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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...

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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 XXXXXXXXXXFirm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation.Journal of International Business Studies, 37(6), XXXXXXXXXX.

Du, Y. Z., Yin, J. L., & Zhang, Y. L XXXXXXXXXXHow 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), XXXXXXXXXXdoi:10.1080/ XXXXXXXXXX1075874

Fikru, M. G. (2014a). Firm Level Determinants of International Certification: Evidence from Ethiopia.World Development, 64, XXXXXXXXXXdoi:10.1016/j.worlddev XXXXXXXXXX

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

Fikru, M. G XXXXXXXXXXDeterminants of International Standards in sub-Saharan Africa: The role of institutional pressure from different stakeholders.Ecological Economics, 130, XXXXXXXXXXdoi:10.1016/j.ecolecon XXXXXXXXXX

Nakamura, M., Takahashi, T., & Vertinsky, I XXXXXXXXXXWhy Japanese firms choose to certify: A study of managerial responses to environmental issues.Journal of Environmental Economics and Management, 42(1), XXXXXXXXXXdoi:10.1006/jeem XXXXXXXXXX

Pekovic, S XXXXXXXXXXThe Determinants of ISO 9000 Certification: A Comparison of the Manufacturing and Service Sectors.Journal of Economic Issues (Taylor & Francis Ltd), 44(4), XXXXXXXXXXdoi:10.2753/JEI XXXXXXXXXX

Wu, S. Y., Chu, P. Y., & Liu, T. Y XXXXXXXXXXDeterminants of a firm's ISO 14001 certification: An empirical study of Taiwan.Pacific Economic Review, 12(4), XXXXXXXXXXdoi:10.1111/j XXXXXXXXXX00365.x

Answered Same Day May 28, 2020

Solution

Pooja answered on May 30 2020
127 Votes
Executive Summary
Chi-square test of Independence is applied to test the independence of certification and overseas investment. Pearson Co
elation 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 co
elation 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 co
elation 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 Co
elation 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. E
o
    return on sales
    Mean
    .1911
    .00164
    
    95% Confidence Interval for Mean
    Lower Bound
    .1879
    
    
    
    Upper Bound
    .1943
    
    
    5% Trimmed...
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