Edinburgh Business School

Permanent URI for this communityhttps://dspace-upgrade.is.ed.ac.uk/handle/10399/16

Browse

Now showing 1 - 20 of 155

Adaptability and mindfulness of Chinese knowledge workers in multinational companies
(Edinburgh Business School, 2019-10) Norris, Graham; Nolan, Professor Jane
Important aspects of human activity such as international trade, travel and investment are gaining pace, in what has become known as the “Great Acceleration”. For companies, technology adoption cycles are contracting, disrupting industries and increasing the pressure on workers to adapt. At the same time, mindfulness is attracting attention for its success in improving people’s mental health, including the reduction of stress. This research investigates how a group of 13 Chinese knowledge workers perceive and respond to their rapidly changing environment, and the possible influence of mindfulness on helping them cope with change. Adopting a critical realist approach, in-depth interviews were conducted with individuals at multinational corporations in China and analysed using the Framework process. The research builds on existing theory by developing a process model of adaptability that incorporates the new concept of “adaptability gaps” that need to be addressed in response to change and also highlights the influence of age and experience on successful coping. Evidence supports to some extent the theoretical linkages between mindfulness and adaptability, especially in participants’ attitude and responses to change. Implications for professional practice include the need for organisations to identify and nurture adaptability in their work forces, and for individuals to increase their awareness of change and develop tactics to close the “adaptability gaps” that it creates.
Adaptive hybrid-selling in German mechanical engineering B2B-sales : how can computer-mediated and on-site communication be effectively combined to convince decision-makers?
(Heriot-Watt University, 2024-11) Kober, Stephan; Spandl, Professor Doctor Torsten
This research supports B2B-salespeople to select, combine and use on-site and digital communication channels approaching decision-makers to achieve communication goals - incorporating different sales process steps - in times of massively changing communication habits. Salespersons in german B2B-sales face the huge challenge of having handled by far the largest part of their customer communication via well-known communication channels such as on-site visits, telephone and E-mail for decades and now having to handle additional communication channels (e.g. videoconferences, Social Media or customer specific videos), which are new territory for many salespeople, in a relatively short period, since on-site customer appointments were not feasible caused by the Corona pandemic. However, skills to communicate professionally through these channels and to decide which channels are the most appropriate in which situation were not sufficiently developed. Using a qualitative research strategy and applying a multiple embedded case study approach, experiences of sales-directors, purchasing managers and salespersons have been analysed. The data analysis has been conducted via a thematic analysis. Applying this research strategy, communication experiences from the real-world context in B2B-sales have been elicited to conclude which combination of different communication channels is valued by interlocutors. Via a practical model and a checklist, which can be applied in real-world communications with prospects and customer’s decision makers, the research’s objective is to provide a pragmatic help for B2B-salespersons in order to increase deal closing rates via a convincing communication with customer’s decision-makers.
The adoption of risk governance best practices and its impact on bank stability and performance : evidence from Uganda’s commercial banking sector
(Heriot-Watt University, 2024-08) Rugadya, Robert; Mackie, Doctor Bobby
Regulatory implementation of risk governance best practices notwithstanding, the stability of banking systems, a critical catalyst for economic growth and transformation, continues to be undermined by bank failures associated with risk governance weaknesses. Does the adoption of risk governance best practices truly enhance bank stability? In the absence of a universal answer to this question within the existing literature, this study (or “the study”) seeks to obtain a context-specific answer for small privately owned banks operating in relatively less sophisticated regulatory environments during a non-crisis period. The study theoretically integrates agency and institutional frameworks and empirically refers to published quantitative secondary data from commercial banks in Uganda for the period 2014 - 2023. Parametric tests and dynamic panel data models are used to test relevant hypotheses. The data reveals significant variation in the adoption of risk governance best practices between listed and non-listed banks. However, contrary to hypothesized expectations, risk governance best practices are found to have no significant impact on bank risk-taking, stability and performance. The main empirical contribution of the study is new evidence on risk-taking, stability and performance outcomes of bank risk governance best practices using non-crisis data from small, mostly privately-owned banks operating in a relatively less sophisticated legal and governance context. The integration of agency and institutional theories also represents an element of methodological advancement, allowing researchers to better reflect the role of external influences on entity level corporate governance structures and outcomes. Implications for practice include highlighting the necessity of taking measures to enhance the effectiveness of risk governance mechanisms as opposed to simply adopting them which may not guarantee their impact. Accordingly, the study presents recommendations for stability focussed bank governance practices, regulation, and supervision.
