PurposeThis paper aims to explore how individual resilience contributes to organizational resilience through a processual perspective. While resilience is widely recognized as a multi-level construct, limited research has examined how personal experiences of individuals influence the resilience of organizations they lead. Design/methodology/approachThe study employs a qualitative analysis of secondary data, focusing on the life trajectory of Steve Jobs, widely regarded as a resilient individual who led a resilient organization. This biographical case study approach allows for the identification of individual and entrepreneurial resilience factors and traces how these factors are transferred and adapted at the organizational level. FindingsOur analysis suggests that resilience developed in personal life can be transferred to the entrepreneurial context and subsequently integrated into organizational dynamics. This transfer occurs through the adaptation and transposition of individual resilience behaviors into organizational practices. The study highlights the critical role of personal experiences in shaping durable organizational resilience. Originality/valueThe paper contributes to resilience literature by proposing a dynamic approach that explicitly links individual and organizational resilience. It offers a conceptual framework demonstrating how personal and entrepreneurial resilience factors can be mobilized to enhance an organization’s adaptive capacity and performance. By bridging the gap between individual and organizational resilience, this research provides novel insights into the mechanisms through which personal resilience informs and strengthens organizational resilience.
PurposeIf purpose represents an organization’s reason for being, it should have significant implications for everyone involved, from top executives and leadership teams to employees and external stakeholders. Yet, how purpose connects the critical human and institutional components of an organization remains insufficiently addressed in the literature. The aim of the current text is to advance a circular model of organizational purpose focused on internal stakeholders, namely employees, managers, and leaders. Design/methodology/approachAt the corporate level, purpose is typically conceptualized as an organizational attribute, akin to vision, mission, and values. This anthropomorphic framing is useful because it helps scientists and managers understand what purpose is, where it originates, and why it matters. However, attributing individual-level characteristics to an organization has limitations when explaining how purpose is created and how it is intended to influence employees and managers. The current text advances a conceptual model aimed at addressing these limitations. FindingsThe text first integrates individual purpose with organizational purpose, arguing that the closer the fit between the two, the greater the likelihood that the organization will generate value. It then introduces a cycle that connects organizational actors in the design and implementation of corporate purpose. This circular model seeks to enhance alignment between the purpose of the company’s founders and/or top management team and the individual purposes of employees and other stakeholders. Originality/valueAs rapid technological change and shifts in the world of work create new complexities for individuals, companies, and society, organizational purpose is emerging as a critical theme; this text contends that a well-defined purpose can offer meaning and direction to all stakeholders, from employees to top management.
PurposeThis study examines how different forms of strategic orientation – technology orientation (TO), entrepreneurial orientation (EO), and growth orientation (GO) affect the performance of small and medium-sized enterprises (SMEs). Whilst prior research has demonstrated positive links between strategic orientations and firm performance, less attention has been paid to the role of digital technology (DT) adoption in shaping these relationships. This study addresses this gap by analyzing the direct effects of strategic orientations and the moderating influence of DT adoption, with particular attention to food-sector SMEs in Vietnam. Design/methodology/approachThis study uses a qualified sample of 460 SMEs, derived from the merging of two data sources from the 2024 surveys conducted by the Vietnam General Statistics Office. The study employs the Extended Regression Model (ERM) to assess DT’s moderating role. FindingsThe findings validate the substantial positive impacts of TO, EO, and GO on SME performance. Furthermore, digital transformation enhances the positive correlation between each orientation and performance, indicating that firms utilizing digital tools derive greater advantages from their strategic orientations. Originality/valueThis study enriches strategic orientation literature by providing empirical evidence of DT’s role as a moderator in the orientation-performance nexus. The findings also offer practical insights by showing DT as a strategic enabler that amplifies orientation-performance links, guiding managers and policymakers in fostering digital adoption for sustainable growth.
