en pl
en pl

Central European Management Journal

Zobacz wydanie
Rok 10/2021 
Tom 29 
Numer 3

Managerial Entrenchment and Firm Performance: Evidence from Moroccan Listed Companies

Mohamed Bousetta
Sidi Mohamed Ben Abdellah University of FES

10/2021 29 (3) Central European Management Journal

DOI 10.7206/cemj.2658-0845.53


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.


  1. Adam, I. O. (2020). ICT development, e-government development, and economic development: Does institutional quality matter? Information Technologies & International Development, 16, 1–19. [Google Scholar]
  2. Akimova, L., Akimov, O., Maksymenko, T., Hbur, Z., Orlova, V. (2020). Adaptive management of entrepreneurship model as a component of enterprise resource planning. Academy of Entrepreneurship Journal, 26(3), 1–8. [Google Scholar]
  3. André Luhn, A., Aslanyan, S., Leopoldseder, Ch., Priess, P. (2017). An evaluation of knowledge management system's components and its financial and non-financial implications. Entrepreneurship and Sustainability Issues, 5(2), 315–329. https://doi.org/10.9770/jesi.2017.5.2(11). [Google Scholar]
  4. Askarian, M., Abdollahi, Ch. (2016). Determining the relationship between components of knowledge management and organizational citizenship behavior in experts’ Science and Research Branch of Islamic Azad University. European Online Journal of Natural and Social Sciences: Proceedings, 5(3), 135–144. [Google Scholar]
  5. Atkociuniene, Z.O., Mikalauskiene, A. (2019). Knowledge Management Influence on Implementing Sustainable Development Means in the Organization. Transformations in Business & Economics, 18(3C (48C)), 546–564. [Google Scholar]
  6. Azizi, R., Maleki, M., Moradi-Moghadam, M. and Cruz-Machado, V. (2016). The impact of knowledge management practices on supply chain quality management and competitive advantages. Management and Production Engineering Review, 7, 4–12. https://doi.org/10.1515/mper-2016-0001. [Google Scholar]
  7. Balcerak, A., and Woźniak, J. (2021). Reactions to some ICT-based personnel selection tools. Economics and Sociology, 14(1), 214–231. https://doi.org/10.14254/2071-789X.2021/14-1/14. [Google Scholar]
  8. Bannay, D.F., Hadi, M.J., and Amanah, A.A. (2020). The impact of inclusive leadership behaviors on innovative workplace behavior with an emphasis on the mediating role of work engagement. Problems and Perspectives in Management, 18(3), 479. http://dx.doi.org/10.21511/ppm.18(3).2020.39. [Google Scholar]
  9. Bilan Y., Mishchuk, H., Roshchyk, I., Joshi, O. (2020). Hiring and retaining skilled employees in SMEs: problems in human resource practices and links with organizational success. Business: Theory and Practice, 21(2), 780–791. https://doi.org/10.3846/btp.2020.12750. [Google Scholar]
  10. Bilan, Y., Mishchuk, H., Samoliuk, N., and Grishnova, O. (2019). ICT and Economic Growth: Links and Possibilities of Engaging. Intellectual Economics, 13(1), 93–104. [Google Scholar]
  11. Bogdan, Т., Lomakovych, V. (2021). Financialization of the global economy: Macroeconomic implications and policy challenges for Ukraine. Investment Management and Financial Innovations, 18(1), 151–164. https://doi.org/10.21511/imfi.18(1).2021.13. [Google Scholar]
  12. Boldeanu, F.T., Constantinescu, L. (2015). The main determinants affecting economic growth, Bulletin of the Transilvania University of Braşov Series V: Economic Sciences, 8(57), 329–338. [Google Scholar]
  13. Bolisani, E., Bratianu, C. (2018). The Emergence of Knowledge Management. In: Emergent Knowledge Strategies. Knowledge Management and Organizational Learning, 4, 23–47. [Google Scholar]
  14. Bryl, Ł. (2018). Knowledge-intensive exports of CEE and developed nations – driven by foreign or domestic capital? International Entrepreneurship Review, 4(3), 69–85. Obtained from: https://ier.uek.krakow.pl/index.php/pm/article/view/1761. [Google Scholar]
