Toward a Subjective Measurement Model for Firm Performance

Firm performance is a relevant construct in strategic management research and frequently used as a dependentvariable. Despite this relevance, there is hardly a consensus about its definition, dimensionality andmeasurement, what limits advances in research and understanding of the concept. This article proposes and testsa measurement model for firm performance, based on subjective indicators. The model is grounded instakeholder theory and a review of empirical articles. Confirmatory Factor Analyses, using data from 116Brazilian senior managers, were used to test its fit and psychometric properties. The final model had six firstorderdimensions: profitability, growth, customer satisfaction, employee satisfaction, social performance, andenvironmental performance. A second-order financial performance construct, influencing growth andprofitability, correlated with the first-order intercorrelated, non-financial dimensions. Results suggest dimensionscannot be used interchangeably, since they represent different aspects of firm performance, and corroborate theidea that stakeholders have different demands that need to be managed independently. Researchers andpractitioners may use the model to fully treat performance in empirical studies and to understand the impact ofstrategies on multiple performance facets

The Variance Composition of Firm Growth Rates

Firms exhibit a wide variability in growth rates. This can be seen as another manifestation of the fact that firms are different from one another in several respects. This study investigated this variability using the variance components technique previously used to decompose the variance of financial performance. The main source of variation in growth rates, responsible for more than 40% of total variance, corresponds to individual, idiosyncratic firm aspects and not to industry, country, or macroeconomic conditions prevailing in specific years. Firm growth, similar to financial performance, is mostly unique to specific firms and not an industry or country related phenomenon. This finding also justifies using growth as an alternative outcome of superior firm resources and as a complementary dimension of competitive advantage. This also links this research with the resource-based view of strategy. Country was the second source of variation with around 10% of total variance. The analysis was done using the Compustat Global database with 80,320 observations, comprising 13,221 companies in 47 countries, covering the years of 1994 to 2002. It also compared the variance structure of growth to the variance structure of financial performance in the same sample

AGLOMERAÇÃO INDUSTRIAL E SEU EFEITO NA TAXA DE CRESCIMENTO DAS EMPRESAS BRASILEIRAS

Taking the form of local productive arrangements, industrial districts or even clusters, following Michael Porter, firm agglomeration in specific locations has been considered a relevant phenomenon that can positively affect firm and region competitiveness. Theoretical support for this effect can be found in economic geography or in theories derived from the positive externalities as indicated by Marshall since the XIX century. However, broader empirical support and an assessment of the magnitude of this effect is still a challenge. This paper contributes to this effort using the following research question: what is the effect of agglomeration (firms of the same industry in a certain region) in firm’s growing rates? The research examined more than 16,000 Brazilian manufacturing establishments, covering a 10 year period (from 1996 to 2005), accessing micro-data of Industrial Annual Research (Pesquisa Industrial Anual -PIA) of Brazilian Official Statistics Institute (IBGE) and measured the effect of agglomeration on firm growth rate. Analysis used a cross-classified multilevel model that also allowed variance decomposition of firm growth rates. A positive, small, but statistically significant effect was found. Results also suggest that this relationship has an inverted U shape, indicating the possibility of limits to the positive effect of agglomeration on firms’ growth.En la forma de arreglos productivos locales (APLs), distritos industriales o mismo clusters, conforme la concepción de Michael Porter, la aglomeración de empresas en localidades específicas ha sido considerada como un fenómeno relevante que puede contribuir favorablemente para la competitividad de las empresas y de las regiones. Los fundamentos teóricos de este efecto positivo pueden ser encontrados tanto en la Geografía Económica como en las teorías de Externalidades Positivas de las Aglomeraciones de Marshall. Sin embargo, la comprobación empírica de este fenómeno y la medición de su magnitud todavía es un reto para los investigadores. Este trabajo se inserta en esta cuestión, contribuyendo con respuestas a la siguiente cuestión de investigación: ¿Cuál es el efecto de la aglomeración de empresas de misma actividad en la tasa de crecimiento de estas empresas? Una investigación cuantitativa que analizó más de 16.000 establecimientos brasileños de manufactura en el periodo de 1996 a 2005, con acceso a los microdatos de Investigación Industrial Anual (PÍA) del IBGE midió el efecto de la aglomeración en la tasa de crecimiento. El análisis fue hecho usando un modelo multinível de clasificación cruzada, lo que también permitió una descomposición de la variancia de la tasa de crecimiento. Se identificó un efecto estadísticamente significativo, pero pequeño, dentro de la variabilidad de las tasas de crecimiento. Los resultados sugieren aun que la relación entre aglomeración y crecimiento pueda tener la forma de uno U invertido, indicando la posibilidad de que existan límites a las ventajas de crecimiento asociadas a la aglomeración.Na forma de arranjos produtivos locais (APLs), distritos industriais ou mesmo clusters, conforme a concepção de Michael Porter, a aglomeração de empresas em localidades específicas tem sido considerada como um fenômeno relevante que pode contribuir favoravelmente para a competitividade das empresas e das regiões. Os fundamentos teóricos deste efeito positivo podem ser encontrados tanto na geografia econômica como nas teorias de externalidades positivas das aglomerações de Marshall. Porém, a comprovação empírica deste fenômeno e a mensuração de sua magnitude ainda é um desafio para os pesquisadores. Este trabalho se insere nesta questão contribuindo para responder à seguinte questão de pesquisa: qual o efeito da aglomeração de empresas de mesma atividade na taxa de crescimento destas empresas? Uma pesquisa quantitativa que analisou mais de 16.000 estabelecimentos brasileiros de manufatura no período de 1996 a 2005, com acesso aos micro-dados da Pesquisa Industrial Anual (PIA) do IBGE mediu o efeito da aglomeração na taxa de crescimento. A análise foi feita usando-se um modelo multinível de classificação cruzada, o que também permitiu uma decomposição da variância da taxa de crescimento. Identificou-se um efeito estatisticamente significativo, mas pequeno dentro da variabilidade das taxas de crescimento. Os resultados sugerem ainda que a relação entre aglomeração e crescimento possa ter a forma de um U invertido, indicando a possibilidade de existirem limites às vantagens de crescimento associadas à aglomeração

