Abstract

     Green innovation is an essential and burning topic for environmental and organizational performance. Therefore, this research aims to examine the effect of green innovation on environmental performance, which leads to organizational performance. Another objective is to measure the impact of two dimensions of green innovation, such as green process & green product measures, on green innovation. The second prime aim of this research is to evaluate the moderation of management commitment & human resource practices in an association between green innovation and organizational & environmental performance. A total of 320 employees provided their perspectives on a self-administrated questionnaire from the textile industry of Pakistan. We have employed SEM-based multivariate modeling to examine the data. This research has measured the reflective indicators measurement model through confirmatory factor analysis, an obvious choice of structural equation modeling to examine observed and unobserved variables and indicators using PLS-SEM (partial least square-structural equation modeling). The research findings reveal a positive & significant effect of product & process innovation on green innovation. Further, green innovation significantly impacts environmental and organizational performance. A two-way interaction (moderation) of human resource practices & green innovation does not have a cogent moderating effect on organizational & environmental performance. However, management commitment has a significant moderation between green innovation & organizational performance. A three-way interaction (moderated moderation) model finds a substantial effect on organizational attainment but an insignificant impact on environmental performance. The research outcomes significantly contribute and suggest that practitioners and policymakers must institutionalize green innovation practices in their organizations to enhance their organizational and environmental performance. HR practitioners play a vibrant role in creating green norms and organizational culture. The study findings also suggest that management commitment to green innovation advocates organization-level transformations toward adopting green practices.

Introduction

     With the advent of technology and scientific advancements, the world has provided immense exposure to artificial resources, making life leisurely. However, artificial resource opulence has come at the cost of sustainability and the environment. The world has thus been facing issues with balance acquisition between sustainable usage of resources and economic development [1,2]. Managing both have been a great concern for the economies as one comes at an expense and tradeoff. Researchers have observed that economic growth and sustainability cannot go together [3,4]. Green growth and general innovation are well recognized for their interrelationship [5]. It is essential to observe that national economic development is established through soaring industrial activities [6]. In this essence, Segerstrom [7] validated through his proposed model that firm-level innovations immensely support economic growth. Green innovation is beneficial to prevent the environment from pollution, help in recycling waste, and could also save non-biodegradable energy [8,9]. Moreover, green technologies could achieve sustainable development [10,11]. In order to implement and achieve the target of green innovativeness, firms need to adopt teamwork within their organizational ecosystems (Muisyo et al., 2022). The said process can be run by key parameters such as the organizations’ access to large-scale data, the commitment of the management, and proper usage of human reserves [12,13], among other considerations. The outcomes demonstrated that firms are enticed to accept green innovation practices when internally and externally motivated organizations. Internal motives combine management’s commitment and supplier’s partnership, whereas external motives are regulations and demand pressures from customers. Thus, there is a direct relationship between the two [14]; (Parmar et al., 2022). Organizations can enhance their performance through green innovation as green practices guide them to devise strategies that can help them use fewer resources, reduce the chances of harm, and create a carbon footprint in the organization [15]. The green revolution is a unique strategy that permits organizations to create new techniques and systems that help organizations enhance their performance [16,17].

Conclusion 

     This study evaluated the connotation between green product & process innovations and green innovation. Moreover, the study examined the impact of green innovation in affiliation with organizational & environmental attainment. The study’s findings explored all the hypotheses devised to meet study objectives. Moderation effects of management commitment towards greening and green human resource practices were also examined between the primary relationship. Primary responses were obtained from the mid-career and upper management of the textile sector of Pakistan. This research revealed that product & process innovations have a cogent and affirmative effect on green innovation. The findings further demonstrated that green innovation exerted an affirmative and cogent effect on organizational & environmental performance. Thus, the senior management should seriously consider green innovation projects to increase the firm’s environmental performance and the long run, sustainable competitive growth. While evaluating the moderating effect of HR practices on environmental attainment, the findings are not supported.

Abstract

This research addresses “Janus fit” brand extensions: extensions that are perceived to have both “fitting” and “unfitting” associations vis-a-vis the parent brand. One pre-experiment and three main experiments show that when a brand introduces a Janus fit brand extension, it is perceived to be more innovative than when it introduces either a traditional high fit extension or a low fit extension. The effects are mediated by surprise feelings. Specifically, the high brand innovativeness ratings obtained by the Janus fit extensions are explained by the fact that they elicit moderately high surprise feelings in consumers, instead of low surprise feelings (as high fit extensions) or excessively high surprise feelings (as low fit extensions). The Janus fit extensions can also be seen to evoke a “Eureka surprise experience”: an initial feeling of surprise, followed by a sudden realization that the brand extension after all makes sense for the brand in question.

Introduction

Brand extensions (i.e., new products introduced by an existing brand in a product category that is new for the brand) impact brand image, since brand image refers to consumers’ knowledge about a given brand and since brand extensions constitute new information about the brand (Michel and Donthu, 2014, Milberg et al., 2023, Salinas and Pérez, 2009).

