Audit quality of outsourced information technology controls

2014 ◽  
Vol 29 (9) ◽  
pp. 837-862 ◽  
Author(s):  
Tatiana Mazza ◽  
Stefano Azzali ◽  
Luca Fornaciari
Keyword(s):  
Information Technology ◽  
Factor Analysis ◽  
Service Provider ◽  
Audit Quality ◽  
Service Providers ◽  
Ordinary Least Squares ◽  
Future Research ◽  
Direct Evaluation ◽  
Content Type ◽  
Private Data

Purpose – This paper aims to test the positive relationship between audit quality (AQ) of outsourced information technology controls (ITC) and information technology audit quality (ITAQ). Design/methodology/approach – Factor analysis, ordinary least squares (OLS) regressions and simulations. Findings – Scoping and planning phases of the audit cycle account for about 69 per cent of ITAQ. The AQ of outsourced ITC is strongly and directly related to ITAQ. Improvement of AQ of outsourced ITC may be achieved through evaluation of control design and operating effectiveness by service auditor as well as direct evaluation by the client in service provider location. Research limitations/implications – Sample size and input items in factor analysis. Practical implications – Companies and auditors could improve ITAQ through a better organization of the scoping and planning activities; they could also improve the AQ of outsourced ITC using direct evaluation in the service provider location supplemented with service auditor reports. Regulators could refine or change laws and frameworks to take into account the factors of ITAQ and the methodology of evaluation of outsourced ITC. Originality/value – Private data collected by questionnaire. The measures of ITAQ and the OLS model could be tested in future research, in countries with different frameworks and regulations related to AQ, different weight of outsourced information technology and other characteristics related to clients, service providers and service auditors.

LGBTQ and religious identity conflict in service settings

2017 ◽  
Vol 31 (4/5) ◽  
pp. 351-361 ◽  
Author(s):  
Elizabeth A. Minton ◽  
Frank Cabano ◽  
Meryl Gardner ◽  
Daniele Mathras ◽  
Esi Elliot ◽  
...  
Keyword(s):  
Public Policy ◽  
Service Provider ◽  
Religious Identity ◽  
Religious Freedom ◽  
Service Providers ◽  
Social Groups ◽  
Future Research ◽  
Identity Conflict ◽  
Content Type ◽  
The Usa

Purpose The USA is witnessing a conflict between LGBTQ (lesbian, gay, bisexual, transgender and queer) consumers/supporters and Christian fundamentalist service providers/opponents regarding whether service can be denied based on religious values. The purpose of this paper is to make a timely investigation into this conflict between marketplace inclusion (for LGBTQ consumers) and freedom of religion (for religious service providers). Design/methodology/approach The intersection of marketplace inclusion for LGBTQ consumers and religious freedom for service providers is examined by identifying appropriate strategies that address this conflict and reviewing how differing religious perspectives influence perceptions of LGBTQ consumer rights, all building off the social identity threat literature. Findings LGBTQ and religious identities often conflict to influence consumer behavior and service provider interactions. Such conflict is heightened when there is a lack of substitutes (i.e. only one service provider in an area for a specific service). Common LGBTQ consumer responses include changing service providers, providing justification for the provision of services and pursing legal recourse. Suggested strategies to address this conflict include highlighting common social identities and using two-sided messages for service providers, using in-group interventions for social groups and using government interventions for public policy. Originality/value Research has yet to examine the conflict between marketplace inclusion and religious freedom, particularly for the inclusion of LGBTQ consumers. Thus, this paper provides a novel conceptual model detailing these relationships to stimulate discussion among consumers, service providers, social groups and public policy in addition to serving as a foundation for future research.

Domestic versus offshore service providers

2015 ◽  
Vol 26 (4) ◽  
pp. 608-624 ◽  
Author(s):  
Andrew M. Forman ◽  
Shawn Thelen ◽  
Terri Shapiro
Keyword(s):  
Service Provider ◽  
Repeated Measures ◽  
Service Providers ◽  
Domestic Service ◽  
Future Research ◽  
Content Type ◽  
Research Results ◽  
Trade Offs ◽  
The Cost

Purpose – Prior research has determined that consumers are opposed to services offshoring. The purpose of this paper is to determine the likelihood that consumers would choose a domestic vs an offshore service provider if asked to pay more, wait longer, or sacrifice service quality. Design/methodology/approach – The cost, time to wait, and quality of services provided (for two different services: taxes and customer service) were varied to determine respondent likelihood to choose a domestic as opposed to an offshore service provider when asked to pay more, wait longer, or sacrifice the quality of the service in return for access to a domestic service provider. Data were collected via survey research, using an internet panel. Findings – Results of repeated measures analysis indicated that customer loyalty to the domestic service provider significantly decreased as the cost or time to interact with a domestic service provider increased or the quality of service provided by the offshore service provider increased. Research limitations/implications – The research results signify that while customers, in general, may be opposed to services offshoring, they will “defect” or show less loyalty to the domestic service provider when asked to sacrifice time or money for that access. Respondents were asked to react to each trade-off as individual factors. Future research might combine these factors to determine interrelated tradeoffs. Practical implications – The research results signify that while customers, in general, may be opposed to services offshoring, they will “defect” or show less loyalty to the domestic service provider when asked to sacrifice time or money for that access. Originality/value – The paper extends research with regard to consumer reaction to service offshoring and provides insight into the trade-offs consumers might be willing to incur in return for access to domestic service providers. The paper is of value to practitioners and academic researchers.

