The benefits of the implementation of the ISO 9000 standard: empirical research in 288 Spanish companies

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.

Motivations for ISO 9001 quality management system implementation and certification – mapping the territory with a novel classification proposal

Purpose

This paper aims to identify and characterize the motivations for ISO 9001 quality management system (QMS) implementation and certification, with a novel, valid and business-oriented scale applied to a large sample. Instead of adopting a normative approach focusing on the internal/external nature of the motivation, this investigation aims to emphasize the ISO 9001 driving forces from an instrumental (productivity, market and competitiveness) perspective.

Design/methodology/approach

This study is framed with a quantitative methodology supported by an email survey encompassing a sample of 526 Portuguese ISO 9001 certified organizations. Descriptive statistics, exploratory factorial analysis (EFA), t-tests and correlation analysis were performed according to the proposed research questions.

Findings

Regarding the motivations, three factors were obtained by applying EFA: market, productivity and competitiveness. The respondent organizations consider the productivity factor (mainly related to internal motivations) to be the most important. Concerning the other factors, competitiveness in the sector is ranked second and the reasons related to the market come in third. Additionally, organizations of medium dimension (between 50 and 249 employees), certified up to 1999 or from the private sector, give greater relevance to motivations related to the market and competitiveness.

Research limitations/implications

This investigation suffers from the limitations inherent to the survey methodology (e.g. potential bias) and a Portuguese sample’s restrictions. Moreover, this research does not cover organizations that have been certified after 2015, namely, with an initial ISO 9001:2015 certification. Nevertheless, most of the respondents’ organizations remain ISO 9001 certified today.

Practical implications

The information provided allows managers to know the driving forces and motivations behind seeking ISO 9001 certification. It can assist certification bodies in fine-tuning their marketing strategies to attract new customers and support ISO 9001 stakeholders in the ISO 9001 revision cycles.

Social implications

Policymakers can also adjust policies to foster ISO 9001 certification accordingly. Furthermore, as Wawak et al. (2020) suggested, with ISO starting a new revision cycle for ISO 9001, an increase in the research topic is expected. This study brings additional knowledge that can assist ISO stakeholders in that process.

Originality/value

This study presents a novel, valid and more business-oriented scale to characterize and identify the motivations for ISO 9001 QMS certification and maps the driving forces for ISO 9001 certification in a large sample size of diverse organizations. The instrumental nature of the scale (productivity, market and competitiveness) improves the consistency with recent research on ISO 9001 contributions for organizational performance compared with previous scales that focused on the internal/external nature of the motivation.

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.

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.

Stock price reaction on ISO 9001 certification announcement: evidence from Indonesia

Purpose

Certification information published by a company will be responded by the market. Therefore, the purpose of this study is to examine the impact of ISO 9001 certification on the stock market reaction as indicated by stock returns reaction of companies in Indonesia.

Design/methodology/approach

This study used event study method with the period of 13 days. It consists of 6 days before and after ISO 9001 certification announcement and 1 day at the time of the event. It analyzed by using pair sample t-test and one sample t-test. The stock return data is obtained from companies that are ISO 9001 certified and it tested for their stock reactions before and after the certification.

Findings

The results of empirical research showed that the average and companies cumulative abnormal returns in Indonesia react quickly and positively on the first day after ISO 9001 certification announcement. This study proved the differences between abnormal returns before and after the ISO 9001 certification announcement period.

Research limitations/implications

The company's success in implementing ISO 9001 will have an impact on investment in the capital market with a positive response from stock market players. The implication of this study is the further research can examine directly the impact of ISO 9001 implementation on investor behavior in the capital market.

Originality/value

Based on the development of the literature review, this is the first study which examined the impact of ISO 9001 certification announcement on investor reactions in the short term. Therefore, companies in Indonesia need to implement a quality management system for investors in Indonesia.

The Reporting of SDGs by Quality, Environmental, and Occupational Health and Safety-Certified Organizations

Organizations can play a significant role in the advancement of Sustainable Development,and companies with Quality, Environmental, and Occupational Health and Safety (QEOHS)-certified management systems address the three Sustainability Dimensions (economic,environmental, and social). This research aims to map the present level of engagement of thosecompanies in contributing and reporting to the 17 Sustainable Development Goals (SDG) of theUnited Nations (UN) 2030 Agenda. By publicly disclosing their sustainability reports on theirinstitutional websites, they can, therefore, support this agenda implementation. The content of thecompany reports that were available by 31 December 2017 in the institutional websites, from a totalof 235 Portuguese organizations with QEOHS-certified management systems was analyzed. Theresults show a moderate reporting of SDGs by those companies, with the top five being SDG 12—Responsible consumption and production (23.8%); SDG 13—Climate action (22.1%); SDG 09—Industry, innovation, and infrastructure (21.3%); SDG 08—Decent work and economic growth(20.0%); and SDG 17—Partnerships for the goals (19.6%). The results of the statistical tests indicatethat the communication of SDGs is more prominent in organizations (QEOHS) with the followingcharacteristics: have a high business volume, are members of the United Nations Global CompactNetwork Portugal, and disclose their sustainability reports on their website. This study can be usefulfor both managers and decision makers who aim to support organizations in contributing to theSustainable Development Goals and achieving a better and sustainable future for all.

