Shedding light on causation between ISO 9001 and improved business performance (original) (raw)
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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.
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.
ISO 9001 Certification: Motivations, Benefits and Impact on Organizational Performance
After more than two decades of intensive research focused on quality improvement concerns, ISO 9001 issues are still an important field of research in management in general, and in operations' management in particular, and are still important for both practitioners and academics. In such context, the main objective of this study is to analyze the most important motivations for ISO 9001 certification of an organization Quality Management System (QMS) and the major benefits of certification. We also studied if the motivations underlying this decision, as well as the resulting benefits, are related with company size. A second objective is to study how ISO 9001 certification impacted on organizational performance and, consequently, how satisfied organizations are. A questionnaire was sent, by e-mail, to a sample of certified transport companies. Results indicate that:
Management systems (such as ISO 9000, ISO 14000 or similar) have become worldwide the most commonly accepted series of business standards, and certification to one of these standards is becoming a necessary precondition for a company's survival in the future. Literature review collects different kind of relationships between management systems (MS) and business performance. The purpose of this study is the effectiveness and validity of MS, in explaining key factors in their achievement of business success. This work is original because there is very little evidence about this topic in Argentina. In order to understand the effect of MS implementation on firm performance, management systems certified and non-certified firms were investigated statistically to determine any significant difference between them. The sample has 3767 Argentina small and medium manufacturing companies, and data was collected in 2008. The methodology consists in statistical univariate analysis – using Pea...
The effect of the ISO 9001 quality management system on the performance of SMEs
International Journal of Quality & Reliability Management, 2012
PurposeThe purpose of this study is to examine whether there is a difference between ISO 9001 certified and non‐certified companies in terms of performance.Design/methodology/approachIn order to determine the effect of certification on performance, motivations for certification and companies' quality practices have been considered as factors. A survey was carried out with 255 small to medium‐sized enterprises (SMEs) in Turkey. The differences between certified and non‐certified companies in terms of performance and quality practices were examined by one‐way analysis of variance (one‐way ANOVA).FindingsThe results showed no statistically significant difference between certified and non‐certified companies in terms of performance. Certification showed no direct effect on performance. Also it has been claimed that the quality practices of certified companies was higher than those of non‐certified companies, according to results it is showing a statistically significant difference, ...
Total Quality Management & Business Excellence, 2002
An analysis of 143 ® rms in the Greek manufacturing and service sectors reveals that adopters of ISO 9000 quality assurance schemes are larger companies producing intermediate goods, but less pro® table and with higher leverage than their non-adopter counterparts. The eþ ects of adopting an ISO 9000 scheme on ® rm performance and especially on certain dimensions of pro® tability are not signi® cant in a period of 5-6 years after adoption. Evidence suggests that the adoption of an ISO 9000 quality assurance scheme, being a continuous process of improvement, is bene® cial in the long term and does not necessarily improve ® nancial ratios in the short term. Active support policies for the promotion and dissemination of quality standards in the manufacturing and service sectors of Greece can be reconsidered and a more targeted policy should be implemented. Future research may be designed and implemented so that long-term and strategic eþ ects of the adoption of the new ISO 9000:2000 standards are revealed.
Advances and Applications in Statistics
In Morocco, the study of the effects of an ISO 9001 certified Quality Management System 'QMS' on service firm performance is rarely studied. At a worldwide scale, researchers have found negative, positive, and even mixed effects. It is the combination of these observations that led to this study. The objective of this paper is to provide a conceptual model measuring the impact: • Of an ISO 9001 certified QMS on commercial performance. • Management resources process and all the processes of this QMS. • Organizational performance on commercial performance. To realize this work, we used structural modelling according to the PLS approach on a sample of 55 questionnaires. Although the extent of influence is not substantial, the causal model put forth in this article has highlighted the presence of a positive correlation between some criteria of a certified QMS and commercial performance. Also, organizational performance has a positive and medium impact on commercial performance. Finally, we proved that criterion 'management resources' positively influences the QMS process.
Statistics in Transition new series
Implemented by an increasing number of organisations worldwide, the ISO 9001 standard for quality management received considerable attention in the existing literature. Researchers worldwide have found positive, negative and even mixed effects of ISO 9001 certification on firms’ performance, while in Morocco this issue has been rarely examined. It is the combination of these observations that led to this study. The aim of this paper is to test and validate a causal model designed to measure the performance of an ISO 9001 certified Quality Management System (QMS) and its impact on a company’s financial performance. By means of this causal analysis/model, the study examines the relationship between: • QMS and the financial performance of 41 companies based in Morocco; • the management responsibility process and all the QMS processes; • the management resources process and all the QMS processes; • the organisational and financial performance of the studied companies. All of the conside...
Capitalising on ISO 9001 benefits for strategic results
International Journal of Quality & Reliability Management, 2010
PurposeThe purpose of this paper is to identify and classify potential and verified benefits of implementing quality management systems (QMSs) according to ISO 9000 standards.Design/methodology/approachThe research is based on a comprehensive review of the relevant literature, mostly articles relating to implementation of the ISO 9000 QMS and its impact on customer satisfaction and business performance.FindingsThe literature adduces possible benefits of the effective implementation of the ISO 9000 QMS and searches for related support in published empirical research. The paper classifies the major identified and empirically verified benefits into four groups in relation to the balanced scorecard (BSC) approach to categorising company objectives. It also relates the potential benefits to specific standard requirements and the pre‐conditions that must be met in the implementation stage of the ISO 9001 in order to attain these benefits.Research limitations/implicationsThis study of the ...
IEEE Transactions on Engineering Management, 2004
ISO 9000 is a management standard that provides customers with assurance that their registered suppliers have a consistent quality system to which they adhere. This paper draws on four sources to show how ISO 9000 can lead to performance improvement: 1) theories of induced innovation and improvisation; 2) the literature on ISO 9000; 3) a case study of a telecom company; and 4) a survey of 1,150 North American companies. We find that the extent to which ISO 9000 is associated with performance improvement depends on the level of its assimilation, and the degree to which an organization goes beyond the minimal requirements of the standard.