Large Spanish Companies Research Articles

Structured knowledge processes and firm performance: The role of organizational agility

Organizational agility facilitates the search and retrieval of relevant knowledge and enables businesses to apply this knowledge to develop high-quality services and products or react to the emergence of new competitors. This work develops a research model that explores the relationships among knowledge management structures, organizational agility, and firm performance. The empirical study examines these relationships using partial least squares structural equation modelling on a dataset of 112 large Spanish companies. The results of this modelling exercise support the effectiveness of a specific set and sequence of knowledge management processes and confirm not only the direct effect of knowledge application on organizational performance, but also the mediating effect of organizational agility in this relationship.

Determinants of corporate risk disclosure in large Spanish companies: a snapshot

Improvements in risk disclosure have been an important part of the corporate governance reforms. This paper is intended to identify the factors that explain the extent to which a sample of 35 listed Spanish firms disclose risk-related information. This study focuses on the risk disclosures made in the corporate governance reports during the year 2009. Using the content analysis technique an index was developed in order to assess the amount and quality of the risk information disclosed by Spanish companies. Several characteristics were selected and their influence on the level of risk disclosure was tested empirically. Results indicate that sector and risk level are positively related to the extent of corporate risk disclosures. This study adds to the international research on risk disclosure by extending the scope of the current understanding of risk reporting practices and their determinants. The findings could be especially useful for regulators and policy-makers in order to enhance risk disclosure and to improve transparency.

How control systems influence product innovation processes: examining the role of entrepreneurial orientation

This paper yields insights into the channels through which management accounting and control systems (MACS) exert an influence on product innovation by examining the extent to which different forms of control (i.e. value systems (VS), diagnostic control systems and interactive control systems (ICS)) are directly associated with the distinct phases of innovation processes. Using survey data collected from 118 medium and large Spanish companies, we find that (1) VS and ICS have significant main effects on the creativity, co-ordination and knowledge integration, and filtering (sub-)phases of innovation processes and (2) the significance and direction of these influences vary depending on the entrepreneurial orientation (EO) of firms. By highlighting the relevance of EO in shaping the influence of MACS on product innovation processes, this study calls for caution in generalising the expected effects of MACS on innovation.

Facilitating organisational learning through teamwork-based knowledge management: evidence from Spain

In the context of organisational learning optimisation through knowledge management policies, it is essential to pay careful attention to teamwork design and dynamics. Having these ideas in mind, the aim of our paper is to empirically study whether a number of knowledge management policies related to team design and dynamics facilitate organisational learning processes across the different ontological levels (individual, group, and organisational-institutional). Hence, we propose a model linking teamwork-design based on knowledge management policies (including the sub-dimensions of team composition, team bonding, and team bridging) and organisational learning. We test this model in a sample of large Spanish companies. Our findings highlight the role of, on the one hand, individual-group learning level and, on the other hand, institutional learning level, as the two cornerstones of organisational learning. Furthermore, team autonomy and creativity stand out as crucial factors for successful knowledge management policies.

Knowledge creation. The ongoing search for strategic renewal

Purpose– The purpose of this paper is to analyse how changes in a set of structural design variables (i.e. liaison position, networked design, innovation teams and work teams) affect the creation of new knowledge within organizations. The enablers intention, autonomy, fluctuation and creative chaos, redundancy, variety, and trust and commitment, taken from Nonaka's framework, are used as intermediate variables.Design/methodology/approach– A sample of 167 large Spanish companies was used to empirically test a general relational model.Findings– The analysis yielded two main conclusions. First, the relationship between structural variables and enablers, and, second, the relationship of enablers with knowledge creation emerged as highly relevant for knowledge creation in organizations.Research limitations/implications– A major limitation of this study was the relatively small number of variables used to define organizational structure. In reality, a large number of variables combine to create organizational structure, yet this study only included four: liaison position, networked design, innovation teams and work teams. A further limitation is the importance of the organizational context itself, which was not addressed in this study.Practical implications– This research has yielded findings that can help firms to understand and appreciate the changes that may occur in certain organizational design variables that affect knowledge creation. Equally, this research shows that knowledge creation has the potential to act as a catalyst for innovation, and may consequently drive change within the firm.Originality/value– Despite a long tradition of research into organizations and the ways in which these entities create knowledge, the literature requires enhancing through the publication of articles that provide a deeper knowledge of the context and tools that aid knowledge creation. The novel approach adopted in the current study verified whether certain variables related to organization design (i.e. liaison positions, networked design, innovation teams and work teams) exert a relevant influence on knowledge creation.