  15. Chión, S. J., Charles, V., Morales, J. (2019). The impact of organisational culture, organisational structure and technological infrastructure on process improvement through knowledge sharing. Business Process Management Journal (ahead-of-print). https://doi.org/10.1108/BPMJ-10-2018-0279. [Google Scholar]
  16. Chlebisz, A., and Mierzejewski, M. (2020). Determinants of GDP growth in Scandinavian countries with special reference to scientific progress. International Entrepreneurship Review, 6(3), 21–35. https://doi.org/10.15678/IER.2020.0603.02. [Google Scholar]
  17. Cornell. INSEAD. WIPO. (2020). The Global Innovation Index 2019: Creating Healthy Lives – The Future of Medical Innovation. https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2019.pdf [Google Scholar]
  18. Coursera (2020). Global Skills Index 2019. https://www.coursera.org/gsi. [Google Scholar]
  19. Dinh, D.V. (2020). Comparison of the impact of lending and inflation rates on economic growth in Vietnam and China. Banks and Bank Systems, 15(4), 193–203. https://doi.org/10.21511/bbs.15(4).2020.16. [Google Scholar]
  20. EC (2020). The Digital Economy and Society Index. Obtained from: https://ec.europa.eu/digital-single-market/en/desi. [Google Scholar]
  21. Fitri, H., Nugraha, A.T., Hakimah, Y., Manihuruk, C. (2019). Strategic management of organizational knowledge and competency through intellectual capital. Polish Journal of Management Studies, 19(2), 132–141. https://doi.org/10.17512/pjms.2019.19.2.11. [Google Scholar]
  22. GEDI (2020). The Global Entrepreneurship Index 2019. Obtained from: https://thegedi.org/wp-content/uploads/2021/02/2019_GEI-2019_final_v2.pdf. [Google Scholar]
  23. GIPC (2020). U.S. Chamber International IP Index 2020. Obtained from: https://www.uschamber.com/report/2020-international-ip-index. [Google Scholar]
  24. Grishnova, O., Cherkasov, A., Brintseva, O. (2019). Transition to a new economy: Transformation trends in the field of income and salary functions. Problems and Perspectives in Management, 17(2), 18–31. https://doi.org/10.21511/ppm.17(2).2019.02. [Google Scholar]
  25. Hadad, S. (2017). Knowledge economy: Characteristics and dimensions, Management Dynamics in the Knowledge Economy, 5(2), 203–225. https://doi.org/10.25019/MDKE/5.2.03. [Google Scholar]
  26. Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A., Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), 3811. https://doi.org/10.3390/su11143811. [Google Scholar]
  27. Hays plc. (2020). The Hays Global Skills Index 2019/2020. Obtained from: https://www.hays-index.com/. [Google Scholar]
  28. Huawei (2020). Powering Intelligent Connectivity with Global Collaboration. Mapping your transformation into a digital economy with GCI 2019. Obtained from: https://www.huawei.com/minisite/gci/en/index.html. [Google Scholar]
  29. Inkinen, H. (2016). Review of empirical research on knowledge management practices and firm performance, Journal of Knowledge Management, 20(2), 230–257. [Google Scholar]
  30. INSEAD (2020). The Global Talent Competitiveness Index 2020: Global Talent in the Age of Artificial Intelligence. Obtained from: https://gtcistudy.com/. [Google Scholar]
  31. Ivanová, E., Čepel, M. (2018). The impact of innovation performance on the competitiveness of the Visegrad 4 countries. Journal of Competitiveness, 10(1), 54. https://doi.org/10.7441/joc.2018.01.04. [Google Scholar]
  32. Kalashi, M., Bakhshalipour, V., Azizi, B. and Sareshkeh, S. Kh. (2020). The Effect of the Application of ICT Skills on the Process of Knowledge Management Components and the Effectiveness of Creativity Indicators for the Improvement of Employees' Performance System in the Ministry of Sports and Youth. World Journal on Educational Technology: Current Issues, 12(1), 48–62. https://doi.org/10.18844/wjet.v12i1.4382. [Google Scholar]
  33. Karpenko, O., Horbenko, A., Vovk, Y., and Tson, O. (2017). Research of the structure and trends in the development of the logistics market in Ukraine. Journal Of Sustainable Development Of Transport And Logistics, 2(2), 57–66. https://doi.org/10.14254/jsdtl.2017.2-2.5. [Google Scholar]
