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The purpose of this paper is to analyze the importance of information asymmetry in the relationships between Portuguese SME's capital structure decisions and creditors, comparing the results of service SME with those found in manufacturing SMEs.

Two samples of Portuguese SMEs are considered: one sample is composed by 610 unlisted service SMEs; and, the other sample is made up by 381 unlisted SMEs in manufacturing industry, for the period 1999‐2006. To estimate the results, the two‐step estimation method is used, to control possible bias arising from data selection. In the first step, probit regression is used. In the second step, after the control for possible data bias, dynamic panel estimators are used.

The results obtained suggest that information asymmetry in the relationships between SMEs and creditors has a greater relative influence on capital structure decisions of service SMEs than on those of manufacturing SMEs.

Given the increasing importance of service SMEs in the Portuguese economy for stimulating employment, business volume, and consequently economic growth, it would be advisable for policy makers to create special long‐term lines of credit, with advantageous terms, so that Portuguese service SMEs, when internal finance is insufficient, can finance more efficiently the growth opportunities and the strategies for diversification. In addition, since SMEs' capital structure decisions present differences, both concerning the sector of industry and over time, the measures adopted by policy makers should differentiate their measures between industry sectors and over time.

First, this paper is pioneering in comparing the adjustment of actual short‐ and long‐term debts, in service and manufacturing SMEs, towards the respective target ratios. Second, it is pioneering in using dynamic estimators and in using the two‐step estimation method, in studies of determinants of capital structure decisions of service and manufacturing SMEs.

The growth in the global tourism market place presents many countries with great opportunities to capitalize on their natural competitive advantages. However, achieving the economic potential of global tourism remains elusive for many countries, despite their natural advantages. In this context, Portugal is a case in point. The Portuguese tourism industry is facing some serious challenges that are limiting its potential. This study offers Portuguese tourism industry leaders practical insights into the characteristics of the Portuguese tourism industry in the context of the challenges and opportunities of the global tourism market place. Understanding the dynamics and characteristics of this critical industry in a global context is a crucial first step toward formulating a tourism strategy that capitalizes on the growth of the global tourism market and the natural advantage that Portugal enjoys in this important market.

Ever since Portugal joined the European Union, Portuguese organisations have been struggling with both the challenges of new competitors flooding in from other European countries and taking advantage of the opportunities the new enlarged integrated market offered them. This is because Portuguese companies have in general low average rates of productivity growth while they lack techniques to improve not only these rates but also overall organisational performance. The purpose of this paper is to discuss whether the high-performance organisation (HPO) framework, a holistic improvement technique developed on the basis of worldwide data, is valid for the Portuguese context and therefore can support Portuguese organisations in their efforts to achieve better performance.

Managers in Portuguese organisations, which were found in the Spain balance sheet analysis system database, were approached to fill in the HPO questionnaire on their company. In total, data was received from 163 organisations. This data was subsequently statistically analysed using a confirmatory factor analysis.

The study shows that the 35 items of the HPO framework are valid for the participating Portuguese organisations and as such form a reliable HPO framework for these organisations. Thus, the HPO framework can be reliably applied at Portuguese organisations to evaluate their current level of organisational performance and to propose recommendations to improve performance.

This research study fills the gap of the currently rather limited literature on the application of holistic and effective improvement techniques in Portugal, and as such future researchers can use the framework to conduct a more in-depth study of performance gains in the Portuguese context. Portuguese managers now have at their disposal a holistic improvement technique validated for their context, so they can use the HPO framework with confidence to start improving their own organisations.

The purpose of this paper is to discuss the contribution of the Porter Report toward increasing the competitiveness of the Portuguese economy and highlights the factors that affected its operationalization.

This paper considers the contributions of the Porter Report, entitled “Building the Competitive Advantages of Portugal”, presented in 1994, particularly with regard to the recommended clusters and public policies, as well as the assessment and warnings provided by Michael Porter in 2002, examining both in the present perspective.

Although Michael Porter, in 2002, made a critical judgment about the country’s evolution since the 1994 report, it is clear that, on the one hand, the recommended development model attracted high attention and had positive repercussion in academic and business circles, while on the other hand, some of the objectives were achieved, albeit at a slower pace than would have been desirable. Political and economic context and the time period are relevant for all technological and geostrategic changes, among others. The accuracy of the diagnosis and the development model proposed by Michael Porter is confirmed and the difficulty in its implementation is highlighted.

The analysis of the Portuguese evolution after Porter’s recommendations is instrumental in understanding the competitiveness and development challenges faced by a small peripheral economy in the European integration process. Understanding these difficulties and successes is of utmost importance in improving the definition and in the implementation of policies focused on the competitiveness of countries and regions.

This article aims to analyze performance evaluation in the Portuguese hospitality sector. It assesses the frequency with which performance indicators are monitored, the relevance assigned to them and how the two are related. It further evaluates whether performance evaluation practices in the Portuguese hospitality sector are based on the balanced scorecard (BSC) philosophy.

The study builds upon a doctoral research addressing the hospitality sector in Portugal. Theoretically, it resorts to a literature review on performance indicators and the Portuguese hospitality sector. Empirically, it looks at a sample of four- and five-star hotels operating in Portugal in 2012. A questionnaire addressing the four perspectives of BSC was applied, and a descriptive analysis was developed.

Performance indicators cover the four perspectives of BSC in a balanced way, which confirms its relevance as a strategic management tool. However, there is no coincidence between the performance indicators most frequently monitored and those considered to be most relevant.

The study reviews/identifies performance indicators suitable for the hospitality sector and highlights ways to improve their use in the Portuguese hospitality sector.

Redirecting the use of performance indicators to long-term objectives will benefit the financial results of the hospitality industry, with positive impacts on employment. This is particularly relevant as the hospitality industry is an activity strongly characterized by seasonality.

