Journal of Risk and Financial Management

2025

Jump to: 2024, 2023, 2022, 2021

18 pages, 686 KB

Open AccessArticle

The Effect of Successful Value-Based Management on Decision-Making Effectiveness, Business Value Creation, Corporate Competency, and Corporate Sustainability Based on the Perceptions of Accounting Directors of Thai Listed Companies

by Nattawut Tontiset

J. Risk Financial Manag. 2025, 18(6), 294; https://doi.org/10.3390/jrfm18060294 - 28 May 2025

Viewed by 1296

Abstract

The aim of this study is to examine the impact of VBM success on the corporate sustainability of Thai listed firms. The effects of successful VBM on decision-making effectiveness, business value creation, and corporate competency are also investigated. Both contingency theory and the [...] Read more.

The aim of this study is to examine the impact of VBM success on the corporate sustainability of Thai listed firms. The effects of successful VBM on decision-making effectiveness, business value creation, and corporate competency are also investigated. Both contingency theory and the relevant literature are utilized to aid in effectively comprehending the consequences of successful VBM. Thai listed companies were selected as the sample for this study, and data collected from 101 accounting directors through questionnaires were used as the research instrument. PLS-SEM was employed to test the hypothesized relationships. The results found that successful VBM has a considerable impact on company sustainability, owing primarily to indirect effects through mediating variables, such as business value generation and corporate competence, rather than direct effects, which are not significant. As a result, it is possible to conclude that good VBM implementation will increase business sustainability through processes or mediating variables, rather than directly affecting it. In addition, the success of VBM significantly improves the business value creation and corporate competency. Lastly, effective decision-making, the creation of company value, and corporate competency all significantly enhance corporate sustainability. Contributions from management and theoretical perspectives are openly provided. Recommendations, conclusions, and future study directions are also highlighted and discussed herein. Full article

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2024

Jump to: 2025, 2023, 2022, 2021

33 pages, 3351 KB

Open AccessArticle

Risk-Averse, Integrated Contract, and Open Market Procurement with Quantity Adjustment Costs

by Santosh Mahapatra, Santosh Kar and Shlomo Levental

J. Risk Financial Manag. 2024, 17(12), 551; https://doi.org/10.3390/jrfm17120551 - 9 Dec 2024

Viewed by 1175

Abstract

This paper examines the issue cost-effective procurement of a commodity product when its spot (open) market prices are stochastic, contract prices are previously determined, and there are costs associated with adjusting (i.e., switching) the procurement quantities from an alternative. Spot (open) market and [...] Read more.

This paper examines the issue cost-effective procurement of a commodity product when its spot (open) market prices are stochastic, contract prices are previously determined, and there are costs associated with adjusting (i.e., switching) the procurement quantities from an alternative. Spot (open) market and contract as sole modes of procurement could present risks of high magnitude and uncertainty of expenses for the buyer. To address these risks, a risk-averse buyer may consider simultaneous use of both alternatives with adjustment of the purchase quantities from both the alternatives over time. Scenarios when the switching costs depend on the relative prices of the two alternatives are considered. The problem being analytically intractable, a mixed method decision model combining analytical and computational techniques to analyze the problem is proposed. The model helps identify expected optimal contract and spot market procurement quantities with respect to unknown spot prices and known contract prices over the planned procurement horizon when procurement quantity adjustment costs are influenced by the spends. The analysis reveals that it is cost-effective to continue purchasing with an existing pattern of procurement from the two alternatives until the contract to spot market price ratio reaches a threshold level and then to change the proportion of quantity purchased from the two alternatives. Using numerical analysis, we illustrate the theoretical and managerial significance of this stickiness to continue with an existing pattern until an adjustment. Full article

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21 pages, 642 KB

Open AccessArticle

Human Trafficking and Gender Inequality: How Businesses Can Lower Risks and Costs

by Donald L. Ariail, Katherine Taken Smith and Lawrence Murphy Smith

J. Risk Financial Manag. 2024, 17(9), 418; https://doi.org/10.3390/jrfm17090418 - 21 Sep 2024

Cited by 2 | Viewed by 3648

Abstract

Human trafficking continues to be a profitable multi-billion dollar business. People are either callous toward human rights or they are unaware of the crime occurring. Many businesses may unknowingly facilitate human trafficking by providing services, such as transportation, hotels, or haircuts, or purchasing [...] Read more.

Human trafficking continues to be a profitable multi-billion dollar business. People are either callous toward human rights or they are unaware of the crime occurring. Many businesses may unknowingly facilitate human trafficking by providing services, such as transportation, hotels, or haircuts, or purchasing products from unfamiliar sources that secretly use forced labor. To be socially responsible, a business must establish effective enterprise governance policies that help prevent and detect trafficking. A business can incur legal fines, damage to its reputation, incur lost business, and be subject to litigation, all as a result of human trafficking. Worldwide, estimates are that 50 million people are being trafficked. Human trafficking is especially harmful to females, both adult women and girls, who comprise about 70 percent of all trafficking victims. Gender theory helps explain this disproportionate impact on women. This study provides an overview of human trafficking, an empirical analysis of the relationship of gender inequality to trafficking, and specific steps that a business can take to help prevent this crime, protect its reputation, and avoid fines and lost business. Full article

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14 pages, 756 KB

Open AccessArticle

Firm Performance of Saudi Manufacturers: Does the Management of Cash Conversion Cycle Components Matter?

by Amel Kouaib and Mohammed Ibrahim Bu Haya

J. Risk Financial Manag. 2024, 17(1), 16; https://doi.org/10.3390/jrfm17010016 - 1 Jan 2024

Cited by 4 | Viewed by 5580

Abstract

The purpose of this study is to examine the liquidity management of a corporation. It aims to examine how managing cash conversion cycle components affects corporate performance. A dataset of 88 firms listed on the Saudi Stock Exchange between 2018 and 2022 was [...] Read more.

The purpose of this study is to examine the liquidity management of a corporation. It aims to examine how managing cash conversion cycle components affects corporate performance. A dataset of 88 firms listed on the Saudi Stock Exchange between 2018 and 2022 was analyzed using both pooled OLS and fixed effects regression models. A sample of 84 firms listed on the Saudi Stock Exchange for the period from 2018 to 2022 was used. Both the pooled OLS and the fixed effects regression models were used. This study’s key findings are: (1) there is a strong negative correlation between the time it takes to convert inventory into sales (inventory conversion period) and firm performance. If inventory does not sell quickly, profit tends to be lower. (2) Firm performance demonstrates a strong inverse relationship with the duration it takes for companies to collect cash from customers, commonly known as the accounts receivable collection period. A short accounts receivable collection period may become collectible and increase a business’s profitability and performance. (3) There is a highly significant negative link between the time taken to pay creditors (days payable outstanding) and firm performance. A short average payment period, indicated by a low payment period, suggests that the firm is promptly settling its bills and obligations without any delays. Full article

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2023

Jump to: 2025, 2024, 2022, 2021

20 pages, 2632 KB

Open AccessArticle

Two Types of Payments of Tax on Profit: Advanced Payments and at the End of Periods: Consideration within BFO Theory with Variable Profit

by Peter Brusov, Tatiana Filatova and Veniamin Kulik

J. Risk Financial Manag. 2023, 16(3), 208; https://doi.org/10.3390/jrfm16030208 - 22 Mar 2023

Cited by 3 | Viewed by 2116

Abstract

Two modifications of a modern theory of capital structure—the Brusov–Filatova–Orekhova (BFO) theory—with variable income are considered: (1) with the income tax payments at the end of periods and (2) with advance income tax payments. BFO formulas for the WACC, and for company capitalization, [...] Read more.

Two modifications of a modern theory of capital structure—the Brusov–Filatova–Orekhova (BFO) theory—with variable income are considered: (1) with the income tax payments at the end of periods and (2) with advance income tax payments. BFO formulas for the WACC, and for company capitalization, V, were derived for these two cases. Using the obtained formulas, the dependence of the weighted average cost of capital, WACC; the discount rate; WACC–g (here, g, is the growth rate); company value, V; and the equity cost, ke, on the leverage level, L, at different values of g, at different values of the debt capital cost, kd, and at different values of company age, n, were studied. Comparing the results for cases (1) and (2) shows that case (2) is always preferable for both the company and the regulator. Recommendations have been developed for both parties to expand the practice of advance income tax payments. The managerial implications are as follows. Companies may choose to pay income tax either in advance or at the end of the reporting period in accordance with current results and tax laws. The developed methodology makes it possible to study companies with growing profits and companies with falling profits, which is very important in practice. It also allows the study of companies for which profits could rise and fall in different periods. Full article

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11 pages, 569 KB

Open AccessArticle

Predicting Explicit and Valuing Tacit Synergies of High-Tech Based Transactions: Amazon.com’s Acquisition of Dubai-Based Souq.com

by Andrejs Čirjevskis

J. Risk Financial Manag. 2023, 16(2), 123; https://doi.org/10.3390/jrfm16020123 - 15 Feb 2023

Cited by 2 | Viewed by 3339

Abstract

Although the interdependence between the core competencies of the collaborating partners and synergy as an important consideration when companies decide to go for a merger is theoretically understood and evident, further empirical research is needed to integrate two concepts into a coherent empirical [...] Read more.

Although the interdependence between the core competencies of the collaborating partners and synergy as an important consideration when companies decide to go for a merger is theoretically understood and evident, further empirical research is needed to integrate two concepts into a coherent empirical construct. The paper aims to develop an empirical framework useful for scholars and practitioners to incorporate real options theory into resource-based views (RBV) to measure collaborative synergies of M&As. Having done the empirical research on the case study of the Souq.com acquisition by Amazon.com as one of “the biggest-ever technology M&A transactions in the Arabic world”, the paper provides a conceptual construct of research that encompasses not only Amazon.com and Souq.com but can be useful to other companies pursuing strategic growth by M&As. Full article

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17 pages, 522 KB

Open AccessArticle

Digital Technologies for Firms’ Competitive Advantage and Improved Supply Chain Performance

by M M Hussain Shahadat, Abu Hena Mohammed Yeaseen Chowdhury, Robert Jeyakumar Nathan and Maria Fekete-Farkas

J. Risk Financial Manag. 2023, 16(2), 94; https://doi.org/10.3390/jrfm16020094 - 5 Feb 2023

Cited by 28 | Viewed by 11216

Abstract

Supply chain operation is more competitive in a dynamic business environment. Developing supply chain capability is, hence, important for gaining a competitive advantage and overall improved supply chain performance. The purpose of this study is to explore the potential of digital technologies to [...] Read more.

