Cognitive heterogeneity and incentive design in safety governance

Escape From the Competition: How Fair Competition Policy Influences Corporate ESG Behavior

Environmental, social, and governance (ESG) performance serves not only as a response to urgent climate risks but also as a strategic tool for sustainable value creation. However, the rise in greenwashing suggests gaps in existing governance frameworks. This study examines the Fair Competition Review System (FCRS), a policy aimed at mitigating administrative monopolies by emphasizing market mechanisms. Unlike prior research that focuses primarily on firm‐level factors or macroeconomic interventions, this study situates FCRS within the framework of new institutional economics, constructing a causal chain from institutional pressures to corporate responses. Empirical results demonstrate that the FCRS significantly drives ESG behavior. Mechanism analysis identifies three key pathways: stimulation of green innovation, reduction of financing costs, and optimization of income distribution, each grounded in reduced institutional transaction costs. Further analysis underscores the importance of synergistic governance and highlights several factors that enhance policy effectiveness, including equity incentive systems, audit committees, regional rule‐of‐law environments, and digital infrastructure. A particularly novel finding is that identical external institutional pressures can lead to both substantive ESG implementation and strategic brownwashing, a phenomenon previously underexplored. This study extends the scope of institutional economics and refines the framework for understanding ESG performance drivers. Practically, it offers policymakers and enterprise leaders a roadmap for leveraging institutional pressures to achieve sustainable competitive advantages.

The governance paradox: how management quality drives and constrains sustainability-linked executive compensation

This study investigates how management quality shapes the adoption of sustainability compensation incentives (SCI) in European Union firms. It explores the dual role of governance in promoting sustainability-oriented executive pay in the short term while potentially constraining innovation as governance systems mature. Drawing on panel data from 952 EU-listed firms between 2010 and 2024, the study applies a dynamic random-effects Probit model with control-function and Mundlak corrections. This approach captures both immediate and persistent effects of management quality on SCI adoption while addressing endogeneity, temporal dependence and unobserved heterogeneity. Results reveal a strong positive short-term relationship between management quality and SCI adoption. Firms with robust governance systems are more capable of translating sustainability priorities into measurable executive incentives, enhancing accountability and legitimacy. However, this influence weakens and may reverse over time, suggesting potential governance saturation or institutional rigidity over time. Sectoral analysis shows stronger responsiveness in environmentally intensive industries, while cross-country comparisons reveal higher SCI adoption in nations with more mature ESG regulatory frameworks. The study advances corporate governance and sustainability compensation literature by theorizing a Governance Paradox, whereby the same governance capability that accelerates the initial adoption of sustainability-linked incentives subsequently attenuates their further development. Unlike prior work on organizational rigidity, institutional decoupling and diminishing returns, the Governance Paradox specifically captures how formalized management quality can translate into attenuated marginal expansion of SCI over time, even in high-ESG regulatory environments. Methodologically, it offers one of the few empirical applications of a dynamic Probit framework to executive sustainability incentives, providing new insights into how governance mechanisms evolve and shape long-term sustainability alignment.

The "Terminal Agency Dilemma" in Community Public Safety Governance: A Grassroots Observation Based on Principal-Agent and Quasi-Bureaucratic Behavior Theory

The Effect of Team Diversity on Decision-Making Effectiveness

This study examines the dual-pathway effects of top management team (TMT) diversity on strategic decision-making within Sub-Saharan African corporate ecosystems. Using a mixed-methods design, quantitative data from 384 executive members across 64 management teams in Nigeria's high-velocity sectors (FinTech, Banking, Telecommunications) was integrated with 18 qualitative interviews. Hierarchical regression analysis reveals that while diversity directly enhances strategic decision quality, it imposes a social categorization tax by delaying execution speed and eroding team commitment. Interaction models identify psychological safety as a critical boundary condition that neutralizes these coordination penalties, accelerating speed and securing commitment, particularly under high environmental dynamism. Qualitative thematic analysis (intercoder agreement) contextualizes these paths within regional realities, showing how localized generational hierarchies and patriarchal structures activate team faultlines, while the indigenous cultural value of Ubuntu operates as a vital socio-cultural buffer. Given its specific geographical scope, this study moderates claims of universal applicability, demonstrating that micro-behavioral team dynamics remain bounded by macro-societal norms. The findings provide corporate boards in emerging African markets with an actionable blueprint to move beyond tokenistic representation, leveraging psychological safety to transform cultural and cognitive friction into strategic competitive advantage