One brand image-related goal that companies typically have when launching brand extensions is to reinforce the brand’s image as an innovative or pioneering brand, in particular (Aaker, 1996, Brown, 1998, Gürhan-Canli and Batra, 2004, Keller, 2003). A smartly executed brand extension can indeed reinforce the brand’s innovativeness or pioneering image1 among consumers, even if the brand extension product itself was not—objectively speaking—highly innovative, let alone “new to the world” (cf. Garcia & Calantone, 2002). For instance, by launching the e-book reader Nook in 2010, the book retailer brand Barnes & Noble was able to reinvigorate itself as an innovative brand—even though Barnes & Noble was objectively a late-mover in the market, coming after Amazon’s Kindle (2007) and Sony’s Reader (2009). Likewise, Apple has been able to maintain its image as an extremely innovative, pioneering brand through regular brand extensions, even if its brand extension products per se have not always been pioneering or highly innovative in their respective markets. For instance, Apple did not introduce its smartwatch Apple Watch until 2015, when Samsung, Sony, Microsoft, and others had already had similar smartwatches in the market for years.2

General discussion

8.1. Contributions to research
The present research mainly contributes to three streams of literature. First, the findings contribute to the literature on the spillover effects of brand extensions on parent brand evaluations. Prior research has explored a variety of spillover effects of brand extensions, ranging from the influence of extensions on parent brand evaluations in general (Chun et al., 2015, Martinez et al., 2009, Martinez and Pina, 2010, Milberg et al., 2023, Parker et al., 2018, Salinas and Pérez, 2009, Sood and Keller, 2012, Yuen et al., 2021), to their influence on a parent brand’s perceived personality (Diamantopoulos et al., 2005, Mathur et al., 2012). However, before the present research, brand extensions’ spillover effects on perceived innovativeness of the parent brand, in particular, had not been examined. Yet, the present results suggest that brand extensions do impact perceived brand innovativeness as well. Specifically, the results show that Janus fit brand extensions make consumers perceive the parent brand as more innovative than the more traditional and unsurprising high fit extensions or the excessively surprising low fit extensions.

Second, the present research contributes to the literature addressing the perceived fit of brand extensions. In particular, the present framework adds to the recent research by Deng and Messinger (2022), which suggested that perceived fit should be understood as a multidimensional construct rather than as a unidimensional concept. Like Deng and Messinger (2022), the present results imply that consumers’ fit perceptions may involve an assessment of the fit (or similarity/match) between a parent brand and brand extension product on multiple dimensions. At the same time, the present framework extends Deng and Messinger’s (2022) framework by addressing perceived fit as a dual measure of degree of “fit” and degree of “unfit” across the multiple dimensions. This dual measure of fit/unfit allowed us to identify the new type of brand extension—Janus fit extension—which the traditional additive measures of overall fit have overlooked. Whereas the Janus fit vs. the high fit brand extensions may not significantly differ on a traditional overall fit measure (as used by Chun et al., 2015), they differ significantly on the presently-applied dual, count-based fit scores and unfit scores.

Abstract

The relationship between corporate income tax rates and innovation is a critical international issue. Existing studies often overlook the potential mechanisms of market competition and productivity heterogeneity. This paper addresses these gaps by integrating these elements into a unified mathematical analysis framework. Using China’s corporate income tax reform as a quasi-natural experiment, this study empirically tests the model. The findings reveal that decreases in tax rates significantly foster innovation, while increases have the opposite effect. The underlying mechanism involves market competition, with the impact of tax changes being more pronounced in firms with higher productivity. This study deepens the understanding of the nexus between corporate income tax and innovation, providing new insights to refine tax policies that promote innovative economic development globally.

Introduction

The adjustment of corporate income tax rates significantly impacts economic dynamics, influencing corporate investment strategies and innovation activities. Prior research underscores innovation’s crucial role in driving long-term economic growth and delineates the foundational contributions of tax policies to shaping economic landscapes, highlighting the substantial influences of tax adjustments on both resource allocation and innovative outputs [1–4]. Particularly, China’s monumental corporate income tax reform (CITR) in 2008, which standardized tax rates across domestic and foreign entities, provides a unique empirical setting to explore these effects due to its global economic stature and rapid development. This study critically evaluates how CITR influences corporate innovation by dissecting the direct and indirect mechanisms through which tax changes affect firms’ operational and strategic behaviors. Leveraging China’s 2008 CITR as a quasi-natural experiment, this research not only enhances understanding of the dynamic interactions between tax policies and corporate innovation activities but also informs precise, data-driven policy making to stimulate economic and innovative growth. Through a comprehensive analysis, informed by the empirical data from the CITR [5], this investigation is pivotal for its potential to guide global economic policy, given the scale of China’s economy and the extensive implications of its tax reforms.

Previous studies, such as those by Atanassov & Liu (2020) and Akcigit et al. (2022), have extensively explored how changes in corporate income tax rates impact corporate innovation directly, primarily through adjustments in funding and cost structures [6,7]. However, these studies have tended to overlook the indirect pathways through which tax policies affect innovation, particularly the mediating role of market dynamics. Additionally, there is a notable gap in understanding how these tax effects vary among firms with different levels of productivity. This oversight forms the basis of our research motivation, leading us to investigate the broader and more nuanced impacts of tax rate changes.

