The Board of Directors and The Adoption of Quality Management Tools

Abstract

The article examines the role of the board of directors in Local Public Utilities (LPUs). It aims at verifying empirically if a correlation exists between specific characteristics of the board of directors and the adoption of innovative arrangements addressing emerging needs of users and citizens (i.e. quality). By means of applying multivariate statistical methods to a random sample of sixty Italian LPUs, this study finds the relational capital of the boards affecting the take up of quality-oriented actions by LPUs. These results support the resource-dependence theory, neglected by mainstream literature.     

Using integrated quality assessment for hotel service quality

In the age of growing foreign tourism, providing excellent quality service at hotels is increasingly more important. Service quality and customer satisfaction have gradually been recognized as key factors used to gain competitive advantage and customer retention. Most companies conducted satisfaction surveys of their customers, with a view of using analysed results to identify attributes of potential improvement. However, this kind improvement decisions on the attributes with a lower satisfaction level needs not to be appropriated. Thus, to achieve higher levels of overall satisfaction with the hotel experience, this study combined four simple methods, including Kano’s model, refined Kano’s model, Importance-Satisfaction model, and the Improvement index, to evaluate two types of hotels. The integrated approach of service quality measurement is based on the importance and satisfaction survey of the quality attributes. The survey, with 24 attributes and service items, were administrated to a random sample of 400 customers at one business hotel and one resort hotel in Taiwan. The strategies of these two kinds of hotels were compared and discussed in this study. On the basis of the key quality attributes identified by employing the integrated approach, which are significantly different from those identified on the basis of a simple satisfaction survey, hotels can make appropriate decisions on specific areas for improvement to further enhance the hotel service quality in Taiwan.     

Shannon information in record data

In this article we present results on the Shannon information (SI) contained in upper (lower) record values and associated record times in a sequence of i.i.d continuous variables. We then establish an interesting relationship between the SI content of a random sample of fixed size, and the SI in the data consisting of sequential maxima. We also consider the information contained in the record data from an inverse sampling plan (ISP).     

Minimax price bounds in incomplete markets

This paper develops an approach to tighten the bounds on asset prices in an incomplete market by combining no-arbitrage pricing and preference-based pricing, and the approach is applied to a call option in the absence of dynamic rebalancing. With the no-arbitrage pricing, it is straightforward to obtain the initial bounds, which are too wide to be of practical uses. By accepting that a representative agent exhibits risk aversion from a benchmark pricing kernel, it is possible to narrow the bounds considerably. Using the unbiased minimax deviation implicit in the parameters, one can restrict further the set of reasonable values on assets in incomplete markets.     

Dispersive ordering of fail-safe systems with heterogeneous exponential components

Let X ₁, . . . , X _n be independent exponential random variables with respective hazard rates λ₁, . . . , λ _n , and Y ₁, . . . , Y _n be independent and identically distributed random variables from an exponential distribution with hazard rate λ. Then, we prove that X _2:n , the second order statistic from X ₁, . . . , X _n , is larger than Y _2:n , the second order statistic from Y ₁, . . . , Y _n , in terms of the dispersive order if and only if

$\lambda\geq \sqrt{\frac{1}{{n\choose 2}}\sum_{1\leq i < j\leq n}\lambda_i\lambda_j}.$

We also show that X _2:n is smaller than Y _2:n in terms of the dispersive order if and only if

$ \lambda\le\frac{\sum^{n}_{i=1} \lambda_i-{\rm max}_{1\leq i\leq n} \lambda_i}{n-1}. $

Moreover, we extend the above two results to the proportional hazard rates model. These two results established here form nice extensions of the corresponding results on hazard rate, likelihood ratio, and MRL orderings established recently by Pǎltǎnea (J Stat Plan Inference 138:1993–1997, 2008), Zhao et al. (J Multivar Anal 100:952–962, 2009), and Zhao and Balakrishnan (J Stat Plan Inference 139:3027–3037, 2009), respectively.