  34. Kianto, A., Vanhala, M. and Heilmann, P. (2016). The impact of knowledge management on job satisfaction, Journal of Knowledge Management, 20(4), 621–636. https://doi.org/10.1108/JKM-10-2015-0398 [Google Scholar]
  35. Kitrar, L., and Lipkind, T. (2021). The relationship of economic sentiment and GDP growth in Russia in light of the Covid-19 crisis. Entrepreneurial Business and Economics Review, 9(1), 7–29. https://doi.org/10.15678/EBER.2021.090101. [Google Scholar]
  36. Klimuk, V. (2019). Innovative tactics of industrial business in terms of economy digitalization: Case of the Republic of Belarus and the Russian Federation. Economics, Management and Sustainability, 4(1), 58–65. https://doi.org/10.14254/jems.2019.4-1.6. [Google Scholar]
  37. Klopova, O., Komyshova, L., Simonova, M. (2018). Professional development in the field of human resource management of heads and specialists of the innovative organizations. Problems and Perspectives in Management, 16(1), 214. [Google Scholar]
  38. Kostiukevych, R., Mishchuk, H., Zhidebekkyzy, A., Nakonieczny, J., and Akimov, O. (2020). The impact of European integration processes on the investment potential and institutional maturity of rural communities. Economics and Sociology, 13(3), 46–63. https://doi.org/10.14254/2071-789X.2020/13-3/3. [Google Scholar]
  39. Legatum Institute (2020). The Legatum Prosperity Index 2019. Obtained from: https://www.prosperity.com/rankings. [Google Scholar]
  40. Lestari, A.S., Hamka, S.R. (2018). Analysis of the Components of Knowledge Management on the Postgraduate IAIN Kendari. Advances in Social Science, Education and Humanities Research, 261, 19–22. https://doi.org/10.2991/icie-18.2018.4. [Google Scholar]
  41. Limba, T., Driaunys, K., Kiskis, M., Sidlauskas, A. (2020). Development of Digital Contents: Privacy Policy Model under the General Data Protection Regulation and User-Friendly Interface, Transformations in Business & Economics, 19(1(49), 133–154. [Google Scholar]
  42. Majid, M.B., Mahmud, M.S.B. (2019). Knowledge Management and its Impact on Organizational Performance: Evidence from Pakistan. Annals of Contemporary Developments in Management & HR (ACDMHR), 1, 7–14. [Google Scholar]
  43. Masa’deh, R., Almajali, D. A., Alrowwad, A. and Obeidat, B. (2019). The role of knowledge management infrastructure in enhancing job satisfaction: A developing country perspective. Interdisciplinary Journal of Information, Knowledge and Management, 14, 1–25. https://doi.org/10.28945/4169. [Google Scholar]
  44. Mishchuk, H., Bilan, Y. and Pavlushenko, L. (2016). Knowledge Management Systems: Issues in Enterprise Human Capital Management Implementation in Transition Economy. Polish Journal of Management Studies, 14, 163–173. [Google Scholar]
  45. Novikova, І., Stepanova, А., Zhylinska, О., Bediukh, О. (2020). Knowledge and technology transfer networking platforms in modern research universities. Innovative Marketing, 16(1), 57–65. https://doi.org/10.21511/im.16(1).2020.06. [Google Scholar]
  46. Obeidat, B.Y., Al-Suradi, M.M., Masa’deh, R. and Tarhini, A. (2016). The impact of knowledge management on innovation: An empirical study on Jordanian consultancy firms, Management Research Review, 39(10), 1214–1238. https://doi.org/10.1108/MRR-09-2015-0214. [Google Scholar]
  47. OECD (1996). Organization for Economic Cooperation and Development. The knowledge-based economy. OCDE/GD (96) 102. https://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=OCDE/GD%2896%29102&docLanguage=En. [Google Scholar]
  48. Oliinyk, O. (2020). Social responsibility assessment in the field of employment (case study of manufacturing). Scientific Bulletin of National Mining University, 3, 131–136. https://doi.org/10.33271/nvngu/2020-3/131. [Google Scholar]