Consumer perspectives about mobile banking adoption in India – a cluster analysis

2017 ◽  
Vol 35 (4) ◽  
pp. 616-636 ◽  
Author(s):  
Deepak Chawla ◽  
Himanshu Joshi
Keyword(s):  
Cluster Analysis ◽  
Factor Analysis ◽  
Service Providers ◽  
Internet Banking ◽  
Equation Modeling ◽  
Mobile Users ◽  
Future Research ◽  
Mobile Banking ◽  
Content Type ◽  
Indian Consumers

Purpose The purpose of this paper is to identify which factors influence mobile banking adoption and examine those factors for segmentation, using a sample of Indian consumers. Design/methodology/approach In total, 59 statements were identified based on a literature review, focus group discussions and personal interviews. Exploratory factor analysis was conducted to identify the relevant factors. An online survey of 367 mobile phone users in India was conducted. Confirmatory factor analysis was conducted using structural equation modeling. Appropriate statistical techniques (hierarchical cluster analysis, k-means cluster analysis) were used to segment the users. A profile of each segment was developed based on demographics, mobile banking services used, and attitude and intentions toward mobile banking. Further, a post hoc test was used to test the variation between the obtained clusters and user attitudes and intentions toward mobile banking. The demographic characteristics of users within each cluster were also examined. Findings Mobile users were segmented into three clusters based on their perceptions of various factors influencing mobile banking. These segments were labeled as technology adoption (TA) leaders, TA followers and TA laggards. The results show that both attitude and intentions toward mobile banking significantly differs across the three segments. In terms of relative positioning, TA leaders have the most favorable attitudes and intentions followed by TA followers, and TA laggards. Age was found to significantly influence TA and usage. Research limitations/implications The findings of the study are based on responses from young, educated and salaried Indian consumers from large metro cities. Therefore, it is important to include respondents from smaller cities and towns to be able to generalize the findings. The sample is skewed toward users having accounts with private banks and hence, a balanced representation of respondents from public and private sector banks would help in identifying gaps pertaining to each sector. In future research, attempting to compare the results with other developing and developed countries may be beneficial. Practical implications The results offer service providers better knowledge about typical mobile banking user segments, providing banks with ideas for customizing their services to meet customer expectations. Originality/value This paper provides insights into factors that influence mobile banking adoption in India, which has not been investigated. In contrast to earlier studies conducted on internet banking, this study attempts to examine the perceptions, attitudes and intentions of mobile users. Although traditional TA models and theories of technology diffusion have been used, this study attempts to tailor the model specifically for mobile banking.

Leaving a joint audit system: conditional fee reductions

2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard
Keyword(s):  
Audit Quality ◽  
Theory Development ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Audit Firm ◽  
Audit System ◽  
Interaction Terms ◽  
Audit Firms ◽  
Audit Fee

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.

A model for managing service encounters for neo-luxury consumers

2016 ◽  
Vol 8 (1) ◽  
pp. 41-52 ◽  
Author(s):  
Bonnie Canziani ◽  
Kittichai Watchravesringkan ◽  
Jennifer Yurchisin
Keyword(s):  
Social Class ◽  
Brand Management ◽  
Service Providers ◽  
Future Research ◽  
Service Encounters ◽  
Theoretic Model ◽  
Luxury Brands ◽  
Content Type ◽  
Consumer Markets ◽  
Future Research Directions

Purpose – This paper aims to explore a theoretical relationship among perceptions of consumer social class, the perceived legitimacy of customer requests for service and the delivery of intangible services. It focuses the discussion on service firm encounters with non-traditional consumers seeking to purchase from luxury brands. Design/methodology/approach – The paper reviews the literature for current trends in strategies of luxury brands and characteristics of evolving global and Asian consumer markets for luxury and neo-luxury goods and draws a theoretic model with propositions. Findings – Evidence suggests that service providers can improve efforts to expand services to the newly rich and trading-up neo-luxury consumer markets by focusing on the intangible elements of the service delivery system. Particular emphasis is placed on enhancing employee treatment of neo-luxury customers during service encounters by understanding the influence of employee perceptions of consumer social class and evaluations of the perceived legitimacy of customer requests for service. Originality/value – The paper contributes to the theoretical discussion in luxury brand management by suggesting that employees are influenced by impressions of customer worth and other attributes when determining responses to customers during service encounters. Implications for practitioners and future research directions for academics based on the framework are presented.

