Hassan R. HassabElnaby

RETRACTED: Enterprise resource planning systems and non-financial performance incentives: The joint impact on corporate performance

This article has been retracted: please see elsevier policy on article withdrawal (http://www.elsevier.com/locate/withdrawalpolicy).the publisher has decided to retract this article, and the editors support the decision of the publisher.the “report of judith a. Malone, bentley university ethics officer, concerning dr. James e. Hunton” indicated that “the whole body of dr. Huntons extensive research while a faculty member at bentley university must now be considered suspect” (https://www.bentley.edu/files/hunton%20report%20july21.pdf). Based upon the information provided by the co-authors, dr. Hunton collected the data for this article. There was never the opportunity for the co-authors to collect the data or interact with the study participants. Given the inability to provide an independent evidence of the validity of the primary data, the publisher considers that the scientific integrity of the article cannot be guaranteed. Therefore, the publisher decided to retract the article, and the editors support this decision. There is no evidence that the co-authors were aware of or complicit in dr. Huntons actions.

The Impact of ERP Implementation on Organizational Capabilities and Firm Performance

Purpose – This paper examines whether the implementation of ERP impacts both business strategy and organizational capabilities which in turn enhance firm performance. Specifically, the paper investigates the mediating effect of business strategy and organizational capabilities on the relationship between ERP implementation and firm performance. Design/Methodology/Approach – Using secondary data collected from more than 400 firms, this study tests the relationships among these variables. Findings – ERP implementation has a positive impact when a firm employs a prospector business strategy. A prospector business strategy enhances the firm’s ability to achieve organizational capabilities and enables the firm to achieve higher levels of financial performance. Practical Implications – ERP implementation encourages and supports a prospector strategy. ERP not only supports cost control, but also support new product development and introductions. The prospector firm seeks better information to support decision making, develop new and innovative products that drive revenue growth, and build efficient and effective operations that enhance return on assets. Originality/Value – This paper reports the mediating effect of business strategy and organizational capabilities on the relationship between ERP implementation and firm performance. This study use cybernetic control, resource-based view of firm, and dynamic capabilities theories to develop and integrate this research.

Audit Committees Oversight Responsibilities Post Sarbanes‐Oxley Act

In this study we examine the oversight responsibilities of audit committees in the post Sarbanes‐Oxley Act of 2002 (SOX) era. The results show that audit committee oversight responsibilities assigned and disclosed in proxy statements expanded post‐SOX compared to pre‐SOX. We design a survey instrument to measure the difference between the perceived oversight responsibilities of audit committee members and the oversight responsibilities actually assigned in the proxy. Our results indicate that although audit committees made a substantial commitment to increase their assigned responsibilities over the period of 2001 to 2004, they still need to do more to meet the many additional challenges facing them in a post‐SOX environment. Overall, our results suggest that the intent of SOX‐for audit committees to be more involved and active in the oversight role of an organization‐is becoming institutionalized. These results should be interesting to policy makers, a variety of interest groups, and accounting researchers.

Nonfinancial Performance Measures and Earnings Management

We examine the earnings management implications of using nonfinancial performance measures in executive compensation contracts. We argue and test that when a managers compensation is based on financial and nonfinancial performance measures, he/she has less incentive to manipulate earnings to maximize the compensation. Using panel data covering the period 1992-2005, we compare earnings management behavior for a sample of firms that used both financial and nonfinancial measures to a matched sample of firms that based their performance measurement solely on financial measures. We consider the effect of the match between the use of nonfinancial measures and firm characteristics on earnings management behavior. The results are mainly consistent with a reduction in earnings management behavior for those firms that rely on nonfinancial performance measures in their compensation contracts.

A proposed framework for renewable energy technology commercialization and partnership synergy: A case study approach

Purpose - – The purpose of this paper is to propose a theoretical framework for renewable energy (RE) technology commercialization and partnership synergy. The interrelations/influences between external/internal factors, stakeholders’ partnership synergy, and resources in the form of dynamic capabilities and implementation mechanisms are used in this framework to explore the path toward overcoming non-technical barriers for RE technologies commercialization success. Design/methodology/approach - – Prior relevant research/literature is reviewed to derive the proposed theoretical framework constructs, while insight information on relationship between them is gained through case study methodology. The results of four case studies along with 16 validity/checkpoint interviews were used to support/reject 25 propositions linking the constructs. Findings - – The findings of the study supported 24 out of 25 propositions representing these relations, whereas one was rejected. The framework suggests that partnership synergy, if achieved, produces a unique internal and external resource combination that will result in successful technology commercialization. Research limitations/implications - – This study is limited to RE technologies and did not focus individually on non-technical barriers. Future research may extend into other industries and explore the impact of partnership synergy on each non-technical barrier of technology commercialization. Originality/value - – Due to absence of economic theory of synergy there is a gap in academic literature regarding partnership between stakeholders of innovative technologies, the level of its synergy and their relation to successful commercialization. The study attempts to fill this gap to some extent through the produced theoretical framework, which might also help a broad array of RE projects’ participants maximize the returns by realizing full advantage of collaboration with other stakeholders.

Debt Covenant Violation and Earnings Management: A Neuroscience Approach and Future Directions – A Research Note

Decision-making rationality is said to be bounded by managers’ cognitive capabilities. Recent studies indicate that accounting functions evolved to augment the cognitively bounded human brain in handling complex economic exchanges. The neuroscience discipline indicates that human brains have the ability to implement ‘automatic’ processes of positive versus negative emotional stimuli to make rational decisions. Neuroscientific evidence shows that the activations in the ventral striatum decrease with negative emotional information/motives and increase with positive emotional information/motives. We, hence, argue that our understanding of decision making rationality in financial and managerial decisions could be enhanced by using a functional neuroimaging approach. Decision making rationality has been focal in debt covenant violation and earnings management research. The contracting theory predicts a relationship between managers’ decisions and the proximity of violating debt covenants. However, no prior research has investigated brain activities associated with evaluation of debt covenant violation and earnings management. Meanwhile, in another strand of research, there is extensive prior literature concerning consequences of managers’ decisions and use of accounting information in relation to their evaluative style, i.e. supervisory style. We argue that the relationship between proximity to debt covenants violation and earnings management and earnings management incentives is contingent upon managers’ supervisory style. However, no previous research has examined the impact of supervisory style on earnings management in the context of proximity to debt covenants violation and other earnings management incentives. In this research note, we argue here that neuroaccounting could be relied on to examine the relationship between proximity to debt covenants and earnings management, contingent upon managers’ supervisory style, by capturing brain activities. The adoption of a neuroscience functional neuroimaging approach in this field shall contribute to the understanding of managers’ behaviors and provide implications for research. The goal of this research note is to provide a new avenue for future research in this field.