Andrés Hatum

Adaptation Under Environmental Turmoil: Organizational Flexibility in Family-Owned Firms:

This article examines the process of organizational adaptation and competitiveness of family-owned firms in an emerging economy. The study is set in the Argentinean context of the 1990s when a combination of economic and political changes triggered a large-scale transformation in the competitive context of indigenous firms. Two family firms from the edible oil industry, one highly flexible and the other less so, are studied. Longitudinal data are supplied in an effort to explore the determinants of organizational flexibility in these firms.

The Meaning of Difference: Beyond Cultural and Managerial Homogeneity Stereotypes of Latin America

Drawing from our current original research on cultural trends in Latin America‐based multinational firms, this paper challenges the stereotypical perception of Latin America as a homogeneous region and explores the cultural distances among groups of multinational employees. After collecting surveys from 733 employees across eight multinationals in Argentina, Brazil, Chile, Colombia, and Mexico, we establish that, much like it happens in other lumped‐together regions of the globe, such as “East Asia” and “Africa”, Latin American countries present significant differences in the way firm employees respond to situations where cultural traits are at stake. By researching these countries, we recorded significant variation in aspects such as the treatment and place of women in the workplace, attachment or detachment to formal rules, formal organizational hierarchies, and structured business planning, in addition to varying levels of tolerance to invasion of privacy. Implications of the study include the need to develop methodologies that adequately capture cultural differences within large geographic blocs and business practices that prepare the expatriate, the international manager, and the policy maker for the different realities they are bound to encounter in different countries.

Building Organizational Capabilities to Adapt Under Turmoil

This article uses two case studies of family-owned firms to assess the organizational capabilities necessary for survival under conditions of environmental volatility. Both organizations belong to the edible oil industry and are among Argentinas leading oilseed processors and exporters. The most-adaptable firm undertook transformations involving continuous change, while the less-adaptable firm displayed a more revolutionary attempt at transformation. The outcome of the transformation process in the most-adaptable firm does not conform to patterns portrayed in the literature on adaptation and change, which involve long periods of stability or convergence and short periods of revolutionary change. We find that the life-cycle of family firms, the role of the founder, control systems and the professionalization of the management team, and ownership issues most strongly influence the capabilities of these firms.

Organizational identity as an anchor for adaptation: an emerging market perspective

Purpose – There is little doubt that organizational identity – that which is central, distinctive, and enduring about an organization – mediates in adaptive processes. Exactly how this mediation takes place, and whether it is favorable or unfavorable to adaptation, must still be fully established. The purpose of this paper is to add to the literature on identity and adaptation by exploring the relationship between these two constructs in family firms operating in an emerging economy. Based on measures of strength of identity, the authors examine how identity affects the adaptive processes of issue identification, strategic impulse definition, and implementation, where the authors look at pace of adjustment. Design/methodology/approach – Longitudinal and comparative case studies were conducted of polar types presenting two pairs of organizations in two separate industries. These organizations faced the challenge of founder succession and a radical shift in macroeconomic conditions over a period of three decades. Through these four cases the authors hope to provide clear pattern recognition of strength of identity and adaptation – and of the relationship between these two constructs – in the face of severe internal and external shocks. The approach seems adequate in the larger context of inductive theory development and particularly suitable to the exploration of theoretical constructs, as it allows the researcher to unravel the underlying dynamics of path dependencies and/or evolutionary processes. Findings – It is found that strong-identity organizations are able to foresee relevant changes in their industries, define adequate strategic responses, and implement them in an evolutionary (i.e. smooth) manner. Conversely, loose-identity organizations misread industry trends, incur strategic paralysis, and must eventually enforce revolutionary (i.e. violent) changes in order to ensure survival. Originality/value – The paper addresses a critical issue for the advancement of organizational theory: the relationship between organizational identity and adaptation in emerging economies. In addition, it has important practical implications for managers doing business in turbulent environments. It makes a sound theoretical contribution and has important managerial implications.

Adaptive Response Under Competitive Pressure: Organizational Flexibility in an Emergent Economy

This paper examines the processes of organizational adaptation and competitiveness of firms in an emerging economy (Argentina). The empirical focus of this paper concerns the determinants of organizational flexibility during the period from 1989 to 1999, when a combination of economic and political change triggered a massive change in the competitive context of indigenous firms. Two companies in the pharmaceutical industry were selected, one that was flexible (Sidus) and one that was less flexible (DER.S.A.). Longitudinal data are supplied to explore the determinants of organizational flexibility in those organizations.

Going global: the process of internationalisation of Latino multinational firms

Business has entered a new reality, one that is more complex and dynamic, in which timely adaptation is critical for a firms survival. Intense pressures brought into the Latin American markets by foreign investments made indigenous firms start to internationalise their activities as a way of balancing out the sheer competition in the market. This study focuses on the impact of the process of internationalisation of the Multilatinas. During a period of three months, in-depth structured interviews were carried out to business and human resources executives of Latin American companies that encouraged the challenging path towards internationalisation.

Talent Management Step 3: A Long-Term Retention Model

This chapter discusses employee retention. Retention, defined by Frank et al. (2004, p. 13) as ‘the effort by an employer to keep desirable workers in order to meet business objectives’, is an inclusive concept that includes both tangible and intangible factors. Many of these factors can negatively affect retention, for instance, weak engagement, low levels of motivation, a high degree of distrust, a lack of communication or transparency, or poorly managed compensation and reward practices, to mention a few. Obviously, the more time and money a company puts into developing talent, the more important it becomes to retain the talent so as to observe a return on this investment. Retention is also important, however, to avoid the hidden costs of turnover, such as loss of knowledge and experience.

Connecting The Dots: Attraction, Development, And Retention

The last three chapters have separately analyzed the three main dimensions of talent management: attraction, development, and retention. By looking at these dimensions separately, it is possible to discuss the nuances and complexity of each. However, it would be a mistake to end the analysis without explaining how the different elements of talent management are connected.

Talent Management Step 1: Attracting The Right Talent

In searching for talent, identifying a skilled candidate is not enough. Rather, the company also has to consider factors such as what type of talent is needed for a position or which organizational capabilities it would like the position to enhance.

Talent Management Step 2: Broadening The Scope of Development

As a result of the organization’s recruiting and selection efforts, the company now has new people on board, in addition to employees who have been with the company for a long time. A sound talent management strategy must include processes for blending all these people together to form a harmonious workforce. In addition, the organization needs to have a development strategy, so that talent is ready to meet the company’s changing needs. This chapter explores the development of a firm’s talent management strategy.