Synergies in standardized management systems: some empirical evidence

Examining the link between integrated management systems and firm performance: do the integration strategies matter?

Purpose

This study attempts to examine the performance differences between firms with and without integrated management systems (IMSs), and the impact of three integration strategies (i.e. implementing quality management system (QMS) first, then environmental management system (EMS) (QMS + EMS); implementing EMS first, then QMS (EMS + QMS); implementing QMS and EMS simultaneously (QMS − EMS)) on firm performance to reveal the IMS–performance relationship and provide empirical evidence.

Design/methodology/approach

Two panel datasets were collected during 2009–2019. This study used the Mann–Whitney non-parametric test and a sample of 33,155 observations from 4,316 Chinese listed firms to compare the performance differences between the IMS and non-IMS groups through performance indicators. This study also examined the effects of three integration strategies on firm performance using a cross-sectional time-series feasible generalized least squares (FGLS) regression model and a sample of 11,289 observations from 2,037 firms.

Findings

The results show that significant performance differences exist between IMS and non-IMS firms; however, the performance of firms with an IMS is not always better than that of firms without IMS. Furthermore, the simultaneous integration strategy has a positive impact, whereas sequential integration strategies (QMS + EMS and EMS + QMS) negatively affect firm performance. Compared with the EMS + QMS strategies, the QMS + EMS strategies have a more prominent effect on firm performance. Simultaneous strategies are more effective than sequential strategies.

Practical implications

Firms should fully consider the potential benefits and costs associated with the difficulties of IMS implementation and the implementation order of different management systems and the potential effects of the management systems in different conditions. Firms also should try to develop internal capabilities through implementing different integration strategies.

Originality/value

By comparing performance differences between firms with and without IMS, this study enriches the understanding of the performance benefits of IMS implementation in the Chinese context. By examining the impact of integration strategies that follow different sequences on firm performance, this study promotes an in-depth understanding of the integration strategies and their performance implications beyond simple descriptions and also provides new insights into operations strategy models.

Impact of integrated audit management effectiveness on business sustainability in manufacturing firms

Purpose

This study aims to investigate the effectiveness of integrated audit management and its impact on business sustainability for an emerging economy.

Design/methodology/approach

Drawing on the dynamic capability and contingency theory, the authors investigated the factors on integrated audit management implementation using a sample of 104 certified Malaysian manufacturing firms. The collected data has been analysed using the partial least squares through the structural equation modelling technique.

Findings

The findings have revealed that human resource capability, technological capability and quality capability have a robust influence on the importance of the internal audit process, which, in turn, leads to integrated audit management effectiveness towards the outcome of business sustainability. The results have also indicated the mediating effect of the internal audit process on the research model.

Originality/value

The contribution from the empirical findings will provide productive insights to help manufacturing firms devise an effective integrated internal audit management system to ensure business sustainability and increase competitiveness advantages for an emerging economy.

Selective integration of management systems: a case study in the construction industry

Purpose

Despite the widely recognized benefits of integrating management systems, many multi-certified organizations continue to implement two or more systems separately. This can happen either through ignorance or by deliberate intent. Focusing on the second reason, the purpose of this paper is to examine a number of factors that can lead an organization to consciously choose not to integrate all of its management systems.

Design/methodology/approach

The paper presents a case study of a construction company that has integrated the environmental management system and the occupational health and safety management system – which implies that the company is familiar with the practice of integration – while choosing to implement the quality management system separately from the other two.

Findings

The findings of this study show that the reasons that led the company not to integrate all of its systems are not so much related to the compatibility of these systems, but are much deeper and have implications that touch upon its basic principles and values. Despite the occurrence of some organizational and operational problems (such as complexity of administrative issues and bureaucracy), the separate implementation of the systems allowed the company to preserve both the balance between the powers of its executives and the ability to attach special importance to each area: quality, environment, health and safety.

Originality/value

This study will be useful in order to understand that selective integration of management systems is based on the belief that integration is not ade factodesirable goal, especially when the estimated cost-benefit ratio of non-integration is better than that of integration.

Integrated management systems – interpretations, results, opportunities

Purpose

The purpose of this paper is to study how the expression “integrated management systems” is interpreted in literature, what it means to have an integrated management system (IMS) and what the results of this are.