PurposeThis study explores the opportunities and challenges of integrating artificial Intelligence (AI) tools into higher education, with a particular focus on their ethical, pedagogical, and institutional implications. It examines how academics perceive generative AI’s impact on teaching, learning, research, and assessment, and identifies the values and governance frameworks required for its responsible adoption. Design/methodology/approachA qualitative research was employed, drawing on semi-structured interviews with 12 academics from UK higher education setting. Thematic analysis was conducted following Braun and Clarke’s (2006, 2019) six-phase framework, with NVivo used to capture the nuanced ways in which staff interpret and respond to AI adoption. FindingsFive interrelated themes were identified. Participants reported a shifting sense of academic identity, with AI seen as challenging traditional expertise and authority. Concerns around ethics, integrity, and trust were pervasive, particularly regarding plagiarism, fairness, and transparency. In relation to teaching, assessment, and learning, AI was perceived as both a disruptor of established pedagogical models and a catalyst for innovation. Institutional culture and governance were highlighted as underdeveloped, with a lack of clear guidance creating inconsistency across practice. Finally, perspectives on AI’s future trajectories reflected ambivalence, combining fears of diminished integrity with cautious optimism for more personalized and efficient learning. Originality/valueThe study contributes to debates on digital transformation in higher education by demonstrating how AI adoption is understood through the lenses of academic identity, ethics, and governance. It underscores the need for adaptive institutional policies, embedded AI literacy, and equity-focused safeguards. The findings suggest that the desirable future is not AI-free but AI-literate: one in which universities harness AI responsibly while preserving the scholarly values that underpin higher education.
PurposeThis article examines how leaders of small firms in emerging markets can transform resource constraints into sources of competitive advantage. Using the case of a Brazilian sneaker customization startup, the study explores how co-creation, adaptive leadership and process discipline enable strategic innovation under conditions of limited capital, low technological infrastructure and supply chain instability. Design/methodology/approachThe study adopts an in-depth qualitative case approach supported by process mapping, interviews with entrepreneurs and analysis of customer interaction practices. The case was examined through a strategic lens to identify leadership decisions, adaptive mechanisms and organizational practices that enable innovation and differentiation under persistent constraints. FindingsThe findings show that co-creation operates as a strategic capability rather than a marketing tool. Specifically, leadership decisions to maintain open-ended customer involvement, selectively constrain product platforms, and introduce minimum viable process discipline enabled the firm to align customer expectations with operational capacity. These actions reduced rework and reputational risk while sustaining differentiation under severe resource constraints. Research limitations/implicationsBased on a single case, the findings are context-specific and invite future comparative research across industries and emerging economies to further examine leadership-driven innovation under constraint. Practical implicationsThe study offers actionable insights for leaders of small firms facing uncertainty, showing how co-creation, relational leadership and basic process discipline can enhance innovation, customer loyalty and strategic positioning without major investments. Originality/valueThe article contributes to strategy and leadership research by demonstrating how innovation in emerging markets is shaped by leadership choices that reframe constraints as strategic assets. It provides a rare, practice-oriented account of how co-creation and operational discipline jointly support competitive advantage in small firms operating under severe resource limitations.
Purpose In the present study, we develop and validate the Power Addiction Scale (PAS), a reliable and valid scale to assess the compulsive and excessive tendencies to seek, maintain, and exert power among managers and leaders in organizations. To the best of our knowledge, this is the first scale to measure power addiction in the field of organizational behavior. Design/methodology/approach The study included 435 employees from Turkey. The scale was developed based on literature review, grouping open-ended responses, expert content validity, pre-testing, administration of the survey, and analysis of data. Analysis methods included exploratory factor analysis (EFA), confirmatory factor analysis (CFA), reliability analysis using internal consistency, determined by Cronbach’s alpha, and validity analysis using average variance extracted and discriminant validity. Findings The final 29-item scale consisted of two dimensions: Power Addicted Behavior and Power Addicted Attitude. The proposed model showed good fit. Reliability, measured through coefficients alpha, was achieved with scores between 0.869 and 0.976. Convergent validity was established through average variance extracted scores greater than 0.50. The power addiction scale also achieved discriminant validity with Machiavellianism, narcissism, and personal need for power. Originality/value The study developed and validated the first psychometrically sound measure of workplace power addiction, the Power Addiction Scale, thus filling a critical gap in power addiction research. The scale can be practically applied in leadership development, organizational development, and human resource management but needs studies to test cross-cultural validation.