Results and discussion

4.1 Basic regression
Baseline results. In our baseline regression analysis, we rigorously evaluated the overarching impact of CITR on innovation, as detailed in Table 3. Initial results from columns (1)–(3), utilizing PAC as the dependent variable, reveal that the beneficial impact of a tax decrease (Tax-down#Post08) on PAC, though somewhat diminished with the progressive inclusion of control variables and bidirectional fixed effects, remains statistically significant at the 1 % level. This suggests that the reduction in corporate tax rate notably enhances corporate innovation, evidenced by a 7.31 % increase in PAC. Conversely, the detrimental impact of a tax increase (Tax-up#Post08) on PAC progressively intensifies and is also significant at the 1 % level, reflecting a substantial 9.08 % reduction in PAC due to the heightened corporate tax rate. Further analyses presented in columns (4)–(6), with PGC as the dependent variable, align with these findings. A decrease in the corporate income tax rate (Tax-down#Post08) significantly boosts PGC by 8.89 %, whereas an increase (Tax-up#Post08) correspondingly depresses PGC by 6.91 %.

Abstract

Newly established enterprises in China face significant challenges and opportunities, with persistently high mortality rates. Navigating market challenges and establishing sustainable competitive advantages are pressing issues for contemporary businesses. This study delves into the bridging role of business model innovation between entrepreneurial bricolage and entrepreneurial performance, with market orientation influencing the relationship boundaries. We examined 288 Chinese small and medium-sized enterprises, investigating the relationships among entrepreneurial bricolage, business model innovation, market orientation, and entrepreneurial performance. Empirical results indicate: (1) Entrepreneurial bricolage positively influences business model innovation, and business model innovation positively impacts entrepreneurial performance. (2) Business model innovation plays a fully mediating positive role between entrepreneurial bricolage and entrepreneurial performance. (3) Market orientation positively moderates the impact of entrepreneurial bricolage on business model innovation and entrepreneurial performance, and it also positively moderates the impact of business model innovation on entrepreneurial performance. (4) Market orientation positively moderates the impact of entrepreneurial bricolage, mediated by business model innovation, on entrepreneurial performance. The study results contribute to a more effective understanding of the mechanisms through which entrepreneurial bricolage and business model innovation influence entrepreneurial performance, as well as how market orientation moderates their relationships and how enterprises sustain competitive advantages.

Introduction

In recent years, entrepreneurship has become a new focal point for economic and social development worldwide, seen as a new driving force for promoting economic and social progress. In today’s highly competitive business environment, new startups face significant challenges and opportunities. While there have been many successful new startups that have achieved brilliance through business model innovation, such as Didi, Xiaomi, and Xiami Music, the mortality rate of new startups remains high. For instance, in the bike-sharing industry, apart from the leading companies Mobike and Ofo, almost all second and third-tier companies’ financing processes have been concentrated around Series A or A+ rounds, with many experiencing a wave of closures since the second half of 2017. In the complex and rapidly changing environment, due to inherent “new” and “small” disadvantages, new startups generally have a higher failure rate [1]. Therefore, how new startups can address market challenges and build sustainable competitive advantages is a pressing issue for enterprises today and will continue to be a research hotspot in the field of strategic management for a long time (see Table 12).

Entrepreneurship can undoubtedly contribute significant value to the economy and society [2]. For new startups, enhancing entrepreneurial performance becomes a practical challenge. Read points out that the success of most startups often stems from initially overlooked idle resources [3]. Entrepreneurial bricolage is a way of rationalizing the allocation of these idle (or redundant) resources, allowing startups to obtain enterprise value at the lowest cost, thereby contributing to performance improvement [4]. Entrepreneurial bricolage also facilitates entrepreneurs in innovating and adjusting business models [5]. Therefore, entrepreneurial bricolage, as a precursor to business model innovation, can provide new business opportunities and innovative ideas for enterprises [6]. However, startups are constantly in a predicament of resource constraints, and to build novel business models, they have no choice but to creatively combine existing resources [7]. Business model innovation also has a positive impact on entrepreneurial performance [8]. It is an essential means for enterprises to achieve performance, but this innovation process continually evolves in overcoming market uncertainty [9]. Thus, enterprises must be market-oriented, continuously adjusting and optimizing their products, services, and market strategies [10]. Market orientation is a culture that emphasizes creating excellent value for customers, creating more value for customers through shared value concepts, behavioral norms, and effective process combinations, thereby achieving outstanding organizational performance [11]. In the early stages of entrepreneurship, startups face the problem of resource constraints. A market-oriented strategy that focuses on customer needs and actively captures market opportunities is an effective way to gain competitive advantages for enterprises [12]. Research indicates that market orientation can enhance entrepreneurs’ sensitivity to market demand, thus promoting entrepreneurial bricolage and business model innovation [5,8], ultimately boosting entrepreneurial performance.

Conclusion

This study links entrepreneurial bricolage, business model innovation, and entrepreneurial performance through the regulation of market orientation, and uniquely constructs and explores a moderated mediation model. The study reveals several important findings: (1) Entrepreneurial bricolage significantly and positively impacts business model innovation. (2) Business model innovation, in turn, has a significant and positive effect on entrepreneurial performance. It also serves as a complete mediator between entrepreneurial bricolage and entrepreneurial performance. (3) Market orientation plays a crucial role in regulating the impact of entrepreneurial bricolage on business model innovation. It also positively regulates the impact of business model innovation on entrepreneurial performance. (4) Market orientation further exhibits a significant regulatory effect on the impact of entrepreneurial bricolage on entrepreneurial performance, acting as a mediator in this relationship. In summary, entrepreneurial bricolage, business model innovation, and market orientation are interconnected factors that influence entrepreneurial performance in a positive and significant manner.

