Spanish Industry Research Articles

Profitability, Uncertainty and Multi-Product Firm Product Proliferation: The Spanish Car Industry

This article studies how product introduction decisions relate to profitability and uncertainty in the context of multi-product firms and product differentiation. These two features, common to many modern industries, have not received much attention in the literature as compared to the classical problem of firm entry, even if the determinants of firm and product entry are quite different. The theoretical predictions about the sign of the impact of uncertainty on product entry are not conclusive. Therefore, an econometric model relating firms’ product introduction decisions with profitability and profit uncertainty is proposed. Firm’s estimated profits are obtained from a structural model of product demand and supply, and uncertainty is proxied by profits’ variance. The empirical analysis is carried out using data on the Spanish car industry for the period 1990-2000. The results show a positive relationship between product introduction and profitability, and a negative one with respect to profit variability. Interestingly, the degree of uncertainty appears to be a driving force of entry stronger than profitability, suggesting that the product proliferation process in the Spanish car market may have been mainly a consequence of lower uncertainty rather than the result of having a more profitable market.

Factors of competitiveness in the Spanish hotel industry

The management of a hotel requires a significant amount of operational knowledge, and competitiveness is, thus, based on the adequate management of intangible resources. After presenting the main literature on competitiveness from an intellectual capital and knowledge management perspective, this paper reviews the strategic factors for competitive hotel management. An empirical analysis of these strategic variables for the industry is made on a sample of 288 Spanish hotels. The hotels are further classified by competitive strategy. The paper contributes to a better understanding of the role played by tangible and intangible resources for hotels.

Exploratory Analysis of Spanish Energetic Mining Accidents

Using data on work accidents and annual mining statistics, the paper studies work-related accidents in the Spanish energetic mining sector in 1999-2008. The following 3 parameters are considered: age, experience and size of the mine (in number of workers) where the accident took place. The main objective of this paper is to show the relationship between different accident indicators: risk index (as an expression of the incidence), average duration index for the age and size of the mine variables (as a measure of the seriousness of an accident), and the gravity index for the various sizes of mines (which measures the seriousness of an accident, too). The conclusions of this study could be useful to develop suitable prevention policies that would contribute towards a decrease in work-related accidents in the Spanish energetic mining industry.

Un siglo de vidrio francés: Saint Gobain en España, de 1905 a la actualidad

This article analyzes the history in Spain of the French firm Saint-Gobain, engaged in the production of glass and other building materials. Since in 1905 it set up its first and most important industrial subsidiary company in Spain (Cristalería Española S.A.), the French multinational experienced a process of almost uninterrupted growth in its neighbour country. It made large investments, trusting in the Spanish economy's growth potential, and worked to strengthen ties with politicians and businessmen of the time, whatever their ideological outlook. Brands such as “Duralex”, “Climalit” and “Securit” attest to the importance of Saint-Gobain in Spanish industry and Spaniards’ everyday life.

1970-1995: un reloj atrasado y otro tren perdido

It is an important period as a nearly total breaking with the way the cartoon story is understood happens; this kind of publications will not be devoted any more to the leisure and the education of the children and the young readers. The echos of the authored comic slowly came to Spain, there are some shy national authors along with works published in France, Argentina and Italy which are translated. As it is considered as a narrative expression form and grapically complex, it also stimulates the research on this media through different publications and exhibitions or even through semiological studies made at the university. In the late franquismo some magazines, fascicles and books, are published and show that this media had become “adult”. In one hand there are some experiments done related to genres like fantasy, adventures or horror and in the other hand, the underground comic appears as a countercultural autoctonous experience. Magazines such as Totem , Blue Jeans or Bumerang fixed from 1977 the guidelines that marked the following revolution of the Spanish industry. The very first disembarkation, compact and real, of the comic for adults, happens in 1978 with the publishing of a comic called 1984, then some new magazines such as El Vibora , Cimoc or Cairo got published too. The evolution of the comic devoted to children and young people is studied too. Considered in a certain way as an industrial process, this ended in 1986 with the closing of the Bruguera Publishing House.

Looking for performance: How innovation and strategy may affect market orientation models

Despite 20 years of research into various aspects of the ‘market orientation’ (MO) construct, doubt remains regarding the existence, nature and significancy of the relationship between MO and firm performance. To obtain more evidence some authors suggest including innovation in MO models. Debate continues to examine whether organizational strategy is an antecedent or a consequence of MO, whilst some argue that strategy moderates the MO–performance relationship. Furthermore, there are sectors of industry and geographies where the phenomenon has received very little investigation, even of an exploratory nature.This study aims to explore the MO–performance relationship and to value the effect of innovation in MO–performance models in a sector where MO was virtually unknown: the Spanish real estate industry. The magnitude of shifts taking place in this sector enhances its potential as a showcase for processes of anticipation and adaptation to the environment. This article also aims to shed some light on the question of whether strategy potentially moderates the MO– performance link. The principal implications of our findings are discussed.

