The performance measurement perspectives and causal relationship for ISO‐certified companies: A case of opto‐electronic industry

Abstract

Purpose

Using opto‐electronic industries as the example, the purpose of this paper is to include: designing reliable performance perspectives and indicators for evaluating ISO‐certified industries; and constructing a performance relationship model of those ISO‐certified industries.

Design/methodology/approach

This paper introduces the concept of the balanced scorecard as the performance measurement for ISO‐certified industries, and adopts structural equation modelling to verify the causal relationship amongst the performance perspectives. The paper takes three opto‐electronic companies in Taiwan as evidence cases. The valid response numbers to the survey are 177.

Findings

The research results indicate that the performance measurement indicators developed by this paper are effective in the ISO‐certified opto‐electronic industries. The evaluation indicators are comprised of five perspectives: finance, customer, internal process, learning and growing, and corporate mission. A causal relationship is found to exist among the five perspectives.

Research limitations/implications

This paper uses only the opto‐electronic industry as the research case. However, different industry types can have different research findings and this will lead to different results.

Practical implications

Applying the proposed measurement indicators and model would aid enterprises to effectively measure the effect of being ISO‐certified, and understanding the causal relationships amongst performance perspectives. Thus, enterprises could identify all determining items of performance and use these results as a basis for further improvement.

Originality/value

This paper aims to establish performance measurement indicators and a relationship model for the manufacturing industry certified by ISO. A set of performance measurement indicators and a relationship model are derived. This paper has made a contribution to the academic and practical areas.

Citation

Wu, S. and Liu, S. (2010), "The performance measurement perspectives and causal relationship for ISO‐certified companies: A case of opto‐electronic industry", International Journal of Quality & Reliability Management, Vol. 27 No. 1, pp. 27-47. https://doi.org/10.1108/02656711011009290