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Article
Publication date: 1 April 2005

David C. Wheelock and Paul W. Wilso

This paper investigates how well regulator examinations predict bank failures and how best to incorporate examination information into an econometric model of time‐to…

Abstract

This paper investigates how well regulator examinations predict bank failures and how best to incorporate examination information into an econometric model of time‐to‐failure. We estimate proportional hazard models with time‐varying covariates and find that examiner ratings help explain the failure hazard. Both the overall rating of a bank's condition and management, i.e., the composite CAMELS rating, and ratings of specific components contain information. In addition, we find that the marginal “effect” of ratings is non‐linear, in that the impact of a rating downgrade on the hazard is larger, the weaker a bank's initial rating.

Details

Review of Accounting and Finance, vol. 4 no. 4
Type: Research Article
ISSN: 1475-7702

Article
Publication date: 1 May 1995

K. Douglas Hoffman, Scott W. Kelley and Holly M. Rotalsky

Demonstrates a method for examining service failures and recoverystrategies in service industries and provides a typology of servicefailures and recoveries in the…

11532

Abstract

Demonstrates a method for examining service failures and recovery strategies in service industries and provides a typology of service failures and recoveries in the restaurant industry. Based on 373 critical incidents collected from restaurant customers, uses the critical incident technique (CIT) to identify 11 unique failure types and eight different recovery strategies. Additional data regarding the magnitude of the service failure, the service recovery rating, the lapsed time since the failure/recovery incident, and customer retention rates were also collected. Presents this information along with managerial and research implications.

Details

Journal of Services Marketing, vol. 9 no. 2
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 24 February 2021

Krishna Vishwanath Iyer and V.V. Ravi Kumar

This paper aims to propose an innovative blockchain-based system enabling implementation of a bond-pays model in credit rating industry. Issuer-pays model has led to…

Abstract

Purpose

This paper aims to propose an innovative blockchain-based system enabling implementation of a bond-pays model in credit rating industry. Issuer-pays model has led to conflict of interest resulting in rating shopping and inflation. Alternative business models have their own problems, e.g. investor-pays model suffers from “free rider” and public dissemination challenges, whereas government-controlled business models can lead to market distortion. Bond-pays model has been difficult to implement owing to operational difficulties in managing co-ordination amongst multiple entities involved, often with conflicting goals. Blockchain technology enables inter-organizational systems that foster trust amongst non-trusting entities, facilitating business functions such as credit rating to be carried out.

Design/methodology/approach

This paper outlines current processes in credit rating business that has led to repeated rating failures and proposes a new set of processes, leveraging capabilities of blockchain technology to enable implementation of an arms-length bond-pays model.

Findings

A proof-of-concept system, namely, rating chain has been designed to implement a small part of the proposed model to establish technical feasibility in a blockchain environment.

Practical implications

A fully functional blockchain-based system on bond-pays business model, if built and adopted, could impact how credit rating market functions currently and could contribute to a reduction in rating-related challenges.

Originality/value

The proposal to adopt blockchain technologies in implementing a bond-pays model in credit rating industry is a novel contribution.

Article
Publication date: 1 July 2003

K. Douglas Hoffman, Scott W. Kelley and Beth C. Chung

This study was undertaken to investigate service failures relating to problems with the management of the servicescape. Of the 1,370 failure critical incidents collected…

7549

Abstract

This study was undertaken to investigate service failures relating to problems with the management of the servicescape. Of the 1,370 failure critical incidents collected, 123 were identified as servicescape failures. The three primary types of servicescape failures most likely to occur, listed in order of frequency, include cleanliness issues, mechanical problems, and facility design issues. The study also identifies eight servicescape subfailure type categories and discusses failure ratings, recovery strategies, recovering ratings and customer retention rates.

Details

Journal of Services Marketing, vol. 17 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 23 March 2010

Pao‐Tiao Chuang

To ensure the service quality, it is very important and necessary for a company to systematically identify and prioritize the critical failure modes that result in…

1984

Abstract

Purpose

To ensure the service quality, it is very important and necessary for a company to systematically identify and prioritize the critical failure modes that result in disservice of quality, and take the required remedial actions before the service is delivered to customers. The purpose of this paper is to propose an approach to enhance perceived service quality by incorporating disservice analysis with failure modes and effects analysis (FMEA).

