Abdul-Nasser El-Kassar

Effect of internal audit function on corporate governance quality: evidence from Lebanon

The internal audit function is a compliance mechanism that promotes good corporate governance. Recent studies detected a need to improve corporate governance structures in developing countries. This study evaluates the effects of the internal audit function on the quality of corporate governance in the context of multinational corporations operating in Lebanon. The results revealed that the quality of internal audit function significantly affects corporate governance, particularly on its audit committee and management aspects. Moreover, the results showed that maintaining a high level of independence and expertise in the audit department can have a great influence on the overall quality of corporate governance, as well as on the effectiveness of both the audit committee and management. The results also indicated that the reliability of the internal audit significantly influences the management characteristic of corporate governance. In contrast, the board of directors and external auditors are less influenced by the internal audit.

Corporate ethics, governance and social responsibility in MENA countries

Purpose Studies show that corporate governance (CG) and corporate social responsibility (CSR) are driven by ethical practices. The relationships between corporate ethics, CG and CSR have been heavily studied indicating significant associations. The purpose of this paper is to examine the mediating role of CG on the relationship between ethics and CSR. Design/methodology/approach Data were collected through questionnaires from small to medium-sized enterprises (SMEs) in the Middle East and North Africa (MENA) countries. The results were analyzed using structural equation modeling. Findings The results indicate that ethical practices have positive impact on CG, and in turn CG has a positive impact on CSR. The results also reveal a mediating effect of CG on the relationship between ethics and CSR. Research limitations/implications The sample selected is based on two countries in the MENA region, Egypt and Lebanon. Only SMEs are considered. Practical implications The innovative capabilities of SMEs in developing and emerging economies could be enhanced through corporate ethical practices which guide management for more CSR engagement through good CG. Originality/value The study contributes to corporate ethics, CG and CSR literature by providing evidence from a significant region, with both developing and emerging economies, on the mediating role of CG on the relationship between ethics and CSR.

Conflict resolution styles and personality

Purpose – Conflict in the workplace creates a challenge for many of present day managers. The purpose of this paper is to explore the moderating effect of generations X and Y on the relationship between personality and conflict handling styles. Design/methodology/approach – The study is conducted using a sample of 199 employees working in the electronic retail sector in a non-Western culture. The five-factor model of personality traits is used to measure personality, while conflict styles are measured using Rahim’s Organizational Conflict Inventory II. Findings – Results indicate that generations X and Y moderate the relationship between specific personality traits and conflict handling styles. Research limitations/implications – This study investigated the moderating effect of generations X and Y on a sample of employees within the electronic retail service sector in Lebanon. It is recommended that future research examine such a relationship in other sectors and cultures for generalizability. Since gener...

The Mediating Effects of Employee-Company Identification on the Relationship between Ethics, Corporate Social Responsibility, and Organizational Citizenship Behavior

ABSTRACT The purpose of this study is to examine the relationship between corporate social responsibility and corporate ethics on one hand and organizational citizenship behavior on the other. The relationship is investigated taking into consideration the employee-organization identification factor. A conceptual model was proposed and empirically tested using survey data and deploying the PLS analysis. The model proved to be of good-fit and most hypotheses were supported. Results were discussed, limitations were presented, and recommendations for future research were set.

Effects of corporate sustainability practices on performance: the case of the MENA region

Sustainability focuses on the effect of present actions on societies, environments and ecosystems of the future. The purpose of this paper is to discover to what extent the MENA (Middle East and North Africa) region corporations carry out various aspects of corporate sustainability. This paper studies corporate sustainability practices and examines the association between corporate sustainability practices and performance in the MENA region.,A thorough literature review was conducted. The findings indicate six key categories/constructs that can be used as indicators for measuring corporate sustainability and performance. Based on the literature review, a theoretical framework was constructed and tested. Data for this quantitative and explanatory study were obtained through a self-administered survey which was distributed to senior managers at corporations in the MENA region.,The findings of this study show that the corporations operating in the MENA region are underachieving in all aspects of sustainability except for the energy management facet. Larger-sized companies tend to be more involved in corporate sustainability practices in the categories of internal and external education, external health and resources and energy management. This study finds the existence of a strong positive relationship between each sustainability category and each performance category.,Most studies on sustainability focus on North America, Europe and East Asia, not the MENA region. The findings will help corporations in the MENA region become aware of the importance of increasing their engagement in the sustainability aspects that they lack, as this will lead to a boost of their overall performance.