  49. Oliinyk, O., Bilan, Y., Mishchuk, H., Akimov, O. and Vasa, L. (2021). The Impact of Migration of Highly Skilled Workers on The Country’s Competitiveness and Economic Growth. Montenegrin Journal of Economics, 17(3), 7–19. https://doi.org/10.14254/1800-5845/2021.17-3.1. [Google Scholar]
  50. Písař, Р., Tomášková, А. (2020). The importance of social networks for the SME’s innovation potential in Industry 4.0. Innovative Marketing, 16(3), 48–61. doi:10.21511/im.16(3).2020.05 [Google Scholar]
  51. Podra, O., Litvin, N., Zhyvko, Z., Kopytko, M., Kukharska, L. (2020). Innovative development and human capital as determinants of knowledge economy. Business: Theory and Practice, 21(1), 252–260. https://doi.org/10.3846/btp.2020.11305. [Google Scholar]
  52. Polyakov, М., Khanin, І., Bilozubenko, V., Korneyev, М., Nebaba, N. (2020). Information technologies for developing a company’s knowledge management system. Knowledge and Performance Management, 4(1), 15–25. https://doi.org/10.21511/kpm.04(1).2020.02 [Google Scholar]
  53. Poór, J., Juhász, T., Machová, R., Bencsik, A., and Bilan, S. (2018). Knowledge management in human resource management: Foreign-owned subsidiaries’ practices in four CEE countries. Journal of International Studies, 11(3), 295–308. https://doi.org/10.14254/2071-8330.2018/11-3/23. [Google Scholar]
  54. Portna, O.V., Iershova, N.Y., Tereshchenko, D.A., Kryvytska, O.R. (2021). Economic Business Partnerships Within Industry 4.0: New Technologies in Management. Montenegrin Journal of Economics, 17(1), 151–163. [Google Scholar]
  55. Property Rights Alliance (2020). The International Property Rights Index 2019. Obtained from: https://www.internationalpropertyrightsindex.org/. [Google Scholar]
  56. Raeeszadeh, S. F., Gilaninia, Sh., Homayounfar, M. (2016). The effects of knowledge management components on marketing performance: a case study of educational centers located across Guilan province. Kuwait Chapter of Arabian Journal of Business and Management Review, 5(9), 23–31. https://doi.org/10.12816/0019415. [Google Scholar]
  57. Roszko-Wójtowicz, E., Grzelak, M.M. (2020). Macroeconomic stability and the level of competitiveness in EU member states: a comparative dynamic approach. Oeconomia Copernicana, 11(4), 657–688. https://doi.org/10.24136/oc.2020.027. [Google Scholar]
  58. Rymarczyk, J. (2020). Technologies, opportunities and challenges of the industrial revolution 4.0: theoretical considerations. Entrepreneurial Business and Economics Review, 8(1), 185–198. https://doi.org/10.15678/EBER.2020.080110. [Google Scholar]
  59. Rymarczyk, J. (2021). The impact of industrial revolution 4.0 on international trade. Entrepreneurial Business and Economics Review, 9(1), 105–117. https://doi.org/10.15678/EBER.2021.090107. [Google Scholar]
  60. Sadeghi, A., Rad, F.M. (2018). The role of knowledge-oriented leadership in knowledge management and innovation. Management Science Letters, 8, 151–160. https://doi.org/10.5267/J.MSL.2018.1.003. [Google Scholar]
  61. Simplice A. Asongu, Kuada, J. (2020). Building knowledge economies in Africa: an introduction. Contemporary Social Science, 15(1), 1–6. https://doi.org/10.2139/ssrn.3522820. [Google Scholar]
  62. Social Progress Imperative (2020). Social Progress Index 2019. Obtained from: https://www.socialprogress.org/?tab=2&code=NOR. [Google Scholar]
  63. Soniewicki, M., and Paliszkiewicz, J. (2019). The Importance of Knowledge Management Processes for the Creation of Competitive Advantage by Companies of Varying Size. Entrepreneurial Business and Economics Review, 7(3), 43–63. https://doi.org/10.15678/EBER.2019.070303. [Google Scholar]
  64. Suknunan, S., Maharaj, М. (2019). The role of knowledge management in institutional strategy development and competitiveness at leading African universities. Knowledge and Performance Management, 3(1), 19–30. https://doi.org/10.21511/kpm.03(1).2019.03. [Google Scholar]