Supply chain operation is more competitive in a dynamic business environment. Developing supply chain capability is, hence, important for gaining a competitive advantage and overall improved supply chain performance. The purpose of this study is to explore the potential of digital technologies to enhance supply chain performance and for firms to gain competitive advantage through improved supply chain capabilities. This study, through a survey questionnaire, gathered a total of 150 sample data from supply chain executives and managers in the ready-made garments (RMG) industry in Bangladesh. Findings of the study demonstrate that the digital supply chain is a significant contributor to improving the supply chain capabilities of RMG firms, and it subsequently leads to competitive advantage with a direct positive effect on firms’ supply chain performance. The findings also indicate that digital technology has a direct effect on supply chain capability and supply chain performance in RMG firms. Based on these empirical findings, the study draws conclusion that digital technology integration in the supply chain would have a positive contribution to supply chain agility and flexibility, which would enable firms to effectively engage supply chain partners in dealing with unexpected situations in business operations. This study contributes to the current literature on digital supply chain capabilities, and it also provides insights for supply chain managers, policymakers, and practitioners in the fields of supply chains, logistics, and business performance. Full article

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15 pages, 720 KB

Open AccessArticle

The Influences of Procedural Justice on Turnover Intention and Social Loafing Behavior among Hotel Employees

by Hussein N. E. Edrees, Abu Elnasr E. Sobaih, Hassane Gharbi and Ahmed E. Abu Elnasr

J. Risk Financial Manag. 2023, 16(2), 75; https://doi.org/10.3390/jrfm16020075 - 26 Jan 2023

Cited by 9 | Viewed by 4594

Abstract

This study examines the influences of procedural justice on the turnover intention and social loafing behavior among employees in the hotel industry. Despite a growing body of literature regarding the relationship between organizational justice, turnover intention and social loafing, there is limited published [...] Read more.

This study examines the influences of procedural justice on the turnover intention and social loafing behavior among employees in the hotel industry. Despite a growing body of literature regarding the relationship between organizational justice, turnover intention and social loafing, there is limited published research on the influence of procedural justice on social loafing behavior among hotel employees with the mediating effect of turnover intention. For this purpose, a questionnaire was self-administered to employees working at different hotels in Saudi Arabia. AMOS software was employed for structural equation modeling (SEM) data analysis. The results show that procedural justice significantly and negatively influences social loafing behavior. Furthermore, procedural justice significantly and negatively influences turnover intention, whereas the turnover intention significantly and positively influences social loafing behavior. Turnover intention partially mediates the link between procedural justice and social loafing. The study outcomes confirm that procedural justice is important for any organization; nevertheless, it is not enough to decrease social loafing behavior among hotel employees, especially when turnover intention exists. The results have implications for hotel practitioners and scholars in relation to reducing turnover intentions and social loafing behavior among employees. Full article

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25 pages, 5673 KB

Open AccessArticle

A Study about Who Is Interested in Stock Splitting and Why: Considering Companies, Shareholders, or Managers

by Jiaquan Chen and Marcel Ausloos

J. Risk Financial Manag. 2023, 16(2), 68; https://doi.org/10.3390/jrfm16020068 - 24 Jan 2023

Cited by 2 | Viewed by 6128

Abstract

There are many misconceptions around stock prices and stock splits, and the behavior of shareholders, investors, and managers based on such information, due to a number of confounding factors. This paper tests a few hypotheses using a selected database, concerning the question “Is [...] Read more.

There are many misconceptions around stock prices and stock splits, and the behavior of shareholders, investors, and managers based on such information, due to a number of confounding factors. This paper tests a few hypotheses using a selected database, concerning the question “Is the stock split attractive for companies?”—in another words, “Why do companies split their stock?”, “Why do managers split their stock?” (sometimes for no benefit), and “Why do shareholders agree with such decisions?”. We contribute to the existing knowledge through a discussion of a random code selection of nine events in recent (selectively chosen) years, observing the role of information asymmetries, and the returns and traded volumes before and after the event. Therefore, calculating the beta for each sample, it is found that stock splits (i) affect the market and slightly enhance the trading volume in the short term, (ii) increase the shareholder base for their firm, and (iii) have a positive effect on the liquidity of the market. We concur that stock-splitting announcements can reduce the level of information asymmetries. Investors readjust their beliefs in the firm, although most of the firms are mispriced in the stock split year. Full article

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21 pages, 806 KB

Open AccessArticle

Factors Influencing Consumer Behavior towards Online Shopping in Saudi Arabia Amid COVID-19: Implications for E-Businesses Post Pandemic

by Sarah S. Al Hamli and Abu Elnasr E. Sobaih

J. Risk Financial Manag. 2023, 16(1), 36; https://doi.org/10.3390/jrfm16010036 - 5 Jan 2023

Cited by 32 | Viewed by 76858

Abstract

The coronavirus disease 2019 (COVID-19) has significantly reshaped consumer behaviors in Saudi Arabia, as in most other countries worldwide, and it has played a critical role in rising commercial online activities. The purpose of this study is to test the factors affecting online [...] Read more.

The coronavirus disease 2019 (COVID-19) has significantly reshaped consumer behaviors in Saudi Arabia, as in most other countries worldwide, and it has played a critical role in rising commercial online activities. The purpose of this study is to test the factors affecting online shopping amid COVID-19 in Saudi Arabia. The five main factors identified from the literature review towards online shopping namely, product variety, convenience, payment method, trust, and psychological factors were analyzed and examined in the Saudi context. The research collected data online through a pre-tested instrument, which was directed to online Saudi consumers via different electronic tools, e.g., email and social media platforms. The results of a statistical analysis showed that only three factors have a direct significant impact on online shopping amid the COVID-19 pandemic. These factors were product variety, payment method, and psychological factors. Convenient and trust factors failed to have a significant impact on consumers’ decisions to shop online amid COVID-19. Both factors were less important for consumers, since shopping online amid COVID-19 has become most common among people. The result will assist e-commerce businesses to better meet consumer demands by adjusting their marketing strategies, especially in times of crisis. Full article

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16 pages, 961 KB

Open AccessArticle

Paradoxes and Tensions in Interorganizational Relationships: A Systematic Literature Review

by Marcos Vinícius Bitencourt Fortes, Lara Agostini, Douglas Wegner and Anna Nosella

J. Risk Financial Manag. 2023, 16(1), 35; https://doi.org/10.3390/jrfm16010035 - 5 Jan 2023

Cited by 11 | Viewed by 5360

Abstract

This paper examines the literature on paradoxes and tensions in interorganizational relationships (IORs) and identifies how such tensions are managed in interorganizational settings. In a systematic literature review, we analyzed 95 papers published between 1997 and 2021 on the subject of paradoxes in [...] Read more.

This paper examines the literature on paradoxes and tensions in interorganizational relationships (IORs) and identifies how such tensions are managed in interorganizational settings. In a systematic literature review, we analyzed 95 papers published between 1997 and 2021 on the subject of paradoxes in IORs. The sample showed a variety of paradoxes occurring in different interorganizational contexts, such as knowledge sharing and protection, short- and long-term orientation, and exploration and exploitation. The diversity of such paradoxes has led to crescent interest in cooperation. Our main results show that contextual factors and management practices influence the balance between paradoxes. Although the particular context of each IOR may be unique in terms of balancing paradoxical elements, we identified a set of “pre-tension practices” and “post-tension practices” which may help avoid the emergence of tensions or reduce their adverse effects. The findings of our systematic literature review have also enabled us to propose future research avenues concerning managing tensions in IORs, for instance, the link between paradoxes and IOR performance. Full article

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20 pages, 1310 KB

Open AccessArticle

Analysis of 105 IT Project Risks

by Valentin Nikolaenko and Anatoly Sidorov

J. Risk Financial Manag. 2023, 16(1), 33; https://doi.org/10.3390/jrfm16010033 - 5 Jan 2023

Cited by 9 | Viewed by 5217

Abstract

The article is aimed at increasing the probability of successful IT project completion by identifying the sources of 105 universal risks as well as establishing cause-and-effect relationships between these risks. The article presents the results of an analysis of 105 risks relevant to [...] Read more.

The article is aimed at increasing the probability of successful IT project completion by identifying the sources of 105 universal risks as well as establishing cause-and-effect relationships between these risks. The article presents the results of an analysis of 105 risks relevant to IT projects; five of them are commercial risks, 45 are compliance risks and 55 are project risks. Risk analysis was carried out using the 5Why, SWIFT and Harrington coefficients. Based on the results of the analysis, the root causes initiating the onset of risks were identified, such as the user, customer, project manager, project team, subcontractor and competitor. Moreover, it was found that the share of the users in the total number of risk sources is 2%, 15% for the customer, 43% for the project manager, 36% for the project team, 2% for the subcontractor and 2% for the competitor. The article also shows models of cause-and-effect relationships of compliance and project risks, presents the results of assessing the risks occurrence probability and their possible impact in cases of materialization, and establishes the most likely and dangerous scenarios in IT projects. The results obtained allowed the development of a criterion to assess the management maturity of a contractor (executor, supplier) planning to develop an computer program as part of an IT project. Full article

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2022

Jump to: 2025, 2024, 2023, 2021

18 pages, 1210 KB

Open AccessArticle

Measuring Collaborative Synergies with Advanced Real Options: MNEs’ Sequential Acquisitions of International Ventures

by Andrejs Čirjevskis

J. Risk Financial Manag. 2023, 16(1), 11; https://doi.org/10.3390/jrfm16010011 - 26 Dec 2022

Cited by 4 | Viewed by 2486

Abstract

This paper aims to extend the real options theory valuing strategic collaborative synergies by advanced real options with changing volatility and contributes to the international business literature on MNEs’ sequential acquisitions of international ventures. The proposition is that collaborative synergies can be valued [...] Read more.

This paper aims to extend the real options theory valuing strategic collaborative synergies by advanced real options with changing volatility and contributes to the international business literature on MNEs’ sequential acquisitions of international ventures. The proposition is that collaborative synergies can be valued with advanced real options with changing volatility when an MNE is pursuing the sequential acquisition of an international venture and the MNE’s stock volatility is changing at the time of deciding on a full takeover. The paper discusses how recombining and non-recombining lattices with constant and changing volatilities can be employed to value the collaborative synergies of sequential international acquisitions. The theoretical proposition has been justified with the explanatory case study: Natura Cosméticos S.A.’s (Brazil) sequential acquisition of the Aesop brand (Australia). In conclusion, the paper discusses its findings, contributions, limitations, and future work. Full article

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17 pages, 896 KB

Open AccessArticle

The Impact of Owner-Managers’ Personality Traits on Their Small Hospitality Enterprise Performance in Saudi Arabia

by Abu Elnasr E. Sobaih, Amer A. Al-qutaish, Hassane Gharbi and Ahmed E. Abu Elnasr

J. Risk Financial Manag. 2022, 15(12), 585; https://doi.org/10.3390/jrfm15120585 - 7 Dec 2022

Cited by 8 | Viewed by 4572

Abstract

Governments in many countries have paid close attention to small enterprises because of their social and economic impacts. The role of the owner-manager in advancing the performance of their small business cannot be underestimated. The current study tests the influence of an owner-manager’s [...] Read more.

