Minimum quality standard regulation and entrepreneurial innovation

2019 ◽  
Vol 8 (2) ◽  
pp. 217-225 ◽  
Author(s):  
Bryan C. McCannon
Keyword(s):  
Product Quality ◽  
Quality Standards ◽  
Quality Standard ◽  
Content Type ◽  
Minimum Quality Standards ◽  
Entrepreneurial Innovation ◽  
The Impact ◽  
Standard Regulation ◽  
Minimum Quality

Purpose The purpose of this paper is to explore the impact that minimum quality standards have on product quality when entrepreneurial innovation is considered. Design/methodology/approach The author develops a game-theoretic model. It is a standard vertical product differentiation model, but incorporates a minimum quality standard and uncertain entrepreneurial innovation. Findings While the minimum quality standard increases the expected quality of the low-quality product, under reasonable circumstances the expected quality of the high-quality good decreases. Thus, average quality can decrease with regulation intended to increase product quality. Research limitations/implications Past research on minimum quality standards does not consider its impact on entrepreneurial effort when their innovation investments lead to uncertain outcomes. Practical implications Minimum quality standard regulation can have counterproductive impacts if the impact on entrepreneurs is not considered. The regulation can disincentivize entrepreneurs leading to lower quality products. Social implications Regulation can be welfare reducing. Originality/value This paper is the first to incorporate entrepreneurial innovation into a product quality model to explore the impact of minimum quality standard regulation.

Partial Adherence to Voluntary Quality Standards for Experience Goods

2016 ◽  
Vol 14 (1) ◽  
Author(s):  
Jason Winfree
Keyword(s):  
Food Quality ◽  
Food Industry ◽  
Quality Standards ◽  
Quality Standard ◽  
Free Riding ◽  
Experience Goods ◽  
Minimum Quality Standards ◽  
Partial Compliance ◽  
Collective Reputation ◽  
Minimum Quality

AbstractSince many types of food are experience goods and have a collective reputation, the food industry has various minimum quality standards. However, in the food industry, sometimes not all firms adhere to the standard, and consumers do not always distinguish between compliant and non-compliant firms. This paper finds that when there is only partial compliance, having a food quality standard or increasing compliance for the standard does not always increase profits for the firms adhering to the standard, even though average industry quality increases. Potential solutions to the free riding problem are analyzed.

Do high-quality standards ensure higher accounting quality? A study in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manish Bansal ◽  
Ashish Garg
Keyword(s):  
Value Relevance ◽  
Accounting Standards ◽  
Quality Standards ◽  
Discretionary Accruals ◽  
Accounting Quality ◽  
High Quality ◽  
Content Type ◽  
Earnings Smoothing ◽  
The Impact

Purpose The study aims to investigate the impact of International Financial Reporting Standards (IFRS)-converged standards (Indian Accounting Standards (INAS)) on the accounting quality of Indian firms. The phased manner approach of implementing INAS provides us a unique setting to investigate the issue in India. Design/methodology/approach The study used difference-in-difference (DiD) methodology, where the accounting quality is compared between test firms and benchmark firms during the pre-and post-INAS adoption period. Accounting quality is operationalized through four different constructs, namely, earnings smoothing, discretionary accruals, earnings timeliness and value relevance of earnings. Findings The findings deduced from the empirical results demonstrate that accounting quality has been significantly reduced after the adoption of INAS. In particular, results show that the degree of earnings smoothing, and the magnitude of discretionary accruals have been increased among test firms in the post-adoption year. Besides, findings provide evidence that timely recognition of losses and value relevance of earnings has been reduced for test firms relative to benchmark firms after the adoption of INAS. Practical implications The results suggest that the mere adoption of high-quality standards does not ensure higher accounting quality in countries with a weaker enforcement mechanism. Hence, stringent enforcement mechanisms are needed to ensure full compliance with accounting standards. This study serves as a case study for other emerging countries that are in the process of IFRS convergence and make them aware of the unintended consequences of IFRS adoption. Originality/value Indian authorities implemented INAS in a phased manner that provides a unique setting to use DiD methodology. DiD helps to control the impact of concurrent economic shocks, while examining the impact of the particular regulatory shock. Besides, this is the first attempt to investigate the impact of INAS on the accounting quality of Indian firms.

