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Prelims

Martha Ríos Manríquez (University of Guanajuato, Mexico)

Empowerment, Transparency, Technological Readiness and their Influence on Financial Performance, from a Latin American Perspective

ISBN: 978-1-80117-383-4, eISBN: 978-1-80117-382-7

Publication date: 23 August 2021

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Citation

Manríquez, M.R. (2021), "Prelims", Empowerment, Transparency, Technological Readiness and their Influence on Financial Performance, from a Latin American Perspective, Emerald Publishing Limited, Leeds, pp. i-xxii. https://doi.org/10.1108/978-1-80117-382-720211009

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Emerald Publishing Limited

Copyright © 2021 Martha Ríos Manríquez. Published under exclusive licence by Emerald Publishing Limited

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Empowerment, Transparency, Technological Readiness and Their Influence on Financial Performance, from a Latin American Perspective

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Empowerment, Transparency, Technological Readiness and Their Influence on Financial Performance, from a Latin American Perspective: A Sector Study

by

Martha Ríos Manríquez

University of Guanajuato, Mexico

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2021

Copyright © 2021 Martha Ríos Manríquez

Published under exclusive licence by Emerald Publishing Limited

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No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters' suitability and application and disclaims any warranties, express or implied, to their use.

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A catalogue record for this book is available from the British Library

ISBN: 978-1-80117-383-4 (Print)

ISBN: 978-1-80117-382-7 (Online)

ISBN: 978-1-80117-384-1 (Epub)

List of Figures

Figure 1.1. The Process of Rigor and Scientific Quality in the Research.
Figure 1.2. General Information About the Company.
Figure 1.3. Data Related to the Person Surveyed.
Figure 1.4. Sequence Diagram of the Relationships Between the Variables of Empowerment, Transparency, and e-Readiness in Financial Performance.
Figure 3.1. Process to Implement the Empowerment in the Organization.
Figure 3.2. Internal and External Aspects of the Collaborator That Influence in the Organization.
Figure 4.1. Scale with Prevention Factors, Communication Channels, and Alliances That Explains Transparency in Companies.
Figure 5.1. Information and Communication Technology (ICT) Impacts on the Level of E-Readiness.
Figure 5.2. Model of Technological Preparation Based on the Information and Communication Technology (ICT) Adoption.
Figure 6.1. Model Construction.
Figure 6.2. Model 1: Confirmatory Factor Analysis With Standardized Coefficients.
Figure 6.3. FIPEGTOen 5th Model (Specified): Structure of First Order Factors.
Figure 6.4. Model FIPEGTOen 6th: The Structure of Second Order Factors.
Figure 6.5. FIPEGTOen Model 7th: The Structure of Second Order Factors of the Financial Performance Scale in Guanajuato Companies.

List of Graphs

Graph 1.1. Distribution of the Sample by Size.
Graph 1.2. Distribution of the Sample by Company's Line of Business.
Graph 1.3. Distribution of the Sample by Municipality.
Graph 1.4. Sample Distribution by Economic Activity.
Graph 1.5. Distribution of the Sample by Type of Property.
Graph 2.1. Annual Sales Range of Micro, Small, and Medium-Sized Enterprises (MSMEs).
Graph 2.2. Financial Indicators.
Graph 3.1. Empowerment Granted to Human Capital in the Msmes of Guanajuato, Mexico.
Graph 3.2. Empowerment Granted to Human Capital in MSMEs by Size of Businesses in Guanajuato, Mexico.
Graph 3.3. Empowerment Granted to Human Capital in MSMEs by Sector of Business Activity of Guanajuato, Mexico.
Graph 3.4. Empowerment Granted to Human Capital in MSMEs by Type of Company of the Companies of Guanajuato, Mexico.
Graph 4.1. Prevention Indicators.
Graph 4.2. Communication Channels Indicators.
Graph 4.3. Alliances Indicators.
Graph 5.1. Degree of Technological Preparation of Companies from Guanajuato, Mexico.
Graph 5.2. Degree of Technological Preparation in MSMEs, by Size, in Guanajuato, Mexico.
Graph 5.3. Degree of Technological Preparation, by Economic Activity, in MSMEs of Guanajuato, Mexico.
Graph 5.4. Degree of Technological Preparation, by Type of Property, in MSMEs of Guanajuato, Mexico.

