Editorial
Greetings from the Editors desk!
It is my pleasure to bring you the final issue of the year 2022, with its mix of articles. Volume 34, Issue 4, December 2022 would also be the final print issue of the journal. As of calendar year 2023, the journal will be brought out only in digital form, with free reader access to all published articles. The digital version of the journal can be read and downloaded from ScienceDirect® - https://www.sciencedirect.com/journal/iimb-management-review -
IIMB Management Review (IMR) is now a Gold Open Access journal, with the article processing charges (APC) borne by the Indian Institute of Management Bangalore (IIMB), on behalf of the authors.
Following is a brief introduction to the contents of the issue.
In the recent past there have been many studies exploring negative leadership or toxic supervisory behaviour in organisations across multiple societies and industries. In “Abusive supervision and coping strategies among Indian professionals”, Sajeet Pradhan, Swati Agrawal, and Shailendra Nigam study abusive supervision’s direct and indirect effects (via coping strategies) on burnout. In addition, they study the influence of individual power distance orientation on employees’ psychological distress, such as burnout, at both high and low levels of power distance. To test the hypotheses proposed, cross-sectional survey data were collected from executives working in nine Indian private organisations across various industries. Data from the final sample of 294 respondents were analysed using SmartPLS.
In line with previous studies, this study reports a significant positive relationship between abusive supervision and burnout. Further, the results suggest that only avoidance of contact (with supervisors) and support seeking (both emotion-focused coping techniques) significantly mediate the positive relationship between abusive supervision and burnout. The findings suggested no significant difference between individuals having a high-power distance orientation vis-à-vis individuals having a low-power distance orientation.
Based on the findings, the researchers make several recommendations for organisations, including a strict zero-tolerance policy towards abusive supervisory behaviour, regular counselling sessions for employees as well as for supervisors, a peer or buddy support programme, among others, to provide immediate succour, and an external audit that would enable organisations to make significant changes in the right direction.
Sanjay Singh and Yogita Aggarwal cite studies that establish that
successful managers significantly use heuristics (simple thumb rules that guide managerial decisions about organisational performance) in their day-to-day business decisions. However, research also indicates that heuristics’ performance is highly contextual. Adopting a positive view of heuristics and hypothesising heuristics as emerging from the pioneering, innovative orientation of managers, in “Mediating role of innovation heuristics on the relationship between pioneering innovative orientation and organisational performance: Insights from diverse stakeholders”, the authors report on two studies they conducted to analyse the relationship between pioneering innovative orientation, innovation heuristics, and organisational performance.
Study 1, containing a diverse sample of MBA interns, mid-level managers, and entrepreneurs yielded two factors, namely, search and adapt heuristics (SAH), and fast and frugal heuristics (FFH). The two innovation heuristics significantly mediated the relationship between the pioneering innovative orientation (PIO) and perceived organisational performance. Results of Study 1 offer support for the hypothesised model. Furthermore, a comparative analysis of multiple mediators suggested that SAH plays a comparatively stronger mediation influence than FFH between PIO and the measures of organisational performance. A stronger mediation role of SAH implies that organisational outcomes are perceived better when PIO is adaptive rather than merely fast and frugal in implementation.
Study 2, based on a different sample of senior business leaders and entrepreneurs, further supported the hypothesised relationship suggesting that the study variables PIO, SAH, and FFH are positively related to the financial performance of the organisations. The study findings add to the managerial heuristic literature and could stimulate the exploration of more innovation heuristics in the future.