Design/methodology/approach

The approach, first, identifies the potential failure modes that might have explicit effects on the service quality. Subsequently, the risk priority number (RPN) is computed to identify the risk priority for each potential failure mode. Furthermore, a disservice index that represents the extent of composite adverse effect of service failures on quality perceptions is computed to recognize the disservice priority for each quality dimension. Based on which, vital quality dimensions are determined as those quality dimensions that have higher disservice indices. The critical failure modes are, then, confirmed as those failure modes that have higher RPNs in the vital quality dimensions. Finally, the effects and root‐causes of the critical failure modes are determined by thoroughly exploiting the service infrastructure, service design, and service encounter for the company to take effective remedial actions to enhance perceived service quality. A practical case regarding a hypermarket service was used to demonstrate the proposed approach. Managerial implications and suggestions are provided to the case company, the hypermarket industry, and other service industries. Possibilities for future research are also addressed.

Findings

The vital quality dimensions are determined as responsiveness and reliability for the hypermarket case. Six critical failure modes are confirmed, by the order of criticality, as “unstable supply of goods/merchandise,” “no goods/merchandise on designated shelf of the sales floor,” “slowness of cashier speed,” “tardiness of warranty/repair goods/merchandise,” “nonconforming quality of goods/merchandise,” and “unable to find first‐line server in the sales floor.” These critical failure modes should be eliminated or reduced in top priority to enhance perceived service quality. Note that the determination of vital quality dimensions and the confirmation of critical failure modes depend on the applicable company resources.

Originality/value

The proposed approach improves both the academic and the practical developments of service quality in five aspects: explicitly identifying potential mistakes or failures of the service system that might result in disservice of quality. Arousing notices and focuses on those failure modes that have higher risk priorities by performing FMEA. Identifying how seriously the service failures adversely affect each of the quality dimensions and determining what the vital quality dimensions are by carrying out disservice analysis. Confirming the critical failure modes as those failure modes that have higher risk priorities in the vital quality dimensions with higher disservice indices. Knowing what actions need to be taken in advance to enhance perceived service quality by identifying the root‐causes that result in those critical failure modes.

Details

Industrial Management & Data Systems, vol. 110 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 16 February 2010

Ala'a Hawari and Richard Heeks

Enterprise resource planning (ERP) systems are increasingly being adopted by organisations in developing countries. As in industrialised countries, this adoption seems…

6194

Abstract

Purpose

Enterprise resource planning (ERP) systems are increasingly being adopted by organisations in developing countries. As in industrialised countries, this adoption seems beset by significant rates of failure, leading to a large waste of investment and other resources. This paper seeks to understand why such ERP failure occurs.

Design/methodology/approach

The paper moves beyond factor lists to make use of an overall “design‐reality gap” model. The model is applied to a case study of ERP failure in a Jordanian manufacturing firm, analysing the situation both before and during ERP implementation through a mix of interviews, observation and document analysis.

Findings

The research finds sizeable gaps between the assumptions and requirements built into ERP system design, and the actual realities of the client organisation. It is these gaps – and the failure to close them during implementation – that underlie ERP project failure.

Research limitations/implications

This study shows the relevance and applicability of the design‐reality gap model to understanding ERP failure. Further research can be undertaken applying the model to other ERP cases, including case studies of success.

Practical implications

The paper draws conclusions about good practice in ERP implementation relating to both risk identification and risk mitigation, which must be based on closing design‐reality gaps. It offers examples of both specific and generic actions that help to achieve this. But it also notes limitations existing in some developing country contexts that may continue to constrain the effective use of enterprise resource planning systems.

Originality/value

The paper provides a new model for understanding ERP project success and failure, and for practical risk mitigation. The design‐reality gap model aims to be comprehensive but also contingent; sensitive to the specific conditions of any individual client organisation.

