Search results for: Audit quality
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 2997

Search results for: Audit quality

2937 Evaluating 8D Reports Using Text-Mining

Authors: Benjamin Kuester, Bjoern Eilert, Malte Stonis, Ludger Overmeyer

Abstract:

Increasing quality requirements make reliable and effective quality management indispensable. This includes the complaint handling in which the 8D method is widely used. The 8D report as a written documentation of the 8D method is one of the key quality documents as it internally secures the quality standards and acts as a communication medium to the customer. In practice, however, the 8D report is mostly faulty and of poor quality. There is no quality control of 8D reports today. This paper describes the use of natural language processing for the automated evaluation of 8D reports. Based on semantic analysis and text-mining algorithms the presented system is able to uncover content and formal quality deficiencies and thus increases the quality of the complaint processing in the long term.

Keywords: 8D report, complaint management, evaluation system, text-mining.

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2936 Video Quality Assessment Methods: A Bird’s-Eye View

Authors: P. M. Arun Kumar, S. Chandramathi

Abstract:

The proliferation of multimedia technology and services in today’s world provide ample research scope in the frontiers of visual signal processing. Wide spread usage of video based applications in heterogeneous environment needs viable methods of Video Quality Assessment (VQA). The evaluation of video quality not only depends on high QoS requirements but also emphasis the need of novel term ‘QoE’ (Quality of Experience) that perceive video quality as user centric. This paper discusses two vital video quality assessment methods namely, subjective and objective assessment methods. The evolution of various video quality metrics, their classification models and applications are reviewed in this work. The Mean Opinion Score (MOS) based subjective measurements and algorithm based objective metrics are discussed and their challenges are outlined. Further, this paper explores the recent progress of VQA in emerging technologies such as mobile video and 3D video.

Keywords: 3D-Video, no reference metric, quality of experience, video quality assessment, video quality metrics.

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2935 The Quality of Accounting Information of Private Companies in the Czech Republic

Authors: Kateřina Struhařová

Abstract:

The paper gives the evidence of quality of accounting information of Czech private companies. In general the private companies in the Czech Republic do not see the benefits of providing accounting information of high quality. Based on the research of financial statements of entrepreneurs and companies in Zlin region it was confirmed that the quality of accounting information differs among the private entities and that the major impact on the accounting information quality has the fact if the financial statements are audited as well as the size of the entity. Also the foreign shareholders and lenders have some impact on the accounting information quality.

Keywords: Accounting information quality, Financial Statements, Czech Republic.

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2934 Beyond Taguchi’s Concept of the Quality Loss Function

Authors: Atul Dev, Pankaj Jha

Abstract:

Dr. Genichi Taguchi looked at quality in a broader term and gave an excellent definition of quality in terms of loss to society. However the scope of this definition is limited to the losses imparted by a poor quality product to the customer only and are considered during the useful life of the product and further in a certain situation this loss can even be zero. In this paper, it has been proposed that the scope of quality of a product shall be further enhanced by considering the losses imparted by a poor quality product to society at large, due to associated environmental and safety related factors, over the complete life cycle of the product. Moreover, though these losses can be further minimized with the use of techno-safety interventions, the net losses to society however can never be made zero. This paper proposes an entirely new approach towards defining product quality and is based on Taguchi’s definition of quality.

Keywords: Existing concept, goal post philosophy, life cycle, proposed concept, quality loss function.

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2933 Quality Monitoring and Dynamic Pricing in Cold Chain Management

Authors: Myo Min Aung, Yoon Seok Chang, Woo Ram Kim

Abstract:

This paper presents a cold chain monitoring system which focuses on assessment of quality and dynamic pricing information about food in cold chain. Cold chain is composed of many actors and stages; however it can be seen as a single entity since a breakdown in temperature control at any stage can impact the final quality of the product. In a cold chain, the shelf life, quality, and safety of perishable food throughout the supply chain is greatly impacted by environmental factors especially temperature. In this paper, a prototype application is implemented to retrieve timetemperature history, the current quality and the dynamic price setting according to changing quality impacted by temperature fluctuations in real-time.

