Strategic Quality Management Costing and Firm Sustainability: An Empirical Investigation of ISO 9000 Manufacturing Firms in Thailand
Keywords:
Strategic Quality Management Costing, Goal Achievement, Firm SustainabilityAbstract
The study aimed to investigate the effects of the strategic quality management costing (SQMC) on firm sustainability. The resource-based view was applied to explain the five dimension attribute of SQMC. The ISO 9000 manufacturing firms in Thailand were selected as the sample in this study. The questionnaire was used as the instrument for data collection from 195 accounting executive of ISO 9000 manufacturing firms in Thailand. The Ordinary Least Squares (OLS) regression analysis was a method for testing the hypotheses.
The results showed that dimension of strategic quality management costing including dynamic customer learning cost and value chain creativity budget emphasis positively impact goal achievement. Moreover, the findings suggested how that goal achievement had a positive relationship with firm sustainability. Finally, this study generates theoretical and managerial contributions, conclusion, limitation, and suggestions for future research.
References
Akao, Y. (1990). Quality function deployment: integrating customer requirements into product design.
Cambridge: Productivity Press.
Akenbor, C. O. (2014). An accounting reflection of quality cost and customer satisfaction of health
products in Nigeria. Journal of Business and Retail Management Research, 8(2).
Arabian, T., Jourabchi, S. M., Leman, Z., & Ismail, M. Y. (2013). A research on the impact of cost of
quality models and reporting system on managing cost of quality. International Proceedings
of Economics Development and Research, 59, 50.
Armstrong, J. S., & Overton, T. S. (1977). Estimating nonrespons bias in mail Surveys. Journal of
Marketing Research, 14, 396-402.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
99 - 120.
Bessant, J., Caffyn, S., & Gallagher, M. (2001). An evolutionary model of continuous improvement
behavior. Technovation, 21, 67-77.
Brown, S. (2005). Event design an Australian perspective. In: 2nd International event management body
of knowledge global alignments summit. Johannesburg. Mass: Addison-Wesley.
Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance-
The mediating role of knowledge management capacity. Journal of Business Research, 62(1),
104-114.
Chin-Keng, T. (2011). A review on constructs of the practices of quality management. African Journal
of Business Management, 5(23), 9787-9793.
Cooper, R. (1988).The rise of activity-based costing-part two: when do I need an activity- based cost
system? Journal of Cost Management, 3, 41-48.
Das, A., Kumar, V., & Kumar, U. (2011). The role of leadership competencies for implementing TQM: An empirical study
in Thai manufacturing industry. International Journal of Quality & Reliability Management, 28(2), 195-219.
Davila, A., & Wouters, M. (2004). Designing cost-competitive technology products through cost management.
Accounting Horizons, 18(1), 13-26.
Delmotte, J., & Sels, L. (2008). HR outsourcing: threat or opportunity? Personnel Review, 37(5), 543-563.
DeLoach, J. W. (2000). Enterprise - wide risk management. London: Pearson Education.
Eades, D., Frank, K., Garran, J., Magee, R., Pridmore, S., & Reilly, C. (2002). Going international: A value
chain approach to strategic FM delivery. Ideaction 2002 13th National Conference of the Facility Management
Association of Australia, Barossa Valley, Australia.
Feng, T., Sun, L., Zhu, C., & Sohal, A. S. (2012). Customer orientation for decreasing time-to-market of new products:
IT implementation as a complementary asset. Industrial Marketing Management, 41(6), 929-939.
Garstenauer, A., Blackburn, T., & Olson, B. (2014). A knowledge management based approach to quality
management for large manufacturing organizations. Engineering Management Journal, 26(4), 47-58.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis
(6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. NJ: Pearson
Education International. Prentice Hall, 1-816.
Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C., & Baldwin, A. A. (2010). Cost accounting: A
managerial emphasis. Issues in Accounting Education, 25(4), 789-790
Horngren, C., Dater, M., & Rajan, M. (2012). Cost accounting: A managerial emphasis. London: Person
Education.
Jayaram, J., Choon Tan, K., & Laosirihongthong, T. (2014). The contingency role of business strategy on
the relationship between operations practices and performance. Benchmarking: An International Journal, 21(5),
690-712.