The Relational View: Future challenges for a non-confirmed expectation

Purpose – Despite its theoretical potential, the relational view proposed by Dyer and Singh (1998) has not been established as a dominant theoretical framework, since the concomitant use of its main constructs is rare. This paper intended to test the relational view considering the impact of its constructs on the economic value created in relationships between buyers and suppliers. Design/methodology/approach – A cross-sectional survey with 121 respondents was conducted in the Brazilian chemical sector. To analyze the measurement models and test the hypotheses, confirmatory factor analysis and multiple linear regression were used. Findings – The limited support for the hypotheses tested suggests that the operationalization of the relational view as an explanatory theory requires further study. Asset specificity seems to be the most solid construct, with a relevant effect on the relational value, and it is present in some moderating effects on environmental variables. The results also suggest that relational governance has some effect on the value captured by the supplier. Originality/value – In addition to the need to review the operationalization of the Relational View, the proposed value measurement model contributed to identifying differences between the value created for the buyer and the value created for the supplier. The measurement scales of value creation presented good quality of fit and also represent a contribution for further research

Ambientes organizacionais: uma proposta de classificação com uso de munificência, dinamismo e complexidade

The relationships between organizations and their respective task environments are an extremely relevant issue for the strategic management field. Given the diversity of both organizations and environments, moving toward a better understanding of such relationships has become a challenge not only to the management practice but also to scholars. In special, the identification of homogeneous environmental groups allows controlling the conditions that subordinate the actions of firms and widens the possibilities of design and generalization of researches in the strategy area. Besides, it permits identifying not apparent similarities among different industries. Along these lines, the research presented here identified industry groups sharing similar environmental conditions. The research begun with the replication of the work of Dess and Beard (1984), identifying the dimensions which characterize task environments – munificence, dynamism and complexity – for 466 manufacturing industries in USA from 1997 to 2002. Following to this, a cluster analysis was performed in order to group industries with similar task environments. Five different clusters were found. Subsequently, 1,870 American firms from Compustat data base were distributed by the groups created, which were statistically compared regarding the structure and performance features of their firms. This procedure indicated that the environmental groups can explain significant differences among the firms regarding mainly growth, profitability and size. Key words: task environment, environmental dimensions, manufacturing industries, strategic management.As relações entre as organizações e os ambientes nos quais essas atuam são um fenômeno desafiador e extremamente relevante para a estratégia. Dada a diversidade de organizações e ambientes existentes, avançar na compreensão dessas relações tem se constituído um desafio tanto para a prática gerencial como para os estudiosos desse campo. Em especial, o reconhecimento de grupos de ambientes homogêneos viabiliza o controle das condições que subordinam as ações das firmas e amplia as possibilidades de desenho e de generalização das pesquisas na área de estratégia. Além disso, permite a identificação de similaridades não aparentes entre os setores. Nesse sentido, este artigo objetiva identificar grupos de setores de atividade industrial com ambientes similares. Esta pesquisa iniciou com a replicação do trabalho de Dess e Beard (1984) na identificação das dimensões caracterizadoras dos ambientes operacionais – munificência, dinamismo e complexidade – para 466 setores de manufatura