The Role of Litigation in First-Mover Performance in M-Business

In recent years, technological advances and regulatory change have profoundly modified many Internet-related supply and user services. In some cases, although entry barriers for new competitors have been lowered, established companies have been able to reap certain sources of first-mover advantages (FMAs) as a result of their early entry into the market. Here, non-market strategies can be used by rivals and other industry participants to neutralize FMAs. This paper has two main objectives: on the one hand, to reflect on FMAs in an Internet-enabled market environment, specifically, mobile service providers; on the other hand, to study the impact of litigation on first-mover performance in the Spanish mobile services industry between November 2000 and July 2006. The results obtained show that litigation processes initiated against first mover Movistar, do not, on average, have a negative impact on market performance. Similarly, we observed that when legal proceedings do have an impact on a company’s stock market valuation, the negative impact, on average, outweighs the positive. Last, we also observed that the impact of some legal disputes on the first mover’s share price varies depending on who initiates legal actions and on the nature of the lawsuit filed.

R&D, RISK, AND PERFORMANCE IN THE SPANISH PHARMACEUTICAL INDUSTRY: A STRATEGIC GROUP ANALYSIS

This paper shows an analysis of strategic groups in the Spanish pharmaceutical industry. The first results reveal that differences between company performance and strategic groups do not exist. However, taking into account the innovative process in the pharmaceutical industry, when considering the risk-adjusted results we have confirmed the existence of differences among the strategic groups for some of the used indicators. The combination of radical and low-impact innovations, production for third parties, and commercialization under licenses can offer a better performance than other groups focused exclusively in innovation or in specific market segments.

La incidencia del capital humano y la cultura emprendedora en la innovación

The objective of the present study is to analyse the role played by the entrepreneurial culture of the organization and the value and uniqueness of employee knowledge (human capital) in generating innovation. This research has been conducted with a sample of companies in the most innovative sectors of Spanish industry, applying the Partial Least Squares (PLS) technique. The results demonstrate significant relationships between the value and uniqueness of the individual employee knowledge and company innovation. An entrepreneurial culture is found to act as a moderating variable, such that the influence on innovation exerted by the value of the knowledge possessed by employees is greater with this type of company culture.

An analysis of non-financial factors associated with financial distress

This article examines factors associated with financial distress among 1006 Spanish manufacturings (SMEs), distinguishing high and low technology industries. Financial distress is analysed using industrial organizational theory through the Porter's five competitive forces model (external factors) and the resource based view through strategic variables (internal factors), such as training, planning, innovation, technology and quality. Two different sources of information were used in the study: Qualitative information related to environmental conditions and strategic variables was gathered through a questionnaire addressed to the firm manager. Quantitative information to identify whether the firm was in financial distress was gathered from the balance sheets and earning statements of the firms. Evidence from this study shows that environmental conditions and some strategic variables are associated with financial distress. The results found that young SMEs with low technology and in a highly competitive environment had a higher probability of financial distress. High bargaining power of buyers and high degree of rivalry among existing competitors were positively associated with financial distress. Financial distress in high-technology industries was not affected by external factors. However, firms with a quality certification have better quality control procedures that ultimately improve financial performance of firms in the technology industries.

The Impact of Geographical Proximity on Vertical Integration through Specific Assets: The Case of the Spanish Meat Industry

The aim of this paper is to evaluate the role that agglomeration may have on vertical boundaries in exchanges associated with high transaction costs. Transaction cost economics identifies the presence of specific assets in stages of the value chain as the main driver of vertical integration. However, under the trustworthy and shared social milieu that agglomerated spaces may confer, neighboring firms can enjoy lower opportunism risk and communication costs. Therefore, we assume that even in the presence of specific assets, physically proximate firms are more likely to remain specialized and establish market exchanges. Empirical evidence in 10,186 establish- ments from the Spanish meat industry confirms these hypotheses, although it is found that the moderating role of agglomeration in the relationship between asset specificity and vertical inte- gration has a limited geographical reach. grow_541

Determinants of Earnings Benchmarks in the Spanish Hotel Industry

This paper focuses on an avoidance of earnings decreases and losses hypothesis in the Spanish hotel industry. In the first step, the earnings distribution (levels and changes in earnings related to one year against the previous year) is analysed to determine whether there is a discontinuity (that is, a ‘kink’) at the zero point. The methodology used is frequency histograms. The existence of a kink in the earnings distribution is an approximation of earnings management to avoid losses and earnings decreases (Burgstahler and Dichev, 1997). In the second step, the incidence of certain variables in the critical intervals of the frequency distribution (small losses against small profits and small decreases in earnings against small increases in earnings) is tested. In this context, the paper's purpose is to identify a set of variables that determine different behaviour around the benchmarks.

