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Strategic and Organizational Evolution of Spanish Firms: Towards a Holding Network Form?

Published on Dec 1, 2005in British Journal of Management2.75
· DOI :10.1111/j.1467-8551.2005.00465.x
Jose I. Galan13
Estimated H-index: 13
(URJC: King Juan Carlos University),
María José García Sánchez7
Estimated H-index: 7
(University of Salamanca),
José Angel Zúñiga Vicente8
Estimated H-index: 8
(University of Salamanca)
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Abstract
The main objective of this study is to analyse the strategic and organizational evolution of large firms in a current time period and within a specific geographical context (Spain). In order to achieve this purpose, the paper combines the Chandlerian programme with processual analysis. We draw on documentary sources (annual reports, company histories, business directories and so on) and interviews. We have found that in the model of corporate development some characteristics of new organizational structures will coexist with some features of old ones. In line with previous studies our findings highlight the existence of the 'multidivisional network' but, most importantly, our findings also reflect the emergence of a new kind of organizational form that we call 'holding network'. The 'holding network' is more decentralized, both strategically and operationally, than the multidivisional form. However, its level of decentralization is less than in the N-form. Furthermore, whereas the multidivisional form is a hierarchy, the 'holding network' emphasizes the communication among people of different levels. This multilevel communication differs from that in the N-form. Apart from the horizontal communication in the same level there is vertical and horizontal communication between different levels. We conclude by emphasizing the need to explore in future empirical studies to what extent these patterns and new organizational forms should be considered as a transitory or consolidated phenomenon.
  • References (17)
  • Citations (14)
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References17
Newest
Published on Jun 14, 2007in Strategic Management Journal5.57
Gunnar Hedlund9
Estimated H-index: 9
(HHS: Stockholm School of Economics)
A model of knowledge management is developed. It builds on the interplay between articulated and tacit knowledge at four different levels: the individual, the small group, the organization, and the interorganizational domain. The model is applied on differences between Western and Japanese patterns of knowledge management. These are related to organizational characteristics, such as employment systems, career patterns, and organization structure. Effective knowledge management is argued to requi...
Published on Aug 1, 2003in Strategic Management Journal5.57
Michael Mayer13
Estimated H-index: 13
(Glas.: University of Glasgow),
Richard Whittington46
Estimated H-index: 46
(University of Oxford)
This research note examines the stability of diversification performance relationships in three countries (France, Germany and the United Kingdom), for two time periods (1982–84 and 1992–94). The aggregate findings, taking the three countries and two time periods together, support a general model favoring related-constrained diversification. However, disaggregated analyses show sharp variations in different countries and time periods. The note concludes that although broad performance relationsh...
Published on Feb 1, 2003in Academy of Management Journal7.19
William P. Wan13
Estimated H-index: 13
(ASU: Arizona State University),
Robert E. Hoskisson58
Estimated H-index: 58
(OU: University of Oklahoma)
This study reexamines the relationships between corporate diversification strategies and firm performance and suggests that these relationships are related to home country environments. We examined two environmental aspects: factors that facilitate transformational activities and institutions that foster transactional activities. Using a sample of firms from six Western European countries, we found support for the study's central proposition, that home country environment is an important compone...
Published on Feb 1, 2002in Industrial and Corporate Change1.82
Neil M. Kay11
Estimated H-index: 11
Whittington et al. (Industrial and Corporate Change, 1999, 8, 519--550) argue that the conglomerate is a relatively transient phenomenon. However, this comment on their article argues that examination of their data suggests that the conglomerate may be more persistent than is generally believed. It is argued that the reason for this may be found in the contribution this strategy may make to dealing with technologically turbulent environments. The results of Whittington et al. are compared with o...
Published on Dec 1, 2001in Academy of Management Journal7.19
John Child49
Estimated H-index: 49
(University of Birmingham),
Rita Gunther McGrath29
Estimated H-index: 29
(Columbia University)
The transition from an economy based on materials to an economy based on flows of information has created considerable challenges for organization design by unfettering many organizational aspects from physical constraints. We view the resulting new organizational forms as coping with four core issues: interdependence, disembodiment, velocity, and power. The nine articles in this special research forum provide evidence on how forms have changed, as well as on which aspects of traditional theoriz...