Design/methodology/approach

A literature review was conducted based on Scopus using the search term “Integrated Management Systems.” In the chosen articles, effects of integration, scope, level and extent of integration and if the approach is inside-out or outside-in, have been analyzed.

Findings

Most articles on IMS conclude that integration is beneficial regarding cost saving, operational benefits and improved customer satisfaction. The general approach in the articles, describes an inside-out approach with focus on integrating existing management standards. The scope of integration covers typically management systems for quality, environment and occupational health and safety.

Practical implications

An IMS is found to be a system that integrates existing management standards based on an inside-out approach. This indicates possibilities for both practical improvement and research in exploring how integrated stakeholder needs could be managed, possibly as process-based IMSs.

Originality/value

This paper sheds light on the ambiguous interpretation of the IMS concept.

Design of an integrated management system (IMS) in a government-run medical evaluation organisation

Purpose

– The authors present the application of the López-Fresno approach in designing an integrated management system (IMS) for an aviation company to the development of an IMS in a government-run organization responsible for the medical evaluation of work disabilities. The purpose of this paper is to share the design process, with the intention of showing that this approach is applicable to other sectors and proposing generalization and applicability strategies to other smaller government entities.

Design/methodology/approach

– The study involves two phases. Phase I applies the López-Fresno approach to design a basic IMS-I and ends with a European Foundation for Quality Management (EFQM) evaluation, whose suggestions were taken into consideration for the final design of IMS-II during phase II. The data were obtained from the organization's own functioning. There was a significant degree of personal involvement by the authors, external consultants and members of the management committee in areas ranging from the approach itself to the various components analyzed.

Findings

– The approach led to a better use of human and material resources and produced various advances in both internal and external communication and significant progress in employee motivation in their dealings with users and stakeholders.

Originality/value

– The study offers guidelines and recommendations for designing an IMS adapted to small, compact, administrative organizations that operate with stakeholders with highly disparate outlooks and interests, with different quality levels, in a context related to competitiveness and economic development.

Effects of a production improvement programme on global quality performance

Purpose

– How can multinational companies become more productive on a global scale? The purpose of this paper is to investigate whether a production improvement programme can improve quality performance in a global network of factories. Specifically, the paper analyses the effects of the Volvo Group's production improvement programme on global quality performance.

Design/methodology/approach

– The research approach is a case study of the Volvo Production System (VPS). The paper analyses the effects of the programme on global quality performance, using data from an implementation audit and a questionnaire survey. The paper triangulate the analysis with longitudinal quality performance data from three different plants.

Findings

– The paper finds a significant and strong positive relationship between implementation of the VPS and improvements in both process quality and product quality. Hence, the paper suggests that tailored production improvement programmes have clear positive effects on global quality performance.

Research limitations/implications

– As with all case studies, the paper should use caution when generalising beyond the specific case. However, the Volvo Group is a broad and diversified corporation, which mitigates this limitation.

Originality/value

– While many studies have investigated the effect of production improvement programmes on performance, very few have looked at the effect of a corporate multi-plant programme. This study represents one of the first attempts to do so. The paper also provides a case description of the VPS that readers might find valuable in its own right.

Institutional pressures, dynamic capabilities and environmental management systems: investigating the ISO 9000--environmental management system implementation linkage

We hypothesize a model where domestic and international institutional pressures lead to the successful implementation of ISO 9000 and can in turn lead to the successful implementation of environmental management systems such as ISO 14001 environmental certification systems or total quality environmental management (TQEM) systems. Using appropriate tests for mediation with dichotomous mediators and outcomes, we find that the model holds for a sample of 377 Chinese manufacturers in six major industrial groups in Suzhou, Dalian, and Tianjin. Our findings are consistent with the theory linking internal capabilities to heterogeneous external (in this case, institutional) pressures on organizations for environmentally proactive efforts. Our findings suggest that institutions in developing countries with significant environmental concerns such as China as well as foreign suppliers and partners to firms in these countries should encourage and support ISO 9000 implementations by local firms. These findings may influence other developing nations' adoption of quality and environmental process systems.