OHSAS 18001 certification and operating performance: The role of complexity and coupling⋆

Abstract

Today, manufacturing firms encounter pressure from multiple stakeholders to manage occupational health and safety issues properly, systematically and transparently. While manufacturing firms commonly use internally developed Occupational Health and Safety Management Systems, there is growing pressure to adopt externally certified system such as OHSAS 18001. However, there are conflicting views and little empirical evidence that examines the linkage between OHSAS 18001 certification and operating performance. Hence, this paper examines the impact of OHSAS 18001 on operational performance through three theoretical lenses: Institutional Theory, Normal Accident Theory, and High Reliability Theory. We also investigate how complexity and coupling moderate the relationship between OHSAS 18001 and operational performance. Based on a sample of 211 U.S. listed manufacturing firms with OHSAS 18001 certification, we find that certification leads to significant increases in abnormal performance on safety, sales growth, labor productivity, and profitability and that these benefits increase as complexity and coupling increase.

Analysis of the relationship between the adoption of the OHSAS 18001 and business performance in different organizational contexts

“…Existing research on safety management supports the notion that businesses adopting safety systems experience performance improvements (Abad et al, 2013;de Koster et al, 2011;Lo et al, 2014). The analysis of how enhanced safety management systems improve various dimensions of performance is the focus of this study.…”

“…The fundamental objective of the OHSAS 18001 standard is to support and promote good practices in the area of occupational health and safety via systematic and structured management systems (Chang and Liang, 2009). Also, prior studies suggest that safety practices linked to the OHSAS 18001 improve both competences at existing operational procedures and the functioning of the business (Abad et al, 2013;Lo et al, 2014). As a result, adopting organizations could be in a solid position to minimize risks to its employees, and subsequently to reduce work accidents (Fernández-Muñiz et al, 2012).…”

“…Thus, the adoption of the OHSAS 18001 can be understood as a reaction to poor safety performance (Abad et al, 2013;Bevilacqua et al, 2016;Lo et al, 2014).…”

“…In this context, the OHSAS 18001 certification is becoming the dominant international safety system adopted by organizations to engage in processes to promote continuous improvements of work safety conditions (Fernández-Muñiz et al, 2012;Lo et al, 2014). Moreover, the OHSAS 18001 is the basis for the new ISO 45001 standard on work safety that will likely be available in 2017, which makes the strategic importance of the OHSAS 18001 more evident.…”

“…Moreover, the OHSAS 18001 is the basis for the new ISO 45001 standard on work safety that will likely be available in 2017, which makes the strategic importance of the OHSAS 18001 more evident. The increased relevance of safety management for managers and policy makers had led to a growing body of work on the role of safety systems on performance; however, literature is relatively silent on how the OHSAS 18001 impacts performance metrics unrelated to work safety (Abad et al, 2013;Lo et al, 2014). The OHSAS 18001 is a source of knowledge but the characteristics of the safety system themselves, of the environment in which the system is used, and of the operational tasks which condition both the visibility of the consequences of accidents can each affect its influence.…”