This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This review paper delves deeply into the intricate correlation between rational and political strategies in the decision-making process of information technology governance (ITG). The core focus is to understand how advanced technologies like artificial intelligence (AI), machine learning, and decision intelligence, when juxtaposed with traditional political decision-making methods and rational conceptualization (Cohen & Comesaña, 2023), coalesce within the ITG framework. The authors posit that while ITG's decision-making can be influenced by AI, rationality, or politics, there's a discernible alignment of managerial actions leveraging big data and machine learning with rational models, rather than political ones. Furthermore, the paper touches upon the power dynamics and strategic decision-making processes that often underpin ITG decisions. This research not only deepens the theoretical understanding but also provides pragmatic recommendations, making it invaluable for informed resource management in business management and ITG (Filgueiras, 2023). Through this exploration, stakeholders can better navigate the complexities of ITG, ensuring that technology aligns with organizational goals and strategies. As this paper identifies the power dynamics and strategic decision-making processes that often underpin ITG decisions, we can state that there was a discernible alignment of managerial actions leveraging big data and machine learning with rational models, rather than political ones.

Keywords: IT Governance, Decision-Making Process, Rationality, Politics, Artificial Intelligence

Authors' individual contribution: Conceptualization — R.G. and A.B.; Methodology — R.G. and A.B.; Validation — R.G. and A.B.; Formal Analysis — R.G. and A.B.; Investigation — R.G. and A.B.; Writing — R.G. and A.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C41, D81, D85, M15, G41

Received: 23.03.2023
Accepted: 27.11.2023
Published online: 29.11.2023

How to cite this paper: Gouiaa, R., & Bazarna, A. (2023). The interaction between rationality, politics and artificial intelligence in the decision-making process [Special issue]. Corporate Governance and Organizational Behavior Review, 7(4), 263–271. https://doi.org/10.22495/cgobrv7i4sip4

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The main purpose of this paper is to address the impact of social media on the performance of businesses, specifically on businesses in Kosovo. While technology is advancing more and more, social media has become routine for every business, especially for businesses that use these social media to improve their performance in various ways such as: achieving business objectives, increasing sales, and building their brand image through social media (Ile et al., 2018). The research method used in this scientific paper is based on the international scientific literature and the practical experience of the authors with a focus on improving decision-making in order to increase sales to various businesses. We focused on the collection and processing of primary data by formulating two questionnaires, one for consumers and one for businesses regarding the impact of networks social in making decisions for purchasing products and increasing the quality of decisions from businesses to increase sales to businesses. From the results of this study, we were able to conclude that social media in general has a positive impact on improving the performance of businesses, especially Kosovar businesses. Also, the results show that a significant part of Kosovar businesses can adapt to the trends that technology is bringing and we can say that the future will send even more to the use of different platforms that enable online sales.

Keywords: Social Media, Business Performance, Consumer, Social Networks, Marketing

Authors' individual contribution: Conceptualization — F.V. and P.M.; Methodology — F.V. and P.M.; Data Curation — F.V. and P.M.; Writing — Original Draft — F.V. and P.M.; Writing — Review & Editing — F.V. and P.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M30, M31, M37

Received: 10.02.2023
Accepted: 24.11.2023
Published online: 27.11.2023

How to cite this paper: Velijaj, F., & Mustafa, P. (2023). The impact of social media on successful decision-making towards increased sales [Special issue]. Corporate Governance and Organizational Behavior Review, 7(4), 248–262. https://doi.org/10.22495/cgobrv7i4sip3

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Abstract

This study examined the relationship between the expectation and perception of service quality by small and medium practices (SMPs) towards the performance of small and medium-sized enterprises (SMEs). This study utilized the questionnaire survey as the research instrument distributed to the managers/owners of SMEs in Malaysia. Using multiple regression analysis on 162 respondents, this study shows that the expectation of the service quality provided by SMPs has a significant positive relationship with the perceptions of the service quality received. Similarly, the perceptions of service quality have a significant positive relationship with the firm performance. The findings from this study provide some implications for the SMPs in improving their service quality in performing their tasks. This is because the expectations and perceptions of SMEs play an important role in appointing SMPs for accounting-related matters. This study contributes to the accounting literature and provides information regarding the service quality dimensions which could help SMPs to assess the success of their services.

Keywords: Expectations, Perceptions, Service Quality, Performance

Authors' individual contribution: Conceptualization — M.M.A. and E.K.G.; Methodology — M.M.A.; Investigation — K.M.; Resources —S.H.; Writing — M.M.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M40, M410, M420

Received: 17.10.2022
Accepted: 22.11.2023
Published online: 24.11.2023

How to cite this paper: Ali, M. M., Ghani, E. K., Muhammad, K., & Handayani, S. (2023). Service quality by small medium practices towards SMEs: The expectations, perceptions, and firm performance [Special issue]. Corporate Governance and Organizational Behavior Review, 7(4), 233–247. https://doi.org/10.22495/cgobrv7i4sip2

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Abstract

Based on a sample of 161 newly listed firms on the Ho Chi Minh Stock Exchange (HOSE) from 2009 to 2016, the study investigates the pattern of earnings management and stock performance in the long run. This study then explores the effect of earnings management on stock performance in the long run around the listing phenomenon. Two models based on current accruals were adopted for this study to estimate earnings management (Teoh et al., 1998a, 1998b). The study consistently finds that managers have manipulated their company's earnings in the pre-listing year but not in the listing year when earnings management is measured by current accruals models. In addition, in line with previous research, significant underperformance was found in all measures over three holding periods: 12, 24 and 36 months. Finally, the results also demonstrate that companies associated with aggressive current accruals in the year before listing tend to suffer from post-listing earnings and share return underperformance. The more aggressive the practice of earnings management, the greater its adverse effect on stock performance in the following years.

Keywords: Current Accruals Models, Earnings Management, Stock Performance, Listing, Vietnam

Authors' individual contribution: Conceptualization — D.T.C.; Methodology — D.T.C. and N.T.T.D.; Software — D.T.C.; Validation — D.T.C. and N.T.T.D.; Writing — Original Draft — D.T.C. and N.T.T.D.; Writing — Review & Editing — N.T.T.D. and H.N.T.; Supervision — D.T.C., N.T.T.D., and N.T.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M14, G34

Received: 11.04.2023
Accepted: 20.11.2023
Published online: 22.11.2023

How to cite this paper: Chi, D. T., Diep, N. T. T., & Hang, N. T. (2023). Earnings management and subsequent stock performance: Evidence from an emerging market [Special issue]. Corporate Governance and Organizational Behavior Review, 7(4), 221–232. https://doi.org/10.22495/cgobrv7i4sip1

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This issue of the journal Corporate Governance and Organizational Behavior Review was published on November 16, 2023.

By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

How to cite: Sancetta, G., & lo Conte, D. L. (2023). Editorial: Future-forward governance: Adapting for tomorrow's organizational landscape. Corporate Governance and Organizational Behavior Review, 7(4), 4–5. https://doi.org/10.22495/cgobrv7i4editorial

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The Clean Act of 1990 of South Africa has imposed fines on producers of ozone-depleting substances and local smelting gases (Melnick, 1983). Purcell et al. (2019) suggest that Universities can deliver sustainable development goals (SDG) by working with internal and external stakeholder bodies. They further are expected to embrace issues of global and national social responsibility, governance and sustainability. Filho et al. (2019) opined that universities are central players and critical economic actors in many regions specifically related to sustainable development. The article aims to align sustainability with university operations. The extent to which postgraduate students understand sustainability operations strategy and standards that are eco-friendly are explored and informed by the triple bottom line (3BL) framework and explores the social awareness of the university community in ensuring the quality of life presently and for future generations in a developing context. This article employed a quantitative approach with a sample from the Supply Chain Management Honours students at the University of KwaZulu-Natal. The 44 questionnaires were randomly sent to students. Descriptive, and inferential, was generated to produce results, suggesting and reaffirming that all stakeholders, including the university leadership and other staff cohorts, should be committed to the United Nations (UN) SDG 4 objectives to ensure sustainability awareness and promote lifelong environmental learning.

Keywords: University Sustainable Development, Economic, Social, Environmental, Corporate Social Responsibility

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: H8, L5, L8, M1, Q2, Q3, Y9

Received: 30.12.2022
Accepted: 10.11.2023
Published online: 13.11.2023

How to cite this paper: Ncube, E. D. (2023). Socially responsible practices at a public university in a developing country: A sustainability approach. Corporate Governance and Organizational Behavior Review, 7(4), 200–209. https://doi.org/10.22495/cgobrv7i4p17

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Competitive intelligence (CI) involves monitoring competitors and providing organisations with actionable and meaningful intelligence (Ranjan & Foropon, 2021). This paper aims to examine current trends in the CI and insurance literature. A qualitative approach with an exploratory-driven design was used to examine CI-related articles. A systematic literature review found 24 publications from 2008 to 2022. Thematic content analysis was used to analyse the qualitative data. Journal articles were obtained from Academic Search Complete, EBSCOhost, and Google Scholar. Publications were classified according to journal, publication year, article count, citations and methodology. The findings showed that Iranian authors produced more CI-related academic articles focusing on insurance. Only a few CI studies in insurance have been published in other countries. The global insurance industry's CI research was underdeveloped, with articles scattered across various journals. Two South African authors contributed multiple articles. Research in this area needs to be tested more thoroughly before maturity can be achieved. Furthermore, most of the studies the authors reviewed were quantitative. Mixing research methods could contribute more substantive theoretical contributions. In addition, more studies need to investigate the use of data analytics tools and conceptual frameworks for theory testing.

