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1 – 10 of over 3000The purpose of this paper is to investigate whether there are differences in terms of the effect of the ISO 9001 non-conformity process on the cost of poor quality in different…
Abstract
Purpose
The purpose of this paper is to investigate whether there are differences in terms of the effect of the ISO 9001 non-conformity process on the cost of poor quality in different sectors. In particular, to investigate the effect on six sectors of companies which manufacture their products mainly through machines and plant (i.e. capital-intensive companies). An additional aim is to understand what the reasons for these differences are and why ISO 9001 has limitations in reducing the different categories of costs of poor quality.
Design/methodology/approach
The paper is based on a questionnaire administered to a sample of 42 companies divided into six different sectors: chemical, pharmaceutical, mechanical, food, ceramic and steel. Respondents were asked to give a percentage score for the contribution the ISO 9001 non-conformity process makes to the reduction in total cost of poor quality and to its categories: scrap, rework, machine stoppage, re-inspections, rejected products and recall cost. A one-way Anova test was applied to the means of the percentage scores to determine whether there are differences between the means of the total cost of poor quality and its categories. Qualitative comments and suggestions from the companies provided information that helped explain the reasons for such differences.
Findings
The results of the research show that there is no difference within and between the sectors in the means of the total cost of poor quality and scrap cost, whereas there are significant differences in the means of the other costs of poor quality between the six sectors. The ISO 9001 non-conformity process has limitations in reducing the costs of poor quality and suggestions concerning the limitations of ISO 9001 in the Research and Development process emerge.
Research limitations/implications
The generalizability of the research findings is limited because of the use of just six sectors of capital-intensive companies. Further research about differences in different sectors is needed.
Practical implications
The implications of this research are useful for consultants and managers who want to understand what the limitations of the ISO 9001 non-conformity process are on the cost of poor quality in the six sectors. The findings clearly show how, together with ISO 9001, they should take into account other improvement processes such as periodic maintenance and revamping.
Originality/value
The paper discusses in a quantitative way and for the first time the effects of the ISO 9001 non-conformity process on the cost of poor quality.
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Trevor Young-Hyman and Mariangélica Martínez Chávez
Most analyses of the relationship between the internal distribution of formal organizational power, generally manifested in ownership and governance rights, and innovation efforts…
Abstract
Most analyses of the relationship between the internal distribution of formal organizational power, generally manifested in ownership and governance rights, and innovation efforts apply a principal-agent framework. The key implication of this framework is that firms with distributed formal power are more likely to engage in labor-intensive innovation because external capital providers are unwilling to entrust their investments to a worker controlled firm. In this paper, we critique the principal-agent framework and propose an alternative institutionalist approach, where the type of innovation pursued by firms with distributed formal power is contingent on the norms advanced by the innovation and the alignment of external stakeholders with those norms. After presenting this alternative framework, we illustrate its application with positive and negative cases of capital and labor-intensive innovation at the MONDRAGON cooperatives, a network of worker cooperatives in the Basque region of Spain. We conclude with a set of propositions to guide future research.
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Alemu Moges Belay, Fentahun Moges Kasie, Petri Helo, Josu Takala and Daryl J. Powell
The purpose of this paper is to investigate the relationship between quality management practice and labor productivity in labor-intensive manufacturing companies in a developing…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between quality management practice and labor productivity in labor-intensive manufacturing companies in a developing nation and benchmark with the world average.
Design/methodology/approach
Primary and secondary data were collected from 34 selected companies. The primary data were obtained using a questionnaire survey to determine the quality management adoption level of each company using the European Business Excellence Model. Secondary data also collected in order to compute labor productivity of each organization and benchmark with international norms.
Findings
In this research, labor productivity is measured by revenues per employee and total assets per employee and found that adopting quality management has strong relationships with revenue per employee unlike total asset per employee that is weakly related.
Originality/value
Several authors suggest a positive relationship between adoption quality management principles and productivity in large organizations located in developed countries. However, this paper particularly focuses on labor productivity of labor-intensive companies.
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This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies…
Abstract
This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network operators (MNOs) recover from over-diversified expansion by improving their local adaptation strategies by means of reconfiguring the value chain and entering local partnerships, by improving their global replication capabilities or by concentrating expansion to clusters of similar country markets. Three dynamic propositions are developed and exemplified concerning MNOs’ diversified international expansion. Implications for international diversification research finalize the chapter.
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M. Oberholzer and J.E.E. Ziemerink
Cost behaviour classification and cost behaviour structures of manufacturing companies. The purpose of this paper is to determine the cost structures of companies that formed part…
Abstract
Cost behaviour classification and cost behaviour structures of manufacturing companies. The purpose of this paper is to determine the cost structures of companies that formed part of an empirical investigation. Further aspects were investigated to determine why manufacturing companies classify cost behaviour into fixed and variable components and to determine how these companies classify specific cost items. It was found that there is a significant negative relationship between the fixed cost of a company and its degree of technological development. This means that labour intensive companies have more fixed cost as part of total costs and therefore a higher operating risk than technologically developed companies. It was also found that manufacturing companies classify cost items differently and this study provides some guidelines how to manage cost behaviour.
