Isabel Suárez González

A resource-based analysis of the factors determining a firm's R&D activities

Abstract This paper investigates the determinants of the firms decision to carry out R&D activities. Most empirical studies on this topic have focused on the examination of the effects of external or environmental factors. The aim of this study is to evaluate the effect of internal or organisational factors on R&D activities. Its intended contribution is therefore focused on the analysis of the role of firms resources and capabilities in the R&D investment. Three types of resources are distinguished: financial, physical and intangible resources. Specific hypotheses about their effect on the probability of a firm carrying out R&D activities are derived and tested on a sample of 100 Spanish firms. Empirical findings suggest that intangible factors are the main determinants of the probability of a firm carrying out internal R&D.

Dynamics of the strategic group membership-performance linkage in rapidly changing environments

Abstract This study focuses on answering the following question: Do performance differences exist among strategic groups and are these differences stable over time in a population of firms which has undergone continuous and radical environmental transformations? Two alternative theoretical approaches are provided to answer this question, namely, the Industrial Organization Theory (IOT) and the Resource-Based View of the Firm (RBVF). The Spanish private bank population is the empirical setting used to test the hypotheses; this population experienced continuous and dramatic environmental shifts over the period 1983–1997. A new cluster technique is used to longitudinally identify strategic groups—the MCLUST. This study shows that significant performance differences among strategic groups exist in three years—1991, 1992 and 1997—in all performance indicators used in this research, as the IOT states, but such differences do not exist in other years, as the RBVF predicts. These findings support the conclusions of more recent longitudinal and dynamic studies in this field, which show consistent evidence to support both theoretical approaches. Future studies may be necessary to consider both perspectives as complementary in order to explain the performance consequences of strategic group membership over time.

Multi-unit versus single-unit franchising: assessing why franchisors use different ownership strategies

The aim of this article is to examine what factors underlie the choice of organisational form when franchisors add new franchised units to their networks. Franchisors may grant new units to existing franchisees (multi-unit franchising (MUF)) or to new franchisees (single-unit franchising). We find that this choice depends on the existence of contractual problems (namely adverse selection and moral hazard) and several network characteristics influence the magnitude of these problems. In particular, we found a positive relationship between the intensity of the use of MUF and network size, geographical concentration of the units of the network, and industries where customers tend to be non-repetitive.

Service quality control mechanisms in franchise networks

This paper reports the study of some factors that influence the control intensity exerted by franchisors on the service quality provided by the franchised units of their networks and what interdependencies exist between the different mechanisms that can be used to monitor service quality. On the one hand, three control mechanisms of conformance quality are considered, namely audits, mystery shoppers, and mandatory purchase of inputs and products. On the other hand, polls are used to monitor perceived quality by customers. There are two main findings. First, control intensity is greater in those industries in which customers tend to be non-repetitive. Second, four complementary relationships are found between control mechanisms: between audits and mystery shoppers, between audits and polls, between mandatory purchase of inputs or products and mystery shoppers, and between mandatory purchase of inputs or products and polls.