Abstract

Sustainability issues have long been a critical notion in business, while successful green human resource management (GHRM) has the potential to help organizations perform better in terms of environmental sustainability. The current paper evaluates the mechanism through which green human resource management affects green organizational commitment, green innovation practices and low-carbon behaviour among 610 employees in South Africa. The study further evaluates the mediation connection among the variables and the moderating influence of green transformational leadership through social cognitive theory. The stratified sampling approach was applied in selecting the respondents, and the structural equation model was applied to test the hypotheses. The empirical outcome of this research is as follows: (1) GHRM has a positive and substantial effect on green organizational commitment, green innovation practices and low-carbon behaviour. (2) The findings also revealed that green organizational commitment and green innovation practices affect low-carbon behaviour among staff. (3) The results suggest that green organizational commitment and green innovation practices have a substantial mediation influence on the connection between green human resource management and low-carbon behaviour. (4) Last, green transformational leadership discovered a positive moderating effect on the link between green human resource management and low-carbon behaviour. The paper makes several practical recommendations for strengthening low-carbon behaviour. Therefore, human resource management managers should outline measures that can be used to empower and engage employees in environmental issues and provide them with autonomy to address these challenges.

Introduction

Governments are pressured globally to accelerate carbon cuts and align national climate action plans with the Paris Agreement (Cai et al., 2022a; Sampene et al., 2021; Wiredu et al., 2023). Steg et al. (2017) believe these programs and interventions will achieve their target when focused on people’s behavioural concepts. Similarly, Wang et al. (2021) proposed that addressing environmental challenges requires behavioural and cognitive changes from all societal sectors and levels. Hence, it is prudent to examine employees’ low-carbon behaviour (LCB) and how it contributes to environmental performance (EP) among small and medium-sized enterprises (SMEs) in the Republic of South Africa. South Africa is the world’s 14th largest emitter of greenhouse gases (Adebayo and Odugbesan, 2021; Shikwambana et al., 2021). Therefore, South Africa plans to reduce its unemployment rate through SMEs and the manufacturing sector; however, van Staden (2022) believes this may put pressure on the energy sector, contributing significantly to the country’s higher levels of environmental pollution. This is because the country’s CO2 emissions are principally high due to a heavy dependence on non-renewable energy sources from SMEs.

Hence, it is imperative to advance research on pollution from SMEs in this era, where there is a growing debate for SMEs to go into “green initiatives.” As Meissner (2022) revealed, green innovation practices (GIPs) and green organizational commitment (GOC) have several implications, such as reducing production costs and improving firms’ EP. In addition, GIP helps firms reduce waste generation, reduce harmful emissions, and preserve natural resources. Firms’ involvement in GIP also helps attract customers who support environmental management initiatives (Bass, 2020; Meissner, 2022). Therefore, this study identified various drivers to improve LCB among SMEs in light of this discussion. LCB has been described as human activities geared toward protecting the environment. LCB is also known in some studies as “environmentally friendly behaviour”, “green environmental behaviour”, and “pro-environmental behaviour” (Foster et al., 2022; Yuan and Li, 2023). As a result of the upsurge in climate issues caused by human behaviour, one subject matter that has attracted interest in environmental sustainability research is LCB (Ansari et al., 2021). To understand the concept of employee LCB, the researcher envisioned social cognitive theory (SCT). SCT emphasizes that individual behaviour influences the environment. This relation is reciprocal determinism; thus, people’s behaviour is defined as the interplay of environmental factors, behavioural concepts, and cognitive factors. As a result, this article extends SCT and evaluates the effect of employees’ LCB.

Conclusions and research implications

6.1. Conclusions
International organizations such as the United Nations and the recent Glasgow Agreement are championing the need for carbon emissions and preserving the environment for future generations. This call has necessitated the importance of this study, which focuses on low-carbon behaviour among employees of SMEs from an emerging country (South Africa). The research hypothesis was evaluated through the SEM-PLS methodology and the IPMA (importance-performance map analysis) analysis approach. The analysis from this research revealed that (1) GHRM has a positive and substantial effect on GIP, GOC, and LCB. (2) The findings also revealed that GOC and GIP positively influence LCB among staff. (3) The results suggest that GIP and GOC have a substantial mediation influence on the connection between GHRM and LCB. (3) Last, GTFL revealed a positive iterative effect on the link between GHRM and LCB. The following is an explanation of the theoretical and practical contributions based on the empirical results of the current analysis.

6.2. Theoretical implications
An integral theoretical contribution of this study is that while some evidence has been provided on the influence of GHRM on LCB (Shoaib et al., 2021), little environmental research has examined the intermediary effect of GOC and GIP on these concepts. More specifically, the evidence outlined in this paper demonstrated that GOC and GIP mediate the connection between GHRM and LCB. This research outcome indicates these variables’ significance in developing green innovation actions. In other words, the commitment levels and innovation practices exhibited by staff members can be influenced by GHRM policies, eventually affecting staff LCB. Furthermore, the study provided empirical evidence indicating that SMEs should invest in GIP and improve their staff’s GOC, as it has been established to be an effective tool for improving EP. Thus, GIP and GOC are future initiatives that bring about dynamic changes in institutions, technologies, and commercial strategies and help improve environmental sustainability. In addition, incorporating GTFL as a moderator provides a novel perspective on leadership’s role in promoting GHRM and LCB. Thus, the research proved that GTFL inspires workers to achieve better results. The research has revealed how vital GTFL is in improving the connection between GHRM-LCB. Therefore, managers must practice the GTFL approach to help foster the improvement of both ecological behaviour and firms’ EP.

