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

Chris K.Y. Lo, Andy C.L. Yeung and T.C. Edwin Cheng

International Journal of Production Economics, 2011, vol. 129, issue 1, 119-126

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 China--executives adopt popular management techniques under an institutionalized environment to enhance their personal legitimacy, despite that the techniques may not necessarily improve firm performance.

Keywords: Meta-standards; ISO; 9000; Institutional; theory; Financial; performance; Senior; executive; compensation (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00348-8
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:129:y:2011:i:1:p:119-126

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().