Do individual directors matter?

Paper 1: Pilot study of Swiss firms Abstract Using a fixed effects approach, we investigate whether the presence of specific individuals on Swiss firms’ boards affects firm performance and the policy choices they make. We find evidence for a substantial impact of these directors’ presence on their firms. Moreover, the director effects are correlated across policies and performance measures but uncorrelated to the directors’ background. We find these results interesting but conclude that they should to be substantiated on a dataset that is larger and better understood by researchers. Also, further tests are required to rule out methodological concerns. Paper 2: Evidence from the S&P 1,500 Abstract We ask whether directors on corporate boards contribute to firm performance as individuals. From the universe of the S&P 1,500 firms since 1996 we track 2,062 directors who serve on multiple boards over extended periods of time. Our initial findings suggest that the presence of these directors is associated with substantial performance shifts (director fixed effects). Closer examination shows that these effects are statistical artifacts and we conclude that directors are largely fungible. Moreover, we contribute to the discussion of the fixed effects method. In particular, we highlight that the selection of the randomization method is pivotal when generating placebo benchmarks. Paper 3: Robustness, statistical power, and important directors Abstract This article provides a better understanding of Senn’s (2014) findings: The outcome that individual directors are unrelated to firm performance proves robust against different estimation models and testing strategies. By looking at CEOs, the statistical power of the placebo benchmarking test is evaluated. We find that only the stronger tests are able to detect CEO fixed effects. However, these tests are not suitable to analyze directors. The suitable tests would detect director effects if the inter quartile range of the true effects amounted to 3 percentage points ROA. As Senn (2014) finds no such effects for outside directors in general, we focus on groups of particularly important directors (e.g., COBs, non-busy directors, successful directors). Overall, our evidence suggests that the members of these groups are not individually associated with firm performance either. Thus, we confirm that individual directors are largely fungible. If the individual has an effect on performance, it is of small magnitude.

A longitudinal cross-country study of entrepreneurial orientation

As recent research documents, there has been an impressive effort of studying the entrepreneurial orientation construct and its nomological role. However, most research has been very context specific and based on the analyses of cross-sectional information. We study causal performance effects from entrepreneurial orientation and its key dimensions in two economic contexts–developed and emerging markets. Gathering data on a sample of 94 firms in developed market context and 108 in emerging market context at two time-points we explore our hypotheses. The results suggest that in a developed economy entrepreneurial orientation has a positive impact on firm performance, whereas in the emerging market context this effect is negative. Furthermore, we assess the contribution of each dimension to the aggregate construct and reveal the importance of risk-taking in both contexts. Finally, we highlight the role of environmental dynamism and explain its varying effect

Organisational learning, strategic rigidity and technology adoption: Implications for electric utilities and renewable energy firms

This paper examines the implications of strategic rigidness for technology adoption behaviours among electric utilities. Such behaviours lead to heterogeneity in firm performance and consequently affect the electric utility industry. The paper's central aim is to identify and describe the implications of strategic rigidness for a utility firm's decision making in adopting newer renewable energy technologies. The findings indicate that not all utility firms are keen to adopt these new technologies, as these firms have traditionally been operating efficiently with a more conventional and mature technological arrangement that has become embedded in the organisational routine. Case studies of Iberdrola S.A. and Enel S.p.A. as major electric utilities are detailed to document mergers and acquisitions and technology adoption decisions. The results indicate that technology adoption behaviours vary widely across utility firms with different organisational learning processes and core capabilities.