The advertising effects of connected television and digital out of home media : a field experiment
(Heriot-Watt University, 2023-08) Gutnik., Stephanie; Grant, Doctor Ian
Television advertising has traditionally been used by marketers to reach mass audiences, but linear TV viewership is in decline as viewer attention moves toward emerging digital media. This fragmentation of audiences poses a challenge for marketing practitioners, who must learn which alternative media should be used in marketing plans to reach desired consumers. The aim of this research is to provide insights to marketing practitioners exploring new ways to communicate with fragmented audiences due to decreased linear TV viewership. The integrated marketing communications (IMC) paradigm presents one approach to exploring the individual and combined effects of media activated in an advertising campaign. However, there is limited information about the advertising effects of emerging media. As such, connected TV (CTV) and digital out of home (DOOH) have been selected to test the effectiveness of two emerging media. A critical literature review develops a conceptual model in accordance with the IMC paradigm and formulates six hypotheses to test the direct effect of attitude toward media on attitudinal outcomes of attitude toward the ad and brand opinion, and consumer decision outcomes of brand awareness, brand consideration, purchase intent and ad recall. In accordance with a positivist ontology, a field experiment is run for goodr, a nascent sports sunglasses brand seeking to add media beyond search and social media advertising to reach new customers. Using a GDPR-compliant mobile-based survey platform, a panel of 400 consumers is divided into four treatment groups of 100 people each: unexposed, exposed to CTV only, exposed to DOOH only and exposed to both CTV and DOOH. Linear and logistic regression analyses are used to assess the correlation between attitude to media and the dependent variables. Statistically significant positive relationships are identified for most hypotheses and Hayes Process analyses show statistically significant indirect relationships with attitude toward the ad as the mediator variable. Despite the supported hypotheses, the results demonstrate the challenge of measuring IMC activity given that evidence of media synergies is inconclusive. However, for a new business seeking to grow market share, the results show CTV and DOOH are effective and should be considered for media plans. The research provides a foundation for future research by identifying the need to consider a laboratory element in the methodology and use a video-based DOOH creative treatment to compare the medium with CTV more equally.
Agile adoption best practices in Canadian banking
(Heriot-Watt University, 2020-02) Duarte, Hernani Manuel; Robinson, Doctor Craig; Wallace, Doctor William
This thesis examines agile software development adoption challenges in large Canadian banks. Canadian banks have adopted agile methods with varying success. The aim of the thesis is to develop an agile adoption framework, using a mixed methods research approach. Research on agile adoptions in financial firms and other regulated industries was reviewed. The result was a list of best practice and challenges that firms experience in their agile transformations. These factors, along with data gathered from interviews, surveys and observations were triangulated to produce a list of best practices. The research used mixed methods, treating the Canadian banking industry as a single case. Qualitative data were elicited through interviews and observation. Additional data was collected through an internet based survey. Chain referral sampling was used to increase the sample size. The population sampled consisted of executives responsible for agile adoptions, agile coaches and project managers involved in banking agile projects. Seven participants were interviewed and twenty seven completed surveys were received. A pilot study was conducted to test the methodology and research instruments prior to the main study. The data was analyzed using the framework method to synthesize the best practices from the literature with the primary data. The result of the research is a set of best practices and a framework for agile adoption in banking. A validation study of the framework was conducted and indicated it was suitable for banking. The analysis concluded that agile practices and adoption strategies used in non-bank industries, with some exceptions, were equally applicable to large banks. The analysis also demonstrated that a phased adoption framework was well suited to the banking culture for facilitating an agile transformation rather than a holistic companywide adoption. The theoretical contribution of this research is the identification of agile best practices and challenges experienced by practitioners within the Canadian banking industry. It is one of the first academic studies to be conducted on agile adoption in Canadian banks and contributes knowledge to the literature on agile adoptions. The practical application of the research is the proposed framework which provides a disciplined foundational roadmap for leaders initiating agile transformations in their own banks.
Agile and traditional project management : comparing agile, traditional and hybrid project management practices
(Heriot-Watt University, 2021-09) Diem, Gregor; Adams, Professor John
The study researches the use of the hybrid project management approach in practice. The challenges of both agile and traditional project management models represented by 15 established project management Critical Success Factors (CSF) were used to examine the differences between traditional, agile and hybrid project management practices. Although other studies have investigated the CSF in traditional and agile project management, this study is the first to review 15 CSF for hybrid project management. The research takes a quantitative approach using a survey as the research method. The primary data for the present study were collected in Germany by an online survey. These primary data were collected with the participation of project management professionals from the German Chapters of the Project Management Institute (PMI). In the subsequent analysis of the online survey data, 15 hypotheses for hybrid project management were formulated, in addition to the existing body of knowledge of traditional and agile project management. Project management models make change possible where simple, complicated and complex kinds of project management are required and academia benefits from this work through its insight into the increased need for flexibility in this context. This research shows that neither traditional project management nor agile project management is wholly similar to hybrid project management. The main finding of this research is that its similarity depends on the CSF. As a research outcome, the guiding principles have been formulated for showing which situations merit hybrid project management. The research also benefits practitioners, since it will guide project managers who are not sure when and where to use a certain project management paradigm. As an outcome, the research implies that project managers will better understand why and in which situation traditional approaches should be chosen, and why and when agile or hybrid project management approaches should be preferred.