List of Tables

Table 1.1. Research Instrument.
Table 1.2. Criteria and Tests in the Factorial Analysis.
Table 1.3. Criteria and Evidence in the Factorial Analysis of the Transparency Scale.
Table 1.4. Criteria and Analysis Properties.
Table 1.5. Operationalization of the Variables and Dimensions of the Research.
Table 1.6. Distribution of the Sample by Economic Activity, Size, and Municipality.
Table 1.7. Distribution of the Sample by Activity Sector, Position of the Respondent, and Schooling.
Table 1.8. Distribution of the Sample by Sector of Activity and Type of Property.
Table 2.1. Variables, Dimensions, Codes, Description of Indicators, and References.
Table 2.2. Financial Indicators by Company Size.
Table 2.3. Nonfinancial Indicators by Company Size.
Table 2.4. Financial Indicators by Economic Activity of Micro, Small, and Medium-Size Enterprises (MSMEs).
Table 2.5. Nonfinancial Indicators by Sector of Economic Activity of Micro, Small, and Medium-Sized Enterprises (MSMEs).
Table 2.6. Financial Indicators by Type of Company.
Table 2.7. Nonfinancial Indicators by Type of Company.
Table 2.8. Association between Financial and Nonfinancial Indicators.
Table 2.9. Association between Financial Performance and the Variables of Empowerment, Transparency, and e-Readiness.
Table 2.10. Association of Financial Performance with Empowerment, Transparency, and e-Readiness.
Table 2.11. Association between Nonfinancial Performance and the Variables of Empowerment, Transparency, and E-Readiness.
Table 2.12. Association between Nonfinancial Performance with Empowerment, Transparency, and E-Readiness.
Table 3.1. Empowerment Methodologies.
Table 3.2. Operationalization of the Empowerment Indicators.
Table 3.3. Cronbach's Alpha of the Original Scale of the Empowerment.
Table 3.4. Criteria and Tests in the Factorial Analysis.
Table 3.5. KMO and Barlett Test for the Spreitzer Model of Empowerment.
Table 3.6. Configuration Matrix of Spreitzer Model of Empowerment.
Table 3.7. KMO and Barlett's Test of the Empowerment Spreitzer Model.
Table 3.8. Configuration Matrix of the Empowerment Model of Mattews, Diaz, and Cole.
Table 3.9. Cronbach's Alpha from the Final Empowerment Scale.
Table 3.10. Tests Applied for OLS Linear Regression Models.
Table 3.11. Dimensions and Indicators of Empowerment.
Table 3.12. Empowerment Indicators and the Size of the Company.
Table 3.13. Empowerment Indicators and Sales by Range of Annual Sales of the MSMEs.
Table 3.14. Empowerment Indicators and Economic Activity of MSMEs.
Table 3.15. Empowerment Indicators and Type of Property.
Table 3.16. Association between Empowerment Indicators.
Table 3.17. EMPHCEGTOen General Model.
Table 3.18. Multicollinearity Indicators of the General EMPHCEGTOen Model.
Table 3.19. EMPHCEGTOen Models 2, 3, and 4 for Micro, Small, and Medium Companies.
Table 3.20. Multicollinearity Indicators of the Model by Size.
Table 3.21. 5th, 6th, and 7th Models to MSMEs of Sole-Owner, Mercantile Companies, and Family Businesses.
Table 3.22. Multicollinearity Indicators of the EMPHCEGTOen Model by Type of Property.
Table 3.23. 8th, 9th, and 10th Model for Industry, Commerce, and Service Sectors.
Table 3.24. Multicollinearity Indicators of the Model EMPHCEGTO by Activity Sector.
Table 4.1. Transparency Indicators.
Table 4.2. Criteria and Evidence in the Factorial Analysis.
Table 4.3 KMO and Barlett Test for Transparency.
Table 4.4. Configuration Matrix of the Transparency Variable.
Table 4.5. Cronbach's Alpha of the Final Scale of Transparency.
Table 4.6. Tests Applied for OLS Linear Regression Models.
Table 4.7. Transparency Dimensions by Company Size.
Table 4.8. Transparency Dimensions by Sector of Economic Activity.
Table 4.9. Transparency Dimensions by Property Type.
Table 4.10. Association between the Dimensions of Transparency.
Table 4.11. TRANSGTOen General Model.
Table 4.12. Multicollinearity Indicators of the General TRANSGTOen Model.
Table 4.13. TRANSGTOen 2nd, 3rd, and 4th Model for Micro, Small, and Medium-Sized Companies.
Table 4.14. Multicollinearity Indicators of the Model by Size.
Table 4.15. Models 5th, 6th, and 7th for Sole-owner Companies, Mercantile Companies, and Family Businesses.
Table 4.16. Multicollinearity Indicators of the TRANSGTOen Model by Type of Company.
Table 4.17. Models 8th, 9th, and 10th for Industry, Commerce, or Service Companies.
Table 4.18. Multicollinearity Indicators of the TRANSGTOen Model by Sector of Activity.