Keywords: Competitive Intelligence, Big Data, Data Analytics, Insurance, South Africa

Authors' individual contribution: Conceptualization — M.L.M.; Methodology — M.L.M.; Software — M.L.M.; Validation — M.L.M.; Formal Analysis — M.L.M. and B.Z.C.; Investigation — M.L.M. and B.Z.C.; Resources — M.L.M.; Data Curation — M.L.M. and B.Z.C.; Writing — Original Draft — M.L.M.; Writing — Review & Editing — M.L.M.; Visualization — M.L.M.; Supervision — B.Z.C.; Project Administration — B.Z.C.; Funding Acquisition — B.Z.C.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D80, D83, G52, I21, O55

Received: 01.05.2023
Accepted: 06.11.2023
Published online: 08.11.2023

How to cite this paper: Maluleka, M. L., & Chummun, B. Z. (2023). A review of existing literature on competitive intelligence and insurance markets. Corporate Governance and Organizational Behavior Review, 7(4), 183–199. https://doi.org/10.22495/cgobrv7i4p16

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to investigate the impact of the relationship between information technology (IT) governance and administrative information quality on decision-making in the banking industry. The study is motivated by the increasing importance of IT in the banking sector and the need to ensure the quality and reliability of administrative information. The study uses a quantitative research design, and the data was collected from 197 respondents working in different Saudi Arabian banks. This study's findings indicate a significant positive relationship between IT governance and administrative information quality in the banking industry. Furthermore, the study found that administrative information quality significantly impacts decision-making in the banking industry. The study concludes that effective IT governance and the provision of high-quality administrative information are critical factors in improving decision-making in the banking industry. Overall, this study provides valuable insights into the importance of IT governance and administrative information quality in the banking industry and how they can contribute to improved decision-making processes. The findings of this study have implications for banks and their management in terms of developing effective IT governance practices and improving the quality of administrative information.

Keywords: Information Technology, Corporate Governance Principles, IT Governance, Quality of Information, Decision-Making

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G30, G21, C12

Received: 16.01.2023
Accepted: 01.11.2023
Published online: 03.11.2023

How to cite this paper: Alaqla, M. F. (2023). The impact of IT governance and administrative information quality on decision-making in the banking sector. Corporate Governance and Organizational Behavior Review, 7(4), 171–182. https://doi.org/10.22495/cgobrv7i4p15

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Abstract

Entrepreneurship has received much recognition worldwide in both the academic and corporate fields, mainly due to its contribution to job creation and economic development. Entrepreneurship education was identified across the literature as one of the key drivers of entrepreneurship intention. For this purpose, Jena (2020) argued that entrepreneurship education is a good predictor of how competitive a country's economy is. However, in South Africa, few studies have been conducted on entrepreneurship education offered in local universities. This study, therefore, sought to investigate the impact of entrepreneurship education on students' entrepreneurship intentions. A survey was conducted with a sample of 197 undergraduate students selected from two public universities in Durban. Data were collected using a self-administered questionnaire and analysed using Statistical Package for the Social Sciences (SPSS) version 27. The findings of the study concluded a strong positive significant relationship between entrepreneurship education and students' entrepreneurial intentions (r = 0.79, p < 0.01). However, regression analysis concluded that subjective norms are a good predictor of students' entrepreneurial intentions compared to entrepreneurship education (B = 0.347; t = 3.785; p < 0.01). Based on these results, policymakers, university management, and curriculum developers should promote entrepreneurship education and focus more on its design for effective results.

Keywords: Entrepreneurship, Entrepreneurship Education, Entrepreneurship Intention, Entrepreneurial Development, Microentrepreneurs, Start-ups

Authors' individual contribution: Conceptualization — M.A.P. and W.C.; Methodology — M.A.P. and W.C.; Formal Analysis — M.A.P. and W.C.; Investigation — M.A.P. and W.C.; Writing — Original Draft — M.A.P. and W.C.; Writing — Review & Editing — M.A.P. and W.C.; Visualization — M.A.P. and W.C.; Supervision — M.A.P.; Project Administration — M.A.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L2, L26, M13

Received: 12.04.2023
Accepted: 27.10.2023
Published online: 30.10.2023

How to cite this paper: Phiri, M. A., & Chasaya, W. (2023). Entrepreneurship education as a driver of entrepreneurial intentions amongst university students. Corporate Governance and Organizational Behavior Review, 7(4), 161–170. https://doi.org/10.22495/cgobrv7i4p14

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Abstract

A firm's policy of distribution over current and future time periods influences the capital structure of the firm and its profitability. Managers decide on the amount of effort input in such a context of financial structure to maximize their utility. Nevertheless, shareholders' preferred distribution of income is determined by the goal of corporate value maximization. The study aims to reach an optimal level of income distribution and reinvestment over current and future periods in which both the manager's utility and shareholders' corporate value have been maximized. The study adopts Lagrange's multipliers method and the discounted cash flow valuation model of corporate value maximization. By processing a method of mathematical deduction and optimization, the study aims to reach an optimal equilibrium level of the dividend distribution model and explore key factors in the model for the determination of the distribution of income. As a result, the study concluded an optimal dividend distribution model, in which six factors jointly determine a theoretical equilibrium of optimization. These factors consist of the capital structure of the firm, the tax shield from debt financing, the growth rate of the dividend, dividend tax, the investment strategy of the principal, and the cost of capital.

Keywords: Company Finance, Corporate Governance, Agency Problem, Dividend Policy

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G35

Received: 22.12.2022
Accepted: 23.10.2023
Published online: 26.10.2023

How to cite this paper: Jiang, J. (2023). A synthesized distribution model: Asymmetric information, agency problem, and intertemporal optimization. Corporate Governance and Organizational Behavior Review, 7(4), 152–160. https://doi.org/10.22495/cgobrv7i4p13

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Abstract

The aim of this research is to enhance existing literature pertaining to corporate disclosure through an investigation of financial risk information that has been reported in annual reports. The study also seeks to determine the extent of disclosure and how it has changed over time. Furthermore, it examines the effects of board busyness, size, independence, and meetings on financial risk disclosure. The content analysis method was used to evaluate the annual reports of 4 energy companies over a 13-year period, resulting in 52 firm-year observations. The study used secondary data sources and focused on companies that were listed between 2009 and 2021. The findings indicate that board size has a positive impact on financial risk disclosure, whereas board independence has a negative impact. However, no significant effects were found for board busyness and board meetings. These results were robust across various estimation techniques. However, the study is limited in that it only considered certain board characteristics, and future research should explore the effects of other board characteristics and incorporate additional committee characteristics.

Keywords: Financial Risk Disclosure, Board Busyness, Board Size, Board Independence, Board Meetings, Saudi Arabia

Authors' individual contribution: Conceptualization — S.A.A.A.-D. and K.O.A.; Methodology — S.A.A.A.-D.; Formal Analysis — S.A.A.A.-D.; Investigation — S.A.A.A.-D.; Resources — S.A.A.A.-D. and K.O.A.; Writing — Original Draft — S.A.A.A.-D.; Writing — Review & Editing — S.A.A.A.-D. and K.O.A.; Project Administration — K.O.A.; Funding Acquisition — K.O.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G32, G34, M41, O13, O16, Q56

Received: 05.06.2023
Accepted: 19.10.2023
Published online: 23.10.2023

How to cite this paper: Al-Dubai, S. A. A., & Alotaibi, K. O. (2023). Examining the relationship between board characteristics and financial risk disclosure: A longitudinal analysis based on agency theory. Corporate Governance and Organizational Behavior Review, 7(4), 137–151. https://doi.org/10.22495/cgobrv7i4p12

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The purpose of this paper is to investigate the major factors that impact the level of tax ethics and tax compliance in Jordan. Furthermore, the paper addresses under which circumstances tax evasion could be accepted in order to highlight the differences between the tax ethics of Jordanian citizens and those of citizens of other countries. This research was conducted using a questionnaire survey, involving tax auditors, Jordanian Certified Public Accountants (JCPA holders), and financial managers of shareholding companies registered at Amman Stock Exchange (ASE). The paper reveals that Jordanian citizens do not evade taxes due to probable personal gains but rather because they believe that the state is incompetent in the appropriate allocation of public money and that the current political and tax system is ineffective or corrupt. Our results show that tax ethics is affected by determinants under three stages in terms of their importance in shaping taxpayers' choices. First, it is taxpayers' perception of their governments' credibility; since governmental corruption might justify tax non-compliance. By contrast, efficient governmental tax revenue expenditure avenues had a negative impact on tax non-compliance decisions. The second stage includes when the taxation system is perceived as unjust, when the tax rates are too high, and when the taxpayers are facing financial constraints, these circumstances were the central determinants of tax ethics and had a positive impact on tax non-compliance decisions. The third stage involves the surrounding referent groups since they have either a positive or negative effect on taxpayers' decisions to evade tax, at least partly, in their communities or societies. In addition to the referent group, audit rates, and penalty rates are involved in the third stage. We argue that for tax evasion to be checked and for tax compliance to acquire normative ethical connotations, the state needs to stop fiddling with the tax system and try, instead, to create a high-trust culture. The key to this is for the state to establish its own credibility first.