PurposeThis study examines the velocity trap in which organizations optimize execution speed while strategic relevance deteriorates, and introduces the Strategic Event Horizon and Velocity Gambit as a structured rescue maneuver for senior leaders. Design/methodology/approachConceptual, practice-grounded article drawing on the Standish Group’s CHAOS Report (n = 50,000 projects), dual practitioner surveys (n = 105), and case study (n = 25, 12 interviews), interpreted through Red Queen competition theory, Boyd’s OODA Loop, and Lean Startup literature. FindingsA 36-percentage-point gap separates projects hitting targets (57%) from those achieving strategic goals (21%), illustrating systematic velocity-value decoupling. The supporting case material surfaces the work vs improvement dichotomy as a recurring constraint, while the Velocity Gambit organizes Boyd’s OODA Loop into a four-phase managerial decision protocol. An illustrative cloud-native platform case shows how the protocol can be applied in practice. Research limitations/implicationsThe evidence base is illustrative rather than confirmatory: the case evidence is single-site, the surveys are convenience-sampled, and the CHAOS data remains proprietary. Future work should test the framework across industries and with longitudinal designs. Practical implicationsThis study provides diagnostic indicators for velocity-value decoupling, a four-phase OODA-mapped intervention, organizational readiness prerequisites, and governance guardrails. The velocity trap extends beyond financial costs to burnout and talent attrition. Originality/valueThis study formalizes the Strategic Event Horizon, operationalizes Boyd’s OODA Loop for established firms, and bridges Red Queen theory with Lean Startup pivot protocols, providing decision architecture where psychological substrates prevent incremental self-correction.
Purpose Over the past two decades, the issue of environmental concerns has garnered growing global attention. The primary objective of this study is to investigate the relationship between green transformational leadership and firm performance, with two mediating variables, environmental passion and environmental strategies, as well as control variables. This paper offers critical new insights into how ecological passion, combined with Green Transformational Leadership, enhances corporate performance through environmental strategy. The role of green transformational leadership is to improve firm performance and motivate both the leader and others toward a sustainable environment. Design/methodology/approach We obtained data from 1512 respondents working in SME manufacturing companies in China, using a convenience sample approach. The two software packages used in this study are Smart PLS, R, and SPSS for data analysis. Findings Our findings, based on the data, indicate that the role of green transformational leadership in firm performance is significant, with the two mediating variables of environmental passion and environmental strategies also contributing to firm performance. Originality/value This study provides a novel contribution by empirically linking green leadership to firm performance through dual mediators, environmental passion and strategy. It highlights the psychological and strategic mechanisms through which sustainable leadership translates into measurable organizational benefits, offering practical implications for business leaders and policymakers focused on sustainability and performance enhancement.
Purpose This study applies the framework of dynamic managerial capabilities to the field of strategic human resource management with the practical aim of aiding managers in guiding their organizations to sustainable competitive advantages. We test that dynamic managerial capabilities improve acquisition decision-making and drive effective deployment and performance outcomes. Design/methodology/approach This study uses a multivariate analysis of covariance to measure the impact that dynamic managerial capabilities have on strategic human resource decision-making as it relates to firm performance. To measure this, this study draws upon the unique context of college athletics, analyzing a data set consisting of 111 of the top college football programs in the United States. Findings The results of this study found a significant effect of dynamic managerial capabilities on the four outcome variables of recruitment, organizational performance, human resource deployment, and rapid human resource deployment. Specifically, results provide evidential support that firms with stronger dynamic managerial capabilities are associated with improved human resource decision making and positive performance outcomes. Originality/value Dynamic managerial capabilities is a relatively new and burgeoning field of study to understanding firm performance. Extant research has examined the impact of dynamic managerial capabilities on various organizational aspects such as strategy, marketing, or supply chain management. This current study sheds light on the critical yet overlooked effect that dynamic managerial capabilities have on the human resource decisions of the firm and demonstrates that firms acquire resources based on quality rather than current fit.
