Impact of ISO 9000 certification on firm performance: evidence from Brazil

Quality certification and firm performance. The mediation of human capital

Purpose

This paper investigates the impact of adopting quality management standards like ISO9001 on a firm's performance and the mediator role of human capabilities within firms in this relationship. The article analyses this mediator effect in the context of an emerging economy that set a policy reform aimed at increase ISO adoption and with a large share of informal labour markets.

Design/methodology/approach

This study implements a quantitative approach, applying a Difference in Differences-DiD model with a Propensity Score Matching on fixed effect panel data analysis of a sample of certified and non-certified firms using firm-level data obtained from the national statistics office of Colombia. This methodology allows having comparable groups before the policy implementation. It reduces differences in observable characteristics and controls for parallel trends in primary outcomes before the policy reform.

Findings

The research findings suggest that after Colombian policy reform of the quality system (2006), firms that adopted ISO 9001 certification increased innovation (5.2%), labour productivity (4.6%), sales (5.7%) and wages (4.9%). Furthermore, it shows that the share of permanent workers is an essential mediator in adopting quality programs. Adopters firms with a large percentage of temporary workers weaken their initial investment in quality infrastructure.

Research limitations/implications

This research does not consider one key aspect. This is the lack of information about the organizational culture inside Colombian organizations that is related to a successful implementation of Quality Management standards like ISO 9001. However, it does not affect the conclusion about the mediation effect of human capital in the relationship between ISO 9001 and firm performance.

Practical implications

The study covered all the Colombian manufacturing firms with ten or more employees. It provides critical insight for managers to value implementing ISO 9001 certification and appropriately put attention to enhancing their firms' human capital in emerging economies. Also, a policy implication of the paper is that governmental efforts to strengthen quality infrastructure in emerging economies should also include steps to increase a firm's investment in human capital.

Originality/value

This study provides further support for government policies to strengthen firms' incentives to adopt modern management practices. The strong effects of implementing these management practices on sales, productivity and innovation have been identified. Furthermore, the investments in quality infrastructure must be accompanied by investment in human capital and workforce stability.

Exploring Corporate Social Responsibility in the Italian wine sector through websites

Purpose

This paper aims to explore how the Italian wine industry discloses corporate social responsibility (CSR) practices and quality certifications and the corresponding determinants via websites. The study also aims to investigate the relationship between CSR practices and financial performance. The information consistency between the quality certificates reported on corporate websites and official database statements is also explored. Lastly, the paper investigates how the relationship between the size of wineries and CSR disclosure changes according to firms' geographic location.

Design/methodology/approach

This paper analyses CSR corporate communication via the websites of a sample of Italian wineries by adjusting the theoretical framework developed by Amran (2012) to the wine sector's peculiarities. Moreover, a cross-certification analysis and a moderation analysis were performed to fulfil the purpose of the research.

Findings

The analysis revealed the extensive use of CSR disclosure via websites. It was found that company size positively affects CSR disclosure and Quality Certification Disclosure (QCD), while geographic location slightly moderates the relationship between the two variables. In addition, a negative relationship between CSR disclosure and corporate financial performance and its reverse causality emerged. Moreover, for most wineries, information consistency between the quality certificates reported on corporate websites and official database statements was observed.

Research limitations/implications

The study's main limitation is that the search process was performed during lockdown. Therefore, the examined issues could change in the near future due to the shift in priorities that the COVID-19 pandemic is determining.

Practical implications

The results can help managers implement CSR disclosure and QCD practices to enhance stakeholder legitimacy and enable their companies to compete in strongly competitive international markets.

Originality/value

The paper represents the first study investigating online QCD and its consistency in the Italian wine sector.