Earnings management and audit quality at Damascus securities exchange: Does managerial ownership matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zukaa Mardnly ◽  
Zinab Badran ◽  
Sulaiman Mouselli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Audit Quality ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Managerial Ownership ◽  
External Audit ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to examine the individual and combined effect of managerial ownership and external audit quality, as two control mechanisms, on earnings management. Design/methodology/approach This study applies ordinary least squares estimates on fixed-time effects panel regression model to test the impact of the investigated variables on earnings management for the whole population of banks and insurance companies listed at Damascus Securities Exchange (DSE) during the period from 2011 to 2018. Findings The empirical evidence suggests a negative non-linear relationship between managerial ownership (as proxied by board of directors’ ownership) on earnings management. However, neither audit quality nor the simultaneous effect of the managerial ownership and audit quality (Big 4) affects earnings management. Research limitations/implications DSE is dominated by the financial sector and the number of observations is constrained by the recent establishment of DSE and the small number of firms listed at DSE. In addition, the non-availability of data on executive directors’ and foreign ownerships restrict our ability to uncover the impact of different dimensions of ownership structure on earnings management. Practical implications First, it stimulates investors to purchase stocks in financial firms that enjoy both high managerial ownership, as they seem enjoying higher earnings quality. Second, the findings encourage external auditors to consider the ownership structure when choosing their clients as the financial statements’ quality is affected by this structure. Third, researchers may need to consider the role of managerial ownership when analyzing the determinants of earnings management. Originality/value It fills the gap in the literature, as it investigates the impact of both managerial ownership and audit quality on earnings management in a special conflict context and in an unexplored emerging market of DSE. It suggests that managerial ownership exerts a significant role in controlling earnings management practices when loose regulatory environment combines conflict conditions. However, external audit quality fails to counter earnings management practices when conditions are fierce.

scholarly journals An evaluation of factors affecting the management of COVID-19 in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed S.M Sadrul Huda ◽  
Afsana Akhtar ◽  
Segufta Dilshad ◽  
Syeeda Raisa Maliha
Keyword(s):  
Health Care ◽  
Care Management ◽  
Service Providers ◽  
Care Service ◽  
Health Care Service ◽  
Health Care Management ◽  
Lessons Learned ◽  
Future Research ◽  
Content Type ◽  
The Social

PurposeThe study aims to gain insights into the management of COVID-19 in Bangladesh to identify the factors that are relevant to managing the pandemic in a developing country.Design/methodology/approachThe study was carried out by pursuing the archival method. The information was collected from credible newspaper reports over the previous months, as well as articles published on the subject of COVID-19.FindingsThe research revealed important and relevant dimensions of the health sector in managing the COVID-19 pandemic. The major factors were doctors, nurses (health service providers), patients, (customers) and society. This is a pioneering paper, which documents the major lessons learned from the management of COVID-19 in Bangladesh concerning three stakeholders of the health-care system, i.e. providers, patients and society. This paper covers the situation regarding the ongoing pandemic from three perspectives – provider, customers and society, and thus, may help to develop future research regarding the development of health-care management models for addressing the pandemic.Research limitations/implicationsThe major limitations of this paper is its over dependence on secondary sources for collecting the information.Practical implicationsThis paper presents the learnings from the pandemic in health-care management in different categories (e.g. social, doctor/nurse, patients), which can help the managers in understanding different dimensions of the health-care sector from different perspectives. The problems as well as the learnings stated in the paper can help the policy makers implement such strategies to ensure better delivery of the medical health-care service during a pandemic.Social implicationsThis paper clearly reveals the social dimensions of the COVID-19 by assessing the social aspects of COVID-19 management. Both social stigma and support are traced out during evaluating the situation. Thus, the social forces will be able to rethink about their role in addressing the social costs of pandemic.Originality/valueThis is a commentary piece.

