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The purpose of this paper is to validate empirically a measurement scale of the effectiveness of R & D activities, starting from previous work in which the content was validated.

Following psychometric standards the authors have addressed the analysis phases of construct dimensionality, reliability and validity (convergent, discriminant and nomologic), and the scale criteria are shown to be valid in their three temporal manifestations (retrospective, concurrent and predictive). The empirical evidence was drawn from a sample of 85 companies belonging to the Spanish pharmaceutical sector.

Globally the authors provide evidence of reliability, validity of construct and validity of criterion in their diverse manifestations, for the scale designed and validated, on effectiveness in R & D. The authors divide the results into two groups: one for content of the scale and the other for relationships of the scale with other variables. With respect to the first, it is notable that, although in general the variables analyzed coincide with the previous broad and multidisciplinary theory on the success factors of R & D activities, what the authors provide is empirical evidence of the most important factors and variables for effectiveness in R & D; the authors emphasize that the results of the sample analyzed indicate that the most important factor is the close integration of the R & D activities with the corporate strategy, followed by the proper planning of these activities, and the achievement of financial results for the company. With respect to the relationship of the scale with other variables, the authors have found positive and significant relationships between the effectiveness in R & D and the following financial variables: net turnover and earnings after taxes. The authors have also found positive and significant relationships between different characteristics of the company and the achievement of success in R & D activities. Thus, being a company of larger size, the existence of an R & D department, the existence of specific incentive systems for the R & D personnel, the adoption of new management techniques in the R & D department, and the patents policy of the company are all factors that have a positive influence.

There are three main limitations of the study: the size of the sample; the decision to use a very particular highly innovatory sector, the pharmaceutical industry; and conducting the study in only one specific country, Spain. The results should be interpreted taking into account these limitations. Another limitation is the absence of previously validated scales. This meant that the authors were unable to do any comparative analyses.

The authors have contributed by summarizing and testing the existing theories on the factors of success in R & D. This should give R & D managers a more comprehensive and useful picture of the variables that have been considered more important, and should enable them to choose from among the range of variables proposed those that may be considered most relevant for inclusion in their own balanced scorecard. More generally, the results should help them in the management of their activity. For researchers the authors make available an already validated scale with which to work in various different samples and settings.

The originality of the work resides in two aspects. First, a very wide set of variables proposed in the literature is analyzed, with the object of establishing the relationships and the ranking of these variables, which would not be clear if the variables were analyzed in isolation. Second, there is originality in the methodology employed for measuring the result of activities with a high level of uncertainty and risk, specifically R & D activities in the highly innovative companies of the pharmaceutical industry. It is original because, to date, the scale has only been validated theoretically – there is no work in the literature validating it empirically.

The purpose of this paper is to investigate the relationship between the industry relatedness of directors’ multiple directorships and corporate governance effectiveness. The authors posit that a director gains “beneficial experience” by serving on outside boards of companies in related industries, with a resulting increase in governance effectiveness. Conversely, they predict a decrease in governance effectiveness when directors serve on outside boards of companies in unrelated industries.

Using publicly available data, a Tobit regression model is used to examine the effect of the industry relatedness of board members’ multiple directorships on corporate governance effectiveness.

The results demonstrate a significant positive correlation between the industry relatedness of directors’ multiple directorships and corporate governance effectiveness. It was found that this industry relatedness effect is stronger for directors of small companies than large company directors. The paper also documents a significant negative effect on governance effectiveness for small firms whose directors increase their board service on non-industry-related boards.

Prior research has examined the “Busyness Hypothesis” and the “Experience Hypothesis” as mutually exclusive hypotheses. This paper extends prior research by examining the possibility that the two hypotheses are not competing, but rather that both an experience effect and a busyness effect may be present for directors serving on multiple boards, and that one of the effects will dominate the other, based on certain company-specific characteristics.

This paper aims to find out what characterises salespeople in the most effective salesforce in Spain.

An empirical analysis has been done with 108 field sales managers from different sectors of activity to determine the conditions of the salesperson's control, professionalism and behaviour that affect his/her performance and the effectiveness of companies. A structural equations model or second generation multivariate model was used – PLS.

The results show that more effective salesforces are controlled through behaviour control systems, salespersons in this team identify with the company's strategic objectives and an important part of their remuneration is based on a fixed salary.

First, the information has been gathered on a unique hierarchical level – team managers. Second, the company's activity sector and the type of salesperson can modify the results. Finally, the size of the sample has limited the potential application of specific statistical techniques and even the generalisation of the results.

Field sales managers must help to define the salespeople's tasks to reach the company's objectives in the most effective way. This situation implies, logically, that control is exerted over behaviour and to a lesser extent over the results achieved by the salesperson.

The paper determines those variables which allow companies, and especially those persons holding responsibility in the salesforce, to increase their effectiveness. The objective enriches the knowledge on sales effectiveness and also applies, in the Spanish case, a study methodology that has been applied in other countries.

The literature is abundant with articles extolling the importance of change as a necessity for business survival and growth. Specifically, business change means the redesigning of business processes, the improvement of the company’s products and/or services, and organizational changes to organizational structure and/or culture deemed necessary for better performance. Despite the importance of the topic, the existing literature contains little empirical evidence. Mostly superficial analyses and personal opinions have been published in this basic area. A field test of how effectively business organizations are implementing business changes, and use IS technology to do so, was undertaken to understand the important characteristics of the business change processes involved and to empirically test the relationships among these constructs. Despite the relatively small sample size, the results provide clear evidence about the importance of effectively managing business change for business success. The items used for measuring the main constructs provide further insights into how managers should go about managing necessary business changes, including IS department support for the change process to improve business performance.