International Modularity and Offshoring in Spanish Industry

This paper aims to analyze participation by Spanish industrial firms in the marked process of international production modularity or fragmentation that is taking place on a global scale. It studies whether firms use offshoring (that is, transfer activities abroad), what type of activities are offshored, the type of offshoring used, the main target countries, the reasons for offshoring and the benefits it brings. Qualitative research into four Spanish business groups shows that they all use offshoring, mostly outsourcing manufacturing to international suppliers. When choosing offshore location, these groups aim to achieve not only cost savings but also advantages from the agglomeration of the agents with which they need to interact, as well as access to new markets and relevant resources (infrastructure, auxiliary industry, production capacity, technology and know-how).

La Internalización de los Costes Medioambientales en el transporte de mercancías por carretera

Prior literature noted the potential that advanced environmental management might have in the generation of valuable organizational capabilities regarding costs minimization. More-over, during last years, one of the most important objectives in the development of transport public policies has been the internalization of environmental costs. Thus, this study attempts, firstly, to analyze how transport companies could successfully face the challenge of internalis-ing environmental costs, and second, to highlight how the existence of an environmentally proactive pattern of behaviour might reduce the environmental costs on transport sector. In doing so, a case study in the Spanish industry of road freight transport has been elaborated. Despite nowadays companies face the environmental challenge not beyond legal require-ments, the main conclusion of this study is that an environmentally proactive behaviour re-inforces the sustainable development of companies.

Business strategy, human resource systems, and organizational performance in the Spanish banking industry

Although human resource (HR) systems in the form of bundles of HR practices and their impact on organizational performance have attracted considerable attention, the role that business strategy could play in this relationship remains uncertain, particularly in service industries. In order to avoid any confounding effects, this study analyzes the performance impact of adopting different HR systems in an empirical setting in which employees are vital if the company is to remain competitive, the firms belong to the same industry and the primary activities involved are the delivery of services to customers. Based on survey data from 86 banking institutions in Spain, three HR systems were identified, two of which rendered better organizational performance when matched to defender strategies, thus supporting a contingency explanation of the adoption of HR systems. Findings showed that even in an industry under strong universalistic pressures to adopt certain predictable HR practices, matching HR systems with a business strategy pays off.

Managing knowledge through human resource practices: empirical examination on the Spanish automotive industry

This paper considers the relationship between human resource management (HRM) and knowledge management (KM). Specifically, it examines how the human resource (HR) practices that are expected to impact on employees’ abilities, motivation, and opportunity to engage in KM, do so by enabling knowledge sharing, knowledge maintaining, and knowledge creation within organizations. HRM expected to impact employees’ abilities include training and development practices. HRM expected to impact on employees’ motivation include rewards and appraisal practices. HRM expected to impact on employees’ opportunities including providing the support of trusting collaborative relationships. Therefore, HR practices impacting employees’ abilities, motivation, and opportunities are expected to be positively related to knowledge sharing and maintaining within organizations. HR practices impacting employees’ abilities, motivation, and opportunity are expected to be positively related to knowledge creation through their effect on knowledge sharing within organizations. Our research methodology uses a questionnaire survey approach to collect data from firms belonging to the Spanish automotive industry. Results from a final sample of 64 Spanish automotive firms show that HR practices aimed at motivating and giving employees the opportunity to behave as expected significantly affect knowledge sharing and maintaining. Further, knowledge sharing and maintaining is shown to mediate the relationship between HR practices and knowledge creation. The paper ends with a conclusion, limitations and implications for future research.

Susceptibility of Prunus rootstocks to natural infection of Plum pox virus and effect of mineral oil treatments

