Electronic companies with high growth potential: Financial position to future challenges

Abstract

Purpose: The present research positions in financial terms the Spanish electronic companies in the European frame in 2011-2013 period. The technological progress is nowadays changing the management functioning and the performance of the electronic companies is decisive. So, knowing their position in the Spanish market and analysing their economic and financial situation in the last years is going to help us to build a strong vision of how they will confront the future challenges.

Design/methodology/approach: The data used in this investigation collects the economic and financial information of a sample composed by high-growth Spanish electronic companies, because the selection criteria is delimited in a minimum 2013 ROA growth of 3% and a minimum 2011-2013 operating revenues growth of 6%. An economic and financial analysis and a descriptive statistics analysis which includes regression models are the used tools to define conclusions and results

Findings: The study allows us to determine the economic and financial health of the companies that own the 97% of the total sales in Spain. The research also defines the financial, gender and innovation variables that hardly influence the profitability of this industry and finally, establishes its harmony with the European perspective.

Research limitations/implications: It should be convenient to widen the sample to another technological companies and to increase the period of time to the 2014 tax year, even though the information in not available in the used database SABI.

Practical implications: The study allows us to evaluate the economic and financial performance of the electronic companies in the latest years in Spain and after that, to analyse if they are going to go for the future imminent challenges.

Social implications: The results allow us to evaluate the financial and economic modifications that these companies need to practise to overcome the technological development inherent changes and their implications in the management world.

Originality / value: It is going to be useful to the Spanish electronic companies to define their financial and economic model, which they should follow to not lose their competitive advantage because the technological disruption won’t stop in a near time frame of more transparent organizations.