Third-party Certification Research Articles

Consideration and Practice of Introducing Third-party Certification Institutions to Participate in Post-marketing Supervision of Medical Devices

After years of international regulatory practice, the third party certification bodies have become an important social force in the field of medical devices supervision. It is broadly discussed how to introduce social resources to play an active role in the supervision of medical devices under the regulatory system of medical devices in China. Shanghai Medical Products Administration has carried out research and preliminary practice on the participation of third-party institutions in post-marketing supervision of medical devices. The article mainly focuses on purpose, entry point, inspection criteria and result disposal of introducing the participation of third-party institutions in the post-marketing supervision, meanwhile, discusses the next work direction at the same time.

The value of signals: Do self-declaration and certification generate price premiums for organic and biodynamic wines?

Given the growing demand for sustainable products, producers are faced with the question as to whether the costs of certification are necessary for credibility and associated price premiums. However, current research has not convincingly demonstrated customers’ willingness to pay for organic or biodynamic products, as studies relying on stated preferences have produced results that are difficult, if not impossible to reconcile with observable behavior. Furthermore, no study has so far attempted to understand to what extent signals either reinforce or dilute each other and how this affects prices. To fill these research gaps, the wine industry serves as an example, since a large number of producers have already adopted organic or biodynamic practices. While some of these wineries have successfully applied for third-party certification, others follow strict guidelines without being certified and self-declare themselves to be eco-friendly. Using a large sample of 55,500 wines produced by 1,514 German wineries between 2010 and 2017, this study estimates a series of hedonic models across different price quantiles. The results indicate a statistically significant price premium for organic and biodynamic wines, the magnitude of which is, however, far smaller than the effects usually identified in surveys and laboratory experiments. While self-declaration is only a credible signal for organic practices generating a price premium of 8.6 percent, biodynamic practices require certification for a price premium of 4.1 percent. The results also suggest that the interaction of collective reputation and biodynamic practices has a significantly positive impact on prices. Thus, this study contributes to global sustainability research by showing that the costs of certification can be avoided since in certain cases self-declaration is sufficient to enable a price premium.

Research on the Factors Affecting the Risk Premium of China’s Green Bond Issuance

Green bonds have both “bond” and “green” attributes and are one of the important financing tools for green financial markets. The green bond risk premium directly reflects the financing cost of bond issuers and the capital gains of investors. A reasonable risk premium is the key to the successful issuance and trading of green bonds. Therefore, this paper studies the factors affecting the risk premium of China’s green bond issuance, aiming to provide a basis for determining a more reasonable risk premium. Based on the primary issuance market of green bonds, this paper takes into account the macro- and microscopic cross-sectional data of green bond issuance and comprehensively considers the main factors affecting the green bond risk premium from macro-influence factors, micro-influence factors, and green attribute factors. An empirical study of the factors affecting the risk premium of China’s green bond issuance was conducted using multivariate statistical regression analysis. The study found that the green attribute factor affecting the risk premium of green bonds is third-party green assessment certification. The bond factors affecting the risk premium of green bond issuance mainly include debt credit rating, issue period, and issue size, all of which affect the risk of green bond issuance. The issuer factors affecting the risk premium of green bonds include debt principal, nature of property rights, and return on net assets. The macro factor affecting the risk premium of green bonds is the current market interest rate.

How to meet reuse and preparation for reuse targets? Shape advertising strategies but be aware of “social washing”

Preparation for reuse (PfR) is a fundamental waste management practice that is second only to prevention in the waste hierarchy. The paper, building on advertising literature, investigates how to leverage the pro-social nature of this option for giving products that have become waste a second life. To examine how advertising strategies based on emotional, functional or combined stimuli can be used to increase intention to buy these items, we carried out an experiment on 507 actual visitors a PfR items shop run by a social cooperative in Northern Italy. We found that, depending on consumers’ social involvement, both emotional and functional stimuli based on the social impact of preparation for reuse tend to outperform functional stimuli and have a positive impact on brand attitudes by shaping attitudes to advertisements. Purchasing behaviour has a positive impact on attitudes toward the PfR organization and moderates the effect of emotional and combines stimuli on attitudes toward the advertisement. Since emotional stimuli can be freely used by both legitimated and opportunistic companies, the former should seek to preserve their value proposition by making it easier for consumers to recognise actually trustworthy organizations. This is possible combining the use of advertisements with the development of solid customer relationships. To this end, awareness campaigns, closer relationships with stakeholders and third-party verifiable standards and certifications should be considered to reduce the risk of “social washing” in the current second-hand market context.