Effect of country image and materialism on the quality evaluation of Korean products

2019 ◽  
Vol 32 (2) ◽  
pp. 386-405 ◽  
Author(s):  
Byoungho Ellie Jin ◽  
Naeun Lauren Kim ◽  
Heesoon Yang ◽  
Minji Jung
Keyword(s):  
Product Quality ◽  
Online Survey ◽  
Quality Evaluation ◽  
Developed Countries ◽  
Country Image ◽  
Content Type ◽  
The Usa ◽  
Managerial Implications ◽  
The Impact

Purpose It is critical to understand how global consumers evaluate the quality of Asian products while marketing Asian products in the global marketplaces. The purpose of this paper is to examine the impact of Korea’s macro and micro country image and global consumers’ materialism level on the quality evaluation of Korean cosmetics among consumers in four countries. Design/methodology/approach Data from 900 participants were collected from consumers aged 20 or older living in economically developed countries (the USA and France) and economically developing countries (China and Vietnam) via professional online survey firms. Multiple regression analyses were used to analyze the data. Findings Along with the direct effect of macro and micro country image and materialism on product quality evaluation, a moderating effect of materialism and the respective country was discovered. Subsequently, the effect of macro country image on quality evaluation was found to be only significant in the USA and France and not in China and Vietnam. In contrast, the impact of micro country image was robust across all four countries. Furthermore, the effect of materialism on product quality was significant only in Vietnam. This implies that materialistic consumers in emerging markets might have favorable perceptions regarding the quality of Korean cosmetics. Originality/value This study advances country image research by providing new theoretical and managerial implications for countries whose image is less distinctive with respect to the effective marketing of products by the destination countries’ development status and consumers’ familiarity.

scholarly journals Research & Development Practices Across Pakistan: An Evaluation Study on Affiliated Institutions

2021 ◽  
Vol VI (II) ◽  
pp. 101-111
Author(s):  
Allah Wasaya Babar ◽  
Muhammad Shakir ◽  
Afaf Manzoor
Keyword(s):  
Higher Education ◽  
Quality Standards ◽  
Evaluation Study ◽  
Vital Role ◽  
Skilled Workers ◽  
Minimum Quality Standards ◽  
Quality Of Higher Education ◽  
Multistage Sampling ◽  
Minimum Quality

Higher education plays a vital role in developing the knowledge economy and producing skilled workers to empower human resources for the country. Like many other developing countries, Pakistan is struggling hard to improve the quality of higher education for sustainable development and participation in global progress. Since the last decade, Higher Education Commission Pakistan is committed to upgrading the quality of education, and for this purpose, HEC has designed Minimum Quality Standards (MQS) to assure quality for affiliated institutions. The main objective of the study was to evaluate R&D practices in affiliated institutions of Pakistan. The study was descriptive in nature, and a questionnaire based on Minimum Quality Standards was used to collect data from faculty members (n-168) of 28 affiliated institutions by using multistage sampling. The results indicated that affiliated colleges of two provinces, Punjab and Khyber Pohutukawa, were better in research and development practices than the institutions of Sindh and Baluchistan.

Vertically Linked Industries, Product Quality and Minimum Quality Standards

2016 ◽  
Vol 17 (1) ◽  
pp. 92-103
Author(s):  
Annette Hofmann ◽  
Gunnar Oldehaver
Keyword(s):  
Product Differentiation ◽  
Bargaining Power ◽  
Vertical Structure ◽  
Quality Standards ◽  
Quality Standard ◽  
Free Rider ◽  
Vertical Product Differentiation ◽  
Minimum Quality Standards ◽  
Vertical Chain ◽  
Minimum Quality

Abstract This paper extends the seminal model of vertical product differentiation by Ronnen (1991) to a two-tier supply chain. While Ronnen considers the duopoly case, we add a vertical structure such that each downstream firm procures an input from a monopolistic upstream supplier. While simultaneous up- and downstream regulation in the form of a minimum quality standard restores Ronnen’s findings, if only one firm is regulated in the vertical chain, a free-rider effect results: all the bargaining power is given to the non-regulated member of the chain, which uses it to free-ride on the pressure exerted by the regulator onto the other member.

