This study investigates the impact of three institutional pressures, namely government, customer, and competitor pressures, on the environmental and operational performance of firms. These three institutional pressures are examined by implementing green supply chain management, considering the role of top management and studying social capital between buyers and suppliers in the supply chain. Data were collected through an electronic mail survey from buyer firms in the manufacturing industry in Korea. With 241 complete and usable responses, we used structural equation modeling to test our hypotheses. Our findings revealed that the majority of our hypotheses were supported, which is in line with the existing literature. However, the impact of coercive pressure on top management support and the impact of structural social capital on performance were found to be insignificant. The major contribution of our study is that it broadens the framework of green supply chain management (GSCM) by integrating major and recent constructs in the GSCM theory, while also providing instructive managerial implications through empirical evidence.

Research Findings/Insights: Using a manually collected sample of PCODs in Korean chaebol firms, we find that larger, high-performing, less volatile firms with a larger board and higher divergence between voting rights and cash flow rights are more likely to appoint PCODs in the next year. We also report that firms with a high number of PCODs exhibit better operating performance and enjoy lower risk. On the other hand, we find evidence of weak monitoring ability by PCODs. Overall, we suggest that the number of PCODs correlates positively with firm performance, and that the value effect of PCODs increases with the importance of internal trade among group affiliates, the existence of inside directorship by controlling shareholders, and potential settlements from pending litigation. We further differentiate between PCODs and find that former government officials as PCODs drive our findings.Theoretical/Academic Implications: This study contributes to corporate governance knowledge by revealing the relationship between PCODs and firm performance via an empirical inquiry into the role of PCODs on the board. As the controlling shareholders of Korean chaebol firms obtain greater private benefits of control, and such firms may face active government involvement in curbing controlling shareholders' rent extraction, we examine the role and effects of PCODs in these situations and find evidence of the PCOD's value-enhancing effect. We also complement and extend prior studies by providing more direct mechanisms through which PCODs can add value above and beyond firms' ownership structure. Additionally, we expand the concept of political connection by analyzing outside directors' human and social capital from the resource dependence theory perspective. Our attempt complements prior research's exclusive focus on connections of large shareholders or top executives to political parties and is more comprehensive in illustrating the firm's dynamic business environment.Practitioner/Policy Implications: The results of our study are potentially useful to regulators, who will benefit from an understanding of how the presence of PCODs on boards affects firm performance. In particular, our results suggest that in countries where recent reforms aim to improve minority investor protection and market confidence, regulators should consider the composition of outside directors as well as explicit board independence. The results of our study may also be useful to investors, financial analysts, and auditors, as they highlight the importance of considering specific features of board composition when assessing firms' future operating performance and risk mechanisms.

No abstract

No abstract

No abstract

Though sustainability exists as major objective of pursuing innovation, the effect of it on innovation performance is still unanswered. While the outcome of innovation should consider both input and output, moreover, studies on sustainable innovation are yet to consider the overall efficiency, but rather the performance itself. To fill the gap between the effect of sustainability as the objective of innovation and its innovation performance, and to bridge the hole between the outcome of sustainable innovation and its efficiency, we analyze the relationship between sustainability as innovation objective and innovation efficiency. We use 441 manufacturing companies in Korea from 2016 KIS data, and perform the data envelopment analysis (DEA) method to calculate efficiency score of each firm and tobit regression analysis to investigate the effect of sustainability as an objective of innovation on innovation efficiency. The results show that the objective of 'environmental improvement' negatively affects innovation efficiency, while 'safety improvement' positively affects the efficiency. On the contrary, the effect of 'material and energy reduction' as an objective of innovation on innovation efficiency is not verified. The implications, limitations, and guidelines for future research are presented.

No abstract

No abstract