Agile strategy in the context of digital transformation
(Heriot-Watt University, 2024-09) Koch, Petra; Canduela, Doctor Jesus
This study uses digital transformation as a context to explore strategic agility in organisations. Strategic agility has been widely studied from a capability perspective, but attention to agility from a process or practice perspective has so far been limited. The present research defines strategic agility as a ‘dynamic meta-capability’ that enables organisations to balance organisational tensions in their ongoing organisational strategy process. This enables them to adapt actively or reactively to internal or external environmental circumstances while both pursuing their long-term strategic intent and renewing business models effectively. Overall, a strategy process perspective is adopted, acknowledging practice and capability views, to address the following research question: how do organisations manage strategic agility within the strategy process in the context of digital transformation? The present research is conducted from a constructionist perspective using a qualitative inductive multiple case study approach in seven traditional or pre-digital organisations. Data collection included twenty-two semi-structured interviews supported by secondary data such as annual reports. Data were analysed using reflexive thematic analysis to gain in-depth insights. The study develops a Strategic Agility Framework and makes three main contributions to the field. First, the process view is extended by identifying an operationalisation process dimension used in addition to strategy development and implementation in the organisations studied. The study also identifies a continuous reflection and balancing cycle needed for strategic agility. Second, seven strategic ambidexterity principles are developed, which extend the capability view of strategic agility. Third, the practice view of agility is extended by identifying ongoing prioritisation of strategy projects, to both allocate resources and plan capacities, as a key barrier or enabler for strategic agility. Finally, the study uses these contributions to develop seven recommendations for practitioners to improve agility within their strategy process by using the Strategic Agility Framework.
An analysis of leader and follower behaviours in the context of new ways of working (NWW) : evidence from the German IT industry and recommendations for companies
(Heriot-Watt University, 2024-02) Reichert, Lena Katharina
Information technology (IT) enables certain sectors of a workforce to work wherever and whenever they want. This new flexibility has led to New Ways of Working (NWW): a working style that emphasises mutual trust, empowerment and the freedom to work anywhere and anytime. Pre-COVID-19, Germany ranked considerably below the European average for remote and time-independent working. The pandemic substantially disrupted the German workforce and led to almost 18 million German employees working from home from one day to the next. Predictions foresee that NWW will become the new standard instead of the exception; thus, companies and their leaders will need to adapt rapidly to these new working conditions. This research will, therefore, address the following questions: What are behaviours that are shown by leaders and followers in NWW? Will daily interactions between leaders and followers have an impact on their mutual trust relationship? How do leaders engage in behaviours that empower their followers? Are there any other significant leader behaviours in NWW? To answer these questions, this study will be conducted in the German IT industry. Qualitative diary research is followed to provide relevant insights into the behaviour of leaders and followers. The findings are analysed and later triangulated with semi-structured interviews. The results add to the existing literature on NWW and provide guidance on what constitutes appropriate leadership behaviour in this new work environment. The key outcome is a new framework of leader behaviours and follower outcomes (LBFO) in NWW. This framework provides insights into the expected leader behaviours and the resulting affective state of the follower. From this, three fields were identified to give concrete, easily implemented guidelines for companies which adopt NWW: (I) guidelines for leader behaviour, (II) guidelines on an organisational level and (III) considerations for organisational culture. This research project adds to and expands on current theory, suggests practical implications, and provides a new modern framework which companies can implement at various levels. It also paves the way for future research into this field.
