Portuguese Companies Research Articles

Factors inducing productivity: a qualitative and quantitative view of Portuguese companies

Factors inducing productivity: a qualitative and quantitative view of Portuguese companies

Explanatory Factors of the Capital Structure

This paper presents an empirical study of the capital structure of Portuguese companies where the main objective is to find key explanatory factors for indebtedness decisions. The relations between indebtedness and its determinants are tested in the light of the Trade-Off Theory and the Pecking-Order Theory. The motivation of this work was to contribute to the scientific research on the influential determinants of the capital structure and to deepen the knowledge of the Portuguese market. The quantitative methodology is used, through an econometric model for panel data using accounting information of 55 Portuguese companies between 2014 and 2016. Statistical tests such as the F test, the Lagrange Multiplier Breusch-Pagan test and the Hausman test were used to identify the most appropriate method of estimation, which resulted in a panel data model with random effects for individuals. The findings of this study suggest that indebtedness have a positive relation with tangibility and the size of the company, which supports the Trade-Off Theory. However, the positive relationship with the non-debt tax benefits suggests the importance of taxes, contrary to Trade-Off Theory. The negative relationship with cash flows, coupled with the positive relationships between size and growth opportunities, suggest the use of funding only when internal funds become insufficient, supporting the Pecking-Order Theory. The general results support that both theories partially explain the financing decisions of Portuguese companies. Doi: 10.28991/esj-2020-01249 Full Text: PDF

Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sector

Purpose: The propose of this study is to determine the influence of Intellectual Capital (IC) and its components’ impact on Portuguese tourism organizations’ business performance through Return on the assets (ROA). This work evaluate and compare the intellectual capital in its four dimensions: (i) capital employed; (ii) human capital; (iii) structural capital and (iv) relational capital. Design/methodology/approach: To approach the aim of the study the method Value Added Intellectual Coefficient (VAICTM) was applied and the practical data were collected from the Simplified Business Information (IES) through SABI (Iberian Balance Sheet Analysis System) database. The economic and financial information was collected from balance sheets and financial reports of 46.951 Portuguese companies in the hospitality and tourism sector during 2016. Multiple regression analysis was employed to identify the effect of IC components’ that significantly contribute to the company performance.Findings: The paper reveals that VAICTM, human capital efficiency coefficient (HCE), capital employed efficiency coefficient (CEE).and ROA are positively related among Portuguese’s hospitality and tourism sector. However, the structural capital efficiency coefficient (SCE) presents a negative association with profitability and the results of the relationship between the variable relational efficiency coefficient (RCE) and ROA do not present statistical significance.Practical implications: The application of the VAICTM model presented in this paper provides a basis for practical application for management.Originality/value: The paper represents a pioneering attempt to understand the relationship of intellectual capital and firm’s profitability on Portuguese hospitality and tourism sector’s, to provide solid recommendations for the importance of intellectual capital in the sustainable growth of organizations in this sector.

Leadership characteristics and digital transformation

Digital transformation (DT) is essential for all companies and industries, depending crucially on systems, IT, strategy, and people. In this research, we analyse how firms’ characteristics, associated with management characteristics, promote DT in Portuguese companies. The model considers the relationship between digital strategy and corporate and business strategy, according to firm and management characteristics. We use a multilevel analysis, applying fsQCA to data obtained from 47 Portuguese firms. The results represent an important step forward in the knowledge of the conditions to promote higher stages of DT, especially regarding leadership and management associated with certain firms’ characteristics. The conclusions support the crucial role of leadership and especially the importance of managers’ coherence towards companies’ mission to promote more advanced stages of DT. At the same time, it contributes to develop knowledge about the best possible combination of firms’ and management characteristics to promote DT.