Information asymmetry, third party certification and the integration of organic food value chain in China

PurposeThe purpose of this paper is to discuss characteristics of organic food value chain governance and policy tools that can increase the supply of good quality of agri-products.Design/methodology/approachThis paper discusses a national organic food supply system in China, identifying the link between an organization form with a social confidence crisis and information asymmetry as the main challenges. It develops an analytical model of the market structure of organic certification based on the contract theory, which considers the certification incentive driven by both farmers and processors. Two cases of raw milk producers and processors provide empirical data.FindingsThe argument which is brought forward is that product information asymmetry together with strict requirement for ensuring organic food integrity brings the organic milk value chain into a highly integrated organization pattern. A tight value chain is effective in the governance of organic food supply chain under third party certification (TPC), while a loose value chain discourages producing organic products because of transaction costs. TPC is found to be a positively correlation with a tight value chain, but it brings high organizational cost and it raises cost for consumers.Originality/valueThis is the first paper discussing the governance of organic food value chain in Chinese milk industry.

Self-Enhancement Driven First-Class Airline Travelers’ Behavior: The Moderating Role of Third-Party Certification

This study was designed with a focus on self-enhancement by flying in first class to understand the intricate associations in the formation of well-being, brand attachment, and word-of-mouth. In addition, this study aimed to examine the moderating effect of third-party certification among consequent variables. For this, data were collected from 199 first-class airline travelers. A quantitative method that was comprised of structural equation modeling and multiple-group analysis wasused to test the research hypotheses. Our findings revealed that both achievement and power were significant drivers of well-being perception of first-class airline travelers and their perceived well-being contributed to building positive brand attachment and word-of-mouth. The association between brand attachment and word-of-mouth was also statistically supported. Furthermore, the moderating role of third-party certification was identified in the causal relationship between well-being perception and brand attachment. Implications were discussed along with diverse approaches for customized and exclusive offerings such as butler services pre- and post-flights or during transit at airports, and mini stretching sessions in flights to improve self-enhancement during the whole journey of a first-class experience.

INCORPORATING THIRD-PARTY ONLINE CERTIFICATIONS INTO A MARKETING COURSE: THE EFFECT OF LEARNING STYLE ON STUDENT RESPONSES

To advance the pedagogical discussion on adopting third-party certifications in marketing courses, this article examines responses of undergraduate students with different learning styles to the online certification program incorporated into marketing classes. While the overall student opinions were positive especially as a valuable addition for career preparation, learning styles of each student affected their responses to the certification program delivered through videos, lectures, and online tests. Sensing learners accepted, experienced, and valued the certification program more positively than intuitive learners. Also, compared to global learners, sequential learners reported both more positive experience with and performance on the certification program.

Impact of Quality-Tiering in a Sharing Economy Platform: Evidence from Airbnb

Quality certification is one way for online marketplaces and sharing economy platforms to establish trust and reduce quality uncertainty. While prior work has examined the efficacy of third-party quality certification, little attention has been paid to quality self-certification by the platform itself. In this paper, we examine the economic impact of the launch of Airbnb Plus, wherein the platform inspects properties (for a fee) and provides a quality badge that presumably signals high quality of the property, in terms of style, amenities, maintenance, and reliability of the host. Given the relatively small magnitude of the one-time inspection fee and lack of capacity for ongoing monitoring, it is an empirical question as to whether the Plus badge is a credible signal of quality — or just “cheap talk.” The fact that the Plus service was launched in different cities at different times, and individual listings within the cities received the certification at different times, allows us to identify the economic impact of Airbnb Plus using a difference-in-difference estimation strategy, in conjunction with suitable matching methods. We find that Plus certification increases the weekly booking rate of Plus listings by about 7.6% on average (direct effect). On the other hand, a non-Plus listing sees a 1.5% decline in booking rate when one or more neighboring properties receive a Plus certification (externality effect). The net impact of the Airbnb Plus service on the platform itself is an increase in revenues of over $80,000 per year for the average 2-kilometer zone that includes one or more Plus listings, as compared to matched zones without any Plus listings (local platform effect). These empirical regularities raise some intriguing questions for the future of the sharing economy platform, and whether quality-tiering will help Airbnb to more effectively compete against the hotel industry.

