2005
DOI: 10.1287/mnsc.1040.0358
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The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis

Abstract: T he ISO 9000 series of quality management systems standards, introduced in 1986, has been adopted at over 560,000 locations worldwide. Anecdotal evidence suggests that firms can achieve internal benefits such as quality or productivity improvements or that certification can help firms maintain or increase their market share, or both. Others argue that the standard is too generic to cause performance improvement but can be seen as a signal of good management. In this paper, we track financial performance from … Show more

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Cited by 505 publications
(557 citation statements)
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“…The first group focuses on examining the impact of quality standards on firm outcomes. Corbett et al (2005) use the event study method to investigate the impact of ISO 9000 certification on financial performance. Levine and Toffel (2010) use a matching model to examine how the adoption of ISO 9001 quality management standards affects employee outcomes such as employee earnings, turnover, and safety.…”
Section: Quality Management (Onlinementioning
confidence: 99%
“…The first group focuses on examining the impact of quality standards on firm outcomes. Corbett et al (2005) use the event study method to investigate the impact of ISO 9000 certification on financial performance. Levine and Toffel (2010) use a matching model to examine how the adoption of ISO 9001 quality management standards affects employee outcomes such as employee earnings, turnover, and safety.…”
Section: Quality Management (Onlinementioning
confidence: 99%
“…Examples of standardized processes that have driven quality and productivity improvements include Toyota's approach to standardizing work and then enhancing it through continuous improvement (Shah et al 2008;Staats, Brunner and Upton 2011), and the ISO 9000 system, which creates standard processes that can be adhered to and then improved over time (Corbett, Montes-Sancho and Kirsch 2005;Levine and Toffel 2010). Many other industries have seen operational performance improve as a result of standardized processes, such as software (Harter, Krishnan and Slaughter 2000), long-haul trucking (Baker and Hubbard 2004), and retail (DeHoratius and Raman 2008).…”
Section: Introductionmentioning
confidence: 99%
“…Additional research supports the view that ISO 9001 implementation and subsequent certification improves overall performance (Corbett at al., 2005) and ISO 9001 QMS successful implementation is most significant when the motivations are internal rather than external and when the standard is interpreted and used as a companywide management improvement approach (Fonseca, 2015a). Yin and Schmeidler (2009) concluded that standardized management systems may be implemented in very different ways depending on organizations, which might explain some heterogeneous performance organizations that apply them.…”
Section: Literature Reviewmentioning
confidence: 60%