It is well recognized that transformational leadership can have a positive effect on organizational performance. However, further research into the intermediate processes through which this positive effect occurs is needed, especially in the not-for-profit (NFP) sector. This study proposes a model within which enterprise risk management (ERM) maturity is an important variable intervening in the relation between transformational leadership and NFPs’ non-financial performance, specifically internal process performance, employee performance and client performance. Using survey data from 322 Australian NFPs, it was found that ERM maturity mediates the relations between transformational leadership and the three non-financial performance outcomes. The study has both theoretical implications for research and practical implications for NFP managers in fashioning their leadership style and designing their organizational processes to better manage risk within their organizations.
Organizations frequently employ part-time workers to facilitate agility in responding to changing demand patterns. However, this operational strategy introduces coordination costs, particularly in scenarios involving complex tasks. In this study, it is posited that the employment of part-time labor incurs coordination costs, especially in situations characterized by high task complexity. Conversely, in settings with low task complexity, such costs are diminished. Consequently, the overall effect of part-time labor on firm efficiency remains ambiguous in equilibrium. To address this gap, this paper investigates the influence of part-time labor on firm efficiency and examine whether this impact is contingent on the complexity of tasks undertaken by firms. The findings reveal a negative average correlation between firms’ utilization of part-time labor and operating efficiency, implying that, on average, any potential efficiency gains derived from employing part-time workers are counteracted by increased coordination costs. Furthermore, the analysis indicates that this adverse relationship is amplified for firms dealing with higher levels of task complexity. These results underscore the nuanced interplay between part-time labor, task complexity, and firm efficiency, providing valuable insights for organizational decision-making and resource allocation strategies.
The aim of this chapter is to investigate whether the triggers for the Balanced Scorecard (BSC) adoption decisions affect the extent of implementation and the consequences including the adopters’ perceived benefits from the BSC and their organizational performance. This chapter develops a conceptual model that integrates the extent of implementation and the adoption outcomes with the four BSC adoption decision triggers based on Abrahamson (1991): efficient choice, forced selection, fashion and fad which are distinguished as economic motivations and institutional pressures. The conceptual model is tested by path analysis using data collected through a survey of 103 Italian organizations that have adopted the BSC. The findings show that different types of institutional pressures influence BSC design and usage differently leading to varying outcomes of the BSC adoption. However, it is evident that for the best results, the adoption decision needs to have an economic motivation that is associated with an internal problem or shortcoming. Hence, it is argued that problematization is an important step in the BSC implementation process and regardless of the initial trigger for the adoption decision, BSC champions in an organization need to start their implementation process by building a case for how the BSC will address an internal problem or shortcoming.
As the chief executive officer (CEO) narcissism literature has matured, several empirical challenges have emerged. Existing research finds mixed statistical associations between CEO narcissism and outcomes of interest. Furthermore, studies have employed different empirical specifications when examining the association of CEO narcissism with outcomes of interest. These empirical challenges influence the validity of inferences made. This paper discusses the empirical specifications used and highlights the role they play. Several commonly used unobtrusive measures of CEO narcissism are uncorrelated within the sample. Moreover, the relationship between CEO narcissism and firm investment and financial performance depends on the measure of narcissism employed and empirical model choices made. recommendations for future research examining CEO narcissism are provided.
This study investigates the role of managerial cognitive capability (MCC) and decentralization of decision rights (DDR) in promoting the design elements of the enabling control systems. Drawing on the endogenous organizational routine change framework (Feldman & Pentland, 2003) and enabling budgetary control literature, this research argue that MCC and DDR make it possible for organizations’ staff to specialize in exploring and mobilizing idiosyncratic and decision-relevant information. Updated with such knowledge and skills, they subsequently have the impetus to introduce changes in routine budgetary practices and develop budgets as enabling control systems. Leveraging on data collected from a survey of senior managers in municipalities in Bangladesh, this research examined the predicted relationships among the variables. Our empirical evidence reveals that both explanatory variables significantly contribute to the development of Adler and Borys’ (1996) four enabling design features in the budgetary control system. Each feature, as a consequence, mediates the impacts of organizational flexible characteristics on how well organizations function. The theoretical insights of this novel study are necessary in order to develop a holistic understanding of how an enabling framework works. The actionable insights derived may also assist organizations in tailoring their budgets to improve adaptability, innovation, and strategic alignment and optimizing the allocation of resources. The findings also suggest that managers should consider factors like revenue diversification (RD) and size of their operations because these can influence budgetary control systems in allocating resources for the purpose of improving overall performance.
This study investigates the effect of worker incentives on their co-worker’s productivity, in a setting in which they work on independent tasks. According to goal-setting theory, when a patent examiner’s target difficulty increases, her productivity will also increase. Co-workers, feeling pressured to keep up, may increase their own productivity in response. Simultaneously, in an effort to meet her more challenging performance target, the examiner may request more help from her co-workers or spend less time helping them, causing a decrease in her co-workers’ productivity. To investigate this question, a difference-in-difference design is estimated using internal US Patent and Trademark Office (USPTO) data on patent examiners’ incentives, output, and working groups. The findings indicate that a patent examiner’s increase in target difficulty causes a decrease in her coworkers’ productivity. This decrease is attributable to the examiner requesting additional help from her co-workers which detracts from the time they have to spend on their own tasks. These results suggest that individual worker incentives can negatively affect co-worker’s productivity, even when they work on independent tasks.
This study explores the relationship between organisational initiatives on social sustainability embedded within firms’ management control systems (MCSs) and their earnings quality. Using Simons’ (1994) control levers framework, the analysis examines the impact of these initiatives on corporate disclosure behaviour via earnings quality, measured through accruals-based earnings management. The longitudinal dataset includes 7,182 observations from US-listed firms between 2007 and 2021. The findings provide robust evidence of the positive implications of integrating social control mechanisms (SCMs) within MCSs, enhancing corporate disclosure behaviour. Furthermore, corporate governance (CG) is identified as a moderating element that facilitates the development of a culture of accountability, transparency, and ethical conduct, thereby reinforcing the relationship between SCMs and earnings quality. Overall, this study significantly contributes by emphasising the crucial impact of SCMs on corporate disclosure behaviour. The insights gained hold practical implications for organisations seeking to enhance social sustainability practices and cultivate stakeholder trust.
This study examines how asking employees to self-assess their performance during the compensation-setting process, when they are unaware of their marginal contribution to firm profit, affects employer welfare. Previous research suggests that giving employees a voice in the compensation setting process can positively affect employee performance and firm profit (Jenkins & Lawler, 1981; Roberts, 2003). However, I propose that asking employees to assess their own performance as part of the compensation setting process can have unintended consequences that ultimately lead to higher employee compensation demands. This is because asking employees to assess their performance increases their overconfidence in their own performance and their compensation demands. As a result, employers may face the dilemma of whether to meet these higher compensation demands or risk economic losses due to employee retaliation if their demands are not met. Through experimental evidence comparing a control condition without self-assessments and three self-assessment reporting conditions, I provide evidence that supports the notion that eliciting employee self-assessments as part of the compensation process reduces employer welfare. Data on employee perceptions of performance further support the idea that asking employees to evaluate their performance leads to an inflated perception of their performance. These findings provide a theory-based explanation of why, in practice, many companies disentangle employee performance assessments from the compensation setting process and that companies are well advised in doing so.