dos EUA, entre 1997 e 2002. Em seguida, realizou-se uma análise para investigar grupos desses setores com ambientes similares, por meio da qual foram identificados cinco agrupamentos. Como complementação, 1.870 empresas norte-americanas da base Compustat foram distribuídas pelos agrupamentos criados, os quais foram estatisticamente comparados em relação às características de estrutura e desempenho de suas empresas. Encontrou-se que os grupos ambientais permitem explicar diferenças significativas entre as empresas, no que se refere, principalmente, à lucratividade, ao crescimento e ao tamanho, indicando a propriedade dos agrupamentos identificados. Palavras-chave: ambiente organizacional, dimensões ambientais, setores de manufatura, administração estratégica

Ambientes organizacionais: uma proposta de classificação com uso de munificência, dinamismo e complexidade

The relationships between organizations and their respective task environments are an extremely relevant issue for the strategic management field. Given the diversity of both organizations and environments, moving toward a better understanding of such relationships has become a challenge not only to the management practice but also to scholars. In special, the identification of homogeneous environmental groups allows controlling the conditions that subordinate the actions of firms and widens the possibilities of design and generalization of researches in the strategy area. Besides, it permits identifying not apparent similarities among different industries. Along these lines, the research presented here identified industry groups sharing similar environmental conditions. The research begun with the replication of the work of Dess and Beard (1984), identifying the dimensions which characterize task environments – munificence, dynamism and complexity – for 466 manufacturing industries in USA from 1997 to 2002. Following to this, a cluster analysis was performed in order to group industries with similar task environments. Five different clusters were found. Subsequently, 1,870 American firms from Compustat data base were distributed by the groups created, which were statistically compared regarding the structure and performance features of their firms. This procedure indicated that the environmental groups can explain significant differences among the firms regarding mainly growth, profitability and size. Key words: task environment, environmental dimensions, manufacturing industries, strategic management.As relações entre as organizações e os ambientes nos quais essas atuam são um fenômeno desafiador e extremamente relevante para a estratégia. Dada a diversidade de organizações e ambientes existentes, avançar na compreensão dessas relações tem se constituído um desafio tanto para a prática gerencial como para os estudiosos desse campo. Em especial, o reconhecimento de grupos de ambientes homogêneos viabiliza o controle das condições que subordinam as ações das firmas e amplia as possibilidades de desenho e de generalização das pesquisas na área de estratégia. Além disso, permite a identificação de similaridades não aparentes entre os setores. Nesse sentido, este artigo objetiva identificar grupos de setores de atividade industrial com ambientes similares. Esta pesquisa iniciou com a replicação do trabalho de Dess e Beard (1984) na identificação das dimensões caracterizadoras dos ambientes operacionais – munificência, dinamismo e complexidade – para 466 setores de manufatura dos EUA, entre 1997 e 2002. Em seguida, realizou-se uma análise para investigar grupos desses setores com ambientes similares, por meio da qual foram identificados cinco agrupamentos. Como complementação, 1.870 empresas norte-americanas da base Compustat foram distribuídas pelos agrupamentos criados, os quais foram estatisticamente comparados em relação às características de estrutura e desempenho de suas empresas. Encontrou-se que os grupos ambientais permitem explicar diferenças significativas entre as empresas, no que se refere, principalmente, à lucratividade, ao crescimento e ao tamanho, indicando a propriedade dos agrupamentos identificados. Palavras-chave: ambiente organizacional, dimensões ambientais, setores de manufatura, administração estratégica