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Article
Publication date: 11 January 2011

Daniel I. Prajogo

Firms' motives in adopting ISO 9000 have been considered as one of the primary factors in determining benefits of the implementation of the standard. Literature commonly…

Abstract

Purpose

Firms' motives in adopting ISO 9000 have been considered as one of the primary factors in determining benefits of the implementation of the standard. Literature commonly categorized motives for adopting ISO 9000 into two types, internal and external. The purpose of this paper is to examine three major strategic roles which these two types of motives play in affecting the result of the ISO 9000 adoption, namely goal, driver, and context. As a goal, motives reflect the firms' strategic outcomes in adopting ISO 9000. As a driver, motives determine the way firms implement the standard, and as a context, motives moderate the effect of implementation on firms' performance as the outcomes of ISO 9000 adoption.

Design/methodology/approach

Data were collected from 328 middle and senior managers of ISO 9001 certified firms in Australia who were responsible for managing quality system in their organizations.

Findings

Consistent with predictions, internal motives had a positive relationship with operational performance and implementation. Furthermore, from a strategic fit perspective, internal motives strengthened the relationship between implementation and performance. In contrast, external motives had no statistically significant relationship with performance and weakened the relationship between implementation and performance.

Practical implications

The results provide key insights for managers to appropriately evaluate their ISO 9000 certification motives and to give attention to the implementation of ISO 9000 standards. Firms can thus gain a better understanding of how performance is shaped from both the motives for and the implementation process of ISO 9000.

Originality/value

This paper is the first which articulates the multiple roles of firms' motives for adopting the ISO 9000 standard and examines their effects on firms' performance.

Details

International Journal of Operations & Production Management, vol. 31 no. 1
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 January 2004

Efthalia Dimara, Dimitris Skuras, Kostas Tsekouras and Stavros Goutsos

The ISO 9000 scheme has been reproved for being a paper driven process with little if no impact on firm performance. As international scientific literature indicates a…

Abstract

The ISO 9000 scheme has been reproved for being a paper driven process with little if no impact on firm performance. As international scientific literature indicates a wide range of factors leading to the adoption of the ISO 9000 schemes, the impact of this adoption should be viewed and examined in a framework of the firms’ strategic orientation. A sample of Greek businesses that adopted the ISO 9000 scheme in the early 1990s is classified into three categories of strategic orientation, namely cost leadership, market differentiation and focus strategy. If all the firms are pooled together, there is no significant difference in their financial performance indicators after a period of six years following the adoption of ISO 9000. However, if the firms are examined separately and according to their strategic orientation, those firms pursuing a cost leadership strategy present statistically significant growth of financial profitability indicators, while those firms pursuing a market differentiation strategy present statistically significant growth of their turnover and market share. Thus, strategic orientation is a moderating factor influencing the relationship between registration to a quality scheme such as the ISO 9000 scheme, and the firm's financial performance.

Details

International Journal of Quality & Reliability Management, vol. 21 no. 1
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 5 January 2015

Prodromos Chatzoglou, Dimitrios Chatzoudes and Nikolaos Kipraios

The purpose of this paper is to explore the relationship between the acquisition of an ISO 9000 certification and the overall financial performance of the certified firms…

Abstract

Purpose

The purpose of this paper is to explore the relationship between the acquisition of an ISO 9000 certification and the overall financial performance of the certified firms. More specifically, the study proposes a multidimensional conceptual framework, including “customers’ demand”, “ISO adoption”, “operation efficiency”, “market efficiency” and “overall financial performance”. Such a multidimensional approach has randomly been explored in the existing literature, making the examination of the proposed conceptual framework an interesting research topic.

Design/methodology/approach

The proposed conceptual framework was tested on a sample of Greek ISO 9000-certified companies of various economic sectors. Quality managers were used as key respondents. The final sample consisted of 168 companies. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analyzed using the structural equation modelling technique. The findings are based on the 2000 version of the ISO series, which is generally accepted and has widespread use, as it has eliminated most of the disadvantages of the 1994 version. The present study is empirical (it is based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire).

Findings

The findings of the study provide strong evidence that ISO 9000 implementation is highly associated with improvements in overall financial performance. Moreover, it was found that ISO implementation is directly associated with significant improvements in quality awareness, operations execution, market share, customer satisfaction and sales revenue. Finally, customers’ demand was not found to be the most important motivation for implementing an ISO certification. Rather, it seems that companies seek for quality improvement due to internal motives.

Research limitations/implications

A limitation stemming from the implemented methodology is the use of self-report scales to measure the constructs of the proposed model. Moreover, the present paper lacks a longitudinal approach, since it is cross-sectional and provides a static picture of ISO implementation.

Practical implications

The paper makes an analytical effort in order to point out areas that companies should emphasize in order to successfully implement ISO 9000 and, therefore, harvest its potential benefits. Certain practical implications are offered in the final part of the paper.

Originality/value

The paper proposes an enhanced conceptual framework that examines vital issues concerning the successful implementation of ISO 9000, thus, providing valuable outcomes for decision makers and academics. Moreover, the results of the study may be generalized in other developed countries whose economy faces similar significant challenges as Greece.