Keywords: Cold chain, monitoring, quality, temperature, traceability.

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2932 A New Categorization of Image Quality Metrics Based On a Model of Human Quality Perception

Authors: Maria Grazia Albanesi, Riccardo Amadeo

Abstract:

This study presents a new model of the human image quality assessment process: the aim is to highlightthe foundations of the image quality metrics proposed in literature, by identifyingthe cognitive/physiological or mathematical principles of their development and the relation with the actual human quality assessment process. The model allows to createa novel categorization of objective and subjective image quality metrics. Our work includes an overview of the most used or effectiveobjective metrics in literature, and, for each of them, we underline its main characteristics, with reference to the rationale of the proposed model and categorization. From the results of this operation, we underline a problem that affects all the presented metrics: the fact that many aspects of human biasesare not taken in account at all. We then propose a possible methodology to address this issue.

Keywords: Eye-Tracking, image quality assessment metric, MOS, quality of user experience, visual perception.

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2931 An Evaluation of ISO 9001:2008 and ISO 9001:2015 Standard Changes in Quality Management System

Authors: Filiz Ersoz, Deniz Merdin, Taner Ersoz

Abstract:

The objective of this study provides an insight into enterprises, who need to carry on their sustainability in harmony with the changing competition conditions, technology and laws, regarding the ISO 9001:2015. In the study, ISO 9001:2015, which is planned to be put in force and exists as a draft, was studied and its differences from the previous standard, ISO 9001:2008, were determined. To find out the differences, a survey was conducted among enterprises that implement a quality system. According to the findings obtained at the end of the study, it was observed that the enterprises attach importance to quality and follow the developments about quality management system, and they find the changes in the new draft document necessary.

Keywords: ISO 9001, quality, quality management system, quality revision.

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2930 An Investigation into the Potential of Industrial Low Grade Heat in Membrane Distillation for Freshwater Production

Authors: Yehia Manawi, Ahmad Kayvani Fard

Abstract:

Membrane distillation is an emerging technology which has been used to produce freshwater and purify different types of aqueous mixtures. Qatar is an arid country where almost 100% of its freshwater demand is supplied through the energy-intensive thermal desalination process. The country’s need for water has reached an all-time high which stipulates finding an alternative way to augment freshwater without adding any drastic affect to the environment. The objective of this paper was to investigate the potential of using the industrial low grade waste heat to produce freshwater using membrane distillation. The main part of this work was conducting a heat audit on selected Qatari chemical industries to estimate the amounts of freshwater produced if such industrial waste heat were to be recovered. By the end of this work, the main objective was met and the heat audit conducted on the Qatari chemical industries enabled us to estimate both the amounts of waste heat which can be potentially recovered in addition to the amounts of freshwater which can be produced if such waste heat were to be recovered.

By the end, the heat audit showed that around 605 Mega Watts of waste heat can be recovered from the studied Qatari chemical industries which resulted in a total daily production of 5078.7 cubic meter of freshwater.

This water can be used in a wide variety of applications such as human consumption or industry. The amount of produced freshwater may look small when compared to that produced through thermal desalination plants; however, one must bear in mind that this water comes from waste and can be used to supply water for small cities or remote areas which are not connected to the water grid. The idea of producing freshwater from the two widely-available wastes (thermal rejected brine and waste heat) seems promising as less environmental and economic impacts will be associated with freshwater production which may in the near future augment the conventional way of producing freshwater currently being thermal desalination. This work has shown that low grade waste heat in the chemical industries in Qatar and perhaps the rest of the world can contribute to additional production of freshwater using membrane distillation without significantly adding to the environmental impact.

Keywords: Membrane distillation, desalination, heat recovery, environment.

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2929 Total Quality Management: The Socio- Demographic and Operational-Financial Determinants for Users- Perception of the Services Quality

Authors: H. Silvestre

Abstract:

The aim of this paper is to know the sociodemographic and operational-financial determinants of the services quality perceived by users of the national health services. Through the use of an inquiry conducted by the Ministry of Health, comprehending 16.936 interviews in 2006, we intend to find out if there is any characteristic that determines the 2006 inquiry results. With the revision of the literature we also want to know if the operational-financial results have implications in hospitals users- perception on the quality of the received services. In order to achieve our main goals we will make use of the regression analysis to find out the possible dimensions that determine those results.