Sustainable HRM Practices in Corporate Reporting

Shaped by the current turbulent era of macroeconomic forces, inclusive of the technological challenges of Industry 4.0, and ubiquitous uncertainties, the business environment and its stakeholders hold high expectations for sustainable organizational practices, including harmonized and comprehensible sustainability reporting. Increasingly, responsible behavior towards internal stakeholders comes from within organizations, valuing employees as a key asset and introducing sustainable human resource management (S-HRM) practices to motivate their workforce. Reporting on these S-HRM practices and sustainability is in the highest interests of managers and investors alike. Focusing on the involved parties, employees most particularly, the paper contributes to the stakeholder theory. The literature review, previous S-HRM studies’ interpretation and their critical assessment, the GRI standards’ comparative analysis, and Lawshe’s content validity approach have been applied as the methodological framework. With the purpose to extend the scientific literature on S-HRM and its reporting, the authors aim to close the gap between purely theoretical S-HRM treaties and more practically oriented studies on reporting. The findings on the key areas of S-HRM practices give rise to the S-HRM Practices Model, the main goal of this study. This comprehensible model may serve as a harmonized instrument for sustainable HRM reporting analysis and auditing for academia and practitioners alike.

ISO-9001 implementation and critical success factors of the Jordanian consulting engineering firms

Purpose

This paper aims at studying the level of implementation of ISO 9001 in Jordanian consulting engineering firms and to what extent does the implementation effectiveness affect the success of the construction projects. Moreover, the paper seeks to identify the Critical Success Factors (CSFs) that directly influence the ISO 9001 effectiveness in Jordanian consulting engineering firms.

Design/methodology/approach

A questionnaire was constructed and distributed to a sample of 125 employees from six ISO 9001-consulting firms. After collecting the data, exploratory factor analysis was utilized to validate the latent constructs (CSFs, ISO 9001 Effectiveness, and Firm Performance).

Findings

The findings suggest that firms experience a high level of ISO 9001 effectiveness. Moreover, among the five identified CSFs; employee attributes, external environmental pressure and quality system attribute had a significant impact on the ISO 9001 effectiveness, while internal motivation and firm attributes were insignificant.

Originality/value

The significance of this study lies in exploring such topic in the developing countries, since most of current studies were focused on developed contexts such as the USA and UK. Therefore, this research acts as a response to calls in the current literature regarding considering different industries and contexts.

Linking ISO 9000 certification to firm performance and financial crisis: a matched sample longitudinal analysis

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.

An investigation of the satisfaction of project managers and team members

Purpose

The purpose of this paper is to compare the job satisfaction levels between International Organization for Standardization (ISO) 9001-certified and non-ISO 9001-certified project-based companies in Jordan, for project managers (PMs) and project team members (consultants, engineers and architects).

Design/methodology/approach

The study sample consists of individuals from the aforementioned four roles of ISO 9001-certified and non-ISO 9001-certified companies. A questionnaire survey was used to collect the data from 57 companies. In total, 72 valid questionnaires were returned, yielding a response rate of 92.98 percent. The data obtained were statistically analyzed, and then the independent t-test was used to test the study hypotheses.

Findings

The results revealed that ISO 9001-certified companies experience higher job satisfaction level for the four roles compared to non-ISO 9001-certified companies. Between the two samples, it was noted that there is a significant difference in the PMs’, consultants’ and engineers’ satisfaction with co-workers and without any remarkable difference in the specific satisfaction. No significant difference between the two samples in general satisfaction was found for PMs and engineers. Finally, no significant difference was found in three satisfaction elements for architects.

Research limitations/implications

Understanding the linkage between being ISO 9001-certified company and project members’ job satisfaction can provide a new strategic direction for project-based companies’ performance management that can help in achieving superior work outcomes. A small sample size is considered the main limitation of this study.

Originality/value

This study attempts to fill the knowledge gap that is rarely investigated in the literature, i.e. the link between being ISO 9001-certified company and the level of project members’ job satisfaction.

Impacts of ISO 9000 on Greek SMEs business performance

Purpose

The purpose of this paper is to explore the association between ISO 9000 certification and business performance for small-to-medium enterprises in the food and beverage (F&B) industry.

Design/methodology/approach

The research employed a qualitative approach based on case studies to investigate in depth how companies perceive ISO 9001. More specifically, four enterprises were examined, and a total of 26 semi-structured in-depth interviews were conducted with top and middle managers from the companies. Questions were validated by experts and through pilot interviews. In total, 45 documents of a broad range related to the quality management system were examined. Personal observation and non-structured consultation with personnel were also used to evaluate the possible impacts and livelihood outcomes.