Distribuição de valor para o stakeholder funcionário e desempenho organizacional

A teoria dos stakeholders tem apresentado significativos avanços conceituais quanto a criação e distribuição de valor para os stakeholders. No entanto, algumas questões ainda são pouco exploradas nessa literatura. Uma delas refere-se à relação entre a distribuição de valor para os stakeholders e o desempenho organizacional. Esta pesquisa contribui com esta questão ao analisar a relação entre distribuição de valor tangível e intangível para o stakeholder funcionário e o desempenho organizacional. Como objetivos específicos, definiu-se: a) analisar a relação entre distribuição de valor tangível para os funcionários e o desempenho de curto e longo prazo da empresa; b) analisar a relação entre distribuição de valor intangível para os funcionários e o desempenho de curto e longo prazo da empresa. Para operacionalização da pesquisa foi selecionado o stakeholder funcionário, uma vez que este é um dos stakeholders mais estreitamente ligado à criação de valor da empresa, tem acesso a informações chaves, possui competências críticas para a geração de renda, e, consequentemente, um custo de reposição muito alto. A Revisão de Literatura abordou três teorias. A primeira foi a Teoria dos Stakeholders, da qual emergiu o problema de pesquisa. A segunda teoria utilizada foi a Gestão Estratégica de Recursos Humanos que contribuiu para a discussão sobre atendimento do stakeholder funcionário e desempenho organizacional. Por fim, foram empregadas teorias de motivação para explicar como o valor distribuído ao funcionário afeta sua motivação e, consequentemente, o desempenho organizacional. O método utilizado compreende uma abordagem quantitativa, cuja análise dos dados foi realizada por meio da técnica de regressão. Foram analisadas 40 empresas ao longo de quatro anos. A amostra compreendeu o conjunto de empresas que responderam ao questionário do Índice de Sustentabilidade Empresarial (ISE), da BM&FBovespa, nos anos de 2010 à 2013. Este conjunto incluiu tanto empresas de capital aberto, listadas na Bolsa de Valores, quanto suas controladas. Os resultados desta pesquisa indicam que o valor tangível está mais associado ao desempenho de curto prazo enquanto o valor intangível tem efeitos no desempenho de longo prazo. Esta pesquisa apresenta contribuições teóricas e gerenciais. Sob o ponto de vista teórico, apresenta os mecanismos pelos quais a distribuição de valor para o stakeholder funcionário afeta o desempenho organizacional e testa empiricamente essa relação. Em termos gerenciais, os resultados são úteis para os gestores na decisão de que tipo de valor distribuir para o atendimento do funcionário que resulte em um melhor desempenho organizacional.

Factores determinantes de los resultados derivados de las actividades de patrocinio y mecenazgo

El objetivo de este trabajo consiste en analizar los resultados empresariales derivados de las acciones de patrocinio y mecenazgo, así como sus factores determinantes. La metodología aplicada utiliza el event study para estimar los excesos de rentabilidad de las acciones generadas en Bolsa por una muestra de 21 noticias de patrocinio y 37 noticias de mecenazgo, correspondientes a 26 empresas españolas. Adicionalmente se realiza un análisis de regresión para determinar la influencia de ciertas dimensiones (el origen del evento, así como el vínculo entre el evento y la actividad de la empresa) sobre dichas rentabilidades anormales. La aplicación empírica efectuada ha permitido detectar que sólo las acciones de patrocinio generan rentabilidad, siendo sus principales determinantes el tamaño y el vínculo entre el evento financiado y la actividad de la empresa.

Determinantes de la eficiencia en el canal de distribución: análisis en agencias de viajes

El incremento de la competencia entre agencias de viajes y el impacto del comercio electrónico como una alternativa al canal de distribución turístico tradicional han dado lugar a un entorno en el que la gestión eficiente de los recursos productivos resulta fundamental para las agencias de viajes. Así, el objetivo del trabajo consiste en estimar la eficiencia con la que operan los intermediarios del sector minorista español de distribución turístico, y conocer la influencia de algunos de sus factores determinantes (salarios, antigüedad y oferta de servicios de comercio electrónico). La metodología de investigación se apoya en la estimación de una frontera paramétrica de naturaleza estocástica. El análisis empírico efectuado sobre una muestra de 1086 agencias de viajes en 2004 evidencia bajos niveles de eficiencia, que son explicados por el nivel de salarios medio y por la antigüedad de la agencia.