Organisational behaviour researchers have long investigated complex phenomena leading to enhanced performance outcomes. Extant management literature suggests a common element of the human psychological state – the importance of being absorbed and highly attentive towards the present moment and task at hand. In organisational settings, mind wandering is generally associated with negative connotation with respect to performance-related outcomes. However, as the authors Rushabh Trivedi, Murugan Pattusamy underline, the human mind is not always attentive and is likely to deviate from the existing moment. Research also indicates that employees cannot direct their attention towards a specified task all the time. Interestingly, parallel lines of research demonstrate that daydreaming is not always detrimental and can contribute towards positive ends. In “Performance pressure and innovative work behaviour: The role of problem-oriented daydreams”, the authors aim to empirically test and advance the theory of mind wandering and understand its impact on organisational outcomes. They focus on a specific form of daydreaming, known as problem-oriented daydreaming (POD) and link it with innovative work behaviour (INWB). Problem-oriented daydreams involve thoughts and images about the problems faced by individuals in their day-to-day work and/or non-work activities. POD involves a period of deep engagement where the mind unconsciously searches for solutions to the existing problems, irrespective the task one is currently performing. In addition, the authors examine a potential driver behind the occurrence of POD. Their research considers daydreaming as a critical mechanism through which employees experiencing performance pressure might still show a positive work outcome i.e., INWB.
They test their conceptual model using structural equation modelling (SEM) techniques with cross-sectional survey data collected from a sample of 450 academicians in India. The survey instrument is a self-reported online questionnaire.
The results find a significant relationship between performance pressure and POD. Further, POD was positively related with INWB and also mediated the relationship between performance pressure and INWB. Results supported claims of previous studies that POD has a strong association with creativity. An important element of INWB is generation of novel and useful ideas which is directly linked with problem-oriented or imaginative daydreaming. The study also found desired results for POD as mediator between performance pressure and task performance in general, thus further strengthening the theory of mind wandering. The results hold while controlling for gender and institutional tenure for the hypothesised model.
The role of intangibles, especially brands, for long-term financial success of companies has been highlighted in the literature and research has revealed a growing interest in brand valuation and reporting among firms. In “Impact of financial brand values on firm profitability and firm value of Indian FMCG companies”, N. Niyas and V. Kavida aim to develop an appropriate financial brand valuation model in the Indian context. In their study, they review the renowned brand valuation models after which they suggest an appropriate measurement model for the settings of the Indian economy and Indian databases. The financial brand values of 26 fast-moving consumer goods (FMCG) companies in the BSE 500 Index have been valued using the proposed model. The estimated value has been used for analysing the contemporaneous and time-lagged effect of brand value on profitability, and on firm value. The method used for analysis is the panel data regression method. Financial brand value, prestige driver, loyalty driver, extension driver, return on assets, return on equity, return on capital, stock price, and Tobin’s Q were the major variables used in the different models developed.
The brand value showed a contemporaneous positive significant relationship with all the profitability measures collectively. FMCG companies with strong brand values gain increased profit. Brand value drivers (prestige driver, loyalty driver, and extension driver) did not significantly affect profitability. Further, price advantage, customer loyalty, and overseas presence, and expansion capacity of FMCG brands do not impact the company’s profitability. A positive contemporaneous relationship between brand value and firm value was also discovered. A higher brand value increases the stock price of FMCG companies. The time-lagged effect of brand value on profitability and firm value up to three years was analysed and the result showed that there is a positive one-year lagged effect of brand value on firm profitability measures along with a contemporaneous effect. There is no significant effect found in two-year and three-year lags. The results also show that the one-year lagged brand value effect is higher than the contemporaneous effect on firm value. Although brand value showed a contemporaneous effect on stock prices, the time-lagged effect of brand showed a negative relationship with the stock price. Practical implications of the findings for FMCG firms, investors, investment analysts and managers, the government, and other policymakers are discussed.
“The effect of strategic commitment and supply chain collaboration on operational and innovation performance”, by Mohammed Belal Uddin focuses on the effects of strategic commitment (SC) and supply chain collaboration (SCC) on operational performance (OP), and innovation performance (IP) and considers their individual and joint effects on OP and IP.
The author emphasises that SC and SCC are vital issues for the operational and innovation performance of the firm from a supply chain perspective. SC refers to commitment regarding pricing, costing, and sharing information and resources with supply network partners to attain supply chain effectiveness and competitive advantage. OP and IP are a representation of overall performance. While OP focuses on product performance and customer requirements and satisfaction, IP emphasises the innovation of product and process, and organisational and strategic issues.
