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Categorizing the Spanish Accommodation Sector Does Firm Size Influence Economic Profitability

This work aims at clustering Spanish accommodation firms into representative groups and at determining the firm size indicators that characterize each group. By doing this, we strive to explain the different groups’ profitability by their firm size indicators, and conclude how such firm size indicators are useful to explain firms’ economic sustainability. We apply clustering and logistic regression analyses using year 2008 data from 197 firms to group Spanish accommodation firms in terms of their economic profitability and to determine the firm size indicators that characterize each group. These analyses show three groups of accommodation firms in Spain. Companies in the first group have a positive relationship of profits with operating revenues and assets, but a negative relationship of profits with the number of employees. Companies in the second group have profits positively influenced by the number of employees and negatively affected by assets. Finally, companies in the third group show a negative influence on profits exerted by operating revenues but are positively affected by the number of employees and assets. These findings can serve as a guide to know companies’ categories in the accommodation sector in terms of their economic profitability. This work also provides managers with useful information to improve the economic sustainability of these companies. This information could support strategic decisions about the competitive position of their firms and the volume of competitors with a similar economic profile.

Spanish business investment in China from the perspective of the consulting firm Garrigues

Purpose – This article aims to analyse the reasons for Spanish companies to invest in China and the factors that influence the success or failure of the venture during the implementation process.Design/methodology/approach – This paper is based on an interview held with the two partners of the Garrigues office in Shanghai, Francisco Soler and Manuel Torres. Francisco Soler was responsible for opening and subsequently managing the office from 2005 through to August 2011, when he handed over the reins to Manuel Torres.Findings – The main reason for investing in China is its market. It is worth mentioning here that there has been a paradigm shift whereby China has gone from being the “worlds factory” to the “worlds market”, not just because of its size but also because of the dizzying speed at which it continues to grow. To minimise the risks of investing in China, the interviewees pointed out the crucial importance of the company committing a significant amount of all kinds of resources to the venture. Th...

The quality effect on the profitability of US airline companies

This study was conducted to determine if quality had any effects on US airline economic performance. Therefore, four service quality indexes used in the US air transportation industry were included together with two economic performance indicators, passenger revenues and return on investment (ROI). Longitudinal data from the US airline companies from 2006 to 2015 were used to determine if airline activity or profitability increased when service quality improved. The results of this research demonstrated and confirmed the positive and significant influence of service quality on the ROI of US airline companies. Meanwhile, a non-significant effect was found for quality on airline passenger revenues. As none of the previous research studies have considered the four quality indexes altogether, the findings of this work could encourage airline companies to invest in quality, since this policy can have a positive consequence for their profitability.

Service quality and economic performance in the US airline business

AbstractThe purpose of this paper is to determine the effects of service quality on US airlines’ economic performance.In order to cover this goal, four quality indexes related to the airline industry, and two economic performance indicators, revenues and return on investment (ROI), have been considered. Data from American airline companies from 2006 to 2013 have been used to determine if airlines’ profitability increases when service quality improves.Considering the effects on airlines’ profitability, the results confirm the positive and significant influence of service quality on the ROI of the US airline companies. A non-significant effect was found for airline revenues in relation to quality.No previous research in this area has been done so these findings could encourage airline companies to invest in quality, since this policy can have a positive return on their profitability.

What to avoid when you are implementing a BSC? From success to failure

Approximately 20 years after the creation of the Balanced Scorecard (hereinafter BSC), BSC is the sixth most widely used management tool by organizations (Rigby and Biledau, 2011). The aim of this article is to identify the key factors for the implementation of a BSC in organizations. To do so, the authors analyzed two cases BSC implementation: one a success and the other a failure. The findings were classified by the answers to the following questions: What was implemented? Where was it implemented? Who implemented it? How did they implement it? and Why was it implemented? The four key factors for the successful implementation of the BSC identified in this study, which complement the existing literature on this subject, are: previous experience of the people responsible for the project; linking the BSC to available resources; consistency between the organizational structure and the strategy; and finally, carrying out a pilot test. Purpose: Approximately 20 years after the creation of the Balanced Scorecard (hereinafter BSC), BSC is the sixth most widely used management tool by organizations (Rigby and Biledau, 2011). The aim of this article is to identify the key factors for the implementation of a BSC in organizations. Design/methodology/approach: The methodology used for this research was the case study, specifically the “two case” study method (Yin, 2003). The cases were selected as being extremes: one organization that had successfully implemented a BSC, and a company whose implementation failed. The findings were classified by the answers to the following questions: What was implemented? Where was it implemented? Who implemented it? How did they implement it? and Why was it implemented? Findings: The four key factors for the successful implementation of the BSC identified in this study, which complement the existing literature on this subject, are: previous experience of the people responsible for the project; linking the BSC to available resources; consistency between the organizational structure and the strategy; and finally, carrying out a pilot test. Originality/value: The contribution made by this study consists of identifying additional key factors that may affect the success or failure of implementing BSC in an organization.

Analysis of the profitability of the Spanish business sector with investment presence in China

Purpose – This article aims to compare the average profitability by sector for companies that have invested in China during 2008-2011, with the average profitability for Spanish firms from the same sector. Design/methodology/approach – Analysis done through Analysis System of Iberian Balances (SABI) database. Findings – The results show that companies that invest in China gain economic rewards that are greater than those that do not invest in China, with the most profitable sectors comparatively being the metallurgy and the wholesale trade. Originality/value – We have not found previous analysis in this way.

Relationship between type of airline and wage of pilots in Europe

Abstract The main objective of this work is to establish whether there are differences in airline pilots’ salaries between the different types of airlines in Europe. With regard to airline type, the companies are categorised into traditional airlines (flag carriers and regular/regional/charter flights) and low-cost airlines. We have examined a total of 176 European airlines and analysed different categories of pilots (Captain Top, Captain Base, First Officer Top and First Officer Base). Two statistical tests were applied (the Haberman test and the chi-squared test) to demonstrate whether there is an association and dependence between types of airlines and pilots’ salaries. The results show that there is association and dependence, from which we can deduce that the earnings of pilots are dependent upon the type of airline for which they work.