El compromiso medioambiental de los hoteles españoles y el impacto sobre su rendimiento

Este estudio examina la relevancia de la gestión medioambiental como fuente de ventaja competitiva para los hoteles. Se estudia la relación entre los distintos grados de compromiso ambiental de los hoteles de 3 a 5 estrellas españoles y su rendimiento empresarial. Se identifican tres tipos de compromiso medioambiental: proactivo, básico y reactivo. Los resultados obtenidos muestran que cuanto mayor es el grado de compromiso medioambiental de los hoteles mayor es su rendimiento de forma significativa.

Gestión de la calidad y medioambiental y rendimiento empresarial: un análisis de los hoteles españoles

Un tema importante en la literatura sobre calidad es la relación entre la gestión de la calidad y el rendimiento empresarial. Lo mismo ocurre en el campo de la gestión medioambiental. La literatura ha analizado estos sistemas por separado y principalmente en empresas manufactureras. Este estudio analiza conjuntamente ambas prácticas de gestión en el sector hotelero. En concreto, este trabajo identifica los niveles de compromiso con la gestión de la calidad y la gestión ambiental de los hoteles españoles y examina la relación entre el compromiso conjunto con estos sistemas de gestión y el rendimiento empresarial. Los resultados muestran tres tipos de hoteles de acuerdo con su nivel de compromiso con la gestión de la calidad y la gestión ambiental: proactivos, intermedios y reactivos. Además, se ha comprobado que el rendimiento crece conforme mayores son los niveles de compromiso con la gestión de la calidad y el medio ambiente.

Certificación en calidad, resultados empresariales y estructura organizativa en el sector hotelero español

Objeto: La certificación en calidad puede ayudar a las empresas a mejorar su eficiencia y sus resultados. El objetivo de este artículo es analizar las diferencias entre los hoteles certificados y no certificados con relación al desarrollo de prácticas de gestión de la calidad, los resultados y el tipo de ventaja competitiva que suelen desarrollar, y los cambios en la estructura organizativa. Diseño/metodología/enfoque: El trabajo clasifica a los hoteles en dos grupos, hoteles certificados en calidad y no certificados, y analiza las diferencias significativas entre grupos. Aportaciones y resultados: Los resultados muestran que los hoteles certificados desarrollan en mayor medida las prácticas de gestión de la calidad, alcanzan mejores resultados empresariales y una mayor diferenciación y tienen niveles altos de formalización y de coordinación interdepartamental. Originalidad/valor añadido: La principal contribución de este trabajo es analizar si la certificación aporta valor para el sector hotelero.

Asymmetric rivalry within and between strategic groups

Our study examines asymmetric rivalry within and between strategic groups defined according to the size of their members. We hypothesize that, owing to several forms of group-level effects, including switching costs and efficiency, strategic groups comprising large firms expect to experience a large amount of retaliation from firms within their group and accommodation from the group comprising smaller firms. Small firms, on the other hand, expect to experience a small amount of retaliation from the group comprising large firms and no reaction from the other firms in their group. We estimate the effect of group-level strategic interactions on firm performance. Our analysis reveals that the rivalry behavior within and between groups is asymmetric, which supports the dominant-fringe relation between firms, as described in our hypothesis.

Certificación medioambiental, competitividad y resultado empresarial: un estudio híbrido en el sector hotelero

La Responsabilidad Social en general, y la Gestión Medioambiental en particular, pueden influir sobre el resultado y la competitividad de las empresas. El objetivo principal de este trabajo es analizar la relación entre certificación medioambiental, rendimiento medioambiental, competitividad y resultado empresarial en el sector hotelero español. Además, también se analizan y comparan los niveles alcanzados de proactividad medioambiental para el grupo de hoteles certificados y no certificados. El método de investigación utilizado es híbrido, combinando una parte cualitativa con otra cuantitativa. Los resultados indican que los hoteles que tienen certificado su sistema de Gestión Medioambiental alcanzan mayores niveles de resultado en términos de porcentaje de ocupación e ingresos por habitación disponible (RevPAR). Además, los hoteles certificados obtienen un mejor rendimiento medioambiental. Con relación a la ventaja competitiva, los hoteles certificados desarrollan una ventaja en diferenciación significativamente superior.

