Has ISO 9000 lost some of its lustre? A longitudinal impact study

What would QMS implementation really bring to a company?‐ Theoretical review on benefits and disadvantages researched in practice

Purpose

This study aims to provide information on particular combination of benefits or disadvantages with exact timing of their appearance in the company after its first certification, along with the information on the value range each benefit and disadvantage would take, as well as on the duration period of expected values.

Design/methodology/approach

Survey was conducted from October 2015 to January 2019 in 306 certified companies with respondent rate of 58.82%. A questionnaire, structured using literature review to identify all possible benefits and disadvantages of QMS, was used to determine the time of appearance, value range and duration of each identified benefit or disadvantage. Results were used to define indicators for fully applied QMS in each age of its maturity, then the indicators were verified using the records of two ISO certified companies.

Findings

There is a difference in the set of benefits and disadvantages in companies with fully implemented QMS and those that are using QMS only to maintain the certificate. In each age of QMS application a specific set of benefits and disadvantages can be expected as well as the volume range of each of them. These timely sets of benefits and disadvantages can be used as indicators to distinguish well-implemented QMS from those partially implemented.

Research limitations/implications

The sample consists of companies from Balkan area, therefore economy, politics and culture could have influenced results, predominantly regarding the value ranges of some benefits and disadvantages.

Practical implications

Companies which already have implemented or are about to implement QMS may use results of the research to plan its effects in years ahead, concerning costs and profit dynamics, as well as to prepare themselves for upcoming probable issues. Auditors can use results in addition to certification criteria to determine the level of QMS implementation and to forecast whether audited company would keep the certificate in the future.

Social implications

Supply chain management could use research findings in selection of chain members to support and speed up third party audits since the benefits and disadvantages of fully implemented QMS are known for each QMS age. This would further imply better structure of supply chains, which would consequently lead to lower production costs, higher quality and competitive prices at the market, which has beneficial implications on the whole society.

Originality/value

For each age of QMS maturity, starting from the first year of certification, expected combination of benefits and disadvantages along with its expected value range and duration are defined. A set of indicators with their expected values.

The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

Purpose

In recent years, many companies have decided to decertify from their previously adopted corporate social responsibility (CSR) standards. The aim of this paper is to explore the phenomenon by focusing on the most important auditable CSR standard: Social Accountability 8000 (SA8000).

Design/methodology/approach

First, an event study is performed on a dataset composed of 136 SA8000 decertified public listed companies to analyse the possible relationship between certification, decertification and firms’ operating performance. Second, the authors shed light on the differences between 94 SA8000 (still) certified and the abovementioned 136 decertified firms. Finally, 10 interviews are conducted with decertified firms in the dataset to deepen the outcomes of the previous analyses.

Findings

The results show that, despite an initial positive effect in terms of sales and profitability, decertified companies experienced a reduction in productivity and profitability in the years following the certification, while positive outcomes emerged after the decertification. The study also highlights that certified and decertified firms differ in terms of home country, industry and labour intensity.

Originality/value

The paper contributes to the literature by opening the debate on an important but unexplored research area: the decertification from the most popular CSR standard, i.e. SA8000, and its relationship with firms' performance. In doing this, it also highlights the main differences between decertified and certified companies.

Quality of the ISO 9000 series of standards-perceptions of quality management experts

Purpose

The authors of this study, who adopted a holistic view of the international organization for standardization (ISO) 9000 series of standards, aimed to evaluate the current status of the standards within the framework of the quality movement. Specifically, the evaluation covered two dimensions, i.e. the significance of the content included in the standards and the quality of the standards’ elaboration, which encompasses such issues as, for instance, their correctness, relevance to current trends in quality management, comprehensibility, etc.

Design/methodology/approach

The paper is based on a review of the scientific literature, analysis of the current and all previous versions of the international standards and the results of a survey, through which data were collected from 73 quality management experts from 17 different countries. To evaluate the results, an importance-performance analysis was performed.

Findings

As the results of the research demonstrated, experts in quality management have accepted the ISO 9000 standards series. However, this positive view refers mainly to the very idea of developing quality management standards and these standard’s content structure (components included in them). Study participants assigned a low rating to the quality of the standards’ elaboration. Therefore, improving the following aspects of the standards is essential: definitions, guidelines explaining the requirements for a quality management system, self-assessment tools and guidelines concerning quality management concerning chosen forms of activity.

Research limitations/implications

The research described here in has both practical and social implications. First, it delineates the direction needed to improve standardizations, whose use need not be strictly limited to quality management but can be successfully used to improve the standards in other areas of management. Therefore, the conclusions of this research directly contribute to increasing both the effectiveness and the quality of the standard organizations. The significant consequences of this research for managers are the identification of ISO 9000 components which they will find are the most useful.

Practical implications

The research described herein has both practical and social implications. First, it delineates the direction needed to improve standardizations, whose use need not be strictly limited to quality management. However, it can be successfully used to improve the standards in other areas of management. Therefore, the conclusions of this research directly contribute to increasing both the effectiveness and the quality of the standard organizations. The significant consequences of this research for managers are the identification of ISO 9000 components, which they will find are the most useful.

Originality/value

Most research treats ISO 9000 standards as a benchmark for their studies on quality management systems implemented in organizations. The standards themselves are rarely the subject of a study, and so this paper fills a gap in the research and provides insights into desired directions for standards improvement.

