Deli Depot BUACC5931 Assignment 2, Semester 2, 2017 Adoption of ISO9000 and its Relationship with other Factors in China’s Service Industry The ISO 9000 series of quality management systems standard...

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Deli Depot BUACC5931 Assignment 2, Semester 2, 2017 Adoption of ISO9000 and its Relationship with other Factors in China’s Service Industry 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 interested in understanding the relationship between adoption of ISO 9000, and other factors (Christmann & Taylor, 2006; Du, Yin, & Zhang, 2016; Fikru, 2014a, 2014b, 2016; Nakamura, Takahashi, & Vertinsky, 2001; Pekovic, 2010; Wu, Chu, & Liu, 2007) ADDIN EN.CITE . 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 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’s r, 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 3 BUACC 5931 Assignment 2 dataset Variables, their description and coding Table 1: Variables, their descriptions and coding No Variable name Description of the variable Coding Data type 1 Year Year the company certified 2004; 2005; 2006; 2007; 2008 nominal 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 5 Stpyear Year of the founding of the company Range from 1947 to 2006 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 0= without overseas investment 1= with overseas investment 24 agefirm Age of the company In years 1 Student id/Name: Marking Criteria Very Poor Poor Satisfactory Good Very good MARK Executive Summary · Major findings · Major recommendations 1 Comments: You could write key findings. Well written what you have done. Introduction · Background of the research · Research purpose · Research objectives (Research questions) 2 Comments: Well done Literature review · Quality · Relevance · Up to date · Number of sources 3 Comments: You could critically analyse literature review. Use quality and recent article Description of the methodology · measures · sampling method · procedure of data collection 1 Comments: Need to discuss sampling method and data collection Analyses and findings · Descriptive statistics · Inferential statistics 10 Comments: Only F-test and T-test are done in inferential statistics. Need to do other test like Chi-square, ANOVA, Correlation. Need to describe output clearly Discussion and managerial advise · Discussion · Advise to the management 1 Comments: Nothing is mentioned on advise to the management. Limitation and direction for future research · Suggestions for improvement 1 Comments: Need to suggest for improvement. Overall presentation/appearance of the report · Overall · English expression, free of spelling errors, · Citation and referencing 1 Comments: In class Presentation · Presentation content and quality · Style and appropriateness of presentation for a business situation 10 Total available marks - 30 30
Answered Same DayOct 05, 2021BUACC5931

Answer To: Deli Depot BUACC5931 Assignment 2, Semester 2, 2017 Adoption of ISO9000 and its Relationship with...