  65. Takhtravanchi, М., Pathirage, С. (2018). Knowledge integration challenges and critical success factors within construction traditional procurement system. Knowledge and Performance Management, 2(1), 24–37. https://doi.org/10.21511/kpm.02(1).2018.03. [Google Scholar]
  66. Torres, A.I., Ferraz, S.S., Santos-Rodrigues, H. (2018).The impact of knowledge management factors in organizational sustainable competitive advantage, Journal of Intellectual Capital, 19(2), 453–472. https://doi.org/10.1108/JIC-12-2016-0143. [Google Scholar]
  67. Tortoise (2020). The Global AI Index 2019. Obtained from: https://www.tortoisemedia.com/intelligence/ai/. [Google Scholar]
  68. Tvaronaviciene, M., and Burinskas, A. (2021). Internal funding determinants of R&D expenditures for U.S. mature firms. Journal of International Studies, 14(1), 276–284. doi:10.14254/2071-8330.2021/14-1/19 [Google Scholar]
  69. Ulewicz, R., Blaskova, M. (2018). Sustainable development and knowledge management from the stakeholders’ point of view. Polish Journal of Management Studies, 18(2), 363–374. https://doi.org/10.17512/pjms.2018.18.2.29. [Google Scholar]
  70. UNDP (2019). The Future of Knowledge: A Foresight Report 2019. Obtained from: https://knowledge4all.com/reports/Future_of_Knowledge_2019_English.pdf. [Google Scholar]
  71. UNDP (2021). Global Knowledge Index – Methodology. Obtained from: https://knowledge4all.com/Methodology.aspx?language=en. [Google Scholar]
  72. Ungerman, O., Dedkova, J., Gurinova, K. (2018). The impact of marketing innovation on the competitiveness of enterprises in the context of industry 4.0. Journal of Competitiveness, 10(2), 132–148. https://doi.org/10.7441/joc.2018.02.09. [Google Scholar]
  73. Van Dung, N., Hoai, N.T., Kien, N.S. (2017). Economic growth: The role of knowledge economy in the context of selected Asian countries. Journal of Economic Development, 24(1), 4–29. http://doi.org/10.24311/jed/2017.24.1.06. [Google Scholar]
  74. Vovk, I., Vovk, Y., and Lyashuk, O. (2017). Improvement of the organizational-economic mechanism of resource-saving at the machine building enterprise. Economics, Management and Sustainability, 2(2), 6–14. https://doi.org/10.14254/jems.2017.2-2.1. [Google Scholar]
  75. WBG (2020). World Development Indicators database. https://databank.worldbank.org/data/download/GNIPC.pdf [Google Scholar]
  76. WEF (2020). The Global Competitiveness Report 2019. Obtained from: http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. [Google Scholar]
  77. WEF (2020). The Global Social Mobility Report 2020. Equality, Opportunity and a New Economic Imperative. Obtained from: http://www3.weforum.org/docs/Global_Social_Mobility_Report.pdf [Google Scholar]
  78. Wijaya, P.Y., Suasih, N.N.R. (2020). The effect of knowledge management on competitive advantage and business performance: A study of silver craft SMEs. Entrepreneurial Business and Economics Review, 8(4), 105–121. https://doi.org/10.15678/EBER.2020.080406. [Google Scholar]
  79. Yousif, N.B.A., Grondys, K., Gad, S., Elsayed, W. (2020). Knowledge management in non-governmental organizations (NGOs). Administratie si Management Public, (35), 90–108. . https://doi.org/10.24818/amp/2020.35-06. [Google Scholar]

Kompletne metadane

Cytowanie zasobu

APA style

Bousetta, Mohamed (2021). Managerial Entrenchment and Firm Performance: Evidence from Moroccan Listed Companies. (2021). Managerial Entrenchment and Firm Performance: Evidence from Moroccan Listed Companies. Central European Management Journal, 29(3), 40–62. https://doi.org/10.7206/cemj.2658-0845.53 (Original work published 10/2021n.e.)

MLA style

Bousetta, Mohamed. „Managerial Entrenchment And Firm Performance: Evidence From Moroccan Listed Companies”. 10/2021n.e. Central European Management Journal, t. 29, nr 3, 2021, ss. 40–62.

Chicago style

Bousetta, Mohamed. „Managerial Entrenchment And Firm Performance: Evidence From Moroccan Listed Companies”. Central European Management Journal, Central European Management Journal, 29, nr 3 (2021): 40–62. doi:10.7206/cemj.2658-0845.53.