Abstract

This study aims to analyze the role of green transformational leadership and human resource management in organizational performance with the mediating effect of green innovation. The study also proposes the moderating role of commitment to management change. The study used a quantitative research method with a random sampling technique and surveyed 235 managers from the Cement industry across Pakistan. The statistical techniques used to assess the study’s hypotheses were partial least squares structural equation modeling (PLS-SEM) and SPSS. The findings show that green transformational leadership and HRM positively impact organizational performance, with green innovation partially mediating effect. Furthermore, affective commitment to management change strongly moderates the relationship between green innovation and organizational performance. In addition, the proposed relationship is based on the resource-based view (RBV) theory. Therefore, Managers and executives should adopt green principles and practices and build an environmentally friendly culture that encourages employees to engage in green behaviors and activities to improve organizational performance. To successfully implement green practices in a developing country like Pakistan, the Cement sector must understand how the cement industry improves its performance and whether employees demonstrate green innovation.

Introduction

In recent decades, scholars have recognized the significance of Green HRM and green leadership in shaping the operational practices in modern firms [1]. In this regard, and for the efficient and effective management of operations, technology advancements, and rising stakeholder pressure have motivated firms to discover and implement cost-effective and long-term methods to improve organizational performance [2,3]. Enhancing performance has emerged as a primary problem for businesses, requiring the effective utilization of organizational resources and adopting environmentally sustainable practices in Green HRM and eco-friendly activities [4]. The significant rise in globalization and social responsibilities demands justifications for adopting optimal Green HRM practices and integrating data analytics to enhance decision-making [5,6]. To ensure the sustainability and advancement of green business activities, dominant policies encompassing Green HRM, innovation, leadership, environmental quality, and social well-being are essential. Businesses can mitigate their adverse environmental and societal impacts by implementing GHRM, green leadership, and innovative practices [7]. Green HRM comprises three crucial components: motivating employees to enhance their engagement, providing them with green opportunities, and assisting in developing their green skills, which are essential abilities [8]. The underlined components of Green HRM address staff recruitment, selection, development, and training with an environmentally conscious focus; the potential for adopting green practices encompasses employee involvement and green leadership [9].

Discussion

Our empirical work has examined the interactions among variables such as green transformational leadership, HRM, innovation, affective commitment to management change, and organizational performance of the cement industry in Pakistan using theoretical insights from RBV theory. Our study has thoroughly explained all three hypotheses and their sub-hypotheses, showing that the performance of an organization can be improved through green transformational leadership and HRM. This improvement is achieved through the mediating role of green innovation and the moderating role of affective commitment to management change. There is a strong and positive association between all three hypotheses.

Our study found that green transformational leadership influences firm performance by establishing a clear environmental vision, motivating individuals to adopt green practices, increasing employee commitment to achieving environmental goals, and encouraging staff to create and disseminate new green practices; these results are similar to past findings [41]. The results demonstrate that transformational leaders who foster their employees’ green practices to motivate them have excellent potential to execute green prospects effectively.

Abstract

Exploiting the global financial crisis of 2007–08 as an exogenous shock that resulted in a significant decline in the ownership of foreign institutional investors (FIIs) in the Indian equity market, we find evidence of a causal link between FIIs’ ownership and different dimensions of board monitoring. Specifically, the empirical results suggest that higher FIIs ownership leads to lower board size, busyness, network size, CEO power, CEO pay, and improved board diligence. However, we also document a negative link between FIIs’ ownership and board independence, indicating that FIIs do not view independent directors as effective monitors. In terms of implications, our results suggest that improved board monitoring, induced by higher FIIs’ ownership, leads to higher firm valuation and innovation activities.

Introduction

Although boards are recognized as a powerful internal corporate governance mechanism, their effectiveness can vary significantly (Adams et al., 2010, Tung, 2011).1 This has spurred research into the underlying causes and strategies for enhancing board effectiveness. Implementing effective internal corporate governance mechanisms that enhance board effectiveness is associated with reducing information asymmetry and agency risks (Jensen and Meckling, 1976, Renders et al., 2010). Existing literature provides support to this conjecture (e.g., Brick and Chidambaran (2010) and Conheady et al. (2015)) by showing a positive association between board monitoring, its effectiveness, and firm value.2

Our study adds to this growing area of literature by examining the influence of foreign institutional investors (FIIs) as a source of external corporate governance mechanism on the internal corporate governance mechanism, namely board effectiveness. Gillan and Starks (2003) offer a theoretical argument that growth in FIIs’ ownership should result in improved board monitoring and overall governance of the host firm.3 The literature highlights the role of FIIs in shaping corporate governance due to their substantial ownership in firms. FIIs are able to monitor board and management activities through voting rights and incentives via cash-flow rights. For instance, Bena et al., 2017, Ferreira and Matos, 2008, and Aggarwal et al. (2011) show that FIIs’ monitoring efforts are primarily directed toward enhancing long-term firm performance, demonstrating that FIIs can curb managers’ incentives to overinvest and improve governance, particularly in countries with weak shareholder protection. FIIs act as independent monitors, being non-domestic investors with limited ties to the host firms, thereby reducing agency costs and improving board monitoring quality (Gillan and Starks, 2003, Tsang et al., 2019). They are also more likely to exit investments in firms with subpar governance (Leuz et al., 2009). FIIs’ independence from local political pressure allows them to perform arms-length monitoring and resist decisions that do not maximize shareholder value. Moreover, their deep understanding of global corporate governance practices, experience, demand for information disclosure, and superior monitoring technologies empower them to foster better governance practices and board monitoring (Grinblatt & Keloharju, 2000). Unsurprisingly, anecdotal evidence suggests that FIIs influence board monitoring by removing directors whose decisions do not maximize their wealth and expropriate minority shareholders.4