Cooperation Networks and Embeddedness—The Case of the Portuguese Footwear Sector

The purpose of this paper is to explore the role of embeddedness and cooperation networks in the business internationalization process. To achieve the abovementioned purpose, a qualitative methodology was carefully chosen, through which semi-structured interviews were conducted with ten entrepreneurs of the footwear sector in Portugal, as well as with a head of the national footwear business association. In order to process the data obtained by conducting the interviews, content analysis and data coding through the NVivo software were performed. The results suggest that internationalization is essential for companies in the Portuguese footwear sector. In addition to internationalization helping companies to increase their turnover, it allows companies to grow in a more sustainable way. On the other hand, research also allows us to deduce that networks play an important role in the development of the organizations in question, as they facilitate access to various resources indispensable to this growth. Concerning embeddedness, this aspect presents itself as a facet to which special attention should be paid, considering the pre-eminence that respondents attribute to all variables that help to structure this dimension. The conclusions of this study have theoretical and practical implications, which provide empirical evidence of how the internationalization process can influence the activity of Portuguese companies in the footwear sector. In addition, the results contribute to the evolution of existing knowledge about how embeddedness and cooperation networks facilitate the internationalization process.

A model of integration ISO 9001 with Lean six sigma and main benefits achieved

The main purpose of this article is to depict the integration of Lean tools with requirements of ISO 9001:2015 standard as an operationalisation and support tool for a Quality Management System (QMS). The research was carried out through a questionnaire, which was sent to 2040 Portuguese companies. From the two hundred responses, 77 of them were validated (companies certified by at least one quality management system and which simultaneously have lean six sigma (LSS) tools and/or techniques implemented) corresponding to the sample of this study. Additionally, the research was also based on a case study in a footwear company where the model was applied. This research proposes a model for integrating Lean tools and requirements of ISO 9001:2015. This integration allows the QMS to become more practical and dynamic, reinforcing the creation of value for the organisation. As main benefits, we can highlight, among others: improvement of problem solving, waste reduction, improvement in internal communication, and increase in productivity. This article aims at becoming a relevant contribution to business management as it displays the main tools and methodologies to implement and sustain a QMS.

Green Practices as a Path towards the Sustainability: Evidence from Portuguese Companies

Abstract Background: In the last years, the concept of sustainability has been receiving global attention from academics, the public sector and practitioners. The high level of industrialization has contributed to the increase of environmental impacts on the environment and the society. To give a sustainable answer to the industrial sector, more strategies aimed at reducing the environmental and social impacts should be considered. Objectives: This research aims to evaluate the level of environmental practices in a set of companies from the northern region of Portugal. Methods/Approach: In order to achieve the objective of this research, several steps were taken, and approach is mainly based on an online questionnaire administered in a set of companies. Results: The initial results show that companies are progressing when it comes to the implementation of measures and practices related to sustainability. Conclusions: The study resulted in suggestions for consulted companies, namely the need for effective mechanics to ensure compulsory but expedite environmental procedures along with procedures control, which is a key factor in ensuring sustainable and green practices.

The adoption of sustainable development goals by large Portuguese companies

PurposeTwo years on from the launch of the United Nations 2030 agenda, this study aims to approach just how and why large Portuguese companies are incorporating the sustainable development goals (SDGs) into their strategies. This sets out a theoretical framework for priority levels of management and the key rationales and motivations towards the adoption of the SDGs by companies within the scope of identifying logical and mutual connections.Design/methodology/approachThe proposed theoretical framework applied an empirical, qualitative study approach, deploying content analysis of the semi-structured interviews carried out.FindingsThe results convey how the responding companies are using the different management models identified for integrating the SDGs, with the strategic and operational facets of greatest relevance. There are various key reasons put forward in justification of this involvement, in particular highlighting the understanding of the 2030 agenda as an ethical and social contract followed by concerns over managing stakeholders. The results demonstrate that these main motivations influence the management level at which the SGDs undergo integration, yet they do not determine the type of integration.Research limitations/implicationsThe analysis of a limited number of companies and the fact that the semi-structured interviews were made with a single representative, which correspondingly reflects how the responses received convey the understandings, visions, values and responsibilities of these interlocutors.Originality/valueThis provides one of the first studies contributing towards understanding how and why businesses are aligning with the SDGs. At the conceptual level, this proposes a theoretical framework for analysing the underlying logics and the levels of integration into business management and how both can be interconnected. In practical terms, this clarifies how business management strategies may leverage the integration of the 2030 agenda as a mechanism for implementing corporate sustainability.

