Emerald | Management Research: The Journal of the Iberoamerican Academy of Management | Table of Contents

Assessing Relationship Quality and its Key Constructs from a Rival Models Approach

literatinetwork@emeraldinsight.com (Armando Luis Vieira) — Fri, 09 Aug 2013 00:00:00 +0100

Abstract

Purpose - Relationship quality (RQ) is nowadays seen as a main source of competitive advantage. This study aims at enhancing our understanding of RQ by testing and comparing three alternative business-to-business (B2B) RQ models from an interpersonal perspective.Design/methodology/approach - A mail survey was employed and 1,126 firm representatives provided their perceptions of their relationships with their counterparts in hotels, yielding a 48.4 percent response rate. Data was analysed through structural equations modelling with LISREL.Findings - Findings clarified the way RQ key constructs connect, as well as the relative importance of their dimensions. Trust was the dominant dimension of RQ, which contributed to strengthen the pivotal role of trust as a RQ key construct. Problem solving behaviour and selling orientation were the most important dimensions of customer orientation.Research limitations/implications - Due to possible limitations inherent to the chosen research approach, longitudinal studies in different research settings that may improve the generalisability of the results are suggested for future investigations.Practical implications - Results emphasised customer orientation as an additional, crucial building block of RQ, drawing the attention to the pivotal role of (designated) relationship managers, the ‘part-time’ marketers who act as the ‘face’ of the organization, in maximising B2B RQ.Originality/value - New and relevant insights are provided regarding the relative importance of the dimensions of each RQ key construct, which will help relationship managers to evolve from a selling to a counselling approach, thereby promoting commitment, trust, and mutuality of goals, towards the improvement of the quality of the relationships between business partners.

Organizational decline: A yet largely neglected topic in organizational studies.

Fri, 09 Aug 2013 00:00:00 +0100

Abstract

Purpose - Organizational decline was cited in 1980's as an understudied field in organizational studies. The problem is that it is still understudied. In this article we performed a co-citation bibliometric study in six leading journals in order to understand the theoretical foundations that supports the small but existing works related to organizational decline in order to identify gaps and incentive new research.Design/methodology/approach - We made a bibliometric study where we found 74 articles related to organizational decline examining the articles avalilable in six leading journals. It is a co-citation research, i. e, we used the references of the articles and with the most cited we use SPSS ploting the groups of articles in order to identify the possible related groups.Findings - We found that there are six groups of articles (or theories) that supported the organizational decline works. One main group of evolutionaty theory, mainly represented by organizational ecology. A second main group of specific related organizational decline works as decline and turnaround subject related. We also find a group related to adaption to the environment, threat-rigidity, and learning/decision making influencing the articles. We proposed a framework to grafically show it and identify a gap of works after 1990's. We also propose the increase of the use of case studies to understand casual relations and the possibility of use of RBC theoretival approaches.Research limitations/implications - The main limitation is the method as we have to cut the articles used for analysis and also used a selected number of journals despite their importance. Practical implications - The implications for the researchers is to show the importance and possibilities of studying organizational decline, as well to show the theories and works that are supporting the existing knowledge in organizational decline. Originality/value - Organizational decline is understudied and is a big problem in all countries and economies. It will worst with tha actual crisis. Also, we do not find any other work that tried to show the theoretical basis for this important theme.

SHAREHOLDER WEALTH EFFECTS OF BANK MERGERS AND ACQUISTIONS IN LATIN AMERICA

literatinetwork@emeraldinsight.com (Sascha Kolaric, Dirk Schiereck) — Fri, 09 Aug 2013 00:00:00 +0100