Vinyl makers go sustainable

The Vinyl Sustainability Council has launched an initiative called +Vantage Vinyl to advance sustainability goals for resin suppliers, additive makers, material compounders, vinyl product makers, and others. The effort requires those who sign on to reduce landfill use and emissions and commit to health and safety improvements. So far, eight companies have signed on: Chemours, Formosa Plastics, Mexichem, Occidental Chemical, PolyOne, Shintech, Sika, and Westlake Chemical. The council is hoping to get more than 800 companies in the vinyl value chain, including siding manufacturers and pipe extruders, to sign on in the next 5 to 10 years, Ned Monroe, CEO of the Vinyl Institute, tells C&EN. The trade organization created the council and is helping to underwrite the new program. Program adherents will have to undergo annual third-party certification to verify that they are meeting goals and can use a +Vantage logo on their products. About 60% of pre- and

Stakeholder groups and accountability accreditation of non-profit organizations

PurposeThe purpose of this paper is to test the association between various stakeholder groups and whether nonprofit organizations (NPOs) have obtained accountability accreditation. In particular, the study intends to answer the following research questions: Does the governance of an NPO have any impact on the likelihood that the organization obtains certification? Does an NPO’s investment in executives affect certification efforts? Does employing a professional fundraiser play a significant role in whether an organization seeks accreditation? and Are certification efforts influenced by the relative sophistication of donors of the NPO?Design/methodology/approachData were analyzed by examining information provided in the Internal Revenue Service revised Form 990, Part VI specifically from organizations holding the Standards for Excellence® (SFX) certification. This study uses a size- and sector-matched sample of 228 NPOs (half of which with the SFX certification and half without) to examine the association between accountability and governance in NPOs in both univariate and multivariate contexts.FindingsThe findings of this study indicate that organizations with strong internal governance (indicated by their answers to the governance-related questions in Form 990) are more likely to have obtained certification when compared to a group of nonprofits that did not receive the certification. In addition, nonprofits that invest more in their executives are more likely to receive SFX certification. Interestingly, external stakeholders (donors making restricted gifts, and professional fundraisers) are not associated with the likelihood of holding the SFX certification.Research limitations/implicationsEven though the study has attempted to control for factors that may have contributed to the findings (e.g. a size- and sector-matched peer for each NPO that secures the SFX seal in the final sample), it is not feasible to perfectly tease out all alternative explanations for the findings. Endogeneity issues may still be present given that the sample and comparison groups possess significantly different governance characteristics (i.e. governance scores, board independence, investments on executives).Practical implicationsThe positive association between organization governance and investment in executives and the NPO’s certification credentials implies that certification may be used by these certified organizations as a signaling mechanism for strong governance. This would be consistent with the positive stakeholders’ reactions to NPOs’ accountability certifications that have been documented by Feng et al. (2016). The findings should help NPO board and staff members, researchers, and regulators to further understand the association between stakeholder groups and whether NPOs have obtained accreditation.Originality/valueA thorough search of the relevant literature suggests that this study is the first one to link the association between stakeholder influence (proxied by the NPO’s governance strength, investments in executives, employing a professional fundraiser and donor sophistication) and an NPO’s decision to seek accountability accreditation. The findings should provide insights to stakeholders and researchers interested in examining the value of third-party accountability certifications and signaling mechanisms in NPOs and inform regulators regarding significant stakeholder influence on NPOs’ accreditation decision-making process. The results of this study also add to the body of literature on certification programs for NPOs.

Evolving Silvicultural Practices to Meet Sustainability Objectives in Forested Wetlands of the Southeastern United States

Development and implementation of forestry best management practices (BMPs) to minimize effects on wetland soils and hydrology represents a great success of the Clean Water Act (CWA). The “silvicultural exemption” as specified in Section 404(f) of the CWA allows management activities within jurisdictional forested wetlands so long as practices meet specified criteria and wetlands are not converted to uplands. This is particularly important for establishing and maintaining forest roads and site preparation of harvested stands in jurisdictional wetlands. The presence of poorly drained soils and seasonally high-water tables in the Coastal Plain led to the development of site preparation practices that enhance seedling survival, vigor, and growth. Collaboration among universities, governmental agencies, and the forest products industry has resulted in numerous applied research projects assessing environmental responses to management in forested wetlands. Today, all southeastern Coastal Plain states recommend the use of site preparation BMPs that reduce soil and hydrology disturbances, while facilitating stand regeneration. State forestry agencies routinely monitor BMP implementation to assess application and functionality of BMPs. Additionally, forest landowners and wood procurement entities who participate in voluntary third-party forest certification programs have increased BMP implementation on a scale that contributes to watershed-level benefits.