The Impact of Senior-Managerial Leadership Culture on Value Creation for Shareholders – A Study of Local and Multinational Companies in Portugal

Abstract Objective: This study is based on the analysis of three fundamental aspects of company and managerial life: the culture of organizations, the style of leadership and financial performance. Its focus was to question the connection between these and to devise a strategy that could be applied in Portugal, during 2017 and 2019, in industrial sector companies. Methodology: To do so, it was decided to start methodological analysis of the behaviour of managers and organizations operating in this environment, considering several classifications: multinational companies operating in Portugal and Portuguese companies with a strategy for and in the process of internationalization. On this basis the study problem was set at the level of managerial behaviour, bearing in mind that this varies depending on the type of organization in which managers’ work. The problem involves scientific, methodological, and cultural aspects that have already been demonstrated by several authors, whose considerations have been incorporated. The study was conducted in 16 companies operating in Portugal. Findings: The characteristics of leadership in the multinationals tend towards greater balance between the four roles of each of the corresponding quadrants, while in the national companies it tends to be more internally focused. Value Added: This difference could be related to what R. Quinn calls the Normal State of Leadership, which is focused on the comfort zone that the internal processes seem to generate; the multinational companies are more focused on external aspects and future development – Fundamental State of Leadership – centred on strategic dedication to clients and flexibility. Recommendations: Dedication to clients and flexibility, that we intend to link with Internal Marketing strategy drivers, considering the investigation ideas for this paper, as the demonstration if some different Leadership Styles influence the Financial Performance of the Companies or not.

The importance of Latin American space in the internationalization of Portuguese SMEs

In the light of the transformation undergone in the last decade by the Portuguese economy, the internationalization of Portuguese companies through exports had a considerable growth, reducing the importance of domestic demand as the main variable in the contribution to GDP, this work addresses the role of SMEs in this process, analyzing the case of their internationalization to the Latin American space. The study is based on an empirical analysis of data resulting from a survey conducted in 2014, period where the transformation became clear, through the responses of 50 internationalized Portuguese SMEs to Latin America, which have been validated. Also, and with a focus on this research, the process was correlated with the relevant theories of internationalization, paving the way for more in-depth and methodologically based studies on this relationship with significant potential, but still little analyzed in the context of the Portuguese economy.

Need-for-touch and online purchase propensity: A comparative study of Portuguese and Chinese consumers

This study analyses the impact of Need-for-Touch (NFT) on online purchase propensity by evaluating the influence of the consumer's country of origin. Although NFT has been a major topic of research over the past years, the link between NFT and purchase propensity has rarely been empirically proven. For assessing the relationship an online questionnaire was made available in Portugal and China. A total of 295 complete responses were obtained and the data studied through exploratory and confirmatory factor analysis, namely multivariate analysis of variance and structural equation modeling using AMOS. The results indicate that the consumer's country of origin seems to affect the relevance of the sense of touch for apparel. Consumers with high levels of NFT are more likely to engage in additional brand touchpoints and consequently having stronger brand experiences. The impact of perceived information credibility and brand experience on the perceived product quality influences the propensity to search and to purchase online. Consumer NFT was shown having no direct influence on online purchase propensity but instead is mediated by other variables such as brand experience and the online research propensity. This study is innovative by comparing the NFT between two very different cultures and by providing insights on the relationships between cultural differences and NFT, which could be of great interest for Portuguese companies planning on investing in the Chinese market and vice versa.

Test of a safety culture model from a management perspective

Purpose – The importance of developing theoretical models and their empirical validation, capable of explaining safety performance within organizations, has been pointed out by the scientific community. Fernandez-Muniz, Montes-Peon, and Vazquez-Ordaz (2007) proposed a model that integrates dimensions considered as determinants of safety culture to explain safety performance, which was tested with Occupational Health and Safety technicians of Spanish companies. This study aims to verify if that theoretical model obtains empirical support in the Portuguese context, considering the supervisors’ perspective. In addition, it also aims to contribute to the adaptation of the measurement instrument, which allowed for the empirical test of the model in the Portuguese context. Design/methodology/approach – The study conducted is quantitative with a cross-sectional study design. In total, 174 supervisors at different levels of supervision, in different Portuguese companies from different activity sectors, participated in the study. Data were gathered through the Portuguese version of the instrument developed by the authors of the model (Fernandez-Muniz et al., 2007). Findings – The results partially confirm the proposed model wherein supervisors play a determinant role in the development of safety culture and thus in the safety performance of organizations. Originality/value – This study addresses one of the demands present in the literature, having empirically tested a model that aims to explain the safety performance of organizations, expanding its application to the management perspective and to a different national context. The results emphasize the role supervisors may play in the development of safer organizations.