The study was conducted in the context of firms in the pharmaceutical industry in Bangladesh. The following research questions are addressed: (i) How does SC directly affect SCC, OP, and IP? (ii) How do SC and SCC jointly affect OP and IP? (iii) How does IP affect OP? Exploratory factor analysis and structural equation modelling were applied to test data collected through a self-controlled questionnaire survey.
Results show that SC has a positive effect on SCC. SC supports the focal firm in building a shared and trusting relationship with its partners by incorporating them into strategic supply chain management orientation. The findings suggest that SC also promotes OP and IP. SC helps to build long-term cooperation between firms and their partners, which intensifies the willingness to enhance OP through process improvement. SC helps to establish belonging and a trusted relationship between the partners in a supply chain, promoting the interest and capability to implement innovative practices. SCC has a direct impact on IP and an indirect effect on OP. IP has a substantial direct influence on OP. The study demonstrates that SC and SCC both have a direct and indirect influence on firm performance that ultimately ensures business success. Implications for managers are discussed.
In “Adoption of personal service robots in India”, Jaydeep Mukherjee observes that while consumer adoption of personal service robots (PSR) is likely to grow rapidly, compared to consumers in developed economies, consumers in large emerging markets such as India face greater uncertainty and diverse challenges in adopting really new products (RNPs) such as PSR. In his study, Jaydeep Mukherjee develops and tests a comprehensive model for consumers’ intention to adopt artificial intelligence-powered PSRs in India. The study builds on the stimulus-organism-response (S–O–R) framework by integrating the dual-factor theory of inhibitors and enablers in the adoption model. Additionally, the impact of the perceived usefulness and risk of the product, subjective norms such as trust, and resistance bias on the consumer's adoption intention are studied. Four different mutually exclusive and collectively exhaustive PSR applications were studied. Data were collected from 400 consumers in India, using existing validated scales from the literature. Structural equation modelling and path analysis were used to test the model fit.
The empirical findings support the S-O-R and dual-factor theory and enhance them by incorporating the different enabling and inhibiting factors influencing customers' adoption of novel technology. Findings suggest that consumers’ intention to adopt a personal service robot is based on perceived usefulness and risk, mediated by resistance bias. Contributions to the growing body of theoretical work and marketing applications are discussed.
Addressing the issue of non-performing loans, Rohit Prasad and Yogesh B. Mathur underscore the importance of creating a well-functioning institutional mechanism for transferring distressed debt out of the balance sheets of banks, which includes the creation of an entity or a set of entities to which the assets are transferred. The entities could take the form of a “bad bank”, an asset reconstruction/management company (ARC/AMC) or a special purpose vehicle (SPV). In “Market design principles for the securitisation of non-performing loans”, their focus is on creating a market-based mechanism driven by private capital to affect a large enough transfer of distressed assets out of the banking sector, at values that are reflective of “true value”.
They aim to create a theoretical model for gains to trade between banks and ARCs and use the model to design markets where both the value of the NPL and the level of risk transfer from the bank to the ARC are discovered through the market mechanism. They attempt to address the nuances of the securities market including whether the NPL is partly or entirely securitised, and whether banks continue to partly or wholly own the securities or whether the securities are entirely owned by the ARC.
Based on their analysis, they conclude that it is possible to create a market for NPLs where the value of the NPL as well as the level of risk transfer out of the banking sector emerges as an outcome of market activity. They use the theoretical model to generate insights for the Indian case, and propose a new design for NPL auctions. Their policy recommendations include addressing old NPLs through a “national bad bank”; empowering the ARC to carry out corporate reconstruction; and creation of a secondary market for security receipts.
The IMR Doctoral Conference 2023 will be held on 3 & 4 February 2023, in physical mode on the IIMB campus. We are also considering a limited hybrid model in order to facilitate the online participation of invited speakers, doctoral students, and delegates. For more details about IMRDC 2023, please visit: https://www.iimb.ac.in/imr-doctoral-conference
With best wishes to all readers for a very happy and prosperous new year 2023!
Jishnu Hazra
Editor-in-Chief
IIMB Management Review
E-mail address: eic@iimb.ac.in