Management Research Review

Abad, Cristina; Bravo, Francisco

2018 Management Research Review

doi: 10.1108/mrr-02-2017-0046

The purpose of this study is to examine how the accounting expertise of audit committee members is associated with the disclosure of forward-looking information.Design/methodology/approachManual content analysis is used to analyze forward-looking information disclosed in annual reports as well as gather data about the accounting expertise of directors. Regression analysis is performed to study the association between the disclosure variables and the accounting expertise of audit committee members.FindingsThe results show that the accounting expertise of audit committee members is associated with forward-looking disclosure practices, particularly with information of a financial and strategic nature.Practical implicationsThe evidence has direct implications for companies in the selection of directors, as stakeholders may demand nomination committees to appoint audit committees with the accounting experts. They may also request regulatory actions regarding the structure of the audit committee, as these add to the evidence on the benefits of selecting such experts.Social implicationsThe evidence on the role of accounting expertise could also help the US Securities and Exchange Commission (SEC) to narrow the definition of financial expertise to specifically consider accounting expertise, as is already happening in the EU context.Originality/valueThis paper extends prior research on corporate governance and voluntary disclosure by showing the association between the company having at least one accounting expert in the audit committee and the level of disclosure of value-relevant information.

Çetin, Fatih; Aşkun, Duysal

2018 Management Research Review

doi: 10.1108/mrr-03-2017-0062

Today, organizations work hard to improve the motivation of their employees and related knowledge, skills and abilities to enhance work performance. Among many other variables, self-efficacy proved to have an influential role in work performance. The main purpose of the current study is to investigate the role of occupational self-efficacy on work performance through intrinsic motivation by using a longitudinal analysis.Design/methodology/approachParticipants were 76 employees from diverse organizations operating in an organized industrial region in Turkey. Participants filled in a weekly questionnaire during ten consecutive weeks.FindingsResults of multilevel analyses confirmed our hypotheses by showing that occupational self-efficacy and intrinsic motivation have a significant influential role over work performance, and intrinsic motivation serve as a partial mediator in this relationship.Originality/valueThe study findings also reveal important information for organizational and managerial practices to improve employee motivation and performance.

Baena, Verónica

2018 Management Research Review

doi: 10.1108/mrr-01-2017-0011

This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the internationalization process pursued by franchise companies. To achieve this goal, the author considered the following variables: the role of management and franchising experience, brand awareness and the sector of activity (product versus service). The international franchise ratio and the size of the chain were also considered.Design/methodology/approachThis study uses a quantitative approach applied to the Spanish franchise system, which occupies the second position in Europe in terms of the number of franchisee outlets (65,810) and the first position in Europe in terms of the number of franchisors (1,232). Moreover, in early 2016, a total of 302 Spanish chains were doing business in 137 foreign countries with 20,891 outlets established abroad. Data were obtained from secondary sources (i.e. the Spanish Franchise Association, the leading Spanish franchising Consultant Group, etc.) The most important international franchising associations were also considered. Multiple regression analyses were used to test the research hypotheses.FindingsResults conclude that that franchisor’s brand awareness plays an important role in the decision of becoming a global franchise chain. In addition, the franchising experience, business orientation (product versus service), the international franchise ratio and the company size have significant impacts on the intensity of the internationalization process pursued by the franchisors.Originality/valueThe scant attention given to this topic has usually been examined from the US and British base and has focused on a reduced number of sectors of activity such as hospitality and manufacturing doing business in a single region (i.e. developed or emerging nations). To fill this gap, this work analyzes the international spread of the entire Spanish franchise system, which in early 2016 had presence in 137 foreign countries and operated in a total of 52 different sectors of activity.

Taras, Vas; Memili, Esra; Wang, Zhonghui; Harms, Henrik

2018 Management Research Review

doi: 10.1108/mrr-05-2017-0150

This study aims to investigate the effects of family involvement in corporations on firm performance. It remains unclear whether family-owned companies, or companies with other forms of family involvement in the corporate governance, perform better than firms with no family involvement. Furthermore, the study focuses on family involvement in publicly traded firms, which are different from private family firms. Hence, knowledge about family firms will be enriched through a closer look at the publicly traded family firms and shed further light onto the heterogeneity among family firms.Design/methodology/approachThe present study uses a meta-analysis of the extant research on family involvement and publicly traded family firm performance. The authors synthesize past research, identify and reconcile mixed findings and expand the understanding of the phenomenon.FindingsInvolvement of the founding family members in firm governance tends to improve firm performance, albeit the effect is rather weak. However, the effect varies greatly depending on the type of family involvement and the measure of performance. The authors also identify regional differences, as well as variations by the firm size and study design. Furthermore, under-researched areas are identified for future research.Practical implicationsThe results of the study would be useful in guiding organizational design and investment decisions.Originality/valueBy using the meta-analytic approach, the present study provides a comprehensive review of the empirical evidence available on the issue so far. Most importantly, the authors were able to conduct a series of tests to assess the moderating effects of a number of factors that could not be evaluated in any individual study in the meta-analytic database.

Parnell, John A.

2018 Management Research Review

doi: 10.1108/mrr-05-2017-0151

Amidst rapid development in emerging economies, greater emphasis on public–private partnerships and a more complex regulatory environment, nonmarket strategy (NMS) is now widely viewed as a key component of a firm’s overall strategy. This paper aims to investigate how nonmarket and market strategies are influenced by strategic uncertainties and capabilities and ultimately drive firm performance.Design/methodology/approachA survey addressing strategic uncertainties, capabilities, NMS and market strategy and firm performance was administered online to 193 practicing managers in the USA. Measures for competitive strategy (i.e. cost leadership and differentiation), NMS, management and marketing capabilities, competitive and technology uncertainties and firm performance were adopted from or based on previous work. Hypotheses were tested via SmartPLS.FindingsEmphasis on NMS was linked to high marketing capability, high competitive uncertainty and high technology uncertainty. Cost leaders were more likely than differentiators to emphasize on NMS, although all three strategies were positive drivers of performance. NMS appears to be viewed as a part of an integrated strategic approach by managers in many organizations.Research limitations/implicationsThe sample included mangers in multiple industries. Self-typing scales were used to assess strategic emphasis and firm performance.Practical implicationsEmphasis on NMS can promote firm performance, but the relationship is complex. Strategic managers should align the NMS with organizational capabilities and a market-oriented strategy appropriate for the firm.Originality/valueThis paper provides empirical support for a model linking select strategic uncertainties, capabilities, market strategy and NMS and firm performance. It supports NMS as a key performance driver, but with links to uncertainties and capabilities that differ from those of market strategies.