Purpose The rapid diffusion of artificial intelligence (AI) has intensified organizational efforts to enhance innovation, agility, and long-term resilience. However, many firms struggle to translate AI initiatives into sustained strategic outcomes. This study aims to examine how digital leadership, AI strategic orientation, and AI governance jointly shape digital capability and innovation, and how these capabilities foster organizational agility and strategic resilience. Design/methodology/approach The study adopts a quantitative research design using survey data collected from 302 managers and professionals across organizations of varying sizes and sectors. Drawing on Dynamic Capabilities Theory and Upper Echelons Theory, the model is empirically tested using PLS-SEM to assess both measurement and structural relationships. Findings The findings demonstrate that digital leadership and AI strategic orientation play central roles in building digital capability, whereas AI strategic orientation and AI governance significantly enhance innovation. Digital capability and innovation jointly foster organizational agility, which emerges as the key mechanism through which AI-related capabilities translate into strategic resilience. Originality/value This study contributes to the literature by integrating AI strategic orientation and AI governance into a dynamic capability framework that explains strategic resilience. By empirically positioning organizational agility as the primary transmission mechanism between AI-enabled capabilities and resilience, the research offers a more nuanced understanding of how organizations can move beyond isolated AI initiatives toward sustained, capability-based transformation in turbulent environments.
Purpose This study aims to examine the mechanisms through which employee psychological entitlement influence emotional exhaustion and abusive supervision among team managers, and its impact on team cohesion. Design/methodology/approach Drawing on Conservation of Resources theory, this study investigated the relationships among team members’ psychological entitlement (PE), counterproductive workplace behavior (CWB), team managers’ emotional exhaustion (EE) and abusive supervision (AS), and team cohesion (TC). Adopting a dyadic conceptual approach, Study 1 examined these relationships from the perspective of team managers, while Study 2 investigated them from the perspective of team members. Specifically, this study hypothesized that CWB mediates the relationships between PE and EE/TC (Study 1), and between PE and AS (Study 2). Findings The findings revealed that while manager-perceived PE positively correlated with CWB (Study 1), self-reported data showed a nonsignificant relationship (Study 2), highlighting the critical role of perspective. Crucially, CWB emerged as a significant mediator: it mediated the relationships between PE and team managers’ emotional exhaustion and team cohesion (Study 1), and between PE and team managers’ abusive supervision (Study 2). Interestingly, the direct impact of PE on emotional exhaustion and team cohesion was nonsignificant, suggesting CWB acts as the critical link. Practical implications The findings suggest that organizations should prioritize identifying and managing CWB, given its significant burden on team resources and dynamics. It is also crucial to address the root causes of managerial abusive supervision, recognizing it can stem from resource depletion and lack of support. Originality/value This study contributes by adopting a novel dyadic conceptual approach to examine psychological entitlement and its impact from both manager and member perspectives, grounded in COR theory. It highlights CWB as a critical mediator, explaining how team members’ entitlement influences managerial well-being and team dynamics, including the emergence of abusive supervision as a manager’s maladaptive coping mechanism.