Details

International Journal of Operations & Production Management, vol. 35 no. 1
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 7 September 2012

Francisco Starke, Rangamohan V. Eunni, Nuno Manoel Martins Dias Fouto and Claudio Felisoni de Angelo

The purpose of this paper is to investigate the impact of ISO 9000 certification on three dimensions of firm performance that are theoretically derived to have a…

Abstract

Purpose

The purpose of this paper is to investigate the impact of ISO 9000 certification on three dimensions of firm performance that are theoretically derived to have a relationship with the adoption of ISO 9000 standards, namely, sales revenue, cost of goods sold/sales revenue, and the asset turnover ratio (sales/total assets).

Design/methodology/approach

Employing a panel data approach covering all publicly traded companies in Brazil that had adopted the ISO 9000 standards from 1995 to 2006, the authors investigate the impact of the certification on firm performance using three categories of economic regression models: the pooling of cutting data with ordinary least squares, the fixed effects and the random effects.

Findings

ISO 9000 certification is found to be associated with an increase in sales revenues, decrease in cost of goods sold/sales revenue and increase in the asset turnover ratios of the certified firms.

Research limitations/implications

The research findings suggest that companies large or small, irrespective of their capital structure (i.e. debt/equity) and cutting across industries will benefit from the adoption of ISO 9000 standards. However, the extent to which firms benefit from such adoption is likely to vary. Moreover, the generalizability of the research findings is limited by the size of the sample.

Originality/value

The paper's chief contribution lies in the validation of the signaling theory in the context of business organizations and extending the domain of research on this topic to emerging markets generally.

Details

Management Research Review, vol. 35 no. 10
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 6 February 2007

Olivier Boiral and Marie‐Josée Roy

The purpose of this paper is to present the results of an empirical study of the impact of motivational factors underlying ISO 9000 certification on several aspects of…

Abstract

Purpose

The purpose of this paper is to present the results of an empirical study of the impact of motivational factors underlying ISO 9000 certification on several aspects of organizational performance.

Design/methodology/approach

An extension of a typology based on motivational factors is proposed and four integration rationales (quality enthusiasts, ISO integrators, ritual integrators, and dissidents) are exposed. The paper then evaluates how each of these four rationales related to potential organizational problems and benefits. Various statistical analyses were conducted on data obtained from a sample of 872 certified Canadian firms. A factor analysis was completed to develop an instrument allowing to develop a typology distinguishing between the four integration rationales.

Findings

The results demonstrate that the nature and intensity of motivations behind a decision to adopt the ISO 9000 standard play a key role in the success of the implementation process and the emergence of organizational problems arising from certification.

Research limitations/implications

The main contribution of the study was to develop a typology of certified organizations based on a theoretical framework explaining some paradoxes and pervasive effects of ISO 9000 adoption.

Practical implications

The typology helps characterize certified firms and anticipate potential consequences ancillary to the certification process; it can assist firms in evaluating whether they should go forward with the certification process.

Originality/value

Contrary to many studies focusing on traditional performance criteria only, this study sheds light on organizational problems and the possible ineffectiveness of ISO 9000 certification depending on their integration rationale. This approach led to a more comprehensive and tempered vision of ISO 9000 impacts.

Details

International Journal of Operations & Production Management, vol. 27 no. 2
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 10 August 2020

Efrosini Siougle and Sophia Dimelis

This is a longitudinal study exploring the effect of ISO 9000 certification on firm's financial performance in the pre-crisis period and the 2008 financial crisis period.

Abstract

Purpose

This is a longitudinal study exploring the effect of ISO 9000 certification on firm's financial performance in the pre-crisis period and the 2008 financial crisis period.

Design/methodology/approach

The empirical analysis is based on a 22-year dataset with balance sheet data from 136 Greek listed firms covering the period 1992–2013. A matching technique is applied to properly estimate potential differences in the impact of ISO 9000 on firm's financial performance between the groups of certified and matched non-certified (control) firms in the entire period but, most importantly, in pre-crisis vs crisis periods, using the difference-in-differences econometric approach.

Findings

The findings indicate that certified firms exhibit significantly higher financial performance relative to the matched non-certified group in both the pre-crisis and crisis periods, which tends to persist for several years post-certification. The financial crisis has a negative and statistically significant effect on firm performance in both the certified and matched non-certified groups, which nevertheless did not differ significantly between them. Controlling for sectoral and technological differences did not harm the higher performance of certified firms relative to the matched control peers. The results remain in the same direction when the authors test the ISO 9000 effect in the sub-group of certified firms that obtained the certification at the firm-level.

Originality/value

The study is original in its sample design and hypothesis testing. The matched sample created from a sufficiently long and continuous time dataset enabled the authors to properly estimate firm performance differences of ISO 9000 between pre-crisis and crisis periods. Of additional value is the testing of sectoral/technological differences and the distinction between firm-level and plant-level certification.