Published on Aug 1, 2001in Academy of Management Journal7.19
Andrew Pettigrew55
Estimated H-index: 55
(Warw.: University of Warwick),
Richard W. Woodman22
Estimated H-index: 22
(A&M: Texas A&M University),
Kim S. Cameron49
Estimated H-index: 49
(UM: University of Michigan)
This article presents several studies that examine organizational change. The authors note that certain issues should be addressed when examining the studies including an examination of the multiple contexts and levels of analysis in studying organizational change, the inclusion of time, history, process and action, the link between change processes and organizational performance, the investigation of international and cross-cultural comparisons, the study of receptivity, customization, sequenci...
Published on Aug 1, 1996in Organization Science3.26
Henk W. Volberda49
Estimated H-index: 49
Hypercompetition has received much attention, but an important question has not been answered: What organizational forms lead to success in hypercompetitive environments? Hypercompetition forces firms to move more quickly and boldly and to experiment in ways that do not conform to traditional administrative theory. Bureaucratic vertical forms severely hamper the ability to respond to accelerating competition. Flexible forms, in contrast, can respond to a wide variety of changes in the competitiv...
Published on Aug 1, 1994in American Sociological Review5.39
Gerald F. Davis35
Estimated H-index: 35
,
Kristina A. Diekmann14
Estimated H-index: 14
,
Catherine H. Tinsley1
Estimated H-index: 1
In a press bending arrangement for an aluminum profile, especially for manufacturing the equator profile for an LNG-tank, the press is connected to control and measuring devices in such a manner, that the reflection of the workpiece is taken into account both in bending the profile and in determining the bending control based on measurements being made.
Published on Jan 1, 1992in Strategic Management Journal5.57
Andrew Pettigrew55
Estimated H-index: 55
(Warw.: University of Warwick)
This essay discusses the character and significance of strategy process research. Process research in strategic management is paradigmatically diverse and empirically complex. Strategy process research has been narrow in its focus and its undoubted contribution has sometimes been obscured by the lack of explicit discourse about its analytical foundations. The essay draws on a wide range of social science ideas to lay out a set of internally consistent insights and assumptions to guide thinking a...
Cited By14
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Published on Sep 1, 2012in Esic market
Jose I. Galan13
Estimated H-index: 13
,
Maria J. Sanchez-Bueno9
Estimated H-index: 9
,
José Angel Zúñiga Vicente8
Estimated H-index: 8
This study explores organizational change in different industrial environments in terms of how coordination mechanisms evolve with a focus on the role that incentive systems can play as a determinant of the subsequent organizational change process. The empirical setting consists of two large Spanish firms belonging to different industries. One of the firms belong to a highly technological-intensive sector in the economy (chemical and biotechnology) whereas the other one belongs to a more traditi...
Published on Dec 28, 2011in African Journal of Business Management
Kader Sahin1
Estimated H-index: 1
The aim of the present study is to investigate why Turkish business groups resist the adoption of the M-form despite Chandler’s well-established premise on the evolution of multi-activity firms toward the M-form in post-liberalization. This paper is based on the economic and institutional theory. An analysis of the findings reveals that the holding companies (H-form) resist the M-form despite the strategystructure misfit. On the other hand, inward-oriented internalization strategy which is pursu...
Published on May 17, 2011in Euromed Journal of Business
Fernando Muñoz-Bullón14
Estimated H-index: 14
(Charles III University of Madrid),
Maria J. Sanchez-Bueno9
Estimated H-index: 9
(Charles III University of Madrid)
Purpose – The purpose of this paper is to examine the joint effect of product and international diversification strategies on the performance of small and medium enterprises (SMEs) in Spain.Design/methodology/approach – The authors rely on a panel data of small and medium Spanish manufacturing enterprises over the period 1993‐2006, collected from the Spanish Survey of Business Strategies.Findings – The evidence reveals the existence of a negative relationship between geographic expansion and pro...