Governments in many countries have paid close attention to small enterprises because of their social and economic impacts. The role of the owner-manager in advancing the performance of their small business cannot be underestimated. The current study tests the influence of an owner-manager’s big five personality traits on the performance of their small enterprises. For this purpose, a pre-tested questionnaire was directed to owner-managers of small hospitality enterprises in Saudi Arabia. The results of SEM analysis, with AMOS, showed that high levels of both openness to experience and agreeableness of owner-managers have a significant positive impact on the performance of their small enterprises. However, a high level of neuroticism has a significant negative impact on the performance of their small enterprises. The results interestingly showed that high levels of both conscientiousness and extraversion among owner-managers have positive, but insignificant, impacts on the performance of their small enterprises. These two traits had a minor impact on the performance of small hospitality enterprises. Hence, managers of small hospitality enterprises in Saudi Arabia are required to have high levels of openness to experiences and agreeableness and low level of neuroticism to achieve significant organizational performance. Full article

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14 pages, 686 KB

Open AccessArticle

The Impact of Women’s Empowerment on Their Entrepreneurship Intention in the Saudi Food Industry

by Osama H. M. Hassan, Abu Elnasr E. Sobaih and Ibrahim A. Elshaer

J. Risk Financial Manag. 2022, 15(12), 571; https://doi.org/10.3390/jrfm15120571 - 1 Dec 2022

Cited by 13 | Viewed by 5817

Abstract

This study takes a novel attempt to examine the impact of women’s empowerment in the Kingdom of Saudi Arabia, which has been prioritized recently by the country’s leadership as a part of the Saudi Vision 2030, on women’s intention towards entrepreneurship. A pre-examined [...] Read more.

This study takes a novel attempt to examine the impact of women’s empowerment in the Kingdom of Saudi Arabia, which has been prioritized recently by the country’s leadership as a part of the Saudi Vision 2030, on women’s intention towards entrepreneurship. A pre-examined survey was directed to the Saudi women working in KSA’s food and beverage businesses. The structural equation modeling results showed a significant positive impact of psychosocial, economic, and political empowerment on Saudi women’s intention to engage in entrepreneurship activities. However, the results confirmed a significant negative influence of social empowerment on entrepreneurship intentions. This is because Saudi women did not perceive the proper social empowerment by their community, which negatively influenced their entrepreneurship intention. Hence, interventions by decision-makers are crucial to adopt a media campaign regarding gender equality and the vital contribution of women in the labor market and entrepreneurship. Other implications were discussed for scholars and decision-makers. Full article

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16 pages, 1383 KB

Open AccessArticle

Market Orientation and Hotel Industry: Literature Review and Implications for Periods of Market Turmoil

by Carlos Sampaio and Mónica Régio

J. Risk Financial Manag. 2022, 15(11), 497; https://doi.org/10.3390/jrfm15110497 - 26 Oct 2022

Cited by 4 | Viewed by 7061

Abstract

This study seeks to evaluate the market orientation literature within the scope of the hotel industry. It uses bibliometric methods, particularly a co-citation analysis combined with a literature review. Data were obtained from the Web of Science database and 136 unique documents were [...] Read more.

This study seeks to evaluate the market orientation literature within the scope of the hotel industry. It uses bibliometric methods, particularly a co-citation analysis combined with a literature review. Data were obtained from the Web of Science database and 136 unique documents were used in the analysis. The results show that market orientation literature using data from the hotel industry has been focused on assessing the relationship with hotel business performance and involves three background subjects: methodological aspects regarding the statistical analysis, market orientation theoretical framework and measurement scales, and innovation-related issues, particularly concerning the provided service, including incremental and radical innovations, which are critical over periods of market turmoil. A proposal for future research is presented. Full article

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14 pages, 308 KB

Open AccessArticle

Idiosyncratic Risk Volatility: Stock Price Informativeness or Price Error?

by Yuni Pristiwati Noer Widianingsih and Doddy Setiawan

J. Risk Financial Manag. 2022, 15(10), 479; https://doi.org/10.3390/jrfm15100479 - 20 Oct 2022

Cited by 1 | Viewed by 3687

Abstract

Research on idiosyncratic volatility in developing countries, particularly Indonesia, is scant. This study is the first to explain idiosyncratic concepts through an information environment approach and an examination of information asymmetry. This study aims to analyze the phenomenon of idiosyncratic risk in Indonesia, [...] Read more.

Research on idiosyncratic volatility in developing countries, particularly Indonesia, is scant. This study is the first to explain idiosyncratic concepts through an information environment approach and an examination of information asymmetry. This study aims to analyze the phenomenon of idiosyncratic risk in Indonesia, whether it is related to price informativeness or price error, by considering the information environment. We identified the information environment based on the liquidity levels and stock liquidity risk. Our research revealed the relationship between information asymmetry in the information environment and idiosyncratic volatility by using a sample of 499 companies listed on the Indonesia Stock Exchange during the period 2017–2019. One thousand, two hundred and twenty-nine (firm_year) observation data were obtained. The dependent variable was idiosyncratic volatility, and the independent variable used an information environment consisting of stock liquidity, liquidity risk, and information asymmetry. The findings of this study are expected to contribute to the literature on idiosyncratic volatility by showing how it can predict the development of the information environment, and how the latter is a consequence of information asymmetry. Moreover, this study should also complement views that are related to the concept of idiosyncratic volatility equivalent to price errors; this research has been carried out in previous studies. Full article

19 pages, 912 KB

Open AccessArticle

Would You like to Work More Hours?—An Investigation on South Africa

by Cristina Raluca Gh. Popescu and Esra Karapınar Kocağ

J. Risk Financial Manag. 2022, 15(10), 466; https://doi.org/10.3390/jrfm15100466 - 17 Oct 2022

Viewed by 2960

Abstract

To begin with, Sustainable Development Goals are of tremendous importance in all areas, being seen as vital aims in all domains, which makes them indispensable when it comes to addressing the particularities of the labour market these days. Subsequently, human resources occupy a [...] Read more.

To begin with, Sustainable Development Goals are of tremendous importance in all areas, being seen as vital aims in all domains, which makes them indispensable when it comes to addressing the particularities of the labour market these days. Subsequently, human resources occupy a distinctive and unique position when referring to the implications derived from targeting Sustainable Development Goals, especially in the context represented by the period specific to the COVID-19 pandemic and the international events that followed immediately after that. This study investigates the work motivation of individuals, and whether they would be willing to work more hours if they are paid. Motivation and attitudes towards working more hours might be affected by several factors, and they are important contributors to business performance. Not only business performance is to be affected, but this is also a part of Sustainable Development Goals where labour market conditions and productivity concerns are addressed, along with several other factors. Using the Quarterly Labour Force Survey from 2017 to 2022 that is conducted by Statistics South Africa, this study attempts to shed light on individual preferences for working more hours in the case of South Africa. Considering the dichotomous dependent variable, a binary response model is utilised to explore the determinants of such behaviour. Findings of the probit model reveal that socio-demographic factors such as gender, marital status, education level, and work experience are important indicators to explain this preference. More precisely, being female increases the likelihood of willingness to work more hours if paid by 1.1 percentage points, and being never married increases that probability by 2.7 percentage points. Within education categories, the highest coefficient in magnitude, having tertiary education decreases the probability of willingness to work more hours by 8.2 percentage points. As an important labour market indicator, one more year to commence working increases the probability of willingness to work more hours by 0.4 percentage points. Full article

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23 pages, 621 KB

Open AccessReview

A Taxonomy of Product–Service System Perturbations through a Systematic Literature Review

by Hanfei Wang, Yuya Mitake, Yusuke Tsutsui, Salman Alfarisi and Yoshiki Shimomura

J. Risk Financial Manag. 2022, 15(10), 443; https://doi.org/10.3390/jrfm15100443 - 30 Sep 2022

Cited by 6 | Viewed by 2741

Abstract

Perturbations have a negative influence on the operation of the business system, which may weaken business performance. However, in the field of the product–service system (PSS), perturbation is still a rarely discussed concept. Researchers and managers have a limited understanding of perturbations in [...] Read more.

Perturbations have a negative influence on the operation of the business system, which may weaken business performance. However, in the field of the product–service system (PSS), perturbation is still a rarely discussed concept. Researchers and managers have a limited understanding of perturbations in the context of PSS. This hinders PSS designers and managers to prepare for mitigation due to a lack of knowledge and information. Thus, this paper aims to build a taxonomy of PSS perturbation through a systematic literature review. To achieve this target, the authors have reviewed 171 papers and found 18 effective papers. Twenty-five items are considered effective ones that are directly related to PSS perturbation. The result of the review shows that PSS perturbations could be classified into six categories, namely, behavioral, social, environmental, competence, resource, and organizational perturbations. The proposed terminology and taxonomy appear to be effective, which could enable researchers to understand the scope of PSS perturbations on a conceptual level. This finding is also expected to provide useful knowledge and information for researchers who are interested in vulnerability analysis and the robust design of PSS. Full article

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21 pages, 2482 KB

Open AccessArticle

Social Networks Marketing, Value Co-Creation, and Consumer Purchase Behavior: Combining PLS-SEM and NCA

by Farzin Arbabi, Seyed Mohammad Khansari, Aidin Salamzadeh, Abbas Gholampour, Pejman Ebrahimi and Maria Fekete-Farkas

J. Risk Financial Manag. 2022, 15(10), 440; https://doi.org/10.3390/jrfm15100440 - 28 Sep 2022

Cited by 23 | Viewed by 8512

Abstract

Given the mediating role of value co-creation, this paper tries to demonstrate how social network marketing (SNM) could influence consumer purchase behavior (CPB). The proposed hypotheses are empirically tested in this study using a PLS-SEM and Necessary Condition Analysis (NCA) method combination. The [...] Read more.

