The effect of measurement alternatives on a nonfinancial quality measure's forward-looking properties

Accounting Review

Volumn 78, Issue 2, 2003, Pages 555-580

  Sedatole, Karen L ^a  

^a UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

Cost function; Cost of quality; Leading indicator; Nonfinancial performance measure; Quality; Service firms

Indexed keywords

EID: 0038739104     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.2003.78.2.555     Document Type: Review

References (46)

1. Albright, T. L., and H. P. Roth. 1992. The measurement of quality costs: An alternative paradigm. Accounting Horizons 6 (2): 15-27.
2. Allison, P. D. 1995. Survival Analysis Using the SAS System: A Practical Guide. Cary, NC: SAS Institute Inc.
3. Anderson, E. W., and M. W. Sullivan. 1993. The antecedents and consequences of customer satisfaction for firms. Marketing Science 12 (2): 125-143.
4. _, C. Fornell, and D. R. Lehmann. 1994. Customer satisfaction, market share, and profitability: Findings from Sweden. Journal of Marketing 58 (3) 53-66.
5. Anderson, S. W. 1993. Measuring manufacturing flexibility: The impact of product mix complexity on operating performance and manufacturing overhead cost. Ph.D. dissertation, Harvard University.
6. _. 1995. Measuring the impact of product mix heterogeneity on manufacturing overhead cost. The Accounting Review 70 (3): 363-387.
7. Apte, U. M., U. S. Karmarkar, and R. Pitbladdo. 1997. Quality management in services: Analysis and measurement. In The Practice of Quality Management, edited by P. J. Lederer, and U. S. Karmarkar. Boston, MA: Kluwer Academic Publishers.
8. Balakrishnan, R., T. Gruca, and D. Nath. 1996. The effect of service capability on operating costs: An empirical study of Ontario hospitals. Contemporary Accounting Research 13 (1): 177-206.
9. Banker, R., and H. H. Johnston. 1993. An empirical study of cost drivers in the U.S. airline industry. The Accounting Review 68 (3): 576-601.
10. _, G. Potter, and D. Srinivasan. 2000. An empirical investigation of an incentive plan that includes nonfinancial performance measures. The Accounting Review 75 (1): 65-92.
11. Bearden, W. O., and J. E. Teel. 1983. Selected determinants of consumer satisfaction and complaint reports. Journal of Marketing Research 20 (1): 21-28.
12. Cronin, J. J., and S. A. Taylor. 1992. Measuring service quality: A reexamination and extension. Journal of Marketing 56 (3): 55-68.
13. _, and _. 1994. Modeling patient satisfaction and service quality. Marketing Health Services 14 (1): 34-44.
14. Crosby, P. B. 1979. Quality is Free. New York, NY: McGraw-Hill.
15. Datar, S. M., S. Kekre, T. Mukhopadhyay, and K. Srinivasan. 1993. Simultaneous estimation of cost drivers. The Accounting Review 68 (3): 602-614.
16. _, S. C. Kulp, and R. A. Lambert. 2001. Balancing performance measures. Journal of Accounting Research 39 (1): 75-92.
17. Darnell, A. C. 1994. A Dictionary of Econometrics. Lyme, NH: Edward Elgar Publishing, Inc.
18. Dikolli, S. S. 2001. Agent employment horizons and the contracting demand for leading indicators of future performance. Journal of Accounting Research 39 (3): 481-494.
19. Feigenbaum, A. V. 1983. Quality costs. In Total Quality Control, 3rd edition. New York, NY: McGraw-Hill.
20. Feltham, G. A., and J. Xie. 1994. Performance measure congruity and diversity in multi-task principal/agent relations. The Accounting Review 69 (3): 429-453.
21. Fine, C. H. 1986. Quality improvement and learning in productive systems. Management Science 32 (10): 1301-1315.
22. Foster, S. T., and E. E. Adam, Jr. 1996. Examining the impact of speed of quality improvement on quality-related costs. Decision Sciences 27 (4): 623-646.
23. Greene, W. H. 1997. Limited dependent variable and duration models. In Econometric Analysis, 3rd edition. Upper Saddle River, NJ: Prentice Hall, Inc.
24. Ireson, W. 1971. Handbook of Industrial Engineering and Management. 2nd edition. Englewood Cliffs, NJ: Prentice Hall Inc.
25. Ittner, C. D., and J. P. MacDuffie. 1995. Explaining plant-level differences in manufacturing overhead: Structural and executional cost drivers in the world auto industry. Production and Operations Management 4 (4): 312-334.
26. _. 1996. Exploratory evidence on the behavior of quality costs. Operations Research 44 (1): 114-130.
27. _, and D. Larcker. 1998a. Are non-financial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research 36 (Supplement): 1-35.
28. _, and _. 1998b. Innovations in performance measurement: Trends and research implications. Journal of Management Accounting Research 10: 205-238.
29. _, V. Nagar, and M. V. Rajan. 2001. Empirical examination of quality learning models. Management Science 47 (4): 563-578.
30. Kim, M., and W. Liao. 1994. Estimating hidden quality costs with quality loss. Accounting Horizons 8 (1): 8-18.
31. Kinney, W. R., Jr. 2001. Accounting scholarship: What is uniquely ours? The Accounting Review 76 (2): 275-284.
32. Kotler, P., and P. N. Bloom. 1984. Marketing Professional Services. Englewood Cliffs, NJ: Prentice Hall.
33. Lambert, R. A. 1998. Customer satisfaction and future financial performance: Discussion of: Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research 36 (Supplement): 37-46.
34. Love, C. E, R. Guo, and K. H. Irwin. 1995. Acceptable quality level versus zero-defects: Some empirical evidence. Computers & Operations Research 22 (4): 403-417.
35. MacArthur, J. B., and H. A. Stranahan. 1998. Cost driver analysis in hospitals: A simultaneous equations approach. Journal of Management Accounting Research 10: 280-312.
36. Nagar, V. 1998. The explanatory power of non-financial measures in bank earnings prediction. Working paper, University of Michigan, Ann Arbor, MI.
37. _, and M. Rajan. 2001. Revenue implications of product quality measures. The Accounting Review 76 (4): 495-513.
38. Nelson, E. C., R. T. Rust, A. Zahorik, and R. L. Rose. 1992. Do patient perceptions of quality relate to hospital financial results? Journal of Health Care Marketing 12 (4): 6-13.
39. Oliver, R. L. 1980. A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research 17 (4): 460-469.
40. Parasuraman, A., V. Zeithaml, and L. Berry. 1985. A conceptual model of service quality and its implications for future research. Journal of Marketing (Fall): 41-50.
41. _, and _. 1994. Reassessment of expectations as a comparison standard in measuring service quality: Implications for further research. Journal of Marketing 58 (1): 111-124.
42. Patterson, P. G. 1993. Expectations and product performance as determinants of satisfaction for a high-involvement purchase. Psychology & Marketing 10 (5): 449-465.
43. Phillips, L. D., D. R. Chang, and R. Buzzell. 1983. Product quality, cost position, and business performance: A test of some key hypotheses. Journal of Marketing 47 (2): 26-43.
44. Stank, T. P., T. J. Vickery, and K. Shawnee. 1999. Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry. Journal of Operations Management 17 (4): 429-447.
45. Taguchi, G., E. A. Elsayed, and T. Hsiang. 1989. Quality Engineering in Production Systems. NY: McGraw-Hill.
46. Zeithaml, V. A., L. L. Berry, and A. Parasuraman. 1996. The behavioral consequences of service quality. Journal of Marketing 60 (2): 31-46.