Jordi Perramon

Sustainability in small tourist businesses: the link between initiatives and performance

This study explores the combined effects of adopting sustainable practices on small tourism companies’ performance. The existing literature provides insufficient data on sustainable behaviour because most studies on environmental practices focus on larger companies in the tourism sector, and a gap exists in social practices. This study is based on a survey of 374 restaurant managers. It uses structural equation modelling to study direct links between three dimensions – quality, environmental practices and social practices – and financial performance and market success factors. Significant differences with earlier studies are found. This study suggests that proactive sustainable practices can benefit small service companies by improving competitiveness even in difficult times. Practical implications are discussed in relation to sustainable practices.

Learning to create value through the ‘balanced scorecard' model: an empirical study

This paper tries to identify the process of creating value by analysing the cause–effect relationships within the perspectives of the balanced scorecard (BSC) model suggested by Kaplan and Norton [(1992). The Balanced Scorecard – measures that drive performance. Harvard Business Review, 70(1), 71–89]. The paper is based on 253 firms from the region of Catalonia (Spain). The main finding of the article is that using a BSC is a good way to understand how the value is created through the investment in human resources. The cause–effect relationships within the perspectives of the BSC model are validated. A formal, systematic and large-scale methodology has been used, giving answer to the claim by the academics for the use of path modelling methodologies to prove the effectiveness of the model. In addition, the internal dimensions of the four perspectives have been validated, too. The conclusions reached in the article may be of interest for both academics and professionals to understand the logical flow of consequences produced by any decision.

Impact of quality and environmental investment on business competitiveness and profitability in small service business: the case of travel agencies

There are few studies in the literature that examine the combined effect of quality and environmental policies on the financial performance of small service businesses. This gap becomes more evident in highly competitive segments with high mortality rates. This is the case of travel agencies in Spain. This study was carried out by analysing 198 surveys answered by managers of travel agencies, which represents the 5% of the sector. The data obtained were treated with structural equations. The results of this analysis do not find a direct relationship between the implementation of quality policies and financial performance. However, the data show a positive and indirect relationship between them, being both the improvement of the competitiveness as the implementation of environmental policies the mediators between quality and finance. In this sense, this study provides evidence that the commitment to sustainability can be a valid strategy to improve the financial performance of the company.

Does intensive social network management lead to positive effects in quality practices

There are many studies that have analysed the effects of quality use on financial improvement. Nevertheless, the bibliography examining the incidence of the combined use of intensive social network strategies and practices of quality management in business is limited. This gap is even more evident when we focus on the service sector and, specifically, on the subsectors in which small, highly competitive, often changing, and high-failure-rate businesses predominate. By analysing 211 surveys administered to travel agency managers in Spain and using structural equation modelling, it is concluded that quality management practices have a direct and significant impact on business performance and on the financial performance of these organisations, in accordance with the existing literature. Nevertheless, significant differences are observed when the sample is segmented by businesses that use social networks intensively and those that do not. This article suggests that betting on strategies of intense social network use enhances the positive results of quality management policies and may lead small service companies to obtain the competitive advantage that means the difference between failure and survival in sectors with high rates of competition that evolve very rapidly.

Manipulation of Earnings Reports in Spain - Some Evidence

Accounting regulation is a highly topical issue for listed companies in Europe. From 1 January 2005 all companies listed in the EU member states are required to produce financial reports compliant with international accounting standards. Financial reports will be comparable with each other only if full compliance with the international standards can be ensured. Historically, however, an enduring weakness of the international standard-setting regime has been its inability to enforce compliance with its standards. There is a danger that implementation and compliance will be variable across the adopting countries, and that deeply ingrained national reporting practices will persist. The purpose of this paper is to examine some distinctive elements of Spanish financial reporting practices. Spanish financial reporting by major companies demonstrates a tendency towards quite overt manipulation of the earnings figures. The research reported in the paper firstly identifies four common earnings manipulation practices, and then proceeds to examine their incidence in the financial statements of the IBEX-35 companies over a three year period.

Quality practices in travel agencies: A mediating factor in non-financial indicators of advanced information systems

Purpose – The purpose of this paper is to examine the motivations for the adoption of quality management practices (QMPs) and the effects exerted by the advanced management information systems (AMIS) as mediating factors in a sector consisting of highly competitive companies with a high mortality rate in recent years: travel agencies. Design/methodology/approach – The results were based on a survey completed by 185 travel agencies with less than 50 employees, covering over 5 per cent of the SME travel agencies in Spain. Structural equation modelling was used to analyse the links between the studied dimensions. Findings – The findings indicate that QMPs have a positive, direct influence on the adoption of AMIS and that the adoption of AMIS has a positive, direct impact on financial performance. The results suggest that quality policies facilitate greater use of financial indicators but not in the use of non-financial indicators, where the key to better business performance lies. Originality/value – Therefo...

Creating value through the balanced scorecard: how does it work?

Purpose The purpose of this paper is to further research on the Kaplan and Norton (1996) balanced scorecard (BSC) model after having discerned that previous work has so far neglected to explore the interrelationships between the model’s dimensions and the influence contextual factors may have. Design/methodology/approach The data set used to meet this paper’s main objectives was collected using a structured online survey sent to the member companies of the Catalan Association of Accounting and Management (ACCID). Specifically, the surveys were directed to the heads of the finance departments. From the 3,500 mails sent, 336 companies decided to participate in the study. These figures represent an acceptable response rate of 9.6 per cent. As 83 of the companies declared that they would only use financial indicators, the final study sample totalled 253 firms. Findings The results demonstrate the mediating effects intermediate constructs have, and highlight how important leadership is in achieving success or high performance. These results follow on from previous empirical literature that analysed other management systems such as the Baldrige, the EFQM or the Deming models. In addition, some differences in the relationships as per the contextual factors studied have been detected. Therefore, the conclusions reached in this paper will be of interest to both academics and professionals in perceiving and understanding the logical flow of consequences any decision taken will produce. Originality/value The authors’ main contributions are: to have strictly followed the theoretical BSC model by combining both formative and reflective dimensions using the emerging partial least squares methodology; to have based the study on 253 firms and to have used 37 category indicators which, to our knowledge, are more than any other previous work; to have developed a mediation model designed to appreciate the interrelationships the dimensions in the BSC model have; to have analysed the possible differences there are in the interrelationships between the dimensions using two widely accepted influencing contextual factors in current literature, namely a firm’s size and its typology.