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.

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.

Assessing relationship between quality management systems and business performance and its mediators

Purpose

The purpose of this paper is to examine the relationship between implementation of quality management systems (QMS) and business performance, through mediating factors (operating performance, information quality, product quality, design performance, environmental performance and competitive priorities). Most of the published literature examines the direct impact of implementation of QMS on business performance, and on some of the above stated factors. However, the impact of implementation of QMS on business performance, through these mediating factors has not received much attention. Accordingly, the authors develop a theoretical framework depicting impact of implementation of QMS on business performance through the above stated factors.

Design/methodology/approach

The paper proposes several hypotheses linking implementation of QMS, mediating factors and business performance. The hypothesized model is empirically tested using data collected from 120 professionals working in quality engineering/management in India and North America. The collected data are analyzed with the aid of structural equation modeling (SEM) technique.

Findings

Information quality and design performance have emerged as the important factors in the research. Information quality directly effects design performance, operating performance and environmental performance. The model indicates that besides a well-designed product, managers need to focus on the operating performance to improve overall product quality. Empirical evidence is found regarding direct and indirect effect of implementation of QMS on above stated mediating factors and on business performance.

Originality/value

The research fills a gap in the literature by considering several mediating factors that aid in improving business performance with implementation of QMS.

An optimal integrated QSMS model from cluster analysis

Purpose

The purpose of this paper is to develop an optimal model of an integrated quality and safety management system (QSMS).

Design/methodology/approach

Keywords related with these systems were identified from international standards and subsequently mined from a selection of peer reviewed articles that discuss and propose varying forms of integrated models for both systems. Cluster analysis was used to establish the degree to which integrated models, as described in the articles were quality dominant vs safety dominant. Word counts were utilized for establishing content and attributes for each category. An optimal integrated model was developed from the final cluster analysis and substantiated by a one-way analysis of variance. Experts from industry were consulted to validate and fine-tune the model.

Findings

It was determined that characteristics of an optimal integrated model include the keywords “risk,” “safety,” “incident,” “injury,” “hazards,” as well as “preventive action,” “corrective action,” “rework,” “repair,” and “scrap.” It also combines elements of quality function deployment as well as hazard and operability analysis meshed into a plan-do-check-act type work-flow.

Research limitations/implications

Given the vast array of clustering algorithms available, the clusters that resulted were dependent upon the algorithm deployed and may differ from clusters resulting for divergent algorithms.

Originality/value

The optimized model is a hybrid that consists of a quality management system as the superordinate strategic element with safety management system deployed as the supporting tactical element. The model was implemented as a case study, and resulted in 13 percent labor-hour saving.

Implementation of ISO 9001 in the Spanish tourism industry

Purpose

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. The purpose of this paper is to focus on the implementation of this international management system standard in the tourism industry, and in particular the motivations conducting to its adoption and the satisfaction derived from it.

Design/methodology/approach

A questionnaire survey was conducted among 120 ISO 9001-certified Spanish tourism companies. Confirmatory factor analysis tests were used to verify the scales validity and reliability. The logit model was utilized to investigate the statistical effects of ISO certification.

Findings

The paper findings showed that the certified companies in the tourism industry implement ISO 9001 more for internal reasons, like improving processes and procedures or products and/or services, than for external reasons, like the image of the company or promotional or sales tools. The variables size, age and use of a consultant affect the cost and time factors for the implementation of a quality system. In addition, the certification process generated three categories of benefits, with the organizational and control benefits being the more relevant. These benefits are correlated to the antiquity of the certificate. In the final analysis, results show that tourism companies are generally satisfied with the ISO 9001 certificate.

Originality/value

The ISO 9001 quality management system is part of the modern management tools. The paper contributes to a better understanding of the motivations and benefits for implementing the ISO 9001 certification and to the analysis of its application in a particular industry as important as the tourism industry in Spain, a country that is recognized for its leadership in tourism.

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.

The willingness of professionals to contribute to their organisation's certification

Purpose

This paper seeks to find out which factors influence the willingness of professionals to contribute to a certification process and to understand the rationale behind this willingness.

Design/methodology/approach

Based on literature, prerequisites are formulated for the willingness of professionals to contribute to certification. These are compared with the results of a study among lecturers at Universities of Applied Sciences in The Netherlands and Flanders about their willingness to contribute to accreditation of their schools. This study combines survey and Delphi research.

Findings

Professionals agree on the added value of certification systems. They are willing to contribute to the certification process, provided that a set of conditions is fulfilled.

Research limitations/implications

The case focuses on large organisations for which certification is obligatory. The findings may not apply in small or medium‐sized organisations or if the main driver for certification is internal improvement. Further research is needed to verify the generalisation of the results to other sectors and countries.

Originality/value

Research has shown that it is difficult to motivate professionals to contribute to certification. Little research has been done on the reasons why. The paper provides more insight into the difficulties that organizations face to commit their professionals to become involved in certification and turns these into requirements to be fulfilled to achieve commitment. These are relevant for organisations, which need the support of their professional employees to achieve management system certification.