An evaluation of ISO 9000 initiatives in Indian industry for enhanced manufacturing performance

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.

Contribution of green manufacturing for realizing business performance in Indian small and medium scale organizations (SME’s)

Purpose

The current manuscript is focused on evaluating the capabilities of green practices that affect various business performance (BP) parameters of small and medium scale Indian manufacturing enterprises (SME’s). This study aims to obtain multiple significant factors that influence the implementation of green practices.

Design/methodology/approach

The manuscript focuses on statistical testing of responses obtained from 168 Indian SMEs to determine the relationship between input parameters and BP parameters. This paper starts with deploying tests such as Cronbach alpha and inter-item covariance test to obtain confidence in data collected, followed by various statistical tests such as Pearson correlation, multiple regression, canonical correlation to extract various significant factors the study. Further Games-Howell post hoc test is deployed to evaluate the significant improvements in BP gained over a reasonable duration of time. Finally, a discriminant validity test is used to find out the success or failure of the organizations that participated in the survey.

Findings

This research contributes to the holistic effect of green manufacturing (GM) toward gaining improvements in terms of different BP parameters taken for the study. It has been found that various input factors such as customer attributes, adoption of new technology, social pressure and government pressure are the main parameters for GM implementation. Further, it is observed that those at the maturity phase of GM implementation are reaping higher benefits than the organizations at the transition and stability phase.

Originality/value

The current study has been accomplished in Indian SME manufacturing organizations to investigate the effects of GM implementation in the organization. Although research findings imply the effective use of green practices within the organization to reap BP parameters and improve the market’s competitive image, the study cannot be generalized and can be used as an insight for both academicians and end-users in understanding the overall achievements of GM.

A study of the activities and impact of the Asian Productivity Organisation (APO)

Purpose

The purpose of this paper is to investigate the activities of the Asian Productivity Organisation (APO). The study identifies the various roles and activities of the APO and evaluates how well it performs in these roles. The study also investigates the impacts of the APO on the productivity initiatives of National Productivity Organisations (NPOs) in 16 Asian countries. These productivity initiatives are important in enhancing productivity performance and national competitiveness in the countries of interest.

Design/methodology/approach

The study collects data from stakeholders in the NPOs in 16 countries. A Likert-scale questionnaire was used to collect data from two types of respondents – NPO CEOs and NPO professional/technical staff. Data were analysed by comparing the responses across the participating countries.

Findings

The result shows that there was general satisfaction with the mission, vision and strategic direction of the APO. With respect to the operational performance of the organisation, the study showed that there were some differences in perception of the performance of the APO although the overall perception was positive.

Practical implications

The study provides insights into the top management of the APO with regards to deciding on the future direction of the organisation and, in particular, the ways in which it understands and supports the varied requirements of the different NPOs.

Originality/value

Organisations such as the APO dedicate significant resources into supporting NPOs, and by extension productivity-related commercial operations, in several countries. It is important to understand how these services are perceived and experienced in these countries, and a definitive study to examine this has not previously been carried out.

The contribution of quality tools and integration of quality management systems to the organization

Purpose

The purpose of this paper is to examine the contribution from the use of quality tools and the implementation of quality management systems (QMSs) to the management of an organization. The question is if these aspects have an impact on the important elements of a QMS, like critical success factors (CSFs), but more on the performance derived from its functioning.

Design/methodology/approach

A questionnaire was created and addressed to Greek companies which were certified with at least one QMS standard, in this case ISO 9001:2008.

Findings

It was concluded that companies implementing more than one QMS and more than nine quality tools gave more importance to specific CSFs of the QMS and also displayed better performance from the rest of the companies. The final conclusion is that the utilization of tools, techniques, and the implementation of more than one QMS – integration of management systems (MSs) – can contribute to many aspects of organization functioning.

Research limitations/implications

This study was based on the perception (subjective data) of only one quality manager/representative of each company. The companies were not asked about specific actions they have established to integrate their MSs.

Practical implications

This paper provides a closest look to the utilization of more than one QMS and the use of quality tools. These actions, as concluded, can play an important role in the management of organizations, and managers could use them in an appropriate way.

Originality/value

This paper aims to evaluate the value of QMS integration and the utilization of quality tools to specific issues of QMS as CSFs and performance in Greek companies.

An approach to address principal supplier development impediments

Purpose

The purpose of this paper is to assist a manufacturer for determining the principal supplier development impediments (SDIs) that are affecting the supplier development programs (SDPs) and yield a basis for drawing the appropriate mitigation strategies.

Design/methodology/approach

The proposed approach starts with the application of fuzzy analytic hierarchy process and Pareto analysis to obtain the principal SDIs. Subsequently, the interpretive structural modeling and Fuzzy-Matrice d’Impacts Croisés-Multiplication Appliquée à un Classement analysis are applied on the principal SDIs to explore the root causes inducing ineffectiveness in the SDPs.