Keywords: Tax Ethics, Tax Evasion, Emerging Markets, Jordan

Authors' individual contribution: Conceptualization — F.A.-A. and K.A.S.; Methodology — F.A.-A. and K.A.S.; Data Curation — F.A.-A. and K.A.S.; Investigation — F.A.-A. and K.A.S.; Writing — Original Draft — F.A.-A. and K.A.S.; Writing — Review & Editing — F.A.-A. and K.A.S.; Funding Acquisition — F.A.-A. and K.A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G3, H7, M2, M4, Z1

Received: 07.01.2022
Accepted: 17.10.2023
Published online: 19.10.2023

How to cite this paper: Al-Asfour, F., & Abu Saleem, K. (2023). Tax ethics and tax compliance: Evidence from emerging markets. Corporate Governance and Organizational Behavior Review, 7(4), 127–136. https://doi.org/10.22495/cgobrv7i4p11

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The rapid advancement of technology 4.0 has resulted in significant changes in society's lifestyle, bringing both benefits and complex issues, including those in higher education. To address these challenges, university leaders play a crucial role in leveraging digital technology toward a better future. This study aims to assess the implementation of digital leadership in achieving a world-class university in the era of Industry 4.0 in state universities in Malang City. Using a quantitative approach and survey research design, the study's population comprises students and lecturers from four state universities in Malang City. From the population of 151,921, 347 respondents were selected using Isaac and Michael's (1983) formula with a 5% error rate. The study collected data through a questionnaire and analyzed it using Statistical Package for the Social Sciences (SPSS) and Microsoft Excel to present descriptive data on the perspectives of the three parties. The one-way analysis of variance (ANOVA) used in this study tested the hypothesis that there is no significant difference in the implementation of digital leadership in state universities in Malang City. The results revealed a significant difference in the implementation of digital leadership. The academic community in state universities in Malang City strongly agreed that their leaders need to provide the necessary information systems to achieve digital leadership toward a world-class university. However, digital leadership is not yet comprehensively implemented.

Keywords: Digital, Leadership, World Class University, Academic, 4.0 Era, Higher Education, Malang City, System Information

Authors' individual contribution: Conceptualization — S.; Methodology — A.Q.M.; Data Curation — A.Q.M.; Writing — Original Draft — B.A.P.; Writing — Review & Editing — S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O10, O14, O52

Received: 20.11.2022
Accepted: 13.10.2023
Published online: 17.10.2023

How to cite this paper: Suryadi, Muslim, A. Q., & Praja, B. A. (2023). Analysis of digital leadership in higher education in creating a world-class university at state universities. Corporate Governance and Organizational Behavior Review, 7(4), 119–126. https://doi.org/10.22495/cgobrv7i4p10

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Abstract

The concept of creating shared value (CSV) (Porter & Kramer, 2006, 2011) opens a new chapter for corporate social responsibility (CSR) studies, yet the literature is riddled with ambiguity, and lacking empirical evidence. Drawing on signaling (Stiglitz, 2000; Spence, 2002; Connelly et al., 2011) and organizational commitment theories (Meyer & Allen, 1984, 1997), the study defines the CSV approach incorporating intangible and soft dimensions — commitment and compliance, from behavior and motivation perspectives. By applying secondary data methodology, the study operationalizes different CSR approaches by clustering various CSR behaviors of Chinese public companies and extends the study covering emerging economies. The results provide valuable empirical evidence that the CSV approach maximizes the impact of CSR on firm competitiveness, contributing to the theoretical development of the concept. It also contributes to the literature on firm competitiveness by offering an integrated framework consolidating resource-based view (RBV) (Barney, 1991), dynamics capability (Teece et al., 1997; Teece & Pisano, 2003; Teece, 2007, 2012; Mousavi et al., 2018, 2019), and CSV perspectives. By theoretically constructing the RBV perspective including financial and technological capacity while the dynamic capability perspective measured by management team education diversity, the paper also explored their corresponding impacts on firm competitiveness.

Keywords: Management Team Education Diversity, CSV, CSR, Competitiveness, Financial Capacity, Technological Capacity

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M10, M14, L21

Received: 12.04.2023
Accepted: 10.10.2023
Published online: 13.10.2023

How to cite this paper: Sun, T. (2023). Does creating shared value make a difference? Exploring different determinants of firm competitiveness. Corporate Governance and Organizational Behavior Review, 7(4), 104–118. https://doi.org/10.22495/cgobrv7i4p9

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Differences in interests lead to conflict between managers with owners of capital because managers do not always align interests with the interests of company owners (Jensen & Meckling, 1976). Corporate governance has a very important role in increasing various growths, one of which is the growth of the company's finances. In the application of corporate governance, it takes several parties who can bridge corporate governance to be applied in the company. The board of commissioners is the core of governance that is tasked with ensuring the implementation of the company's strategy, supervising management, and requiring accountability. The purpose of this study was to find out what important parties in the company had a significant impact on the company's finances as measured through the return on assets (ROA) of mining companies. This study uses secondary data collected from financial statements and annual reports from mining companies listed on the Indonesia Stock Exchange (IDX) that can be accessed regularly. In this study, data analysis to test hypotheses was multiple linear regression analysis. The analysis of multiple linear regression data measures the interval or ratio data to know whether the free variables studied have a good correlation. The results of the study show that all parties who have an important role in bridging corporate governance such as the board of commissioners, independent commissioners, board of directors, and audit committee, have no significant influence on the growth of ROA in the company.

Keywords: Corporate Governance, Good Corporate Governance, ROA

Authors' individual contribution: Conceptualization — M., M.F., and D.W.; Investigation — K.R. and M.D.A.; Resources — M. and A.W.; Writing — M., M.F., and A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D7, M2, M4, Z3

Received: 09.08.2022
Accepted: 09.10.2023
Published online: 12.10.2023

How to cite this paper: Meiryani, Fahlevi, M., Rivalldo, K., Ariefianto, M. D., Winoto, A., Wahyuningtias, D., & Syamil, A. (2023). Corporate governance and return on assets in mining industry companies: The developing market study. Corporate Governance and Organizational Behavior Review, 7(4), 94–103. https://doi.org/10.22495/cgobrv7i4p8

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Abstract

The education sector is undergoing huge transformations in response to changing situations and circumstances. In order to effectively adapt to the evolving demands of the new situation, innovative work behaviours among educators have become increasingly crucial. This study aims to investigate teachers' perceptions of innovative work behaviours in Jordan, evaluate the implementation of internal marketing within the Jordanian education sector, and examine the influence of internal marketing on enhancing innovative work behaviours. Drawing on a qualitative research methodology, semi-structured interviews were conducted with teachers of the first three grades in Jordanian public schools. Thematic analysis was employed to interpret the interview data. The main themes that emerged from the analysis were motivation and collaboration. Findings show that motivated teachers are more likely to invest their time and effort in experimenting with innovative teaching methods and finding solutions to educational challenges. Collaboration fosters an environment of shared knowledge, support, and creativity among teachers. These findings imply the influence of internal marketing in guiding the motivation and collaboration among teachers. By understanding the impact of internal marketing on innovative work behaviours, policymakers and educational institutions can develop effective strategies to enhance the quality of education in the country.

Keywords: Adaptation, Sustainability, Innovation, Education Sector, Transformation

Authors' individual contribution: Conceptualization — N.H.N.M.; Methodology — B.F.F.A.I. and N.H.N.M.; Validation — B.F.F.A.I.; Formal Analysis — B.F.F.A.I. and N.H.N.M.; Writing — Original Draft — B.F.F.A.I. and N.H.N.M.; Writing — Review & Editing — N.H.N.M. and M.M.A.; Supervision — N.H.N.M. and M.M.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J81, M54, O31

Received: 20.03.2023
Accepted: 06.10.2023
Published online: 10.10.2023

How to cite this paper: Al Issa, B. F. F., Nik Mat, N. H., & Anuar, M. M. (2023). Unleashing innovation: The role of internal marketing in education sector. Corporate Governance and Organizational Behavior Review, 7(4), 82–93. https://doi.org/10.22495/cgobrv7i4p7

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Recent empirical studies have recognised that trainee motivation indirectly influences the relationship between leadership training programmes and productivity. Although this relationship has been widely studied, the role of trainee motivation as a mediating variable has not been discussed in detail in the training management literature. This study focuses on the relationship between leadership training programmes and productivity and examines the role of trainee motivation as a mediating variable. A survey method was used to gather 328 sets of questionnaires from various categories of positions in the central administration sector, in Malaysia. This study employed SmartPLS programme path model analysis to evaluate the measurement and structural models and further examine the significance level of the research hypotheses. The results of path model analysis testing confirm that trainee motivation indirectly influences the relationship between leadership training programmes and productivity. This study's findings can be used as important certificates by management to understand the diversity of perspectives on trainee motivation and design a training programme master plan that can increase employee inspiration to succeed and maintain the organisation's strategies and goals in an era of global competition and an unstable economy.