Maria J. Sanchez-Bueno9
Estimated H-index: 9
(University of Salamanca),
Isabel Suárez-González7
Estimated H-index: 7
(University of Salamanca)
Purpose – The objective of this paper is to analyze the organizational change in 100 of the largest Spanish firms (a new national context) over the period 1993‐2003 (a more recent time period).Design/methodology/approach – To achieve this purpose, consideration has been given to both traditional organizational categories and new organizational forms, such as cooperative multidivisional, competitive multidivisional, and the internal network. Detailed definitions of the new organizational forms be...
Published on Jan 1, 2010in Revista Signos0.55
Ignacio Santa Cruz2
Estimated H-index: 2
(Autonomous University of Barcelona),
Gisela Redondo3
Estimated H-index: 3
(University of Barcelona)
Resumen : El contexto empresarial es uno de los ambitos sociales en los que una pro-porcion elevada de poblacion activa invierte la mayoria de su tiempo de trabajo. Estos espacios son un reflejo de los cambios de las sociedades actuales siendo, por tanto, cada vez mas diversos. En funcion de las interacciones y los actos comunicativos que existan entre la diversidad de personas empleadas, las empresas pueden ser espacios de inclusion o exclusion hacia determinados colectivos. En este articulo se...
Published on Jan 1, 2010
César Camisón18
Estimated H-index: 18
,
Montserrat Boronat Navarro1
Estimated H-index: 1
,
Ana Villar-López5
Estimated H-index: 5
espanolEl objetivo de este trabajo es sintetizar las principales estructuras organizativas y estrategias competitivas adoptadas por las pequenas y medianas empresas (pymes) con la finalidad de identificar las posibles ventajas estrategicas asociadas a las mismas y que pueden ser la clave del exito competitivo en el actual entorno globalizado. Las estructuras organizativas propias de las pymes (pyme independiente, modelo ensanchado y/o distritos industriales) y las estrategias competitivas, sobre...
Published on Nov 1, 2009in Strategic Management Journal5.57
Jose I. Galan13
Estimated H-index: 13
(University of Salamanca),
Maria J. Sanchez-Bueno9
Estimated H-index: 9
(University of Salamanca)
This study analyzes whether a diversification strategy facilitates subsequent divisionalization (and hence that ‘structure follows strategy’), and/or whether the multidivisional structure leads to a diversification strategy (and hence that ‘strategy follows structure’). In theoretical terms, this study is original in that it institutes a debate between the Chandler thesis and other perspectives that challenge the generalizability of the strategy‐structure nexus. Interestingly, this new study wit...
Published on Sep 1, 2009in British Journal of Management2.75
Tzu-Ju Ann Peng1
Estimated H-index: 1
(Providence University),
Mike Bourne26
Estimated H-index: 26
(Cranfield University)
The issue of coopetition, the coexistence of cooperation and competition, has recently come to the fore in the strategic management field. Previous coopetition research has focused on the intra-organizational level, inter-organizational level and triad level, but less attention has been paid to coopetition at the network level. The purpose of this paper is to address the coexistence of competition and cooperation between networks, and to depict how networks with different structures interact wit...
Published on Jun 1, 2009in Organization Studies3.54
Jose I. Galan13
Estimated H-index: 13
(University of Salamanca),
Maria J. Sanchez-Bueno9
Estimated H-index: 9
(University of Salamanca)
This study analyses the evolution in large firms' strategy and structure in a new spatial and temporal context (Spain 1993—2003). The central question of this work is to determine whether transformations undergone in this country have led Spanish companies' strategies and structures to converge with those of other European countries, following the predictions of `universalistic' theories of strategy and organization; or whether cultural/institutional effects have remained strong, following a pat...
Maria J. Sanchez-Bueno9
Estimated H-index: 9
,
Isabel Suárez González10
Estimated H-index: 10
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