Sustainable components of leadership effectiveness in organizational performance

Purpose – The objective is to describe a selection of sustainability components of leadership effectiveness in organizational performance.
Design/methodology/approach – The paper is based on a conceptual discussion. Findings – The paper contributes to descriptive models that address sustainability components of leadership effectiveness in organizational performance. The study highlights some common views that exist in the management literature and in prosperous management practice related to the direct impact of the relationship in organizational performance between leadership and effectiveness. In fact, it also highlights the critical or sceptical views of leadership effectiveness in organizational performance raised in the literature. Research limitations/implications – The paper contends that the actual leadership effectiveness in organizational performance varies over time and across contexts. At times, the achievement in organizational performance is the outcome of prosperous and conscious leadership, while it at other times may be the outcome of poor and deficient leadership. The topic at hand is positioned and limited to the interface that may describe and explain the connection between these two views. Furthermore, it is limited to corporate decision making and business behaviour in relation to leadership effectiveness and organizational performance. Practical implications – The leadership of an organization need not only to be successful today, but they also need to be successful tomorrow to stay in control and to flourish. Quality control and quality assurance are no longer enough for most organizations. They need to build an awareness of the sustainability components into processes of their management and business practices (i.e. internal and external ones) in order to be judged as successful in corporate decision-making and business behaviour in organizational performance in the long term. Originality/value – The principal contributions of the study are a model of timely leadership effectiveness, a model of contextual leadership effectiveness, and a typology of leadership effectiveness in corporate decision-making and business behaviour. These contributions provide theoretical and managerial ideas and insights into the sustainability components of leadership effectiveness in organizational performance.

The marketing audit and organizational performance an empirical profiling

This study investigates the use of strategy to address changes in business performance. It suggests the use of the marketing audit as a facility that can assist with the establishment, maintenance, and management of a market orientation strategy. The practice of the marketing audit and its perceived benefits are examined, and their relationships with change in business performance are investigated. The results indicate a positive association between the usage of the marketing audit and increase in market share, and a stronger increase in market share than increase in overall financial performance.

Linking environmental uncertainty to non-financial performance measures and performance : a research note

Several previous research studies have reported mixed results concerning the direct association between non-financial performance measures and  performance. The presence of environmental uncertainty on this relationship has not been established. This paper makes a contribution to this area by proposing that it is in conditions of environmental uncertainty that non-financial measures are most useful in improving organizational performance. It analyses empirical data from a sample of New Zealand manufacturing organizations to test the hypothesis that non-financial measures of performance would lead to improved organizational performance under conditions of increased environmental uncertainty. Multiple regression analysis of the data suggests that performance should be a declining function of the size of the ‘mismatch’ between an organization's environment and use of the different combinations of non-financial performance measures. Further, the paper concludes that prior mixed results may be attributed to the omission of environmental uncertainty.

Human resource practices, unionization and the organizational efficiency of French industry

Organizational performance improves through several channels, including changes in efficiency, innovation and technological change. Most of the extant research has focused on overall performance, often measured by partial measures of productivity, with little attention given to the components of performance. The aim of this paper is to analyze the impact of HR practices and unionization on one important channel - organization efficiency - as measured by technical and scale efficiency. Using French industry survey data, the paper shows that HR practices do influence efficiency, but this is moderated by the existence of unions. The results show a rather complex set of associations. We find robust results that show that in France, HR practices have a positive effect on scale efficiency but this effect is dampened in the presence of unions. On their own, HRpractices have no effect on technical efficiency. However, some of the results suggest that HR practices can exert a positive influence when combined with unions.

The world wide web in modern marketing's contribution to organisational performance

Purpose – The purpose of this paper is to provide a better understanding of the antecedents of organisational performance (OP), both financial and marketing, and the influence of holding a strategic market orientation (MO) where customer-base volatility is taken into account.

Design/methodology/approach – A sample of 167 marketing organisations in Australia was surveyed to test the hypothesised model. Structural equation modelling was employed in the data analysis.

Findings – Use of the world wide web (Web) reported by organisations in this study indicates that there is still separate use of the Web and that it has yet to be fully integrated into the marketing strategy of many organisations. The study finds that traditional marketing effort mediates the relationship between holding a MO and OP in terms of financial indicators.