The antecedent roles of personal constructs and culture in the construing of psychological contracts by staff in a Czech financial services company
(Heriot-Watt University, 2017-09) Boddy, Ronald Leslie; Jankowicz, Professor Devi
The modern conceptualisation of the psychological contract recognises a tacit mental representation or schema, spanning all aspects of an employee’s perception of work. Reciprocity is a normative force in contract functioning. For over 500 years, the Czech Republic was subject to the rule of other nations. The failed totalitarianism of the most recent Soviet hegemony precipitated the Velvet Revolution and Czech adoption of the market economy in 1989. Some commentators have argued that unproductive work attitudes remain as a legacy of the command system. Following the phenomenological paradigm and constructivist epistemology, the research uses concepts from Personal Construct Psychology to compare the work constructs of Czech and non-Czech staff within the Czech and UK subsidiaries of the same company, examining antecedent effects of culture and individual experiences on psychological contract formation and development. The findings show that the two nationalities construe work along broadly similar lines, prioritizing its social qualities. Czech constructs seem to be simpler than those of non- Czechs, apparently lacking the value placed on personal ambition and achievement by the comparator group. Czechs do, however, appear to value independence much more than non-Czechs, with young Czechs also seemingly expecting social justice and the right to self-determination. The findings make a strong case for suggesting that these values have their origins in Czech culture and history, implying that both influence the work dispositions of Czechs and may plausibly be psychological contract antecedents. The conclusions call for a wider conceptualisation of the psychological contract, specifically in its anticipatory (pre-work) form, and suggest that existing theory might benefit from giving greater consideration and prominence to the social properties of work. Suggestions for further research and business applications are included.
Antecedents of consumer pre-banking behaviour in the Ghanaian banking sector
(Heriot-Watt University, 2022-03) Tannor, Linus Linnaeus; Ahmad, Doctor Farhan
Consumer behaviour is constantly evolving. The service marketing landscape therefore continues to evolve along with the dynamic ways in which consumers choose to interact with their service providers. Accordingly, the study of consumer decision-making is one of the dominant trends in consumer behaviour research. While consumer pre-purchase behaviour is a thoroughly studied field in other service sectors including the hospitality and telecommunication (Zhang et al., 2019; Tommasetti et al., 2018), the pre-purchase phase of consumer behaviour for financial services especially banking, has been under-researched. In Ghana, the banking sector caters for about half (58.0%) of the bankable population (World Bank, 2018). However, applying the appropriate antecedents of consumer pre-banking behaviour has been a perennial challenge for the sector. Consequently, it is costing banks more to attract prospective consumers. This study explored the determinants of consumer pre-banking behaviour in the Ghanaian banking sector. The study developed a tri-component model that explained consumer pre-purchasing behaviour by extending the constructs of the Theory of Planned Behaviour (TPB) to include affective and conative components. This has addressed the theoretical gaps in former research that cognitively applied the TPB. The study sampled 210 retail banking consumers who have recently (in the past six months) purchased a banking product in the Ghanaian banking sector. The positivist paradigm was used by adopting the exploratory sequential design of the mixed-methods approach. Thus, the study qualitatively identified the key indicators making up the constructs of consumer pre-banking behaviour, and empirically tested the identified latent variables in a subsequent main quantitative survey. The model was estimated using a PLS-SEM path analysis through the SmartPLS 3.0. A substantial amount (41.0%) of the variation in consumer pre-banking behaviour was explained by the model. Affective, conative and cognitive attitude, and perceived trust were significant antecedents of consumer pre-banking behaviour in the Ghanaian banking sector. Also, consumer emotions and habits can exist along with their cognition throughout the pre-banking decision-making process. Perceived risk partially mediated the relationship between perceived trust and consumer pre-banking behaviour. The study has advanced the theoretical knowledge in decision heuristics and cognitive bias regarding consumer pre-banking decision-making. The study also provides practical proposition of how marketing practitioners in other financial sectors such as insurance can emotionally connect with consumers and develop targeted communication strategies with consumers at the pre-purchasing stage.
An antiviral disinfectant research and development process model for small to medium enterprises based within the United Kingdom
(Heriot-Watt University, 2015-05) Dean, Andrew Kristoffer; Carter, Professor Steve
Viral infections have produced commercial drivers to develop products to treat and reduce viral outbreaks and infections. Antiviral disinfectants have found particular favour in limiting new infections. The nature of viruses has however necessitated a continued stream of products successfully moving through the research and development (R&D) stage into commercial usage. With high product failure rates in R&D, and difficulties for executive and R&D managers to communicate effectively in the R&D stage, there was a perceived need from within the sector to further elucidate antiviral disinfectant R&D. Prior research had shown that the R&D stage is technically sophisticated with a requirement for management to engage in the technical, scientific and business aspects. This can be challenging for management decision-making, as many aspects of R&D, have different levels of knowledge required as well as language used. The use of models has received much attention in simplifying the R&D stage, but with little attention paid to creating shared meaning between different managers. In this study, executive and R&D managers from antiviral disinfectant UK based R&D SMEs were examined, using semi-structured case study interviews within a phenomenological paradigm. Explicitation was used to draw out meaning from respondent interviews, which showed that executive and R&D managers were from business and scientific backgrounds respectively. This resulted in difficulties in communication about R&D between manager types, which added to the opacity of R&D. It was noted that executive managers had greater knowledge of wider organisational aims for R&D, but little knowledge about what was carried out in the R&D stage. Conversely, R&D managers had greater knowledge about the scientific testing carried out in R&D, but little understanding of the business drivers of R&D. Using interview information, an alpha and beta model were constructed that showed a linear path through R&D, based predominantly on technical stages. An expanded view of the model was utilised to aid in R&D and executive management sense made of the R&D. This model contributed to the knowledge base through shared and warranted knowledge between R&D and executive managers as well as expanded model views of each of the R&D process stages. Both of these factors are novel and have created new academic knowledge as well as this model currently being used by three respondent companies.
