Purpose – The main goal of the article is to determine the mediating role of human resources management (HRM) outcomes in the relationships between shaping employee work engagement and job satisfaction (SEWE&JS) and company performance results and to establish whether there are any identifiable regularities in this scope in the pre-pandemic and pandemic period in the headquarters (HQs) and foreign subsidiaries of multinational companies (MNCs).
Design/methodology/approach – The empirical research included 200 MNCs headquartered in Central Europe. The raw data in the variables were adjusted with the efficiency index (EI) to capture the actual relations between the variables under study. The partial least squares structural equation modeling (PLS-SEM) was used to verify the research hypotheses and assess the mediating effects.
Findings – The research findings show that the HRM outcomes positively mediate the relationships between SEWE&JS and the company performance results. HRM outcomes turned out to be a stronger mediator between SEWE&JS and company performance results in finance and quality in the HQs during the pandemic. By contrast, in the local subsidiaries, they were a stronger mediator of the relationships between the results in innovativeness and quality during the pandemic.
Originality/value – In addition to confirming the results of some other researchers, the research findings also provide new knowledge. They determine the mediating role of HRM outcomes in the relationship between SEWE&JS and the three categories of company performance results, namely finance, innovativeness and quality. In addition, they identify certain regularities in the four studied contexts, which is a novelty in this type of research. A novelty is also the use of employee key performance indicators (KPIs) in the data analysis as the efficiency index in analyzing the effect of the variables under study. The value of the research is also the fact that it covers HRM in MNCs established in Central Europe, which, compared to MNCs from the Western world, is not a frequent subject of research

Purpose – I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.
Design/methodology/approach – To collect data, a survey among 500 Polish manufacturing companies was conducted. I used quantitative methods (structural equation modeling) to test several research hypotheses referring to a single supplier–customer relationship. Thanks to the use of multi-construct measurement of SIPD and supplier relationship resilience, the study provides detailed research results on the topic.
Findings – Collaborative practices implemented during SIPD increase procurement flexibility and decrease redundancy in the relationship with the involved supplier. Communication during SIPD increases supplier flexibility and procurement flexibility. Increased supplier flexibility and increased procurement flexibility in the relationship with the involved supplier as well as collaborative practices during SIPD positively impact company performance. I confirmed the indirect effect between communication during SIPD and company performance when the mediators are supplier flexibility and procurement flexibility. Decreased redundancy in relationship with involved supplier does not impact company performance.
Practical implications – Supply chain managers need to rethink SIPD practice to effectively ensure supply chain resilience (SCRES), especially in the face of the contemporary global crisis and black swans affecting the supplier base. My article provides important managerial insights into drivers of SCRES and company performance. Originality/value – To the best of my knowledge, this research is among the first to conclude that SIPD does not have an unequivocally positive or direct impact on supplier relationship resilience. The research fills the gap by analyzing the impact of SIPD on two main SCRES elements. The study examines supplier relationship resilience, understood as flexibility and redundancy elements, in a single supplier–buyer relationship perspective. Thus, the presented considerations go beyond the traditional understanding of flexibility and redundancy in supplier relationship management, that is through the prism of double or multi sourcing and having back up-suppliers.

Purpose – The authors analyzed the relationship between learning orientation (LO) and performance in micro, small and medium-sized enterprises (MSMEs) by investigating the moderating role of environmental dynamism to answer the need for systematic research of models between LO and firm performance (FP). Design/methodology/approach – The authors investigated the (in)direct relationship between LO and FP. The authors collected data from 182 MSMEs operating in technology parks (TPs) in Poland. The authors used two methods in the quantitative empirical research. The authors used linear regression models to test the hypotheses, which allowed for a global assessment of relationships among all analyzed variables. Dynamic capabilities (DCs) framework guided the study.
Findings – The study results show that FP benefits from LO-related behaviors. LO is an important stimulant of FP. Meanwhile, the authors did not classify market dynamism (MD) as a moderator of the LO-FP relationship.
Research limitations/implications – By design, the authors surveyed only MSMEs open to participate in the survey, which potentially limits generalizability. Furthermore, future researchers may consider other types of strategic orientations (SOs) to further explain the impact of multiple SOs on FP in specific industries. Originality/value – This article presents arguments that allow for recognizing LO as a strategic organizational factor shaping FP.