Joshi P. L. (2001). The international diffusion of new management accounting practices: The case of India.
Journal of International Accounting, Auditing & Taxation, 10, 85-109.
Juergensen, T. (2000). Continuous improvement: Mindsets, capability, process, tools and results.
The Juergensen Consulting Group,Indianapolis, IN.
Kanapathy, K., & Rasamanie, M. (2011). Adoption of cost of quality reporting: An initial survey of manufacturing firms
in Malaysia. In International Conference on Business and Economics Research, (1), 86-90.
Kiani, B., Shirouyehzad, H., Khoshsaligheh Bafti, F., & Fouladgar, H. (2009). System dynamics approach
to analysing the cost factors effects on cost of quality. International Journal of Quality
& Reliability Management, 26(7), 685-698.
Kuivanen, R. (2008). The future of manufacturing industry in Europe. International Journal of Productivity
and Performance Management, 57(6), 488-493.
Kumar, V., Pozza, L. D., Petersen, J. A., & Shah, D. (2009). Reversing the logic: The path to profitability
through relationship marketing. Journal of Interactive Marketing, 23(2), 147-156.
Lamminmaki, D., & Drury, C. (2001). A Comparison of New Zealand and British Product-Costing
Practices. The International Journal of Accounting, 36, 329-347.
Libby, T., & Lindsay, R. M. (2010). Beyond budgeting or budgeting reconsidered? A survey of North-
American budgeting practice. Management Accounting Research, 21(1), 56-75.
Manyika, J., Sinclair, J., Dobbs, R., Strube, G., Rassey, L., Mischke, J., Remes, J., Roxburgh, C., George,
K., O’Halloran, D., & Ramaswamy, S. (2012). Manufacturing the future: The next era of global
growth and innovation, McKinsey Operations Practice. New York: McKinsey Global Institute.
McPhee, W. (2014). A new sustainability model: engaging the entire firm. Journal of Business Strategy,
35(2), 4-12.
Meulbroek, L. (2001). A better way to manage risk. Harvard Business Review, 79(2), 22-23.
Modi, S. B., & Mishra, S. (2011). What drives financial performance-resource efficiency or resource slack? : Evidence
from US based manufacturing firms from 1991 to 2006. Journal of Operations Management, 29(3), 254-273.
Mohamed, B. (2008).Corporate sustainability/CSR communications and value creation: A marketing
approach. The International Journal of Accounting, 14(52), 145-160.
Nakata, C., Zhu, Z., & Izberk-Bilgin, E. (2011). Integrating marketing and information services functions:
a complementarity and competence perspective. Journal of the Academy of Marketing Science, 39(5), 700-716.
Ninlaphay, S., Ussahawanitchakit, P., & Boonlua, S. (2012). Internal control system effectiveness and
ongoing firm sustainability: Evidence from financial business in Thailand. Journal of International Finance &
Economics, 12(4), 61-84.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory. New York: McGraw-Hill.
Paraschivescu, A. O. (2016). Risk Management and quality management an integrate approach. Economy
Transdisciplinarity Cognition, 19(1), 55-61.
Perez-Araos, A., Barber, K. D., Munive-Hernandez, J. E., & Eldrige, S. (2006). Designing a knowledge management
tool to support knowledge sharing networks. Journal of Manufacturing Technology Management, 18(2), 153-168.
Phokha, A., & Ussahawanitchakit, P. (2010). Marketing proactiveness, customer value added establishment and
marketing success: An empirical study of hotel business in Thailand. Journal of International Business and
Economics, 10(3), 1-26.
Pizzini, M. J. (2006). The relation between cost-system design, managers’ evaluations of the relevance and
usefulness of cost data, and financial performance: an empirical study of US hospitals. Accounting,
Organizations and Society, 31(2), 179-210.
Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of Marketing,
72(1), 27-45.
Robkob, P., & Ussahawanitchakit, P. (2009). Antecedents and consequences of voluntary disclosure of
environmental accounting: An empirical study of foods and beverage firms in Thailand. Review
of Business Research, 9(3), 1-30.
Roden, S., & Dale, B. G. (2001). Quality costing in a small engineering company: Issues and difficulties.
The TQM Magazine, 13(6), 388-399.