Keywords: Leadership Training Programme, Productivity, SmartPLS, Structural Model, Trainee Motivation

Authors' individual contribution: Conceptualization — N.I.M., A.S.O., S.A., and I.A.R.; Formal Analysis — N.I.M.; Investigation — N.I.M., A.S.O., S.A., and I.A.R.; Data Curation — N.I.M.; Writing — Review & Editing — N.I.M. and S.A.; Funding Acquisition — N.I.M., A.S.O., S.A., and I.A.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, M2, L2

Received: 11.04.2023
Accepted: 03.10.2023
Published online: 06.10.2023

How to cite this paper: Mohamad, N. I., Othman, A. S., Abdullah, S., & Abd Rahman, I. (2023). Leadership training programmes and productivity: The influence of trainee motivation as a mediator. Corporate Governance and Organizational Behavior Review, 7(4), 70–81. https://doi.org/10.22495/cgobrv7i4p6

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to reveal the effect of compensation and work engagement on the turnover intention with organizational climate as a moderating variable in Sharia banks in Indonesia. This study also analyzes the multi-group to understand the difference from the gender aspect in Sharia banks in Indonesia. Sharia bank is an alternative to conventional banking, which has proven to be resistant to various crises (Dibooglu et al., 2022). This study used a quantitative approach with convenience sampling with a total of 291 officer-level employee respondents. The partial least squares structural equation modeling (PLS-SEM) method was used to analyze the data from valid samples. The empirical findings corroborate previous studies that compensation negatively impacts turnover intention. Likewise, work engagement negatively impacts turnover intention. The results also reveal that work engagement can mediate the negative effect of compensation on turnover intention, while organizational climate can moderate the impact of compensation and turnover intention. Finally, our study also provides insight that there is no gender difference in turnover intention.

Keywords: Compensation, Work Engagement, Organization Climate, Turnover Intention, Gender

Authors' individual contribution: Conceptualization — B.S. and A.W.; Investigation — M.S.E. and I.F.; Resources — M.S.E. and I.F.; Writing — Original Draft — B.S. and B.S.N.; Writing — Review & Editing — A.W. and B.S.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: I23, J63, M12

Received: 31.08.2022
Accepted: 02.10.2023
Published online: 05.10.2023

How to cite this paper: Santoso, B., Wibowo, A., Effendi, M. S., Narmaditya, B. S., & Fahrizal, I. (2023). Does organizational climate moderate compensation for turnover intention? Lesson from Sharia banks. Corporate Governance and Organizational Behavior Review, 7(4), 60–69. https://doi.org/10.22495/cgobrv7i4p5

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This article conducts a systematic literature review (SLR) analysis and relates to talent management (TM) in the manufacturing industry. The objectives are first, to provide a comprehensive analysis of TM research in the manufacturing industry; second, to identify and discuss key research topics, and third, to recommend avenues for future research. The study examines publications that were published between 2008 and 2022, which were thoroughly searched and obtained from four established databases: Scopus, Web of Science, Mendeley, and Google Scholar. According to the findings, academics are becoming more interested in TM in the manufacturing industry, which appears to be related to a scarcity of talent with high knowledge, skills, and abilities (KSAs), which contributes to negative organisational outcomes. The article presents findings that have relevance for both academia and practitioners. It provides data on existing research while also emphasizing the need for further investigation into the discovery, value, and implementation of TM. As a result, this article offers a pathway for researchers to conduct empirical studies on the role of TM practices in effectively and efficiently managing manufacturing talent with high KSAs. Furthermore, the article adheres to the preferred reporting items for systematic reviews and meta-analysis (PRISMA) requirements for SLRs, ensuring a structured approach to the content and methodology of the study.

Keywords: Human Resource Management, Manufacturing, Systematic Literature Review, Talent Management

Authors' individual contribution: Conceptualization — N.E.A. and N.H.; Methodology — N.E.A. and K.W.-L.; Formal Analysis — N.E.A.; Resources — N.E.A.; Data Curation — N.E.A.; Writing — Original Draft — N.E.A., N.H., and K.W.-L.; Writing — Review & Editing — N.H., K.W.-L., and N.H.M.; Visualization — N.H., K.W.-L., and N.H.M.; Supervision — N.H. and K.W.-L.; Project Administration — N.E.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M5, M51, M52, M53, M54

Received: 31.03.2023
Accepted: 29.09.2023
Published online: 03.10.2023

How to cite this paper: Alias, N. E., Hussein, N., Wei-Loon, K., & Marmaya, N. H. (2023). Talent management in the manufacturing sector: A systematic literature review. Corporate Governance and Organizational Behavior Review, 7(4), 41–59. https://doi.org/10.22495/cgobrv7i4p4

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Abstract

This study aims to facilitate sustainable growth in hotels by understanding tourists' preferences. Though there is existing research on customer satisfaction in hotels (Radojevic et al., 2017), this study narrows the scope to three star category hotels in Chandigarh, India, with its unique data collection approach based on traveller rankings of Trip Advisor (2023) to select the top twenty hotels, ensuring a representative sample of highly ranked establishments. The five-point Likert scale was used in a closed-ended questionnaire to gather primary data from visitors who stayed in the city's hotels between March 5 and April 5, 2023. Convenience sampling was used, resulting in 385 participants selected from the chosen hotels. Mean ratings were calculated for 25 hotel service attributes from the respondents' responses and used for the importance performance analysis (IPA). The results indicate that hotels need to prioritize specific attributes, such as spaciousness of rooms, quietness of rooms, bathroom amenities, value for money, taste and variety of food, and prompt service. The study also identified areas where the hotels performed well, such as cleanliness, safety and security, staff communication and friendliness, and multiple modes of payment. Overall, the study provides valuable insights for hotel managers to meet customer expectations.

Keywords: Customer Satisfaction, Importance Performance Analysis, Influencing Factors, Likert Scale, Hotel Amenities

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M0, M1, M3

Received: 08.06.2023
Accepted: 27.09.2023
Published online: 29.09.2023

How to cite this paper: Sharma, S. (2023). Unraveling the customer experience puzzle: Factors affecting satisfaction in three star hotels. Corporate Governance and Organizational Behavior Review, 7(4), 30–40. https://doi.org/10.22495/cgobrv7i4p3

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to examine the effects of management characteristics, including perceptiveness, support, and willingness on the adoption of International Financial Reporting Standards (IFRS) for small and medium-sized enterprises (SMEs) in Vietnam. The research collects secondary data via a questionnaire from 218 responses by senior managers and financial directors of SMEs in Vietnam during the period from January 2022 to June 2022. The model's scales are established and tested by Cronbach's alpha, exploratory factor analysis (EFA), and confirmatory factor analysis (CFA). Then, structural equation modeling (SEM) is used to test research hypotheses. The research results confirm that the readiness to apply IFRS in SMEs in Vietnam depends greatly on the perceptiveness and support of managers of researched firms, consistent with previous studies (Moqbel et al., 2013). Upon the analysis results, the research has proposed instructive recommendations to encourage SMEs to accelerate the preparation of firms' financial statements complying with IFRS. By doing these, firms will increase their competitive advantages and promote international integration. The study also contributes to the literature as a lesson to countries in adopting full IFRS.

Keywords: IFRS Adoption, SMEs, Managerial Support, Vietnam

Authors' individual contribution: Conceptualization — L.S.N. and D.C.P.; Methodology — D.C.P.; Investigation — L.S.N.; Resources — L.S.N.; Writing — L.S.N. and D.C.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M40, M41, M48

Received: 16.03.2023
Accepted: 26.09.2023
Published online: 28.09.2023

How to cite this paper: Nguyen, L. S., & Pham, D. C. (2023). The effects of management characteristics on the adoption of International Financial Reporting Standards for small and medium-sized enterprises. Corporate Governance and Organizational Behavior Review, 7(4), 22–29. https://doi.org/10.22495/cgobrv7i4p2

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

An investigation into the grievance management process of organizations is imperative with an increasing concern over healthy work cultures in organizations. Using a behavior-response model, a structured survey was administered to employees of a leading healthcare institute to explore their perspectives on the grievance management process. According to the findings of the study, there is a strong association between grievance management constructs and the grievance management process, and factors like acceptance of grievance by supervisors, supervisors' attitudes toward grievant, and employee and supervisor trust play an important role in grievance resolution (Monish & Dhanabhakyam, 2022; Ochieng & Kamau, 2021; Elbaz et al., 2022; Casper, 2021; Kimotho & Ogol, 2021; Dichner, 2021; Aktar, 2021; Singh & Agarwal, 2022; Hammoud et al., 2022). Based on the findings, the study delivers implications for organizations to prevent chaos, stress, and conflict in the workplace through a better grievance management process.

Keywords: Employee Grievance, Grievance Management, Supervisor, Workplace, Equity, Hospital, Health Care

Authors' individual contribution: Conceptualization — R.G. and S.R.; Methodology — S.R. and T.R.; Data Curation — R.G. and S.R.; Investigation — T.R.; Writing — Original Draft — R.G. and S.R.; Writing — Review & Editing — R.G. and S.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H12, J52, J53, J54

Received: 07.09.2022
Accepted: 25.09.2023
Published online: 27.09.2023

How to cite this paper: Gulzar, R., Rehman, S., & Radouch, T. (2023). Process of grievance management in health care organization: An employee perspective. Corporate Governance and Organizational Behavior Review, 7(4), 8–21. https://doi.org/10.22495/cgobrv7i4p1

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This issue of the journal Corporate Governance and Organizational Behavior Review was published on September 25, 2023.

By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

How to cite: Gürünlü, M. (2023). Editorial: Corporate governance and organizational architecture at crossroads [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 234–236. https://doi.org/10.22495/cgobrv7i3sieditorial

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Although the relationship among default risk, size, and equity returns is comprehensively investigated in developed stock markets, the analysis is still lacking for Vietnam, an important emerging market in Southeast Asia. The key aim of this research is to examine the relationship among default risk, size, and equity returns in the Vietnamese stock market, and compare the explanatory power of the default-risk factor to the size factor in asset pricing models. We use an option-based model to obtain the proxy of default risk for approximately 360 listed firms in Vietnam. Empirical results show that distance-to-default is negatively related to stock returns. When size is controlled, the default effect exists in different size-ranked portfolios. In asset pricing models, the default-risk factor is more powerful in explaining Vietnamese equity returns compared to the size factor of Fama and French (1993). As a result, default risk is a significant factor in Vietnamese stock returns, consistent with the risk-based point of view.