Purpose – The article investigates the patterns of asset impairment recognition in search of signs of “big bath” earnings management practices across an internationally diversified sample of public companies. It also elucidates the incentives that may underlie such practices and explores possible safeguards embedded in the existing corporate governance mechanisms.
Design/methodology/approach – The article applied static panel and binary logit models to an international firm-level panel dataset of 1045 public companies observed between 2003 and 2018.
Findings – Our empirical results suggest that recognition of asset impairment has no determinate impact on earnings volatility. Investigating the possibility of “big bath” earnings management practices, the authors found no impact of asset impairment recognition on total senior executive compensation in firms, which pay performance-based remuneration. The quality of corporate governance has appeared to impact the firms’ intertemporal proclivity to recognize asset impairment with those having the more entrenched and
management-controlled boards being more likely to time impairment recognition by delaying it during exceptionally good and exceptionally bad years. While generally unlikely, recognition of asset impairment in a period with a recorded negative operating performance is found to be closely associated with key executive departures.
Originality/value – The article corroborates the salient role of corporate governance mechanisms in shaping the intertemporal patterns of asset impairment recognition. The possible remedies to the phenomenon should be derived therefrom.

Purpose: This article aims to review critical thinking (CT) as a future skill in business.

Design/methodology/approach – The study employed two research methods: science mapping analysis based on bibliometric keyword co-occurrence data and systematic literature review following PRISMA guidelines. The application of two distinctive research methods meant that we could obtain a broad picture thematic overview as well as a detailed, fine-grained insight into the content of CT business research.

Findings – Research in CT in business studies is dominated by themes related to education, university and learning that far outweigh CT business application, which focuses on three research axes. These are specific business functions (e.g. accounting, marketing, human resources and identifying business opportunities), certain skills used in business (e.g. decision-making and creativity) and other business-related topics (including ethics, stakeholder relations and individual employee performance).

Practical implications – The article identifies new research gaps related to the link between CT and business performance, a firm’s ability to innovate and company characteristics. Moreover, the article highlights that CT positively influences business decision-making under the influence of cognitive biases and heuristics.

Originality/value – The article provides the first literature review on CT in business research. It uses a novel method of science mapping analysis to show unbiased algorithmic-based insight into the structure of the research, followed by a systematic literature review.

Purpose: The construction industry in Pakistan faces a turbulent environment and multiple challenges to achieve its targets. In such situations, the interest in innovation grows, especially in management innovation, and the conviction about its significant role in boosting organizational performance gains researchers’ interest. Accordingly, this article examines the mediating role of performance management in the relationship between management innovation and organizational performance.

Design/methodology/approach: Data were collected through a survey based method from 281 managerial rank employees working in the construction industry of Pakistan. The data were analyzed using PROCESS macro.

Findings: The results reveal that management innovation and performance management directly influence organizational performance, while we also confirmed the mediating role of performance management.

Implication: The association between management innovation and performance may seem palpable, but the recent literature asks for a reinvestigation. In tough competition and uncertain market situations, management innovation fosters knowledge creation and helps organizations adapt and drive them to higher performance.

Originality/value: The study results enrich the scholarship about the role of management innovation in stimulating organizational performance and performance management.

Purpose: Because of the growing interest in the literature in education and political skill as facilitators of firm performance, this article aims to reveal whether there is a moderating role of women entrepreneurs’ political skill on the relationship between their education level and firm performance when firm- and entrepreneur-level characteristics remain under control.

Methodology: The study was conducted in Istanbul, Kocaeli, and Bursa, cities with the lowest gender gap in Turkey. The participants of the questionnaires were 291 entrepreneurs who are members of the Women Entrepreneurs Association of Turkey (KAGIDER), the Women Entrepreneur Members of Endeavor Turkey, and the TOBB Women Entrepreneurs. Hierarchical regression analysis was performed to analyze the dataset.

Findings: When firm- and the entrepreneur-level characteristics remain under control, women entrepreneurs’ political skill shows a moderator role in the relationship between women entrepreneurs’ education level and firm performance.

Practical Implications: A bachelor’s degree or higher, along with political skill, allow women
entrepreneurs to increase their firm performance. Furthermore, the higher the political skill, the higher the effect of education level on firm performance.

Originality/Value: This is the first study to investigate the moderating role of political skill of women entrepreneurs in the relationship between education level and firm performance. Moreover, political influence and human capital theories are jointly applied to the theoretical model.

