Determinants of the adoption ofISO9000 and its impact on firm performance The ISO 9000 series of quality management systems standard has been widely applied all over the world since its introduction...

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Determinants of the adoption ofISO9000 and its impact on firm performance



The ISO 9000 series of quality management systems standard has been widely applied all over the world since its introduction in 1987. By the end of 2013, ISO 9000 had been adopted by over 1,129,000 facilities in 189 countries. Both academics and practitioners are interest in understanding the determinants of adoption of ISO 9000, and the impact of the adoption of ISO 9000 on firm financial performance (Christmann & Taylor, 2006; Du, Yin, & Zhang, 2016; Fikru, 2014a, 2014b, 2016; Nakamura, Takahashi, & Vertinsky, 2001; Pekovic, 2010; Wu, Chu, & Liu, 2007).



In 2008, the National Bureau of Statistics of China conducted an Economic Census of the service firms. The descriptions of variables, the coding are shown in the table. The data is available in Moodle.



Table: Variables, their descriptions and coding




























































































































































No



Variable name



Description of the variable



Coding



1



Year



Year the company certified



2004; 2005; 2006; 2007; 2008



2



Certification



Certification dummy



0= not certified; 1=certified



3



Industry2



Two digit industry code



58= storage and transportation;


60= telecommunication


61=computer service


62=software


74= business services


75= Research and Development


76= specialized technology services


77= technology exchange and promotion



4



Industry4



Four digit industry code





5



Stpyear



Year of the founding of the company





6



I



Employee number





7



I_yjs



Number of employees with master or doctor





8



I_benke



Number of employees with bachelor





9



I_dz



Number of employees with diploma





10



I_gaozhong



Number of employees with high school education





11



I_chuzhong



Number of employees with junior high school or below





12



Revenue



Sales of the company





13



Profit_operation



Profit of the company





14



Ksum



Total asset of the company





15



Equity



Equity of the company





16



Kpaid



Total capital





17



Kstate



Capital from government





18



Koversea



Capital from overseas





19



Kother



Capital from other sources





20



ROS



Return on sales





21



ROA



Return on assets





22



FDIpercent



Percentage of overseas investment in the total investment





23



DFIdummy



Overseas investment dummy





24



agefirm



Age of the company





















Required Task



You are expected to work in groups and write a research report. When you work on your report, you need to use the dataset, and other sources such as journal articles. If you use website material, please pay attention to the quality of the material (e.g. government website or industry website etc.). There is no word limit for the report. For the number of references, there should be at least ten academic sources (journal articles, or books). It is encouraged to use more relevant, high quality, and up to date sources in the report.



Students have a high degree of flexibility in doing the research. The important thing is that the research should be well connected with the literature.



The required structure should be as following.



1. Executive Summary: Major findings and major recommendations


2. Introduction: Background (of the case); purpose (of this report); two to three research objectives for a study that you would seek to conduct; and format (of this report).


3. Write a short literature review of at least ten academic sources relevant to your topic. Any source including books, journal articles are acceptable, as long as they are relevant. You can also use a particular website for some information. If websites are used they will be in addition of the ten academic sources.


4. Describe the methodology and justify your choice.


5. Analyses and findings: Run some analysis to turn the data into useful information as follows:


a)Descriptive statistics:Sample characteristics will be described with descriptive analysis. This will include at least the following analysis: Frequency, percentage; Measures of central tendency; Measures of dispersion (variance, standard deviation)


b)Inferential statistics:Inferential statistics will be used to analyse relationship between variables. This will include at least the following analysis (Chi-square, Pearson’sr,t-test, ANOVA test).


6. Discussion and managerial advises: link your findings to extant literature. Advise the management about the usefulness of the findings.


7. Limitations and directions for future research. Suggestions of how the research can be improved.


8. Include a correctly constructed reference list of all sources used in the project, not just those used in the literature review section. Appendices also should be attached which will include all the analysis and graphs etc. that are not included in the body of the report.


References


Christmann, P., & Taylor, G. (2006). Firm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation.Journal of International Business Studies, 37(6), 863-878.