Conclusion

One of the key trends in the global financial market during the financial crisis of 2007–08 was the “flight of capital” from emerging markets to developed economies. India, one of the largest emerging economies, also witnessed a substantial outflow of foreign capital in the aftermath of the crisis. From an empirical identification point of view, this crisis represents an unexpected negative shock to FIIs’ ownership in India, making it an ideal set-up to investigate the role of FIIs in influencing the monitoring role of boards. In this study, we focus on the four years pre-crisis and post-crisis beginning in 2008 and use different proxies of board monitoring to evaluate the impact of FIIs on the board monitoring of the firms in which they invest.

The literature on corporate governance notes that FIIs, being informed and sophisticated investors, have the incentive and ability to improve board monitoring. Our study adds to this literature by providing causal evidence of FIIs’ influential role in enhancing the effectiveness of board monitoring. Consistent with economic arguments, the results show that firms with higher FIIs’ ownership are associated with lower board size, busyness, network size, CEO power, CEO pay, and higher board diligence. Interestingly, we also find that FIIs prefer lower board independence in India. However, our result on board independence is counter-intuitive but not surprising, given the empirical evidence that managers in emerging markets may appoint directors independent from the regulators’ point of view. However, they are still connected and sympathetic to the existing management. We also find that FIIs improve the performance of the firms through their improved board monitoring role. Specifically, we find that the enhanced board monitoring by FIIs improves both firm value and corporate innovation measures.

Abstract

As innovative technologies spread, the role of means of interaction with customers in the digital environment is growing. Virtual reality technologies are becoming one of the most promising tools for significantly expanding customer interaction in the context of digital transformation. The purpose of this article is to analyze the brand strategies of the leading companies and show the possibilities of using virtual reality technology and the concept of the metaverse for brand formation and promotion. We also aim to assess the prospects and formulate recommendations on the use of the digital environment in brand management strategies. To achieve the set goal, several tasks were completed. The authors analyzed the experience of using the digital environment for interacting with customers and studied the influence of VR, AR, MR, and XR technologies on brand management. Additionally, the possibilities of using the metaverse concept for brand management was defined. In this work, general scientific theoretical and empirical research methods were applied. The study furthers the theoretical foundations of brand management in the digital environment via innovative branding technologies that support an increase in the competitive performance of companies.

Introduction

As information and communication technologies develop, the digital environment forces enterprises to rethink their strategic goals, transforming both the business itself and the methods of doing business. The use of digital technologies in marketing offers completely new value propositions and ways to promote the business [1].

Traditionally, promotion (communicative mix), as an element of marketing mix, combines various types of marketing communications, including advertising, direct marketing, public relations, etc. They are used to inform the target audience about the merits of a product, service, brand, or idea. Promotion is aimed at generating interest, raising awareness, increasing sales, or building brand loyalty [2]. The development of digital technologies has changed almost all the classic communication instruments and ways of obtaining information. Social networks, instant messengers, video hosting (e.g., YouTube, TikTok), and video conferencing tools (e.g., Zoom, Discord) are becoming more popular. Print media, TV, and radio channels are going digital and introducing online versions.

Conclusions

The analysis of the brand strategies of the leading companies showed quite ample opportunities for using the technologies of virtual, augmented, and mixed reality and the concept of the metaverse for the formation and promotion of brands.

New technologies and platforms, growing connections between communication channels, force companies to constantly seek and summarize best practices, working with customers and other stakeholders through various communication systems.

Branding in a virtual environment can often be challenging, but the benefits far outweigh the drawbacks. Therefore, virtual branding opportunities should be used to the maximum to gain competitive advantages.

Abstract

     While open innovation organizations have grown in popularity, they hold a high failure rate. This paper identifies limiting factors that contribute to this high failure rate at three levels: strategy, process, and community. After validating and expanding these limits through a case study, the paper offers a framework identifying success factors for open innovation and their hierarchical relationships. We classified these success factors into six groups, design, implementation, technology, operation, community readiness, and community development, and their relationships into four groups, deployment, engagement, evaluation, and governance. This framework and the accompanying propositions offer a better theoretical understanding of open innovation models and provide practical recommendations toward their viability, survivability, scalability, and profitability. Lastly, the paper discusses possible research avenues for the further development of open innovation organizations.

Introduction

      Open innovation (OI) is defined as a distributed innovation process based on purposively managed knowledge flows across organizational boundaries to accelerate internal innovation based on the use of external knowledge or support external innovation based on the use of internal knowledge. For a long time, the theoretical development of OI has been focused on the strategic benefits of OI in an attempt to position OI models as alternative solutions for innovation (Albats et al., 2021; Bogers et al., 2019; Chaudhary et al., 2022). While OI initiatives in tandem with digital platform technologies can potentially facilitate and enhance the innovation process and outcomes (Jesus and Jugend 2021; Nguyen et al., 2021), the downsides and the limits of this openness remain understudied (Kohler and Nickel 2017; Saura et al., 2022; Schlagwein and Bjørn-Andersen 2014; Schoder et al., 2019; Stefan et al., 2022).

