The Relationship Between ISO 9000 and Business Performance-Does Registration Really Matter

The relationship between ISO 9000 and business performance: Does regi...
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The relationship between ISO 9000 and business performance: Does registration really matter?
Authors: Simmons, Bret L. White, Margaret A. Source: Journal of Managerial Issues; Fall 1999, Vol. 11 Issue 3, p330-343, 14p Document Type: Article Abstract: This exploratory study of 126 firms in the electronics industry provides a comparison of performance results for ISO 9000 registered and non-registered firms. Results show that when firm size is controlled, ISO registered companies were more profitable than non-ISO companies. Contrary to hypothesized benefits of ISO 9000 registration, there was no significant difference between groups in terms of operational performance and foreign sales. Implications for researchers and practitioners are explored. ISSN: 10453695 Accession 511135814 Number:
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Author: White, Margaret A Title: The relationship between ISO 9000 and business performance: Does registration really matter? Source: J Managerial Issues; Fall 1999; 11, 3; pg. 330-343 ISSN: 1045-3695 Publisher: Pittsburg State University, Department of Economics 1999 Copyright Pittsburg State University, Department of Economics . Provided by ProQuest LLC. All Rights Reserved. The Relationship Between ISO 9000 and Business Performance: Does Registration Really Matter?* At the beginning of this decade, acceptance of the quality system standard ISO 9000 by U.S.
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companies appeared uncertain. In 1992, a survey of midsize U.S. firms by consultants at Grant Thornton found that 48% had not heard of the quality system standard ISO 9000, and only 8% planned to become certified by the end of that year. The survey also revealed only 11% of those companies thought ISO 9000 would affect them much at all (Wall Street Journal, 1992). Four years later, a similar survey by these same consultants discovered that by the end of 1998, 52% of all midsize U.S. manufacturers planned to be ISO 9000 certified (Wall Street Journal, 1996). This unexpected turnaround in favor of ISO 9000 is not unique to the U.S. Worldwide, the number of ISO 9000 companies has grown from a mere handful in 1987 to an estimated 200,000 registered sites as of 1997 (Goodman, 1998). In fact, ISO 9000 is arguably the most influential standard of its kind in the world. This rapid acceptance of ISO 9000 suggests that many firms find that the standard is well written and worth observing, in spite of the fact that there is no compelling evidence that the standard is ultimately good or bad (Uzumeri, 1997). The theory implicit among practitioners that ISO 9000 can contribute to competitive advantage has attracted little interest from researchers. Yet many firms are increasingly questioning the link between ISO 9000 and business performance. Does the size of the firm affect the benefits obtained? Do firms that are committed to international markets or export extensively benefit more than firms competing domestically? (Brown et al., 1995). According to ANSI/ISO/ASQC 9000-1-1994, the ISO 9000 standard is intended to provide a generic core quality system that can be applied to a broad range of industry and economic sectors. As a quality system standard, it is concerned about how quality is managed by a company but it does not directly address product quality (Jackson and Ashton, 1995). The ISO 9000 standard describes what elements quality systems should encompass but not how a specific organization should implement these elements. The standard intends for each organization to design and implement a quality system that works for its specific products, processes, and practices. The most comprehensive standard, ISO 9001, includes management responsibilities for the quality system, procedures for contract review, and procedures to control and verify product design. ISO 9002 differs only in that it does not address product design. Certification that an organization's quality system meets the requirements of the ISO standard is established by an independent third party selected by the organization. The time required for a firm to achieve certification of one of its sites could range from six months to two years, but is typically around one year. Depending on the size of the plant, the cost to prepare a site for ISO 9000 ranges from $15,000 to $1 million. The typical cost to prepare a medium sized plant for ISO 9001 is $250,000 (Peach, 