The effects of perceived business uncertainty, external consultants and risk management on organisational outcomes

Purpose: The purpose of this paper is to investigate the relations between perceived business uncertainty (PBU), use of external risk management (RM) consultants, formalisation of RM, magnitude of RM methods and perceived organisational outcomes. Design/methodology/approach: This paper is based on a questionnaire survey of members of the Chartered Institute of Management Accountants in the UK. Using AMOS 17.0, the paper tests the strength of the direct and indirect effects among the variables and explores the fit of the overall path model. Findings: The results indicate significant and positive associations exist between the extent of PBU and the level ofRMformalisation, as well as between the level ofRMformalisation and the magnitude of RMmethods adopted. The use of externalRMconsultants is also found to have a significant and positive impact on the magnitude of RM methods adopted. Finally, both the extent of RM formalisation and the magnitude of RM methods adopted are seen to be significantly associated with overall improvement in organisational outcomes. Research limitations/implications: The study uses perceptual measures of the level of business uncertainty, usage of RM and organisational outcomes. Further, the respondents are members of a management accounting professional body and the views of other managers, such as risk managers, who are also important to the governance process are not incorporated. Originality/value: This study provides empirical evidence on the impact ofRMdesign and usage on improvements in organisational outcomes. It contributes to the RM literature where empirical research is needed in order to be comparable with the traditional management control system literature.

Electronic commerce adoption:a study of business-to-business practice in Saudi Arabia

Electronic commerce (e-commerce) has become an increasingly important initiative among organisations. The factors affecting adoption decisions have been well-documented, but there is a paucity of empirical studies that examine the adoption of e-commerce in developing economies in the Arab world. The aim of this study is to provide insights into the salient e-commerce adoption issues by focusing on Saudi Arabian businesses. Based on the Technology-Organisational-Environmental framework, an integrated research model was developed that explains the relative influence of 19 known determinants. A measurement scale was developed from prior empirical studies and revised based on feedback from the pilot study. Non-interactive adoption, interactive adoption and stabilisation of e-commerce adoption were empirically investigated using survey data collected from Saudi manufacturing and service companies. Multiple discriminant function analysis (MDFA) was used to analyse the data and research hypotheses. The analysis demonstrates that (1) regarding the non-interactive adoption of e-commerce, IT readiness, management team support, learning orientation, strategic orientation, pressure from business partner, regulatory and legal environment, technology consultants‘ participation and economic downturn are the most important factors, (2) when e-commerce interactive adoption is investigated, IT readiness, management team support, regulatory environment and technology consultants‘ participation emerge as the strongest drivers, (3) pressure from customers may not have much effect on the non-interactive adoption of e-commerce by companies, but does significantly influence the stabilisation of e-commerce use by firms, and (4) Saudi Arabia has a strong ICT infrastructure for supporting e-commerce practices. Taken together, these findings on the multi-dimensionality of e-commerce adoption show that non-interactive adoption, interactive adoption and stabilisation of e-commerce are not only different measures of e-commerce adoption, but also have different determinants. Findings from this study may be valuable for both policy and practice as it can offer a substantial understanding of the factors that enhance the widespread use of B2B e-commerce. Also, the integrated model provides a more comprehensive explanation of e-commerce adoption in organisations and could serve as a foundation for future research on information systems.

E-business planning and analysis framework

This chapter reports on a framework that has been successfully used to analyze the e-business capabilities of an organization with a view to developing their e-capability maturity levels. This should be the first stage of any systems development project. The framework has been used widely within start-up companies and well-established companies both large and small; it has been deployed in the service and manufacturing sectors. It has been applied by practitioners and consultants to help improve e-business capability levels, and by academics for teaching and research purposes at graduate and undergraduate levels. This chapter will provide an account of the unique e-business planning and analysis framework (E-PAF) and demonstrate how it works via an abridged version of a case study (selected from hundreds that have been produced). This will include a brief account of the three techniques that are integrated to form the analysis framework: quality function deployment (QFD) (Akao, 1972), the balanced scorecard (BSC) (Kaplan & Norton, 1992), and value chain analysis (VCA) (Porter, 1985). The case study extract is based on an online community and dating agency service identified as VirtualCom which has been produced through a consulting assignment with the founding directors of that company and has not been published previously. It has been chosen because it gives a concise, comprehensive example from an industry that is relatively easy to relate to.

New perspectives on the governance of executive compensation:an examination of the role and effect of compensation consultants

We develop a multi-theoretic approach, drawing on economic, institutional, managerial power and social comparison literatures to explain the role of the external compensation consultant in the top management pay setting institutional field. Taking advantage of recent disclosure requirements in the UK, we collect data on compensation consultant use in 232 large companies. We show that consultants are a prevalent part of the CEO pay setting scene, and document evidence of all advisor use. Our econometric results show that consultant use is associated with firm size and the equity pay mix. We also show that CEO pay is positively associated with peer firms that share consultants, with higher board and consultant interlocks, and some evidence that where firms supply other business services to the firm, CEO pay is greater. © 2009 Springer Science+Business Media, LLC.