Efforts toward Creating a Sustainable Business Model: An Empirical Investigation of Small-Scale Certified Forestry Firms in Taiwan

Forest certification plays a notable role in promoting sustainability. This certification shows that forestland holders have adopted innovative practices toward realizing sustainable business models. Relatively little analysis has been devoted to identifying the efforts of transforming a conventional business model into a sustainable version through the application of forest certification. This paper examines the elements of a sustainable business model: value proposition, value creation and delivery, and value capture in certified forestland holders’ business operations. Empirical results have confirmed that certification signifies a successful sustainability transformation within adopting firms. However, these small organizations struggle with obtaining know-how regarding sustainable forest management. There needs to be adequate external support, such as government consultants or academic researchers, in order to successfully adopt third-party forest certification. However, while practicing sustainable forest management activities will not guarantee premium prices, the certification has, in some rare cases, helped to develop a new niche market. Good communication with stakeholders has improved firms’ relationships with local residents, but more channels of communication are still needed to activate green consumers.

Essential Features of Third-Party Certification Programs for Dietary Supplements: A Consensus Statement.

The presence of performance-enhancing drugs in dietary supplements poses serious anti-doping and health risks to athletes and military service members. A positive drug test, suboptimal health, or adverse event can ruin a career in either setting. These populations need to be certain in advance that a product is of high quality and free from performance-enhancing drugs and other banned substances. However, no regulatory authority conducts or mandates a quality review before dietary supplements are sold. Under the Food Drug and Cosmetic Act, the Food and Drug Administration does not have a role in the premarket safety review of dietary supplements. Due to the increasing demand for high-quality, properly labeled dietary supplements, multiple companies have stepped into this void by offering testing and quality review programs for dietary supplements. Each of these third-party programs has its own quality assurance program with varying testing components. It is difficult for consumers in the sport and military settings to assess whether a particular certification program reduces the risks enough so that they can use a product with confidence. This article puts forward the consensus of the authors on current best practices for third-party certification programs for dietary supplements consumed by athletes and military service members. Also discussed are important ways that third-party programs can develop in the future to improve access to safe, high-quality dietary supplements for these populations.

Smallholder participation and procedural compliance with sustainable cocoa certification programs

ABSTRACTThird-party certification programs promise to improve livelihoods and promote sustainable production, yet achieving such goals rests on certification programs working well with smallholder producers. However, little is known about how these programs work in practice from the perspective of smallholder cocoa producers. Furthermore, we do not know if third-party cocoa certification programs work the same way, even within common countries/contexts. Therefore, we examine three different smallholder cocoa certification schemes operating in Ghana to understand how smallholder cocoa farmers perceive the certification program requirements, price premium arrangements, and inspection regimes, among other things. While we find that smallholder cocoa farmers/stakeholders have a positive view of certification programs and their requirements, the results reveal that smallholder cocoa farmers are inadequately informed about the certification programs, disconnected from price premium management, and not participating in the compliance verification regimes required by the various standards. Our findings suggest improvements to the structures and procedures for certification participation, price premium management, and smallholder-level verification may increase the likelihood that third-party certification schemes sustainably improve livelihoods and agroecological systems.

Government regulations and voluntary certifications in food safety in China: A review

BackgroundWith the improvement of living standards, people are paying increasing attention to the quality of food. From the perspective of food companies, there are two driving powers to improve quality: government regulations as the external factor and voluntary certifications as the internal factor. Regulation is an intervention on the market by the government through administrative means. The third-party certification voluntarily sought by companies, which enhances company competitive advantage through improving consumers’ acceptance and recognition, belongs to internal driving force. Scope and approachBeginning with the current food safety situation in China, this paper describes the changes in government regulatory agencies and compares the similarities and differences of regulatory systems with the United States, the European Union and Japan. This study examines the development of the Chinese food safety regulatory system since 1949, which can be a reference to other developing countries. Moreover, this paper explains the current status of product certifications and system certifications in China. Key findings and conclusionsLack of social responsibility, inadequate awareness of food risks, pursuit of short-term economic benefits and poor processing technology are the root causes of food safety incidents in China. Based on the analysis of food safety regulation system in China and comparison with the systems in other developed counties. The authors proposed two suggestions. The first suggestion is to reform food safety system, such as formulating food safety laws, enforcing social supervision and so on. The other suggestion is to encourage small and medium food companies to implement product and system certifications.

Improving End-User Trust in the Quality of Commercial Probiotic Products.

In a rapidly growing global probiotic market, end-users have difficulty distinguishing between high quality and poor quality products. This ambiguity threatens the trust consumers and healthcare providers have in probiotic products. To address this problem, we recommend that companies undergo third-party evaluations to certify probiotic quality and label accuracy. In order to communicate about product quality to end-users, indication of certification on product labels is helpful, although not all manufacturers choose to use this approach. Herein we discuss: third-party certification, the process of setting standards for identity, purity, and quantification of probiotics; some emerging methodologies useful for quality assessment; and some technical challenges unique to managing quality of live microbial products. This review provides insights of an Expert Panel engaged in this process and aims to update the reader on relevant current scientific methodologies. Establishing validated methodologies for all aspects of quality assessment is an essential component of this process and can be facilitated by established organizations, such as United States Pharmacopeia. Emerging methodologies including whole genome sequencing and flow cytometry are poised to play important roles in these processes.