1997; Uzumeri, 1997; Zuckerman, 1997). Because of the time, effort, and cost required to obtain ISO 9000 certification, along with the proposed organizational benefits, the decision to pursue ISO 9000 is most likely a strategic one made by the organization's top management team. ISO 9000 is most prevalent in Western Europe where it has its roots. Although compliance with ISO 9000 is voluntary, the standard has been marketed so that many companies believe it is a requirement for doing business in Europe. Indeed, any company that lacks a certificate of compliance could be at a significant marketing disadvantage if its competitors do have certification. Juran (1995) believes this perception may be the most significant reason why there has been such a rush to become certified. He also states that to be competitive in the global marketplace, most
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companies must go beyond the basic quality management system that is outlined by ISO 9000. Although ISO 9000 is increasing in popularity, it is not without its skep tics. Officials of the National Institute of Standards and Technology contend that the central purpose of ISO 9000 registration is to enhance and facilitate trade by reducing audits and helping to ensure buyers that specified practices are being followed (Reimann and Hertz, 1996). They believe that it is important for U.S. firms to recognize that registration simply means conformity to documented practices. Reimann and Hertz (1996) state that ISO registration does not necessarily mean the following: 1) good or improving product quality, 2) product that satisfies customer's needs, 3) comparable levels of product quality among registered companies, 4) better quality than nonregistered companies, or 5) good or improving productivity, responsiveness, competitiveness, or workforce development. They caution that when quality efforts focus primarily on conformity and documentation, there may be a separation between quality management and overall business management. Quality expert J.M. Juran (1995) acknowledges that the comprehensive quality system defined by the ISO standards has a degree of merit, but reiterates that certification alone will not enable companies to attain world-class quality. Apparently, these reservations about ISO 9000 have not been a major concern for U.S. companies. Several recent surveys reveal the most common reasons why companies seek ISO 9000 certification. A study of 362 U.S. firms registered to ISO 9000 found that the top three reasons for pursuing registration are to increase market share, to meet customer requirements, and to improve process efficiency (Ebrahimpour et al., 1997). A smaller survey of 48 ISO companies in the New York metropolitan area found-that the top two reasons these companies sought registration was because their customers required it and because they believed ISO registration would increase operational efficiency and reduce costs (Struebing, 1996). These results suggest a possible shift from having to implement ISO 9000 (customers want it) to wanting to implement it (realize the benefits) as the rationale for registration (Wenmoth and Dobbin, 1994). This is important because ISO 9000 certification may be a poor explanatory variable of customer satisfaction (Terziovski ct al., 1995). The next section will consider the potential beneficial relationship between ISO 9000 registration and business performance. Business Performance and ISO 9000 The conceptual and empirical foundations for the general link between improved quality and business performance are well established. Three primary authorities on quality, W. Edwards Deming (1986), J.M. Juran (1974), and Kaoru Ishikawa (1985), agreed organizations that produce quality goods will eventually do better on traditional measures of effectiveness such as profitability than will organizations that attempt to keep costs low by compromising quality (Hackman and Wageman, 1995). Improved effectiveness is accomplished through both an operations and customer orientation. The operations orientation produces increased revenues through enhanced product reliability and reduced costs through process efficiencies, while a complementary customer orientation produces increased revenues and reduced costs through market advantage and product design efficiency, respectively (Reed et al., 1996). These links between quality and business performance are established in both economic models (Fine, 1986; Lederer and Rhee, 1995) and empirical studies (Chowdhury and Menon, 1995; Hendricks and Singhal; 1997; Jacobson and Aaker, 1987; Powell, 1995).