Purpose This study examines how a clearly defined AI strategy influences employee creativity in knowledge-intensive organizations. It investigates the mediating role of employees perceived usefulness of AI tools and the moderating effect of digital leadership in shaping this relationship. Design/methodology/approach Data were collected via a questionnaire survey administered to 344 employees across organizations that have implemented AI initiatives. Using quantitative methods, we tested a conceptual framework in which AI strategy predicts perceived usefulness of AI tools, which in turn influences employee creativity. Digital leadership was tested as a moderator of the AI strategy to perceived usefulness and from perceived usefulness to creativity pathway. Findings Results show that a robust AI strategy increases perceived usefulness of AI tools among employees, which positively impacts employee creativity. Digital leadership significantly strengthens this effect: in organizations with high digital leadership, the positive effect of AI strategy on perceived usefulness and hence creativity is more pronounced. Research limitations/implications The cross-sectional design limits conclusions about causality and the temporal dynamics among AI strategy, perceived usefulness, digital leadership, and creativity. Self-report measures may introduce response bias. Also, findings may not generalize across all industries or cultural contexts. Practical implications Organizations should develop coherent AI strategies and invest in digital leadership development to maximize employee creativity. Training programs that enhance employee understanding of AI utility, coupled with leaders who actively support and guide AI adoption, can amplify creative outcomes. Originality/value This study contributes to the literature by integrating AI strategy, perceived usefulness, and digital leadership into a single model explaining employee creativity. While previous work has considered these constructs separately, their combined synergistic effect has been underexplored. The findings offer new insights for practitioners seeking to leverage AI to foster innovation in the workplace.
Purpose Artificial intelligence service robots (AISRs) are reshaping the hospitality industry, offering strategic advantages in efficiency, service consistency, and customer engagement. However, extant research remains largely grounded in Western, individualistic contexts that privilege utilitarian performance metrics. Limited attention has been given to how culturally embedded relational ethics shape customer evaluations of AI-mediated service encounters. This study aims to examine the strategic and ethical implications of AISR adoption for customer satisfaction within the Ubuntu-informed South African hospitality context. Design/methodology/approach A qualitative research design was adopted using purposive sampling. Data were collected through focus groups and semi-structured interviews with hospitality consumers in South Africa. Inductive thematic analysis was conducted to identify patterns in consumer interpretations of the use of AISRs and their perceived impact. Findings Strategically designed, emotionally intelligent AISRs can enhance satisfaction, whilst ethical shortcomings, such as limited transparency or cultural misalignment, undermine trust. Hoteliers are encouraged to adopt AISRs that balance robotic efficiency with human warmth, provide opt-in controls, and remain sensitive to cultural values. Originality/value This study advances strategic AI governance scholarship by integrating cultural ethics with Service Differentiation Theory in emerging markets. It offers insights into how the culturally aligned adoption of AISRs can improve customer satisfaction whilst addressing concerns about transparency, trust, and Ubuntu values. Future research should extend these findings by quantitatively assessing the evolving role of AISRs.
Purpose This study aims to critically evaluate workplace accountability within the public sector, focusing on the National Health Service West Midlands region in the UK. Workplace accountability is widely regarded as a mechanism for enhancing organisational productivity and performance; however, it is frequently perceived by employees as punitive and associated with a culture of blame. While some scholars argue that as organisations expand and become more bureaucratic, formalisation is necessary, others contend that effective accountability requires a supportive culture grounded in leadership, trust and team empowerment. Despite its significance, empirical research examining workplace accountability within large public sector organisations remains limited. Design/methodology/approach A mixed-methods research design was adopted, combining questionnaire surveys and semi-structured interviews to capture both quantitative and qualitative insights. Statistical analysis was applied to survey data, while thematic analysis was employed to interpret interview findings. Findings The results indicate that workplace accountability is perceived as essential to organisational success. However, 65% of respondents reported a lack of trust in senior management regarding accountability practices. Furthermore, 91% believed that inadequate accountability adversely affects health and safety outcomes, and approximately 60% perceived existing accountability mechanisms as unfair. The study identifies key drivers, consequences and improvement factors influencing accountability practices within the organisation. Practical implications Drawing on these findings, the research advances seven interrelated improvement factors: (1) raising awareness of accountability expectations; (2) clarifying roles and responsibilities; (3) cultivating an embedded accountability culture; (4) promoting continuous and progressive learning; (5) ensuring the right people are positioned in the right roles; (6) implementing fair and meaningful reward systems and (7) fostering inclusivity and procedural fairness. Collectively, these elements provide a practical framework for strengthening accountability within complex public organisations. Social implications Organisations particularly within the public health sector should prioritise the development of fair, transparent and inclusive accountability systems supported by consistent feedback mechanisms, collaborative practices and professional integrity as foundational principles. Originality/value This research contributes to the strategy, management and leadership literature by providing empirical evidence on the complexities of workplace accountability in the public sector. The findings offer practical implications for managers and policymakers seeking to foster a productive, fair and inclusive organisational environment.