Strategic Planning, Performance And Innovative Capabilities Of Non-Family Members In Family Businesses

Drawing upon the resource-based view and agency theories of family businesses, this study examines the role of strategic planning in developing non-family members’ innovative capabilities and the effect of strategic planning on family businesses’ performance mediated by those capabilities. It was found that strategic planning positively affects the business’ performance, it helps non-family members develop their innovative capabilities which have a positive effect on the performance of the business mediating the relationship between strategic planning and performance. A survey was distributed to Lebanese family businesses for data collection. This study contributes to theory and practice; it suggests more fields of studies and helps family firms’ owners in improving the business’ performance.

Reasons behind the non-application of the activity based costing system in developing countries, case of Lebanon

The Activity Based Costing (ABC) system, despite its spread in the developed countries and the recognition of its importance in the developing countries, is not adopted in the service industry in Lebanon while costing output. With the service industry contributing to more than seventy percent of the GDP in Lebanon, this makes it a subject of interest to justify the non-application of the ABC system in this sector. In this study, the authors seek to examine the reasons behind the reluctance of decision makers from applying the ABC system from the following perspectives: the lack of training of employees and the management’s support, the top management’s perception of the system’s high consumption of time and financial resources, the difficulty of collecting data, and the necessity to change the internal culture and the commitment of controllers. The study relies on prior research undertaken on this topic in different countries. A sample of 50 respondents from different service industries like banking, auditing, education and insurance provided the data of this study through answering the questionnaires and interviews. Two questionnaires are used; the first distributed to ABC system users and the second for non ABC users, also five interviews are conducted with senior level managers. The questionnaires are self-administered in order to increase the response rate, given the fact that the direct contact in the Lebanese culture proves to generate more efficient and effective data than the indirect contact. Hypotheses are developed stating the most significant reasons that are tested through survey and interviews. The data collected elaborates the companies’ point of view regarding the implementation of the ABC system as well as the employees’ and management’s personal opinions about it. The data is analyzed using the SPSS program and the results reveal that the real factors prohibiting the application of the ABC system are the lack of commitment of controllers and employees, the necessity to change the internal culture, the availability of financial and time resources and the satisfaction with the current costing system. The employees’ knowledge and training are not major obstacles in implementing the ABC, similarly for the difficulty in data collection about cost drivers. Other factors for this non-application appear to be the priorities of companies in other considerations, and the lack of technology. The outcome of the study provides a vital insight into the reasons behind such lag in the adoption of the ABC system in developing countries like Lebanon.

Managing span of control efficiency and effectiveness: a case study

Purpose The purpose of this paper is to address the following issues: first, the significance of the three independent variables (the chassis, trim, and assembly departments) on the three outputs (direct run loss first time capability, jobs per hour (JPH) lost, and injury rate); second, the optimal level of span of control based on the best achieved outputs; and third, whether increasing the span of control post 2009 improved manufacturing outputs in comparison with a span of control pre 2009. Design/methodology/approach The optimal level of span of control at the automotive Big Three (Chrysler LLC, Ford, General Motors) is investigated using design of experiments. Findings The analysis shows that the variables are significant for all outputs, except for chassis on injury. All three variables deteriorate as the span of control increases. The paper indicates that the lower the span of control the better the output variables. Originality/value Based on the recommendations given by the managers at the Big Three facilities visited, the top three variables that were utilized from the assembly facilities for this study are the span of control at the Chassis, Trim, and Assembly departments, and the outputs are Direct Run Loss First Time Capability, JPH Lost, and Injury Rate.

HRM and Innovative Capabilities of Family Businesses

ABSTRACT Drawing upon the resource-based view and agency theory, this study examines the effects of human resource management and the innovative capabilities of nonfamily members on the performance of family businesses. The results show that training and innovative capabilities influence performance, while strategic planning strengthens the relationship between human resource policies and performance. Moreover, family businesses with weak governance practices can initially benefit from innovation, but they must enhance their governance to sustain growth in performance. Family businesses should focus on the selection and training of nonfamily members to increase their innovative capabilities and enhance their performance.