An assessment of the nature and extent of adoption of strategic planning processes in the public sector : A case study of Zambia
(Heriot-Watt University, 2016-05) Muungo, Mweemba; Carter, Professor Steve
The adoption of strategic planning in the public sector has become common place. However, its adoption by the Zambian public sector has never been subjected to critical evaluation. The aim of this research was to investigate the nature and extent of adoption of strategic planning processes in the Zambian public sector. This research used a combination of qualitative and quantitative methods and was based on a multiple case study approach. The qualitative research used semi-structure interviews and documentary review on thirteen government ministries with the resulting data being analysed using content analysis. The quantitative research used a self-completion questionnaire on sixteen government ministries. The findings suggest an increase in the comprehensiveness and inclusiveness of strategic planning processes of the Zambian public sector. However, challenges were evident in a number of areas including; integration of organisational processes, harmonisation of strategic planning processes, completeness of the process, use of strategy tools and participation of operational staff and external stakeholders. Barriers established included; financial and human resource challenges, inadequate process alignment, inadequate enforcement mechanisms, inappropriate work culture, political interference, inadequate inter-ministerial coordination, inadequate communication of strategic plans and inadequate strategic planning knowledge among staff. The findings of this research provide an important contribution by adding the Zambian perspective to the strategic management literature which, at the time of the study, had not been documented and subjected to critical review. A further important contribution is in the provision of a set of practical guidelines to assist public managers in optimising their use of strategic planning.
The brand experience of a football club through live videos on social media : developing a tactical marketing and communications framework
(Heriot-Watt University, 2020-08) Mereu, Sebastiano; Griffiths, Doctor Ingrid
The omnipresence of social media and the dominance of brands offer professional football clubs significant opportunities to establish brand experiences intended to strengthen their relationships with fans and supporters. Moreover, the rising popularity of online video has enabled the use of live video to be increasingly incorporated within the digital media mix. However, little academic attention has been afforded towards its applicability and strategic implementation. This research addresses the gap in the literature by establishing a tactical marketing and communications framework that creates a holistic brand experience through social media live video for fans of the case study football club with the intention of enhancing viewer loyalty. A pragmatic research approach was adopted, culminating in a mix of qualitative and quantitative data collection methods. The study assessed the characteristics of live video on social media that influence viewer loyalty. Furthermore, it established significant relationships between brand experience, fan typology, and viewer loyalty. These findings ultimately informed the development of an Experiential Grid for tactical implementation of live video on social media of the case study football club. This research contributes to the brand experience literature by adding the novel perspective of social media live video and the online video perspective to the brand loyalty literature. The development of a dedicated Experiential Grid, with adaptation of its tactical implementation components to a social media environment, constitutes the main contribution for marketing and social media practitioners in the football industry.
Bundling as a strategy for a commodity service brand introduction. The impact of bundle partner image on quality and risk perception and the role of complementarity
(Heriot-Watt University, 2023-03) Schulte-Berndt, Markus
Increasing the quality perception and reducing the perceived risk of purchase improves the chances of success for new service introductions. This research investigated whether, for a new service brand introduction into the German residential electricity market, bundling with a stronger service brand enhances the perceived quality and reduces the perceived risk more than bundling with a weaker brand. In the goods category, it has been scientifically shown prior to this research that bundling with a stronger brand achieves this effect if the products are complementary. An academic knowledge gap in this area existed because this enhancement effect was yet to be evaluated empirically for services. This research applied price bundling to a new electricity service brand introduction via a survey experiment with potential customers rating electricity bundle offers. The research design was a 2*2 (brand image of bundle partner; complementarity) factorial design with analysis of variance (ANOVA) to test the research hypotheses. The results narrow the knowledge gap and contribute to professional practice by establishing that bundling with a stronger brand enhances the perceived quality and reduces the perceived risk also for services. The research furthermore demonstrated that complementarity is, independent of the bundle partner brand image, a factor to improve quality perception and to reduce the perceived risk of a new service brand.