Employing proactive interaction for service failure prevention to improve customer service experiences

2017 ◽  
Vol 27 (1) ◽  
pp. 164-186 ◽  
Author(s):  
Hyunju Shin ◽  
Alexander E. Ellinger ◽  
David L. Mothersbaugh ◽  
Kristy E. Reynolds
Keyword(s):  
Customer Service ◽  
Service Provision ◽  
Service Providers ◽  
Service Failure ◽  
Marketing Research ◽  
Theory And Practice ◽  
Future Research ◽  
Content Type ◽  
Failure Prevention ◽  
Patronage Behavior

Purpose Services marketing research continues to be largely focused on firms’ reactive interactions for recovering from service failure rather than on proactive customer interactions that may prevent service failure from occurring in the first place. Building on previous studies that assess the efficacy of implementing proactive interaction in service provision contexts, the purpose of this paper is to compare the influences of proactive interaction to prevent service failure and reactive interaction to correct service failure on customer emotion and patronage behavior. Since proactive interaction for service failure prevention is a relatively underexplored and resource-intensive approach, the authors also assess the moderating influences of customer and firm-related characteristics. Design/methodology/approach The study hypotheses are tested with survey data from two scenario-based experiments conducted in a retail setting. Findings The findings reveal that customers prefer service providers that take the initiative to get to them before they have to initiate contact for themselves. The findings also identify the moderating influences of relationship quality, situational involvement, and contact person status and motive. Originality/value The research contributes to the development of service provision theory and practice by expanding on previous studies which report that proactive efforts to prepare customers for the adverse effects of service failure are favorably received. The results also shed light on moderating factors that may further inform the exploitation of resource-intensive proactive interaction for service failure prevention. An agenda is proposed to stimulate future research on proactive customer interaction to prevent service failure in service provision contexts.

scholarly journals Multi‐dimensional nature of service innovation

2011 ◽  
Vol 31 (11) ◽  
pp. 1164-1192 ◽  
Author(s):  
Renu Agarwal ◽  
Willem Selen
Keyword(s):  
Factor Analysis ◽  
Empirical Data ◽  
Structural Equation ◽  
Service Innovation ◽  
Telecommunications Industry ◽  
Equation Model ◽  
Future Research ◽  
Extensive Literature ◽  
Service Network ◽  
Content Type

PurposeInnovation in services is thought to be multi‐dimensional in nature, and in this context the purpose of this paper is to present and operationalise the concept of “elevated service offerings” (ESO) in collaborating service organisations. ESO stands for new or enhanced service offerings which can only be eventuated as a result of partnering, and which could not be delivered on individual organisational merit. ESO helps us expand our understanding of service innovation to include a service network or service system's dimension.Design/methodology/approachA structural equation model is specified and estimated based on constructs and relationships grounded in the literature, as well as self‐developed constructs, using empirical data from 449 respondents in an Australian telecommunications service provider (SP) and its partnering organisations.FindingsResults show that ESO is a multi‐dimensional construct which was operationalised and validated through an extensive literature review, exploratory factor analysis, confirmatory factor analysis, and structural equation modelling using a holdout sample.Research limitations/implicationsQualitative and empirical data analysis was undertaken with data collected from a single large telecommunications SP organisation, and its partnering organisations. Future research may seek to collect data from the entire telecommunications industry sector and their partnering organisations, across other service sectors, or even any other organisation where collaboration is pivotal to their success.Practical implicationsService organisations today need to understand that innovation in services is not just about process or product innovation, or even performance and productivity improvements, but in fact includes organisational forms of innovation. Indeed, the interactions and complementarities between the three different aspects of ESO – strategic, productivity, and performance – highlight the increasing complex and multi‐dimensional character of innovation and the ongoing iterative process.Originality/valueThis research provides empirical evidence for the existence of a multi‐dimensional innovation in services construct – known as elevated service offerings in a collaborative service network, along with an adapted definition of service and a service innovation model.

The service recovery paradox in B2B relationships

2018 ◽  
Vol 33 (3) ◽  
pp. 291-302 ◽  
Author(s):  
Denis Hübner ◽  
Stephan M. Wagner ◽  
Stefan Kurpjuweit
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Future Research ◽  
Content Type ◽  
Subjective Perceptions ◽  
Service Recovery Paradox ◽  
Operating Level ◽  
B2b Relationships ◽  
Exploratory Model

Purpose This study aims to explore the service recovery paradox (SRP) in business to business (B2B) relationships. Previously, this phenomenon has been identified in consumer-facing industries. The research advances the marketing literature by highlighting the ways in which the antecedents of the service recovery paradox differ between B2B and consumer markets. Design/methodology/approach This research draws upon findings on the SRP in the consumer setting and service failure literature in business to consumer and B2B contexts. For the analysis, interview data were collected from 43 informants among clients and service providers in the aftermath of a service failure. Findings The authors propose an exploratory model of the SRP for B2B relationships. In the B2B setting the propensity of eliciting the SRP depends on (1) the characteristics of the service failure, (2) the attributes of the service recovery and (3) the shared subjective perceptions among boundary spanners. Practical implications Empowered operating-level employees, straightforward communication, immediate responses and action plans that ensure future conformance are the key factors to turn service failures into increased customer satisfaction. Originality/value This study is the first to transfer the SRP from consumer marketing into the B2B domain. Moreover, it derives an exploratory model of the SRP, which can be refined by future research.

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