Given the mediating role of value co-creation, this paper tries to demonstrate how social network marketing (SNM) could influence consumer purchase behavior (CPB). The proposed hypotheses are empirically tested in this study using a PLS-SEM and Necessary Condition Analysis (NCA) method combination. The novel methodology adopted in this study includes the use of NCA, IPMA matrix, permutation test, CTA, and FIMIX. The assessment of the outer model, the inner model, the NCA matrix, and the IPMA matrix are the four steps that the paper takes. Instagram users with prior experience making purchases online made up the statistical population of the study. Four hundred twenty-seven questionnaires were analyzed by SmartPLS3 software. Based on the findings, SNM positively and significantly influenced economic, enjoyment, and relational values. Furthermore, these three types of values significantly and directly influenced CPB. For CPB, the model accounted for 73.8% of the variance. The model had high predictive power because it outperformed the PLS-SEM benchmark for all of the target construct’s indicators in terms of root mean square error (RMSE). According to the NCA’s findings, SNM, economic, recreational, and relational values are necessary conditions for CPB that are meaningful (d ≥ 0.1) and significant (p < 0.05). Four prerequisites must be met for CPB to reach a 50% level: relational value at no less than 8.3%, enjoyment value at no less than 16.7%, economic value at no less than 33.3%, and SNM at no less than 31.1%. The highest importance score for SNM is shown to be 0.738, which means that if Instagram channels improve their SNM performance by one unit point, their overall SNM will also improve by 0.738. Full article

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12 pages, 280 KB

Open AccessArticle

ERP and Performance of Companies in Romania

by Alin Marius Andrieș and Iulia Ungureanu

J. Risk Financial Manag. 2022, 15(10), 433; https://doi.org/10.3390/jrfm15100433 - 27 Sep 2022

Cited by 2 | Viewed by 5299

Abstract

How does the implementation of ERP solutions influence the financial performance of companies? Using data for 406 of companies from Romania, we assessed the impact of the implementation of ERP solutions on the profitability and productivity of companies. We performed this analysis using [...] Read more.

How does the implementation of ERP solutions influence the financial performance of companies? Using data for 406 of companies from Romania, we assessed the impact of the implementation of ERP solutions on the profitability and productivity of companies. We performed this analysis using companies’ financial data for the period between 1999 and 2000. The analysis of the influence of ERP implementation on the two indicators was carried out both from the perspective of users’ perception and from the perspective of the evolution over time of these financial indicators. Our results revealed a limited impact of the implementation of ERP systems on profitability and productivity, in line with the expectations of managers. Full article

14 pages, 424 KB

Open AccessArticle

Attaining Standardization in Islamic Banking Institutions in Pakistan: Analysis on Ijarah Financing

by Shujaat Saleem, Umair Baig, Ieva Meidute Kavaliauskiene, Mehboob Ul Hassan and Fadillah Mansor

J. Risk Financial Manag. 2022, 15(10), 430; https://doi.org/10.3390/jrfm15100430 - 26 Sep 2022

Cited by 2 | Viewed by 4817

Abstract

This paper aims to explore the practices of Ijarah financing by Islamic banks in Pakistan pertaining to compliance with the AAOIFI Shariah Standard (9) on Ijarah financing. Primary data were gathered from the respondents of the five (5) full-fledged Islamic banks in Pakistan [...] Read more.

This paper aims to explore the practices of Ijarah financing by Islamic banks in Pakistan pertaining to compliance with the AAOIFI Shariah Standard (9) on Ijarah financing. Primary data were gathered from the respondents of the five (5) full-fledged Islamic banks in Pakistan by administering semi-structured face-to-face interviews along with secondary data obtained from the contractual agreements on Ijarah financing. Qualitative content analysis was undertaken by employing NVivo software. The findings reveal discrepancies in the practices of Ijarah financing pertaining to two clauses of the AAOIFI Shariah Standard and emerging major challenges and/or problems facing the Islamic banking industry, including (1) a lack of standardization, (2) an insufficient regulatory and supervisory framework, and (3) a dearth of awareness of the Islamic banking products and/or takaful operations (especially among corporate customers). The study accrues both academic and practical implications. It not only adds value to the existing literature on Islamic finance but also serves as a guide for the Islamic banking industry in Pakistan. The study is useful to harmonize and standardize the practices of Ijarah financing by the contemporary Islamic banks in Pakistan as the Islamic Banking Division (IBD) of the State Bank of Pakistan (SBP) made it compulsory for Islamic banks to adopt AAOIFI Shariah Standard No. (9) on Ijarah financing. Full article

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25 pages, 1663 KB

Open AccessArticle

Direct and Indirect Implications of the COVID-19 Pandemic on Amazon’s Financial Situation

by Zixuan Qin, Abeer Hassan and Mahalaxmi Adhikariparajuli

J. Risk Financial Manag. 2022, 15(9), 414; https://doi.org/10.3390/jrfm15090414 - 19 Sep 2022

Cited by 6 | Viewed by 16709

Abstract

We provide theoretical and empirical insights into the impact of COVID-19 on Amazon’s financial position. A longitudinal case study of Amazon’s financial situation during the 2016–2020 period, and time-series analysis, ratio analysis, and DuPont analysis, are employed as a quantitative methodology to explore [...] Read more.

We provide theoretical and empirical insights into the impact of COVID-19 on Amazon’s financial position. A longitudinal case study of Amazon’s financial situation during the 2016–2020 period, and time-series analysis, ratio analysis, and DuPont analysis, are employed as a quantitative methodology to explore Amazon’s financial situation changes before and after the COVID-19 pandemic. As for the robustness of the in-depth analysis, we compare Amazon’s financial performance and position with Walmart. The result shows that the COVID-19 pandemic did not have a huge negative impact on the companies’ financial performance because of its promotion of their development. However, this study provides an in-depth analysis of the influence of COVID-19 on Amazon’s financial situation, which financial aspects are most affected by COVID-19, which are not, and the company’s response to COVID-19. Therefore, this study sheds light on the accounting literature to demonstrate the impact of COVID-19 on Internet companies’ financial performance and provides some reference values for subsequent academic research. Full article

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12 pages, 431 KB

Open AccessArticle

Human Resource Skill Adjustment in Service Sector: Predicting Dynamic Capability in Post COVID-19 Work Environment

by Nurul Mohammad Zayed, Friday Ogbu Edeh, Saad Darwish, K. M. Anwarul Islam, Halyna Kryshtal, Vitalii Nitsenko and Olena Stanislavyk

J. Risk Financial Manag. 2022, 15(9), 402; https://doi.org/10.3390/jrfm15090402 - 9 Sep 2022

Cited by 52 | Viewed by 7107

Abstract

The havoc caused by the COVID-19 pandemic on hospitality businesses across the world affected the human resource skills of the industry to the extent that managers and industry experts are still finding difficult how best to upgrade the skills of their workforce and [...] Read more.

The havoc caused by the COVID-19 pandemic on hospitality businesses across the world affected the human resource skills of the industry to the extent that managers and industry experts are still finding difficult how best to upgrade the skills of their workforce and enhance their capability to withstand future disruptions. It is based on this problem that this research investigated the effect of human resource skill adjustment on the dynamic capability of hospitality businesses in sub-Saharan Africa post the COVID-19 work environment. The study employed cross-sectional survey design with a total population of two hundred and twenty participants drawn from sixty hospitality businesses in the south-eastern part of Nigeria. Formulated research hypotheses were analysed with linear regression. The results of the research demonstrated that human resource skill adjustment predicted the dynamic capability of hospitality businesses. The study concludes that human resource skill adjustment measured with upskilling and reskilling methodologies predicted the dynamic capability. The implication of the finding is that managers and operators of hospitality businesses should implement human resource skill adjustment in all the functional areas of their management to enable each section or department to attain its goals equally, and enhance the dynamic capability of the industry. Full article

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22 pages, 438 KB

Open AccessArticle

Corporate Governance and CSR Disclosure: International Evidence for the Period 2006–2016

by Zeynab Miniaoui, Faten Chibani and Khaled Hussainey

J. Risk Financial Manag. 2022, 15(9), 398; https://doi.org/10.3390/jrfm15090398 - 7 Sep 2022

Cited by 6 | Viewed by 5463

Abstract

In this paper, the authors examine the impact of corporate governance mechanisms on corporate social responsibility (CSR) disclosure in European and Anglo-Saxon contexts. The study is based on 324 Anglo-Saxon listed corporations and 310 European listed corporations for 11 years from 2006 to [...] Read more.

In this paper, the authors examine the impact of corporate governance mechanisms on corporate social responsibility (CSR) disclosure in European and Anglo-Saxon contexts. The study is based on 324 Anglo-Saxon listed corporations and 310 European listed corporations for 11 years from 2006 to 2016 (6813 year-observations). The regression analysis shows that board gender and board age affect CSR disclosure. This study also finds that CEO duality negatively affects CSR disclosure in both contexts. Finally, the study found that the existence of a CSR committee and CSR experts positively affect CSR disclosure in both contexts. Full article

18 pages, 981 KB

Open AccessArticle

The Determinants of Immigrants’ Skill Composition

by Esra Karapınar Kocağ, Yutong Li and Cristina Raluca Gh. Popescu

J. Risk Financial Manag. 2022, 15(9), 391; https://doi.org/10.3390/jrfm15090391 - 2 Sep 2022

Cited by 1 | Viewed by 2460

Abstract

Movements of labor across the world is an ongoing debate in the literature in terms of its drivers and results in sending and receiving areas. Skill composition of immigrant labor has been discussed by several papers, although they generally focused on visa policies [...] Read more.

Movements of labor across the world is an ongoing debate in the literature in terms of its drivers and results in sending and receiving areas. Skill composition of immigrant labor has been discussed by several papers, although they generally focused on visa policies or firm level productivity. However, this paper focuses on the relationship between immigrants’ educational attainment and government budgeting on research and development (R&D). Panel data analysis is applied for European countries, along with instrumental variable approach as a robustness check. Findings reveal that higher budget allocation for R&D is associated with higher skill level of immigrants within overall immigrant population. This finding is driven by young immigrants whose ages are between 25 and 34 and female immigrants in these countries, suggesting that this relationship varies among sub-groups of immigrants, which would have significant policy implications. Hence, the novel and original approach of the paper resides in the deciding factors of immigrants’ skill composition. Full article

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17 pages, 1310 KB

Open AccessArticle

Analysing Drivers of Knowledge Leakage in Collaborative Agreements: A Magnetic Processing Case Firm

by Samuel Foli and Susanne Durst

J. Risk Financial Manag. 2022, 15(9), 389; https://doi.org/10.3390/jrfm15090389 - 1 Sep 2022

Cited by 2 | Viewed by 3151

Abstract

Due to the embeddedness of organisations in networks, collaborations, and business relationships, knowledge leakage has become a common concern. In this regard, this paper aims to investigate drivers of knowledge leakage in collaborative agreements using an integrated ISM-MICMAC model. Based on insights from [...] Read more.