Findings

Research findings showed that the certified companies in the F&B industry gain a number of both internal and external benefits, including: quality awareness, increased productivity, increased personnel participation and efficiency, improved image and penetration into new markets. Regarding the financial benefits of certification, the findings are not as convincing, as one company reported no financial benefits, and the rest reported that financial benefits are indirect and intangible. Conclusively, it can be said that SMEs that wish to pursue certification should certainly expect benefits.

Practical implications

Although many studies have concentrated on analyzing the impact of the implementation of ISO 9001 certification, there is still a clear need for research in specific sectors. Practicing managers and researchers will be able to examine findings in order to evaluate benefits and weaknesses from certification, thereby identifying and acting before and after certification.

Originality/value

Although the F&B industry has shown a great preference for the ISO 9000 standard and has adopted it extensively, scant empirical evidence has been recorded on the subject. This paper contributes to a better understanding of the benefits for implementing the ISO 9001 certification and to the analysis of its application to the ever-important F&B industry in Greece, a country whose economy is particularly supported by SMEs and has been severely hit by the economic crisis. Researchers will therefore further their knowledge, understand benefits but also acknowledge weaknesses.

ISO 9001 and supply chain quality in the USA

Purpose

The purpose of this paper is to explore the nature of ISO 9001 certification and diffusion in the USA in relation to organizational supply chain position, quality maturity, and supplier quality maturity.

Design/methodology/approach

Data for comparison in this study comes from an e-mail survey questionnaire of supply chain professionals across the USA. A pilot survey was initially e-mailed to 100 supply chain professionals and preliminary data from 27 respondents were used to revise the questionnaire. Respondents to the revised questionnaire returned 565 e-mailed questionnaires out of 2,924 active e-mail addresses.

Findings

The results suggest that companies adopting ISO 9001 are likely doing so as part of an overall quality management program more so than from direct market pressure. It appears that ISO 9001 certification rates differ by organizational position in the supply chain. ISO 9001 certified organizations are more likely to have quality programs of greater maturity and suppliers with greater quality maturity than organizations that are not ISO 9001 certified. Certified organizations are also more likely to use suppliers that are ISO 9001 capable or certified than non-ISO 9001 organizations.

Research limitations/implications

Not all industry groups or supply chain positions were well-represented due to some small sub-group sizes.

Practical implications

The study of ISO 9001 certification in US organizations has been lacking in the literature. Given the weak adoption rate of ISO 9001 in the USA, this study helps characterize ISO 9001 certification from a supply chain perspective and explores possible reasons for low certification rates.

Originality/value

This research extends the knowledge of quality management in the supply chain by studying ISO 9001 certification in relation to supply chain position and differences in quality maturity between certified and non-certified organizations in the USA.

The impact of ISO 9001 implementation on organizational performance in Kenya

Purpose

– The purpose of this paper is to establish the effect of ISO 9001 implementation on the performance of organizations in Kenya. It specifically targeted organizations listed on the Nairobi Securities Exchange (NSE) which is the leading securities exchange in East Africa.

Design/methodology/approach

– The survey made use of web content analysis to collect data from these organizations’ web sites. Data were collected on net profit, turnover and net assets over a four-year period (2010-2013). The research used statistical data analysis to investigate the association between ISO 9001 implementation and performance.

Findings

– Results of the survey reveal that ISO 9001 certification influenced return on net assets of the organizations thereby influencing their performance. There was significant differences in net asset value among organizations with ISO 9001 certification and those that did not possess the certification. On profit and revenue, there were no significant differences between the ISO 9001 certified and non-certified organizations.

Research limitations/implications

– The research findings are limited to those organizations listed in the NSE and may not be generalized to other organizations. The study is further limited by the number of organizations participating in the study which was 20.

Practical implications

– The findings of the study provide justification for adoption of ISO 9001 standard in organizations in all key sectors of the Kenyan economy for sustained quality management practices. The ISO 9001 certified companies will enhance their quality management practices to achieve the successes documented in this paper while those yet to embrace the standards will draw lessons from such successes which may offer them compelling arguments to adopt them.

Originality/value

– Since the adoption and uptake of ISO certification in Kenya over a decade ago, no study has been carried out that directly relates ISO certification to organizational performance. This study will thus be useful as a starting point in documenting the ISO standard’s impact.

The impact of ISO 9000 certification on firms’ financial performance

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.