     Proponents of OI have long argued that the literature falls short in documenting obstacles hindering OI’s successful implementation and governance (Bigliardi et al., 2020; Chesbrough and Brunswicker 2014; Kohler and Nickel 2017; West and Bogers 2017). Instead, previous studies have mainly articulated the general logic of OI, described the success of some well-known cases, and examined the benefits of engaging external actors in new product development (e.g. Chesbrough 2017; Corral de Zubielqui et al., 2019; Henttonen and Lehtimäki 2017; Liem et al., 2019; Xie et al., 2016). However, these success stories have generally failed to acknowledge that OI can fade in its efficacy due to many technical and non-technical reasons (Bigliardi et al., 2020).

Discussion

     Opening up the innovation process to external knowledge exploration and exploitation remains a challenging task for many organizations (Chaudhary et al., 2022; Haim Faridian and Neubaum 2021; Naqshbandi et al., 2019; Saura et al., 2022). This study synthesized the limitations of OI highlighted in recent studies and further explained their effects through a case review. Our case review also offered new insight into the relationships between these limiting factors. By classifying the identified limiting factors at the strategy, process, and community levels, we developed a framework rendering the key OI success factors and their hierarchical relationships (Fig. 2). The case study allowed us to recognize two groups of strategic decisions that could make or break OI initiatives and their design and implementation decisions. At the process level, OI success depends on both operational and technological decisions. At the community level, community readiness and community development are two critical dimensions of OI success.

Abstract

When foreign MNC subsidiaries commercialize their products and services on foreign markets, they oftentimes rely on new marketing approaches such as a new pricing model adapted to local customers and competitors. Since MNC subsidiaries typically suffer from “liabilities of foreignness”, they depend on skilled marketing professionals who possess a deep understanding of host country markets to implement these marketing innovations. However, the value that these individuals can create for MNC subsidiaries vis-à-vis domestic firms and under which host country market conditions their B2B marketing skills are most valuable is poorly understood. We integrate mechanisms from research on value creation through marketing innovation in MNC subsidiaries into strategic human capital theory and predict higher value creation to translate into salary premiums for these individuals compared to when they would work for domestic firms. Moreover, we argue that these salary premium effects depend on the innovativeness of the host country competition which challenges MNC subsidiaries and makes marketing innovation even more salient. We test and support our hypotheses using employer-employee data for 25,374 marketing professionals from 2010 to 2012 in Denmark. The findings have broad relevance for the management of strategic human capital management in the creation of marketing innovation.

Introduction

Marketing capabilities are foundational for the international success of industrial firms since they enable them to find, attract and maintain customers outside of their home countries (Samiee, Katsikeas, & Hult, 2021). A central pillar of such marketing capabilities are skilled marketing professionals who can design, deploy and refine successful marketing strategies (Moorman & Day, 2016). Particularly in foreign subsidiaries of Multinational Corporations (MNCs) that seek to commercialize their products and services abroad, marketing professionals help to accumulate specific knowledge about host country markets and to build professional networks with industrial firms through which they can channel this knowledge to decision makers at MNC headquarters. As these products and services constitute new offerings on host country markets with different degrees of novelty vis-à-vis domestic competitor offerings, marketing professionals help to build three essential B2B marketing capabilities (Mora Cortez & Hidalgo, 2022): market segmentation and targeting (e.g., Ulaga & Chacour, 2001), adaptation of the marketing mix, for example by implementing a new pricing model that fits with host country customs (e.g., Grimpe, Sofka, Bhargava, & Chatterjee, 2017), as well as development and selection of new products to be marketed abroad (e.g., Cooper & Kleinschmidt, 1987).

Conclusion

The scope of the research presented here is broader than what fits into a single study, suggesting promising avenues for new research projects. These opportunities occur in several areas.

First, we establish that marketing professionals create value, particularly for foreign subsidiaries, and that this value translates into salary premiums. While our focus on marketing professionals is useful to build a theoretical rationale that connects the human capital that these individuals hold with the resources and specific requirements of foreign subsidiaries versus domestic firms, it conceals the heterogeneity in marketing professionals’ tasks and competences. Specifically, some subsidiaries may be particularly reliant on the individuals’ skills and expertise in local customer interaction while others are especially challenged to coordinate the local marketing approach with the global headquarters. We believe that dedicated research could better uncover many of the processes that underpin various forms of value creation.

Second, our empirical analysis predicts higher salaries as a reflection of higher value that marketing professionals can create when they work for the subsidiary of a foreign MNC subsidiary vis-à-vis a domestic firms. We are however limited in the extent we can actually observe the processes leading to value being created. Future research could look in more detail into these processes which create value for firms, particularly when individuals are newly hired. Relevant aspects would include mechanisms at the level of the organization related to the flow of knowledge or the composition of teams but also the career trajectories of individuals when it comes to promotion or retention.