Due to the embeddedness of organisations in networks, collaborations, and business relationships, knowledge leakage has become a common concern. In this regard, this paper aims to investigate drivers of knowledge leakage in collaborative agreements using an integrated ISM-MICMAC model. Based on insights from employees including the CEO of a magnetic processing firm, we validate the proposed model. The findings of our study reveal nine key drivers that influence knowledge leakage in collaborative agreements. In terms of level of influence, incomplete contract is the most influential driver, followed by sub-contracting activities. Last, the nine drivers are classified into two main clusters: independency cluster—weak dependence power with high driving power—and linkage cluster—strong dependence and driving power. Full article

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11 pages, 276 KB

Open AccessArticle

Breaking Cournot: The Effects of Capacity-Adjusting Technology

by Richard J. Arend

J. Risk Financial Manag. 2022, 15(9), 385; https://doi.org/10.3390/jrfm15090385 - 28 Aug 2022

Viewed by 2131

Abstract

The technological improvements modeled for Cournot competition have primarily focused on production cost reductions and scope effects. We consider a case where the technology improves the ability to affect the production capacity constraints instead. We find that although such technological progress entails public [...] Read more.

The technological improvements modeled for Cournot competition have primarily focused on production cost reductions and scope effects. We consider a case where the technology improves the ability to affect the production capacity constraints instead. We find that although such technological progress entails public benefits in the form of greater consumer surplus and social welfare, it is likely to have limited and even sometimes harmful private effects (e.g., to firm profits). We formally model this technological improvement possibility through the relevant variants of oligopolies and rival technological asymmetries. We describe and discuss the strategic implications for managers and policy-makers considering investing and exploiting such capacity-adjusting technologies. We also flesh out the many core areas for future work to follow up on in our initial unique results. Full article

21 pages, 1117 KB

Open AccessArticle

Earnings Less Risk-Free Interest Charge (ERIC) and Stock Returns—A Value-Based Management Perspective on ERIC’s Relative and Incremental Information Content

by Rainer Lueg and Jon Svennesen Toft

J. Risk Financial Manag. 2022, 15(8), 368; https://doi.org/10.3390/jrfm15080368 - 19 Aug 2022

Cited by 2 | Viewed by 3113

Abstract

This paper investigates the relative and incremental information content of KPMG’s recently developed metric for shareholder value creation: earnings less risk-free interest charge (ERIC). We assess if ERIC has a better ability to predict stock returns than earnings, cash flow from operations [...] Read more.

This paper investigates the relative and incremental information content of KPMG’s recently developed metric for shareholder value creation: earnings less risk-free interest charge (ERIC). We assess if ERIC has a better ability to predict stock returns than earnings, cash flow from operations (CFO), earnings before extraordinary items (EBEI), residual income (RI), or economic value added (EVA). We evaluate data from 214 companies listed on the U.S. Standard & Poor’s 500 Index from 2003 to 2012 (2354 firm-year observations). Similar to previous studies, we confirm that CFO and EBEI have the strongest association with stock returns in the short term, while EVA trails behind all other metrics. In terms of new findings, ERIC is the best predictor of stock returns over a 5-year period, as well as during times of crises (from 2009 to 2010). In this period, ERIC also adds incremental information content beyond that of EBEI. However, the low-short-/mid-term predictive ability of shareholder value metrics (EVA, ERIC) raises concerns regarding their reliable use in future research on shareholder value creation. We consequently propose a research agenda that focuses less on the measurement and more on the management of shareholder value. Full article

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18 pages, 496 KB

Open AccessArticle

How Did Amazon Achieve CSR and Some Sustainable Development Goals (SDGs)—Climate Change, Circular Economy, Water Resources and Employee Rights during COVID-19?

by Wenxuan Yu, Abeer Hassan and Mahalaxmi Adhikariparajuli

J. Risk Financial Manag. 2022, 15(8), 364; https://doi.org/10.3390/jrfm15080364 - 16 Aug 2022

Cited by 15 | Viewed by 62992

Abstract

Stakeholders’ demand for corporate social responsibility (CSR) not only creates pressure on the corporation, but corporations are also themselves aware about leading CSR activities’ reporting and embedding sustainable activities to create value for the short, medium, and long-term. This research investigates the sustainable [...] Read more.

Stakeholders’ demand for corporate social responsibility (CSR) not only creates pressure on the corporation, but corporations are also themselves aware about leading CSR activities’ reporting and embedding sustainable activities to create value for the short, medium, and long-term. This research investigates the sustainable development and corporate social responsibility of Amazon as one of the most influential multinational enterprises in the world. In this regard, this study sheds light on how Amazon has combined its own interests with corporate social responsibility and sustainable development, and how they have responded to a series of challenges brought by economic globalization to corporate social responsibility and sustainable development. The results of this detailed investigation of Amazon from 2018 to 2020 show that Amazon has performed very well in terms of social responsibility and sustainable development. In particular, climate, environment, carbon emissions and other natural measures. However, there are some shortages in terms of human rights, such as insufficient protection and care for employees during the COVID-19 pandemic, and labor union issues. In addition, the study concluded that Amazon has sufficient experience to balance profit and corporate social responsibility. In response to the challenges of globalization, Amazon has also adjusted its sustainable development strategy in a timely manner, which can be used as a reference for other multinational enterprises. Full article

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16 pages, 1459 KB

Open AccessArticle

Do You Feel Safe Here? The Role of Psychological Safety in the Relationship between Transformational Leadership and Turnover Intention Amid COVID-19 Pandemic

by Abu Elnasr E. Sobaih, Hassane Gharbi and Ahmed E. Abu Elnasr

J. Risk Financial Manag. 2022, 15(8), 340; https://doi.org/10.3390/jrfm15080340 - 3 Aug 2022

Cited by 18 | Viewed by 8638

Abstract

Despite their significant role in the performance of hotel industry, hotel workers are suffering from high rates of turnover, due to several reasons, particularly amid the COVID-19 pandemic. The pandemic has had numerous negative consequences on hotel workers, including their intention to leave [...] Read more.

Despite their significant role in the performance of hotel industry, hotel workers are suffering from high rates of turnover, due to several reasons, particularly amid the COVID-19 pandemic. The pandemic has had numerous negative consequences on hotel workers, including their intention to leave the job or/and career. This study is an attempt to investigate the impact of transformational leadership on turnover intention amid COVID-19 and how psychological safety can intermediate this relationship. The study used a quantitative research approach via a pre-test instrument, self-distributed and collected from hotel workers at different regions in the Kingdom of Saudi Arabia (KSA). Valid responses from 1228 workers, analyzed through a structural equation modeling (SEM) of AMOS version 23, showed that transformational leadership has a significant negative impact on turnover intention as hypothesized. Nevertheless, it has a significant positive impact on psychological safety, whereas psychological safety has a significant negative impact on turnover intention. The most important finding of this study was the perfect mediating effect of psychological safety in the link between transformational leadership and workers’ turnover intention. This finding confirms that psychological safety has the ability to change the above-mentioned link. In other words, the presence of psychological safety ensures negative turnover intention, even if transformational leadership practices do not exist. The findings have implications for scholars and practitioners, especially in tourism and hotel context, in relation to the role of psychological safety and transformational leadership in creating a sustainable working environment to maintain a lower turnover intention. Full article

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16 pages, 797 KB

Open AccessArticle

Capital Structure and Its Determinants—A Comparison of European Top-Rated CSR and Other Companies

by Peter Krištofík, Juraj Medzihorský and Hussam Musa

J. Risk Financial Manag. 2022, 15(8), 325; https://doi.org/10.3390/jrfm15080325 - 22 Jul 2022

Cited by 8 | Viewed by 4163

Abstract

Corporate social responsibility (CSR), ethics, and sustainability have become an inseparable part of the discourse of modern business. Applying linear regression and comparison of intervals of beta-coefficients, we focused on the mediating role of CSR in the relations between capital structure and its [...] Read more.

Corporate social responsibility (CSR), ethics, and sustainability have become an inseparable part of the discourse of modern business. Applying linear regression and comparison of intervals of beta-coefficients, we focused on the mediating role of CSR in the relations between capital structure and its determinants. Examining the sample of European large caps, we observed that CSR companies are significantly more leveraged than non-CSR ones. The influence of the corporate income tax rate and depreciation and amortization on leverage does not differ significantly between CSR and non-CSR companies. Moreover, tax shields seem to be insignificant for both CSR and non-CSR companies. However, we should stress that, for depreciation and amortization, the beta coefficient has a different significance in the model of CSR companies, compared to the model of non-CSR companies. Also, the difference between the models regarding the relations of leverage and asset tangibility is worth noting. Non-CSR companies with a higher proportion of fixed assets have lower leverage. This result was not confirmed for CSR companies. The hypothesis that CSR replaces the role of collateral cannot be confirmed. Available cash influences leverage negatively in both models, supporting the pecking-order theory. This result is much stronger for non-CSR companies compared to CSR ones. This study found fewer statistically significant differences between CSR and non-CSR companies regarding capital structure determinants than were expected. Full article

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12 pages, 331 KB

Open AccessArticle

Predicting Innovation Capability through Knowledge Management in the Banking Sector

by Friday Ogbu Edeh, Nurul Mohammad Zayed, Vitalii Nitsenko, Olha Brezhnieva-Yermolenko, Julia Negovska and Maryna Shtan

J. Risk Financial Manag. 2022, 15(7), 312; https://doi.org/10.3390/jrfm15070312 - 17 Jul 2022

Cited by 27 | Viewed by 6303

Abstract

Purpose: The purpose of this study was to investigate the effects of knowledge management on innovation capability in the banking sector. Research methodology: Cross-sectional research design was employed in this study as it supports the use of questionnaire for data collection. Fifteen deposit [...] Read more.

Purpose: The purpose of this study was to investigate the effects of knowledge management on innovation capability in the banking sector. Research methodology: Cross-sectional research design was employed in this study as it supports the use of questionnaire for data collection. Fifteen deposit money banks constitute the accessible population. Questionnaire was used as an instrument for data collection. A sample size of 272 was drawn from the overall population of 920. Overall, 259 staff participated in the study. Demographic characteristics of participants were analysed with frequency distribution while linear regression was used to analyse formulated hypotheses with the aid SPSS. Findings: This study found that knowledge management has significant positive effects on innovation capability. Research limitations: The research limitation is associated with cross-sectional survey and geographical scope. Future studies should employ longitudinal survey that support data collection for a year. Secondly, future studies should be carried out in other countries other than Africa. Practical implications: The implication of the finding is that managers and directors of banks should encourage knowledge management practices in their workplaces as this has proven by this study to improve innovation capability in terms of marketing innovation capability, product innovation capability and process innovation capability. Originality/Value: There is no research that has investigated the effects of knowledge management on innovation capability. Thus, this study provides new insight on promoting innovation capability through knowledge management. Full article

18 pages, 490 KB

Open AccessArticle

A Discourse on Foresight and the Valuation of Explicit and Tacit Synergies in Strategic Collaborations

by Andrejs Čirjevskis

J. Risk Financial Manag. 2022, 15(7), 305; https://doi.org/10.3390/jrfm15070305 - 12 Jul 2022

Cited by 5 | Viewed by 4077

Abstract

One of the most important questions in business partners’ collaboration is whether their strategies create a collaborative synergy and thus add market value. This paper aims to develop a conceptual framework that will be useful for scholars and practitioners in developing foresight for [...] Read more.

