???I digitize so I exist???. Searching for critical capabilities affecting firms??? digital innovation

Taking into account the increasing importance of digitalization to characterize companies' competitive advantages, and the contextual growing research interest in digital transformation, this paper focuses on dynamic capabilities affecting firms' digital innovation in terms of creation of new offerings, processes or solutions by using a wide range of digital technologies. By means of quantitative research on a sample of managers of 210 firms in Italy, the study performs an ordinary least squares regression to investigate whether and how different knowledge-based capabilities support the process to develop digital innovation, taking into consideration the moderating effect of social media. Despite some limitations, essentially due to the geographical focus of the analysis, the paper contributes to better understand the effect of digitalization in the distinguishing context of the Italian companies, providing useful insights to rethink firms' innovation models

Identifying the Classification of EU Countries by an Alternative Variable: The “Stakeholders’ Perception”

Since the first part of 20th century, there was a strand of literature that analyze international differences in financial accounting practices and use these differences to classify countries into groups having similar characteristics. For a long time, the two main accounting systems that have been analyzed in these studies were the Anglo-Saxon accounting system and the Continental Europe one. Notwithstanding the last decades have been characterized by a widespread harmonization process through an extensive and often compulsory adoption of IAS/IFRSs, the situation did not changed so much, because there are still a lot of relevant differences in applying IAS/IFRSs. The aim of this research is to contribute to the literature in theme of countries classification using a different type of variable: the “stakeholders’ perception” instead of “accounting practices”. Using a quantitative statistic methodology, the cluster analysis, we identify a three-groups classification of the EU countries based on the answers about the costs and benefits of IFRS implementation issued in EU public Consultation, launched ten years after their mandatory application.</jats:p

THE EFFECT OF PYRAMIDAL STRUCTURES ON EARNINGS MANAGEMENT: EVIDENCE FROM ITALIAN LISTED COMPANIES

In recent years, business administration researchers and economic operators have become increasingly interested in ways to protect minority shareholders from opportunistic behaviour by the majority shareholders in control of company management. Scholars have further extended their attention to the systems of Corporate Governance after the failures and financial scandals involving some important international groups such as Enron (United States), Parmalat, and Giacomelli (Italy). These events have focused attention on the opportunistic use of technical discretion when drawing up financial information in the presence of incentives or subsidies linked to the expropriation of potential wealth generated through the Corporate Governance structure adopted by companies. Against this background of applying emphasis to the information included in financial statements as an important tool for the management of Corporate Governance conflicts, this paper intends to analyses the relationship between the practices of earnings management and the adoption of a pyramidal group structure within the Italian financial market. In particular, the contribution aims to prove whether earnings manipulation practices have been adopted with a higher frequency and a greater intensity within the listed pyramidal groups as well as whether any statistical relationships exist between the pyramidal structure and the earnings management phenomenon

The challenges in integrating ESG factors into banks’ credit department: a knowledge management enhanced framework

Purpose – Assuming that knowledge management is a pivotal issue in business to improve and maintain competitive advantages, this paper, by considering a real case, aims to investigate how knowledge management is useful to face challenges about the integration of environment, social, and governance (ESG) factors, filling the gap in the literature regarding knowledge management and ESG in the banking world Design/methodology/approach – Starting from the analysis of the more relevant literature on the topic, we describe an illustrative real case through interviews with the credit department of an Italian bank that has adopted a specific sustainability approach. We discuss this case in the context of the outlined theoretical background to explore the trends and challenges of ESG integration. The case study allows us to evaluate and expand our theoretical framework, leading to a greater understanding of the complex phenomenon under investigation. Findings – Based on the analysis of the literature combined with the insights that emerged from the experience of the real case, we show that there are three primary factors to consider: data issues, competencies, and workflow. We outline an enhanced knowledge management framework displaying the complexity emerging from the integration of ESG into a bank’s credit department and identify the best practices to pursue. Originality/value – The proposed enhanced knowledge management framework offers a guideline to orchestrate ESG integration into banks’ credit departments, considering the increasing need to frame a sustainability-oriented strategic approach that emerges from academic and practical enquiries. This research represents an initial attempt to investigate the integration of ESG factors in the banking system through the lens of knowledge management. The strategic nature of the ESG approach clearly appears in a dynamic environment where stakeholder pressures and regulatory evolutions are strong. Practical implications – Given the increasing pressure toward the incorporation of ESG factors into the banking sector, the practical implications of the study are relevant as they provide guidelines for action. Specifically, the practical problems highlighted by the real case, like the priority on themes like questionnaires, the need for ad hoc commissions, and workflow, drive the attention of decision-makers on key aspects to effectively adopt an advanced knowledge management approach aimed at improving the ESG integration. Considering the effect of the banking system on the economy, the best practices we have identified can also have a positive impact on society as a whole

How and when corporate social performance reduces firm risk? The moderating role of corporate governance

This study aims to explore the impact of corporate social performance (CSP) on firm risk, and it proposes the moderating role of corporate governance (CG) among this relationship. Although the literature on corporate social responsibility is extensive, there is still a lack of knowledge about how CSP influences firm risks, as well as the role of CG in this relationship. To fill this gap, we have empirically tested the impact of CSP on a firm's risk through a longitudinal analysis on S&amp;P 500 firms from 2015 to 2019. Results show a significant negative relationship between CSP and firm risks, which is positively moderated by CG mechanisms. Our study contributes to the empirical research on corporate social responsibility and it provides insights for managerial decisions to encourage managers to pursue environmental and social practices that reduce the firm risk, with positive impacts on the firm value

Evaluating fashion retailers’ intellectual capital: Key Money as a part of customer capital.

Purpose – The purpose of this paper is to enrich the scientific and managerial debate on intangibles by placing the concept of Key Money within the broader concept of Intellectual Capital, and by proposing an evaluation approach for a portion of the latter, focusing the analysis on fashion retailers. Design/methodology/approach –This research focuses on the fashion industry, given that Key Money gains particular significance and accounted for in fashion retailers’ financial statements. A comparative case study is presented with regard to the application of two evaluation methods proposed to some fashion retailers operating in Italy. Findings – This paper defines a suitable placement for Key Money within the vast structure of Intellectual Capital. The research shows that the two methods give “very close” Key Money values, thus laying the foundations for a theoretical articulation of interest to be further explored in future researches. Originality/Value – The document represents a first in-depth examination regarding the evaluation and inclusion of Key Money in the intellectual capital. A further element of originality lies in having interpreted the Key Money in a perspective closer to the world of intangibles and competitive strategies, to the detriment of the previous (meagre) settings that placed it within the real estate branches of stud