Keywords: Management by Results, Quality Approach, Tableau de Bord, Total Quality Management, Services quality.

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2928 Quality Culture Framework Proposal for Libyan Industrial Companies

Authors: Mostafa Ahmed Shokshok

Abstract:

Libyan industrial companies face many challenges in today's competitive market. Quality management culture approaches is one of these challenges which may furnish the road to the Libyan industrial companies to effectively empower their employees and improve their ability to respond to the international competition. The primary objective of this paper is to design a practical approach to guide Libyan industrial companies toward successful quality culture implementation.

Keywords: Libyan manufacturing industries, TQM, Quality culture, Quality framework.

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2927 A New Precautionary Method for Measurement and Improvement the Data Quality

Authors: Seyed Mohammad Hossein Moossavizadeh, Mehran Mohsenzadeh, Nasrin Arshadi

Abstract:

the data quality is a kind of complex and unstructured concept, which is concerned by information systems managers. The reason of this attention is the high amount of Expenses for maintenance and cleaning of the inefficient data. Such a data more than its expenses of lack of quality, cause wrong statistics, analysis and decisions in organizations. Therefor the managers intend to improve the quality of their information systems' data. One of the basic subjects of quality improvement is the evaluation of the amount of it. In this paper, we present a precautionary method, which with its application the data of information systems would have a better quality. Our method would cover different dimensions of data quality; therefor it has necessary integrity. The presented method has tested on three dimensions of accuracy, value-added and believability and the results confirm the improvement and integrity of this method.

Keywords: Data quality, precaution, information system, measurement, improvement.

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2926 Are XBRL-based Financial Reports Better than Non-XBRL Reports? A Quality Assessment

Authors: Zhenkun Wang, Simon S. Gao

Abstract:

Using a scoring system, this paper provides a comparative assessment of the quality of data between XBRL formatted financial reports and non-XBRL financial reports. It shows a major improvement in the quality of data of XBRL formatted financial reports. Although XBRL formatted financial reports do not show much advantage in the quality at the beginning, XBRL financial reports lately display a large improvement in the quality of data in almost all aspects. With the improved XBRL web data managing, presentation and analysis applications, XBRL formatted financial reports have a much better accessibility, are more accurate and better in timeliness.

Keywords: Data Quality; Financial Report; Information; XBRL

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2925 Effectiveness of Software Quality Assurance in Offshore Development Enterprises in Sri Lanka

Authors: Malinda G. Sirisena

Abstract:

The aim of this research is to evaluate the effectiveness of software quality assurance approaches of Sri Lankan offshore software development organizations, and to propose a framework which could be used across all offshore software development organizations.

An empirical study was conducted using derived framework from popular software quality evaluation models. The research instrument employed was a questionnaire survey among thirty seven Sri Lankan registered offshore software development organizations.

The findings demonstrate a positive view of Effectiveness of Software Quality Assurance – the stronger predictors of Stability, Installability, Correctness, Testability and Changeability. The present study’s recommendations indicate a need for much emphasis on software quality assurance for the Sri Lankan offshore software development organizations.

Keywords: Software Quality Assurance (SQA), Offshore Software Development, Quality Assurance Evaluation Models, Effectiveness of Quality Assurance.

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2924 A Framework for Ranking Quality of Information on Weblog

Authors: Mohammad Javad Kargar, Fatemeh Azimzadeh

Abstract:

The vast amount of information on the World Wide Web is created and published by many different types of providers. Unlike books and journals, most of this information is not subject to editing or peer review by experts. This lack of quality control and the explosion of web sites make the task of finding quality information on the web especially critical. Meanwhile new facilities for producing web pages such as Blogs make this issue more significant because Blogs have simple content management tools enabling nonexperts to build easily updatable web diaries or online journals. On the other hand despite a decade of active research in information quality (IQ) there is no framework for measuring information quality on the Blogs yet. This paper presents a novel experimental framework for ranking quality of information on the Weblog. The results of data analysis revealed seven IQ dimensions for the Weblog. For each dimension, variables and related coefficients were calculated so that presented framework is able to assess IQ of Weblogs automatically.

