ARCHSECRET: a multi‐item scale to measure service quality within the voluntary sector

This paper provides an overview of the application of SERVQUAL reflecting the theoretical criticisms concerning disconfirmation model, process orientation, role of expectations and portability. The original SERVQUAL framework was found to be inappropriate for services that had no close analogue with the private sector. A qualitative research study was undertaken to establish the sector‐specific criteria used by customers to evaluate service quality. The study identified 40 potentially unique features of the service as perceived by service recipients. These features were developed into a pilot survey instrument that comprised 40 questions, covering expectations, perceptions and importance. A pilot study was undertaken to test the instrument among disabled customers and their carers across the main centres of a national voluntary organisation. Analyses of the pilot survey data resulted in a set of 27 distinct statements across ten hypothesised service quality dimensions. These are Access, Responsiveness, Communication, Humaneness, Security, Enabling/Empowerment, Competence, Reliability, Equity, and Tangibles, giving rise to the acronym ARCHSECRET. The ARCHSECRET instrument is potentially a powerful diagnostic tool for managers in their pursuit of continuous quality improvement within voluntary sector organisations. Copyright © 2001 Henry Stewart Publications     

Keeping up with the Joneses: Changing Rating Standards and the Buildup of Capital by U.S. Property-Liability Insurers

There has been a net propensity over the last decade for the dominant rating agency of the U.S. insurance industry, A.M. Best, to downgrade property-liability insurers. This could reflect a general deteriorating credit worthiness of the industry or an increase in the performance thresholds Best's has deemed necessary to achieve a given rating class. Consistent with a recent study of corporate bond ratings, we find evidence there has been an increase in rating stringency. Specifically, we show pressure for insurers to maintain their existing ratings provides a plausible explanation of the dramatic buildup of capital in the industry during the 1990s. In addition, our analysis suggests Best's raised the bar in terms of the capital required to maintain the highest ratings differentially relative to the increase in standards they required for lower rated categories. The actual pattern of capital buildup across firms in different rating categories is consistent with an attempt by high quality firms to defend these ratings.     

Technical education in Scotland: Fit for purpose?

As Technical education strains to find a niche in the educational market place, are teachers suffering from a crisis of confidence? How comfortable are they with the ever-changing curriculum, with the subjects they are teaching and the reasons why they are teaching them? The broadening of the Technical curriculum in secondary schools to include Practical Craft Skills has proved popular with some teachers, while others perceive a drift back to a purely skills based curriculum along with a further deterioration of the status of Technical departments. This paper explores the present state of Technical Education in Scotland through the analysis of an online survey of 95 practising teachers and an investigation of employers’ entrance requirements for apprenticeships in the engineering and construction industries. The results indicate a degree of conflict among staff regarding the role of Technical education, coupled with limited recognition for Technical subjects among employers.     

Lessons from the Financial Crisis on Risk and Capital Management: The Case of Insurance Companies

This article proposes that risk management be viewed as an integral part of the corporate value‐creation process— one in which the concept of economic capital can provide companies with the financial cushion and confidence to carry out their strategic plans. Using the case of insurance and reinsurance companies, the authors discuss three main ways that the integration of risk and capital management creates value:

• 1 strengthening solvency (by limiting the probability of financial distress);
• 2 increasing prospects for profitable growth (by preserving access to capital during post‐loss periods); and
• 3 improving transparency (by increasing the “information content” or “signaling power” of reported earnings).

Insurers can manage solvency risk by using Enterprise Risk Management (ERM) models to limit the probability of financial distress to levels consistent with the firm's specified risk tolerance. While ERM models are effective in managing “known” risks, we discuss three practices widely used in the insurance industry to manage “unknown” and “unknowable” risks using the logic of real options—slack, mutualization, and incomplete contracts. Second, risk management can create value by securing sources of capital that, like contingent capital, can be used to fund profitable growth opportunities that tend to arise in periods following large losses. Finally, the authors argue that risk management can raise the confidence of investors in their estimates of future growth by removing the “noise” in earnings that comes from bearing non‐core risks, thereby making current earnings a more reliable guide to future earnings. In support of this possibility, the authors provide evidence showing that, for a given level of reported return on equity (ROE), (re)insurers with more stable ROEs have higher price‐to‐book ratios, suggesting investors' willingness to pay a premium for the stability provided by risk management.     

Information effect of entry into credit ratings market: The case of insurers' ratings

The paper analyzes the effect of competition between credit rating agencies (CRAs) on the information content of ratings. We show that a monopolistic CRA pools sellers into multiple rating classes and has partial market coverage. This provides an opportunity for market entry. The entrant designs a rating scale distinct from that of the incumbent. It targets higher-than-average companies in each rating grade of the incumbent's rating scale and employs more stringent rating standards. We use Standard and Poor's (S&P) entry into the market for insurance ratings previously covered by a monopolist, A.M. Best, to empirically test the impact of entry on the information content of ratings. The empirical analysis reveals that S&P required higher standards to assign a rating similar to the one assigned by A.M. Best and that higher-than-average quality insurers in each rating category of A.M. Best chose to receive a second rating from S&P.     

Integrating the environmental and economic consequences of converting to organic agriculture: evidence from a case study

In the current debate about the future of food quality, the merits of organic agriculture are frequently championed, but few studies have sought to integrate the changes in soil conditions, biodiversity and socio-economic welfare linked to the conversion from non-organic to organic production. This article aims to undertake this approach with respect to one case study. Its conclusions may not be representative for all organic conversions, but the findings are of relevance at a time of debate over changing patterns of subsidies and other incentives in agricultural policy. The study showed that there were demonstrable differences in overall environmental conditions in the comparison of organic and non-organic farming, with field evidence of increased species diversity, and an eventual improvement in the profitability of the organic farming regime. The broad conclusion is that there are definite environmental and economic advantages arising from organic agriculture that are not fully reflected in the present pattern of agricultural incentives. The study also showed that variations in farm management practice strongly influence the notion of on-farm and off-farm environmental consequences. The implications of these findings for the future of sustainable agriculture and for interdisciplinary science are also discussed.     

The role of ICTs in the servitisation and degradation of IT professional work

Recently IT work has been subjected to management approaches that apply production methods to service work. Specialised information and communication technologies (ICTs) used by IT professionals have played an important role in this ‘service turn’, but this has not been adequately explored in the literature. Via a qualitative study of IT professionals situated across the servitised IT functions of five UK‐based organisations, this article considers how these ICTs are inscribed with managerial logics that afford control benefits to managers while undermining professional autonomy and job quality. The article makes two main contributions to the literature. Firstly, it sheds light on how ICTs introduced into organisational IT functions support managerial control objectives and impact the job quality of IT professionals. Secondly, it suggests that ICTs may infect the logic of professionalism that takes pride in the quality of the work performance with a dominant managerial logic that places an emphasis on meeting management objectives.