One of the most important questions in business partners’ collaboration is whether their strategies create a collaborative synergy and thus add market value. This paper aims to develop a conceptual framework that will be useful for scholars and practitioners in developing foresight for explicit synergies and valuing tacit synergy in strategic collaborative ventures. The paper comprises a novel theoretical and empirical contribution to the foresight that is required for an explicit competence-based synergy in collaborative ventures from a resource-based view. It employs the ARCTIC framework and values a tacit competence-based synergy using simple and compound real options. Moreover, the paper makes several theoretical and empirical contributions to the study of strategic management, international business, and corporate finance disciplines. Finally, the paper discusses research limitations and future work. Full article

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18 pages, 876 KB

Open AccessArticle

A Revised Technology–Organisation–Environment Framework for Brick-and-Mortar Retailers Adopting M-Commerce

by Mateus Vicente Justino, Robertson Khan Tengeh and Michael Twum-Darko

J. Risk Financial Manag. 2022, 15(7), 289; https://doi.org/10.3390/jrfm15070289 - 29 Jun 2022

Cited by 4 | Viewed by 4715

Abstract

This paper argues that brick-and-mortar retail Small and Medium Enterprises (SMEs) can benefit significantly from the capabilities of mobile commerce (m-commerce) to respond to the unpredictable changes in the business environment, accommodate new consumer experiences, boost sales of products/services, and achieve a competitive [...] Read more.

This paper argues that brick-and-mortar retail Small and Medium Enterprises (SMEs) can benefit significantly from the capabilities of mobile commerce (m-commerce) to respond to the unpredictable changes in the business environment, accommodate new consumer experiences, boost sales of products/services, and achieve a competitive advantage. Consequently, this study explored the potential application of the Technology–Organisation–Environment (TOE) framework for m-commerce by brick-and-mortar retail SMEs. The study adopted the positivist paradigm and followed a cross-sectional study design. A structured questionnaire was used to collect data from a sample of 263 retail business personnel. The Analysis of Moment Structures (AMOS) software was used to analyse the data. The findings unveil that all the proposed constructs associated with the organisational context and technological context are critical for the use of m-commerce. The proposed framework provides a fresh set of contextual variables which align with brick-and-mortar retailer operations and mobile commerce practices. It is envisaged that the extended framework may help conventional businesses to understand and identify the requisite factors in the adoption and use of m-commerce and assist business supporters in the process of technological innovation transfer. Full article

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18 pages, 914 KB

Open AccessArticle

Challenges for Corporate Reputation—Online Reputation Management in Times of Global Pandemic

by František Pollák and Peter Markovič

J. Risk Financial Manag. 2022, 15(6), 250; https://doi.org/10.3390/jrfm15060250 - 2 Jun 2022

Cited by 14 | Viewed by 5430

Abstract

The issue of corporate reputation management in the time of accelerated digitization has been a subject of research by academics and practitioners for more than a decade. The aim of this study was to provide an insight into the issue of reputation management [...] Read more.

The issue of corporate reputation management in the time of accelerated digitization has been a subject of research by academics and practitioners for more than a decade. The aim of this study was to provide an insight into the issue of reputation management in the Internet environment in the time of global pandemic. As for the structure of the research, the study mapped two horizons of events, the first one being the onset of the pandemic in the first half of 2020, and the second one the period of cancellation of antipandemic measures after 24 months. The research was localized in the market of Central Europe, specifically in the online market of the Slovak Republic. This market synthesized two important factors, namely the highly developmental nature and at the same time the increased degree of restraint it experienced during the two years of the pandemic. A sophisticated online reputation analysis (sentiment analysis, analysis of reputation determinants, and data synthesis through the TOR indicator) was performed on a significant sample of e-commerce representatives, the results of which provided relevant findings on reputational challenges and reputational threats. Based on the findings, it can be stated that the market has adapted relatively quickly to the changed conditions. The pandemic represented a market opportunity rather than an existential threat for the subjects examined. It also played the role of an imaginary accelerator in the evolutionary transition from offline to online. Full article

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19 pages, 454 KB

Open AccessArticle

Founding Family Ownership and Firm Performance: Some Evidence from the Italian Stock Market

by Pierluigi Pierni, Dennis Marco Montagna and Mario Maggi

J. Risk Financial Manag. 2022, 15(5), 231; https://doi.org/10.3390/jrfm15050231 - 23 May 2022

Cited by 7 | Viewed by 5060

Abstract

This study investigates the relationship between founding family ownership and firm performance in the Italian stock market. Making use of a precise definition of Founding family ownership factor, an empirical analysis on the stock monthly returns has been carried out, from an investor’s [...] Read more.

This study investigates the relationship between founding family ownership and firm performance in the Italian stock market. Making use of a precise definition of Founding family ownership factor, an empirical analysis on the stock monthly returns has been carried out, from an investor’s point of view facing an asset allocation problem. Portfolios built on the basis of the Founding family factor show superior returns with respect to both a benchmark index and a portfolio strategy based on alternative (non-family-owned) firms on the market. Furthermore, there is evidence that an active role of family in the company governance, at least in Italy, may be beneficial for the superior performance of the Founding family portfolio. The results may suggest that the Founding family feature deserves attention in asset allocation. Full article

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17 pages, 358 KB

Open AccessArticle

Does Ownership Structure Moderate the Relationship between Systemic Risk and Corporate Governance? Evidence from Gulf Cooperation Council Countries

by Ilyes Abidi, Mariem Nsaibi and Khaled Hussainey

J. Risk Financial Manag. 2022, 15(5), 216; https://doi.org/10.3390/jrfm15050216 - 12 May 2022

Cited by 5 | Viewed by 3769

Abstract

The objective of this paper is to empirically examine the moderating effect of ownership structure on the relationship between systemic risk and corporate governance. It complements prior research by studying the relationship between the proportion of capital held by state institutions and systemic [...] Read more.

The objective of this paper is to empirically examine the moderating effect of ownership structure on the relationship between systemic risk and corporate governance. It complements prior research by studying the relationship between the proportion of capital held by state institutions and systemic risk. It also examines the internal governance mechanisms that mitigate systemic risk. For this purpose, this research used a dataset consisting of 22 banks from Gulf Cooperation Council (GCC) countries (10 Islamic banks and 12 conventional banks) over the period 2004–2018. We used a three-stage least squares (3SLS) regression to test our research hypotheses. The findings revealed that the structure of the board of directors (BOD) reduced systemic risk in the banking sector. In particular, we provide evidence that board composition and board meetings negatively affect systematic risk. In addition, we provide empirical evidence that the state plays a key role in moderating the relationship between governance mechanisms and systemic risk. As such, our paper provides significant contributions to the governance and corporate finance literature. Full article

22 pages, 954 KB

Open AccessArticle

Deployment of Interpretive Structural Modeling in Barriers to Industry 4.0: A Case of Small and Medium Enterprises

by Pankaj Goel, Raman Kumar, Harish Kumar Banga, Swapandeep Kaur, Rajesh Kumar, Danil Yurievich Pimenov and Khaled Giasin

J. Risk Financial Manag. 2022, 15(4), 171; https://doi.org/10.3390/jrfm15040171 - 7 Apr 2022

Cited by 30 | Viewed by 5628

Abstract

Small and medium enterprises (SMEs) are vital contributors and significant drivers of any manufacturing sector. The Industry 4.0 (I 4.0) revolution has made the global economy highly competitive and automated, requiring Indian SMEs to adapt more quickly. Therefore, this study aimed to identify [...] Read more.

Small and medium enterprises (SMEs) are vital contributors and significant drivers of any manufacturing sector. The Industry 4.0 (I 4.0) revolution has made the global economy highly competitive and automated, requiring Indian SMEs to adapt more quickly. Therefore, this study aimed to identify the barriers to implementing I 4.0, simplifying the complex interrelationship among such barriers with the help of a suitable model, categorizing them as independent and dependent ones, and, ultimately, leveling the same drivers, autonomous linkages, and dependent forces. The present investigation thoroughly examined the existing literature and summarized the list of barriers into fifteen significant barriers to the smooth establishment of Industry 4.0 in India. The identified barriers were analyzed with the help of Interpretive Structural Modeling (ISM) Diagraph and Cross-Impact Matrix Multiplication Applied to Classification (MICMAC) analysis. This study was able to explore the interrelationship among these barriers. The study has found found a lack of support from stakeholders, and insufficient managerial support emerged as a major factor neglected by Indian SMEs. However, uncertainty in the predicted demand for products, the lack of an alternate solution to the technological breakdown, and doubt about the sustainability of Industry 4.0 (relating to its potential to lead to unemployment in society, etc.) are significant contingent barriers. These barriers can impact the other strategic choices related to the successful implementation of Industry 4.0. This study’s observations can help decision-makers make strategic decisions to manage the barriers affecting Industry 4.0 in Indian SMEs. This research revealed a scope that can be extended to other South Asian and developing nations. The results of the present work can be further studied with structural equation modeling (SEM) and multiple regression analysis (MRA). Full article

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13 pages, 318 KB

Open AccessArticle

The Impact of Investment Efficiency on Firm Value and Moderating Role of Institutional Ownership and Board Independence

by Mahdi Salehi, Grzegorz Zimon, Arash Arianpoor and Fatemeh Eidi Gholezoo

J. Risk Financial Manag. 2022, 15(4), 170; https://doi.org/10.3390/jrfm15040170 - 7 Apr 2022

Cited by 47 | Viewed by 15386

Abstract

This study investigates the impact of investment efficiency on firm value with a moderating role of institutional ownership and board independence for companies listed on the Tehran Stock Exchange (TSE). The information from 177 companies in 2014–2021 was examined. Tobin’s Q is a [...] Read more.