Research limitations/implications – A major limitation of this study is that it surveys organisations from many industries rather than selected industries. This tends to mask some of the possible outcomes.

Practical implications – The findings in this study suggest that traditional and online elements of marketing effort each mediate the influence of holding a MO on OP, but differently. Innovation culture is found to influence both marketing practice and marketing performance, directly. A single measure of environmental turbulence – customer-base turbulence or churn – negatively affects marketing performance, and ultimately financial performance.

Originality/value – A major contribution of this study is the examination of use of the Web in marketing effort and how this usage influences financial and marketing performance.

Psychic distance : antecedents, retail strategy implications and performance outcomes

The authors propose a conceptual model of the psychic distance–organizational performance relationship that incorporates organizational factors (international experience and centralization of decision making), entry strategy, and retail strategy implications. The findings suggest that when entering psychically distant markets, retailers should adopt low-cost/low-control entry strategies and adapt their retail strategy to a greater extent than in psychically close markets. However, the authors find that such strategic responses have an adverse effect on performance. They find that international experience, psychic distance, entry strategy, and retail strategy adaptation are significant drivers of organizational performance and factors that determine critical success in international retailing.

Reflexive and critical views of leadership performance in corporate accomplishment : framework and illustration

Purpose – This paper intends to shed some light on the relationship between leadership performance and corporate accomplishment through the aid of complexity sciences. The objective is to describe leadership performance in corporate accomplishment using different teleological approaches.

Design/methodology/approach – The paper discusses the underlying criteria of the relationship between leadership performance and corporate accomplishment. Case illustration and narrative analogy are also provided.

Findings – The authors believe that the discussion highlights a potential downside of leadership performance in corporate accomplishment and its precision rarely highlighted in practice and literature.

Research limitations/implications – There is a reigning assumption in management practice that is based on the belief that a top-down approach of leadership performance in management and business practices is superior to the bottom-up approach. It proffers the assumed importance of strategic management issues, but neglects the knowledge, experience, competence and awareness inherent among employees at tactical and operational levels of business practices. It also proffers a mechanical view of employee performance and ignores the worth of the generation of ideas from subordinates in management and business practices that contribute to corporate achievements. Furthermore, it neglects the fact that it is not possible to know the future nor it is predictable.

Practical implications – The paper contends that the importance of top management tends to be inflated in respect to corporate achievements in the management/leadership literature. It also contends that it should be questioned as to whether the top management of corporations are largely responsible for the corporate results on which they attempt to justify their salaries and other benefits. Furthermore, the paper contends that it also should be questioned as to what extent corporate accomplishment may be derived from the performance of the top management in organizations.

Originality/value – The paper strives to contribute to the ongoing discussion of leadership performance in corporate accomplishment in various ways. The principal contributions are: a set of teleological sub-processes of leadership performance and a case illustration and narrative analogies of teleological leadership performance patterns, in respect to corporate accomplishment in management and business practices. These contributions provide theoretical and managerial ideas and insights to anticipate and avoid deficient or erroneous grounds of leadership performance evaluation in corporate accomplishment.

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.

Performance differences between entrepreneurial and non-entrepreneurial firms : extending the strategy-structure-performance paradigm

This paper extends the strategy-structure-performance paradigm to examine the performance differences between entrepreneurial and non-entrepreneurial electrical distribution firms. The results indicate that both entrepreneurial and non-entrepreneurial electrical distributors with an optimal strategy-structure alignment tend to have a higher organizational performance than those entrepreneurial and non-entrepreneurial electrical distributors without such an alignment. The results are examined and conclusions are offered. Finally, the implications for future research are set out, as are the limitations of the present study.

Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda

Purpose – The purpose of this paper is to synthesize relevant theoretical and empirical literature to develop propositions and suggest a research agenda on the antecedents and organisational performance implications of internal audit effectiveness.

Design/methodology/approach – The paper employs institutional theory and Karl Marx's theory of the “circuit of industrial capital” to synthesize relevant internal audit literature to develop theoretically justifiable propositions and highlight an operational research agenda.