Purpose This study investigates the integration of the circular economy (CE) in Human Resource Management (HRM) in Indian organizations, focusing on identifying and prioritizing critical HR factors for adopting sustainable initiatives Design/methodology/approach An exploratory two-phase methodology was employed. The Delphi technique refined a list of 31 potential factors, narrowing them down to 15 critical ones, which were prioritized using the Analytic Hierarchy Process (AHP) approach Findings The analysis reveals that functional factors, particularly leadership commitment, organizational culture, change management, and cross-functional collaboration, are crucial for driving circular economy practices in HRM. Control systems are necessary for compliance, but insufficient for innovation and societal transformation required for successful CE integration. Research limitations/implications Policymakers should emphasize top management support and leadership commitment. The study encourages improving workers’ CE knowledge and skills through training initiatives to foster a sustainability-driven culture in Indian companies. Originality/value This paper offers a novel compilation of refined HR characteristics facilitating CE implementation within HRM. It organizes these elements into discrete groups, determining their hierarchical importance and creating a framework for further research on business policy, sustainability, HRM, and CE.
Purpose This study examines how leadership justice relates to innovative work behavior among R&D employees in China’s new energy vehicle (NEV) industry, contributing to climate action, with a focus craftsman spirit and job embeddedness. Design/methodology/approach Data were collected from 200 R&D employees in listed NEV firms in Jiangsu province. SmartPLS (PLS-SEM) was used to assess the measurement model and test direct, mediating and moderating effects. Findings Leadership justice is positively associated with leader trust, which, in turn, is linked to stronger craftsman spirit and higher innovative work behavior. Craftsman spirit mediates the relationship between leader trust and innovative work behavior. Job embeddedness does not significantly moderate the relationship between leader trust and craftsman spirit. Research limitations/implications The cross-sectional, single-province design limits causal inference and generalizability. Future work should use longitudinal, multi-source data and test alternative moderators in the NEV context. Practical implications Managers can promote innovative work behavior by institutionalizing fairness, transparency and craftsmanship standards. Job embeddedness may aid retention but may not strengthen innovation pathways. Originality/value The cross-sectional, single-province design limits causal inference and generalizability. Future work should use longitudinal, multi-source data and test alternative moderators in the NEV context.