The use of rootstocks that are less susceptible or resistant to natural Plum pox virus (PPV) infection and/or the application of mineral oil treatments are two possible strategies to reduce viral incidence in nursery plots. We evaluated the susceptibility of Prunus rootstocks used in the Spanish stone fruit industry and the effect of mineral oil treatment (Sunspray Ultrafine at 1%) on the spread of the virus at two different localities in Valencia, Spain, under different natural PPV inoculum pressures (high inoculum pressure, 2006‐08; low inoculum pressure, 2006‐07). Samples from both plots were analysed by double-antibody sandwich indirect enzyme-linked immunosorbent assay (DASI-ELISA) and spot real-time RT-PCR. Under high inoculum pressure, the assayed rootstocks exhibited significant differences in their susceptibility to natural infection. The most susceptible rootstocks at the end of the experiment were Adesoto 101 and Mariana GF8-1. Cadaman and Garnem rootstocks presented the fewest PPV-infected plants; these infections could be detected only by spot real-time RT-PCR. No differences among the assayed rootstocks were found under low PPV inoculum pressure. Aphid species were monitored using Moericke yellow water traps and sticky-plant methods at both localities in May 2006 and 2007. Aphis spiraecola was the most abundant aphid species monitored by both methods at both localities. The average percentage of A. spiraecola carrying PPV PCR-amplifiable targets was 30.37% in the plot with high PPV inoculum pressure and only 7.98% in the plot with low inoculum pressure. We found significant differences in PPV incidence between Mariana GF8-1 plots that were treated with mineral oil and those that were not treated after one year under natural conditions and high PPV inoculum pressure.

Efficiency and Market Power in Spanish Banking

Some recent studies have been investigating the existence of market power in the European banking system, in general, and the Spanish banking industry, in particular. Although results are mixed, the evidence suggests some commercial banks and savings banks benefit from monopoly rents. Some other studies [Berger and Hannan, Review of Economics and Statistics LXXX (1998) 454–465] have also found strong evidence that banks in more concentrated markets exhibit lower cost efficiency levels. Our study merges these two groups of findings by exploring how cost and revenue efficiency measures for Spanish banks are related to the so-called return to the dollar (RD), whose advantage over other profitability measures lies on it being a ratio—in contrast to the additive structure associated with profit. This relationship is explored by considering nonparametric procedures, a set of techniques which is more consistent with those employed to measure efficiency in the first stage of the analysis. Results show that banks’ efficiency is differently related to the return to the dollar according to different circumstances. Specifically, for those firms whose revenues are lower than their costs, the relationship is positive. However, it turns to be negative for those banks with revenues above costs, suggesting that the “quiet life” might be a reality for those banks exerting market power. This finding is more apparent when decomposing efficiency into its different components (cost/revenue, technical, and allocative), since the relationship found is more obvious for allocative efficiency, either on the cost or revenue side.

Linear and nonlinear interest rate exposure in Spain

PurposeThis paper aims to carry out a comprehensive analysis of the influence of interest rate risk on Spanish firms at the industry level.Design/methodology/approachThe methodology employed has its origin in the two‐index linear regression model proposed by Stone. This traditional interest rate exposure model has been extended in this paper to allow for a nonlinear exposure component as well as the presence of asymmetric behaviour in the exposure pattern.FindingsInterest rate exposure is not homogeneous for all the Spanish industries. In line with other markets, highly leveraged industries (construction and real estate), regulated industries (electrical and utilities), and banking industry are the most interest rate sensitive. Nevertheless, the interest rate exposure of Spanish firms also shows some distinctive features due to the peculiar structure of the Spanish market. It is also documented that the classical linear exposure profile prevails over the nonlinear and asymmetric exposure patterns, and that the introduction of the euro seems to have weakened the degree of interest rate risk.Practical implicationsThe evidence presented in this paper can be used as input in decision making by corporate managers, investors, and regulators interested in assessing the impact of interest rate risk at the sector level for hedging, portfolio management, or risk assessment purposes.Originality/valueThis is the first paper which tackles the analysis of the impact of interest rate risk on Spanish firms, taking into account not only the standard linear interest rate exposure profile but also the nonlinear one. The results found in the Spanish case reveal the existence of particularities which might also be present in countries immersed in a process of dramatic economic transformations similar to that experienced by Spain over the past two decades. This is the case of the Central and Eastern European countries which recently joined the European Union.

Oranges or "Lemons"? Family Farming and Product Quality in the Spanish Orange Industry, 1870-1960

In the early twentieth century California became a big exporter of some agricultural products that, until then, had only been grown on a large scale in the mediterranean basin. As a result, exports of those products diminished or stagnated in Mediterranean countries, with important repercussions on their economies. The Spanish orange industry, however, continued to expand, despite the fact that a substantial percentage of Spanish oranges came from farms owned by (often illiterate) small peasants who, in comparison to the California growers, used a great deal of labor, small amounts of capital, and little science. This paper shows that Spanish farmers were in fact capable of growing high-quality oranges at prices that were more competitive than those in California, although interested they often preferred to satisfy the strong demand for middling fruit from Great Britain because it was a more profitable business. This, combined with a deficient use of brand names, gave the Spanish citrus industry serious reputation problems by the 1930s, from which, however, it recovered quickly.