Keywords: Stock Returns, Default Risk, Distance-to-Default, Financial Markets, Organizational Finance

Authors' individual contribution: Conceptualization — L.Q.D.; Methodology — L.Q.D.; Validation — M.D.T.; Writing — Review & Editing — L.Q.D. and P.D.K.; Visualization — P.D.K..; Supervision — M.D.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G12, G32, G33

Received: 10.05.2023
Accepted: 11.09.2023
Published online: 14.09.2023

How to cite this paper: Quy Duong, L., Khanh, P. D., & Tran, M. D. (2023). Default risk, size, and equity returns: Evidence from an emerging stock market [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 444–451. https://doi.org/10.22495/cgobrv7i3sip18

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Accounting information systems (AIS) provide appropriate information for managers to make decisions and improve corporate performance. When enterprises use appropriate AIS, enterprises can improve their corporate performance because the AIS can protect data, and assets, and generate useful information, thereby improving the decision-making process to achieve business goals (Akhter, 2022). Today, the need to apply appropriate AIS is increasing due to the influence of AIS on corporate performance (Al-Delawi & Ramo, 2020). This study is conducted to investigate AIS and the impact of AIS on the corporate performance of joint stock commercial banks in Vietnam. We employ both qualitative and quantitative methods for processing data collected from 22 joint stock commercial banks in Vietnam. The study sent 250 questionnaires to managers of joint stock commercial banks in Vietnam. The results reveal that there is a positive relationship between AIS and the corporate performance of joint stock commercial banks in Vietnam. In addition, research has also shown in more detail the relationship between AIS and corporate performance based on the application of agency theory. Based on the findings, some recommendations are proposed relating to AIS for enhancing the corporate performance of joint stock commercial banks in Vietnam.

Keywords: Agency Theory, Corporate Performance, Accounting Information Systems (AIS), Internal Controls, Managers

Authors' individual contribution: Conceptualization — T.T.T.; Methodology — T.T.T.; Resources — A.H.N.; Writing — Original Draft — T.T.T.; Writing — Review & Editing — T.T.T.; Visualization — T.T.T.; Funding Acquisition — T.T.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, M10, M40, M41, O30

Received: 05.10.2022
Accepted: 06.09.2023
Published online: 08.09.2023

How to cite this paper: Tran Trung, T., & Huu Nguyen, A. (2023). Impact of accounting information systems on corporate performance: An application of agency theory [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 429–443. https://doi.org/10.22495/cgobrv7i3sip17

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates the effect of woman's representation in the local government head and legislative positions on public service quality in Indonesian local governments. We use secondary data from the Ministry of Internal Affairs, a local government website, and the Indonesia Statistics Bureau from 2016–2019, analyzed with panel data regression analysis. Overall, we find that local government public service quality is at a high level. Meanwhile, women's political representation in Indonesian local government is still considerably low, both in legislative and top executive positions. Empirical findings demonstrate that women's representation in the legislative board provides a positive impact on public service quality while women's local government head has no significant effect. The effect is consistent both in district local governments and city local governments observations. Our study provides recommendations that suggest that women's representation in local politics should be increased to promote gender equality which leads to better public governance.

Keywords: Christian Business Leader, Crisis Leadership, Management, Entrepreneurship, Organisational Culture

Authors' individual contribution: Conceptualization — J.M.K., N.H.B., and M.A.P.; Methodology — J.M.K., N.H.B., and M.A.P.; Formal Analysis — N.H.B. and M.A.P.; Investigation — J.M.K.; Writing — Original Draft — J.M.K.; Writing — Review & Editing — J.M.K., N.H.B., and M.A.P.; Supervision — M.A.P.; Project Administration — J.M.K., N.H.B., and M.A.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D810, M140, Z120

Received: 12.12.2022
Accepted: 04.09.2023
Published online: 07.09.2023

How to cite this paper: Kapotwe, J. M., Bamata, N. H., & Phiri, M. A. (2023). The role of crisis leadership in improving organisational culture during the COVID-19 pandemic among Kwazulu-Natal Christian business leaders [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 415–428. https://doi.org/10.22495/cgobrv7i3sip16

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Wealth accumulation aids in the survival and betterment of disadvantaged households. The majority of African households acquire wealth in the form of properties, which form part of their assets. This study aims to investigate the effect of property tax on wealth accumulation. From 1990 through 2019, the study looks at seven African countries: Cameroon, Eswatini, Madagascar, Mauritius, Morocco, South Africa, and Tunisia. The panel vector error correction model (PVECM) was employed as the econometric technique approach. The variables used in the study are property tax, land wealth, political stability, education, and household income. The findings show that property taxes have a positive and significant relationship with wealth accumulation in the long-run in the seven African countries studied. In the short-run, however, the relationship is negative and statistically insignificant. The study recommends a policy review on land ownership to attain easily landed properties and a reduction in property tax.

Keywords: Property Tax, Wealth Accumulation, Panel Vector Error Correction Model, African Households, African Countries

Authors' individual contribution: Conceptualization — F.G.; Methodology — F.G.; Software — F.G.; Validation — F.G.; Formal Analysis — F.G.; Investigation — F.G.; Resources — F.G.; Data Curation — F.G.; Writing — Original Draft — F.G.; Writing — Review & Editing — I.C.; Visualization — F.G.; Supervision — I.C.; Project Administration — I.C.; Funding Acquisition — I.C.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D14, D31, H20

Received: 02.02.2023
Accepted: 01.09.2023
Published online: 04.09.2023

How to cite this paper: Giwa, F., & Choga, I. (2023). The effect of property tax on wealth accumulation in developing economies [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 405–414. https://doi.org/10.22495/cgobrv7i3sip15

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The study was conducted at the Regional Secretariat of Central Kalimantan. The researchers' observations indicated that employee performance was very low; this was reflected in employees not wanting to help colleagues with work difficulties, teamwork within and between areas remained low, and employees not responding positively to tasks assigned to supervisors. The sampling technique used a simple random sample with a total sample of 150 individuals — a data analysis technique using structural equation modeling (SEM). The results showed that ethical leadership and work culture had positive and significant effects on organizational citizenship behavior (OCB), while public service motivation had no significant effect on OCB. Ethical leadership had no significant effect on performance, whereas work culture and public service motivation had positive effects, especially on performance. OCB has a positive and significant impact on employee performance. OCB conveys the impact of ethical leadership and work culture on employee performance, however, OCB does not assess the impact of public service motivation on employee performance.

Keywords: Ethical Leadership, Work Culture, Public Service, OCB, Work Performance

Authors' individual contribution: Conceptualization — I. and S.R.; Methodology — I. and U.; Validation — I. and S.R.; Formal Analysis — I. and S.R.; Resources — I. and S.R.; Data Curation — U. and S.R.; Writing — Original Draft — I.; Writing — Review & Editing — U. and S.R.; Supervision — U. and S.R.; Project Administration — I.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D23, D73, H11, H83, M11

Received: 28.11.2022
Accepted: 29.08.2023
Published online: 31.08.2023

How to cite this paper: Iswanti, Ujianto, & Riyadi, S. (2023). Ethical leadership, culture, and public service motivation on organizational citizenship behavior: A case study of civil servants [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 395–404. https://doi.org/10.22495/cgobrv7i3sip14

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to analyze the influence of organizational culture and work motivation on the performance of civil servants in Indonesia. This research is a quantitative study, using survey methods and distributing questionnaires to 31 respondents from the Regional Development Planning Agency (RDPA), Central Maluku Regency, through a census. The statistical method uses multiple regression analysis with IBM SPSS Statistics software version 20.0. The results of the study explain that motivation has no effect on employee performance. This condition implies that motivation needs to be encouraged and driven by the leadership so that employees want to work optimally. On the other hand, factors of communication, coordination, environment, achievement recognition, and mutual respect are needed to create comfortable working conditions for all parties. Meanwhile, organizational culture factors have a very positive effect on employee performance. These results prove that a strong organizational culture is the result of spreading trust and values that develop within an organization and directing employee behavior in the desired direction thereby increasing a sense of comfort and loyalty to the organization.

Keywords: Survey, Motivation, Organizational Culture, Civil Servant Performance, Indonesia

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: L22, L23, L25

Received: 23.09.2022
Accepted: 24.08.2023
Published online: 28.08.2023

How to cite this paper: Karepesina, M. T. (2023). Performance of civil servants: The role of motivation and organizational culture [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 385–394. https://doi.org/10.22495/cgobrv7i3sip13

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Public service quality has been a significant issue in Indonesia (Lanin & Hermanto, 2019) along with woman's representation in politics (Aspinall et al., 2021). This study investigates the effect of woman's representation in the local government head and legislative positions on public service quality in Indonesian local governments. We use secondary data from the Ministry of Internal Affairs, a local government website, and the Indonesia Statistics Bureau from 2016–2019, analyzed with panel data regression analysis. Overall, we find that local government public service quality is at a high level. Meanwhile, women's political representation in Indonesian local government is still considerably low, both in legislative and top executive positions. Empirical findings demonstrate that women's representation in the legislative board provides a positive impact on public service quality while women's local government head has no significant effect. The effect is consistent both in district local governments and city local governments observations. Our study provides recommendations that suggest that women's representation in local politics should be increased to promote gender equality which leads to better public governance.