Keywords: Information Quality, Weblog, Web Ranking, Web- Quality.

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2923 Performance Comparison of a Low Cost Air Quality Sensor with a Commercial Electronic Nose

Authors: Ünal Kızıl, Levent Genç, Sefa Aksu, Ahmet Tapınç

Abstract:

The Figaro AM-1 sensor module which employs TGS 2600 model gas sensor in air quality assessment was used. The system was coupled with a microprocessor that enables sensor module to create warning message via telephone. This low cot sensor system’s performance was compared with a DiagNose II commercial electronic nose system. Both air quality sensor and electronic nose system employ metal oxide chemical gas sensors. In the study experimental setup, data acquisition methods for electronic nose system, and performance of the low cost air quality system were evaluated and explained.

Keywords: Air quality, electronic nose, environmental quality, gas sensor.

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2922 Customer Loyalty and the Impacts of Service Quality:The Case of Five Star Hotels in Jordan

Authors: Al-Rousan, M. Ramzi, Badaruddin Mohamed

Abstract:

In the present Jordan hotels scenario, service quality is a vital competitive policy to keep customer support and build great base. Hotels are trying to win customer loyalty by providing enhanced quality services. This paper attempts to examine the impact of tourism service quality dimension in the Jordanian five star hotels. A total of 322 surveys were administrated to tourists who were staying at three branches Marriott hotel in Jordan. The results show that dimensions of service quality such as empathy, reliability, responsiveness and tangibility significantly predict customer loyalty. Specifically, among the dimension of tourism service quality, the most significant predictor of customer loyalty is tangibility. This paper implies that five star hotels in Jordan should also come forward and try their best to present better tourism service quality to win back their customers- loyalty.

Keywords: Tourism, Service Quality, Loyalty, Five Star hotels, Jordan.

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2921 Information Quality Evaluation Framework: Extending ISO 25012 Data Quality Model

Authors: Irfan Rafique, Philip Lew, Maissom Qanber Abbasi, Zhang Li

Abstract:

The world wide web coupled with the ever-increasing sophistication of online technologies and software applications puts greater emphasis on the need of even more sophisticated and consistent quality requirements modeling than traditional software applications. Web sites and Web applications (WebApps) are becoming more information driven and content-oriented raising the concern about their information quality (InQ). The consistent and consolidated modeling of InQ requirements for WebApps at different stages of the life cycle still poses a challenge. This paper proposes an approach to specify InQ requirements for WebApps by reusing and extending the ISO 25012:2008(E) data quality model. We also discuss learnability aspect of information quality for the WebApps. The proposed ISO 25012 based InQ framework is a step towards a standardized approach to evaluate WebApps InQ.

Keywords: Data Quality Model, Information learnability, Information Quality, Web applications.

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2920 Tracing Quality Cost in a Luggage Manufacturing Industry

Authors: S. B. Jaju, R. R. Lakhe

Abstract:

Quality costs are the costs associated with preventing, finding, and correcting defective work. Since the main language of corporate management is money, quality-related costs act as means of communication between the staff of quality engineering departments and the company managers. The objective of quality engineering is to minimize the total quality cost across the life of product. Quality costs provide a benchmark against which improvement can be measured over time. It provides a rupee-based report on quality improvement efforts. It is an effective tool to identify, prioritize and select quality improvement projects. After reviewing through the literature it was noticed that a simplified methodology for data collection of quality cost in a manufacturing industry was required. The quantified standard methodology is proposed for collecting data of various elements of quality cost categories for manufacturing industry. Also in the light of research carried out so far, it is felt necessary to standardise cost elements in each of the prevention, appraisal, internal failure and external failure costs. . Here an attempt is made to standardise the various cost elements applicable to manufacturing industry and data is collected by using the proposed quantified methodology. This paper discusses the case study carried in luggage manufacturing industry.