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However, the specific empirical relationship between ISO 9000 registration and business performance has not been established. Studies have shown that ISO companies expect their quality systems will lead to improving product design, process design, product quality, public image and supplier relations (Ebrahimpour et aL, 1997). A separate study showed that ISO companies perceived their two top external benefits to be improved quality and competitive advantage and their two top internal benefits to be improved documentation and quality awareness (Peach, 1997). Conceptually, arguments for the benefits of ISO 9000 registration are linked to the previously discussed general relationship between quality and business performance. Clause 7.2 of ANSI/ISO/ASQC 9000-1-1994 states "Increased global competition has led to increasingly more stringent customer expectations with regard to quality. To be competitive and sustain good economic performance, organizations/suppliers need to employ increasingly effective and efficient systems" (1994: 8). Accordingly, the most common claims are that ISO 9000 registration leads to improved operating performance through reduction of scrap and corrective action processes, enhanced profitability, and marketing advantages resulting from the international recognition of the ISO logo (Ho, 1995; Jackson and Ashton, 1995; Papps, 1995; Wenmoth and Dobbin, 1994). Such marketing advantages are especially important for firms with an international sales strategy (Ferguson, 1996). Because the standard is written to address areas where good business practices are essential, it is considered a good general guideline for efficient operations (Arnold, 1994). Zuckerman (1997) asserts that the major benefit of the ISO 9000 standard is the process of establishing a solid quality base within a company. Acceptance of this argument is critical to the conceptual link between ISO 9000 registration and enhanced business performance through perceived product quality. Recall that one of the major criticisms of ISO is that it does not ensure product quality or performance (Papps,1995; Reimann and Hertz, 1996). However, clauses 4.9 and 4.9 (a) of ISO 9001 (ANSI/ASQC Q9001-1994) state: 4.9 Process Control: The supplier shall identify and plan the production, installation, and servicing processes which directly affect quality and shall ensure that these processes are carried out under controlled conditions. Controlled conditions shall include the following: a) documented procedures defining the manner of production, installation, and servicing, where the absence of such procedures could adversely affect quality. (emphasis added) (1994: 5). While it is accurate to observe that clauses 4.9 and 4.9(a) do not guarantee product quality, it is unfair to suggest that the standard is indifferent on the subject. The growing acceptance of the position that implementation of the ISO 9000 standard should be considered the foundation of a more comprehensive quality program (Ho,1995; Merrill,1995; Peach, 1997; Wenmoth and Dobbin, 1994) or management system (Uzumeri, 1997) solidifies the conceptual link between the ISO 9000 quality system and business performance. Based on the claims of enhanced operational performance, international marketing advantages, and increased profitability presented earlier, the following hypotheses were formulated: H1: ISO 9000 companies experience higher levels of operational performance than non-ISO 9000 companies in their industry.
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H2: ISO 9000 companies experience higher levels of foreign sales than non-ISO companies in their industry. H3: ISO 9000 companies are more profitable than non-ISO 9000 companies in their industry. EMPIRICAL ANALYSIS Methods, Measures, Sample The source used to verify ISO 9000 registration was the ISO 9000 Registered Company Directory - North America: August 1996 (Irwin, :1996). This source provided a listing of all ISO 9000 registered companies in the U.S. and Canada, organized by two digit SIC code. For each registered site, it provided information on the standard to which the company was registered (e.g., 9001, 9002), effective date, registrar, certificate number, accreditation scheme, scope of registration (products and services), and the address, phone and fax of the site. To control for potential differences between industries, the sample for this study was drawn from a single two-digit SIC code. The selected SIC code was 36-electronic and other electrical equipment and components, except computer equipment-because there are more ISO 9000 registered companies in this SIC code than any other (Peach,1997). The list of potential companies and all associated financial data were acquired from Standard & Poor's COMPUSTAT PC PLUS database, thus ensuring that all the data were comparable. The COMPUSTAT database is considered to be a very useful source of archival financial data for studying business and corporate strategies as well as for conducting industry analysis (Davis and Duhaime, 1992). We selected 1995 as the year of focus in this study because the majority of companies in the COMPUSTAT database reported financial data through that year. Venkatraman and Ramanujam (1986) advocated that researchers adopt a broad conceptualization of business performance that includes both operational and financial indicators. Financial indicators would be used to indicate the profitability of the business. Some of the more common indicators of profitability are return on assets (ROA) and return on investment (ROI). Operational measures such as market-share, product quality, and efficiency could improve the understanding of business performance because these are factors that might lead to profitability. One of COMPUSTAT's standard reports provided a five-year summary of a company's key financial and performance ratios. Venkatraman and Ramanujam (1986) supported the use of COMPUSTAT as a secondary data source for both financial measures and operational measures. The ratio return on assets (ROA) was selected to represent the dependent variable profit and the ratio sales/ stockholder equity to represent the dependent variable performance (operational). Return on assets is a generally accepted measure of firm financial performance (Russo and Fouts, 1997). Although relative market position or market share would have been preferable measures of operational performance, this type of secondary data is not readily available for all businesses (Chakravarthy, 1986) and is not reported in COMPUSTAT. The ratio sales/stockholder equity was considered acceptable as a measure of overall operating efficiency. COMPUSTAT also provided foreign sales for each company as a percentage of total sales. To satisfy univariate normality assumptions, this variable was transformed for data analysis by taking its square root.
