Effectiveness of business strategies in Brazilian textile industry

Batista, Paulo César de Sousa; Lisboa, João Veríssimo de Oliveira; Augusto, Mário Gomes; Almeida, Fátima Evaneide Barbosa de

doi:10.5700/rausp1236

Paulo César de Sousa Batista

Universidade Estadual do Ceará - Fortaleza/CE, Brasil

Paulo César de Sousa Batista, Professor do Programa de Mestrado e Doutorado em Administração e do Programa de Mestrado em Políticas Públicas e Sociedade, ambos da Universidade Estadual do Ceará (CEP 60740-000 - Fortaleza/CE, Brasil). E-mail: batista.pcs@gmail.com Address: Universidade Estadual do Ceará Avenida Dr. Silas Muguba, 1700 Campus do Itaperi 60740-000 - Fortaleza, CE - Brasil

João Veríssimo de Oliveira Lisboa

Instituto de Sistemas e Robótica - Operations Management Group (Pólo de Coimbra) e Faculdade de Economia da Universidade de Coimbra - Coimbra, Portugal

João Veríssimo de Oliveira Lisboa, Coordenador do Operations Management Group (Pólo de Coimbra) e Professor da Faculdade de Economia da Universidade de Coimbra (Coimbra, Portugal). E-mail: lisboa@fe.uc.pt

Mário Gomes Augusto

Instituto de Sistemas e Robótica - Operations Management Group (Pólo de Coimbra) e Faculdade de Economia da Universidade de Coimbra - Coimbra, Portugal

Mário Gomes Augusto, Pesquisador do Instituto de Sistemas e Robótica, do Operations Management Group (Pólo de Coimbra) e Professor Associado com Agregação da Faculdade de Economia da Universidade de Coimbra (Coimbra, Portugal). E-mail: maugusto@fe.uc.pt

Fátima Evaneide Barbosa de Almeida

Faculdade de Economia da Universidade de Coimbra - Coimbra, Portugal

Fátima Evaneide Barbosa de Almeida, Pesquisadora do Grupo de Pesquisa em Estratégia, Inovação e Desempenho da Universidade Estadual do Ceará e Doutora em Gestão de Empresas pela Universidade de Coimbra (Coimbra, Portugal). E-mail: fatimaevaneide.almeida@gmail.com

Paulo César de Sousa Batista, Professor do Programa de Mestrado e Doutorado em Administração e do Programa de Mestrado em Políticas Públicas e Sociedade, ambos da Universidade Estadual do Ceará (CEP 60740-000 - Fortaleza/CE, Brasil). E-mail: batista.pcs@gmail.com Address: Universidade Estadual do Ceará Avenida Dr. Silas Muguba, 1700 Campus do Itaperi 60740-000 - Fortaleza, CE - Brasil

João Veríssimo de Oliveira Lisboa, Coordenador do Operations Management Group (Pólo de Coimbra) e Professor da Faculdade de Economia da Universidade de Coimbra (Coimbra, Portugal). E-mail: lisboa@fe.uc.pt

Mário Gomes Augusto, Pesquisador do Instituto de Sistemas e Robótica, do Operations Management Group (Pólo de Coimbra) e Professor Associado com Agregação da Faculdade de Economia da Universidade de Coimbra (Coimbra, Portugal). E-mail: maugusto@fe.uc.pt

Fátima Evaneide Barbosa de Almeida, Pesquisadora do Grupo de Pesquisa em Estratégia, Inovação e Desempenho da Universidade Estadual do Ceará e Doutora em Gestão de Empresas pela Universidade de Coimbra (Coimbra, Portugal). E-mail: fatimaevaneide.almeida@gmail.com

Firm Age	Nº	%
More than 30 years	42	19.9
From 20 years to 29 years	44	20.9
From 10 years to 19 years	63	29.9
From 6 years to 9 years	26	12.3
Until 5 years	36	17.1
Total	211	100
Annual Revenue (US$)
More than 150 million	6	2.8
More than 45 million e less or equal to 150 million	11	5.2
More than 8 million and less or equal to 45 million	24	11.4
More than 1,2 million and less ore equal to 8 million	38	18.0
Less than or equal to 1,2 million	68	32.2
Not reported	64	30.3
Total	211	100
Employees
More than 500	22	10.4
Between 100 a 499	43	20.4
Between 20 a 99	67	31.8
Until 19	79	37.4
Total	211	100
Capital Origin
Foreign	5	2.4
National	206	97.6
Total	211	100

