Employee domain and non-financial performance: the moderating effect of digital reputation

TY - JOUR

T1 - Employee domain and non-financial performance

T2 - the moderating effect of digital reputation

AU - Schena, Rosamartina

AU - Russo, Angeloantonio

AU - Pinkse, Jonatan

N1 - Publisher Copyright: © 2021, Emerald Publishing Limited.

PY - 2022/7/14

Y1 - 2022/7/14

N2 - Purpose: The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation and ambidexterity) are used to identify an innovative employee domain that influences a firm’s non-financial performance. Digital reputation – i.e. the set of stakeholders’ sentiments toward the company’s digital footprint – is observed as a moderating variable able to explain where and when the innovative employee domain impacts the non-financial performance. Design/methodology/approach: Using a sample of firms listed on the Fortune 500 list in the period 2015–2018, this study pursued both a qualitative and quantitative analysis. First, content analysis is carried out through a non-financial report-based operational model to operationalize the innovative domain. Second, a regression and moderator analysis are conducted on optimized panel data. Findings: Consistent with previous literature, the results show that the employee domain positively impacts a firm’s non-financial performance. It was found that digital reputation operates as a moderator in this relationship. Originality/value: This study contributes to the theoretical debate on CS by introducing a new concept relevant to an employee domain of exploration, exploitation and ambidexterity. It enriches the innovation debate by providing a new perspective on how firms can balance exploratory and exploitative innovation strategies in the employee domain to enhance non-financial performance. Finally, it provides a novel definition of digital reputation.

AB - Purpose: The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation and ambidexterity) are used to identify an innovative employee domain that influences a firm’s non-financial performance. Digital reputation – i.e. the set of stakeholders’ sentiments toward the company’s digital footprint – is observed as a moderating variable able to explain where and when the innovative employee domain impacts the non-financial performance. Design/methodology/approach: Using a sample of firms listed on the Fortune 500 list in the period 2015–2018, this study pursued both a qualitative and quantitative analysis. First, content analysis is carried out through a non-financial report-based operational model to operationalize the innovative domain. Second, a regression and moderator analysis are conducted on optimized panel data. Findings: Consistent with previous literature, the results show that the employee domain positively impacts a firm’s non-financial performance. It was found that digital reputation operates as a moderator in this relationship. Originality/value: This study contributes to the theoretical debate on CS by introducing a new concept relevant to an employee domain of exploration, exploitation and ambidexterity. It enriches the innovation debate by providing a new perspective on how firms can balance exploratory and exploitative innovation strategies in the employee domain to enhance non-financial performance. Finally, it provides a novel definition of digital reputation.

KW - Digital reputation

KW - Employee orientation

KW - Non-financial performance

UR - http://www.scopus.com/inward/record.url?scp=85112620797&partnerID=8YFLogxK

U2 - 10.1108/MEDAR-02-2021-1205

DO - 10.1108/MEDAR-02-2021-1205

M3 - Article

AN - SCOPUS:85112620797

SN - 2049-372X

VL - 30

SP - 893

EP - 913

JO - Meditari Accountancy Research

JF - Meditari Accountancy Research

IS - 4

ER -