Keywords: Indonesia, Local Government, Public Service Quality, Women Legislators, Woman Local Head

Authors' individual contribution: Conceptualization — S.S.; Methodology — T.A.; Software — T.A.; Validation — S.S.; Formal Analysis — T.A.; Investigation — S.S.; Resources — S.S.; Data Curation — A.N.; Writing — Original Draft — E.G.; Writing — Review & Editing — Y.A.A.; Visualization — E.G.; Supervision — Y.A.A.; Project Administration — A.N.; Funding Acquisition — Y.A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H11, H70, H83, M40, M41

Received: 08.11.2022
Accepted: 21.08.2023
Published online: 24.08.2023

How to cite this paper: Aryani, Y. A., Gantyowati, E., Nurrahmawati, A., Arifin, T., & Sutaryo, S. (2023). Women's political representation in local government: Its impact on public service quality [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 375–384. https://doi.org/10.22495/cgobrv7i3sip12

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Digitalization, which gained momentum peculiarly after the invention of the Internet, has had a profound impact on the shape of the economy. It has changed the way of doing business and the labor market structure (Peetz, 2019). This change has brought the rise of automatized business processes and public services which aim to eliminate human manual work but at the same time cannot be realized without humans as a main component of information and communication technology (ICT). In order to fully leverage the positive effects of human capital in digitization, individuals must possess essential digital skills. This paper highlights the importance of citizens' ICT skills for the acceleration of the digital economy, therefore the empirical analysis conducted examines the impact of different levels of digital skills on the digitalization of the economy. Additionally, the paper investigates whether the way individuals acquire digital skills differs between highly digitalized European Union (EU) economies and other parts of the Union. In this paper, secondary data sourced from Eurostat was used. To address the research questions, the pooled ordinary least squares (OLS) and least-square dummy variable (LSDV) models were utilized as well as the t-test. The findings of the study reveal a positive impact of digital skills on the digitalization of the economy. Furthermore, significant differences in the ways citizens acquire digital skills in most digitalized economies of the EU are uncovered.

Keywords: Digital Economy, Digital Skills, European Union, Ways of Acquiring Digital Skills

Authors' individual contribution: Conceptualization — P.D. and D.K.; Methodology — P.D. and D.K.; Data Curation — P.D. and D.K.; Writing — Original Draft — P.D. and D.K.; Writing — Review & Editing — P.D. and D.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O10, O14, O52

Received: 07.02.2023
Accepted: 18.08.2023
Published online: 22.08.2023

How to cite this paper: Dalloshi, P., & Kyqyku, D. (2023). Digital skills as an impetus for the acceleration of economic digitalization: EU perspective [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 365–374. https://doi.org/10.22495/cgobrv7i3sip11

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In the current globalised world, the milieu can be a competitive advantage for companies rooted in their local production context, as is the case for the agri-food industry (Riviezzo et al., 2016; Sgroi et al., 2020). Effectively exploiting the relationship between a company, its environment and local assets can be a successful marketing strategy that can trigger a virtuous circle that benefits sustainable tourism development (Askegaard & Kjeldgaard, 2008; Napolitano & De Nisco, 2017). One fundamental tool for exploiting this potential is digital marketing (Marzo-Navarro & Pedraja-Iglesias, 2021). Within this framework, the present research investigates whether and how the wine industry in the Marche region (Italy) communicates its relationships with the milieu and cultural heritage on official websites. We developed a model to analyse the web marketing strategies adopted by 83 wineries belonging to a non-profit association whose main objective is the promotion of wine tourism. The model is structured in four sections: 1) corporate data, 2) content, 3) accessibility, 4) technical aspects. Starting with the gaps identified in the scientific literature on this topic, when we analysed the content dimension, we included information related to corporate and local cultural heritage, branding, and services and partnerships. The results show that the relationship between milieu and cultural heritage is not significantly communicated on the website, revealing much room for improvement. The evaluation model and the managerial implications could be applied to all companies in the agri-food sector and, more generally, in the made-in sector.

Keywords: Heritage Marketing, Web Marketing, Made-in-Italy, Wine Industry, Corporate Heritage, Milieu

Authors' individual contribution: Conceptualization — M.C. and A.R.; Methodology — M.C. and A.R.; Investigation — A.R.; Data Curation — A.R.; Writing — Original Draft — M.C. and A.R.; Writing — Review & Editing — M.C.; Supervision — M.C.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M31, Q13

Received: 03.03.2023
Accepted: 14.08.2023
Published online: 17.08.2023

How to cite this paper: Cerquetti, M., & Romagnoli, A. (2023). Milieu and cultural heritage as a resource for digital marketing: Exploring web marketing strategies in the wine industry [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 347–364. https://doi.org/10.22495/cgobrv7i3sip10

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The importance of positive relationships among colleagues and their impact on several aspects is globally recognized. Time is one of the main and most challenging factors of cooperation (Promethean, 2023). Usually, principals keep their distance from staff, this can lead to misunderstandings, therefore, improving functional communication strengthens interpersonal relationships (Plotinsky, 2022). How cooperative are professionals in pre-university educational institutions in Albania? The aim of this article is to highlight the importance and the benefits that come from the cooperation between teachers and principals. The study discusses how the relationship between teachers and the role of principals in these relationships, affects school performance. It is based on the literature review, also on the combined use of qualitative and quantitative methods. Most of it is focused on analysing the data collected from the questionnaires. The results showed that collaboration between colleagues is beneficial because they share their reflective experiences, evaluate their beliefs about teaching and learning, and build knowledge together. Professionals share materials and provide moral support to their colleagues. The principals of educational institutions play an important role, as they must provide resources that will free teachers from the kind of burdens that can interfere with and interrupt the collaboration process.

Keywords: Cooperation, Colleagues, Pre-University Education, Strategy

Authors' individual contribution: Conceptualization — M.P. and O.G.; Methodology — M.P.; Formal Analysis — M.P.; Data Curation — M.P.; Investigation — O.G.; Resources — O.G.; Writing — Original Draft — M.P.; Writing — Review & Editing — M.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D24, H52, I26, J24

Received: 17.02.2023
Accepted: 10.08.2023
Published online: 14.08.2023

How to cite this paper: Petro, M., & Gega, O. (2023). Relations between colleagues and the principal role in this relationship [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 335–346. https://doi.org/10.22495/cgobrv7i3sip9

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper conducts a bibliometric review of the research on the relationship between boards of directors and the internationalization of companies. Boards of directors play an important role in the success of the internationalization process of companies, as they contribute to strategic decision-making and support access to the resources and capabilities needed to enter the international market. The bibliometric analysis documents are the most influential articles, authors, journals and countries in this field of knowledge, highlighting the diversity of topics addressed. In addition, the co-occurrence analysis reveals the theoretical and conceptual core of the research, knowing the main theories and study variables analyzed. This review lays the groundwork for future research on boards of directors and the internationalization of companies, highlighting the need for more research at a global level, especially in Latin America. It also suggests future lines of research on emerging issues such as board capital and board-to-board networking.

Keywords: Board of Directors, Internationalization of Companies, Corporate Governance, Top Management, CEO

Authors' individual contribution: Conceptualization — D.E.-B.; Methodology — D.E.-B.; Software — D.E.-B.; Validation — D.E.-B.; Formal Analysis — D.E.-B.; Investigation — D.E.-B.; Resources — D.E.-B.; Data Curation — R.H.-B.; Writing — Original Draft — R.H.-B.; Writing — Review & Editing — R.H.-B.; Visualization — R.H.-B.; Supervision — R.H.-B.; Project Administration — R.H.-B.; Funding Acquisition — R.H.-B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, O2, M16

Received: 25.05.2023
Accepted: 09.08.2023
Published online: 11.08.2023

How to cite this paper: Herrera-Barriga, R., & Escandon-Barbosa, D. (2023). Boards of directors and firm internationalization: A bibliometric review [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 318–334. https://doi.org/10.22495/cgobrv7i3sip8

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In many organizations, especially those dealing with services, customer satisfaction is considered a challenge (Pula, 2022). The study is grounded in the theory of customer satisfaction and service quality. The purpose of this study is to examine the relationship between service quality at local independent auditing firms and customer satisfaction. Between September and October 2022, the general accounting and chief accounting departments will be surveyed. There were 250 respondents in the data collection, based on exploratory factor analysis, linear regression, correlation analysis, and scale reliability analysis. According to the study, client happiness and service quality at local independent auditing firms are positively correlated. The effects of the service quality at the component level, however, vary. The findings of the study imply that clients should choose local independent auditing firms that provide high-quality services. There are some suggestions on how to enhance the caliber of their services and the growth of this industry in Vietnam. The study advances our knowledge of local independent auditing firms' levels of service quality.

Keywords: Customer Satisfaction, Service Quality, Accounting, Auditing, Independent Auditing Firms

Authors' individual contribution: Conceptualization — V.D.P. and V.T.D.; Methodology — D.T.D. and V.S.D.; Validation — V.L.L. and V.T.D.; Writing — Review & Editing — D.T.D. and V.S.D.; Visualization — V.D.P. and V.T.D.; Supervision — D.T.D. and V.L.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M31, M20, A10, M41, M42

Received: 22.02.2023
Accepted: 07.08.2023
Published online: 09.08.2023

How to cite this paper: Do, D. T., Dang, V. S., Pham, V. D., Le, V. L., & Dang, V. T. (2023). Influence of local independent audit firms' service quality on customer satisfaction [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 307–317. https://doi.org/10.22495/cgobrv7i3sip7

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Effective audit committees are the best guarantee of sound corporate governance (Levitt, 1999). Thus, the investigation of factors affecting audit committee effectiveness (ACE) is the main objective of this study. Specifically, it evaluates the impact of audit committee independence, financial literacy, authority, and diligence on ACE. A mixed method approach is adopted consisting of a fully crossed, within-subjects design to test the main and interactive weights of the four variables and eight in-depth interviews. The analysis of 55 survey‐based factorial experiments reveals that financial literacy has the greatest effect on the external auditor's decision to assess the effectiveness of audit committees followed by diligence, independence, and authority. Additionally, three significant interactions were found indicating that external auditors process decision-making information configurally, which means that external auditors consider the combined effects of the posited factors. The interviews provide constructive explanations of the effects of the four factors along with their interactive effects. The insights gained from this study are useful to the board of directors, professional bodies, and regulators charged with developing corporate governance seeking the optimal composition of audit committees. These results are vital because they reflect the viewpoint of the external auditors, who are the most communicative and interactive with the audit committees.

