Why Firms Seek Iso 9000 Certification: Regulatory Compliance or Competitive Advantage? (original) (raw)
Related papers
International Journal of Quality & Reliability Management, 2002
Although there is a plethora of research articles that study ISO 9000 quality management systems and their association with business success, there is little empirical research that can attribute causality to certification. Contributes to the question of causality, through a comparison against a control group of the actual sales and profitability of 400 certified companies pre and post registration. Using a longitudinal methodology finds that, although the performance of certified companies is superior to that of 400 non-certified firms, there is no evidence of improved performance after registration in the 400 certified firms studied. Concludes, from these findings, that the superior performance of certified firms is due to firms with superior performance having a greater propensity to pursue ISO 9000 registration. Illustrates the potential dangers in inferring that ISO 9000 certification leads to superior business performance. Additionally the findings should give pause for thought for decision-makers. Certification is a major investment yet the findings show that inflated expectations of performance improvement after ISO 9000 accreditation may be unfounded.
Does ISO 9000 certification affect the dimensions of quality used for competitive advantage?
European Management Journal, 2000
Review 65(6), 101-109] eight dimensions of quality have become a widely accepted taxonomy for discussions of product quality. These dimensions were used as the basis for evaluating the impacts of ISO 9000 certification on companies' product quality. Eleven ISO 9000 certified companies in Europe were studied to determine if and how ISO 9000 certification impacted the dimensions of quality relevant to their success. Results indicated that, for the companies studied, quality does improve as a result of ISO 9000 certification. Furthermore, results suggested that the reasons for seeking certification can influence the degree to which quality is improved.
A critical examination of the ability of ISO 9000 certification to lead to a competitive advantage
The ISO 9000 series of standards has formalized systems for evaluating the ability of any firm to consistently design, produce, and deliver quality products and services. Despite its widespread international acceptance, ISO 9000 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of lSO 9000, which is viewed as either a variant of Total Quality Management (TQM) or a paper-driven process of limited value. The primary objective of this article is to address the competing views of the standard in an attempt to show that ISO 9000 certification can be leveraged into a competitive advantage.
The longitudinal effects of the ISO 9000 certification process on business performance
European Journal of Operational Research, 2003
This paper develops and tests several hypotheses relating to ISO 9000 quality system certification process using data collected in a cross-sectional study undertaken in Australia. Multivariate analysis is used to analyze the quantitative data and test the hypotheses. Our findings show that there is a significant and positive relationship between the managerÕs motives for adopting ISO 9000 certification and business performance. Those organizations that pursue certification willingly and positively across a broad spread of objectives are more likely to report improved organizational performance. The individual element found to contribute most to business performance was customer focus. The principal motivation to pursue ISO 9000 certification was found to come from customer pressure. Auditing style was found to have an insignificant (positive or negative) effect on business performance. The ability of the new ISO 9001-2000 standard to capture and meet the conformance and performance requirements of the organization as part of a continuous improvement strategy will be a prime determinant of the extent to which managers embrace or reject ISO 9000 certification in the 21st century.
Shedding light on causation between ISO 9001 and improved business performance
2008
Purpose -The adoption of the ISO 9001 Quality Management Systems Standard has proven to be a persistent and growing phenomenon in services and manufacturing, yet to date little research has been done that can indicate how far improved business performance can be attributed to it rather than counter-intuitive causes. The paper aims to examine the evidence for the causal links between quality management system certification and improved performance in the empirical literature. Design/methodology/approach -A method is proposed for testing how far performance improvement can be attributed to quality management system certification and how far attribution to other causes applies. This method is illustrated on a longitudinal study and then utilised to interpret the findings of other longitudinal studies. Findings -It is concluded that although there is some evidence to indicate that quality management system certification has some causal influence on business performance, there is also evidence for the existence of a substantial mechanism whereby better performing firms self-select to adopt certification. Possible causes for this mechanism are discussed.
Reasons for decertification of ISO 9001. An empirical study
Innovar
In the past few years, and in a number of countries, there has been a noticeable increase in the number of organizations withdrawing from the Quality Management System standard iso 9001. Hence the need to analyze this phenomenon of decertification and to explain not only the extent to which it is taking place but also why companies are taking such decision. This study analyzes the reasons for withdrawing from ISO 9001 using data obtained from quality managers at 130 Polish organizations which opted out of certification in 2012 and 2013. The data shows that the most important reasons for withdrawal were related to internal factors, such as financial problems within the organizations, a perceived lack of added value from certification, and organizational changes (such as internal restructuring). There were also external factors: customer-driven reasons for the decision to withdraw were also given. Using this data we provide a classification of the reasons for decertification, which ca...
