among firms’ productivity performance and social network.     

Structural shifts in urban population density gradients: an empirical investigation

This study investigates the structural shifts in urban population density gradients by first using the shifting regression technique of Farley, Hinich, and McGuire to detect the possible change in the structure of an urban area. Secondly, a generalized random coefficient technique is used to simultaneously detect the possible structural change and stochastic behavior of density gradients. Data for 50 United States SMSA's are used to do the empirical analyses.     

Innovative human resource practices and organizational commitment: an empirical investigation

In the contemporary business environment, human resource (HR) is an indispensable input for organizational effectiveness. Hence, an effective management of human resources has an important role to play in the performance and success of organizations. Competitive pressures have encouraged organizations to be proactive in diagnosing HR problems and to adopt more innovative HR practices since these were no longer a matter of trend, but rather of survival. The present study attempted to explore the relationship of three dimensions of innovative human resource practices (IHRPs): that is, the extent of introduction of IHRPs, their importance for organizational goal achievement and satisfaction with implementation of IHRPs, with organizational commitment (OC). Regression analyses showed that the perceived extent of introduction of innovative human resource practices by the organizations was the most significant predictor of organizational commitment.     

管理层持股与公司绩效:一项基于深圳股票市场的实证研究

本文在现有理论和实证分析框架基础上,以在深圳证券交易所上市的331家公司为研究对象,运用非线性回归模型对上市公司管理层持股与经营绩效的相关性进行了实证检验。实证结果表明,公司绩效与管理层持股之间存在三次曲线关系:管理层持股在0%—0·1376%之间时,公司绩效随管理层持股比例的增加而下降;管理层持股在0·1376%—0·7462%之间时,公司绩效随管理层持股比例的增加而上升;管理层持股超过0·7462%时,公司绩效再次随着管理层持股比例的增加而下降。     

Factors influencing ethical climate in a nonprofit organisation: an empirical investigation

Drawing from Victor and Cullen's[Victor, B. and Cullen, J. B. (1987) ‘A theory and measure of ethical climate in organizations’, Research in Corporate Social Performance and Policy, Vol. 9, pp. 51–71.],[Victor, B. and Cullen, J. B. (1988) ‘The organizational bases of ethical work climates’, Administrative Science Quarterly, Vol. 33, pp. 101–125.] theoretical framework a recent study by Agarwal and Malloy[Agarwal, J. and Malloy, D. C. (1999) ‘Ethical work climate dimensions in a not‐for‐profit organization: An empirical study’, Journal of Business Ethics, Vol. 20, pp. 1–14.] examined ethical work climate dimensions in the context of a nonprofit organisation. This paper reviews the framework and extends the study further by investigating several factors that influence the perception of ethical work climate in a nonprofit organisation. The multiple analysis of variance (MANOVA) procedure is employed to test nine hypotheses. Results demonstrate somewhat unique findings regarding factors that influence ethical climate perception in a nonprofit context. Specifically, the findings of this study point to the level of education, decision style and the influence that superiors and volunteers have upon ethical perception. Results also demonstrate that factors that have been employed traditionally by forprofit management, such as length of service, codes of ethics, size of the organisation and peer pressure, do not effectively influence ethical perception in the nonprofit context. Finally implications of this study are discussed. Copyright © 2003 Henry Stewart Publications     

Implicit leadership in an intercultural context: theory extension and empirical investigation

Prior literature highlights that subordinates' identification with their leader is important for leader success. This study explores new mechanisms of implicit leadership and their effects on identification by subordinates. Using data from two sources – subordinates from five regional clusters and expatriate leaders – this study reveals that a leader's underfulfilment of subordinates' expectations of leadership harms their leader identification. Moreover, simple fulfilment of subordinates' expectations toward leadership does not affect their identification; to do so requires overfulfilment. Furthermore, the effects of underfulfilment strengthen with greater collectivism and low power distance, whereas overfulfilment effects are mitigated by these cultural dimensions.     

Worker voice,managerial response and labour productivity: an empirical investigation

This article investigates the relationship between worker voice practices, employee perceptions of managerial responsiveness and labour productivity. It argues that managerial responsiveness is a critical but under‐investigated variable in the study of the relationship between worker voice, human resource management and performance. Our results suggest that managerial responsiveness to worker voice does lead to superior labour productivity. However, this relationship is only found in non‐union workplaces and there is little relationship between formal voice regime and productivity. One important implication of this finding is that more responsive management will result in improved productivity, so policy interventions should focus on how to motivate managers to become more responsive to their employees.