Purpose A purpose without an ethical foundation risks can become self-serving or even harmful, whereas ethical frameworks help ensure that leadership serves the broader community. This paper aims to develop a framework that links ethical principles to organizational practices in contemporary leadership. Drawing on utilitarian, justice, and virtue perspectives on ethics, the paper integrates these with scriptural insights from the Jewish tradition, particularly the Abrahamic narrative. In doing so, it explores how ethical principles can inform purpose-driven leadership and guide organizations in navigating today’s societal and strategic challenges. Design/methodology/approach This conceptual paper integrates three ethical perspectives with contemporary management theories (e.g., stakeholder theory, purpose-driven leadership) and applies them across seven principle–application linkages. Each linkage follows a structured logic: ethical justifications, scriptural illustrations grounded in the Jewish tradition, and managerial applications. This approach bridges moral philosophy and organizational practice. Findings The research indicates that ethical perspectives can be systematically translated into organizational practices through a principle–application framework. The integration of ethical theory, scriptural narrative, and management concepts suggests that purpose-driven leadership is grounded in stewardship, justice, compassion, and integrity. Organizations that align their strategies with these principles can achieve sustainable performance, build stakeholder trust, and address complex societal challenges. Originality/value Management theories often emphasize efficiency, organizational behavior, and strategic decision-making, which are important for operational success. However, they tend to be pragmatic and context-specific, focusing more on how to manage than on why leadership exists and what constitutes a morally sound purpose. This paper mitigates the gap by examining contemporary management research alongside ethical principles rooted in Abrahamic traditions, an approach that remains underexplored in leadership studies. By combining traditional ethical insights with modern business imperatives, the paper offers both theoretical depth and practical, societal relevance for leaders who seek to build purpose into their organizational culture.
Purpose Facing an innovation crisis marked by escalating research and development (R&D) costs, declining R&D productivity and recurrent patent expirations. Big Pharma companies have undergone a profound business model transformation from the traditional blockbuster model to the specialty pharma model, centered on targeted therapies for complex and rare diseases. This study aims to examine how this transformation reshaped R&D organization, analyzing the opening of corporate R&D to external participants and the emergence of multi-stakeholder R&D ecosystems. Design/methodology/approach The paper adopts a document-based analysis of R&D practices of ten leading Big Pharma firms. Peer-reviewed empirical studies, industry reports and company disclosures are analyzed, compared and strategically interpreted to trace the evolution of open R&D in the context of business model change, with particular attention to the increased adoption of digital technologies in drug development. Findings The specialty pharma model required Big Pharma companies to access biotechnological and digital competencies complementary to their internal capabilities, making open R&D a central strategic response. Over time, these companies established a broad range of long-term collaborative R&D arrangements with diverse external partners. Across companies, a novel R&D organization structure in the form of multi-stakeholder R&D ecosystems is emerging around Big Pharma firms, coordinated through soft management mechanisms. Findings also indicate that digital technologies, particularly artificial intelligence, are expanding the pool of potential collaborators and enabling new forms of interaction and coordination across the R&D value chain. Originality/value The study reframes open R&D in Big Pharma not as an isolated strategic choice but as a business model-driven shift from acquisition-led integration and ad hoc partnering to the orchestration of R&D ecosystems, linking business model theory with open innovation and ecosystem literature in a pharma-specific frame.
PurposeThe impacts of Institutional Voids (IVs) are expected to differ for Social Enterprises (SEs) and traditional for-profit enterprises. Similarly, SEs and for-profit enterprises are expected to differ in how they manage IVs. However, extant research has dominantly focused on the latter, thus overlooking how SEs navigate underdeveloped and challenging institutional regimes. Design/methodology/approachRelying on an exploratory multiple-case study approach of six SEs in Ghana, this study seeks to strengthen and deepen our understanding of social entrepreneurship in and around institutional voids such as those found in developing countries to specifically explore how SEs cope with formal market IVs. FindingsThe multiple case study findings suggest that SEs adopt various unique strategies such as partnerships/collaborations, image management, skills and capacity building initiatives, promotion/outreach, adaptive distribution and delivery setups among others to cope with or manage institutional voids. Research limitations/implicationsThe small sample size coupled with the fact that the six organizations operate in two West African countries only, has implications for the generalizability of findings. However, this study, besides contributing to the institutional voids and institutional strategizing literature, identify the various strategies SEs adopt to respond to institutional voids from which we have developed the “Hybridity Coping Strategy Process Model,” depicting the three aggregate strategies that social enterprises rely on in achieving their aims while overcoming institutional voids. Practical implicationsOur theoretical model (Hybridity Coping Strategy and Process model) depicts three key strategic responses (creative action, linkages, and capability-building and education) that social entrepreneurs can adopt to tackle institutional voids. Social implicationsPractitioners (including for-profit enterprises intending to adopt a social enterprise label) can use the findings of this study as a guide on how to be competitive and succeed in challenging environments such as those found in Africa. Originality/valueThe study complements prior literature (studies of institutional voids) on organizations’ strategic responses to institutional voids by throwing light on the strategies that smaller organizations (such as small and medium social enterprises as in the case of our study) that lack resources and influence are adopting to navigate institutional voids whilst achieving their raison d‘être in understudied geographical contexts such as the setting of this study.