Shakeel answered on Oct 10 2021
152 Votes
Executive summary
ISO 9000 standard has positive impact on company’s performance and it has been proved in several empirical studies. In this paper, the Chinese companies are studied between 2004 and 2008 and found that those companies who have adopted ISO 9000 standards have significantly higher revenue and profit than companies who haven’t. However, overseas investment or government’s investment has no such significant relation with ISO certification of companies. Even, no significant difference in the investment patterns to both Certified and Non-certified companies. Education level of employees also doesn’t matter for Certified companies although it is important for Non-certified companies in getting the higher profitability positio
n to the business. Overall, it is concluded that ISO 9000 standards helps the business to improve its revenue and profit and company should adopt it.
Introduction
ISO 9000 is a set of internally accepted standards on quality management and quality assurance that company needs to apply on its business structure and operation activities to deliver quality products and services to its customers. “It provides a time-tested framework to help companies establish and follow a systematic approach for managing organizational processes for rendering consistent quality (Keen, 2020).” The ISO 9000 can be applied to any company or any size and value. It is not restricted to any specific Industry or sector. There are several motivational factors that affect the adoption of ISO 900 standards. Few of them are innovation and compatibility, competitive pressure, and environmental uncertainty, management’s system, formalization in business activities and organizational size (Hashem & Tann, 2007). Once, an organization adopts the ISO 9000 standards, its successful implementation poses big challenge to the company. Behaviour towards customers, Culture of organization, Satisfaction to employees, processes and procedures of operational activities and their measurement and monitoring are some of the major factors that affect the implementation effectiveness of ISO 9000 standards (Dharmasiri, 2010). In this paper, the Adoption of ISO9000 and its Relationship with other Factors in China’s Service Industry is studied. The objective of the study is as follows –
· To examine the relationship between ISO 9000 certification and company’s revenue and profit.
· To examine the relationship between ISO 9000 certification and overseas Investment
· To examine the investment pattern by overseas, government or others to both Certified and Non-certified companies.
Literature review
In past, several empirical studies have been conducted on adoption on ISO 9000 standards and its relationship with several factors – both company specific and external factors. Georgiev (2015) studied the motivation factors for the adoption of ISO 9000 standards in Eastern Europe and claimed that ‘Process improvement’ and ‘Product quality improvement’ are two major internal factors and the level of competitiveness and company’s image are two major external factors that prompts the company to adopt the ISO 900 standard. He also found a positive relationship between the motivation for and benefits of ISO 9000 certification. Vikas et al (2015) argues that Organizational culture, Top management commitment, Adequate financial resources, strategic planning, Customer satisfaction focus are some of the factors that compel the business to implement the ISO 900 Standards.
Yeung & Mok (2005) studied the impacts of implementing ISOs on the competitiveness of manufacturing industry in China and found that ISO 9000 Standards have both positive and negative effect on the competitiveness of the firm. In short term, companies experience negative impact of ISO 9000 Standards but in long run, the impact turns to be positive. Magd & Nabulsi (2012) studied the 100 firms in the UAE who have acquired the ISO 9000 certification and found the promotional reason as one of the most important driver for ISO 9000 implications. Strong believe in system/process approach and improving internal efficiency and fulfilling customers’ requirements are other major factors. Chen, Wu & Zhai (2019) investigated 89,024 companies from Chinese service Industry and studied the effect of ISO 9000 certification on the firm’s sales and profitability. He found the ISO 9000 certification does help to increase the total amount of sales, but it decreases the productivity and profitability of these certified service firms. Corbett et al (2005) tracked the financial performance from 1987 to 1997 of all publicly traded ISO 9000 certified manufacturing firms in the United States and found that the certified firms do display strongly significant abnormal performance. However, Heras et al (2002) found no significant improvement in the sales and profitability after ISO 9000 accreditation of companies in Spain. The impact of adoption of ISO 9000 on labour productively has also been extensively studied and most of the studied found a strong positive relationship between ISO 9000 accreditation and labour productivity (Parauraman, 2002 and Kynak, 2003). Grajek (2004) studied the relationship between ISO 9000 Standards and International trade and found that ISO 9000 certified firms do more trade and Investment with each other than uncertified firms. Similar study is also conducted by Clougherty & Grajek (2008) and found that ISO 9000 standards have ‘positively pull FDI’ and ‘positively push trade’ effect in developing nations.
Methodology
To proceed with study, more than 5,717 companies are selected between years 2004 and 2008 from eight different Industries mainly – Storage and transportation, Telecommunication, Computer service, Software, Business services, Research and Development, Specialized technology services and Technology exchange and promotion. Among the total selected companies, few got certified and few didn’t get certified. Further, several other variables related to size and age of company, number of employees and their qualification, Sales, profit and return figures from their Income statement, Investment and capital structure data of business from their Balance sheet are gathered. Then, different statistical tools like Correleation Matrix, Chi Square test, t-test, ANOVA and regression are used.
Data Analysis and Interpretation
Descriptive Statistics
In our analysis, around 5,717 Chinese companies from eight different Industries - Storage and transportation, Telecommunication, Computer service, Software, Business services, Research and Development, Specialized technology services and Technology exchange and promotion are analysed in which few are ISO 9000 certified and rest are not for the period 2004 – 2008. Among the total 5,717 companies, 460 companies are ISO 9000 certified while rest of 5,257 companies are not certified.
Industry wise distribution of companies – both certified and not certified are given in table 1 below –
Table 1: Industry wise company distribution
    Industry
    Certified
    Non- Certified
    Storage and Transportation
    14
    378
    Telecommunication
    4
    180
    Computer Services
    30
    335
    Software
    76
    314
    Business Services
    72
    2650
    Research and Development
    33
    189
    Specialized Technology Services
    219
    981
    Technology Exchange and Promotion
    12
    230
Those companies which are certified, the highest numbers of companies are from ‘Specialized...
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