The Financial Impact of ISO 9000 Certification in the US: An Empirical
2004
The ISO 9000 series of quality management systems standards, introduced in 1986, has been adopted at over 560,000 locations worldwide. Anecdotal evidence suggests that firms can achieve internal benefits such as quality or productivity improvements, or that certification can help firms maintain or increase their market share, or both. Others argue that the standard is too generic to cause performance improvement, but can be seen as a signal of good management. In this paper, we track financial performance from 1987 to 1997 of all publicly traded ISO 9000 certified manufacturing firms in the US with SIC codes 2000-3999, and test whether ISO 9000 certification leads to productivity improvements, market benefits, and improved financial performance. We employ event study methods, matching each certified firm to a control group of one or more non-certified firms in the same industry with similar precertification size and/or return on assets. We find that firms’ decision to seek their fir...
ISO 9000: marketing motivations and benefits
International Journal of Quality & Reliability Management, 1997
The largest-ever national survey of the international quality management system, ISO 9000 (BS EN ISO 9000), which has been installed in 95,000 companies internationalIy, is the subject of a survey reported here. Specifically, the paper reports the marketing considerations which motivate companies to seek certification and the marketing benefits which accrue from certification. Mail surveys were carried out on 4,250 certificated organizations; 1,220, (28.7 per cent) responded. Marketing considerations were secondary in seeking registration, and outcomes related to profitabilty and process improvement were more highly valued than marketing benefits. IJQRM 14,9
Science and Industrial Engineering, 2023
The International Organization for Standardization (ISO), is a non-governmental and independent organization that aims to promote and establish voluntary standards to improve organizations' quality consciousness for customers. ISO standards are designed to help organizations operate more efficiently and effectively, reduce waste and errors, and enhance customer satisfaction. These standards cover a broad range of areas, such as quality management, environmental management, information security, and social responsibility. Organizations seek ISO certification to demonstrate their commitment to meeting these standards and to enhance their reputation in the marketplace. By obtaining ISO certification, companies can improve their customer relationship management by showing that they have implemented processes and procedures that are in line with international standards for quality and efficiency. This study seeks to determine whether ISO certification leads to improvements in firms' efficiency by analyzing their performance before and after certification. The study uses a descriptive research method, which involves collecting data through surveys, interviews, and other methods to gain a deeper understanding of the benefits of ISO certification. The results of the study show that the selected companies have made significant progress in productivity, profitability, and other administrative areas after adopting ISO standards compared to their performance before certification. This improvement can be attributed to the adoption of ISO standards, which have helped the company identify areas for improvement, implement better processes and procedures, and reduce waste and errors. Overall, ISO certification can be an effective way for organizations to improve their operations and enhance their reputation in the marketplace. By adopting ISO standards, companies can demonstrate their commitment to quality, efficiency, and customer satisfaction, which can ultimately lead to greater success and profitability.
The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis
Management Science, 2005
T he ISO 9000 series of quality management systems standards, introduced in 1986, has been adopted at over 560,000 locations worldwide. Anecdotal evidence suggests that firms can achieve internal benefits such as quality or productivity improvements or that certification can help firms maintain or increase their market share, or both. Others argue that the standard is too generic to cause performance improvement but can be seen as a signal of good management. In this paper, we track financial performance from 1987 to 1997 of all publicly traded ISO 9000 certified manufacturing firms in the United States with SIC codes 2000-3999, and test whether ISO 9000 certification leads to productivity improvements, market benefits, and improved financial performance. We employ event-study methods, matching each certified firm to a control group of one or more noncertified firms in the same industry with similar precertification size and/or return on assets. We find that firms' decision to seek their first ISO 9000 certification was indeed followed by significant abnormal improvements in financial performance, though the exact timing and magnitude of this effect depend on the specification of the control group. Three years after certification, the certified firms do display strongly significant abnormal performance under all control-group specifications. The degree to which the precise results vary across control-group specifications indicates that event studies should always include extensive sensitivity analysis, for instance matching by size and performance separately and jointly, using both single firms and portfolios as controls.