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Two covariates, firm size and time of registration for ISO firms, were considered for their potential significant correlation with the dependent variables. Findings of a recent metaanalysis showed that although firm size is often included as a control variable in studies of financial performance, "bigness" per se does ensure profitability (Capon et aL, 1990). We used the natural logarithm of total assets to represent the variable size. The transformation of this variable was necessary to satisfy the assumption of univariate normality. Powell (1995) found that time since adoption can affect the relationship between quality management efforts and performance. If ISO registration does have an impact on business performance, the impact of registration may increase with time. The variable time was defined as the difference in months between the date financial data were reported in 1995 and the date the company was registered to ISO 9000. We queried the database for a list of all U.S. companies whose primary SIC code was between 3600 and 3699. The COMPUSTAT listing provided the specific four-digit SIC code (e.g., 3661, 3672, 3674) for 599 companies in this range. Next, we checked this listing against our source of ISO registered companies. The ISO 9000 Registered Company Directory - North America: August 1996 (Irwin, 1996) did not provide the specific four-digit SIC code for the manufacturing sites it listed as registered under SIC 3600; however, it did provide a description of the site's certified products and services. Associating the company listed in COMPUSTAT with the registered manufacturing site was not a problem because for the majority of the ISO companies we identified, only one site was registered and the description of products matched the primary four-digit SIC code identified by COMPUSTAT. However, several companies did have multiple registered sites (for example, Texas Instruments had 19 registered sites). This became an issue when determining how long a company had been registered. In these cases, we focused on the earliest registered site where the product description corresponded most closely to the primary four-digit SIC code of the company. We used this registration date when calculating how long the company had been registered to ISO 9000. A more important issue associated with the data, especially for the few companies with multiple registered sites, is examining the efficacy of ISO 9000 registration with firm level financial performance variables. While acknowledging that it is the specific manufacturing site that is certified and not the total organization, we accepted the argument that the decision to pursue ISO 9000 registration is a strategic one made at the organizational level and must therefore be evaluated in relation to measures of overall corporate performance and profitability (Papps, 1995). For companies with multiple manufacturing sites, decisions regarding the priority of registration are probably more tactical than strategic. Of the 599 companies listed by COMPUSTAT, we were able to identify 148 (24.7%) as being registered to ISO 9000. To further control for variation within this industry, we limited the potential ISO sample to the 110 firms with the primary SICs 366X and 367X, the two most prevalent SICs in the sample. We further eliminated companies that either did not report 1995 financial data or had not been registered to ISO 9000 for at least 12 months, measured from the month they reported their 1995 financials. This resulted in an initial sample of 64 ISO companies for study. Preliminary analysis of the dependent variables revealed that values for ROA that exceeded +/- 35.00 resulted in violation of the critical assumptions of univariate normality and homogeneity of variance. One
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ISO company (SIC 3661) was eliminated from the sample for this reason. Of the 63 ISO companies in the final sample, 35 were registered to ISO 9001 and 28 to ISO 9002. A comparable group of 63 companies in SICs 366X and 367X that was not registered to ISO 9000 in 1995 was selected to complete the sample. In a final attempt to control for variation within the industry, we tried to balance the samples by four-digit SIC (Chakravarthy, 1986). The 15 ISO companies in SIC 3672 could not be matched because there were only 13 non-ISO companies reporting financial data in 1995 that met the ROA criteria. Several non-ISO companies in SIC 3672 reported extremely negative values for ROA in 1995. Thus, the composition of the non-ISO group includes one extra company in each of the SIC codes 3674 and 3661. Table 1 contains a summary of the final sample, including statistics on foreign sales as a percentage of total sales for each group and SIC code. If the three dependent variables are significantly correlated, a