Do disclosure and transparency affect bank’s financial performance?

2019 ◽  
Vol 19 (6) ◽  
pp. 1344-1361
Author(s):  
Isaiah Oino
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Financial Institutions ◽  
Content Type ◽  
Loan Portfolios ◽  
Cent Level ◽  
Transparency And Disclosure ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of transparency and disclosure on the financial performance of financial institutions. The emphasis is on assessing transparency and disclosure; auditing and compliance; risk management as indicators of corporate governance; and understanding how these parameters affect bank profitability, liquidity and the quality of loan portfolios. Design/methodology/approach A sample of 20 financial institutions was selected, with ten respondents from each, yielding a total sample size of 200. Principal component analysis (PCA), with inbuilt ability to check for composite reliability, was used to obtain composite indices for the corporate governance indicators as well as the indicators of financial performance, based on a set of questions framed for each institution. Findings The analysis demonstrates that greater disclosure and transparency, improved auditing and compliance and better risk management positively affect the financial performance of financial institutions. In terms of significance, the results show that as the level of disclosure and transparency in managerial affairs increases, the performance of financial institutions – as measured in terms of the quality of loan portfolios, liquidity and profitability – increases by 0.3046, with the effect being statistically significant at the 1 per cent level. Furthermore, as the level of auditing and the degree of compliance with banking regulations increases, the financial performance of banks improves by 0.3309. Research limitations/implications This paper did not consider time series because corporate governance does not change periodically. Practical implications This paper demonstrates the importance of disclosure and transparency in managerial affairs because the performance of financial institutions, as measured in terms of loan portfolios, liquidity and profitability, increases by 0.4 when transparency and disclosure improve, with this effect being statistically significant at the 1 per cent level. Originality/value The use of primary data in assessing the impact of corporate governance on financial performance, instead of secondary data, is the primary novelty of this study. Moreover, PCA is used to assess the weight of the various parameters.

Evolution of top management’s understanding of product quality in Eastern Europe since the end of communism

2017 ◽  
Vol 29 (1) ◽  
pp. 82-100
Author(s):  
Svetoslav Georgiev ◽  
Emil Georgiev
Keyword(s):  
Eastern Europe ◽  
Product Quality ◽  
Quantitative Research ◽  
Business Performance ◽  
Research Approach ◽  
Senior Managers ◽  
Content Type ◽  
Doing Business ◽  
Using Data ◽  
The Impact

Purpose The purpose of this paper is to analyse the evolution of top management’s understanding of product quality in Bulgaria since the end of communism. The study examines three specific areas: top management’s understanding of the term “quality”; top management’s understanding of the relationship between quality and business performance; and top management’s understanding of the impact of job position on quality. Design/methodology/approach The paper relies on a quantitative research approach by using data from a survey of 186 companies in Bulgaria. Findings The paper suggests that senior managers in Bulgaria continue to base their understanding of “quality” on a single approach (*a characteristic of the communist era), with the product-based and the user-based approaches currently being the two most common ones. At the same time, surprisingly enough, this study claims that senior management in Bulgaria is currently well aware of the importance of quality as a dimension of firm’s competitiveness, and is also highly conscious of its roles’ impact on product quality. Research limitations/implications The results of this study are exclusively based on the case of Bulgaria and must be treated with caution in the case of other former communist states from the Central and Eastern Europe (CEE) region. Practical implications This paper has relevance for both managers and companies doing business in Eastern Europe. Originality/value This is the first paper to provide detailed analysis of the evolution of the understanding of “product quality” in CEE since the end of communism. Moreover, this paper applies, for the first time, Garvin’s five approaches to defining quality within a practical context.

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