Introducing strategic quality management

This paper introduces strategic total quality management (STQM) as an extension of total quality management (TQM). STQM is defined as a quality management philosophy that views quality from the overall performance of a firm. It defines quality as being driven by customer and environmental needs and looks to identify critical factors that will determine the survivability and competitiveness of a firm in the near future. A contrast between total quality assurance, total quality management and strategic total quality management is presented using ten principles of quality. The dimensions of STQM are also identified and defined and STQM transformation frameworks are presented to show the process of implementing STQM. The strategic cycle presented here is linked to the popular PDCA or Deming cycle. Furthermore, top management strategies and reasoning for this new focus and strategic targets are identified, grouped and discussed.     

Shades of gray: effect of external work arrangements on firm performance under operational and strategic contingencies

This study builds on recent research on the external workforce by examining the effects of (1) temporary work (2) independent contracting, and (3) consulting on firm performance, considering the client firms’ tasks, the qualification requirements for carrying out these tasks, and its strategic context. The findings are based on a survey of 261 firms in the German manufacturing industry. At the operational level, the results indicate that the difficulty of the tasks to be performed by external workers influences their performance. Whilst temporary work and consulting are better suited for simple tasks with low qualification requirements, independent contracting increases firm performance when appointing individuals to perform complex tasks. At the strategic level we research effects by two strategic orientations; one generally increasing the internal innovation performance (innovation orientation), the other generally increasing the performance of external relationships (alliance orientation). The innovation orientation here reduces the negative effect of temporary work, whereas a high alliance orientation precipitates a positive effect of consulting on firm performance. This paper demonstrates that clients’ task requirements and their alignment towards innovation and alliances have a significant influence on the benefits to the firm conveyed by highly qualified externals.     

On the Inefficiency of Bang-Bang and Stop-Loss Portfolio Strategies

We show in this article that bang-bang portfolio strategies where the investor is alternatively 100% in equity and 100% in cash are dynamically inefficient. Our proof of this result is based on a simple second-order stochastic dominance (SSD) argument. It implies that this is true for any decision criterion that satisfies SSD, not necessarily expected utility. We also examine the stop-loss strategy in which the investor is 100 percent in equity as long as the value of the portfolio exceeds a lower limit where the investor switches to 100 percent in cash. Again, we show that this strategy is inefficient under second-order risk aversion. However, a slight modification of it–in which all wealth exceeding a minimum reserve is invested in equity–is shown to be an efficient dynamic portfolio strategy. This strategy is optimal for investors with a nondifferentiable utility function.     

Residual-based specification of the random-effects distribution for cluster data

We propose a method for specifying the distribution of random effects included in a model for cluster data. The class of models we consider includes mixed models and frailty models whose random effects and explanatory variables are constant within clusters. The method is based on cluster residuals obtained by assuming that the random effects are equal between clusters. We exhibit an asymptotic relationship between the cluster residuals and variations of the random effects as the number of observations increases and the variance of the random effects decreases. The asymptotic relationship is used to specify the random-effects distribution. The method is applied to a frailty model and a model used to describe the spread of plant diseases.     

Friendship and Delinquency: Selection and Influence Processes in Early Adolescence

Positive association of relevant characteristics is a widespread pattern among adolescent friends. A positive association may be caused by the selection of similar others as friends and by the deselection of dissimilar ones, but also by influence processes where friends adjust their behavior to each other. Social control theory argues that adolescents select each other as friends based on delinquency. Differential association theory, on the other hand, argues that adolescent friends influence each other's delinquency levels. We employ new statistical methods for assessing the empirical evidence for either process while controlling for the other process. These methods are based on ‘actor‐oriented’ stochastic simulation models. We analyze longitudinal data on friendship networks and delinquent behavior collected in four waves of 544 students in 21 first‐grade classrooms of Dutch secondary schools. Results indicate that adolescents select others as friends who have a similar level of delinquency compared with their own level. Estimates of the social influence parameters are not significant. The results are consistent with social control theory but provide no support for differential association theory.