multivariate approach to data analysis is appropriate. The sample size required to detect a medium effect size at a statistical power of .80 in a multivariate framework with two groups and three dependent variables is approximately 100 (Hair et aL, 1995). Because we expected ISO registration to have a small to medium effect on the dependent variables, the resulting sample size of 126 was considered acceptable. The assumptions concerning power and effect size will remain valid even if the data support a univariate approach to data analysis. This sample size can be used only if the companies in SIC 366X and 367X do not differ significantly as a group along the dependent variables, thereby allowing them to be considered a combined sample. RESULTS To determine if the two different groups of SIC codes (366X and 367X) could be combined to form one sample, separate one-way ANOVAs for the dependent variables performance, profit, and foreign sales were performed. Their were no significant differences between the groups for any of the dependent variables: profit (F= 1.50, P < .22); performance (F= .20, P < .66); and foreign sales (F = .13, P < .72). As a result, the SIC codes were combined to form one sample (N = 126) for further analysis. The variable time was assessed for its impact on the three dependent variables for those companies regis tered to ISO 9000 (N = 63). Time of registration for ISO firms in our sample ranged from 12 months to 55 months, with a mean of 25.4 months. If the length of time registered to ISO 9000 had a significant impact on either performance, profit, or foreign sales, it would need to be included as a covariate in the subsequent analyses. Separate linear regressions revealed that the effect of time was nonsignificant for performance (F = .0001, P < .99), profit (F = .90, P < .35); and foreign sales (F = 3.67, P < .06); therefore, time was not included as a covariate in the subsequent analysis. The descriptive statistics for the three dependent variables and the covariate size are reported in Table 2. Although this appears to be a problem suitable for analysis with a multivariate technique, the data do not confirm this assumption. Because the three dependent variables are not significantly correlated, separate ANCOVAS will be performed on each of the dependent variables instead of performing a single MANCOVA. The variable size will be included as a covariate
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because its relationship to profit and foreign sales is significant. Examination of both normal probability plots and statistics for skewness revealed that all of the variables approximated the normal distribution. Levene's test of equality of error variances revealed that each dependent variable satisfied the assumption of homoscedasticty. Examination of the dependent variables reveals a significant difference for profit (F = 15.11, P < .0001) and nonsignificant differences for performance (F= .007, P< .93) and foreign sales (F = .51, PC .47) between ISO and non-ISO companies. The descriptive statistics for the two groups of companies (Table 2) show that ISO registered companies had a higher average profitability than companies in their industry that were not registered to ISO 9000; therefore, hypothesis 3 is supported. Contrary to hypotheses 1 and 2, ISO companies did not experience higher operational performance and foreign sales than non-ISO companies. One final test was conducted for descriptive purposes only. This ANOVA confirmed a significant difference in size between the two groups (F= 29.60, p < .0001 ), with the average size of ISO companies in the sample being larger than the average size of non-ISO companies. DISCUSSION Does registration really matter? This study provides a much needed systematic, multi-organization analysis of the relationship between ISO 9000 registration and multiple, objective measures of business performance that attempts to address this issue. Contrary to those that promote the benefits of ISO 9000, this study did not support the claims that ISO companies realize advantages in operational performance and foreign sales over non-ISO companies. In support of ISO 9000, we found that the average ISO 9000 registered company in the electronics industry is larger and more profitable than the average non-ISO company, although firm size did not affect profitability. For managers in this high technology area, the ability to produce affordable quality is especially important because within weeks of a product introduction by one company, a product can become an industrywide commodity (Feigenbaum, 1994). An ISO 9000 quality system may indeed be an important factor in the affordable quality equation because of its relationship to firm profitability. Contrary to Uzumeri's (1997) assertion, this study does offer evidence that ISO 9000 may ultimately be good for