Third, our analysis relies on a matching approach for isolating the salary effects of working for a foreign subsidiary vis-à-vis a domestic firm. While the matching approach accounts for the selection of employees into MNC subsidiary employment, it would be interesting to better understand, which factors lead marketing professionals to consider an MNC employer in the first place and what role the host country industry contingencies play for the decision of individuals to work for the subsidiary of a foreign MNC or a domestic firm.

Abstract

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.

Introduction 

Perceived customer orientation (i.e., perception of a firm’s focus on customers and on satisfying their needs, Dean, 2007; Vaquero Martín, 2021; Walsh et al., 2009) and perceived firm innovativeness (i.e., perception of firm activities that result in novel, creative, and impactful offers for markets, Kunz et al., 2011; Kassemeier et al., 2022; Kim et al., 2015) are important sources of competitive advantage. Consumers consider both in purchase situations; both affect firm performance (Eisingerich and Rubera, 2010, Jean et al., 2017), and firm’s customer orientation is known to reinforce firm innovativeness (Jean et al., 2017, Kibbeling et al., 2013). Multinational corporations (MNCs), such as Zara, acknowledge the effects of perceived customer orientation and innovativeness by referring to consumer insights (Inditex, 2022). However, respective perceptions of an MNC may be valuable for consumer decisions in one country but not in another. Adidas examines differences in consumer perceptions in selected countries to identify consumer-driven opportunities and innovative approaches (Adidas, 2022, pp. 83, 88). However, MNCs can go further, including country differences to exhaust such insights across nations. This study analyzes whether and how national institutions impact the effects of perceived customer orientation and innovativeness on product purchase intentions across 53 countries (the likelihood that consumers will buy products of an MNC in the future, van der Lans et al., 2016). We contribute to research by examining country development and dimensions of national culture as important continuous moderators in the research field.

Conclusions 

This study finds that while country development and two dimensions of national culture strongly explain cross-national effects in perceived customer orientation, the stronger effects of perceived firm innovativeness do not depend on these contexts. We thereby offer a theoretical complement to past research, which has only assumed a role for national institutions. We look forward to further research linking institutions and consumer perceptions of customer orientation and innovativeness.

Abstract

The development and diffusion of sustainable innovations are of interest to various public and private sector actors. The diffusion of sustainable innovations into value networks facilitates and is facilitated by the change of markets towards sustainability; however, this interaction needs further investigation. We examine how combinations of value network actors’ intentions and activities affect market change for a sustainable innovation We empirically explore market change related to introducing bioplastics into plastic food packaging value networks. We increase the understanding of market change for a sustainable innovation by showing how not only the actors with direct intentions to support the innovation but actors and activities indirectly related to the sustainable innovation contribute to market change. Such indirectly supportive activities focus on broader sustainability aims and can, for example, change market representations, practices, and norms in favor of the sustainable innovation. We propose sustainability layers to understand the diverse sustainability focuses of actors and their relation to the market change in question. Specifically, we contribute to market change literature by broadening the examination scope beyond the most active actors driving market change for an innovation.

Introduction

Sustainable development and the need to protect the possibilities of the present and future generations to meet their needs have created a great societal interest in supporting the development and diffusion of sustainable innovations. Such innovations, including products, services, processes, and organizational and marketing methods, seek remarkable sustainability impacts (Aka, 2019). Sustainable innovations are complex and uncertain due to their systemic and multipurpose nature (Pellegrini, Annunziata, Rizzi, & Frey, 2019), and they engage different stakeholders (Longoni & Cagliano, 2018). Even though involving such stakeholders is seen as essential to promote sustainable innovations (Ayuso, Rodriguez, Garcia-Castro, & Ariño, 2011), these actors may have differing views and interests regarding value created through the innovation, as well as on the division of risks and responsibilities (Vleter, Bitzer, Bocken, & Kemp, 2020).

Conclusions

5-1- Theoretical contributions
The present study has examined how the value network actors’ intentions and activities affect the market change for a sustainable innovation. To answer the research question, the study first identified the relevant actors, their primary intentions (offensive or defensive) regarding the market change, and ten major activities contributing to the market change. It was analyzed whether the activities are driven by individual or collective, and present or future intentions. Then, the market changes resulting from those activities were presented.

This study offers three significant contributions to the existing literature. First, the study contributes to research on market change (Baker et al., 2019; Flaig et al., 2021; Kindström et al., 2018; Kjellberg et al., 2015; Nenonen et al., 2021; Ottosson et al., 2020) by revealing the importance of actors and activities that only indirectly support the market change for the sustainable innovation. The present study identified that there might not be many actors in the value network whose primary intention is to directly support the market change for a particular sustainable innovation. However, many actors indirectly support the market change by focusing on broader sustainability aspects than those represented by the specific innovation. This supports our study’s basic assumption that it is important to look beyond the “active shapers” with a direct link to the innovation. Also, the study revealed that indirectly supportive activities create various kinds of market changes, quite similar to changes created by directly supportive activities. The set of only indirectly supportive activities is small (educating and changing offerings and operations to be more sustainable) but crucial for changing the market in favor of the sustainable innovation. Especially we identified these indirectly supportive activities to change practices, norms, and representations towards sustainability, thus also supporting the market change for the sustainable innovation. It has been noted that networks of varied actors and activities can contribute to the commercialization of innovations (Aarikka-Stenroos, Sandberg, & Lehtimäki, 2014). We extend that examination to the sustainable innovation context and look at market change.