Keywords: Audit Committee Effectiveness, Corporate Governance, External Auditor, Mixed Method, Within-Subject Design

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G30, M40, M48

Received: 30.01.2023
Accepted: 04.08.2023
Published online: 07.08.2023

How to cite this paper: Shbeilat, M. K. (2023). Contributors to audit committee effectiveness: An experimental study of external auditors' perception [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 291–306. https://doi.org/10.22495/cgobrv7i3sip6

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

By reviewing the existing literature, this paper aims to investigate linear economy and recycling as a necessary component of a circular economy in a transition economy such as the Kosovo case. Initially, the paper investigates the legal framework for the environment, waste management, recycling industry, circular economy, and green entrepreneurship in Kosovo. This paper is a qualitative research based on a single case study approach aiming to investigate the motivations and obstacles of the first Kosovan entrant firm in the recycling industry, as well as the variety of the products and future plans. The research reveals that the company has implemented a plastic waste recycling initiative, utilizing it for the manufacturing of plastic products. This strategic move aims to minimize costs in comparison to relying solely on imported plastic raw materials. Furthermore, the company's shift towards recycling has significant positive implications for the environment. Among the main obstacles that the company encountered were the lack of adequate and experienced staff in this industry, as well as equipment, but it also mentions power outages as quite harmful for equipment and production. Finally, the conclusions and policy implications are drawn, the research paper limitations are presented and the gaps for further studies are identified.

Keywords: Entrepreneur, Environment, Recycling Industry, Plastic Recycling, Vertical Integration

Authors' individual contribution: Conceptualization — A.A. and B.S.; Methodology — A.A.; Formal Analysis — A.A. and B.S.; Investigation — B.S.; Writing — Original Draft — A.A. and B.S.; Writing — Review & Editing — A.A. and B.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L25, Q53

Received: 06.12.2022
Accepted: 02.08.2023
Published online: 03.08.2023

How to cite this paper: Avdullahi, A., & Shala, B. (2023). Exploring the motivation and obstacles of the first entrant firm in the recycling industry [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 277–290. https://doi.org/10.22495/cgobrv7i3sip5

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The problem of youth unemployment has started to receive attention in a relevant way recently, especially in Europe, where the percentage of unemployment registered for this category of the population is relatively greater than that for the adult population (Perugini & Signorelli, 2010), also being influenced by the last financial crisis (Choudhry et al., 2012). Youth unemployment is a critical social issue because it is linked to a number of aspects of society (Yamamoto, 2011). The purpose of the treatment of this paper is to identify the barriers faced by the young people of Kosovo to enter the labor market. The study uses the quantitative research method, through the use of an online questionnaire, a survey was participated by 496 respondents. The econometric model used in this study is the structural equation model (SEM). The empirical results from the SEM model show that the most important factor is the lack of work experience, which is a barrier to the employment of young people in Kosovo. The results of this paper are important to understand the importance of effectiveness in the design of policies for the elimination of barriers to the employment of young people in Kosovo.

Keywords: Regulation, Challenges, Youth Employment, Developing Country

Authors' individual contribution: Conceptualization — N.I., M.I., and A.G.; Methodology — A.G.; Software — A.G.; Validation — N.I.; Formal Analysis — M.I.; Investigation — N.I. and A.G.; Resources — N.I., M.I., and A.G.; Data Curation — M.I. and A.G.; Writing — Original Draft — N.I., M.I., and A.G.; Writing — Review & Editing — N.I., M.I., and A.G.; Visualization — N.I. and M.I.; Supervision — N.I., M.I., and A.G.; Project Administration — N.I., M.I., and A.G.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J8, C29, E24

Received: 14.08.2022
Accepted: 31.07.2023
Published online: 01.08.2023

How to cite this paper: Ismajli, N., Ismajli, M., & Gashi, A. (2023). Regulation and challenges of youth employment in the developing country [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 267–276. https://doi.org/10.22495/cgobrv7i3sip4

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the role of feeling trusted within the linkage between high-performance work systems and work engagement. Feeling trusted by a supervisor is believed to be an indicator that employees are valued by an organization (Pfeffer, 1998), but that research has not been completed yet (Baer et al., 2015). Data were collected from 107 employees who work at financial services companies in Jakarta, Indonesia. Structural equation modeling (SEM) was used to explore the linkages between high-performance work systems to work engagement. Later, the Sobel test was used to examine the mediation role from feeling trusted. This research found that high-performance work systems have a positive relationship between feeling trusted and work engagement. Surprisingly, feeling trusted has a negative impact on work engagement. Last, this research revealed that feeling trusted cannot lead high-performance work systems to improve work engagement. Despite this research, being conducted in a multicultural country, it has a paucity of cultural aspects analysis. Accordingly, future research should consider the cultural aspects to advance this form of research further. The theoretical and practical contributions will be discussed later.

Keywords: Work Engagement, High-Performance Work Systems, Feeling Trusted

Authors' individual contribution: Conceptualization — A.S. and M.S.P.; Methodology — S.; Investigation — A.S. and M.S.P.; Writing — Original Draft — A.S.; Writing — Review & Editing — S. and M.S.P.; Supervision — S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J24, J28, M54

Received: 22.12.2022
Accepted: 25.07.2023
Published online: 26.07.2023

How to cite this paper: Santosa, A., Suharnomo, & Perdhana, M. S. (2023). High-performance work systems and work engagement: The role of feeling trusted by supervisor [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 260–266. https://doi.org/10.22495/cgobrv7i3sip3

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study explores the corporate social responsibility (CSR) practices of Department of Tourism (DOT) accredited hotels in Pampanga, the Philippines, and their impact on branding and customer satisfaction. It investigates how CSR practices shape the hotels' image and impact customers' perceptions of their brands. This knowledge can help hotel managers and marketers make informed decisions aligned with Filipino consumers' expectations. The study utilized the descriptive correlational method, assessing the influence of CSR practices on branding and customer satisfaction. Standardized tools developed by Chapple and Moon (2005) for CSR practices, Maynard and Tian (2004) for branding satisfaction, and Mincer (2008) for customer satisfaction were employed. Results showed that economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility formed a very significant set of predictors for branding satisfaction. Regression analysis revealed that the CSR of the respondents indicates that for every unit increase in the respondents' legal accountability, ethical responsibility, and discretionary responsibility could generate 0.279, 0.18, and 0.272 improvements in the satisfaction of the customers. CSR practice helps develop a good image or branding and directly influences customer satisfaction in turn translating into repeat business therefore making profit, which is the bottom line.

Keywords: Corporate Social Responsibility, Economic Responsibility, Legal Responsibility, Ethical Responsibility, Discretionary Responsibility

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M14

Received: 05.04.2023
Accepted: 24.07.2023
Published online: 25.07.2023

How to cite this paper: Simon, N. C. (2023). Corporate social responsibility practices: A study of CSR impact on branding and customer satisfaction [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 249–259. https://doi.org/10.22495/cgobrv7i3sip2

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Although the concept of corporate governance began with the emergence of corporations, the concept of governance can be traced back to ancient China. Currently, discussions of this topic focus mainly on the differences between approaches to and theories about corporate governance and examine their effectiveness, an integrated view that draws on Chinese theories and cultures is missing. This paper attempts to address the gaps by conceptually synthesizing insights from ancient Chinese philosophies to construct an integrated framework; it further defines the legal and ethical constraints while incorporating both an ancient Chinese (i.e., Eastern) philosophical perspective and Western governance elements and both national-level and firm-level variables. Drawing on institutional theory (Scott, 1995, 2004, 2008a, 2008b) and considering the interaction of legal and ethical constraints, a model — the ethical-legal model — constructs and categorizes corporate governance approaches into four types driven by different types of institutions and compares how these approaches are related to different governance perspectives (agent, stewardship and stakeholder). An autonomous (Wu Wei) governance approach is trigged when the cognitive institution is formed as a result of high levels of both legal and ethical constraints and drives autonomous corporate governance with a shift in focus from compliance to commitments.

Keywords: Institutional theory, Corporate Governance, Legal Constraints, Ethical Constraints, Natural Dao, Human Dao, Wu Wei Autonomous

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G30, L20, M10, M40, Z10

Received: 01.03.2023
Accepted: 21.07.2023
Published online: 24.07.2023

How to cite this paper: Sun, T. (2023). An integrated ancient Chinese philosophical perspective on corporate governance [Special issue]. Corporate Governance and Organizational Behavior Review, 7(3), 238–248. https://doi.org/10.22495/cgobrv7i3sip1

This work is licensed under a Creative Commons Attribution 4.0 International License.

This issue of the journal Corporate Governance and Organizational Behavior Review was published on July 21, 2023.