This is a descriptive study related to the use of indicators in the Portuguese hotel sector, to this date inexistent/innovative. It highlights the need for changes in the choice of performance indicators in the Portuguese hospitality sector and offers suggestions for future performance evaluation frameworks.

In view of the complexity of supply chain management (SCM) in the insurance industry, to the best of the authors’ knowledge, this paper was the first to use symmetrical and asymmetrical methos to examine how the insurer’s service quality and SCM can be configurated to explain the relationships between the insurance companies and brokers as the intermediaries. This study positions insurance brokers as the insurance companies’ customers and supply chain partners, aims to examine the relationships between service quality, SCM and relationship quality.

This paper undertook two studies and used two methods to examine how the insurer’s service quality and SCM can be configurated to explain the relationships between the insurance companies and brokers as the intermediaries. Both symmetrical and asymmetrical analyses were performed including regression and fuzzy-set qualitative comparative analysis (fsQCA).

The results from symmetrical analyses and fsQCA from two countries show substantial differences in how service quality and SCM affect relationship quality. In particular, fsQCA show that all service quality dimensions are important antecedent conditions of relationship quality for Portuguese brokers. Interestingly for Irish brokers, the combination of assurance, responsiveness and the insurer’ empathy conjunctively accounted for their satisfaction, whereas none of these quality factors are related to their commitment and trust. All SCM factors are important to explain the brokers’ relationship quality with their chosen insurers for both countries.

This study contributes to three areas of research: service quality, SCM and relationship marketing. Firstly, this study used an asymmetrical approach to providing insights into the effect of service quality dimensions by showcasing how these dimensions were configurated to explain the outcome of interest, rather than examining their symmetrical path coefficients. Secondly, this study identified the key factors of SCM in the insurance industry and how these factors can be configurated through Boolean algebra to explain relationship quality between supply chain partners. Finally, this study has implications for relationship marketing research.

As the study was conducted with the insurance brokers in Portugal and Ireland, the findings have implications for the insurance companies for the two countries. As different service quality factors and SCM exert different effects on relationship quality, the insurance companies should look into these factors to modify their current practice to improve relationship quality with their brokers.

Theoretically, to the best of the authors’ knowledge, this is the first study to approach from intermediaries to address effectiveness of SCM. Methodologically, to the best of the authors’ knowledge, this is the first study to use fsQCA – a case-based approach to understand SCM and relationship quality between stakeholders.

This study aims to explore the nature of the relationship between market orientation and business performance in the Portuguese hotel industry and to evaluate the mediating role of service quality in this relationship.

A literature analysis on market orientation, service quality and hotel business performance was conducted. The structural model was developed, and the measurement scales’ items were generated. Working data were obtained by sending a survey to Portuguese hotel managers. A purification process was conducted, and the convergent and discriminant validity, as well the reliability, of the measurement models were assessed. The structural model was tested by conducting a path analysis, as well by evaluating the coefficient of determination (R2) and the predictive relevance indicator (Q2).

Research results show that market orientation has a positive direct effect on business performance. Moreover, results indicate that market orientation effects on business performance are mediated throughout the hotels’ ability to provide service quality.

Despite the large amount of research on market orientation, research on the hospitality sector has been conducted mainly using tools developed for the manufacturing and consumer goods sectors. On the other hand, little has been done to explore the nature of the mediating effect of service quality on the relationship between market orientation and business performance in the hotel industry. Moreover, despite the contribution of the tourism industry to the Portuguese gross domestic product, research on the hotel industry is scarce.

Studies wage dispersion across firms and time in a specific industry that exhibits competitive features – the Portuguese clothing industry in the 1991‐1994 period. By drawing on a large matched employer‐employee panel, obtains the following results: the workers' firm affiliation plays an important role in wage determination; there is a sizeable and persistent dispersion of firm‐fixed effects, which is also similar for workers of different tenure levels and occupations; workers in high‐turnover firms are generally paid less. It is believed that these findings are not consistent with a simple competitive labour market model.

Local networks of small- and medium-sized enterprises (SMEs) are founded both on collaborative and competitive inter-organizational relationships within the same network characterised by spatial proximity between firms. This paper aims to propose an original analytical framework to understand how spatial proximity between firms within local networks influences strategy of SMEs.

Theories and the existing knowledge were used to develop a preliminary conceptual framework. This preliminary framework was then developed as data collection and analysis were carried out. That is, in the more advanced stages of the research, both the literature and data allowed the design of a more specific analytical framework with the development of theoretical propositions. The data supporting the findings was derived from extensive content analysis of secondary documents from manufacturers, channel agents, industry organisations, public agencies and statistical sources. These data were also used as background briefing for 52 in-depth interviews with 36 senior managers within the sector.

An extensive qualitative research carried out in two major local networks of footwear production in Portugal shows that spatial proximity influences the following major variables of SME strategy: offer specialization, market specialization, competitive behaviour and collaborative behaviour. This paper examines the strong subcontracting relationships among manufacturers within each local network, discusses the competitive and collaborative behaviour of firms within their local networks of subcontracting and explains the nature of interaction between them contributing for a better understanding on the impact of spatial proximity on strategy.

Some management implications can be drawn from this research at the level of the network and of the firm, although both levels are profoundly intertwined. The paper discusses both these implications.

This research clarifies the relationship between spatial proximity and strategy of SMEs immersed in local networks. In particular, the findings show that, in the context of local networks of footwear production, SME strategy is influenced by spatial proximity between firms in the following characteristics of strategy: offer specialization, market specialization, competitive behaviour and collaborative behaviour. As it was discussed and empirically supported, spatial proximity between firms favour resource mobility, firms' interaction and reduction of transaction costs, which, in turn, impact strategy.