A longitudinal study of the ISO 9000 (1994) series' contribution towards TQM in Greek industry

TQM and business success

Purpose

– Prior studies by Salaheldin (2009) and Talib et al. (2011) have assessed the relationships between TQM critical success factors (CSF) and business results. The purpose of this paper is to build upon this research by considering the relationships between these CSFs and their sequencing during the implementation of TQM. Furthermore, the influence exerted by the maturity of TQM implementation on the link between instrumental drivers and performance is explored.

Design/methodology/approach

– The TQM drivers are clustered by means of three constructs: strategic enablers, tactical drivers and instrumental drivers and a model employed in which the strategic and tactical factors are treated as antecedents of the instrumental drivers. The direct effect of each cluster on business results and the indirect relationship of strategic and tactical factors via the mediating role of the instrumental drivers are assessed. These assessments use the partial least squares (PLS) approach which is a variance-based structural equation modeling technique using a sample of 113 Spanish organizations with experience of implementing a TQM program.

Findings

– The findings confirm the existing relationships among the CSFs and business performance identified by studies Salaheldin (2009) and Talib et al. (2011). However, the results reveal that instrumental drivers possess the highest variance explanation power over business performance outcomes and it is possible to identify a CSF implementation sequence that generates the greatest impact on business performance. Furthermore, the study was inconclusive with regard to the influence exerted by the number of years of TQM implementation on the link between the instrumental drivers and performance.

Research limitations/implications

– The first is related to organizational bias. It seems likely that those firms which are not satisfied with their TQM system performance would be less likely to be motivated to contribute to the development of this study. Therefore, the authors have included in the sample a higher proportion of “good” systems than is the case in the population at large. Second, although the authors provide evidence of causality, causality itself has not been proven. Third, this research relies mainly on perceptions and the authors only used a single method to elicit these perceptions. Finally, this research was carried out in a specific geographical setting (Spanish companies) and the authors must be cautious about generalizing these results in other contexts.

Practical implications

– This study offers a substantial number of practical implications. First firms’ managers should emphasize that continuous improvement, benchmarking and zero-defects mentality is a never-ending process. Especially, they should understand that reliable product/service design is critical to exceed the customers’ expectations, leading to improved business success. The results of this study should also lead managers to seeing a “return on investment” in their efforts to implement a TQM program by first, paying more attention on how to implement the instrumental factors, and second, avoiding the belief that the passage of time and experience-based learning will bring business performance enhancement and success on their own.

Social implications

– Although, the literature agrees that strategic factors are valuable assets and have a crucial role in the deployment of TQM systems, the study empirically validates this assertion. However, at the same time it shows that this impact on performance is stronger and much more significant by reconfiguring instrumental factors. This implies that strategic and tactical factors do have an effect on business success, but they do so indirectly, by reconfiguring and reinforcing instrumental factors that better fit the stakeholders’ needs and expectations.

Originality/value

– The results suggest the need to consider whether all the CSFs are equally relevant on the basis of their contribution to business success. For example, strategic enablers are generally considered to be of primary importance with tactical and instrumental drivers assuming a secondary position. The study challenges this view and highlights the role of instrumental drivers over strategic and tactical factors with the clear implication that managers should focus strongly on daily implementation tasks such as benchmarking, zero-defects mentality and continuous improvement processes in order to achieve good business performance outcomes.

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.

ISO 9000 as an organisation development intervention

Purpose

The purpose of this paper is to investigate the nature of ISO 9000, illustrate how ISO 9000 can be implemented in face of strong resistance to change, and demonstrate how comprehensive work redesign for higher organisational effectiveness can be realised through ISO 9000 implementation.

Design/methodology/approach

A novel model and process for ISO 9000 implementation in an Indian public sector manufacturing industry have been described. After successful implementation in several production units, the model was examined for congruence with well‐known frameworks in Organisation Development (OD).

Findings

The model has congruence with several OD frameworks. It complements OD by harnessing organisational knowledge through creative involvement of organisational members, adopting three‐tier working to involve the organisation at different levels, employing three‐phase execution to sustain organisational members' motivation throughout the programme; and realising comprehensive work redesign while attaining ISO 9000 certification.

Originality/value

The study show‐cases ISO 9000 as an excellent OD intervention.

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.