Executives' pay–performance link in China: evidence from independent and gender-diverse compensation committees

Purpose In this paper, the authors investigate whether an independent and gender-diverse compensation committee strengthens the relationship between top managers' pay and firm performance in Chinese companies. The authors also investigate whether the independent compensation committee composed of all male directors is effective in designing the optimal contract for executives Design/methodology/approach The authors use data from A-share listed companies on the Shenzhen and Shanghai stock exchanges from 2005 to 2015. As a baseline methodology, the authors use pooled ordinary least square (OLS) regression to draw inferences. In addition, cluster OLS regression, two-stage least square regression, the two-stage Heckman test and the propensity score matching method are also used to control for endogeneity issues. Findings The authors find evidence that an independent or gender-diverse compensation committee strengthens the link between top managers' pay and firm performance; that the presence of a woman on the compensation committee enhances the positive influence of committee independence on this relationship; that a compensation committee's independence or gender diversity is more effective in designing top managers' compensation in legal-person-controlled firms than they are in state-controlled firms; that gender diversity on the compensation committee is negatively associated with top managers' total pay; and that an independent compensation committee pays top managers more. Practical implications The study results highlight the role of an independent compensation committee in designing optimal contracts for top managers. The authors provide empirical evidence that a woman on the compensation committee strengthens its objectivity in determining top managers' compensation. The study finding supports regulatory bodies' recommendations regarding independent and women directors. Social implications The study findings contribute to the recent debate about gender equality around the globe. Given the discrimination against women, many regulatory bodies mandate a quota for women on corporate boards. The study findings support the regulatory bodies' recommendations by highlighting the economic benefit of having women in top management positions. Originality/value This study contributes to literature by investigating the largely overlooked questions of whether having a gender-diverse or independent compensation committee strengthens the relationship between top managers' pay and firm performance; whether an independent compensation committee is more efficient in setting executives' pay when it is gender-diverse; and whether the effect of independent directors and female directors on top managers' compensation varies based on the firm's ownership structure. Overall, the main contribution of the study is that the authors provide robust empirical evidence in support of the managerial power axiom

Modeling the Enablers to FinTech Innovation in Saudi Arabia: A Hybrid Approach Using ISM and ANP

Financial technology (FinTech) has emerged as a significant financial sector breakthrough due to the sharing economy, new legislation, and IT advances, contributing to its fast growth. Under a new national policy, Saudi Arabia intends to increase the number of FinTech firms. Thus, it is necessary to develop a more profound understanding of what critically enables FinTech innovation, how these enablers are interconnected, and their priorities. This research study aims to identify and model the critical enablers of FinTech innovation by exploring contextual relationships among them and their importance. A hybrid approach was followed using interpretive structural modeling (ISM) and an analytic network process (ANP) to achieve the objective. Eleven enablers and their essential components were extracted from the literature and confirmed by Saudi FinTech experts who provided input data on their linkages and relative importance through interviews and a designed questionnaire. The developed model reveals the enablers’ structure in terms of their driving and dependence powers and classifies them into six levels with relative importance to each other. The developed model in this research puts forward a holistic perspective on FinTech and innovation, assisting decision-makers, regulators, policy designers, practitioners, and technology developers to create effective ways to safeguard the FinTech industry’s growth

Modeling the Barriers Surrounding Digital Government Implementation: Revealing Prospect Opportunities in Saudi Arabia

Digital government (DG) is key to more efficient, transparent, and successful governance processes in meeting beneficiaries’ demands. However, its implementation challenges traditional conceptions. This research study aims at modeling barriers surrounding DG implementation in Saudi Arabia. The interpretive structural modeling (ISM) approach was followed. Thirteen barriers to DG implementation were identified and used to collect DG experts’ opinions on the barriers. The developed model classifies the barriers based on their dependence and driving powers and reveals interrelationships among them on multiple levels. Key findings showed that institutional habits are a foundational barrier affecting political coordination. Both, in turn, lead to ethical concerns and perceived barriers related to law, organizational practice, finances, and technological resources, which all lead to risk aversion and capacity and skills barriers, consequently resulting in a lack of engagement with and demand from users/citizens, a lack of awareness/strategic thinking, and legal framework issues, thereby resulting in technological infrastructure issues, difficulty articulating benefits to beneficiaries, and political management support and leadership barriers. Implications of the developed model include providing a better understanding of the contextual interrelationships between the barriers, which will, in turn, assist in fostering current implementation successes and opening prospects for future opportunities in Saudi Arabia

A DEMATEL-ISM Integrated Modeling Approach of Influencing Factors Shaping Destination Image in the Tourism Industry

Tourism is an upcoming industry with a high potential for future growth. Many factors influencing destination image (DI) are affecting tourism development. Therefore, studying factors influencing DI is essential. This research study aims to model the factors influencing DI in the tourism industry. A total of 15 factors were the focus of the study. Data on the factors were collected from 10 tourism industry experts. An integrated modeling approach was adopted using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Interpretive Structural Modelling (ISM). Interrelationships between the factors, causal effects, relative importance weights, ranks, and driving and dependence powers were analyzed to develop causal and interpretive structures. The developed model revealed that political stability is foundational to other aspects of DI. Then, factors related to safety and security, policy rules and regulations, tourism infrastructure, information and communication technologies, environment, economic development and affluence, fairs, exhibits, and festivals in a destination should be considered. These affect others related to health and hygiene, transport infrastructure, natural and cultural resources, human resources, quality of services, prices, hospitality, friendliness, and receptiveness aspects in a destination. The developed model provides a valuable framework for decision-makers in the tourism industry to enhance and shape the DI