organizations. There are, however, several limitations to this study. It is important to realize that this study does not establish that ISO 9000 registration leads to firm profitability. The cross-sectional nature of this study was only able to show that in the electronics industry in 1995, ISO 9000 registered firms were more profitable than non-ISO firms. It is perhaps equally likely that the relationship between ISO 9000 registration and profitability is somewhat reciprocal. Because of the potentially high certification costs, firms that have slack resources may be more likely to add ISO 9000 to their repertoire than firms without slack resources. As more firms become registered and more data become available, longitudinal analysis with the inclusion of instrumental variables to identify directional causality in reciprocal relationships would be beneficial (Bentler and Chou, 1987). Research of this type would also promote an understanding of the mechanisms that influence the relationship between ISO and business performance that this study did not address. It is also likely that a similar reciprocal relationship may exist between foreign sales and ISO registration. Although we argued that higher foreign sales would be an indicator of ISO
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registration, the foreign sales activity of firms may also be a cause of decisions to pursue registration. One reason for the nonsignificant relationship we found between foreign sales and ISO 9000 registration may be the way we operationalized this variable. Because managers are persuaded to believe the international marketing benefits of ISO 9000 registration are pervasive, this study looked at total foreign sales. In reality, the international marketing benefits of ISO 9000 probably include significant regional effects. For example, in certain areas of the world, industrial sectors may demand, customers may expect, or government regulations may require that a supplier have either a quality management system that complies or is registered to an appropriate ISO 9000 standard. A study comparing only the European sales of registered and nonregistered firms may find that nonregistered firms do indeed experience fewer sales in this region. This study could also be extended by obtaining additional measures of effectiveness and by determining if the impact of ISO 9000 is the same in other industries as it was in the electronics industry. For example, Uzermeri (1997) raised the concern that a metastandard like ISO 9000 may slow management innovation. Because of the investment required to obtain certification, the standard may be very hard to repeal once adopted. Faced with the possibility of jeopardizing their certification, ISO 9000 companies may begin to discourage risk taking and experimentation. Using total R&D expenditures per employee as a proxy for innovation, this comparison would make a relatively uncomplicated yet valuable contribution to our understanding of the potential liabilities of ISO 9000 registration. While the dependent variables used in this study were relevant and convenient, examination of firm level performance variables does not capture the impact the ISO 9000 registration process has on performance for individuals, groups, and manufacturing facilities. Our understanding of the benefits of ISO 9000 registration would be enhanced by an empirical analysis of performance variables that are more fine grained than the ones presented in this study. For example, it would be interesting and beneficial to know how ISO registration affects such things as product quality, customer and supplier relations, and employee satisfaction. This study was very pragmatic. We accepted the popular arguments for the benefits of ISO 9000 registration and sought to empirically explore those claims. Not surprisingly, our results suggest that the relationships between ISO 9000 registration and business performance are complex and our understanding of these relationships is underdeveloped. We did not attempt to explain in any detail why ISO 9000 registration should affect measures of performance. Future studies that provide more rigorous theory development and testing than ours would be extremely beneficial. For practitioners, our findings should be interpreted with caution. Although we found a relationship between ISO 9000 registration and profitability, and did not find a relationship between registration and either performance or foreign sales, we cannot conclude that these effects were caused by registration. There may be other systematic differences between registered and nonregistered firms that significantly impact these relationships. For example, if companies that are more involved in quality programs in general are more likely to be ISO 9000 registered, then any observed relationships may be due to the general emphasis on quality rather than ISO registration. While this study does not support several proposed benefits of registration, we recommend against concluding that ISO 9000 registration does not impact business performance until longitudinal studies with more performance variables and larger sample sizes are conducted. Until