Details

International Journal of Quality & Reliability Management, vol. 38 no. 3
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 19 April 2011

Dong‐Young Kim, Vinod Kumar and Uma Kumar

The purpose of this study is to propose a performance realization framework based on key factors of ISO 9000 implementation.

Abstract

Purpose

The purpose of this study is to propose a performance realization framework based on key factors of ISO 9000 implementation.

Design/methodology/approach

A three‐stage approach of a systematic review is employed to examine the literature and develop the framework. The review is concentrated on three research topics: motivations; critical success factors; and impacts of ISO 9000 implementation.

Findings

This study identifies five motivation factors (quality‐related; operations‐related; competitiveness‐related; external pressure‐related; organizational image‐related factors) and ten critical success factors (leadership; training; involvement of everyone; organizational resource; quality‐oriented culture; customer‐based approach; process‐centered approach; communication and teamwork; customizing the ISO requirements; quality audit). This study also develops a performance realization framework composed of three parts: conversion; enhancement; and competitive priority stages.

Originality/value

This study contributes to the development of the literature by providing a set of motivation factors and of critical success factors that can assist practitioners to effectively implement the standard. Further, the proposed framework helps to explain causal relationships among ISO 9000 impacts and provide guidelines about critical considerations.

Details

International Journal of Quality & Reliability Management, vol. 28 no. 4
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 1 August 2003

Hayat M. Awan and M. Ishaq Bhatti

Recently, ISO 9000 and its associated versions are rapidly becoming a “license to compete” worldwide. Its standards are generic in the way that they can be applied to all…

Abstract

Recently, ISO 9000 and its associated versions are rapidly becoming a “license to compete” worldwide. Its standards are generic in the way that they can be applied to all functions and all industries in various areas of human endeavor. They have been described as the “one size fits all” standards. In developing countries like Pakistan, adoption and implementation of ISO 9000 quality management system is slow due to lack of awareness and initiatives. The present study is an attempt to analyze different practices of ISO 9000, like its status, problems faced (before, during and after implementations), benefits gained, its impact, certification cost, the next step after ISO’s 9000 certification, critical success factors, the role of training, consultancy, top management support, use of ISO 9000 in the international markets, future prospects and in particular, general practices of ISO 9000 in the Sports Industry of Pakistan. In this study, detailed case studies clearly explain the current status and existing practices of ISO 9000 in the sports industry.

Details

Managerial Finance, vol. 29 no. 7
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 February 2006

Hesham A.E. Magd

The purpose of this paper is to evaluate the results from a survey on ISO 9000 certified manufacturing companies in Saudi Arabia.

Abstract

Purpose

The purpose of this paper is to evaluate the results from a survey on ISO 9000 certified manufacturing companies in Saudi Arabia.

Design/methodology/approach

An empirical survey of 175 certified manufacturing firms in Saudi Arabia. This study is focused on the benefits achieved from ISO 9000 implementation, level of satisfaction with the standard, the anticipated steps after ISO 9000 implementation, factors influencing the choice of registration agencies and the associated problems with registration agencies.

Findings

Certified firms in Saudi Arabia have performed well in their registration process and have benefited from ISO implementation. This could be due to the high level of interest in the area of quality, as most customers request quality or a certificate to prove existence of quality products/services.

Research limitations/implications

For effective implementation of the standard in other organizations, the study recommended that organizations should plan carefully, measuring internal as well as external aspects and performing cost‐effective analysis of the implementation process. Also they should use gap analysis to assess their actual abilities against ISO requirements. When this study was performed, the number of certified organizations was still small, constraining more in depth research in this area.

Originality/value

Adds to the body of knowledge concerning the ISO 9000 with particular interest on Saudi Arabia.

Details

Managerial Auditing Journal, vol. 21 no. 2
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 1 February 2004

Hongyi Sun, Sapphire Li, Karis Ho, Frank Gertsen, Poul Hansen and Jan Frick

This paper investigates the pattern or trajectory of implementing ISO 9000 standards versus TQM in Western Europe from a longitudinal perspective, using empirical data…

Abstract

This paper investigates the pattern or trajectory of implementing ISO 9000 standards versus TQM in Western Europe from a longitudinal perspective, using empirical data. The research is based on three large‐scale surveys conducted in 1992‐1993, 1996‐1997 and 2001‐2002 respectively, in 13 Western European countries. The results of the surveys show that European companies have put considerable effort into ISO 9000 certification. However, the results also reveal that, around 1996‐1997, European companies had also planned to implement TQM. However, the result of the planned “go beyond ISO to TQM” fell short of the anticipated extent, indicating that the adoption of TQM in Europe was slower than expected. Early in the twenty‐first century, European companies are still very keen on implementing TQM, indicating an obvious intention to shift from ISO 9000 to TQM. To ensure that the shift will occur this time however, the two approaches must be integrated properly. Although both ISO 9000 standards and the TQM/EFQM model have been recently updated or modified, how to best incorporate the two systems remains one of the major tasks of quality management in the future.

Details

International Journal of Quality & Reliability Management, vol. 21 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

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