ISO 9000:2000 certification and business results

Relationship between ISO 9001:2015 and operational and business performance of manufacturing industries in a developing country (Indonesia)

Previous research has emphasized the need to further investigate the impact of ISO 9001 on company performance in the manufacturing sector of developing countries. Indonesia is one of those developing countries where the implementation of ISO 9001 is yet to be adequately researched. The Indonesian automotive manufacturing industry is still unable to compete with Malaysia and Thailand even though many companies have implemented ISO 9001. This study aimed to examine the relationship between ISO 9001 and operational (productivity, customer satisfaction, and product quality) and business (sales growth, profit rate, and market share) performance of Indonesian automotive component manufacturing industries. It also aimed to identify major obstacles in the effective implementation of ISO 9001. Multiple linear regression analyses about operational and business performance were employed for this purpose. The sample size comprised 50 automotive component manufacturing industries located in the Jakarta, Bogor, Tangerang, and Bekasi region of Indonesia. The study demonstrates that the implementation of the ISO 9001:2015 quality management system has a significant positive impact on the operational performance as well as the business performance. Additionally, the operational performance has a significant positive impact on the business performance. This study also reveals the major obstacles in the effective implementation of ISO 9001 in the manufacturing industry, which include a lack of qualified personnel, inadequate training, employee resistance, and lack of commitment among top-level management executives. It offers clear implications for managers who focus on elements that will enhance the effectiveness of ISO 9001 implementation by choosing the correct strategies, allocating sufficient resources, and improving their firm's performance. The novelty of this study lies in filling the existing research gap, which involves a detailed examination of the relationship between the implementation of ISO 9001 and the company's performance, particularly in manufacturing industries of developing countries.

Empirical evidence about ISO 9001 and ISO 9004 in Italian companies

Purpose

The purpose of this paper is to evaluate the experience of International Organization for Standardization (ISO) 9001 certified companies, examining their motivations to introduce the standard and their perceived benefits and barriers. In parallel, the research investigated the knowledge and perception of ISO 9004 guideline, analyzing if it could give an added value to certified companies.

Design/methodology/approach

A questionnaire was proposed by e-mail to 2,581 Italian ISO 9001 certified companies from January 18 to March 31, 2016; 522 companies participated to the survey.

Findings

Companies of different size have been driven by different motivations to certification, reaching different types of benefits, while both large and small ones perceived the greater bureaucratization as an obstacle. The ISO 9004 standard is little known and applied among Italian companies, but the ones which adopted it benefited from it.

Research limitations/implications

A limitation may be derived from the fact that the sample was composed only of Italian companies, although this effect was to understand perceptions and trends of these international standards in the Italian reality.

Practical implications

Analyzing perceived advantages and disadvantages of ISO 9001 and 9004 could be crucial for managers to understand if their joint use is the right strategy to gain competitiveness in the reference markets.

Originality/value

Compared to previous studies in which ISO 9001 was evaluated as a stand-alone standard, the research made a comparative evaluation with ISO 9004, as ISO considers them to be “consistent pair of standards,” covering the literature gap about the effectiveness of the joint use of them.

Developing attributes for evaluating construction project-based performance

Purpose

The Indonesian construction industry has to considerably rise due to the issues of quality product, organisational performance and global competitiveness faced today, along with settling several national challenges that continue to plague the construction industry. Delivering high-quality construction products and services is non-negotiable when competing for contracts with international constructors. Developing such an assessment system to evaluate the performance of Indonesian construction companies is an urgent need in order to encourage and motivate the construction companies to continually improve their performance in the execution of construction works. The purpose of this paper is to empirically test the key attributes related to the evaluation of quality and performance in the construction project-based case of Indonesia.

Design/methodology/approach

A survey was conducted in the five provinces in Indonesia involving 216 construction practitioners from medium and large qualifications of construction companies.

Findings

On the basis of the data analysis results, the study develops the 39 key attributes that can be a basis for the development of Indonesian building construction project performance assessment system. The attributes cover construction companies’ performance during project implementation, in delivering final project results and in implementing quality procedures for building construction works.

Originality/value

The outcome of this study is considered significant to provide a tool for the government to assess the quality performance of contractors in delivering projects against specified standards, and a guideline for the contractors to improve their competitiveness by implementing continuous quality improvement. The confirmed attributes developed from this study is an initial step towards developing an Indonesian construction comprehensive quality performance assessment system.

ISO 9001 certification and corporate performance of Italian companies

Purpose

The purpose of this paper is to verify a possible relationship between quality management system certification according to ISO 9001 standard and risk of failure of Italian companies.