Purpose: The article evaluates the associative relationship between international supervisory board experts and foreign ownership, along with the experts’ influence on the financial and operating performance of firms. The study was based on data collected for 257 companies listed on the Warsaw Stock Exchange in 2010–2015.

Methodology: The dataset was built as a panel, and then generalized least squares regression models with a fixed or random effect were employed to test hypotheses.

Findings: The findings of the study clearly show that the presence of investigated firms in foreign markets positively affects company performance. Moreover, models with dependent variables ROA and ROS show that supervisory board members with foreign experience positively affect profitability indicators of firms that do not operate on foreign markets. The data analyses reveal that international experts are more effective advisors for companies that conduct no business activities on foreign markets. Furthermore, the results show a positive moderate association between the share of international experts in supervisory boards and the share of foreign ownership in the company.

Originality: The article contributes to the understanding of determinants and consequences of the presence of international experts in supervisory boards and company internationalization.

Objective: The objective of the article is to fill a research gap regarding the impact of psychic distance on the initiation of relationships by managers from Poland-based firms and to analyze the psychic distance’s influence on firm performance.

Research methodology: The article is based on quantitative research conducted among managers from 201 Poland-based companies operating in foreign markets. The study used a structured questionnaire consisting mainly of closed questions. The dataset contained companies representing all sizes, industries, and ownership status from all over Poland.

Findings: Two types of companies were identified following managers’ (un)willingness to initiate relationships with actors located in psychically distant markets. The study conclusions reveal that psychic distance matters for Polish managers and that business activities conducted in psychically distant markets are often perceived as more complex than in close markets. These activities involve additional risk, but they bring companies better performance.

Limitations: The limitation of the study is that the measurements are based on the subjective perceptions of psychic distance. The research was conducted in Poland only.

Originality: The article is a pioneer work on the psychic distance paradox among Polish managers from a diversified group of companies (from small to multinational). The article seeks to identify to what extent Polish managers perceive psychic distance as an important factor in the decision-making process concerning the initiation of relationships with foreign partners.

Purpose: Grounded in agency and entrenchment theories, this study assumes that CEOs’ propensity to entrench themselves can affect firm performance. The purpose of this article is to investigate the relationship between dimensions and mechanisms through which managers entrench themselves and influence firm performance.
Design/methodology/approach: The article uses OLS regression to explain the assumed relationships between managerial entrenchment and firm performance. The study is based on a sample of 55 Moroccan listed companies over the period 2010–2015.
Findings: Taken together, the findings contribute to a better understanding of the effect of several entrenchment pathways on firm performance. These findings imply that managerial entrenchment is not necessarily detrimental, as suggested by some governance theories. On the contrary, it can have a beneficial effect on wealth creation.
Research limitations/implications: This study faces several limitations. The first appears in the sample size of its quantitative element. The second is related to the variables used to measure managerial entrenchment. The current research explores the effects of the most commonly used measures and some non-retained measures could be pertinent in verifying the assumed relationships.
Originality/value: This analysis is one of the few studies conducted in the African countries that scrutinize the impact of managers’ entrenchment determinants (ownership, duality, age, and tenure) on firm performance.

Purpose: This paper provides an empirical evaluation of R&D returns for a series of global companies who lead in innovation within the health care industry.

Methodology: The estimation procedure bases on two specifications: the parametric production function setting, and finite distributed lag model (FDL).

Findings: Using the most recent data on R&D investment by health care equipment and services along pharmaceuticals and biotechnology companies, we confirm the positive albeit mitigated impact of R&D efforts on performance indicators (levels of sales). Moreover, we comment on the current phenomena observed in health care industry and offer a policy view for ongoing and future challenges in the sector.

Added value: Since there is a dearth of recent empirical evidence on R&D returns in the broad health industry, this paper offers the evaluation of economic incentives for companies to invest in R&D. These incentives embrace the induced increase in sales and profits levels. The authors participate in a public debate concerning the optimal levels of R&D rewards required to sustain the innovation within the sector.

Purpose: The purpose of this paper is to examine the relationship between working capital management and firm performance for firms listed on the Indonesian Stock Exchange. Prior works have employed many indicators of the working capital. The results of previous studies, however, have been inconsistent. This study is an attempt to find out the best proxy of working capital in explaining firm’s performance.

Methodology: This study employs regression panels for five measures of working capital to model the data for fifty-four firm-year observations that meet the sampling criteria, covering the time 2010–2014. This study also uses adjusted R-squared as the criteria to select the strongest relationship between measures of working capital and firm performance.