Construct	Items	Stand. Loads.	C.R.
Marketing Capabilities	Effectiveness of advertising programs	0.81	---
	Skill to segment and target markets	0.74	11.45
	Integration of marketing activities	0.88	13.84
	Knowledge of customers	0.60	8.94
Management Capabilities	Accuracy of profitability and revenue forecasting	0.81	---
	Human resource management capabilities	0.77	11.64
	Cost control capabilities	0.80	12.13
	Integrated logistics systems	0.53	7.58
Technological Capabilities	Production facilities	0.57	---
	Ability of predicting technological changes in the industry	0.90	8.71
	Technology development capabilities	0.87	8.65
Strategy Implementation Capabilities	The company's strategy is translated into clear objectives and easily understood by all employees	0.85	---
	Departments or functional areas are aligned with the strategies developed and / or emerging by the company	0.89	16.12
	All employees understand the strategy and conduct their daily activities in order to contribute to its success	0.76	12.83
	The process of strategy's formulation is linked to the budgeting process of the company	0.64	10.09
	Management meetings are held frequently to assess the implementation of the strategies	0.57	8.64
	The top leaders of the company are actively involved and committed to the implementation of business strategies	0.52	7.81
Focus Strategy	Introduction of new products in the market	0.79	7.00
	Targeting a clearly identified segment	0.51	---
	Capacity to manufacturing specialty products	0.85	7.14
Cost Leadership Strategy	Efficiency in procurement of raw materials and inputs	0.72	11.74
	Continuous improvement in production process	0.88	---
	Adoption of methods and tools in quality control	0.82	14.23
Differentiation Strategy	Building up a strong brand identity	0.74	10.45
	Offering after-sales services to consumers	0.81	11.45
	Innovation in marketing techniques and methods	0.76	---
	Intensity of advertising and marketing	0.71	14.30
	Developing and utilizing sales force	0.76	10.73
Strategy Formulation Quality	Analysis of internal resources and skills to implement strategies	0.82	10.87
	Vision supported by strategic objectives and possible to measure for the next three years	0.84	11.12
	Definition of vision clear to everyone in the company for the next three years	0.83	11.01
	Using analysis of Strengths and Weaknesses, Opportunities and Threats (SWOT Model)	0.77	10.22
	Using analysis of the macro-environment outside the sector of activity (political, economic, social, technological, legal)	0.81	10.76
	Using analysis of competitors	0.69	---
Market Performance	Growth in sales volume	0.89	---
Market Performance	Growth in market share	0.96	19.01
Financial Performance	Profit margin	0.91	---
	Return on equity	0.96	25.87
	Net profit	0.97	26.68

	SD	X1	X2	X3	X4	X5	X6	X7	X8	X9	X10	CR	AVE
Marketing capabilities (X1)	0.971	0.84										0.85	0.58
Management capabilities (X2)	1.073	0.63	0.81									0.82	0.54
Technological capabilities (X3)	1.014	0.66	0.54	0.82								0.83	0.63
Strategy implementation capabilities (X4)	1.014	0.50	0.68	0.46	0.86							0.86	0.52
Focus strategy (X5)	0.764	0.20	0.21	0.09	0.25	0.73						0.76	0.53
Cost leadership strategy (X6)	0.769	0.19	0.32	0.09	0.33	0.72	0.85					0.85	0.66
Differentiation strategy (X7)	.924	0.33	0.32	0.16	0.31	0.66	0.71	0.88				0.86	0.57
Strategy formulation quality (X8)	1.570	0.54	0.56	0.44	0.55	0.18	0.15	0.24	0.92			0.91	0.63
Market performance (X9)	1.534	0.32	0.18	0.10	0.26	0.05	0.21	0.22	0.34	0.92		0.92	0.85
Financial performance (X10)	1.464	0.35	0.29	0.16	0.27	0.05	0.11	0.19	0.36	0.78	0.96	0.96	0.89

		Stand. Coeff.	C.R.	p	Hypotheses
Marketing capabilities →	Focus strategy	0.20	2.435	^* * p ≤ 0.05,	H1a: S
Technological capabilities →	Differentiation strategy	0.10	1.568		H1b: NS
Management capabilities →	Cost leadership strategy	0.19	2.992	^ p ≤ 0.01;	H1c: S
Management capabilities →	Financial performance	0.15	2.949	^ p ≤ 0.01;	H1d: S
Focus strategy →	Cost leadership strategy	0.71	8.842	^ p ≤ 0.01;	H2: S
Cost leadership strategy →	Differentiation strategy	0.73	8.148	^ p ≤ 0.01;	H2: S
Differentiation strategy →	Market performance	0.16	2.090	^* * p ≤ 0.05,	H3: S
Strategy implementation capabilities →	Strategy formulation quality	0.57	7.073	^ p ≤ 0.01;	H4: S
Strategy formulation quality →	Market performance	0.31	4.109	^ p ≤ 0.01;	H5: S
Market performance →	Financial performance	0.75	12.667	^ p ≤ 0.01;	H6: S

[1] Paulo César de Sousa Batista, Professor do Programa de Mestrado e Doutorado em Administração e do Programa de Mestrado em Políticas Públicas e Sociedade, ambos da Universidade Estadual do Ceará (CEP 60740-000 - Fortaleza/CE, Brasil). E-mail: batista.pcs@gmail.com Address: Universidade Estadual do Ceará Avenida Dr. Silas Muguba, 1700 Campus do Itaperi 60740-000 - Fortaleza, CE - Brasil

Brasil

Brasil

Effectiveness of business strategies in Brazilian textile industry

Efetividade das estratégias de negócios na indústria têxtil brasileira

Efectividad de las estrategias de negociación en la industria textil en Brasil

ABSTRACT