Management capability and performance in Spanish family firms

Abstract

Purpose The purpose of this paper is to explore the possible causes of the heterogeneous productivity observed in Spanish firms, finding evidence of a link between managerial capability and higher productivity in the context of family firms. Also, innovative human resource policies are much more frequently found in companies where there is a high level of management capability. Design/methodology/approach Productivity differences in Spanish family firms are, for the first time, analysed from a managerial view, and using multiple correspondence analysis (MCA). Findings This paper proposes a way to measure managerial capability. Innovative human resource policies are much more frequently found in companies with high levels of management capability. The authors show that sustained competitive advantage is not just a function of single or isolated components, but rather a combination of human capital elements. Besides, a clear association between high managerial capability and performance in family firms is established. Thus, better management skills enable Spanish family firms to design the necessary strategies and internal structures to facilitate their adjustment to the business environment, and, thereby, achieve operational performance gains. Originality/value This paper proposes a way to measure managerial capability and its association with productivity in Spanish family firms using MCA. The authors also show a clear positive association between high managerial capability and performance in family firms. Thus, better management skills enable Spanish family firms to achieve operational performance gains.

Mindfulness, socioemotional wealth, and environmental strategy of family businesses

“…According to resource‐based capabilities scholars, there is a direct relationship between capabilities and environmentally sustainable strategies (Aragón‐Correa & Sharma, ; De Medeiros, Ribeiro, & Cortimiglia, ; Sharma & Vredenburg, ; Surroca, Tribó, & Waddock, ; Yu & Ramanathan, ). Capabilities are found to be associated with better strategic focus, innovative human resource policies, and performance in Spanish family firms (Garcés‐Galdeano, García‐Olaverri, & Huerta, ). Family involvement within a firm could result in family‐specific capabilities that would lead to better outcomes (Pearson, Carr, & Shaw, ) or sustainable products.…”

Productivity in religious orders: A management by values applied approach

“…When setting the hypotheses we rely on organizational performance, which as generally accepted, can be analysed from three different perspectives: financial, operative and effectivity, the latter of a broader scope ( Short and Palmer, 2003 ; Fry et al., 2016 ; Garcés-Galdeano et al., 2016 ). The Religious Orders - the object of our study - did not facilitate enough information to use financial or operative instruments which could be used as a measurement of organizational performance.…”

Towards Effective Innovation Strategy in Small and Medium Enterprises in African Developing Economies: The Role of Top Management Capability

“…Consequently managerial capability is essential in all firm's operational and growth strategies (Barbero et al, 2011). Management capability is an essential factor in determining firm's success (Garcés-Galdeano et al, 2016). It is an indispensable firm's capability that helps to develop formidable procedure, capabilities and routines that influence the implementation of operational and innovative strategies (Kor and Mesko, 2013).…”

“…Top management capability support the integration of strategies relates to logistics, financial, cost control, forecast revenue and profitability, human resource and marketing activities (DeSarbo, Fong, Llechty, and Coupland, 2005). Effective management capability enables SMEs firms to efficiently design internal structure and operational strategies to facilitate adjustment and response to environmental demands so as to achieve better performance (Garcés-Galdeano et al, 2016). Consequently, it is considered as crucial function for perpetual productivity, profitability and growth, however achieving these objectives is only possible with efficient innovation strategy (Pufal, et al, 2014).…”

“…To achieve this however, requires competent and committed management support. Top management capability supports SMEs firms to proficiently design internal structure and operational strategies to facilitate adjustment and response to environmental demands to enhance competitive position (Garcés-Galdeano, García-Olaverri, and Emilio, 2016). Capable top managers normally possess generic capabilities in organizing, collaborations and team building (Mintzberg, 2009).…”