La habilidad de los directivos y su papel mediador entre formación e innovación

The objective of this paper is to determine how managers training and managerial ability influence innovation in the company. Using a sample of 316 large Spanish companies, the results demonstrate that managers training has a positive effect on the development of the ability of this group of workers and that this, in turn, improves innovation in the company. The analyses also establish a mediating role for managerial ability between manger training and innovation.

Are Spanish Listed Firms Betting on CSR during the Crisis? Evidence from the Agency Problem

Companies have to continue with their businesses in the current uncertain environment triggered by the economic crisis. Since the decrease in the performance of companies is a reality, academicians, managers and entrepreneur are worried about what may be happening with Corporate Social Responsibility. Because of the strong impact of the crisis on Spain, we are going to study its effect on the CSR behaviour of Spanish companies. Therefore, we analyse whether the performance of the company, as well as some shareholding characteristics, influence CSR before and during the crisis. The results show that large Spanish companies continue to carry out CSR actions despite the effects of the crisis on their financial health. It seems that shareholders are more influential than managers in these strategic and entrepreneurial decisions. Additionally, the presence of a reference shareholder means that companies are more committed to CSR, although a higher percentage of insider shareholders cause the contrary effect.

Corporate reporting on risks: Evidence from Spanish companies

In the current corporate context, information on corporate risks plays an essential role in the decision-making process and in an adequate assessment of different organizations.The current study examines the main risks disclosed by the largest Spanish companies and analyses the factors underlying this disclosure, particularly those linked to corporate governance.The content analysis performed shows that Spanish companies reveal relatively little information on risks. Their disclosure mainly focuses on the divulgation of the basic characteristics of the financial risks involved.Likewise, the results obtained emphasize the complexity of the voluntary revelation of risks. While an extended management board might improve the provision of more detailed information about the risks required by the current regulation, it tends to adopt a conservative policy of reporting concerning the voluntary disclosure. Moreover, we show the relevance of transparency as a deterrent for providing voluntary information by larger companies, due to the concerns about negative strategic repercussions.

Organizational learning: Proposal of an integrative scale and research instrument

This study describes the development and validation of an instrument to measure organizational learning. Starting out from a comprehensive analysis of the main organizational learning models in the specialized literature, the organizational learning scale in this study consists of 18 items forming five dimensions: the ontological levels of learning, modes of knowledge conversion, learning sub-processes, types of learning, and feedback and feed-forward flows of learning. A survey to large Spanish companies provides data from 167 companies. Confirmatory factor analysis tests the construct measurement model and validates the scale. The results of the study indicate that the scale satisfies the criteria for reliability, and validity. The exploratory factor analysis permits the identification of four factors which make theoretical sense: information systems, the existence of a framework for consensus, procedures for the institutionalization and broadening of knowledge, and forms of management and the genesis of knowledge. The new construct promises to be more comprehensive, integrative and eclectic than previous constructs, achieving its broad scope by incorporating a number of the main theoretical perspectives on the matter. For practitioners, the scale could form the basis of an auditing tool, as well as being a useful target for organizational change initiatives.

The Impact of Corporate Culture on the Absorptive Capacity and Innovative Capacity of Companies

The purpose of this study is to gain a better understanding of the influence of corporate culture in the absorptive and innovative capacities of Spanish enterprises. This is an exploratory study conducted involving top managers from a sample of 53 large Spanish companies. An empirical analysis is performed using a structural equations model and bootstrapping methodology. The paper highlights the role of corporate culture as a concept that has a significant influence on the absorptive capacity and also on the innovative capacity of enterprises. The absorptive capacity is presented as a system that makes a work of observation, identification, collection and use of information and knowledge from abroad, which is considered essential to achieving and sustaining competitive advantage. The research performed shows how the different components of absorptive capacity, found in the literature are significant configuring the capacity as a latent variable with economic sense. Furthermore, regarding the sample studied, corporate culture has a significant influence on the innovative capacity. The model explains the influence of culture in the innovative capacity, and in the two components of it, incremental and radical innovation. The investigation has found also some interactions not included in the model proposed, as for example the relationship between the recognition as the part of the absorptive capacity component more related with radical innovation. The empirical model performed need to be replicated with other samples for further findings and possible generalization. Deconstructing corporate culture in eight dimensions permits to use some of them in a prescriptive way. The adoption of certain cultural values and attitudes and the use of management strategies designed to promote these values and attitudes, encourage the company to more easily benefit from the opportunities of their environment, increasing the ability to manage information of the environment.