Keywords: Quality Costs, PAF model, quantified methodology, Case study.

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2919 Development of Sleep Quality Index Using Heart Rate

Authors: Dongjoo Kim, Chang-Sik Son, Won-Seok Kang

Abstract:

Adequate sleep affects various parts of one’s overall physical and mental life. As one of the methods in determining the appropriate amount of sleep, this research presents a heart rate based sleep quality index. In order to evaluate sleep quality using the heart rate, sleep data from 280 subjects taken over one month are used. Their sleep data are categorized by a three-part heart rate range. After categorizing, some features are extracted, and the statistical significances are verified for these features. The results show that some features of this sleep quality index model have statistical significance. Thus, this heart rate based sleep quality index may be a useful discriminator of sleep.

Keywords: Sleep, sleep quality, heart rate, statistical analysis.

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2918 The Impact of Fish Cages on Water Quality in One Fish Farm in Croatia

Authors: G. Jelic Mrcelic, M. Sliskovic

Abstract:

In Croatia, the majority of cultured marine fish species are reared in net cages. The intensive production of the fish in net cages may generate the considerable amount of bio waste and change water quality especially in enclosed and semi-enclosed coastal areas. The aim of this paper is to assess the potential impact of sea bass (Dicentrarchus labrax L.) cage farm on water quality. The weak relationship between food supply and water quality parameters (nutrient content and phytoplankton biomass) was found, but significant changes in oxygen saturation was observed in the cages during the warmer period of a year especially in the morning (occasionally it dropped below 70 %). Despite of, satisfactory results of water quality parameters, it is necessary to establish comprehensive monitoring process, especially to include quality assessment of fouling communities.

Keywords: Mariculture, monitoring, fish cages, water quality parameters.

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2917 Runoff Quality and Pollution Loading from a Residential Catchment in Miri, Sarawak

Authors: Carrie Ho, Choo Bo Quan

Abstract:

Urban non-point source (NPS) pollution for a residential catchment in Miri, Sarawak was investigated for two storm events in 2011. Runoff from two storm events were sampled and tested for water quality parameters including TSS, BOD5, COD, NH3-N, NO3-N, NO2-N, P and Pb. Concentration of the water quality parameters was found to vary significantly between storms and the pollutant of concern was found to be NO3-N, TSS, COD and Pb. Results were compared to the Interim National Water Quality Standards for Malaysia (INWQS),and the stormwater runoff from the study can be classified as polluted, exceeding class III water quality, especially in terms of TSS, COD, and NH3-N with maximum EMCs of 158, 135, and 2.17 mg/L, respectively.

Keywords: Residential land-use, urban runoff, water quality.

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2916 Impact of Graduates’ Quality of Education and Research on ICT Adoption at Workplace

Authors: Mohammed A. Kafaji

Abstract:

This paper aims to investigate the influence of quality of education and quality of research, provided by local educational institutions, on the adoption of Information and Communication Technology (ICT) in managing business operations for companies in Saudi market. A model was developed and tested using data collected from 138 Chief Executive Officers (CEOs) of foreign companies in diverse business sectors. The data is analyzed and managed using multivariate approaches through standard statistical packages. The results showed that educational quality has little contribution to the ICT adoption while research quality seems to play a more prominent role. These results are analyzed in terms of business environment and market constraints and further extended to the perceived effectiveness of applied pedagogical approaches in schools and universities.

Keywords: Domestic Competition, Quality of Education, Quality of Research, ICT Adoption, Mediation.