Findings

The outcomes of the proposed approach were demonstrated through a case study conducted in an Indian automotive components manufacturing company. The principal SDIs were identified, ranked, classified and structurally related for the said case company’s manufacturing environment. It was found that the lack of competent workforce, level of nascent relationship between manufacturer and suppliers and poor devolution of authority were the main SDIs that the case company has to primarily focus to make its SDPs effective.

Research limitations/implications

Although the study was conducted in a practical case situation, the obtained results are not indiscriminate to the other case situations. However, the proposed approach can be applied for analyzing the SDIs in any manufacturing environment once the set of SDIs relevant to that environment are carefully chosen.

Practical implications

The methodology would assist a manufacturer to proactively identify the SDIs that it has to primarily focus and subsequently devise the mitigation strategies for smooth running of its SDPs.

Originality/value

By utilizing the identified SDIs and applying the proposed methodology a manufacturer can find the main SDIs that are making the SDPs ineffective and accordingly fix the hindrances through certain mitigation strategies designed.

Influence of human factors on organisational performance

Purpose

– The purpose of this paper is to explore the influence of human factors in quality management on quality improvement practices and organisational performance in the Yemeni industrial sector.

Design/methodology/approach

– Data were collected via a quantitative survey with a questionnaire distributed to 261 managers from 87 industrial companies. Replies from 210 managers give a response rate of 80 per cent. Data were analysed with Statistical Package for the Social Sciences 16.0, including factor analysis, reliability analysis, descriptive statistics, and correlation analysis. Structural equation modelling was carried out using Amos to evaluate the model and hypotheses.

Findings

– Human factors influence positively quality improvement practices and organisational performance. Quality improvement practices positively influence organisational performance. Human factors indirectly and significantly influence organisational performance via the mediator of quality improvement practices.

Research limitations/implications

– The findings will be useful to both researchers and managers, especially those in Yemeni industrial companies. For further work, this study can be expanded to cover companies in other Middle East countries, and it may include more human factors.

Originality/value

– The study is one of a few that investigate the influence of human factors on quality management. Additionally, this study is the first to carry out such research in the Yemen and the Middle East region.

An evaluation of just-in-time initiatives in the Indian industries

Purpose

– The purpose of this paper is to develop an insight into the prevalent just-in-time (JIT) practices adopted in Indian manufacturing industry for realizing the development and growth of the industrial sector. The endeavor of Indian manufacturing organizations to achieve manufacturing performance enhancement through JIT implementation has been highlighted in the present study.

Design/methodology/approach

– The present study has been conducted in the large- and medium-scale manufacturing industries of India that have successfully implemented or are in the various stages of implementing JIT. The approach of study has been directed toward assessment of JIT initiatives in Indian manufacturing industries.

Findings

– From the present study it is apparent that Indian organizations have been reasonably successful in improving the business performance by implementing holistic JIT initiatives and have successfully reaped the benefits of JIT implementation. However, it is also revealed in present study that Indian manufacturing industries need to work more aggressively on managing few issues of JIT.

Originality/value

– The value of paper is in calculation of percent point score for each issue of JIT in context to Indian manufacturing industry and to find out significant as well as issues that need to worked aggressively by Indian manufacturing industry to reap the benefits of JIT.

The effects of ISO 9001 certification on the performance of Greek companies

Purpose

– The purpose of this paper is to examine the benefits of ISO 9001 certification and the association between them, the level of implementation of the critical success factors (CSFs) required for the appropriate functioning of the quality management system in ISO 9001:2008 certified companies and between other demographic variables.

Design/methodology/approach

– A research project was carried out in Greek companies from all business sectors using the questionnaire technique. The selected companies implement a quality management system in accordance with the ISO 9001:2008 standard. Correspondence analysis, a methodology from the field of multidimensional statistics, was used to identify significant differences between the effects on performance and other variables such as the implementation level of CSFs relating to the quality management system and years of certification.

Findings

– External benefits seem to be more important than internal benefits. The least important benefits were mostly business results, such as profits, costs and market share. Differences were detected between the level of performance and certain demographic variables such as the use of International Organization for Standardisation (ISO) alone, size and years of certification. The certified companies have generally benefited from ISO implementation.

Research limitations/implications

– The study was based on the perceptions (subjective data) of only one quality manager/representative from each company. The motives for ISO certification, which can seriously affect the benefits derived, were not examined.

Practical implications

– The measures presented here can be used by certified companies to evaluate performance (financial or not) related to ISO 9001 certification and to discover those factors that contribute to the better exploitation of the ISO 9001:2008 standard.

Originality/value

– This paper aims to evaluate performance since the implementation of the ISO 9001:2008 standard in Greek companies, which are confronting a tough economic environment and to analyse this data with a methodology from the multidimensional field, with the complementary use of some special tables of coincidence.

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.