Boosting organizational learning through team-based talent management: what is the evidence from large Spanish firms?

Talent management (TM) can crucially help optimize organizational learning (OL) processes. The aim of this article is to study whether certain TM practices related to teamwork design and dynamics stimulate and develop learning (i.e. knowledge creation) processes within the organization and across the different ontological levels (individual, group and organizational–institutional). A model linking team-based TM and OL is tested in a sample of large Spanish companies. Our empirical results emphasize the distinction between individual–group and institutional levels of learning as the two pillars of OL. The results also highlight the role of team autonomy and creativity as crucial factors for successful OL through team-based TM, especially for interlinking individual and group learning levels.

The Effects of Collective Quits and Dismissals on Performance in Retail Units: A Panel Data Analysis

We studied the relationship between collective involuntary and voluntary turnover over unit-level performance. Our unique dataset, consisting of panel data with 24-month observations for 232 stores of a large Spanish fashion retail company, enabled us to compare different time lags between the moment of departures and the performance measures using fixed effects regressions. Such analyses revealed that both types of turnover had different consequences. Voluntary turnover was unrelated to store performance. Otherwise, involuntary turnover was significantly and negatively related both to store productivity and efficiency when variables are measured simultaneously, though this effect disappears in a one-month time lag. These results are discussed in the context of operational disruption arguments, and reveal the importance of using distinct variables that isolate the nature of employees’ separations (voluntary or involuntary) for the purposes of understanding what is meant by the functionality of turnover. O...

Using strategic performance measurement systems for strategy formulation: Does it work in dynamic environments?

This paper examines how strategic performance measurement systems (SPMS) influence organisational performance through the shaping of the strategic agendas and strategic decision arrays that result from the processes of (re)formulation of intended strategies. Using a combination of archival and survey data collected from 267 medium and large Spanish companies, we find evidence supporting a positive association between SPMS and organisational performance that is mediated by the comprehensiveness of the strategic decision arrays. We find this mediation is negatively moderated by the level of environmental dynamism, so that the comprehensiveness of strategic decision arrays that result from strategy (re)formulation processes mediates the association between SPMS and organisational performance when environmental dynamism is low, but not when environmental dynamism is high.

Traditional Electricity Systems in Spain: Fensa (1927-1991)

AbstractBecause the literature of European economic history has paid little attention to traditional electricity systems, the interest in studyingFensalies in analysing the different types of companies, which helped to shape the development of the Spanish electricity sector prior to its present oligopolistic structure. This case provides insight into two issues. First, we learn about the behaviour of the second-generation companies (those that based their production on a controlled hydropower regime), which, despite their limited size, made their commercial specialisation (supplying the dynamic industrial market of Guipúzcoa) their main comparative advantage. Second, we analyse the behaviour of those companies which at this time, as distribution companies and/or subsidiaries of the large Spanish companies (Iberduero), were an instrument of the policy of integrating regional markets.

Variables Influencing the Gender Composition of Boards: The Spanish Evidence

This article studies the determining factors of gender composition of the boards of large Spanish companies and presents a method to predict it. For this purpose, a multivariate analysis is run to identify the differences in the characteristics between firms without female directors and firms with two or more female directors or one female director if she is the chief executive officer (CEO) or chair. This research analyzes women's participation on Spanish boards in a period prior to the introduction of voluntary measures to boost female participation, so its results are not influenced by that development.