Understanding Food Labels

Have you ever made a purchase based on a food label? Everyone gives food labels a cursory glance, but for the many consumers who wish to make purchasing decisions that reflect their personal and social values, food labels are critical. How do you decipher the myriad of new symbols, logos, certifi­cation claims, and sometimes meaningless informa­tion presented in today’s marketplace? How do you know which labels contain statements that are not regulated by governmental agencies? Can you differentiate third-party certifications from private company claims? In this commentary, we categorize and review a broad array of new label varieties, claims, certifications, and regulations. We then describe a new online, interactive resource for con­sumers to help them improve their understanding of food labels. Finally, we inventory additional teaching tools and resources that may provide educators with other food label curricula for consumers. See the press release for this article.

Foresight for online shopping behavior: a study of attribution for “what next syndrome”

PurposeThe online shopping behavior is the outcome of the variety of attribution from product/ service offering to internet experience. The present study attempts to develop a complete product/service offering by exploring and examining the different combinations of online shopping attributes to provide the customized experience. Therefore, this study aims to fill the gap of customer desired experience and present scenario in online shopping behavior.Design/methodology/approachThe exploration of attributes pertaining to online shopping behavior was done by seeking theoretical support from different technology adoption theories/models and the Delphi technique, exercised with active participants of online and offline shopping. The theoretical and experience shared attributes were devised and social desirability scale (SDS) was used for eliminating the social desirability bias. Further, the questionnaire was administered online and offline during mall intercept. The Conjoint analysis was used to investigate the relative importance and utilities of the attributes and its levels individually and compositely at different levels.FindingsIn the context, brand loyalty, online reputation management and Web interactivity were found most relavant followed by e-WOM, perceived risk and price. The specific levels of attributes such as taking consumer advice, search engine optimization (SEO), perception-based interactivity, consumer message boards, product risk and discount pricing were the crucial in motivating the customers for online shopping. This research affords the avenue for the marketers to motivate and delight consumers to retribalize by the way of “e-tribalizing.”Research limitations/implicationsThe current study was conducted in confined geographical locations and limited in sample size; thus, the issue of generalization may prevail, but forthcoming researchers may exercise the techniques with better probabilistic sampling technique. The mass customization of the website features by comparing attribute orientation of customers around websites was recommended with the third-party certification to reduce the consumers’ perceived risk during online shopping. Finally, the different levels, such as Facebook fan page in ORM and Everyday Low Price (EDLP) in pricing may be considered for the future research work.Originality/valueThe research studies on online shopping behavior with Web interactivity, e-WOM, perceived risk, brand loyalty, ORM and price using a decompositional technique are scant. This study persuades the customers to go for online shopping by putting them in the almost real-time purchasing scenario. The study confirmed the need of people to retribalize through e-tribalization by the way of customization for the masses in the context of online shopping.

Dynamic Relational Contracts for Quality Enforcement in Supply Chains

We model the interaction of a single buyer with a single supplier within a market in a developing country with homogeneous local suppliers and homogeneous buyers from developed nations. The buyer sources a product from a supplier and then inspects and sells it on the market, subject to quality standards such as regulations about chemical content. Suppliers decide how much effort to exert to ensure compliance with quality standards. Buyers are assumed to comply with contracts because they are based in countries with strong legal systems. We assume that legal enforcement of the supplier’s contractual obligations is not possible. We model the interaction between buyer and supplier as a repeated game in which the partnership can be terminated by the buyer if the supplier refuses to pay penalties for quality violations. After termination, the buyer and supplier each search for a new business partner. We model the interaction between buyer and supplier using relational contacts in which penalties for quality failures are set so that the supplier voluntarily pays them. We show that optimal relational contracts have dynamic form in this setting because the value of the outside option available to the parties, if the relationship is terminated, is determined by the contract terms. We characterize the properties of the optimal dynamic equilibria and analyze the use of third-party quality certifications within this framework. The online appendix is available at https://doi.org/10.1287/mnsc.2017.2990 . This paper was accepted by Martin Lariviere, operations management.

The Impact of B Lab Certification on Firm Growth

We investigate the impact of B Lab certification—a rapidly growing type of third-party certification for organizations with social and/or environmental missions—on the short-term growth rates of ce...