Findings – Propositions and a research agenda are provided on potential antecedents of internal audit effectiveness and its possible association with company performance measured as rate of return on capital employed. Also, key variables are identified and operationalisation issues discussed.

Originality/value – As the extant literature does not provide a canon of internal audit effectiveness, the paper's originality is its argument that a positive association between compliance with standards for the professional practice of internal auditors and organisational goal achievement could serve as an approach to assess internal audit effectiveness. Furthermore, the use of the two theories in combination provides additional insights into identifying the antecedents of internal audit effectiveness and its measurement.

Integrated health impact assessment into the triple bottom line concept

This theoretical study explores the links between the Triple Bottom Line (TBL) concept and the principles of HIA and considers the potential role of HIA to provide a mechanism for integrating health concerns within a broader agenda of government and business. TBL is a framework linked to the broader sustainability agenda that underpins and reviews environmental, economic and social performance of organizations. In its simplest form, TBL acts as a tool for reporting to stakeholders/shareholders organizational performance and the nature of the impacts on the community. The links to HIA are clear as both seek to determine the impact (potential and actual) on the health and well-being of the population.

The study found that TBL can operate at four levels within organizations ranging from reporting through to full integration with the organization's goals and practices. Health is narrowly defined and there are tensions about how to undertake the social accountability functions. The study shows the potential role for HIA within the broader policy and accountability agenda. As health is one of the main outcomes of an organization's activities it needs to be taken into account at all levels of activity.

Strategic decision-making and emotions

Senior management decisions play a critical role not only in organizational performance but also in the competitiveness of Australia in the international arena. In this conceptual paper, I present a multi-level model of affect in strategic decision-making to understand the impact that emotions have on senior managements' decision-making processes. The aim of the model is to extent on current theory (specifically Affective Events Theory) to minimize the negative impact of emotions on decision-making to produce high quality decisions and, consequently, more effective and competitive organizations. Hypotheses, practical implications and future research opportunities are also discussed.

A creative twist: management theory, creativity and the arts

For many theorists and practitioners in the area of organizational theory, HRM, marketing and other domains of organization studies, organizational creativity is something to be distilled and managed as an element of organizational performance. The article argues, however, that this process of appropriation from the creative arts is subject to a number of problematic transitions. The article's starting point is the notion of creativity itself. Within the creative arts, the question of what constitutes creativity and its relationship to artistic practice is subject to considerable debate. This debate centers on the question of whether creativity represents an essentialist and inexplicable (even spiritual) component of artistic practice or whether creativity is a trait of work and cannot be attributed as a unique aspect of art. The mantra of creativity provides nothing more than a means to control individuals and provide them with a false hope that contributing to the success of business will provide a means to self fulfillment.

Strategic HRM in for-profit and non-profit organizations in a knowledge-intensive industry

This article examines the adoption of strategic Human Resource Management (HRM) by for-profit and non-profit knowledge-intensive health services (HS) organizations in the Australian context. Survey data collected from senior executives are used to test the relationships between a strategic HRM model and firm performance. Path analysis found that for HS firms, irrespective of whether for-profit or non-profit, adopting strategic HRM could increase organizational performance. Strategic HRM could be achieved through the cultivation of an external orientation to customers' demands and a commitment to employees. Building an external orientation with internal structural dimensions such as commitment to employees, allows HS organizations to develop a strategic HRM approach with human capital-enhancing HRM practices. Public and non-profit organizations in the HS industry facing or undergoing health sector reform need to be aware of both of these orientations in order to adopt strategic HRM and improve their performance.

Outsourcing of internal audit services in Australian firms : some preliminary evidence

Although internal auditing (IA) services have been traditionally performed in-house, organizations are increasingly outsourcing such services. Using a Transaction Cost Economics (TCE) perspective, this study examined the influence of several organizational-level variables on the decision to outsource or in-house their internal audit function. The study also identified the type of IA services that were likely to be out-sourced rather than in-housed, the extent to which incumbent external financial statement auditors participated in outsourced arrangements and the level of interaction between the internal audit provider and audit committees. The results have implications for auditor independence, corporate governance and organizational performance.