The Role of Management Accounting and Control Systems as Antecedents of Organizational Creativity and Innovation Capabilities

This paper examines the extent to which the use of Management Accounting and Control Systems influence the development of organizational capabilities in the innovation setting. More specifically, this research exams the cultural, interactive and diagnostic control systems in firms that follow conservative and entrepreneurial strategies, to test their effects as antecedents of organizational creativity and capabilities that could explain to some extent the ability of an organization to convert invention into product innovation. Using survey data collected from 124 medium and large Spanish companies, we find evidence supporting the interchangeable role of interactive and cultural forms of control to developed different capabilities as companies pursue different strategies.

Benchmarking Logistics and Supply Chain Practices in Spain

This article describes the findings of an exploration into the adopted best logistics and supply chain practices in Spain. The aim of this article and the related government-funded research project has been to propose suggestions for improving Spain’s competitive position through enhanced logistics strategies. More specifically, this article presents an evaluation of the current state of logistics and supply chain practices in Spain that were identified by means of a survey instrument directed to operations and supply chain executives of large Spanish companies. The results of this evaluation are then benchmarked against the global best practices identified in the literature in order to identify any potential gaps. This article concludes by pointing towards various opportunities for improvement in several different areas.

The Effect of Absorptive Capacity on Innovativeness: Context and Information Systems Capability as Catalysts

The purpose of this study is to examine the relationship between absorptive capacity and company innovativeness and to identify potential contexts and capabilities that can act as catalysts for these relationships. We also examine the relationship between absorptive capacity and the existence and enhancement of innovativeness. These relationships are examined through an empirical investigation of 286 large Spanish companies. Our results show that absorptive capacity is an important dynamic determinant for developing a company's innovativeness. Moreover, this relationship is best explained by two related constructs. First, the company's unlearning context is a crucial determinant for both potential capacity and realized absorptive capacity. Second, the results also indicate a tangible means for managers to enhance their absorptive capacity through information systems capabilities.

The Role of Performance Measurement Systems in Strategy Formulation Processes

Since most studies have focused on the role of strategic performance measurement systems (SPMSs) in communicating the firm's strategy and facilitating its execution and control, little is known about the role they might potentially play in shaping strategy (re)formulation processes. In this paper, we examine whether organisations that use SPMSs engage in strategy formulation processes differently from those that use performance measurement systems (PMSs) which do not qualify as SPMSs, or those which do not use any type of PMS. In particular, we hypothesise that the use of SPMSs will relate to 1) a greater frequency of strategy (re)formulations, and 2) a more comprehensive strategic agenda, reflected through a greater number and a wider variety of strategic decisions in each strategy (re)formulation. Empirical data gathered from surveys completed by 349 CEOs of medium and large Spanish companies provide support for a positive association between the use of SPMSs and both the number and variety of strategic decisions taken in each strategic review. Our findings suggest that the use of SPMSs (as opposed to other forms of PMS) by an organisation's top management team translates into a more comprehensive strategic agenda. Prior studies have shown that strategic agendas shape the extent and direction of corporate strategic change.

Strategic Performance Measurement Systems: The Shaping of Strategy Formulation Processes Under Dynamic Environments

This paper examines the extent to which the use of Strategic Performance Measurement Systems (SPMS) influences organizational performance through the shaping of the strategic agendas and the strategic decision arrays that result from strategy (re)formulation processes. In this research we defined SPMS as management tools that are characterized by a combination of high levels of four constitutive dimensions (i.e. the integration of long-term strategy and operational goals, the presence of multi-perspective metrics, the inclusion of cause-effect linkages, and the presence of a sequence goals/targets/action plans). We argue that organisations that use SPMS achieve enhanced performance (in comparison with those firms that use other performance measurement systems not qualified as SPMS) and that this enhancement is associated not only with a better implementation of intended strategies as it has been assumed in previous empirical research, but also with the comprehensiveness of the strategic agendas and strategic decision arrays obtained in the processes of (re)formulation of intended strategies. Results from tests of a structural model using Partial Least Squares (PLS) regressions on archival and survey data collected from Chief Executive Officers of 279 medium and large Spanish companies provide support in favour of hypotheses suggesting that a) the positive effect of the use of SPMS on organizational performance is mediated by the comprehensiveness of the strategic decision array (i.e. variety and number of decisions) that result from strategy (re)formulation processes; and that (b) the greater the environmental dynamism, the more positive the effect of the comprehensiveness of the strategic decision array on organizational performance.