An analysis of the business strategy, performance measures and organisational performance of Spanish firms during the financial crisis (2008-2010)

During economic and financial crises, it is vital for companies to adapt their strategies to an increasingly complex business environment, and to consider the degree to which various measures of performance indicate effectively whether they are achieving their goals. Few researchers have explored the implications of economic and financial crises for strategic management, and few of the studies that do exist have focused on Spain. Results of a survey (N = 43) distributed to some of the largest Spanish firms indicate that respondents perceived the business environment to be very dynamic, hostile, and restrictive between 2008 and 2010. Economic variables exerted the most substantial force on the environment. Most companies adopted a differentiation approach, which was related to perceived environmental uncertainty. Companies also considered financial performance measures to be more important than non-financial. The results of the survey show there was a relationship between the differentiation approach and self-reported organisational performance.