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2915 The Evolution of Quality Improvement Methodology in Malaysia-s IT Industry: The Past, Current and Future

Authors: Whee Yen Wong, Kim Yeow Tshai, Chan Wai Lee

Abstract:

There are various approaches to implement quality improvements. Organizations aim for a management standard which is capable of providing customers with quality assurance on their product/service via continuous process improvement. Carefully planned steps are necessary to ensure the right quality improvement methodology (QIM) and business operations are consistent, reliable and truly meet the customers' needs. This paper traces the evolution of QIM in Malaysia-s Information Technology (IT) industry in the past, current and future; and highlights some of the thought of researchers who contributed to the science and practice of quality, and identifies leading methodologies in use today. Some of the misconceptions and mistakes leading to quality system failures will also be examined and discussed. This paper aims to provide a general overview of different types of QIMs available for IT businesses in maximizing business advantages, enhancing product quality, improving process routines and increasing performance earnings.

Keywords: Evolution, Integrating and Aligning, Malaysia's Quality Improvement Methodology, Six Sigma Data Quality Management.

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2914 Design of Coal Quality Disturbance Free System for Coordinated Control System Based on Gain Scheduling

Authors: Liu Ji-Wei, Pei Yu-Liang, Liu Qian, Han Xiang, Zeng De-Liang

Abstract:

The economic and stable operation was affected seriously by coal quality disturbance for power plants. Based on model analysis, influence of the disturbance can be considered as gain change of control system. Power capability coefficient of coal was constructed to inhibit it. Accuracy of the coefficient was verified by operating data. Then coal quality disturbance free system based on gain scheduling was designed for coordinated control system. Simulation showed that, the strategy improved control quality obviously, and inhibited the coal quality disturbance.

Keywords: coordinate control system, coal quality disturbance, energy coefficient of coal quality, gain scheduling

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2913 Towards Better Quality in Healthcare and Operations Management: A Developmental Literature Review

Authors: Towards Better Quality in Healthcare, Operations Management: A Developmental Literature Review

Abstract:

This work presents the various perspectives, dimensions, components and definitions given to quality in the operations management (OM) and healthcare services (HCS) literature in time, highlighting gaps and learning opportunities between the two disciplines through a thorough search into their rich and distinct body of knowledge. Greater and new insights about the general nature of quality are obtained with findings such as in OM, quality has been approached in six fairly distinct paradigms (excellence, value, conformity to specifications, attributes, satisfaction and meeting or exceeding customer expectations), whereas in HCS, two approaches are prominent (Donabedian’s structure, process and outcomes model and Lohr and Schroeder’s circumscribed definition). The two disciplines views on quality seem to have progressed much in parallel with little cross-learning from each other. This work then proposes an encompassing definition of quality as a lever and suggests further research and development avenues for a better use of the concept of quality by academics and practitioners alike toward the goals of greater organizational performance and improved management in healthcare and possibly other service domains.

Keywords: Healthcare, management, operations, quality, services.

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2912 Identifying Critical Success Factors for Data Quality Management through a Delphi Study

Authors: Maria Paula Santos, Ana Lucas

Abstract:

Organizations support their operations and decision making on the data they have at their disposal, so the quality of these data is remarkably important and Data Quality (DQ) is currently a relevant issue, the literature being unanimous in pointing out that poor DQ can result in large costs for organizations. The literature review identified and described 24 Critical Success Factors (CSF) for Data Quality Management (DQM) that were presented to a panel of experts, who ordered them according to their degree of importance, using the Delphi method with the Q-sort technique, based on an online questionnaire. The study shows that the five most important CSF for DQM are: definition of appropriate policies and standards, control of inputs, definition of a strategic plan for DQ, organizational culture focused on quality of the data and obtaining top management commitment and support.

Keywords: Critical success factors, data quality, data quality management, Delphi, Q-Sort.

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2911 Food Quality Labels and their Perception by Consumers in the Czech Republic

Authors: Sarka Velcovska

Abstract:

The paper deals with quality labels used in the food products market, especially with labels of quality, labels of origin, and labels of organic farming. The aim of the paper is to identify perception of these labels by consumers in the Czech Republic. The first part refers to the definition and specification of food quality labels that are relevant in the Czech Republic. The second part includes the discussion of marketing research results. Data were collected with personal questioning method. Empirical findings on 150 respondents are related to consumer awareness and perception of national and European food quality labels used in the Czech Republic, attitudes to purchases of labelled products, and interest in information regarding the labels. Statistical methods, in the concrete Pearson´s chi-square test of independence, coefficient of contingency, and coefficient of association are used to determinate if significant differences do exist among selected demographic categories of Czech consumers.