Sampattikorn, S., Ussahawanitchakit, P., & Boonlua, S. (2012). Best internal audit practices and goal achievement
sustainability: An empirical examination of Thailisted firms. Journal of International Business and Economics.
12(5), 40-66.
Schiffauerova, A., & Thomson, V. (2006). A review of research on cost of quality models and best
practices. International Journal of Quality & Reliability Management, 23(6), 647-669.
Schmitz, H. (2005). Value chain analysis for policy makers and practitioners, international labor
organization. Retrieved March 10, 2017, from https:// Scholar/Google.Com.
Sedevich-Fons, L. A. (2012). Integration of quality cost and accounting practices. The TQM Journal, 24(4),
338-351.
Slater, S. F., Hult, G. T. M., & Olson, E. M. (2010). Factors influencing the relative importance of marketing
strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing
Management, 39(4), 551-559.
Suthummanon, S., & Sirivongpaisal, N. (2011). Investigation of the relationship between quality and cost
of quality in a wholesale company. ASEAN Engineering Journal, 1(1), 393-413.
Thai Industrial Standards Institute (TISI). ISO 9000 certified. Retrieved March 1, 2016, from http//www.tisi.go.th/.
Theoharakis, V., & Hooley, G. (2008). Customer orientation and innovativeness: differing roles in new and
old Europe. International Journal of Research in Marketing, 25(1), 69-79.
Van-Raaij, E. M. (2005). The strategic value of customer profitability analysis. Marketing Intelligence
& Planning, 23(4), 372-381.
Wei–Hong, X. (2010). An analysis of the product positioning development strategy of TV shopping on the
basis of value chain, management and services science (MASS). International conference conducted 24-26.
Aug. 2010 on East China University, Shanghai.
Wu, C. W., & Chen, C. L. (2006). An integrated structural model toward successful continuous
improvement activity. Technovation, 26, 697-707.
Zaccaro, S. J., & Klimoski, R. J. (2011). The nature of organizational leadership: understanding the
performance imperative confronting today’s leaders. San Francisco: Jossy-Bass.
Cambridge: Productivity Press.
Akenbor, C. O. (2014). An accounting reflection of quality cost and customer satisfaction of health
products in Nigeria. Journal of Business and Retail Management Research, 8(2).
Arabian, T., Jourabchi, S. M., Leman, Z., & Ismail, M. Y. (2013). A research on the impact of cost of
quality models and reporting system on managing cost of quality. International Proceedings
of Economics Development and Research, 59, 50.
Armstrong, J. S., & Overton, T. S. (1977). Estimating nonrespons bias in mail Surveys. Journal of
Marketing Research, 14, 396-402.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
99 - 120.
Bessant, J., Caffyn, S., & Gallagher, M. (2001). An evolutionary model of continuous improvement
behavior. Technovation, 21, 67-77.
Brown, S. (2005). Event design an Australian perspective. In: 2nd International event management body
of knowledge global alignments summit. Johannesburg. Mass: Addison-Wesley.
Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance-
The mediating role of knowledge management capacity. Journal of Business Research, 62(1),
104-114.
Chin-Keng, T. (2011). A review on constructs of the practices of quality management. African Journal
of Business Management, 5(23), 9787-9793.
Cooper, R. (1988).The rise of activity-based costing-part two: when do I need an activity- based cost
system? Journal of Cost Management, 3, 41-48.
Das, A., Kumar, V., & Kumar, U. (2011). The role of leadership competencies for implementing TQM: An empirical study
in Thai manufacturing industry. International Journal of Quality & Reliability Management, 28(2), 195-219.
Davila, A., & Wouters, M. (2004). Designing cost-competitive technology products through cost management.
Accounting Horizons, 18(1), 13-26.
Delmotte, J., & Sels, L. (2008). HR outsourcing: threat or opportunity? Personnel Review, 37(5), 543-563.
DeLoach, J. W. (2000). Enterprise - wide risk management. London: Pearson Education.
Eades, D., Frank, K., Garran, J., Magee, R., Pridmore, S., & Reilly, C. (2002). Going international: A value
chain approach to strategic FM delivery. Ideaction 2002 13th National Conference of the Facility Management
Association of Australia, Barossa Valley, Australia.
