Employee domain and non-financial performance: the moderating effect of digital reputation

Abstract

Purpose The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation and ambidexterity) are used to identify an innovative employee domain that influences a firm’s non-financial performance. Digital reputation – i.e. the set of stakeholders’ sentiments toward the company’s digital footprint – is observed as a moderating variable able to explain where and when the innovative employee domain impacts the non-financial performance. Design/methodology/approach Using a sample of firms listed on the Fortune 500 list in the period 2015–2018, this study pursued both a qualitative and quantitative analysis. First, content analysis is carried out through a non-financial report-based operational model to operationalize the innovative domain. Second, a regression and moderator analysis are conducted on optimized panel data. Findings Consistent with previous literature, the results show that the employee domain positively impacts a firm’s non-financial performance. It was found that digital reputation operates as a moderator in this relationship. Originality/value This study contributes to the theoretical debate on CS by introducing a new concept relevant to an employee domain of exploration, exploitation and ambidexterity. It enriches the innovation debate by providing a new perspective on how firms can balance exploratory and exploitative innovation strategies in the employee domain to enhance non-financial performance. Finally, it provides a novel definition of digital reputation.

When stakeholder orientations matter: Modelling employee orientation, shareholder orientation and supply chain orientation as necessary and sufficient conditions for firm performance

“…For the direct relationships, the relationship between employee orientation and firm performance was found to be significant, which supports the findings of reference [ 8 , 12 ], and [ 13 ]. However, the relationship between shareholder orientation and firm performance was also not significant, which is inconsistent with the findings of reference [ 6 ] as well as reference [ 53 ].…”

“…Yet, achieving this delicate balance among these three orientations has not been easy. Supply chain managers' report mixed perceptions of how employee orientation, shareholder orientation and supply chain orientation contribute to a firm's performance [ [9] , [10] , [11] , [12] , [13] ].…”

Navigating turbulent waters: The impact of business continuity management (BCM) practices on financial and nonfinancial performance of tour operator companies

“…On the other hand, NFP evaluates characteristics such as quality, flexibility, delivery duration and innovation, since these contribute to organizational long‐term success. Nevertheless, other researchers like Hasan et al (2023), Sayed et al (2022) and Schena et al (2022) agreed that NFP should also be evaluated based on the ability to minimize unplanned disruptions, improve reputations, achieve competitive advantages, customer satisfaction and confidence and the ability to sustain its operational stability. Similarly, Pires and Alves (2022) asserted that nonfinancial indicators are the most appropriate and effective for improving organizational performance in an unpredictable context.…”

The role of digital technology and digital innovation towards firm performance in a digital economy

“…The findings demonstrate how the employee domain has a favorable impact on a company's nonfinancial performance. In this interaction, digital reputation acts as a moderator (Schena et al, 2022). Digital platforms have a positive and significant impact on the supply chain's ability.…”