Abstract

Purpose - The present study analyzes the short- and long-term wealth effects of 94 domestic and cross-border acquisitions announced of Latin American banks between 1995 and 2011. Our find-ings provide evidence of significant positive stock market reactions for both, bidders and targets. Controlling for several firm and deal characteristics we detect a positive frequent acquirer effect and negative consequences for highly profitable bidders acquiring worse performing targets. Our results may indicate that in contrast to prior empirical findings in less dynamic banking markets Latin America is still a region of attractive consolidation conditions.Design/methodology/approach - We examined the short- and long-term stock market performance of bank mergers and ac-quisitions in Latin America. An event study using the market model to calculate abnormal returns is applied to analyze the short-term stock market reaction upon an M&A announce-ment. Furthermore, to examine the long-run performance of acquiring banks a buy-and-hold abnormal return analysis is employed.Findings - The short-term results indicate that bank mergers and acquisitions in Latin America were overall successful. Bidding banks were able to achieve significant and positives CAR on the official announcement day. The long-run results of the BHAR analysis generally support the results of the event study: Banks that engage in acquisition in Latin America show on average positive BHAR over the two and three year post-announcement period. Generally, bank mer-gers and acquisitions in Latin America have been highly successful events from the viewpoint of the shareholders of acquiring and target institution and therefore seem to be an appropriate tool for shareholder wealth creation. Against this backdrop, the consolidation process among Latin American banks has to be judged as successful so far. Finally, a cross-sectional regression analysis identified the key success factors for banks engaging in M&A transactions in Latin America. Bidding banks that are frequently involved in mergers and acquisitions receive higher returns than their peers, probably due to their prior experience in integrating new subsidiaries. In contrast, a high ROE and an increase in the ac-quirer’s home country stock market index have a negative impact on the CAR of bidding banks. We interpret this finding as an indicator that capital markets doubt that acquirers can keep their ROE levels when purchasing less efficient targets. Additionally, capital market participants show skepticism for acquisitions during an economic upturn where bidding banks might pay excessively high premiums for targets.Originality/value - Only very little research exists that exclusively focuses on the success of bank M&A in Latin America. To the best of our knowledge we are the first who offer an integrated analysis of short-term and long-term capital market oriented M&A success.

The usefulness of financial reporting for the internal decision-making in the Portuguese municipalities

Fri, 09 Aug 2013 00:00:00 +0100

Abstract

Purpose - The article analyses the perception of the internal users regarding the usefulness of the municipal financial reporting in the context of decision-making in the Portuguese Local Administration.Design/methodology/approach - This research is quantitative and positive, based on a cross-section analysis through the online application of a questionnaire to the decision-makers (politicians and technicians) of the 308 Portuguese Municipalities. The approach is based on the paradigm of information usefulness.Findings - The results indicate a high usefulness for the decision-making of the municipal financial reporting, in its current form and content. However, this usefulness would increase if information, other than what is mandatory, were introduced. In general, the two different groups of decision-makers, politicians and technicians, behave somewhat differently, regarding the usefulness that the financial reporting holds for them. The technical decision-makers consider it of greater value. There is no statistical evidence that shows that there is a link between the training area and professional experience of the internal decision-makers and the usefulness of the municipal financial reporting. Both types of users show a preference for the information set within the budgetary accounts, although accrual-based information also proves to be of excellent value.Research limitations/implications - The main limitations of this study are related to the way information was collected (questionnaire) to obtain empirical evidence. The questionnaire, sent by email, despite reaching a wide-range and dispersed population, does not assess the truthfulness and integrity of the responses. Furthermore, it does not make it possible to really identify the usefulness of the municipal financial reporting. The use of perceptive measures can also represent a threat to the study’s internal validity. Practical implications - The results of this study have important repercussions on the internal decision-makers concerning the usefulness of the municipal financial reporting. Particularly, since the general approach towards the usefulness of the reporting could become a solid work basis for the regulatory bodies to enhance the current reporting model in the light of its suitability within the internal decision-making.Originality/value - Research on this study is original as it provides, as far as we are aware, the first empirical evidence of the perceptions of internal users on the usefulness of the municipal financial reporting in Portugal, in regard to decision-making.

Frank Hoy: From Small Business to Family Enterprises and many entrepreneurial ventures in between

literatinetwork@emeraldinsight.com (Santiago Ibarreche) — Fri, 09 Aug 2013 00:00:00 +0100

Abstract

Purpose - Purpose – This paper is a conversation with Frank Hoy, conducted by Santiago Ibarreche, about his career as an internationally known scholar in the field of Entrepreneurship and Family Business.Design/methodology/approach - Interview.Findings - The interview explores Hoy’s career, his achievements and continued search for excellence in terms of research, intertwined with his entrepreneurial ventures.Originality/value - The interview in this special section, A Life in Research, brings out an individual scholar’s experience and history, not only as recognition of scholarly impact, but also as recognition of the person.