Feng, T., Sun, L., Zhu, C., & Sohal, A. S. (2012). Customer orientation for decreasing time-to-market of new products:
IT implementation as a complementary asset. Industrial Marketing Management, 41(6), 929-939.
Garstenauer, A., Blackburn, T., & Olson, B. (2014). A knowledge management based approach to quality
management for large manufacturing organizations. Engineering Management Journal, 26(4), 47-58.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis
(6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. NJ: Pearson
Education International. Prentice Hall, 1-816.
Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C., & Baldwin, A. A. (2010). Cost accounting: A
managerial emphasis. Issues in Accounting Education, 25(4), 789-790
Horngren, C., Dater, M., & Rajan, M. (2012). Cost accounting: A managerial emphasis. London: Person
Education.
Jayaram, J., Choon Tan, K., & Laosirihongthong, T. (2014). The contingency role of business strategy on
the relationship between operations practices and performance. Benchmarking: An International Journal, 21(5),
690-712.
Joshi P. L. (2001). The international diffusion of new management accounting practices: The case of India.
Journal of International Accounting, Auditing & Taxation, 10, 85-109.
Juergensen, T. (2000). Continuous improvement: Mindsets, capability, process, tools and results.
The Juergensen Consulting Group,Indianapolis, IN.
Kanapathy, K., & Rasamanie, M. (2011). Adoption of cost of quality reporting: An initial survey of manufacturing firms
in Malaysia. In International Conference on Business and Economics Research, (1), 86-90.
Kiani, B., Shirouyehzad, H., Khoshsaligheh Bafti, F., & Fouladgar, H. (2009). System dynamics approach
to analysing the cost factors effects on cost of quality. International Journal of Quality
& Reliability Management, 26(7), 685-698.
Kuivanen, R. (2008). The future of manufacturing industry in Europe. International Journal of Productivity
and Performance Management, 57(6), 488-493.
Kumar, V., Pozza, L. D., Petersen, J. A., & Shah, D. (2009). Reversing the logic: The path to profitability
through relationship marketing. Journal of Interactive Marketing, 23(2), 147-156.
Lamminmaki, D., & Drury, C. (2001). A Comparison of New Zealand and British Product-Costing
Practices. The International Journal of Accounting, 36, 329-347.
Libby, T., & Lindsay, R. M. (2010). Beyond budgeting or budgeting reconsidered? A survey of North-
American budgeting practice. Management Accounting Research, 21(1), 56-75.
Manyika, J., Sinclair, J., Dobbs, R., Strube, G., Rassey, L., Mischke, J., Remes, J., Roxburgh, C., George,
K., O’Halloran, D., & Ramaswamy, S. (2012). Manufacturing the future: The next era of global
growth and innovation, McKinsey Operations Practice. New York: McKinsey Global Institute.
McPhee, W. (2014). A new sustainability model: engaging the entire firm. Journal of Business Strategy,
35(2), 4-12.
Meulbroek, L. (2001). A better way to manage risk. Harvard Business Review, 79(2), 22-23.
Modi, S. B., & Mishra, S. (2011). What drives financial performance-resource efficiency or resource slack? : Evidence
from US based manufacturing firms from 1991 to 2006. Journal of Operations Management, 29(3), 254-273.
Mohamed, B. (2008).Corporate sustainability/CSR communications and value creation: A marketing
approach. The International Journal of Accounting, 14(52), 145-160.
Nakata, C., Zhu, Z., & Izberk-Bilgin, E. (2011). Integrating marketing and information services functions:
a complementarity and competence perspective. Journal of the Academy of Marketing Science, 39(5), 700-716.
Ninlaphay, S., Ussahawanitchakit, P., & Boonlua, S. (2012). Internal control system effectiveness and
ongoing firm sustainability: Evidence from financial business in Thailand. Journal of International Finance &
Economics, 12(4), 61-84.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory. New York: McGraw-Hill.
Paraschivescu, A. O. (2016). Risk Management and quality management an integrate approach. Economy
Transdisciplinarity Cognition, 19(1), 55-61.
Perez-Araos, A., Barber, K. D., Munive-Hernandez, J. E., & Eldrige, S. (2006). Designing a knowledge management
tool to support knowledge sharing networks. Journal of Manufacturing Technology Management, 18(2), 153-168.