Details

Journal of Enterprise Information Management, vol. 23 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 1 April 2005

E. Sadler and B.J. Erasmus

This study was based on the perceptions of lecturers and black CTA students at Unisa, a South African distance education university regarding on factors that contribute to…

580

Abstract

This study was based on the perceptions of lecturers and black CTA students at Unisa, a South African distance education university regarding on factors that contribute to black students’ academic success and failure. The main purposes of the study were to help black CTA students to understand the reasons for success and failure better, and to improve lecturers’ teaching approach(es). The research shows that students and lecturers have divergent views on what factors contribute to academic success or failure and the relative importance of the various factors.

Details

Meditari Accountancy Research, vol. 13 no. 1
Type: Research Article
ISSN: 1022-2529

Keywords

Article
Publication date: 3 December 2020

Rishi Dwesar and Debajani Sahoo

Increased global air travel and competition in the airline industry entail better service delivery and failure management. This study examines how airline type, failure

Abstract

Purpose

Increased global air travel and competition in the airline industry entail better service delivery and failure management. This study examines how airline type, failure criticality and the traveller's culture influence travellers' airline evaluations of service failure.

Design/methodology/approach

The study uses a large data set of customers' online reviews and incorporates quantitative and qualitative feedback from 20 major airlines across the world. Semantic tagging, sentiment and multivariate analyses have been used to analyse the data.

Findings

Failure criticality and travellers' cultural backgrounds significantly affect airline evaluations after service failures. Moreover, failure criticality influences evaluations of travellers from individualistic cultures more severely. Contrary to expectations, full-service airlines were evaluated positively after less critical service failures.

Practical implications

The findings support that customers undergo different emotional states when they experience service failure. Understanding these internal emotional sensitivities and how services would be judged by travellers across cultures can help airlines to better manage their service recovery efforts and to strategise prioritisation of scarce resources.

Originality/value

Though airline service failure has been well researched, this study examines the role of culture in service failure evaluations. The study uses a novel method to analyse a large data set of both quantitative and qualitative traveller feedback useful in service recovery management.

Details

Management Decision, vol. 60 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 20 April 2012

Sekar Vinodh and D. Santhosh

The purpose of this article is to report the application of failure mode and effect analysis (FMEA) to an automotive leaf spring manufacturing organization.

2017

Abstract

Purpose

The purpose of this article is to report the application of failure mode and effect analysis (FMEA) to an automotive leaf spring manufacturing organization.

Design/methodology/approach

FMEA has been used as a decision‐making tool to prioritize the corrective actions so as to enhance product/system performance by reducing the failure rate. Both design and process FMEA documents have been developed by the systematic formation of team.

Findings

The study results indicated the actions that lead to improvement in design. There has been improvement in key decision factors apart from conventional factors. In addition, the quality of leaf springs produced also has been improved.

Research limitations/implications

Conventional design and process FMEA approaches have been developed. In future, fuzzified FMEA can be used.

Practical implications

FMEA has been systematically deployed in a typical industrial scenario. The real improvements have been gained as a result of implementation.

Originality/value

The article presents the results of the case study conducted in an industrial scenario. The contributions of the study are original and valuable.

Details

The TQM Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1754-2731

Keywords

Book part
Publication date: 9 July 2010

Marc Schneiberg and Tim Bartley

Existing financial market architectures combine astonishing complexity with tight coupling, making them prone to systemic crises or “normal accidents” and placing…

Abstract

Existing financial market architectures combine astonishing complexity with tight coupling, making them prone to systemic crises or “normal accidents” and placing extraordinary demands on regulation. In light of this, we consider two routes for regulatory reform. A “high modernist” possibility attempts to regulate financial markets as currently designed. This path means not only increasing the capacities of regulators and rating agencies to estimate complex risks, but also designing systems that can manage more radical forms of uncertainty through learning and bargaining. We consider a series of proposals and challenges that lie down this path. An alternative possibility takes seriously the notion that regulation constitutes markets and uses the current crisis to rethink market architectures themselves, especially their complexity and tight coupling. Preventing failures from spiraling into systemic crises may involve using regulation first, to simplify financial products and their interconnectedness, and second, to create redundancies or hedge bets through specialized financial subsectors organized around alternative principles, including recapitalized community banks, credit unions, mutuals, and public financial institutions.

Details

Markets on Trial: The Economic Sociology of the U.S. Financial Crisis: Part A
Type: Book
ISBN: 978-0-85724-205-1

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