Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000

Abstract

This paper investigates the effects of implementing the international standard ISO 9000 on measures of business and operating performance. Based on the literature and a case study we identified two stages in implementing ISO 9000-(1) Installation, which has two dimensions: (a) external coordination and (b) integration; and (2) Usage, which also has two dimensions: (a) in daily practice and (b) as a catalyst for change. The hypotheses were that installation of ISO 9000 is positively related to use of ISO 9000, and use of ISO 9000 is positively related to operating performance. In addition, use of ISO 9000 is positively related to business performance since operating performance is positively related to business performance. We used hierarchical linear models (HLM) to test our hypotheses and validated the results by comparing the longitudinal performance of ISO 9000 certified companies with four matched samples of companies that were not ISO 9000 certified. Our analysis indicated that while the installation stage was necessary to successfully implement ISO 9000, organizations achieved a distinct operating advantage from this replicable standard when they used it in daily practice and as a catalyst for change. These findings were based on responses to a survey of 1150 quality managers in 924 organizations, which was supplemented for about one-third of the organizations with longitudinal information from the Compustat database on the organizations' business and operating performance. The validation indicated that implementing the ISO 9000 standard led to improved operating performance, but that this outcome did not necessarily or automatically yield better business performance. #

Modelling the impact of ISO 14001 on environmental performance: A comparative approach

“…Although most of these studies are based on an optimistic view of ISO management systems efficiency, the results of empirical studies regarding this question are often contradictory. Thus, in the case of the ISO 9000 standard, many studies have emphasized the benefits of the standard in terms of improved quality, customer satisfaction and production management (Bhuiyan and Alam, 2005;Naveh and Marcus, 2005;Standards Council of Canada, 2000). On the other hand other studies, fewer in number, have questioned these benefits and consider that the standard has little or no impact on the improvement of performance (Acharya and Ray, 2000;Boiral, 2003;Heras et al, 2002;Wilson et al, 2003).…”

A proposal of a research model on internalization of quality standards using PLS

“…The studies on internalization have also analyzed other drivers which might be considered in the future in order to explain other factors which might facilitate internalization, and thus an impact upon benefits. These other drivers which might play a role in the relationship between internalization and performance are the following (Briscoe et al, 2005;Naveh and Marcus, 2005;Christmann and Taylor, 2006;Singh, 2008): quality culture, leadership, pressure by stakeholders, innovation environment, and system coordination with suppliers and customers. These studies have shown that these drivers (that we can classify as internal and external drivers) may have positive effects on internalization.…”

“…These studies have shown that these drivers (that we can classify as internal and external drivers) may have positive effects on internalization. Internalization can be measured using two constructs: "daily practices" and "continuous improvement" (e.g., Naveh and Marcus, 2005). Accordingly, the following hypotheses are proposed:…”

“…Studies show that the higher the internalization level, the greater the operational and marketing benefits (Briscole et al, 2005;Naveh and Marcus, 2005;Jang and Lin, 2008). This is the case because firms develop the quality standard requirements to a greater extent.…”

“…However, the effects on business performance are not so conclusive. According to Naveh and Marcus (2005), there could be direct effects of operational performance on business performance, although other factors which might affect this relationship should also be considered. Similarly, Jang and Lin (2008) pointed out that operational performance has an impact on business performance.…”