Carmen Barroso

Applying Maximum Likelihood and PLS on Different Sample Sizes: Studies on SERVQUAL Model and Employee Behavior Model

Structural equation modelling (SEM) has been increasingly utilized in marketing and management areas. This increasing deployment of SEM suggests that a comparison should be made of the different SEM approaches. This would help researchers choose the SEM approach that is most appropriate for their studies. After a brief review of the SEM theoretical background, this study analyzes two models with different sample sizes by applying two different SEM techniques to the same set of data. The two SEM techniques compared are: Covariance-based SEM (CBSEM) – specifically, maximum likelihood (ML) estimation – and Partial Least Squares (PLS). After presenting the study findings, the paper provides insights regarding when researchers should analyze models with CBSEM and when with PLS. Finally, practical suggestions concerning PLS use are presented and we discuss whether researcher considered these.

A framework for board capital

Purpose The purpose of this paper is to examine in greater depth the concept of “board capital”, which the authors consider to be a bundle of three types of capital, and believe to be a clear antecedent of the board’s ability to perform its roles, which have positive consequences for the firm’s performance. Design/methodology/approach Through 83 firms listed on The Madrid Stock Exchange during the period 2005-2010, the authors test empirically the relationships between different dimensions of board capital and firm performance, and specially how internal social capital moderates the relationships between board human capital and external social capital with firm performance. Findings The results show that certain characteristics of human capital (average board tenure) and external social capital (directors’ interlocks) are positively related to the firm performance. The empirical findings also indicate that the internal social capital, measured by board density, is positively related to the firm performance and moderates these above relationships, increasing the potential of the resources contributed by the board members and influencing to a large extent on a firm’s performance. Practical implications The results of the investigation will help both executives and scholar in two ways. First, they will assist firms when they have to select board members, as they can now understand how the resources that board members bring with them can affect the firm performance. To be more effective, boards need to have members that have experience as firm’s directors, external connections to other boards and many internal ties among them. Second, in this context, internal social capital is especially relevant, so the firms should look for possible ways of encouraging internal ties between directors. In this paper, the authors have opted for study the participation of directors in committees. Originality/value The authors propose that these three types of capital (human, external and internal social capital) need to be synergistically combined to create a group of directors with access to a complete set of skills, knowledge and connections, but which can still work as a compact social group when making decisions.

Patterns of strategic change

Purpose – The purpose of this paper is to know how strategic change processes unfold over time and their potential consequences for firms. The study has two main objectives: to identify the actors involved; and to analyze the sequences of changes when a firm experiences strategic change. Design/methodology/approach – To know the temporal sequence of strategic change is per se one of the most important questions of research in management. This is because it allows for a better understanding of how and why organizations change. The qualitative analysis – based on the existing literature on the change processes – aims to capture reality in flight and study long-term processes. Findings – The study identifies strategic change’s essential patterns. It determines when it is appropriate to use these sequences to improve firm performance and it explains that reorganization of the senior management can produce strategic change. The results provide a greater understanding of the strategic change processes carried o...

Integrating Organizational Capabilities to Increase Customer Value: A Triple Interaction Effect

The aim of this paper is to contribute to the strategic management literature by identifying empirically possible combinations of three organizational capabilities and to analyze whether the possible interaction between them leads to the creation of superior customer value. We aim to determine how the interaction between three capabilities (i.e., market orientation, knowledge management and customer relationship management) is and the potential effects of this relationship for increasing customer value. In order to test this question, we model a triple interaction effect following an orthogonalization approach using partial least squares (PLS). We used data from Spanish banking industry. Surprisingly, the triple effect explains more variance of customer value than the alternative operationalizations of the three organizational capabilities linked to customer value creation.

Causes of Changes in Top Management

Empirical research into the causes of change in top management has been biased in favour of certain type of enterprises (big size companies which quote at stock exchange) and in favour of certain type of performance measures (financial profitability), mainly because the easiness of getting data. This study uses a sample of enterprises with very different sizes and utilises as enterprise performance indicator the variation in sales. This work pursues two objectives. On the one hand, it pursues to empirically investigate the essential determinants that provoke a change in top management. On the other hand, it pursues to specify those factors that condition the choice as enterprise top manager successor of an outside to the company individual. The results obtained question some established hypothesis in the literature. Previous researches have assumed that manager’s replacement due to no forced causes (retirement, decease, illness…) are random distributed in the population; nevertheless, the results seem to show that our hypothesis is not conform to ?he reality in certain circumstances.