بررسیهای حسابداری و حسابرسی (Dec 2021)
The Impact of Quality Costs on Brand Equity Considering the Mediating Role of Green Innovation in Tehran Stock Exchange
Abstract
Objective: This research aims to investigate the effect of quality costs on firm brand equity and ditto how green innovation affects the relationship. Methods: The period of study is from 2009 to 2020 and the selected sample consists of 104 companies listed in Tehran Stock Exchange. To measure the quality costs, the modified quality balance has been used, and for three dimensions of the market, financial, and accounting have been considered to calculate brand equity. Finally, to measure green innovation, of variables, green management innovation, and the modified green technology innovation has been used. Results: The results of the study show that there is a significant reverse relationship between quality costs and brand equity; that by decreasing the quality cost of a company, the credit of its brand equity is significantly increased. Also, there is a significant reverse relationship between quality costs and green technology innovation; that by reducing the quality costs of a product, using released resources, and manufacturing of products or services fitted by the green technology innovation can be increased. Additionally, there isn’t any relation between quality costs and green management innovation; also, there is a significant direct relationship between green technology innovation and brand equity; by increasing green technology innovation, the brand equity value increases. However, there is a negative and significant reverse relationship between green management innovation and brand equity; when a firm engages more in green management innovation; the value of brand equity reduces. The mediating role of green technology innovation on the relationship between quality costs and brand equity was not rejected, but green management innovation has no mediating effect between quality costs and brand equity. Conclusion: To have a strong brand, a business unit must produce goods with competitive manufacturing advantages and market, Suppliers who can offer products with similar quality and functionality but at lower prices will snatch the lead from other competitors and increase their market share. According to the concept of a "quality improvement chain", organizations can increase their competitiveness by improving quality. This will reduce quality costs by eliminating waste and reprocessing. Organizations often face recession due to a lack of internal and external financial resources. On the other hand, improving quality has more benefits than reducing costs. In the absence of product defects and as a result, there is no need to correct those defects, resources are released that can be used to produce new and innovative products. Therefore, the reduction of quality costs can lead to an increase in brand equity value given investors and customers as well as the release of resources for the implementation of green technology.
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