Meta-standards, financial performance and senior executive compensation in China: An institutional perspective

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43 Citations (Scopus)

Abstract

We examine the relationships between number of business certifications and financial performance and senior executive compensation in Chinese manufacturing companies. The results show that the number of certifications obtained by a firm is significantly correlated with the compensation of the firm's senior management, but not with the firm's financial performance. We also find that ISO 9000, when adopted for the sake of meeting market institutional expectations, increases the operating cycle time of the certified firm. Our findings offer a clue to the cause of the popularity of meta-standards in Chinaexecutives adopt popular management techniques under an institutionalized environment to enhance their personal legitimacy, despite that the techniques may not necessarily improve firm performance.
Original languageEnglish
Pages (from-to)119-126
Number of pages8
JournalInternational Journal of Production Economics
Volume129
Issue number1
DOIs
Publication statusPublished - 1 Jan 2011

Keywords

  • Financial performance
  • Institutional theory
  • ISO 9000
  • Meta-standards
  • Senior executive compensation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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