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If we cannot explain goodwill and potential goodwill in asset terms, they do not make sense. A partial explanation can be found in human assets or employee artefacts. A balance…
Abstract
If we cannot explain goodwill and potential goodwill in asset terms, they do not make sense. A partial explanation can be found in human assets or employee artefacts. A balance sheet model including employee artefacts is illustrated, and the consequences on the balance sheet and related financial key ratios are substantial. The inclusion of employee artefacts on the balance sheet (1) seems to make sense, (2) but it is still unclear if the inclusion will make organizations “better.” Even though the development of the balance sheet model is done in accordance with generally accepted accounting principles, it seems to (3) challenge the (elite) social order in organizations.
RICHARD RUMELT and Robert W. Lundeen
Looking ahead and assessing the total environment for business is the most challenging task facing corporate management in these uncertain times. The difficulty of such exercises…
Abstract
Looking ahead and assessing the total environment for business is the most challenging task facing corporate management in these uncertain times. The difficulty of such exercises has increased exponentially in the past several decades. Corporate boards and managements must now deal thought‐fully not only with economic issues, but with complex political and social issues, country by country, wherever their companies do business or wherever they would like to do business.
The purpose of this paper is to investigate the impact of different categories of ownership concentration on corporate voluntary disclosure practices in New Zealand.
Abstract
Purpose
The purpose of this paper is to investigate the impact of different categories of ownership concentration on corporate voluntary disclosure practices in New Zealand.
Design/methodology/approach
The study applies panel data regression analysis to a sample of New Zealand listed companies from 2001 to 2005. Two‐stage least squares analysis (2SLS) is conducted. Ownership concentration is categorised into four mutually exclusive ownership structures.
Findings
The paper finds that firm‐year observations characterised by financial institution‐controlled ownership structure tends to make significantly fewer (more) disclosures at high (low) concentration levels supporting expropriation. In contrast, firm‐year observations in the high (low) concentration group with government‐ and management‐controlled ownership structures exhibit considerably higher (lower) voluntary disclosure scores, suggesting a positive monitoring effect at high ownership concentration level.
Research limitations/implications
The results provide evidence for the proposition that the efficiency of large block holders' monitoring varies with the level of ownership concentration.
Practical implications
To promote transparency in capital markets, regulators can encourage or discourage certain types of large shareholding, while monitoring the level of ownership concentration by means of regulation. Investors, especially less sophisticated retail investors, will benefit from the findings that different ownership groups affect disclosure policies differently.
Originality/value
The findings strengthen the importance of differentiating ownership structures into various classes to infer the real impact of differential controlling properties on managerial disclosure decisions. Furthermore, the results reveal that the relationship between ownership concentration and voluntary disclosure practices has a non‐linear pattern.
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Daniel Pitelli Britto, Eliane Monetti and Joao da Rocha Lima Jr
The purpose of this paper is to clarify whether value created by real estate (RE) companies (tangible intensive firms) can be evaluated better using intellectual capital (IC…
Abstract
Purpose
The purpose of this paper is to clarify whether value created by real estate (RE) companies (tangible intensive firms) can be evaluated better using intellectual capital (IC) elements (human, structural and physical assets) or traditional accounting measures of efficiency (ROIC and profit margins).
Design/methodology/approach
Correlations and cross-sectional OLS regressions with robust standard errors were used to find relationships between variables explaining value creation. Data were collected from 2007 to 2011 for Brazilian RE firms. To measure market risk, the authors used a new approach to deal with low liquidity. VAIC and I j ratios were used as IC proxies even though both have limitations.
Findings
IC has a significant inverse relationship with market value. The more valuable companies showed lower levels of IC except for CEE which explains value as much as ROIC. Also, IC does not influence market risk caused by size and leverage and does not explain ROIC.
Research limitations/implications
The limitations of this study result from time and proxy variables. IC was measured by a VAIC model using data from a period of intense volatility. To increase the robustness of the conclusions, other variables should be used as proxies for IC and the results compared. The VAIC model has certain deficiencies in measuring IC.
Practical implications
Managers and investors in the RE sector need to change the way they create value and measure value creation. The low level of HC explaining either ROIC or market value is a signal of low innovation which, combined with high CEE, induces a short-term outlook.
Originality/value
This study opens discussion of IC in the Brazilian RE sector. A new methodology for identifying value creation is necessary for better evaluation and determining the fair value of firms.
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