PurposeThis study examines the relationship between corporate social responsibility (CSR) performance and financial performance, focusing on the moderating role of managerial entrenchment. The research aims to understand how entrenched managers influence the effectiveness of CSR initiatives and their impact on financial outcomes, particularly in the context of stringent French regulations. Design/methodology/approachThe study employs a generalized least squares (GLS) econometric model to analyze a panel of 120 companies listed on the SBF 120 index from 2011–2022. The model integrates Environmental, Social and Governance (ESG) scores, managerial entrenchment indicators and financial data to isolate the effects of CSR and governance on performance. Managerial entrenchment is measured using a novel composite index combining CEO tenure, CEO-Chairman duality and anti-takeover provisions. Robustness tests, including alternative measures and sectoral subsampling, are conducted to ensure the reliability of the results. FindingsThe results reveal a significant positive relationship between CSR performance and financial performance, supporting stakeholder theory. However, managerial entrenchment negatively moderates this relationship, as entrenched managers tend to prioritize superficial, media-friendly CSR initiatives over substantive, long-term investments. This strategic misalignment reduces the financial benefits of CSR, particularly in firms with high levels of managerial entrenchment. Additionally, robust governance mechanisms, such as board independence and size, positively influence financial performance. Research limitations/implicationsThe study is limited by its focus on French firms listed on the SBF 120, which may restrict the generalizability of the findings to other contexts. Future research could explore cultural and sectoral variations, as well as the impact of crises (e.g., pandemics, energy transitions) on CSR strategies. The study also calls for further investigation into the underlying mechanisms of managerial entrenchment and its interaction with CSR innovation and reputation Practical implicationsThe findings suggest that companies should adopt a balanced approach to CSR and governance. Implementing term limits for CEOs, creating independent CSR committees and integrating measurable ESG indicators into executive compensation can help align managerial incentives with stakeholder interests. Firms should also invest in green technologies and sustainable business models to mitigate the negative effects of managerial entrenchment on CSR effectiveness. Social implicationsThe study highlights the importance of ethical governance in ensuring that CSR initiatives serve the common good rather than personal legitimization. By promoting transparency and accountability, companies can build trust with stakeholders and contribute to sustainable development. The research underscores the need for regulatory reforms to strengthen corporate governance and align CSR strategies with societal expectations. Originality/valueThis research makes a significant contribution to the business ethics literature by empirically validating the positive impact of corporate social responsibility (CSR) on financial performance, while simultaneously exposing the ethical myopia associated with managerial entrenchment. Its originality stems from a triple contribution that addresses key gaps in the field. First, it offers an important contextual advancement by focusing on France’s distinct stakeholder-oriented model, providing a crucial counterpoint to the dominant body of research centered on Anglo-Saxon market-based systems. Second, it delivers a methodological innovation through the creation of a novel, multi-dimensional entrenchment index that captures the complexity of this phenomenon beyond traditional proxy measures. Finally, and most substantially, it provides a theoretical breakthrough by revealing entrenchment’s dual role as both a driver of organizational stability and a negative moderator of CSR efficacy. This crucial finding helps reconcile conflicting perspectives in the literature by demonstrating how the same governance mechanism can simultaneously support certain organizational objectives while undermining ethical performance, thereby offering a more nuanced understanding of the complex relationship between governance structures, ethical decision-making and financial outcomes.