The chapter studies the current tendencies of the Russian practice of decision-making in business systems by the example of a gas distribution company of the Russian Federation. In the modern Russian practice, the companies transform the system of decision-making to the process-oriented approach, which envisages decision-making and correction of decisions not according to functional responsibilities but according to consecutively performed procedures of conducted business processes.

The authors describe the procedure of formation of business processes in a gas distribution company by the example of the business process “Technological connection” and provide its characteristics.

As a result of studying foreign approaches to formation of the model of management and decision-making in companies, the authors develop a methodology of evaluation of economic effectiveness of implementation of a business process, based on the principles of management according to goals and KPI. This methodology allows evaluating the obtained results of a separate stage and of the business process on the whole.

By the example of the studied business process, a set of key indicators of effectiveness of a separate subprocess “Formation of technical condition” in a company is offered, and calculations of final results of effectiveness of this business process are provided. As a result of the final evaluation, practical recommendations for development of managerial decisions in a company are provided.

This study aims to identify key knowledge enabling factors (KEFs) which can enable construction companies to improve various organizational effectiveness outcomes (OEOs).

Using a questionnaire, data are collected from construction companies in Vietnam. Mean score method is used to calculate the mean values of KEFs. In addition, regression analysis is used to identify KEFs which significantly affect OEOs.

A list of 32 KEFs, whose ranking orders of importance are provided according to different types of construction companies, is presented. In addition, different lists of specific KEFs which could significantly affect different OEOs are identified. Furthermore, seven key KEFs which could have a significant impact on many OEOs are highlighted.

The findings of this study could help construction companies to know the controllable KEFs, on which they should focus more. Hence, they could perform these KEFs properly to improve various aspects of organizational effectiveness.

This study identifies 32 KEFs and 10 OEOs specifically for knowledge management in construction companies. This study also provides construction companies with a better understanding of the impact of KEFs on various aspects of organizational effectiveness. Hence, they could develop effective KEFs-based management strategies to enhance various aspects of organizational effectiveness.

The voluminous body of literature on the management of change, including sub‐areas such as Business Process Reengineering (BPR), Total Quality Management (TQM), and product improvement, implicitly or explicitly propose that company strategic intelligence is a pre‐requisite for change, and that effective information systems (IS) support is a critical requirement for implementing change. While these two hypotheses are exceedingly important, the existing literature contains no empirical evidence supporting them. A field test of how effectively small business organizations are identifying strategic problems and opportunities, how effectively they implement business changes, and use IS technology to do so, was undertaken to empirically test their relationships. Despite the relatively small sample size, the results provide clear evidence about the importance of competitive intelligence and IS support for effectively implementing change in small business organizations. The items used for measuring the main constructs provide further insights into how managers should go about acquiring competitive intelligence and managing IS technology to effectively support business improvements.

The purpose of this paper is to examine the effect of board of directors and audit committee effectiveness on the level of internet financial reporting (IFR) disclosure practices.

The sample consists of 152 listed financial companies in Gulf Cooperation Council (GCC) countries. Based on agency theory, the authors posit that board of directors and audit committee effectiveness influence corporate IFR disclosure practice. Content analysis approach, based on an un-weighted index of 35 IFR items is used to measure the level of IFR disclosure. Thus, multiple regression analysis is utilized to analyse the results of this paper.

The results show that board of directors and audit committee effectiveness has significant influence on the level of IFR disclosure.

One potential limitation of this paper is that the sample is drawn only from the GCC listed financial companies. Therefore, the findings cannot be generalized to other than the financial institutions.

The finding(s) highlights the importance of board of directors and audit committee characteristics in corporate governance and in the development of financial markets that foster IFR disclosure.

This paper extends previous IFR disclosure studies by considering both the role of board of directors and audit committee effectiveness score in examining IFR disclosure.

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of material poses problems for the researcher in management studies — and, of course, for the librarian: uncovering what has been written in any one area is not an easy task. This volume aims to help the librarian and the researcher overcome some of the immediate problems of identification of material. It is an annotated bibliography of management, drawing on the wide variety of literature produced by MCB University Press. Over the last four years, MCB University Press has produced an extensive range of books and serial publications covering most of the established and many of the developing areas of management. This volume, in conjunction with Volume I, provides a guide to all the material published so far.

It is generally recognised that companies spend approximately 50% of their marketing budget on promotional activities. Advertising belongs to the most visible areas of a company’s activity. Therefore, it should not be surprising that the average recipient associates marketing with advertising, competitions and leaflets about new promotions delivered to houses or offices. Advertising, especially Internet advertising, is one of the most effective forms of marketing and one of the fastest developing areas of business. New channels of communication are emerging all the time – the Internet, digital television, mobile telephony; accompanied by new forms, such as the so-called ambient media. Advertising benefits from the achievements of many fields of science, that is, psychology, sociology, statistics, medicine and economics. At the same time, it combines science and the arts – it requires both knowledge and intuition. Contemporary advertising has different forms and areas of activity; yet it is always closely linked with the operations of a company – it is a form of marketing communication.

The indices of marketing communication presented in this chapter are generally known and used not only by advertising agencies but also by the marketing departments of many organisations. Brand awareness, advertising scope and frequency, the penetration index or the response rate belong to the most widely used indices; others, like the conversion rate or the affinity index, will get increasingly more significant along with the process of professionalisation of the environment of marketing specialists in Poland and with increased pressure on measuring marketing activities. Marketing indices are used for not only planning activities, but also their evaluation; some of them, such as telemarketing, mailing and coupons, provide an extensive array of possibilities of performance evaluation.