Keywords: Food quality labels, quality labels awareness, quality labels perception, marketing research.

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2910 Development of Performance Measures for the Implementation of Total Quality Management in Indian Industry

Authors: Perminderjit Singh, Sukhvir Singh

Abstract:

Total Quality Management (TQM) refers to management methods used to enhance quality and productivity in business organizations. Total Quality Management (TQM) has become a frequently used term in discussions concerning quality. Total Quality management has brought rise in demands on the organizations policy and the customers have gained more importance in the organizations focus. TQM is considered as an important management tool, which helps the organizations to satisfy their customers. In present research critical success factors includes management commitment, customer satisfaction, continuous improvement, work culture and environment, supplier quality management, training and development, employee satisfaction and product/process design are studied. A questionnaire is developed to implement these critical success factors in implementation of total quality management in Indian industry. Questionnaires filled by consulting different industrial organizations. Data collected from questionnaires is analyzed by descriptive and importance indexes. 

Keywords: Total quality management, critical success factor, employee satisfaction.

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2909 Monte Carlo Estimation of Heteroscedasticity and Periodicity Effects in a Panel Data Regression Model

Authors: Nureni O. Adeboye, Dawud A. Agunbiade

Abstract:

This research attempts to investigate the effects of heteroscedasticity and periodicity in a Panel Data Regression Model (PDRM) by extending previous works on balanced panel data estimation within the context of fitting PDRM for Banks audit fee. The estimation of such model was achieved through the derivation of Joint Lagrange Multiplier (LM) test for homoscedasticity and zero-serial correlation, a conditional LM test for zero serial correlation given heteroscedasticity of varying degrees as well as conditional LM test for homoscedasticity given first order positive serial correlation via a two-way error component model. Monte Carlo simulations were carried out for 81 different variations, of which its design assumed a uniform distribution under a linear heteroscedasticity function. Each of the variation was iterated 1000 times and the assessment of the three estimators considered are based on Variance, Absolute bias (ABIAS), Mean square error (MSE) and the Root Mean Square (RMSE) of parameters estimates. Eighteen different models at different specified conditions were fitted, and the best-fitted model is that of within estimator when heteroscedasticity is severe at either zero or positive serial correlation value. LM test results showed that the tests have good size and power as all the three tests are significant at 5% for the specified linear form of heteroscedasticity function which established the facts that Banks operations are severely heteroscedastic in nature with little or no periodicity effects.

Keywords: Audit fee, heteroscedasticity, Lagrange multiplier test, periodicity.

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2908 Technological Innovation Capabilities and Firm Performance

Authors: Richard C.M. Yam, William Lo, Esther P.Y. Tang, Antonio, K.W. Lau

Abstract:

Technological innovation capability (TIC) is defined as a comprehensive set of characteristics of a firm that facilities and supports its technological innovation strategies. An audit to evaluate the TICs of a firm may trigger improvement in its future practices. Such an audit can be used by the firm for self assessment or third-party independent assessment to identify problems of its capability status. This paper attempts to develop such an auditing framework that can help to determine the subtle links between innovation capabilities and business performance; and to enable the auditor to determine whether good practice is in place. The seven TICs in this study include learning, R&D, resources allocation, manufacturing, marketing, organization and strategic planning capabilities. Empirical data was acquired through a survey study of 200 manufacturing firms in the Hong Kong/Pearl River Delta (HK/PRD) region. Structural equation modelling was employed to examine the relationships among TICs and various performance indicators: sales performance, innovation performance, product performance, and sales growth. The results revealed that different TICs have different impacts on different performance measures. Organization capability was found to have the most influential impact. Hong Kong manufacturers are now facing the challenge of high-mix-low-volume customer orders. In order to cope with this change, good capability in organizing different activities among various departments is critical to the success of a company.

Keywords: Hong Kong/Pearl River Delta, Innovationaudit, Manufacturing, Technological innovation capability

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