The differentiated effects of CSR actions in the service industry

Purpose – The purpose of this study is to attempt to explain why the impact of Corporate Social Responsibility (CSR) initiatives may be different and/or more important in service firms compared to manufacturing firms. CSR is becoming a common strategy, hence its extensive research. Central to it is the analysis of the effect of CSR on a firm’s performance, whose outcome depends on firm-specific and industry-related factors. Design/methodology/approach – The event study methodology is applied to all the 248 companies that have ever traded on the Spanish Stock Market between 1990 and 2007. A regression analysis examines potential different effects of CSR on service and goods firms. Findings – The results show that CSR activities have a positive impact on firm performance that is higher for service firms than for manufacturing firms. Actions related to the environment, responsible labor relationships and good corporate governance are especially important in the service context. Research limitations/implications – This research is focused on shareholders’ performance, but it does not consider other stakeholders, such as real consumer behavior or employees’ commitment and productivity. Practical implications – Service firms are likely to gain from focusing on some CSR activities (environment, employees and good corporate governance) and should use their responsible behavior as a valuable tool for public relations and differentiation in the market. Originality/value – This article is the first attempt to empirically test and explain why the relationship between CSR and firm performance may be different (more positive) for service vs manufacturing firms.

Industry-specific effect of CSR initiatives: hotels and airlines

Purpose – This study aims to examine the relationships between a firm's corporate social responsibility (CSR) activities and its performance and risk. The authors hypothesize that industry-level effects are highly determinant of the sign and magnitude of these relationships to establish a ranking of industries to identify the position of the most prominent tourism-related industries: hotels and airlines. Based on the cybernetic model of decision making and the heuristics thereof, shareholders base their investment decisions derived from CSR announcements on the idea that the industries behave differently; their fixed costs being a relevant factor. Design/methodology/approach – The authors estimate the industry-specific effects of CSR initiatives on firms' performance and risk using a sample of 583 announcements from the Spanish Stock Market. Findings – The results show that while CSR announcements have a positive effect on performance when the authors do not account for industry-specific factors, once the authors incorporate these factors into the analysis, the authors find that firm performance and risk vary quite substantially as a function of the industry to which the firm belongs. Interestingly, while the hotel industry presents an average behavior (standing at 9th position in returns, 15th in terms of risk, and 8th according to the ratio returns/volatility), the airline industry presents the worst situation of all industries: last in performance and last in risk. Practical implications – The results help managers assess their decisions and allocate CSR resources optimally. Originality/value – This article is the first attempt to empirically test and comprehensively detect the different relationships between CSR and firm performance across industries.

The Effectiveness of Firms' Strategic Orientations: Investigating Multiple Theoretical Perspectives

The strategic orientation of firms can take on many forms. Researchers most commonly distinguish between entrepreneurial, market, and learning orientations. In combination, strategic orientations represent a firm's value proposition in terms of the markets in which it operates, where it deploys its resources, and which behavioral patterns are established. This thesis provides insights into the effectiveness of strategic orientations by adopting multiple theoretical perspectives. The strategic orientations of entrepreneurial, market, learning, and innovation orientations are investigated in an isolated as well as interrelated manner. The first research article concentrates on entrepreneurial orientation as its conceptualization and operationalization is subject to several debates in the literature. This conceptual study shows how the challenges of the entrepreneurial orientation construct can be overcome in future research to arrive at a higher level of construct clarity. Thereby, the theoretical perspectives of entrepreneurial dominant logic and the theory of planned behavior are employed. The literature has predominantly focused on investigating the effectiveness of particular strategic orientations. Recently, scholars have stressed their synergetic impact on firm performance and, as such, the relevance of considering their combined role in creating superior value for firms. However, empirical research on their interrelatedness remains scant and dispersed, making it necessary to conduct further research on strategic orientations in an integrative manner. As such, the second research article demonstrates which interrelated roles are played by entrepreneurial, market, and learning orientations in their relationship to firm performance. The rich body of existing knowledge is synthesized by means of meta-analysis under the perspective of strategic coalignment as well as the resource-based view of the firm.

Essays on Entrepreneurship and Founder Pre-entry Knowledge

Thesis (Ph.D.)--University of Washington, 2016-06