Match!

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 Vicente9
Estimated H-index: 9
(University of Salamanca)
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 (16)
  • Citations (14)
📖 Papers frequently viewed together
126 Citations
1974
2,170 Citations
161 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References16
Newest
#1Gunnar Hedlund (HHS: Stockholm School of Economics)H-Index: 9
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...
1,295 CitationsSource
#1Michael Mayer (Glas.: University of Glasgow)H-Index: 13
#2Richard Whittington (University of Oxford)H-Index: 44
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...
83 CitationsSource
#1William P. Wan (ASU: Arizona State University)H-Index: 13
#2Robert E. Hoskisson (OU: University of Oklahoma)H-Index: 59
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...
437 CitationsSource
8 CitationsSource
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...
13 CitationsSource
#1John Child (University of Birmingham)H-Index: 39
#2Rita Gunther McGrath (Columbia University)H-Index: 31
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...
394 CitationsSource
#1Andrew Pettigrew (Warw.: University of Warwick)H-Index: 56
#2Richard W. Woodman (A&M: Texas A&M University)H-Index: 22
Last. Kim S. Cameron (UM: University of Michigan)H-Index: 47
view all 3 authors...
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...
957 CitationsSource
#1Henk W. Volberda (EUR: Erasmus University Rotterdam)H-Index: 49
By considering flexibility as a valuable strategic option in turbulent environments, this article distinguishes four types of effective response to strategic change. From this typology different trajectories of revitalization are derived. On the basis of this typology, the article describes a method for diagnosing organizational flexibility and guiding the transition process, the Flexibility Audit & Redesign (FAR) method. This method was applied successfully within the Dutch Postbank NV, Philips...
151 CitationsSource
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...
788 CitationsSource
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.
508 CitationsSource
Cited By14
Newest
#1Jose I. GalanH-Index: 13
view all 3 authors...
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...
2 CitationsSource
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...
2 CitationsSource
#1Fernando Muñoz-Bullón (Charles III University of Madrid)H-Index: 14
#2Maria J. Sanchez-Bueno (Charles III University of Madrid)H-Index: 10
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...
12 CitationsSource
#1Maria J. Sanchez-Bueno (University of Salamanca)H-Index: 10
#2Isabel Suárez-González (University of Salamanca)H-Index: 7
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...
3 CitationsSource
#1Ignacio Santa Cruz (Autonomous University of Barcelona)H-Index: 2
#2Gisela Redondo (University of Barcelona)H-Index: 3
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...
1 CitationsSource
#1César CamisónH-Index: 19
Last. Ana Villar-LópezH-Index: 5
view all 3 authors...
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...
2 Citations
#1Jose I. Galan (University of Salamanca)H-Index: 13
#2Maria J. Sanchez-Bueno (University of Salamanca)H-Index: 10
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...
37 CitationsSource
#1Tzu-Ju Ann Peng (Providence University)H-Index: 2
#2Mike Bourne (Cranfield University)H-Index: 27
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...
103 CitationsSource
#1Jose I. Galan (University of Salamanca)H-Index: 13
#2Maria J. Sanchez-Bueno (University of Salamanca)H-Index: 10
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...
18 CitationsSource
This study analyzes the fit between corporate strategy and organizational structure, and its effect on eco- nomic results for the large Spanish firms. In order to examine the multidimensional concepts of diversification stra- tegies and organizational forms, we use the perspective of fit as a "ideal" profile deviation. The results show that exist three strategic categories (related diversification, unrelated diversification and diversification based on know- ledge), and that each category has di...
1 Citations