The objective of the study is to investigate the impact of female representation on boards and female CEOs on firms’ sustainable performance in the context of an emerging economy. We also introduce the CEO duality as a moderator variable between sustainable firm performance and board gender diversity. For this purpose, the study uses a panel data sample from 2005 to 2020 for non-financial listed firms in Pakistan. We use the firm’s operational self-sufficiency for the sustainable performance of firms. For robustness, the study also uses other accounting-based and market-based proxies. We apply the static (fixed and random effect) and dynamic panel estimation (GMM) techniques to deal with the heterogeneity and dynamic endogeneity issues in panel data estimation. The finding shows a significant positive impact of female directors on board and female CEOs on sustainable performance, whereas CEO duality does not moderate this relationship. Furthermore, we find that CEO duality has a significant negative impact on firms’ sustainable performance, which supports the agency theory hypothesis. The study also controls corporate board level factors, including board size and board independence, and uses leverage, firm size, capital expenditure, and tangible assets as firm-level control. The results also reveal that board size and board independence have a significant positive impact on firms’ sustainable performance. Furthermore, firm size, tangibility, and firm age have a significant positive, whereas leverage and capital expenditure have a negative impact on firms’ sustainable performance. Finally, the study has policy implications for stakeholders.
23 January 2024 in Leadership & Organization Development Journal
Purpose: Abusive supervision (AS) provides insights into the darker aspects of leadership behavior and its effects on employees. Understanding and addressing AS can contribute to creating healthier work environments and promoting employee well-being. The effect of abusive leadership (AS) on counterproductive work behaviors (CWB) in nursing staff is examined through the theoretical lens of the social exchange theory.Design/methodology/approach: Data were collected from 302 nursing staff working at public and private hospitals through a self-administered questionnaire. Measurement scales were adapted from the literature and the data were tested for validity and reliability before performing hypotheses testing through structural equation modeling in SmartPLS 4.0.Findings: AS positively affects CWB, and psychological contract breach mediates this relationship. However, employees with high Islamic work ethics (IWE) are less concerned with supervisors' dysfunctional behaviors and pay less attention to them; thus, IWE buffers the effect of AS on CWBs.Originality/value: A positive and supportive organizational climate is crucial for attracting and retaining skilled healthcare professionals. When healthcare professionals are subjected to abusive behaviors, their ability to share knowledge, adopt safety protocols and provide the best patient care may be hampered. Therefore, addressing AS in hospitals is vital to promoting a positive work environment, enhancing employee well-being and improving patient care.
7 January 2025 in Leadership & Organization Development Journal
Purpose: This study investigates the influence of paradoxical leadership on employee transformative learning in higher education institutions (HEIs). Based on paradox theory, this research examines how a paradoxical mindset mediates this relationship and explores the moderating role of employees’ moral values in developing a paradoxical mindset and fostering transformative learning.Design/methodology/approach: The research adopted a quantitative approach. In three phases, data were collected from 411 randomly selected faculty members of HEIs in Pakistan to assess their perceptions of paradoxical leadership, followers’ paradoxical mindset, moral values and transformative learning outcomes. Structural equation modeling was employed for analysis in AMOS26.Findings: The findings reveal paradoxical leadership’s positive and significant impact on transformative learning, mediated by developing a paradoxical mindset. Moral values positively moderate the relationship between paradoxical leadership and developing a paradoxical mindset. However, the moderating effect of moral values on the link between a paradoxical mindset and transformative learning was insignificant.Practical implications: The study suggests that organizations, particularly HEIs, should cultivate paradoxical leadership to navigate inherent tensions and contradictions, fostering an environment conducive to transformative learning. Developing a paradoxical mindset among employees is crucial for enhancing adaptability and learning, with moral values playing a pivotal role in amplifying the effectiveness of paradoxical leadership.Originality/value: This study contributes to the literature by providing empirical evidence on the mechanism through which paradoxical leadership influences transformative learning. It extends paradox theory to the context of transformative learning, highlighting the importance of cognitive and ethical dimensions in leadership and learning processes within HEIs.
Background: Paradoxical leadership and alignment between innovation culture and organizational goals are crucial for successful digital transformation. Leaders should balance stability with innovation and foster an agile environment conducive to transformation. Objective: This study aims to investigate the impact of paradoxical leadership on digital transformation, using dynamic capability theory to analyze the roles of organizational agility and innovation culture. Methods: Data was collected in two-time intervals from 258 employees involved in DT initiatives across various sectors in Pakistan. The study utilized PLS-SEM to test the hypothesized relationships. Results: The findings confirm that paradoxical leadership significantly enhances organizational agility, which in turn positively influences digital transformation. However, contrary to existing literature, the study reveals that an innovation culture, underdeveloped or misaligned with organizational goals, can weaken the positive effect of organizational agility on digital transformation. Conclusions: The study underscores the importance of adaptive leadership and supportive organizational culture in driving digital transformation, particularly in developing regions, where these factors can significantly impact social and economic development. The insights are valuable for leaders and policymakers striving to overcome digital transformation challenges in similar contexts.
19 March 2023 in Review of Applied Management and Social Sciences
For the purposes to finance their business operations, firms have incentives to engage in corporate tax avoidance activities when managerial incentives increase as compared to managerial costs. These activities are significantly high when firms are inthe financial distress zone. The Covid-19 financial crisis (CFC) provides significant findings on whether corporate tax avoidance hasa significant difference from the pre-Covid-19 tothe post-Covid-19 financial crisis, whether a firm’s management is obligated to engage aggressively with corporate tax avoidance. This research aims to investigate the impact of financial distress on corporate tax avoidance during the Covid-19 financial crisis. Based on a sample of 175 firms listed on PSX covering the period of 2010-2021. The study applies GMM dynamic approach with (static) fixed and random effect models to check the robustness of results. The finding of the GMM approach demonstrates that financial distress has a statistically significant and positive impact on corporate tax avoidance. Consistent with the cost-benefits analysis and risk-shifting behavior theories, firms engage more in tax avoidance, especially during financial distress. Moreover, CFC magnified the relationship between these variables, and firms investigated in the study face development suffer mostly in this globally and economically distressing period.
30 September 2021 in Journal of Business and Social Review in Emerging Economies
Purpose: As per agency theory prospective, board gender diversity enhances the corporate leadership structure which mitigates agency conflicts among stakeholders. Therefore, this study investigates the impact of female directors on board, and female CEOs on firm performance. We also uses board size, and board independence as board level control, while leverage, firm size, capital expenditure & tangibility as firm level control. Design/Methodology/Approach: The study uses a panel data starting from 2005 to 2020 on annual basis. To resolve endogeneity and unobserved heterogeneity problems in panel data analysis, study uses static (fixed effect, & random effect) and dynamic (GMM) estimation techniques in Pakistan. Findings: Result shows the positive impact of female directors on board and female CEOs on firm performance. These findings are robust under alternative measures of firm performance. Implications/Originality/Value: The study suggests that female representation and female CEOs are the important attributes to enhance firm performance. Additionally, females are performing a significant role through monitor and control for excellent corporate leadership structure. Furthermore, this is the first study of its kind which analyzes this relationship in the emerging equity market of Pakistan.