This study investigates the impact of investment efficiency on firm value with a moderating role of institutional ownership and board independence for companies listed on the Tehran Stock Exchange (TSE). The information from 177 companies in 2014–2021 was examined. Tobin’s Q is a common measure for firm value, and it is a market-based measure and provides a good tool of comparison. The results show that investment efficiency has an impact on firm value. In addition, institutional ownership and board independence moderate this impact. There is a gap between the impact of investment efficiency on firm value and the moderating role of institutional ownership and board independence. This gap creates an opportunity for carrying out in-depth research on those variables. Since the impact of investment efficiency on firm value emphasizing the role of institutional ownership and board independence has not been studied, the study’s findings can show the importance and necessity of this study and fill the gap in this field. Full article

20 pages, 332 KB

Open AccessArticle

Customers’ Risk Tolerance and Suppliers’ Investment Inefficiency

by Karel Hrazdil, Jeong-Bon Kim and Xin Li

J. Risk Financial Manag. 2022, 15(2), 63; https://doi.org/10.3390/jrfm15020063 - 1 Feb 2022

Cited by 2 | Viewed by 4066

Abstract

We examine the effect of the risk tolerance of downstream firms (i.e., customers) on the investment inefficiency of upstream firms (i.e., suppliers). Using the pilot licensing status of the CEOs as a proxy for their inherent risk tolerance, we find that customer firms [...] Read more.

We examine the effect of the risk tolerance of downstream firms (i.e., customers) on the investment inefficiency of upstream firms (i.e., suppliers). Using the pilot licensing status of the CEOs as a proxy for their inherent risk tolerance, we find that customer firms led by pilot CEOs are associated with suppliers’ investment inefficiency, where investment inefficiency is more pronounced when the suppliers have less bargaining power over their customers. Our dynamic analysis confirms the causative relation between customer risk tolerance and supplier investment inefficiency and suggests that customers’ risk tolerance plays a significant role in shaping suppliers’ relationship-specific investment strategies. Full article

13 pages, 1016 KB

Open AccessArticle

Factors Influencing Investments into Human Resources to Support Company Performance

by Jarmila Duháček Šebestová and Cristina Raluca Gh. Popescu

J. Risk Financial Manag. 2022, 15(1), 19; https://doi.org/10.3390/jrfm15010019 - 6 Jan 2022

Cited by 27 | Viewed by 12881

Abstract

Human resources are very important in a business; however, the return on investment in human resources is longer than in fixed assets, so entrepreneurs frequently consider how much to actually invest. This article, based on primary research, examines the motivations for investment when [...] Read more.

Human resources are very important in a business; however, the return on investment in human resources is longer than in fixed assets, so entrepreneurs frequently consider how much to actually invest. This article, based on primary research, examines the motivations for investment when a 20% profit is typically invested with a model return of around 14%. Those findings are supported by the results presented in Archetype models based on similarity clustering. The results are based on an empirical study (278 respondents, omnibus survey) in the Czech Republic. Moreover, the study concludes that the business experience positively influences human resource management and future development to increase the investment share. In essence, this article displays the paramount importance of human resources and human resource management in the international business environment, demonstrating that investments in human resources are crucial to the success of all businesses, positively and consistently supporting organizations’ performance, and entrepreneurship will continue to remain a vital component of the activities belonging to the post COVID-19 era. In addition, in an era governed by the influences specific to the knowledge-based society and the knowledge-based economy, in which intellectual capital will be considered one of the most relevant intangible assets of entities all over the world, the measurement of human resources investment will turn out to be essential for the success of all businesses, while taking the necessary steps in supporting sustainability, sustainability assessment and Sustainable Development Goals (SDGs). Full article

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13 pages, 670 KB

Open AccessArticle

Project Management Maturity Models for Construction Firms

by Filipe Machado, Nelson Duarte, António Amaral and Teresa Barros

J. Risk Financial Manag. 2021, 14(12), 571; https://doi.org/10.3390/jrfm14120571 - 25 Nov 2021

Cited by 11 | Viewed by 6616

Abstract

This paper aims to identify and analyze project management maturity models in order to identify those best suited to be adopted in construction firms. To do so, models from papers available in academic repositories were analyzed. To be successful, the construction business deeply [...] Read more.

This paper aims to identify and analyze project management maturity models in order to identify those best suited to be adopted in construction firms. To do so, models from papers available in academic repositories were analyzed. To be successful, the construction business deeply depends on projects outcomes; thus, the implementation of project management maturity models is important for this sector. A maturity model is a valuable technique to assess project management capabilities within a single part of an organization or to assess an organization as a whole. Its main purpose is to provide a means to create a more organized and predictable way for organizations to achieve their goals, increasing their chances of success regarding the outputs, outcomes, and benefits. In this paper, documentary research was performed to identify available project management maturity models and togather information about their performance. The information gathered was used to find elements to be compared with the identified models. Reviewing the literature, 39 project management maturity models were identified. The authors selected two PMMMs that were well fitted to assess the project management capabilities in construction firms: OPM3 and MMGP Prado. Full article

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13 pages, 1110 KB

Open AccessArticle

Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events

by Clement A. Tisdell

J. Risk Financial Manag. 2021, 14(11), 532; https://doi.org/10.3390/jrfm14110532 - 8 Nov 2021

Cited by 3 | Viewed by 3967

Abstract

After providing a general overview of factors that make businesses economically vulnerable to pandemics (such as COVID-19), this article identifies specific elements that increase the vulnerability of businesses to pandemics. These specifics include the extent to which the demand for their production declines, [...] Read more.

After providing a general overview of factors that make businesses economically vulnerable to pandemics (such as COVID-19), this article identifies specific elements that increase the vulnerability of businesses to pandemics. These specifics include the extent to which the demand for their production declines, how easy it is for them to reduce the costs of their production (cost escapability), the importance of disruptions or breaks in the supply chains of inputs utilized by businesses, and their ability to sustain their liquidity. Businesses that rely on personal contacts for sales are especially threatened, for example, those in the hospitality and tourism sector. However, others are also vulnerable for the reasons given. Nevertheless, some businesses do gain as a result of pandemics and similar events. Their economic gain adds to GDP. However, it could be more appropriate to regard their gains as a part of the cost of a pandemic rather than a benefit of it. The effect on the vulnerability of businesses if government policies designed to control pandemics is also considered. The main original contribution of this article is to show how the microeconomic theory of the firm can be adapted to conceptualize the vulnerability of individual businesses to pandemics, particularly COVID-19, while also noting the limitations of this approach. Full article

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32 pages, 509 KB

Open AccessArticle

A Focus on Ethical Value under the Vision of Leadership, Teamwork, Effective Communication and Productivity

by Víctor Mercader, Esthela Galván-Vela, Rafael Ravina-Ripoll and Cristina Raluca Gh. Popescu

J. Risk Financial Manag. 2021, 14(11), 522; https://doi.org/10.3390/jrfm14110522 - 1 Nov 2021

Cited by 33 | Viewed by 30529

Abstract

The new economy and the knowledge-based society brought significant changes in all the areas of our daily lives. Also, the COVID-19 pandemic and the COVID-19 crisis implicated tremendous transformations in all the domains, on the one hand, threatening the balance of our society [...] Read more.

The new economy and the knowledge-based society brought significant changes in all the areas of our daily lives. Also, the COVID-19 pandemic and the COVID-19 crisis implicated tremendous transformations in all the domains, on the one hand, threatening the balance of our society and, on the other hand, challenging the dynamic of the new economy development and the rhythm of the societal modernization. In these delicate times, the all-important relationship between ethics, leadership, teamwork, effective communication, productivity, and performance is brought to the attention, in particular, due to its benefits for our society, taking into consideration the pivotal advancement that a well governed relationship of this type could provide to the knowledge-based economy. The present research describes the implication of ethics in leadership, teamwork, effective communication, and productivity, which includes the application of ethical values as university graduates assume the role of each of the mentioned dimensions of study in the organizations. The absence of research that relates ethics to these four elements simultaneously was noticed. This information is essential to know how these dimensions influence the organizational level. The sample that included 410 university graduates was applied in Baja California, Mexico, and the industrial nucleus of great relevance, bordering California in the United States of America. The data was obtained using a questionnaire. A reliability and validity analysis of the measurement instrument was carried out in terms of the ethical values associated with the dimensions mentioned using the exploratory factor analysis by the principal components method. Qualitative items were also analyzed using the constant comparison method. The results obtained in this research provide a greater perspective and practical knowledge and support of usefulness and practical reality to businesspeople and employees, leaders and university graduates; and also extensive to students, teachers, and human beings in general, in order to be better prepared to give and apply solutions with their consequent ethical and productive achievements desired by all. Additionally, this current research has the purpose to raise the will to understand, at a higher level and at a more in-depth degree of knowledge, the relationship between ethics, leadership, teamwork, effective communication, productivity, and performance, in the attempt to foster a creative and innovative business environment, based on a robust and sustainable business administration and business competencies, capable to position at higher ranks the strengths, opportunities, aspirations and outcomes that today’s new economy is due to offer and diminish the dangerous effects of the COVID-19 pandemic and the COVID-19 crisis in all the domains. Full article

20 pages, 413 KB

Open AccessArticle

Misfit? The Use of Metrics in Innovation

by Ilse Svensson de Jong

J. Risk Financial Manag. 2021, 14(8), 388; https://doi.org/10.3390/jrfm14080388 - 19 Aug 2021

Cited by 1 | Viewed by 3810

Abstract

Measuring innovation is a challenging but essential task to improve business performance. To tackle this task, key performance indicators (KPIs) can be used to measure and monitor innovation. The objective of this study is to explore how KPIs, designed for measuring innovation, are [...] Read more.

Measuring innovation is a challenging but essential task to improve business performance. To tackle this task, key performance indicators (KPIs) can be used to measure and monitor innovation. The objective of this study is to explore how KPIs, designed for measuring innovation, are used in practice. To achieve this objective, the author draws upon literature on business performance in accounting and innovation, yet moves away from the functional view. Instead, the author focuses explicitly on how organizational members, through their use of KPIs in innovation, make sense of conflicting interpretations and integrate them into their practices. A qualitative in-depth case study was conducted at the innovation department of an organization in the process industry that operates production sites and sales organizations worldwide. In total, 28 interviews and complementary observations were undertaken at several organizational levels (multi-level). The empirical evidence suggests that strategic change, attributed to commoditization, affects the predetermined KPIs in use. Notably, these KPIs in innovation are used, despite their poor fit to innovation subject to commoditization. From a relational perspective, this study indicates that in innovation, KPIs are usually complemented by or supplemented with other information, as stand-alone KPIs exhibit a significant degree of incompleteness. In contrast to conventional studies in innovation and management accounting, this study explores the use of key performance indicators (KPIs) in innovation from an interpretative perspective. This perspective advances our understanding of the actual use of KPIs and uncovers the complexity of accounting and innovation, which involve numerous angles and organizational levels. Practically, the findings of this study will inform managers in innovation about the use of KPIs in innovation and the challenges individual organizational members face when using them. In innovation, KPIs appear to be subjective and used in unintended ways. Thus, understanding how KPIs are used in innovation is a game of reading between the lines, and these KPIs can be regarded as misfits. Full article

22 pages, 1186 KB

Open AccessArticle

Exploring Critical Success Factors of Competence-Based Synergy in Strategic Alliances: The Renault–Nissan–Mitsubishi Strategic Alliance

by Andrejs Čirjevskis

J. Risk Financial Manag. 2021, 14(8), 385; https://doi.org/10.3390/jrfm14080385 - 19 Aug 2021

Cited by 12 | Viewed by 12964

Abstract

This paper aims to unbundle the antecedents of competence-based synergy in the strategic alliance formation process by employing the ARCTIC framework. The current research provides a new empirical application of the ARCTIC framework to reveal the success factors of reciprocal synergies of the [...] Read more.