Analysis of the Barriers to Smart City Development Using DEMATEL

This study analyzes the barriers to developing smart cities (SCs) using the decision-making trial and evaluation laboratory (DEMATEL) approach. The primary objective is to identify, classify, and assess the main barriers hindering the progress of SCs. Through an extensive literature review, twelve main barriers were identified. The DEMATEL approach models and analyzes the relationships among these barriers based on expert input. The results reveal that technical problems, a lack of infrastructure, and high costs are classified as cause barriers. Security and privacy concerns and the absence of coordinated planning are classified as effect barriers. This study emphasizes the need for established criteria and iterative development requirements. Although the influence of knowledge and skills gaps and a lack of awareness is less significant, these aspects still require attention. The findings suggest that a comprehensive approach focusing on technical solutions, infrastructure development, strategic planning, and cybersecurity measures can effectively overcome barriers. Regular evaluation of barrier dynamics is crucial for implementing adaptive measures. The results provide decision-makers with a valuable model to address the challenges and foster the efforts of SC stakeholders

Performance Evaluation of Retail Warehouses: A Combined MCDM Approach Using G-BWM and RATMI

Background: The retail sector has experienced significant growth in recent years, necessitating efficient supply chain management and sustainable logistics practices. Evaluating the performance of retail warehouses is crucial for meeting customer expectations and enhancing operational efficiency. Methods: This study employed a combined multi-criteria decision-making (MCDM) approach, using the group best–worst method (G-BWM) for weighting criteria and ranking the alternatives based on the trace-to-median index (RATMI) for warehouse ranking. The performance criteria were cost, quality, time, productivity, and safety. Data were collected from four mega retail warehouses in the western region of Saudi Arabia for evaluation and analysis. Results: The evaluation of retail warehouse performance using the MCDM approach provided valuable insights for decision-makers and warehouse experts. The criteria weights were determined using the G-BWM, and the RATMI enabled the ranking of the warehouses based on their weighted performance scores. The results highlight the strengths and weaknesses of each warehouse, facilitating strategic planning, resource allocation, and operational improvements. Conclusions: This study presents a novel combined MCDM performance evaluation approach for retail warehouses. The study has implications for effective decision-making processes, resource allocation, and operational efficiency. Furthermore, it serves as a foundation for future research, exploring additional dimensions of warehouse performance and enabling sustainable logistics within the broader supply chain context

Optimization of Oxidative Desulfurization Reaction with Fe2O3 Catalyst Supported on Graphene Using Box-Behnken Experimental Method

In this study, the catalyst activity of Fe2O3 supported on Graphene for Iraqi gas oil oxidation desulfurization (ODS) by hydrogen peroxide (H2O2) was investigated. The prepared catalyst was synthesized by wet impregnation for ferric nitrate as a Fe2O3 precursor while Graphene represented as catalyst support. The synthesized catalyst was characterized by XRD, FTIR, and EDS analysis. The experiments were designed according to three-level for three variables by Box-Behnken experimental design; Stirring time, catalyst dosage and temperature while the sulfur removal efficiency acts as experiment response. Catalyst activity was studied by ODS reaction for Iraqi gas oil (sulfur content 9400 ppm) at temperature range (40-60 ºC), stirring time (160-240 minutes) and catalyst dosage (0.5-2.5 g), the results show maximum sulfur removal efficiency 90% at stirring time, catalyst dosage and temperature 240 min, 1.5 g, and 60 ºC, respectively. ANOVA analysis shows the important effect of each independent variable on sulfur removal efficiency (response) as following influential order; stirring time, reaction temperature and catalyst dosage. Kinetics calculation showed that the ODS reaction obeys pseudo first-order reaction with reaction rate constant equal 1.0837, 1.5893, and 2.5053 at temperature 40, 50, and 60 ºC, respectively, while activation energy equal 36.26 kJ/mol. Copyright © 2020 by Authors, Published by BCREC Group. This is an open access article under the CC BY-SA License (https://creativecommons.org/licenses/by-sa/4.0).

A Novel Strategic Approach to Evaluating Higher Education Quality Standards in University Colleges Using Multi-Criteria Decision-Making

Universities worldwide strive to achieve excellence in research, learning, teaching, and community services, which are the pillars of their strategic plans. However, satisfying international ranking criteria might not directly result in achieving their strategic objectives. This paper proposes a new approach to rank university colleges by evaluating their educational quality. Standard sets of criteria from multiple international university ranking systems and a university’s strategic plan’s Balanced Scorecard perspectives were cross-mapped for the evaluation. A new multi-criteria decision-making-based framework was applied to six colleges of a non-profit university in the Middle East. It revealed their performance rankings and contributions to the university’s educational quality objectives. This paper offers a novel approach for universities to develop strategies that satisfy multiple international ranking systems while achieving their strategic goals concurrently and as per their priorities. Implications include informing university leaders on the most contributing colleges and assisting in pinpointing quality shortcomings and their causes. This helps universities design better performance indicators and allocate resources to achieve educational excellence. This paper puts forward a new approach for universities to unify their efforts in satisfying the requirements of multiple international ranking systems while achieving their strategic goals