Table 5.1. Models to Evaluate E-Readiness.
Table 5.2. Classification of Connectivity.
Table 5.3. Variable, Dimension, and Indicators That Conform the Degree of Technological Preparation (E-Readiness).
Table 5.4. Criteria and Tests in the Factorial Analysis.
Table 5.5. Kaiser-Meyer-Olkin (KMO) and Bartlett's Test of the Original Scale of E-Readiness.
Table 5.6. Rotated Component Matrix.
Table 5.7. Cronbach's Alpha of the Final Scale of the Degree of Technological Preparation in Companies of Guanajuato.
Table 5.8. Tests Applied for Ordinary Least Squares (OLS) Linear Regression Models.
Table 5.9. Approximate Number of Computers in the Company and % of Human Capital That Use Computer to Carry out Their Activities.
Table 5.10. Approximate Number of Computers in the Company and % of Human Capital That Use a Computer to Carry out Their Activities, Considering Company's Size.
Table 5.11. Percentage of Computers with Internet Access by Size, Type of Property, and Economic Activity.
Table 5.12. Percentage of Computers in the Network of a Company According to Its Size, Type of Property, and Economic Activity.
Table 5.13. Type of Network That Guanajuato Companies Have According to Their Size, Type of Property, and Economic Activity Sector.
Table 5.14. Type of Network That Guanajuato Company Have by Size, Type of Property, and Economic Activity Sector.
Table 5.15. Indicators of E-Readiness Level and Sales by Range of Annual Sales of Micro, Small, and Medium-sized Enterprises (MSMEs).
Table 5.16. Indicators of Information and Communication Technology (ICT) Adoption by Company's Size.
Table 5.17. Indicators of Information and Communication Technology (ICT) Adoption by Economic Activity Sector of the Micro, Small, and Medium-sized Enterprises (MSMEs).
Table 5.18. Indicators of Information and Communication Technology (ICT) Adoption by Type of Property.
Table 5.19. Association between E-Readiness Level (ERL) Indicators.
Table 5.20. ERLGTOen General Model.
Table 5.21. Multicollinearity Indicators of the General Model ERLGTOen.
Table 5.22. 2nd, 3rd, and 4th ERLGTOen Model for Micro, Small, and Medium Companies.
Table 5.23. Multicollinearity Indicators of the Model by Company's Size.
Table 5.24. 5th, 6th and 7th Models for Sole-owner Companies, Mercantile Companies, and Family Businesses.
Table 5.25. Multicolinearity Indicators of the ERLGTOen Model by Type of Company.
Table 5.26. 8th, 9th, and 10th Models for Mercantile Companies with a Sole Owner, Mercantile Companies, and Family Businesses.
Table 5.27. Multicolinearity Indicators of the ERLGTOen Model by Sector of Activity.
Table 6.1. Operationalization of Financial Performance Indicators.
Table 6.2. Criteria and Evidence in Factorial Analysis.
Table 6.3. Kaiser–Meyer–Olkin (KMO) and Bartlett's Test of Financial Performance.
Table 6.4. Configuration Matrix.
Table 6.5. Indicators for the Financial Performance (FIPE) Model.
Table 6.6. Association Between the Indicators.
Table 6.7. Tests Applied for Ordinary Least Squares (OLS) Linear Regression Models.
Table 6.8. FIPEGTOen General Model.
Table 6.9. Multicollinearity Indicators of Financial Performance (FIPEGTOen) General Model.
Table 6.10. 2nd, 3rd, and 4th Models for FIPEGTOen in Micro, Small, and Medium-Sized Companies.
Table 6.11. Multicollinearity Indicators of the FIPEGTOen Model by Size.
Table 6.12. 5th, 6th, and 7th Models for Sole-Owner Companies, Mercantile companies, and Family Business.
Table 6.13. Multicollinearity Indicators of the FIPEGTOen Model by Type of Company.
Table 6.14. 8th, 9th, and 10th Models by Activity Sector.
Table 6.15. Multicollinearity Indicators of the FIPEGTOen Model by Sector of Activity.
Table 6.16. Criteria and Analysis Properties.
Table 6.17. Initial Model Adjustment Indices.
Table 6.18. Standardized Estimates of the Structural Equations Model of FIPEGTOen First Model.
Table 6.19. Standardized Estimates of the FIPEGTOen 3rd Model of Structural Equations.
Table 6.20. Standard Regression Weights of the FIPEGTOen 3rd Model in Structural Equation Model.
Table 6.21. Nonspecified Initial Model Adjustment Indices.
Table 6.22. FIPEGTOen 5th Model, Confirmatory Model Adjustment Indices.
Table 6.23. Evaluation of Models 6th and 7th of 2nd Order: Specified Model Adjustment Indices.
Table 6.24. FIPEGTOen Model 7th: Factorial Analysis, Internal Consistency, Convergent Validity, and Discriminating Validity.

