TY - JOUR
T1 - The effectiveness of quality awards on the company's performance – the case of Iran's national quality awards
AU - Safari, Hossein
AU - Razghandi, Elham
AU - Fathi, Mohammad Reza
AU - Cruz-Machado, Virgilio
AU - Cabrita, Maria do Rosário
N1 - Sem PDF conforme despacho.
PY - 2020/2/17
Y1 - 2020/2/17
N2 - Purpose: The purpose of this study is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business. Design/methodology/approach: In the first step, the relationship between awards scores and financial performance by canonical correlation analysis was examined. Then, binary and multinomial logistic regression was used to determine the degree of impact of each financial performance measure on getting quality awards. Finally, two forecasting functions were explored: the probability of achieving quality awards and the probability of achieving different levels of these awards. Findings: Based on the analyzed data of 112 companies through canonical correlation analysis, there was a weak relationship between financial performance and getting quality awards. Also, by using logistic regression, no result was found to prove the impact of financial performance measures on getting Iran's national quality awards. It can be concluded that conceptually, deployment of excellence organizational models will not result in favorable outcomes, especially in the financial scope. Also, practically, excellence models have not been well deployed in Iranian companies, or these models do not fit to Iran's business environment. Organizational culture may not be consistent with quality. Originality/value: Quality awards are given to qualified companies following the establishment of models of excellence such as the European Foundation for Quality Management (EFQM). The main novelty of this research is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business.
AB - Purpose: The purpose of this study is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business. Design/methodology/approach: In the first step, the relationship between awards scores and financial performance by canonical correlation analysis was examined. Then, binary and multinomial logistic regression was used to determine the degree of impact of each financial performance measure on getting quality awards. Finally, two forecasting functions were explored: the probability of achieving quality awards and the probability of achieving different levels of these awards. Findings: Based on the analyzed data of 112 companies through canonical correlation analysis, there was a weak relationship between financial performance and getting quality awards. Also, by using logistic regression, no result was found to prove the impact of financial performance measures on getting Iran's national quality awards. It can be concluded that conceptually, deployment of excellence organizational models will not result in favorable outcomes, especially in the financial scope. Also, practically, excellence models have not been well deployed in Iranian companies, or these models do not fit to Iran's business environment. Organizational culture may not be consistent with quality. Originality/value: Quality awards are given to qualified companies following the establishment of models of excellence such as the European Foundation for Quality Management (EFQM). The main novelty of this research is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business.
KW - Binary logistic regression
KW - Canonical correlation analysis
KW - Multinomial logistic regression
KW - National quality award
KW - Performance
KW - The European Foundation for Quality Management
UR - http://www.scopus.com/inward/record.url?scp=85079813878&partnerID=8YFLogxK
U2 - 10.1108/BIJ-12-2018-0409
DO - 10.1108/BIJ-12-2018-0409
M3 - Article
AN - SCOPUS:85079813878
SN - 1463-5771
VL - 27
SP - 1319
EP - 1340
JO - Benchmarking
JF - Benchmarking
IS - 4
ER -