This paper aims to unbundle the antecedents of competence-based synergy in the strategic alliance formation process by employing the ARCTIC framework. The current research provides a new empirical application of the ARCTIC framework to reveal the success factors of reciprocal synergies of the Renault–Nissan–Mitsubishi strategic alliance in the automotive industry. By taking a resource-based view on the sources of competitive advantage, the current paper contributes to theoretical and practical issues of global strategic alliances as part of the existing literature on strategic management, international business, and corporate finance. By bridging qualitative and quantitative research methods, the paper provides validity to the ARCTIC framework with an application of the real option valuation. A conceptual model of research helps practitioners and scholars to explore critical success factors of alliance formation and to predict a competence-based synergy of strategic alliances. Future research may explore the institutional context of strategic alliances, specifically, exploring the impact of the French and Japanese governments on the Renault–Nissan–Mitsubishi alliance’s synergies. Full article

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15 pages, 3298 KB

Open AccessArticle

Managing Risks in the Improved Model of Rolling Mill Loading: A Case Study

by Nelli Vladimirovna Syreyshchikova, Danil Yurievich Pimenov, Elena Nikolaevna Yaroslavova, Munish Kumar Gupta, Muhammad Aamir and Khaled Giasin

J. Risk Financial Manag. 2021, 14(8), 359; https://doi.org/10.3390/jrfm14080359 - 6 Aug 2021

Cited by 5 | Viewed by 2894

Abstract

This article reflects the main sources of risks for metallurgical enterprises in Russia, presenting the implementation of an innovative approach to increasing the competitiveness of an industrial enterprise, which is a typical representative of large enterprises of the metallurgical industry, based on the [...] Read more.

This article reflects the main sources of risks for metallurgical enterprises in Russia, presenting the implementation of an innovative approach to increasing the competitiveness of an industrial enterprise, which is a typical representative of large enterprises of the metallurgical industry, based on the development of risk-oriented thinking when loading rolling mills with orders of intersecting assortment according to a new model. To reduce the emerging risks of a new model of the loading process of rolling mills of a metallurgical enterprise, it is proposed to take into account the risks in a complex way, taking into account their interactions with the use of integrated risk management (IRM). Practical development of the implemented approach was carried out by identifying the risks of the new improved loading process and their causes at each stage of the process. Risks were identified by analysis, qualitative and quantitative assessment of the likelihood of risks and the severity of consequences from their implementation with the establishment of events with a high potential hazard. Possible causes of hazardous events have been identified. To reduce the likelihood of unfavorable events, measures have been developed to influence significant risks and their effectiveness has been determined. The development of an innovative approach using risk-based thinking in a previously unexplored field of the application provides competitive advantages for enterprises of the metallurgical industry, increases income by reducing the cost of manufacturing products and production volumes by reducing time costs, achieving an economic efficiency of up to 10 million rubles per year. The practical significance of the dissemination of development results in similar industries is obvious and relevant for metallurgy as a whole. Full article

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17 pages, 2928 KB

Open AccessArticle

Digitization, Epistemic Proximity, and the Education System: Insights from a Bibliometric Analysis

by Ugo Fiore, Adrian Florea, Claudiu Vasile Kifor and Paolo Zanetti

J. Risk Financial Manag. 2021, 14(6), 267; https://doi.org/10.3390/jrfm14060267 - 12 Jun 2021

Cited by 5 | Viewed by 3288

Abstract

Advances in IoT, AI, Cyber-Physical Systems, Computational Intelligence, and Big Data Analytics require organizations and workforce to be able and willing to learn how to interact with digital technology. In organizations, coordination and cooperation between actors with expertise in business and technology is [...] Read more.

Advances in IoT, AI, Cyber-Physical Systems, Computational Intelligence, and Big Data Analytics require organizations and workforce to be able and willing to learn how to interact with digital technology. In organizations, coordination and cooperation between actors with expertise in business and technology is fundamental, but integration is hard without understanding the terminology and problems of the interlocutor. Epistemic proximity becomes prominent, underlining the importance of an education focused on flexibility, willingness to cope with the unknown, and interdisciplinarity. The main goal of this work is to provide a perspective on how the education system is evolving to support organizations in the digitization era through a quantitative analysis of literature. More than 170,000 papers were selected from the Scopus database, matching a wide set of keywords related with innovation, problem solving, and organizational change. Patterns in the co-occurrence of keywords were studied. In addition, similarities and differences in the distribution of relevant themes across disciplinary areas, as well as their evolution since 2000, were analyzed. Academic interest is found to be generally increasing over the years in all disciplines, although considerable fluctuations can be observed. This variation is found to be nonuniform in the macroareas. Full article

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20 pages, 2195 KB

Open AccessArticle

Structural Failures Risk Analysis as a Tool Supporting Corporate Responsibility

by Agnieszka Czajkowska and Manuela Ingaldi

J. Risk Financial Manag. 2021, 14(4), 187; https://doi.org/10.3390/jrfm14040187 - 20 Apr 2021

Cited by 8 | Viewed by 6020

Abstract

The problem of the structural failures is inextricably linked with the construction industry. A structural failure can be defined as the unintentional, violent destruction of a building object or its part, as well as structural elements of scaffolding, forming elements, sheet piling and [...] Read more.

The problem of the structural failures is inextricably linked with the construction industry. A structural failure can be defined as the unintentional, violent destruction of a building object or its part, as well as structural elements of scaffolding, forming elements, sheet piling and excavation linings. Structural failures always entail financial and environmental losses that cause a big problem for companies. The analysis of the structural failures allows to indicate the causes that led to them, but also to introduce actions to help avoid them or decrease their appearance in the future. From the point of view of sustainability risk, human life, corporate responsibility, but also possible financial penalties, it is a very important element of the business process management in an enterprise. In the paper the structural failures occurring in Poland in 2015–2019 were analyzed based on data from the General Office of Building Control (GUNB). They are divided into two categories: caused by random factors and resulting from human error. Failures caused by human error were divided into those related to construction, used material and building operation (exploitation). The structural failures occurring during construction works, e.g., construction, renovation, demolition works, as well as in existing facilities, e.g., during the use of the facility but also in facilities excluded from use, were analyzed. Then, the individual causes of the structural failures were analyzed in terms of repeatability in each category. The risk priority number was calculated for the causes in the group “random events” and nine causes related to “human error”. Actions aimed at reducing the risk of future failures were proposed. The results of the analysis provide conclusions that constitute input data for the improvement of both the processes themselves and the procedures for design, construction and exploitation, or methods and frequency of inspections. Full article

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15 pages, 1094 KB

Open AccessArticle

Draft Methodology of the Age Management Implementation in Human Resource Management in a Transport Company

by Martina Hlatká, Ondrej Stopka, Ladislav Bartuška, Mária Stopková, Daniela N. Yordanova, Patrik Gross and Petr Sádlo

J. Risk Financial Manag. 2021, 14(4), 183; https://doi.org/10.3390/jrfm14040183 - 17 Apr 2021

Cited by 9 | Viewed by 4142

Abstract

At present, companies should definitely be able to adapt to their environment. It entails being able to successfully predict and eliminate flaws and undesirable steps which may result in negative consequences. It can only be executed by careful consideration of three basic enterprise’s [...] Read more.

At present, companies should definitely be able to adapt to their environment. It entails being able to successfully predict and eliminate flaws and undesirable steps which may result in negative consequences. It can only be executed by careful consideration of three basic enterprise’s components which comprise the following: material resources, financial resources and human resources. An effective corporate coordination and human resource management is a cornerstone of the enterprise’s success while these components are of the same importance to this success. To this end, the aim of this manuscript is to design innovative recruitment procedures when using age management approach for a specific transport company; in particular, its human resource management is taken into consideration. In the initial parts of the manuscript, an analysis of quantitative and qualitative data is performed, wherein introduction into the addressed subject, relevant literature review, as well as description of utilized data and methods within the conducted research are elaborated. Consequently, in a case study section, the Work Ability Index (WAI) method is used to focus on the chosen group of employees in order to profoundly investigate their work abilities. The very examination of employees’ life cycle encompasses multiple age categories and measures a decrease in their work ability level. As for the ensuing (final) parts of the manuscript, a thorough evaluation of results obtained, appropriate discussion and, last but not least, conclusion section are compiled, in which the most imperative findings of the performed investigation are comprehensively summarized. Following the above, the purpose of this study is to compile a novel methodological procedure in terms of using the principles of age management in human resource management; specifically, in an opted transport company, and thus helping towards more effective and sustainable corporate recruitment strategy. Full article

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16 pages, 1646 KB

Open AccessArticle

State-of-the-Art Analysis of Intrapreneurship: A Review of the Theoretical Construct and Its Bibliometrics

by Esthela Galván-Vela, Eduardo Arango Herrera, Deisy Milena Sorzano Rodríguez and Rafael Ravina-Ripoll

J. Risk Financial Manag. 2021, 14(4), 148; https://doi.org/10.3390/jrfm14040148 - 1 Apr 2021

Cited by 25 | Viewed by 6685

Abstract

Business complexity demands that companies look for alternative ways to ensure their survival. Thus, one means to generate a competitive position, growth and development is intrapreneurship, which refers to entrepreneurship that arises within established organizations. However, current studies of the phenomenon are sometimes [...] Read more.

Business complexity demands that companies look for alternative ways to ensure their survival. Thus, one means to generate a competitive position, growth and development is intrapreneurship, which refers to entrepreneurship that arises within established organizations. However, current studies of the phenomenon are sometimes limited to contributions that lack substantive theory. Given this problem, the objective of this study was to determine the current state of the art of intrapreneurship based on a documentary analysis. Similarly, a bibliometric analysis was carried out that evaluated the existing publications. A total of 133 documents related to the term were found. After analyzing these documents, we concluded that new studies on the matter need to be developed. Therefore, a future agenda is proposed and the implications of this phenomenon on the performance of current companies are discussed. Full article

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