Business values of ISO 9000:2000 to Korean shipbuilding machinery manufacturing enterprises

Risk management integration and supply chain performance in ISO 9001-certified and non-certified firms

Purpose

The purpose of this paper is to explore the mediating effect of supply chain risk management integration (RMI) on the relationship between supply chain logistics performance (LP) and supply chain cost performance (CP), as well as on the relationship between LP and supply chain service performance (SP). The impact of CP and SP on overall firm performance (FP) is also explored. ISO 9001-certified firms and non-certified firms are assessed to determine whether superior risk-based thinking, as required in the latest ISO 9001 standard, has a positive impact on the different relationships.

Design/methodology/approach

A theoretical model is developed and tested based on the participation of 140 supply chain managers. The proposed structural equation model positively relates LP, RMI, CP and SP. RMI is positively linked to CP and SP, while CP and SP are positively related to overall FP. Two subsamples (a group of 63 ISO 9001-certified firms and a group of 77 non-certified firms) are used to evaluate the model.

Findings

For certified and non-certified firms, LP is positively related to RMI, CP and SP, and SP and CP are positively related to FP. However, for certified firms, RMI partially mediates the relationship of LP with both CP and SP, while for non-certified firms, RMI does not mediate these relationships. The findings suggest that ISO 9001-certified firms are able to leverage RMI efforts to impact positively on supply chain performance, whereas non-certified firms are not.

Research limitations/implications

The study findings are based on the perceptions of managers. Even though the majority of the 63 certified firms included in this study were ISO 9001:2015 certified, the model results do not differentiate between companies certified to the 2008 version of the standard and the 2015 version (which specifically requires demonstration of risk-based thinking).

Practical implications

This study suggests that ISO 9001 provides a framework for risk management processes and collaboration with supply chain partners to positively impact the relationship of LP with cost and SP.

Originality/value

This is one of the first studies to characterize the benefits of using a structured approach for risk-based thinking that is associated with ISO 9001.

Integrated internal audit in management system

Purpose

The purpose of this paper is to investigate the implementation of integrated internal audit management (IIAM) and compare the implementation of IIAM by Malaysian firms with different certifications (ISO 9001, ISO 14001 and OHSAS 18001).

Design/methodology/approach

This study involves three studies on the implementation of integrated internal audit processes. Furthermore, this study compares the implementation of the audit in the selected firms. The qualitative research methodology was adopted to analyse the data.

Findings

This study is an exploratory study and the findings indicate the differences between the implementation of the internal audit process across different firms. All the firms are highly motivated and demonstrate resource management whilst implementing the IIAM while firms experiencing the same difficulties. The study also found that all of the firms are enjoying similar benefits.

Research limitations/implications

The scope of this research paper is limited to three Malaysian manufacturing firms with different quality certifications: ISO 9001, ISO 14001 and OHSAS 18001. Thus, the finding cannot be generalised to all firms in Malaysia. However, the findings are significant as they present an interesting comparison between the implementation of IIAM by manufacturing firms in Malaysia.

Originality/value

Although the integration of management systems has been analysed many times, this study focussed on the comparison of firms’ practices of the IIAM.

A longitudinal exploratory study of ISO 9001 certification abandonment in small- and medium-sized enterprises

Purpose

The purpose of this paper is to explore the expectations for ISO 9001 certification in a group of small- and medium-sized enterprises, then to assess the reasons for their subsequent abandonment of the certification and the long-term impacts of that decision.

Design/methodology/approach

Data for this study come from longitudinal case studies involving a series of questionnaires, in-depth on-site interviews and informal conversations with top managers of 22 firms in the heating technology service industry in Poland. The research process was conducted in three stages. The first stage occurred in the Summer of 2008 in which a broad analysis was conducted of the impact of ISO 9001 certification on the functioning of the organizations. The second stage was conducted in 2012, to gather the information about the organizations that subsequently abandoned their ISO 9001 certification. The third stage was carried out in 2016 to examine the longer-term impact of ISO 9001 certification abandonment in these organizations.

Findings

The main motivation for study participants obtaining ISO 9001 certification centred around market visibility and gaining new customers rather than on lowering operating costs or improving quality. Managers also expected certification to improve organization documentation. The decision to abandon certification had to do with lack of time for improvement efforts and questionable cost-benefit that could lead to higher prices. Certification was considered unnecessary to achieve the goals of the organization. In retrospect, only a small percentage (20 per cent) of small- and medium-sized enterprises in the sample group felt that abandoning ISO 9001 certification was largely the correct decision. A majority (53 per cent) thought it was largely a regrettable decision.

Research limitations/implications

The research is based on a limited number of case studies for smaller organizations in one purchasing group in industry rather than on a large cross-section of different organizations sizes and types. Therefore, the ability to draw statistical inferences is limited and the results may not generalize to other settings. However, this appears to be one of the few studies of its kind on voluntary abandonment of the certification.

Practical implications

It is important for business managers to understand not only the reasons supporting initial certification, but the rationale that organizations cite for abandonment of the certification and the long-term impacts of that decision.

Originality/value

A study of voluntary ISO 9001 certification abandonment appears to be relatively absent in the literature. This research opens a new area of research into the assessment of potential consequences of abandoning the certification.

Motives for implementing ISO 9000 – does enterprise size matter?

Purpose

The purpose of this paper is to investigate the motives for obtaining an ISO 9000-certified quality management system in small and medium enterprises (SMEs) and whether such motives differ between large companies and SMEs.

Design/methodology/approach

This study employed a qualitative approach, using multiple case studies. The primary research consisted of interviews with top and middle managers in four organizations and was complemented with direct observation and documental analysis.

Findings

The research findings confirmed the existing literature. The most common motivations for certification came from external pressure such as customer demand and ability to participate in public tender. It therefore validates that the classification of motives adopted for large companies is also appropriate for SMEs. The research also brought to light one implication of ISO certification that has escaped mention in the literature, namely, the distinction between primary and secondary motives. That is, companies driven by externally-driven motives to pursue ISO 9000 certification appreciated other benefits once they realized the full potential of the standard, leading to additional motivations.

Practical implications

The study was restricted to a single region of Greece and a single sector, food and beverage industry. This study may provide key insight for managers to understand and appropriately evaluate motives for ISO 9000 certification and to save them from misinterpretation and hasty conclusions.

Originality/value

Because the data gathered were longitudinal, this study offered a deep understanding of the true motives for ISO 9000 certification.

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.