Findings: The findings indicate that all proxies of working capital management met expected signs and statistical significance. Hence, working capital management significantly improves firms’ performance. The proxy of inventory turnovers is the best measure of working capital in explaining firm performance.

Originality: To the author’s knowledge, this is the first study examining the relationship between five measures of working capital management and firm performance in Indonesia or in any emerging markets; hence, this study contributes to the scarce literature on the management of working capital.

Purpose: This paper investigates the relationship between the internal governance structure and fnancial performance of Polish companies. Ensuring diversity of corporate boards has been on the agenda of various regulators on a national and international level as it is generally expected corporate boards that are more diverse will be more competent and more effective monitoring managerial actions, and therefore positively impact company performance.

Methodology: This paper uses a sample of companies listed on the Warsaw Stock Exchange and examines the two main compositional features of company supervisory boards (independence and experience) and their practices by companies. We also investigate the effect of diversity on company performance. As our empirical methodology, we use linear regression analysis.

Findings: Our fndings support the proposal that diversity matters, especially in terms of the presence of experienced members on supervisory boards, and that such diversity positively affects fnancial results. In addition to the main fnding, the results of the study indicate also the importance of the ownership structure. Family frms and companies with a higher level of gearing are more likely to perform less effectively.

Originality: To date, research on the association between supervisory board diversity and fnancial performance in either the Polish or Central and Eastern European capital markets has been limited. The paper also points to the importance of having experienced members on a company’s supervisory board. Independent members on supervisory boards do not seem to have a similar association.

Purpose: There have been numerous studies analyzing the role of psychic (and cultural) distance in the internationalization process focused on relationships between distance and market selection, entry mode, or subsidiary performance. Still, cumulative findings of this body of research are mixed and inconclusive. Thus, this review aims for a rigorous presentation of past research on psychic distance, with particular focus on the aspects of international business operations affected by psychic distance in the light of empirical studies.

Methodology: This review encompasses 55 papers, both empirical and conceptual, published between 1990–2015 in top IB, international marketing, and management journals. In general, the papers under review were published in 27 journals, with the vast majority of them being published in 2005 or later. The vast majority of reviewed papers are of empirical character (47 papers), while eight are conceptual.

Findings: Since 2005, the number of articles published in top academic journals that featured the term “psychic distance” in the title has quadrupled. Common research topics include not only the core domain of internationalization process and performance, but also focus on understanding the concept of psychic distance, analyzing its antecedents and coping modes. Other studies have addressed the performance implications of psychic distance in conjunction with variables like strategy adaptation to foreign markets.
Research limitations/implications: While the present review is limited in the number of papers taken into account, it does provide an initial overview of the structure of the field. However, the comparability of findings of different studies is limited by factors such as firm samples or presence of multicultural nations. In terms of directions for further research, promising topics include the relationship between perceived and ‘real’ distances or the effectiveness of different coping modes.

Originality/value: The present paper identifies key research streams related to psychic distance and its role for international business. Based on an analysis of their content, it outlines several avenues for further investigation.

Purpose: This research aimed to identify the prevalence and particular characteristics of export-driven growth as opposed to those of the domestic market. It examined how the relative dynamics of export sales vs. domestic sales were affected by internationalization intensity (FSTS), age of the fi rm, early internationalization, size of the firm and industry technological level. Similarly, it examined the impact of sales growth and its direction
(domestic vs. export-driven) on company performance.

Methodology: The analysis was based on panel data from approximately 300 manufacturing firms in the Mazovia region of Poland that were engaged in sustained export operations during 2003 to 2010. Several hypotheses were tested regarding factors affecting the growth dynamics of regular exporters as well as their performance (productivity).

Findings: This research proved that only a small percentage (less than 10%) of fi rms reached the status of regular exporter. Although regular exporters engaged in international operations shortly after their foundation, they formed a distinct category of early internationalizing fi rms. For the management of young, ambitious ventures, achieving regularity in their initial export operations represented a major challenge.

Implications: Regularity of international sales is crucial for export performance, both at the enterprise and country levels. This implies that export promotion efforts should concentrate on growh-oriented firms, specifically to assist them in reaching regular exporter status shortly after initiating sales outside the domestic market.

Originality: The analysis of the internationalization process was expanded by adding the regularity dimension, which has been rarely addressed in the extant literature.