Du, Y. Z., Yin, J. L., & Zhang, Y. L. (2016). How innovativeness and institution affect ISO 9000 adoption and its effectiveness: evidence from small and medium enterprises in China.Total Quality Management & Business Excellence, 27(11-12), 1315-1331. doi:10.1080/14783363.2015.1075874


Fikru, M. G. (2014a). Firm Level Determinants of International Certification: Evidence from Ethiopia.World Development, 64, 286-297. doi:10.1016/j.worlddev.2014.06.016


Fikru, M. G. (2014b). International certification in developing countries: The role of internal and external institutional pressure.Journal of Environmental Management, 144, 286-296. doi:10.1016/j.jenvman.2014.05.030


Fikru, M. G. (2016). Determinants of International Standards in sub-Saharan Africa: The role of institutional pressure from different stakeholders.Ecological Economics, 130, 296-307. doi:10.1016/j.ecolecon.2016.08.007


Nakamura, M., Takahashi, T., & Vertinsky, I. (2001). Why Japanese firms choose to certify: A study of managerial responses to environmental issues.Journal of Environmental Economics and Management, 42(1), 23-52. doi:10.1006/jeem.2000.1148


Pekovic, S. (2010). The Determinants of ISO 9000 Certification: A Comparison of the Manufacturing and Service Sectors.Journal of Economic Issues (Taylor & Francis Ltd), 44(4), 895-914. doi:10.2753/JEI0021-3624440403


Wu, S. Y., Chu, P. Y., & Liu, T. Y. (2007). Determinants of a firm's ISO 14001 certification: An empirical study of Taiwan.Pacific Economic Review, 12(4), 467-487. doi:10.1111/j.1468-0106.2007.00365.x

Answered Same DayMay 28, 2020

Answer To: Determinants of the adoption ofISO9000 and its impact on firm performance The ISO 9000 series of...

Pooja answered on May 30 2020
134 Votes
Executive Summary
Chi-square test of Independence is applied to test the independence of certification and overseas investment. Pearson Correlation Coefficient is applied to know the strength and direction of the linear relationship between return on sales and return on asset. The technique of regression analysis is helpful
to predict the return on sales on the basis of age of the company and percentage of overseas investment in the total investment.
Table of Contents
Executive Summary    1
Introduction    3
Literature review    4
Methodology    5
Analyses    6
Descriptive statistics    6
Inferential statistics    10
Chi-square test:    10
Pearson correlation test:    11
Regression analysis:    12
Recommendation    14
Limitation    15
References    16
Introduction
The two variables of concern are returns on sales and return on asset. Other variables of concern are if the company has certification, whether the company has overseas investment, the age of the company, and Percentage of overseas investment in the total investment.
It is an important area of concern to test if the type of certification (either yes or no) and type of overseas investment (either yes or no) are independent of each other. The strength and direction of the linear relationship between the returns on sale and asset of a company are determined with the help of value of correlation coefficient. The dependent variable is the return on sales. Return on sales is predicted on the basis of various independent variables namely age of the company and percentage of overseas investment in the total investment.
Literature review
The ISO 9000 series was introduced in 1987 and has been used widely globally in the quality management system. Approximately 1,129,000 facilities in 189 countries have adopted ISO 9000 by the year 2013. Economic Census of the service firms was conducted by National Bureau of statistics of China in 2008.
Methodology
Certifications and Overseas investment are measured by the nominal scale of measurement. Certification has two categories of either yes or no. Overseas investment also has only two categories either yes or no. Chi-square test of Independence is used to test the independence of certification and overseas investment.
Return on sales and return on assets is measured by the ratio scale of measurement. Both these variables are continuous variables. Pearson Correlation Coefficient is used to test the strength of linear relationship between return on sales and return on asset.
The regression analysis is used to predict the return on sales with the help of age of company in years and percentage of overseas investment in the total investment. The expected regression equation is in the form of return on sales = bo-b1*percentage of FDI-b2* age of the company. The value of slope tells the change in the dependent variable with one unit is used in the independent variable.
Analyses
Descriptive statistics
The descriptive statistics for return on sales, return on asset, the percentage of FDI, and age of company in years is summarized in the table below.
    Descriptives
    
    Statistic
    Std. Error
    return on sales
    Mean
    .1911
    .00164
    
    95% Confidence Interval for Mean
    Lower Bound
    .1879
    
    
    
    Upper Bound
    .1943
    
    
    5% Trimmed...
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