By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

How to cite: Ekponon, A. (2023). Editorial: Can gender equality and auditing be ESG issues? Corporate Governance and Organizational Behavior Review, 7(3), 4–5. https://doi.org/10.22495/cgobrv7i3editorial

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Financial statements can be a powerful way to disseminate information about a company's finances or operations. Alchian's (1950) evolutionary theory of economic change posits that market forces will naturally regulate businesses. This compiles and analyzes the empirical evidence to empirically explore, from an Indonesian perspective, how corporate governance, internal audit quality, and external pressures interact to affect the integrity of financial statements. Quantitative methods were used for this investigation. This information comes from a secondary source. The researchers here used a systematic sampling strategy called purposive sampling. This study used data from 96 samples collected over the course of three years. In this study, the researchers employed the panel data analysis technique with the help of the EViews software. Corporate governance is examined through the lenses of institutional ownership, managerial ownership, audit committees, and the proportion of independent commissioners. Financial statement integrity was found to be significantly affected by independent commissioners but not by institutional ownership, managerial ownership, or audit committees. The consistency of the financial statements is unaffected by either the quality of the internal audit or any external pressures. Managers are careful not to artificially inflate company profits in order to keep institutional investors happy, as they own a disproportionately large share of the company's stock. This means that the stability of financial statements improves as institutional and managerial ownership grows.

Keywords: Financial Statements, Integrity, Corporate Governance, Institutional Ownership, Managerial Ownership, Audit Committees, Independent Commissioners

Authors' individual contribution: Conceptualization — M.F.; Methodology — A.W., G.S., and L.; Investigation — M. and A.I.R.; Resources — A.W. and G.S.; Writing — Original Draft — M.; Writing — Review & Editing — M. and A.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D21, H32, L2

Received: 17.06.2022
Accepted: 11.07.2023
Published online: 13.07.2023

How to cite this paper: Meiryani, Fahlevi, M., Robbani, A. I., Winoto, A., Salim, G., Purnomo, A., & Lusianah. (2023). Factors affecting the integrity of financial statements. Corporate Governance and Organizational Behavior Review, 7(3), 211–227. https://doi.org/10.22495/cgobrv7i3p17

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Organizational storytelling is a way to share information, guide decision-making, and affect how well a business does. Employee attitudes are molded through storytelling, which also has an empowering effect on employees. This is particularly true in times of change and transformation (Wilson, 2019). Storytelling is grounded in constructivist narrative learning theory (Clark & Rossiter, 2008). The purpose of this study is to explore the use of storytelling by a leading company in the telecommunications sector in the Middle East. A qualitative methodology was adopted, using interviews as a research tool to provide an in-depth narrative of individuals' experiences of storytelling during a time of organizational transformation. Twenty employees participated in this study, across managerial and non-managerial roles. The main conclusion is that storytelling is overall perceived positively by company employees who adopt this tool. In times of crises and transformation, this tool contributes to change, a collective culture, communication, unity, employee well-being, and productivity.

Keywords: Organizational Storytelling, Qualitative Research, Change Management, Narrative Learning Theory

Authors' individual contribution: Conceptualization — N.K.; Methodology — R.F.; Validation — F.W.; Formal Analysis — P.B.; Writing — Original Draft — N.K. and R.F.; Writing — Review & Editing — P.B. and F.W.; Visualization — F.W.; Supervision — N.K.; Project Administration — R.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, L8, L1

Received: 20.12.2022
Accepted: 07.07.2023
Published online: 11.07.2023

How to cite this paper: Khdour, N., Fenech, R., Baguant, P., & Wahid, F. (2023). The power of organizational storytelling: The story of a company in times of transformation. Corporate Governance and Organizational Behavior Review, 7(3), 204–210. https://doi.org/10.22495/cgobrv7i3p16

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study explores the relationship between audits, concentrated managerial power, and firm performance in the Chinese manufacturing industry. Analyzing 1,264 publicly listed manufacturing firms over the five-year period (2017–2021), this study provides evidence that heavily concentrated management control hurts firm performance. The finding that heavily concentrated management control hurts firm performance is consistent with existing research on emerging markets (Debnath et al., 2021). Furthermore, consistent with existing research on audits protecting shareholder interest (Beneish, 1999) and improving firm earnings (Baxter & Cotter, 2009), the results of this study demonstrate that audits have the potential to operate as a risk oversight mechanism, reducing the likelihood of concentrated management control and therefore improving firm performance overall. This role of audits in corporate governance may be especially important in China, where the protection of minority shareholder interests may be more crucial (Chen et al., 2013), and in fact, the current study shows that audits mitigate the negative effects of concentrated management control on firm performance. However, the current research also demonstrates that the effects of audits on firm performance depend critically on how audits are identified. While longer-term, more stable auditing relationships decrease the likelihood of concentrated management power and mitigate the negative impact of concentrated power on firm performance, higher auditing fees, on the contrary, are associated with more concentrated management power, exacerbating the damage concentrated power does to firm performance. The empirical results are robust when replicated using propensity score matching (PSM) and entropy balancing techniques. Overall, the results demonstrate the effectiveness of audits as a tool in corporate governance but suggest the existence of conflicts of interest in fee-based auditing, which exacerbate agency costs.

Keywords: Audit, Risk Management, Agency Problem, Conflict of Interests, Management Power

Authors' individual contribution: Conceptualization — D.S. and H.M.; Methodology — D.S. and H.M.; Resources — D.S. and H.M.; Writing — Original Draft — D.S. and H.M.; Writing — Review & Editing — D.S. and H.M.; Visualization — D.S. and H.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G32, G40, M12, M21, M42

Received: 10.10.2022
Accepted: 30.06.2023
Published online: 05.07.2023

How to cite this paper: Sheng, D., & Montgomery, H. (2023). Do audits serve as an external risk oversight tool to boost firm performance? Corporate Governance and Organizational Behavior Review, 7(3), 188–203. https://doi.org/10.22495/cgobrv7i3p15

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study explored how internal auditors responded to environmental auditing practices (EAP). The study used interpretative research focused on multiple case studies: two Malaysian Local Governments (MLG) with single-case design and environmental auditing. This study utilized 25 interview sessions comprising the internal auditors, executives from audited departments and the Councillor of the Malaysian Local Governments. This study used the framework from Mantere (2008) and Taminiau and Heusinkveld (2017) as guidance during thematic analysis using Atlasti software to conclude. This study concluded that the internal auditors perform six enabler conditions in EAP. This study showed no evidence that the internal auditors performed narration and inclusion during the EAP. The prominent enabler condition was constructing trust by the internal auditors. This study indicated one new enabler condition, selective reporting from the findings. The new enabler helped the internal auditors to expand their role from checkers to problem solvers in EAP.

Keywords: Internal Audit, Environmental Accounting, Public Audit

Authors' individual contribution: Conceptualization — M.M.J., N.H.Z.A., and N.M.A; Methodology — M.M.J., N.H.Z.A., and N.M.A; Data Curation — M.M.J., N.H.Z.A., and N.M.A; Writing — Original Draft — M.M.J., N.H.Z.A., and N.M.A; Writing — Review & Editing — M.M.J., N.H.Z.A., and N.M.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M42, Q56

Received: 04.08.2022
Accepted: 26.06.2023
Published online: 28.06.2023

How to cite this paper: Mohd Jamil, M. M., Zainal Abidin, N. H. Z., & Mohd Alwi, N. M. (2023). The internal auditors' responses in environmental auditing practices: Problem solvers vs checker. Corporate Governance and Organizational Behavior Review, 7(3), 177–187. https://doi.org/10.22495/cgobrv7i3p14

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The upheaval caused by the spread of COVID-19 made a devastating effect on businesses, especially small businesses. A huge number of small businesses cannot survive within 3 months of an economic shutdown (Ligouri & Pittz, 2020); however, some survive and maintain their business operation. Therefore, the purpose of this study is to explore the success factors in sustaining the business operation. Specifically, the intention is to investigate what are the important factors leading small and medium-sized enterprises (SMEs) in Malaysia to be able to survive and drive their business operation during the COVID-19 pandemic. A qualitative approach was employed, data was collected through interviews, and seven business owners were identified through the purposive sampling method (Tongco, 2007). The findings revealed that most SMEs are disrupted by the pandemic and struggling for funding to survive in the business. In addition, entrepreneurs adapted to the new business model and utilized the digital platform manage to survive. Moreover, continuous financial support from the government, although meant for the short term is beneficial. The findings are vital as they can be used in assisting the government to create more effective and relevant programs to assist homegrown SMEs.

Keywords: Government Assistance, SME, COVID-19, Business Operation, Entrepreneurs, Digital Platform

Authors' individual contribution: Conceptualization — N.P.N.A.N.A. and N.A.H.; Methodology — N.A.H., Z.A.R., and S.N.; Writing — N.P.N.A.N.A., Z.A.R., S.N., and N.A.S.; Resources — N.P.N.A.N.A., Z.A.R., S.N., and N.A.S.; Supervision — N.A.H. and Z.A.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M21, G34

Received: 04.08.2022
Accepted: 23.06.2023
Published online: 26.06.2023

How to cite this paper: Noor Azmi, N. P. N. A., Hamid, N. A., Rasit, Z. A., Norizan, S., & Shafai, N. A. (2023). Investigating the success factors of small and medium-sized enterprises in sustaining business operations during COVID-19. Corporate Governance and Organizational Behavior Review, 7(3), 165–176. https://doi.org/10.22495/cgobrv7i3p13