Can alliance networks work? : examining the evolution & impacts of alliance portfolios in healthcare
(Heriot-Watt University, 2013-04) Niblett, Bradley Donald; MacIntosh, Doctor Robert
As the global competitive environment becomes increasingly complex and volatile, organisations look to networks to complement skills, resources, agility and capabilities. This research program aims to achieve a better understanding in the role of alliance portfolios in the development of dynamic capabilities of innovation and commercialisation. Through a case study approach examining the network of The Michener Institute for Applied Health Sciences, this research program uses a grounded-theory methodology to construct a conceptual framework, which is generalised to other healthcare firms’, alliance portfolios and potentially to other industries. The central assertion of this research program is that within complex and high-velocity environments, the character of a firms’ alliance portfolio facilitates the extent to which dynamic capabilities are created that result in new market opportunities, ultimately leading to competitive advantage. The results suggest that alliance portfolios develop dynamic capabilities (specifically, innovation and commercialisation) when comprised of individual alliance relationships that establish variables of trust; strategic fit of resources and vision; secure partners that operate within the same industrial sphere and/or core business as the hub-firm; and a personal commitment to the alliance. Further, those individual alliance relationships that experience variables including lofty expectations; fuzzy decision making processes; lack/loss of strategic focus; differences in corporate cultures; and poor transference/application of dynamic capabilities across different industries were unsuccessful in the development of dynamic capabilities. Initial results also suggest that the cumulative experience of the dedicated alliance function (Kale, Dyer, and Singh; 2002), and the resulting dynamic capabilities established therein, have the ability to transition (Arndt, 2008) to the alliance portfolio (Wassmer, 2010). The alliance portfolio not only acts as an egocentric catchment of an organisation’s respective alliances (Baum, 2000), but can also acts as a cumulative set of dynamic capabilities, resources, and opportunities.
Cash holdings : motivation, perception and valuation
(Heriot-Watt University, 2020-09) Adamolekun, Oluwagbenga; Jones, Associate Professor Edward Anthony Eton; Li, Assistant Professor Hao
The thesis empirically investigates the motivation, perception and value of cash holdings in the UK setting over the period 1980 to 2017. The study is motivated by the marked increase in cash holdings among UK firms, the trend in cash holdings has been subject to media and academic coverage. The research provides an empirical explanation for the upward trend in cash holdings by UK listed companies. In addition, I evaluate how the cash holdings of firms are perceived by the market during corporate investment announcements. The study addresses how cash is valued and in particular, if cash-rich firms outperform cash-poor firms in the stock market and if this effect heightens during periods of high economic uncertainty. The empirical analyses in this study are conducted using a combination of difference in differences (DiD) regression, Two-stage least squares (2SLS) regression, Fama-Macbeth regression and ordinary least squares (OLS) as the estimation techniques. The results indicate that firms increase cash holdings in response to increased competition, the increase in cash holdings is more pronounced among firms exposed to high predatory threat and financing frictions. Furthermore, cash rich firms make gains in the product market at the expense of their rivals. The gains in market share as a result of increased cash holdings is amplified among firms with low exposure to predatory threat and financing frictions. Also, since cash may convey important price sensitive information about the future strategic direction of a firm, I use a sample of 3,251 corporate investment announcements by firms listed on the London Stock Exchange over the period 2005-2016 and demonstrate that higher cash holdings at announcement results in increased market valuation of corporate investments. The relationship between cash holdings and market valuation of corporate investment becomes negative at higher levels of cash holdings. The results also reveal that the positive impact of cash holdings is more noticeable for organic investment announcements, particularly R&D. Lastly, I examine the market performance of a portfolio of abnormally high cash holding firms compared to a portfolio of abnormally low cash holding firms. The results suggest that the portfolio of abnormally high cash holdings outperforms their counterpart. The outperformance increases during periods of increased economic uncertainty. The results of this thesis have important implications for the cash holdings literature, market participants and policymakers. Firstly, the increase in cash holdings indicates limitations in the ease of accessing finance in the capital market. This points to the need to reform the existing opaque capital market to accommodate the needs of disadvantaged companies. Similarly, the increase in cash holdings during periods of increased competition intensity further reinforces the argument of an opaque capital market. It appears that the problem of financial constraint is amplified during periods of increased competition. To mitigate this anomaly, regulators could enact laws that lessen the financing deficit during such periods. Since high cash holdings have an important bearing on a firm’s market performance, shareholders and other stakeholders can pursue activist policies that actively monitor firm cash holdings policies which maximises firm value.
