Future research avenues of cost of quality: a systematic literature review

Dimitrantzou, Christina; Psomas, Evangelos; Vouzas, Fotios

doi:10.1108/tqm-09-2019-0224

Cited by 23 publications

(29 citation statements)

References 101 publications

(158 reference statements)

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“…This finding is consistent with the result of Rema (2014), clarifying that the importance of quality costing lies on the fact that they can improve internal performance and productivity, and was viewed as an effective way for a company to impact its bottom line. It is as discussed by Dimitrantzou et al (2020), in current business environment of increased globalization of markets and fierce competition, COQ constitutes a cost reduction tool and a source of profit that can enhance organizational competitive advantage. The above-submitted relationships have, therefore, allowed for the articulation of the following hypothesis: H1: There is a significant positive relationship between COQ practices and organizational performance of PFMC.…”

Section: This Is Whatmentioning

confidence: 99%

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

Ghunaim

Jaaron

2021

TQM

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PurposeDue to the ever-increasing competitive and complex business environments, food manufacturing companies have to maintain high-quality products while simultaneously minimizing customers' costs. Cost of quality (COQ) plays a crucial role in enhancing companies' efficiency and reducing expenditures that can contribute to companies' competitive performance. This paper investigates the underlying relationship between the level of COQ practices adoption (prevention, appraisal, internal and external failure costs) and organizational performance in Palestinian food manufacturing companies (PFMCs).Design/methodology/approachA quantitative research methodology using a structured questionnaire collected data from 119 PFMCs. Partial least squares structural equation modeling was used to analyze collected data.FindingsResults indicated that COQ adoption has a significant positive effect on the organizational performance of PFMCs. Besides, prevention, external and internal failure costs were all associated with a positive impact on organizational performance of PFMCs, whereas appraisal cost did not affect organizational performance.Originality/valueThis study is considered one of the first studies to investigate COQ practices' effect on organizational performance in food manufacturing companies in a developing country context. Thus, it adds significant value to the literature responding to calls to tackle competitiveness issues in current complex business environments.

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Section: This Is Whatmentioning

confidence: 99%

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

Ghunaim

Jaaron

2021

TQM

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“…As interest in TQM increased, interest in quality costs grew. In order to make a QMS functioning correctly, an enterprise needs to identify, document, analyze and optimize quality costs (Dimitrantzou et al , 2020; Malik et al , 2016; Yakup and Sevil, 2012; Kirlioğlu and Çevik, 2013). At present, quality costing is recognized as the most essential element of QMS.…”

Section: Literature Researchmentioning

confidence: 99%

“…It is derived from the works of Juran (1951) and Feigenbaum (1956), and has since been developed, expanded and enriched. His initial categorization, however, was used as a useful tool in many case research studies aimed at better visualizing and reorganizing company's structure and processes (Chatzipetrou and Moschidis, 2017, 2018; Dimitrantzou et al , 2020).…”

Section: Literature Researchmentioning

confidence: 99%

Quality cost management in the SMEs of Poland

Biadacz

2020

TQM

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PurposeThe purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.Design/methodology/approachThe primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.FindingsThe pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.Research limitations/implicationsThe research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.Practical implicationsThe results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.Originality/valueThe questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

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“…Company needs to identify, document, analyze and optimize quality costs. Operating cost is widely recognized as a cost factor that can significantly affect profitability (Dimitrantzou et al, 2020;Malik et al, 2016;Campanella, 1999). The significant role of operating cost in the process of continuously improvement of companies has been strongly analysed to create a high quality, and high performance of company that meets and challenges the customers' expectations (Ahmed Al-Dujaili, 2013).…”

Section: Firm Performance Indicators As a Fundamental Analysis Of Sto...mentioning

confidence: 99%

Firm Performance Indicators as a Fundamental Analysis of Stocks and a Determinant of a Firm’s Operation

Naknok¹

2022

IJEBA

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Purpose: The aim is to analyze which financial instruments effectively determine firm performance as key indicators of business success and the fundamental analysis of stocks. Design/methodology/approach: The study analyzed firm performance using financial statements for 100 listed Thailand companies via 513 observations during the period 2016-2020, including the economic COVID-19 crisis. The methodology was divided into two stages, at identifying the relevant dimensions of financial tools and firm size on firm performance using the ordinary least square regression logarithm. During the second stage, quantile regression was used to evaluate financial instruments as a determinant of firm performance using a set of regression functions to non-normal errors and outliers. Findings: The ordinary least square results indicated that both the price earnings ratio and book-to-market ratio are significantly negative determinants of firm performance. The interest coverage ratio was a positive determinant of earnings per share. Meanwhile, the price earnings ratio, book-to-market ratio, and interest coverage ratio were also main determinants of firm performance in both earnings per share and return on equity in all quantiles of the firm. Practical implications: The finding not only identifies firm performance indicators to propel an organization's capability, but also motivates that managers should make to evaluate operating results to effectively deal with a company's high performance. These indicators truly provide insight into the operation of the business by reflecting on the operation to maintain professional boundaries to earn profit that benefits both investors' decision and shareholders.Originality/value: The novelty of this paper lies on the differently distinguished performance companies in Thailand. These investigations enrich the perception of firm performance indicators that motivate whether a company fully manages its operation to generate profit. The price earnings ratio, book-to-market ratio, interest coverage ratio, and firm size have been assessed to be outstanding indicators to contribute effective strategy of firm performance. Most investors consider fundamental value as an indicator of a firm's performance in order to investing decisions in the stock market.

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Future research avenues of cost of quality: a systematic literature review

Cited by 23 publications

References 101 publications

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

Quality cost management in the SMEs of Poland

Firm Performance Indicators as a Fundamental Analysis of Stocks and a Determinant of a Firm’s Operation

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