What if Employees Brought Their Life to Work? The Relation of Life Satisfaction and Work Engagement

Previous research on work engagement has sought to understand the drivers, as well as the consequences, of engaging people at work. The drivers of engagement have been found mainly within the work domain. However, working life is not detached from personal life, which has been demonstrated by research on work-life balance. The goal of this research is to understand the relation between life satisfaction and work engagement. Data were collected from a sample of 571 employees from major Portuguese companies using a questionnaire. The results confirmed the constructs used, and the regression model showed that life satisfaction is related to work engagement. The main conclusion was that work engagement can be explained by factors external to the organization, which are an integral part of employees’ lives. Being a psychological and emotional state, work engagement can be related to other aspects of employees’ lives besides their organizational and job roles.

Capital structure decisions in a period of economic intervention

PurposeThis paper aims to analyse the Portuguese companies’ determinants of capital structure. To reach this objective, the authors used data from 37 non-financial Portuguese large enterprises and from 4,233 non-financial small and medium enterprises for the period 2010-2016. Additionally, the authors selected a sub-period from 2010 to 2014 for a deeper understanding of the impact of the sovereign debt crisis and the Economic Adjustment Programme of Troika on the capital structure of those companies.Design/methodology/approachThree dependent variables were tested according to debt maturity, and a dynamic panel data model, namely, the generalised method of moments system estimator, was used to test the formulated research hypotheses following Arellano and Bover (1995) and Blundell and Bond (1998) to capture the dynamic nature of the firm’s capital structure decisions.FindingsIn general, the results point out that the capital structure decisions depend on a set of firm-specific factors, and that the effects of the determinants of the debt maturity ratios differ according to the type of firm, i.e. large/small firms, and the economic cycle.Originality/valueTo the best of the authors’ knowledge, this is the first study that has been carried out in Portugal by using two samples of large and small companies for analysing the effects of the Economic Adjustment Programme of Troika on the capital structure of companies. The authors seek to understand which type of companies suffered more because of the effects of the Economic Adjustment Programme of Troika during this period, and which are the capital structure determinants that present greater change. Contrary to what might be expected, large companies are the firms that suffer most from the Economic Adjustment Programme. Probably, because these companies are the most immediate, most scrutinised and those that must show abroad that the bank did not fund them in the long term, because of the imposition and limits to grant credit faced by the banks themselves.

Performance indicators in the construction industry: a study with Portuguese companies

This paper aims to study the use of performance indicators (PIs) by business managers in the civil construction sector in a region that encompasses eight districts located in the north of Portugal. Through the literature review, it was possible to gather a list of twenty potential PIs used in this sector. Subsequently, a questionnaire was applied to a sample of construction companies from this region. A statistical analysis of the data collected allowed to identify the twelve most used and most important PIs for the companies surveyed. The results indicate that the companies involved in this study mainly use the traditional financial measures, however, recognize that non-financial measures, namely the customer satisfaction index, employee satisfaction, internal customer satisfaction index, and the training of employees, are increasingly important for the success of companies. The study also analysis the criteria to select PIs, its main benefits, and difficulties faced by companies on their usage.

Deciding where in the world to expand when determining a subsidiary strategy

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This case study paper concentrates on the managerial perceptions that determine where to establish a subsidiary and which strategies to follow in doing so. Cultural and economic distances have the biggest impacts on such strategy formation, followed by secondary administrative and geographic distance factors. Most managers preferred to adapt their marketing approach to the foreign market, to give high autonomy to acquired subsidiaries to manage their market, and to set up a subsidiary in a neighboring country. The interviewed Portuguese companies therefore predominantly opened a foreign subsidiary in Spain. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Green supply chain practices and company performance in Portuguese manufacturing sector

AbstractGreen supply chain management is an important organizational approach to reducing strain on the environment. Many companies are under pressure from customers, media, governments, and investors, among others, to implement green practices. This exploratory paper investigates the relationships between internal and external green practices of eight Portuguese companies from different industrial sectors and their impact on economic and environmental performance. The relationship was analyzed based on the data collected from 22 semi‐structured interviews with general managers, procurement and environmental/safety managers, and through secondary data collected from reports, websites and companies' internal documentation. The analysis identifies the most important green practices considered by managers, as well as the performance measures that are most appropriate and most widely used to evaluate the influence of green practices on corporate performance. A conceptual model was derived to assess the influence of green practices on focal company economic and environmental performance. The results support four of five propositions of this research, and it is possible to conclude that the companies believe that with the adoption of green supply chain practices, they can be more competitive in the market. Due to the scope of the green practices, the relationship between green practices and economic performance was inconclusive. Internal and external green supply chain practices contribute to improved environmental performance because for all companies, there is a positive relationship between green practices and environmental performance in terms of energy, water consumption, waste, and air emissions reduction.