The choice of information and knowledge resources for financial decision-making : case of Greek shipping companies
(Heriot-Watt University, 2020-06) Gerakoudi-Ventouri, Angela (Kelly); McLaughlin, Doctor Stephen
Shipping companies, which are operating in a particularly volatile and risky environment, rely on effective knowledge management to remain competitive. Success in the shipping industry is greatly related to financial decisions. However, financial decision-making in the shipping market is demanding, not only because of the context of high uncertainty and market competition, but also in terms of the vast amounts of capital involved. Effective knowledge management processes offer the opportunity to exploit knowledge and information to the benefit of the firm’s overall performance and, in particular, to the improvement of decision-making. This research intends to link the principles of knowledge management with organisational decision-making. Thus, by first examining the preferred types of information resources to inform financial decisions, this research also highlights the importance of embedding knowledge management practices into the organization with a view to improving decision-making. This research explores what types of knowledge and information resources senior managers of Greek shipping companies prefer to use, so as to inform their financial decisions. The purpose of this research is, firstly, to identify the preferred types of knowledge and information resources for managers making financial decisions. More specifically, this research investigates what factors (such as demographics, or the characteristics of the resources themselves) affect the choices of managers in this respect. Finally, this research examines whether the behaviour of managers towards knowledge and information is active, in the sense of actually searching for and making use of knowledge and information resources, when they make financial decisions. The role of knowledge management practices with regards to organisational decision-making is also evaluated. To determine the use of knowledge and information resources in the financial decisions of managers of Greek shipping companies, 49 semi-structured, face-to-face interviews in total were conducted with managers of shipping companies operating in Piraeus, Greece, as part of a multiple-case-study methodology. Senior managers were interviewed with a view to exploring potential trends in their decision-making styles, especially concerning their preferred types of knowledge and information resources. The analysis of data was based on a qualitative approach. The findings of this research made a particular contribution by distinguishing the information-resource preferences in the shipping industry. Results show that, senior Greek shipping managers prefer using both written and verbal sources of information, as well as personal and impersonal resources, depending on each case. Additionally, this research identifies that important criteria determining the value of an information resource are trustworthiness, ease of use, accessibility, specialization and exclusivity. This research indicated that demographic factors like educational background and working experience influence the use of knowledge and information resources. In parallel to that, managers’ personality characteristics such as patience, self confidence, risk tolerance, being a good listener and having no egoism contribute to make more effective decisions. Finally, the research findings confirm the managers’ active engagement in information seeking in order to make informed and effective decisions. In effect, the results suggest that managerial decision-making is a combination of data, past experience and intuition. Additionally, this research makes recommendations for enhancing managerial practices in the shipping companies through the use of knowledge management tools and processes.
Climate risk perceptions in the Ontario (Canada) electricity sector
(Heriot-Watt University, 2018-02) Dowbiggin, Anna; Jankowicz, Professor Devi
This thesis examines management cognition of climate risks in the electricity sector in Ontario (Canada). Risk perception literature is combined with corporate adaptation and risk management literature to offer a broad conceptual framework of climate risk readiness among power producers and utilities. This research aims to move management cognition of climate change past prior contributions which considered climate risk as being solely physical in nature. In this work, eight exogenous and endogenous factors relating to climate risk are examined for their influence on how management may view a wider spectrum of climate change impacts. Using an inductive research approach, 20 in depth case studies explore how electricity executives/senior managers perceive those risks using construct elicitation (repertory grid technique). Findings are triangulated with a narrative analysis of their corporate reportage of climate risks, to gain deeper insight into the complex phenomena of climate risks for the sector. Findings show some similarities and some appreciable differences in both groups’ view of climate risks despite their legitimately contending positions in industry. Overall both power producers and utilities are predominantly concerned with risk analysis and assessment of climate related risks, and less with risk response, suggesting at present the sector remains in an analytical state. The potential benefits of this research approach will provide useful insights to multiple groups including managers and policy makers.