Technology‐Driven Transformation of Compensation Systems: Mapping the Causal Structure of Digital Reward Systems

Traditional reward systems, which are largely salary‐centered and structurally rigid, are no longer sufficient in an era defined by digital transformation. Building on this premise, this study examines how emerging technologies reshape integrated compensation systems by uncovering their causal, mediating, and outcome‐oriented roles. A systematic literature review, following the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) protocol, first identified 15 technology‐related variables across the reward mix. These were subsequently refined through multiple focus group sessions and modeled using neutrosophic fuzzy interpretive structural modeling (NFISM) to map their hierarchical interdependencies. The findings reveal a five‐level structure comprising three overarching roles: (i) foundational drivers, (ii) intermediary tools, and (iii) outcome‐focused influencers. “Revolution in Performance Management” and “Shift from Fixed Pay to Individual” emerged as the principal drivers shaping the entire system. Mid‐level variables, including compensation automation, data‐driven evaluation, retention analytics, and job satisfaction analytics, serve as transmission mechanisms that translate structural reforms into operational improvements. Outcome variables, such as motivation, fairer pay, and simplified reward management, sit at the highest level. Sensitivity analysis demonstrates the hierarchy's substantial stability under varying expert judgments. The study contributes an integrated, technology‐centered framework that clarifies how digitalization restructures modern reward systems and offers a strategic pathway for organizations seeking to implement technology‐enabled compensation reforms. The findings highlight the role of automated reward‐system technologies in reducing payroll costs (dependent power = 6.75), enhancing data‐driven performance evaluation (dependent power = 6.59), and supporting individualized pay structures (dependent power = 5.64). Talent analytics also emerges as a key mediating mechanism (influence score = 7.25), linking foundational drivers to organizational outcomes. Future research could explore cultural, ethical, and legal aspects of technology adoption and undertake comparative studies across industries and regions. Future studies could examine the cultural, ethical, and legal aspects of technology acceptance. In addition, future studies could conduct comparative research across industries and geographic regions with different cultures.

Navigating Deep Uncertainty: The Role of Organizational Agility in Managing Public Sector Crises Under Resource Scarcity: Evidence From Palestine

This study addresses a critical gap in the public sector by examining the relationship between organisational agility (OA) and crisis management (CM) within Palestine's public service sector. It addresses a theoretical void by examining how dynamic capabilities operate under conditions of extreme volatility and institutional constraints. A quantitative, cross‐sectional design was employed, utilising a stratified random sample of 261 employees across five key ministries. Data were analysed using multiple regression to explore the associations between agility dimensions and crisis phases. The empirical analysis reveals that OA dimensions exert varying degrees of influence on CM phases. Decision‐making agility emerged as the most significant determinant, demonstrating a comprehensive impact across all crisis stages and explaining 37.3% of the variance in effective CM. Similarly, acting agility was found to be a vital driver for all dimensions of the crisis lifecycle, from discovery to learning. Conversely, sensing agility functions primarily as a specialised pre‐crisis capability; while it significantly facilitates early discovery and preparation, its influence does not extend to the containment, recovery or learning phases. This study examined the contemporary framework of OA and its influence on all stages of CM in the public sector in developing countries. It offers essential strategies for public service organisations to enhance their capacity to manage crises effectively and ensure the continuity of vital services, such as health and education.