Financial Instruments’ Disclosure in Compliance with IFRS 7: The Portuguese Companies

The constant changes in the business context and international relations have led companies to be provided with financial reporting with useful information, including their relevance, comparability and harmonization as required by International Financial Reporting Standards (IFRS). This study analyzes the level of disclosure of derivative financial instruments from companies in the PSI20 stock index, in the Euronext Lisbon stock exchange, according to requirements of IRFS 7. A disclosure index was created, based on the reports and accounts of companies in the period 2015-2017. To analyze the evolution of the disclosure level according to companies’ characteristics (dimension, profitability, share price and auditor type), we applied a cluster analysis. The results show a high level of disclosure. This evidence may be related to the mandatory adoption of IAS / IFRS and may also reflect companies' greater concern in disclosing this type of information due to the negative impact that the global financial crisis has had on corporate performance in general. The dimension is the variable that affects disclosure. That is, there is a tendency to, the higher the company the higher the level of disclosure. However, the results show that smaller companies also have high levels of disclosure. This may be associated with greater or lesser quantity or value of derivative financial instruments used.

The impact of lean and green practices on logistics performance: a structural equation modelling

Abstract Paper aims This research has two main objectives, firstly to analyze the level of implementation of lean and green practices of a set of companies and secondly to analyze the relationship between lean and green initiatives in an industrial context. Originality The use of Structural Equation Modelling (SEM) allows a better analysis of the interlinkage of lean and green towards sustainable gains. The developed model offers conceptual contribution to the arena of the logistics, sustainability, lean and green. Research methods The methodology used in this study was carried out resorting an inquiry. Firstly, aiming to understand the level of these practices (lean and green) practices in the North of Portugal, a case study was considered. The sample taken is a convenient one, due to time and budget constraints. Secondly, in order to assess the possibility to combine lean ad and green initiatives, a statistical approach was used to develop a SEM for lean and green practices. Main findings The results demonstrated that the level of implementation of lean and green practices on Portuguese companies are not properly addressed and formalized. The statistical analysis also showed that lean environmental practices and green practices are positively associated. The research showed that lean and green has also a positive impact on the logistics processes of companies. Implications for theory and practice This research brings some contributions to both academy and companies. Firstly, a further discussion about the benefits of combining lean and green towards sustainability. Secondly, the development of a structural model for lean and green practices was presented, this model contributes to a better understanding of these practices, which can lead companies to develop strategic initiatives towards sustainability.

ABSORPTIVE CAPACITY IN ANALYTICS IMPLEMENTATIONS: A RESEARCH MODEL

ABSTRACT Purpose: Propose a research model that involves the conceptual relationships between the theoretical support of the absorptive capacity and analytics, emphasizing the way in which the tool contributes to the formation of absorptive capacity within the companies. Originality/value: It was possible to delineate a model with the theoretical associations between absorptive capacity and analytics from the voices of experts and decision makers of Portuguese companies, contributing as a tool to guide strategies that help companies for a better understanding of how the absorption of knowledge occurs in analytics implementations to better target efforts at incremental value generation. Design/methodology/approach: A qualitative study was carried out with the adoption of Grounded Theory as a research strategy. In this way, techniques and procedures of the method were followed that allowed the constant collection and analysis of the data, supported with the use of Atlas.ti software. Findings: The main theoretical contribution is the proposition of a conceptual model that considers emerging categories, subcategories, properties, and dimensions, that qualify the conceptual alignment between absorptive capacity and analytics and explain the existence of the construct over implementation. As entrepreneurial contributions, the configuration of knowledge absorption according to two analytic use patterns is emphasized: as oriented towards solving specific problems and as a guideline of institutional planning.