Design/methodology/approach

A synthetic index which summarize the most crucial economic/financial aspects of the studied companies is assumed as the response variable of a statistical model for studying the effects of four specific factors: certification, company size, regional development and manufacturing sub-sector. The analysis is conducted on a sample of Italian companies belonging to different manufacturing sub-sectors. The used data are obtained from the database Aida® by Bureau van Dijk and from the database of the Italian accreditation body Accredia. The study is based on analysis of variance (ANOVA) and contingency tables.

Findings

Preliminary results of ANOVA show that only company size, regional development and manufacturing sub-sector can be considered fully significant. Furthermore, the major conclusion from the analysis of contingency tables is that ISO 9001 certification is connected to the legal status (active, not active) of a company only for a portion for the studied manufacturing sub-sectors. Hence, the scenario is quite variegated and a significant positive interaction between certification and corporate performance is not always confirmed.

Research limitations/implications

Although the research shows some interesting results, it is liable to extensions and improvements. In particular, at the current exploratory level, it is limited to a specific period of time and considers only the Italian sector, but it could be extended to a wider number of years and to European and international level.

Practical implications

The study opens a way for a number of important questions about the meaning, usefulness and effectiveness of ISO 9001 certification. In particular, it may be time to ask whether the paradigm of certification actually needs a radical rethink.

Originality/value

This work represents a first exploratory attempt to correlate the risk of failure with the achievement of ISO 9001 certification. There are several similar works in literature which, however, focus mainly on sectorial aspects of the corporate background.

The impact of quality management systems on the performance of manufacturing firms

Purpose

– The purpose of this paper is to provide additional evidence of the impact of ISO 9001 effectiveness on three dimensions of a firm’s performance, namely product quality, operational performance and business performance.

Design/methodology/approach

– The analysis includes an initial exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA) and structural equation modeling (SEM), in order to investigate the relations between the constructs of the proposed model. A sample of 287 ISO 9001 certified Greek manufacturing firms is used for this purpose.

Findings

– According to the study findings, ISO 9001 effectiveness directly contributes to product quality and operational performance. Although it has no direct impact on manufacturing firms’ business performance, it has an indirect impact through the moderator of operational performance.

Research limitations/implications

– The sample of the responding manufacturing companies is limited to small- and medium-sized enterprises (SMEs) from one country (Greece). In addition, the effects of the internal business environment and endogenous business factors have not been assessed through the present study.

Practical implications

– The study offers clear implications for managers who focus on elements that will increase the ISO 9001 effectiveness and desire to choose strategies, allocate resources and improve their firm’s performance.

Originality/value

– The present study contributes to the literature gap aiming at examining the degree to which ISO 9001 effectiveness influences the performance of certified firms. The concept of “ISO 9001 effectiveness” is introduced as the extent to which its prescribed quality objectives are met.

Performance measures of ISO 9001 certified and non-certified manufacturing companies

Purpose

– The purpose of this paper is to compare ISO 9001 certified and non-certified manufacturing companies with regard to performance measures, both financial and non-financial.

Design/methodology/approach

– A research study was carried out in 140 Greek manufacturing companies by means of a questionnaire. The questionnaire was sent by e-mail and it was requested that it should be answered by a company representative. Exploratory factor analysis is applied in order to extract the latent factors of performance measures. The differences between the ISO 9001 certified and non-certified manufacturing companies are determined through non-parametric tests such as the χ2-test and the Mann-Whitney U-test.

Findings

– The ISO 9001 certified manufacturing companies significantly outperform the non-certified with regard to product quality, customer satisfaction, operational, market and financial performance. This is evident in a business environment where an economic downturn and financial crisis dominates.

Research limitations/implications

– The sub-samples of the responding ISO 9001 certified and non-certified manufacturing companies are small sized and they are limited to small- and medium-sized enterprises. The subjective character of the data collected through the company representatives involves the risk of receiving biased responses regarding the performance measures. The above limitations suggest future research recommendations.

Practical implications

– The increased performance measures of the ISO 9001 certified manufacturing companies may motivate the non-certified ones to implement the ISO 9001 standard and apply for the certification in order to increase their performance and withstand the current economic downturn and financial crisis. The present study may also stimulate manufacturing companies to adopt traditional and modern benchmarking techniques, in an additional effort to improve their businesses and competitiveness.

Originality/value

– The present study compares performance measures of ISO 9001 certified and non-certified manufacturing companies operating under unprecedented circumstances due to the current economic downturn and financial crisis.