Phokha, A., & Ussahawanitchakit, P. (2010). Marketing proactiveness, customer value added establishment and
marketing success: An empirical study of hotel business in Thailand. Journal of International Business and
Economics, 10(3), 1-26.
Pizzini, M. J. (2006). The relation between cost-system design, managers’ evaluations of the relevance and
usefulness of cost data, and financial performance: an empirical study of US hospitals. Accounting,
Organizations and Society, 31(2), 179-210.
Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of Marketing,
72(1), 27-45.
Robkob, P., & Ussahawanitchakit, P. (2009). Antecedents and consequences of voluntary disclosure of
environmental accounting: An empirical study of foods and beverage firms in Thailand. Review
of Business Research, 9(3), 1-30.
Roden, S., & Dale, B. G. (2001). Quality costing in a small engineering company: Issues and difficulties.
The TQM Magazine, 13(6), 388-399.
Sampattikorn, S., Ussahawanitchakit, P., & Boonlua, S. (2012). Best internal audit practices and goal achievement
sustainability: An empirical examination of Thailisted firms. Journal of International Business and Economics.
12(5), 40-66.
Schiffauerova, A., & Thomson, V. (2006). A review of research on cost of quality models and best
practices. International Journal of Quality & Reliability Management, 23(6), 647-669.
Schmitz, H. (2005). Value chain analysis for policy makers and practitioners, international labor
organization. Retrieved March 10, 2017, from https:// Scholar/Google.Com.
Sedevich-Fons, L. A. (2012). Integration of quality cost and accounting practices. The TQM Journal, 24(4),
338-351.
Slater, S. F., Hult, G. T. M., & Olson, E. M. (2010). Factors influencing the relative importance of marketing
strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing
Management, 39(4), 551-559.
Suthummanon, S., & Sirivongpaisal, N. (2011). Investigation of the relationship between quality and cost
of quality in a wholesale company. ASEAN Engineering Journal, 1(1), 393-413.
Thai Industrial Standards Institute (TISI). ISO 9000 certified. Retrieved March 1, 2016, from http//www.tisi.go.th/.
Theoharakis, V., & Hooley, G. (2008). Customer orientation and innovativeness: differing roles in new and
old Europe. International Journal of Research in Marketing, 25(1), 69-79.
Van-Raaij, E. M. (2005). The strategic value of customer profitability analysis. Marketing Intelligence
& Planning, 23(4), 372-381.
Wei–Hong, X. (2010). An analysis of the product positioning development strategy of TV shopping on the
basis of value chain, management and services science (MASS). International conference conducted 24-26.
Aug. 2010 on East China University, Shanghai.
Wu, C. W., & Chen, C. L. (2006). An integrated structural model toward successful continuous
improvement activity. Technovation, 26, 697-707.
Zaccaro, S. J., & Klimoski, R. J. (2011). The nature of organizational leadership: understanding the
performance imperative confronting today’s leaders. San Francisco: Jossy-Bass.
Downloads
Published
25-10-2018
How to Cite
Puttikunsakon, A., Boonlua, S., & Raksong, S. (2018). Strategic Quality Management Costing and Firm Sustainability: An Empirical Investigation of ISO 9000 Manufacturing Firms in Thailand. Journal of Accountancy and Management, 10(3), 152–169. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/222952
Issue
Section
Research Articles
License
บทความที่ได้รับการตีพิมพ์เป็นลิขสิทธิ์ของวารสารการบัญชีและการจัดการ
ข้อความที่ปรากฏในบทความแต่ละเรื่องในวารสารวิชาการเล่มนี้เป็นความคิดเห็นส่วนตัวของผู้เขียนแต่ละท่านไม่เกี่ยวข้องกับมหาวิทยาลัยมหาสารคาม และคณาจารย์ท่านอื่นๆในมหาวิทยาลัยฯ แต่อย่างใด ความรับผิดชอบองค์ประกอบทั้งหมดของบทความแต่ละเรื่องเป็นของผู้เขียนแต่ละท่าน หากมีความผิดพลาดใดๆ ผู้เขียนแต่ละท่านจะรับผิดชอบบทความของตนเองแต่ผู้เดียว