Commercial banking and financial inclusion of Uganda’s middle class - the case of Kampala city
(Edinburgh Business School, 2023-06) Oyet, Julia Clare Olima; Bramley, Professor Glen
Studies have demonstrated that financial inclusion or being part of a formal financial system, has the potential to improve the quality of life, and is one of the key pillars of economic growth, given that it promotes social inclusion and reduces poverty levels. Consequently, a number of jurisdictions including Uganda, have over the years put in place deliberate policies to encourage the financial inclusion of their citizenry. However, the national census of 2014 revealed that approximately 57 percent of the urban households did not have bank accounts. Most of the middle class reside in urban areas and, therefore, it implies that a large number of them appear to be excluded from the banking sector. It is worth noting that in the context of Uganda and this research, bank account do not include mobile money accounts, although mobile money companies are regulated by the Central Bank. The middle class play a significant role in promoting economic growth especially through their purchasing power. As such, their continued exclusion from the formal banking sector, specifically that which is regulated by the Central Bank, could have far-reaching implications on the pace of the country’s economic growth. A significant proportion of bank deposits in the formal banking sector regulated by Bank of Uganda sit in Commercial banks, with a small percentage held in Credit Institutions and Micro finance Deposit Taking Institutions (MDIs). As such, this study, sought to understand the major factors affecting access, usage and quality of commercial banking services accessed by the middle class, using a case study of Kampala which is the capital city of Uganda. It has been ascertained that financial inclusion is sensitive to context and is affected by the emotions of people. It was against this background that a literature review on factors affecting financial inclusion in six (6) countries was conducted. The countries spanned across the developed and less developed world namely: United States of America, United Kingdom, India, Nigeria, Kenya and Uganda. The review gave the researcher a broad view of the various factors affecting financial inclusion or access to formal financial services generally, excluding mobile money. These were subjected to further research, to ascertain whether they affected the middle class in Uganda. In order to obtain credible research findings, a mixed methods research approach was adopted. Logistic regression and the Linear Probability Model (LPM) were used to analyse the primary data which was collected using questionnaires completed by a quasi random sample of two sub-groups of the urban middle class. Follow-up qualitative interviews were held with respondents who were willing to share additional information. This enabled the researcher obtain a better appreciation of the motivations and experiences lying behind the statistical results. The results of the study revealed that the major factors affecting financial inclusion amongst the Ugandan middle class were; high bank charges, inadequate handling of customer complaints, fear of compromised privacy, low trust in the banking sector, long lines in banking outlets, negative experiences with banks, unstable internet and ATM services, amongst others. Arising from these findings, and benchmarking with other countries, the study has highlighted a number of recommendations for various stakeholders. The Government of Uganda should consider the need to have a professionally managed and widely marketed Government owned commercial bank with a large branch network to cater better for the needs of the middle and lower class Ugandan. The Central Bank should consider engaging with commercial banks to explore the possibility of opening ‘basic bank accounts’ or ‘no frill accounts’ which do not attract any fees or charges, for certain segments of the population, as has been done in other jurisdictions. Additionally, Bank of Uganda should enhance its effort in strengthening the customer complaints management process by both the commercial banks and within the Central Bank itself. Alternatively they could consider establishing a Consumer Protection Department or Unit for financial services. The Government should intensify its drive of providing stable, faster and affordable internet across the country in order to better support alternative channels of banking. Finally, the public should be better informed about the role of the Deposit Protection Fund of Uganda in compensating depositors up to the insured limit in the event of a bank closure.
Communication, behavioural biases and financial markets ; a case study of Tesla Inc.
(Heriot-Watt University, 2022-03) Habach, Firas Nadim; Adams, Professor John
This aim of this research is to evaluate the effect of corporate communication on setting investor expectations about a stock´s fair valuation. By means of a case study analysis of the Tesla Inc. stock price since the initial public offering (IPO), it seeks to empirically explore the extent to which investor sentiment was influenced by fundamentals or by behavioural aspects. The increased internet connectivity, the additional information available to economic agents or investors (Stigler, 1961) as well as higher transparency (Leff, 1984) of companies has impacts in the context of the efficient market hypothesis (Fama, 1970) and Behavioural Finance (Odean 1998a, Kahneman and Tversky 1973, 1979, Scharfenstein and Stein 1990). The methodology employed is positivist, utilizing statistical time-series techniques/models on the basis of Arbitrage Pricing Theory (Ross, 1976), Vector Autoregression (VAR), Vector Error Correction Models (VECM) and Impulse Response Functions. The data sources, by means of web-crawlers, algorithms and manual interpretation of media, operationalize the sentiment indicators required (Nisar and Yeung, 2018). Accordingly, it seeks to determine whether stock price movements were pre-dominantly explained by aggregated or individual sentiment variables representing a meaningful tool to proxy emotions and social media in response to communication. Through a deductive approach, patterns and theoretical underpinnings are sought to be explained by communication-driven deviations from Tesla Inc.´s intrinsic value. Ultimately, it seeks to re-emphasize that traditional finance theories require the adoption of behavioural proxies to appropriately capture short-term movements as informational advantages can still yield additional results. In so doing, this research evaluates indicators of selected behavioural biases associated to communication that may impact the value of incorporating fundamental information and help explain changes in share prices. Therefore, this research is geared to establishing an understanding of and extent to which sentiment determinant corporate communication should be focused and provide a basis to be replicated for similar case studies.