About the Author

Martha Ríos Manríquez is a Research Professor at the Celaya-Salvatierra Campus, University of Guanajuato. She has completed her PhD in Accounting and Auditing from the Complutense University of Madrid (Spain). She is a member of the National System of Researchers (level II), and holds the Desirable Profile of the Program for Teacher Professional Development (PRODEP), member of academic body in consolidation “Migration, vulnerable groups and development policies,” and Member of the Spanish research group ICGEEP (Accounting information for the management of public and private entities). Recognized by PRODEP and has been certified by the National Association of Faculties of Commerce and Administration (ANFECA). She has several articles in international refereed and indexed journals, has participated in numerous research conferences, and is the author and coauthor of books and book chapters, both national and foreign. Her lines of research are social responsibility in organizations, Information and Communication Technologies, and new trends in business management. Her professional experience is related to accounting in general and cost management in particular. She was the Former President of the Research Network in Administration of Technological, Economic and Sustainable Innovation (RAITES), editor of the RAITES Magazine and University Act, and President of the international RENUTEG NETWORK (Network of New Management Trends NETWORKS). Email: ; .

Foreword

The world is facing great changes with effects in all areas that have changed the way people work, coexist, and manage their companies. In a climate of global economic crisis, governments recognize the importance of companies as part of sustaining their economy, so they implement support programs for micro-, small-, and medium-sized companies. However, this situation is not the same in all latitudes of the planet, since developed countries have the resources for such support and even protection, unlike developing countries.

In Latin American countries, despite their great economic potential, the economic crisis has severely affected their companies, coupled with the scarcity of resources and support programs that their governments cannot grant them, since these are limited by the priority they must give to the essential needs of the population. This situation forces companies to look for solutions to their problems, which is more difficult for micro, small, and medium-sized enterprises to cope with.

In this way, MSMEs face the economic crisis with impacts such as not being able to make their payments, lack of liquidity, inability to obtain transformation materials, finished products, or services to achieve their growth or sustainability objectives, and various problems that even lead to a state of bankruptcy, leaving collaborators unemployed. For this reason, owners, managers, or directors should deepen the analysis of their financial performance, since their subsistence depends on their profitability, being necessary to look for indicators to measure their performance through financial and nonfinancial variables.

These scenarios lead companies to seek models that allow them to redefine themselves, from the basic objective of financial performance, considering factors that may affect them positively or negatively. Where the management of companies varies depending on different characteristics of the organization and the environment in which it is located. One of these characteristics is the cultural context in which they operate. Unfortunately, Latin America has little literature on their peculiarities. This book analyzes the parameters necessary for success in the context of Mexico as a Latin American benchmark and constitutes information of great interest to companies and public administrations in Latin America, but also to people from the rest of the world who plan to work with companies in Mexico and Latin America.

In the financial performance of the company, the collaboration of human capital is essential to achieve the objectives of success, differentiation, and business competitive advantage, a situation that motivates companies to observe cognitive aspects of human capital through empowerment, providing tools that support them to carry out their activities such as ICT, digital business, as well as commitment and transparency establishment in their daily work, as a value of business conduct.

This work contributes to the rhetoric of financial performance, as it goes beyond the classic approaches that financial performance offered in the literature, providing a practical vision involving current and relevant approaches by combining empowerment, transparency, and e-readiness with impact on financial performance in companies. Also, it has added other elements that make this research an in-depth study, rarely seen in the literature, analyzing financial performance by size: micro-, small-, and medium-sized companies; by economic activity: industry, commerce, and service; by type of companies: single-owner companies, public limited companies, and family companies in Mexico.

This book is presented from the perspective of business owners or managers in Guanajuato, Mexico. Having three strategies that impact their financial performance: empowerment, transparency, and e-readiness. From the analysis of data from real companies, it generates useful scales and models for researchers and company managers. Where the author skillfully makes this specialized publication an interesting, current work, easy to read and understand. This book is an excellent contribution to the academia, as a reference for students and companies both in Mexico and Latin America. It will be helpful for students and companies in the rest of the world who plan to work with companies in Mexico as well.

Finally, it is of great satisfaction to present the book Empowerment, Transparency, Technological Preparation and Their Influence on Financial Performance from a Latin American Perspective: A Sectoral Study, where the reader will find an original and innovative contribution to the literature and specifically to the business world, which will serve as a reflection on the management of their companies as it addresses unusual strategies that the author skillfully relates to financial performance. It is breaking paradigms by delving into approaches that can support the financial performance of companies with a holistic vision when dealing with issues such as empowerment of human capital, transparency, and e-readiness, allowing an approach to the context of these issues in the special field of the MSMEs, considering that the author transfers knowledge to companies, researchers, students, and the community in general to whom the book is directed with a comprehensive vision.

María Dolores Sánchez Fernández

Professor of Business organization area

Business department

Faculty of economics and business

University of A Coruña – UDC, Coruña, Spain

Editor in Chief, the International Journal of Professional Business Review

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