Psychological bonds and their impact on behavioral loyalty in auditor-client relationships

Purpose – The purpose of this paper is to examine the effect of the psychological bond on behavioral loyalty (word-of-mouth, continuance and non-audit services) to audit firms providing services to companies listed on the Polish Stock Exchange. Design/methodology/approach – A model is proposed and tested using structural equation modeling with LISREL. Data were collected from top executives of companies listed on the Warsaw Stock Exchange. Findings – The psychological bond has a positive effect on word-of-mouth, continuance and non-audit services. Research limitations/implications – The current research is limited to the investigation of the psychological bond as an antecedent of behavioral loyalty in Poland. Future research should identify and assess other antecedents and replicate these across different countries. A longitudinal survey across different points in time might reveal more useful information about auditor-client relationships. Practical implications – Auditors need to consider ways in which they can develop the psychological bond with their clients. This bond is the basis for the client believing the audit firm is superior to others, which has been found to lead to behavioral loyalty in this study. In particular, management of the auditor brand and reputation, personal experience of the audit firm and alumni relations are discussed as ways of enhancing the psychological bond among client executives. Originality/value – This study is the first to examine the impact of the psychological bond on behavioral loyalty in auditor-client relationships.

Representing the dividing instant

The so-called dividing instant (DI) problem is an ancient historical puzzle encountered when attempting to represent what happens at the boundary instant which divides two successive states. The specification of such a problem requires a thorough exploration of the primitives of the temporal ontology and the corresponding time structure, as well as the conditions that the resulting temporal models must satisfy. The problem is closely related to the question of how to characterize the relationship between time periods with positive duration and time instants with no duration. It involves the characterization of the ‘closed’ and ‘open’ nature of time intervals, i.e. whether time intervals include their ending points or not. In the domain of artificial intelligence, the DI problem may be treated as an issue of how to represent different assumptions (or hypotheses) about the DI in a consistent way. In this paper, we shall examine various temporal models including those based solely on points, those based solely on intervals and those based on both points and intervals, and point out the corresponding DI problem with regard to each of these temporal models. We shall propose a classification of assumptions about the DI and provide a solution to the corresponding problem.

Flexible self-adjustment of task deployment in dynamic environments

This paper presents an investigation into dynamic self-adjustment of task deployment and other aspects of self-management, through the embedding of multiple policies. Non-dedicated loosely-coupled computing environments, such as clusters and grids are increasingly popular platforms for parallel processing. These abundant systems are highly dynamic environments in which many sources of variability affect the run-time efficiency of tasks. The dynamism is exacerbated by the incorporation of mobile devices and wireless communication. This paper proposes an adaptive strategy for the flexible run-time deployment of tasks; to continuously maintain efficiency despite the environmental variability. The strategy centres on policy-based scheduling which is informed by contextual and environmental inputs such as variance in the round-trip communication time between a client and its workers and the effective processing performance of each worker. A self-management framework has been implemented for evaluation purposes. The framework integrates several policy-controlled, adaptive services with the application code, enabling the run-time behaviour to be adapted to contextual and environmental conditions. Using this framework, an exemplar self-managing parallel application is implemented and used to investigate the extent of the benefits of the strategy

The effect of bonds on loyalty towards auditors: the mediating role of commitment

The study examines the impact of knowledge and social bonds on commitment and behavioural loyalty in auditor-client relationships. A model is proposed and tested using data collected from stock exchange company executives in the UK. The results show the significant effects of the knowledge and social bonds on commitment. Commitment is shown to be a mediating variable, which influences word-of-mouth and continuance but not the purchase of non-audit services. In the light of these findings, suggestions are provided to auditors in developing relationship bonds and managing the relationship at the firm level.

Advanced product development integration architecture: an out-of-box solution to support distributed production networks

This paper presents novel collaboration methods implemented using a centralized client/server product development integration architecture, and a decentralized peer-to-peer network for smaller and larger companies using open source solutions. The product development integration architecture has been developed for the integration of disparate technologies and software systems for the benefit of collaborative work teams in design and manufacturing. This will facilitate the communication of early design and product development within a distributed and collaborative environment. The novelty of this work is the introduction of an‘out-of-box’ concept which provides a standard framework and deploys this utilizing a proprietary state-of-the-art product lifecycle management system (PLM). The term ‘out-of-box’ means to modify the product development and business processes to suit the technologies rather than vice versa. The key business benefits of adopting such an approach are a rapidly reconfigurable network and minimal requirements for software customization to avoid systems instability

Performance measurement and benchmarking of a major innovation programme

Purpose: The purpose of this paper is to describe the problems encountered and the solutions developed when using benchmarking and key performance indicators (KPIs) to monitor a major UK social house building innovation (change) programme. The innovation programme sought improvements to both the quality of the house product and the procurement process. Design/methodology/approach: Benchmarking and KPIs were used to quantify performance and in-depth case studies to identify underlying cause and effect relationships within the innovation programme. Findings: The inherent competition between consortium members; the complexity of the relationship between the consortium and its strategic partner; the lack of an authoritative management control structure; and the rapidly changing nature of the UK social housing market all proved problematic to the development of a reliable and robust monitoring system. These problems were overcome by the development of multi-dimensional benchmarking model that balanced the needs and aspirations of the individual organisations with the broader objectives of the consortium. Research limitations/implications: Whilst the research methodology provides insight into the factors that affected the performance of a major innovation programme its findings may not be representative of all projects. Practical implications: The lessons learnt should assist those developing benchmarking models for multi-client consortia. Originality/value: The work reported in this paper describes an inclusive approach to benchmarking in which a multiple client group and their strategic partner sought to work together for shared gain. Very few papers have addressed this issue.

A critical evaluation of Enterprise Resource Planning (ERP) software sourcing and provision using theoretical constructs

Deliberating on Enterprise Resource Planning (ERP) software sourcing and provision, this paper contrasts the corporate environment with the small business environment. The paper is about Enterprise Resource Planning client (ERPc) expectations and Enterprise Resource Planning vendor (ERPv) value propositions as a mutually compatible process for achieving acceptable standards of ERP software performance. It is suggested that a less-than-equitable vendor–client relationship would not contribute to the implementation of the optimum solution. Adapting selected theoretical concepts and models, the researchers analyse ERPv to ERPc relationship. This analysis is designed to discover if the provision of the very large ERP vendors who market systems such as SAP, and the provision of the smaller ERP vendors (in this instance Eshbel Technologies Ltd who market an ERP software solution called Priority) when framed as a value proposition (Walters, D. (2002) Operations Strategy. Hampshire, UK: Palgrave), is at all comparable or distinctive.