Implementation of Integrated Management Systems and Corporate Social Responsibility Initiatives—A Romanian Hospitality Industry Perspective

The growing market value of a company remains the main concern of the management, as well as of the shareholders. Implementing integrated management systems is not always easy and is not low-priced either, but the benefits to clients, management, employees, or shareholders are considerable. At the same time, the involvement of companies in corporate social responsibility activities represents a return of part of the benefits to the community, the benefits being found on multiple plans for all the stakeholders. Through this study, we aim to identify the effects of implementing integrated management systems and quantify the influence of corporate social responsibility initiatives on the market value of hospitality industry companies in Romania. Analyzing the results of the study demonstrates the existence of a direct correlation between the implementation of integrated management systems and the evolution of the economic performance of the companies. Also, the results reveal a positive correlation between the existence of corporate social responsibility initiatives and the increase of the market value of Romanian hotel industry companies.

The financial impact of a withdrawn ISO 9001 certificate

Purpose

– The purpose of this paper is to assess to what extent the loss of the ISO 9001 certification affects the decertified firms’ financial performance.

Design/methodology/approach

– Using standard event study methods, this paper matches a sample of 143 Portuguese companies that lost their ISO 9001 certification with similar non-event counterpart firms (according to return-on-assets (ROA) and size) and compares the performance of these two groups of firms using financial data collected from the AMADEUS database.

Findings

– Results show no statistical significant differences in the financial performance (as measured by ROA, return-on-sales (ROS) and sales growth) between companies that lost their ISO 9001 certification and their matched firms. Although the literature suggests that certification improves firms’ performance and that the benefits of certification may last over long periods of time, this paper’s results suggest that, after decertification, companies do not exhibit over or underperformance in their operations vis-à-vis comparable firms that do not undergo the same event.

Originality/value

– As far as the authors are aware, this is the first study assessing the impact of ISO 9001 certificate withdrawal on the decertified firms’ financial performance.

Supply chain and total quality management framework design for business performance-case study evidence

Purpose

– The purpose of this paper is to identify the importance of integration of supply chain management practices with total quality management (TQM) practices to augment business performance. The objective of paper is to focus on the two important dimensions, namely, supply chain and TQM of an organization with special reference to the concepts: exploration and exploitation.

Design/methodology/approach

– In total, 20 variables have been identified (independent variables) which impact business performance (dependent variable). Variables have been extracted into four categories with a combination of two orientations, i.e., exploitation and exploration, with respect to quality management and supply chain practices.

Findings

– Configurationally four different combinations concerning supply chain and TQM were identified in which an enterprise can operate. This is supported with the four different case studies.

Practical implications

– This study leads to some interesting practical implications for practicing managers as it offers a framework in which the supply chain and TQM practices can be implemented with respect to an organizational structure (mechanistic or organic structure), environmental conditions (uncertain environment and rapidly changing product life cycle) and identification of customer orientations (whether customer is price sensitive or customer makes buying decision on account of trust or relation to the product).

Originality/value

– The concept of supply chain exploitation and supply chain exploration with different orientations of quality management is not studied comprehensively before. This paper provides a background for establishing a framework of strategies for supply chain and quality practices, with respect to the exploitation and exploration scenario.

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.

Overcoming resistance against quality control – a philosophical-empirical approach

Purpose

– The purpose of this paper is to explore the added value of philosophy in understanding and overcoming resistance to quality control.

Design/methodology/approach

– The paper describes a case in which the philosophy of Herman Dooyeweerd was applied to give advice on a standardisation project within a company. The authors evaluate the project and resistance to it after six years, using the same philosophical approach.

Findings

– Economic goals of quality control were achieved without any substantial employee resistance by addressing non-economic aspects. Apparently, social needs are not necessarily detrimental to economic goals. On the contrary, it is difficult to achieve economic goals if the social aspects are not being addressed.

Research limitations/implications

– Though based on one case study only, the findings suggest that a multi-aspect approach to quality management is very promising.

Practical implications

– The approach is not just a TQM tool but rather a way of addressing various aspects in a systematic and balanced way. Familiarising managers with this approach should help them to balance financial and other aspects without making those other aspects instrumental to achieving financial targets.

Originality/value

– The paper presents a new multi-aspect approach to quality management, based on philosophy in business research. It seems that the value of this approach reaches beyond the area of quality management and can be important to organisation studies in general.

A proposal of a new paradigm for national quality certification systems

Purpose

The goal of this paper is to suggest a new incentive model that is capable of creating the conditions for the autonomous growth of diffusion and credibility of the ISO 9000 national quality certification system.

Design/methodology/approach

The first part of this work contains some considerations about the general interest of organisations in quality certification systems, emphasising the advantages and the drawbacks in being certified. Next, the attention shifts to future scenarios. Specifically, a new model is proposed that is capable of encouraging certified organisations (COs) and certification bodies (CBs) that operate blamelessly and seriously, while at the same time penalising those that do not.

Findings

The suggested model consists of two inter‐connected sub‐models relative to COs and CBs, respectively. Each sub‐model includes different states with different incentives/penalties. The switch‐over from one state to another depends on the practical results recorded in recent years by the CO/CB of interest. The switching rules are based on a set of objective, transparent, and non‐manipulable indicators.

Research limitations/implications

On‐site analyses and simulations are necessary so as to tune optimal switching rules to balance the whole model.

Practical implications

The (possible) future implementation of the model could have great impact on COs' and CBs' modi operandi, promoting the real implementation of quality management practices but – at the same time – not requiring significant additional effort from the state and the authorities accrediting/controlling CBs.

Originality/value

The proposed model is absolutely new and may represent a proper way to combine the interests and expectations of COs and CBs into a unique “virtuous circle” for improving the real implementation of quality management.