Strategic and Organizational Evolution of Spanish Firms: Towards a Holding Network Form?
| Author | Maria J. Sanchez,Jose I. Galan,José Ángel Zúñiga‐Vicente |
| DOI | http://doi.org/10.1111/j.1467-8551.2005.00465.x |
| Date | 01 December 2005 |
| Published date | 01 December 2005 |
Strategic and Organizational Evolution of
Spanish Firms: Towards a Holding
Network Form?
Jose I. Galan,
*
Maria J. Sanchez and Jose
´A
´ngel Zu´ n
˜iga-Vicente
Departamento de Administracion y Economı
´a de la Empresa, Facultad de Economı
´a y Empresa, Universidad
de Salamanca, Campus Miguel de Unamuno, 37007 Salamanca, Spain and *Departamento de Economı
´ade
Jurı
´dicas y Sociales, Universidad Rey Juan Carlos, Campus de Vı
´calvaro, Paseo de Antilleros s/n, 28032
Madrid, Spain
Email: jigalan@usal.es [Galan]; mjsanchez@usal.es [Sanchez]; joseangel.zuniga@urjc.es [Zu´ n
˜iga-Vicente]
The main objective of this study is to analyse the strategic and organizational evolution
of large firms in a current time period and within a specific geographical context
(Spain). In order to achieve this purpose, the paper combines the Chandlerian
programme with processual analysis. We draw on documentary sources (annual reports,
company histories, business directories and so on) and interviews. We have found that in
the model of corporate development some characteristics of new organizational
structures will coexist with some features of old ones. In line with previous studies our
findings highlight the existence of the ‘multidivisional network’ but, most importantly,
our findings also reflect the emergence of a new kind of organizational form that we call
‘holding network’. The ‘holding network’ is more decentralized, both strategically and
operationally, than the multidivisional form. However, its level of decentralization is
less than in the N-form. Furthermore, whereas the multidivisional form is a hierarchy,
the ‘holding network’ emphasizes the communication among people of different levels.
This multilevel communication differs from that in the N-form. Apart from the
horizontal communication in the same level there is vertical and horizontal
communication between different levels. We conclude by emphasizing the need to
explore in future empirical studies to what extent these patterns and new organizational
forms should be considered as a transitory or consolidated phenomenon.
Introduction
The globalization and technological change
process undergone by the economies of most
countries over recent years has led many organi-
zations to change their corporate strategies and
structures (Kay, 2002; Markides, 1995; Whitting-
ton and Mayer, 2000). As is widely known, the
study of this relationship has its genesis in the
seminal work by Chandler (1962). The main
assumption of this author’s empirical research is
that the diversified, divisionalized corporation is
the natural end-point of some universal march of
progress for large companies in industrialized
countries. But because today’s circumstances are
much more volatile than the conditions extant
when Chandler and his followers were writing
from the 1960s until the mid-1980s, there is a
need to extend and shed some light on these
issues. It can be seen that new organizational
forms have emerged and that these new organiza-
tional forms coexist with old ones.
Nowadays, Kogut (1992, p. 286) points out
that the Chandlerian thesis is essentially ‘without
geography’, whereas Teece (1993, p. 216) asserts
that it is ‘timeless’. In this sense, recent work
carried out in order to achieve a current
comprehension of this relationship has repeatedly
British Journal of Management, Vol. 16, 279–292 (2005)
DOI: 10.1111/j.1467-8551.2005.00465.x
r2005 British Academy of Management
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