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then, practitioners would be advised to ensure that the business case for ISO 9000 is firmly established within their companies before seeking registration. In addition to ISO 9000, other quality standards are emerging that may have a substantial impact on U.S. industries. Two of the more prominent new standards are ISO 14000, the Environmental Management Systems Standards, and QS9000, Quality Systems requirements created by Ford, Chrysler, and General Motors for their suppliers (Peach, 1997; Uzumeri, 1997; Zuckerman, 1997). ISO 14000 is designed to harmonize environmental management systems with ISO 9000's quality management system, while QS9000 incorporates ISO 9001 and imposes additional requirements that address specific U.S. auto industry concerns. These standards may have a profound impact on management theory and practice as powerful stakeholders are aggressively promoting their immediate use (Uzumeri, 1997). There will continue to be an abundance of important research questions to be answered with regard to these standards. * The authors would like to thank Ken E. Case, the editor, and two anonymous reviewers for their helpful comments in the preparation of this manuscript. REFERENCE References REFERENCE ANSI/ASQC Q9000-1-1994. "Quality management and quality assurance standards - Guidelines for selection and use." Milwaukee, WI: American Society for Quality Control. ANSI/ASQC Q9001-1994. "Quality systems - Model for quality assurance in design, development, production, installation, and servicing." Milwaukee, WI: American Society for Quality Control. Arnold, Kenneth L. 1994. The manager's guide to ISO 9000. New York, NY: The Free Press. Bentler, Peter M. and C. Chou. 1987. "Practical issues in structural modeling." Sociological Methods and Research 16: 78-117. Brown, Alan, Robert Millen and Amrik S. Sohal. 1995. "Future research issues in total quality management." Asia Pacific Journal of Quality Management 4 (2): 88-92. REFERENCE Capon, Noel,John U. Farley and Scott Hoenig.1990. "Determinants of financial performance: A meta-analysis." Management Science 36 (October): 1143-1159. Chakravarthy, Balaji S. 1986. "Measuring strategic performance." Strategic Management Journal 7 (September/October): 437-458. Chowdhury, Jhinuk and Ajay Menon. 1995. "Multidimensional components of quality and strategic business unit performance: A PIMS test." Journal of Managerial Issues 7 (Winter): 449-465. Davis, Rachel and Irene H. Duhaime.1992. "Diversification, vertical integration, and industry analysis: New perspectives and measurement." Strategic Management Journal 13 (October): 511-524.
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Deming, W. Edwards. 1986. Out of the crisis. Cambridge, MA: MIT Center for Advanced Engineering Study. Ebrahimpour, M., B.E. Withers and N. Hikmet. 1997. "Experiences of US- and foreign-owned firms: A new perspective on ISO 9000 implementation." International Journal of Production Research 35 (2): 569-576. Feigenbaum, Armand V. 1994. "How total quality counters three forces of international competitiveness." National Productivity Review 13 (Summer): 327330. REFERENCE Ferguson, Wade. 1996. "Impact of the ISO 9000 series standard on industrial marketing." Industrial Marketing Management 25: 305-310. Fine, Charles H. 1986. "Quality improvement and learning in productive systems." Management Science 32 (October): 1301-1315. REFERENCE Goodman, D. 1998. "Thinking export? Think ISO 9000." World Trade 11 (August): 48-49. Hackman, J. Richard and Ruth Wageman. 1995. "Total quality management: Empirical, conceptual, and practical issues." Administrative Science Quarterly 40 (June): 309-342. Hair, Joseph F.,Jr., Rolph E. Anderson, Ronald L. Tatham, and William C. Black. 1995. Multivariate data analysis. Fourth edition. Englewood Cliffs, NJ: Prentice Hall. REFERENCE Hendricks, Kevin B. and Vinod IL Singhal. 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards." Management Science 43 (September): 1258-1274. Ho, Samuel KM. 1995. "Is the ISO 9000 series for total quality management?" International Journal of Physical Distribution fL Logistics 25 (1): 51-66. Ishikawa, Kaoru. 1985. What is total quality control? The Japanese Way. Englewood Cliffs, NJ: Prentice-Hall. ISO 9000 registered company directory: North America. 1996. August. Burr Ridge, IL: Irwin Professional Publishing. Jackson, Peter and David Ashton. 1995. Managing a quality system using BS/EN/ ISO 9000 (formerly BS 5750). London: Kogan Page. Jacobson, Robert and David A. Aaker. 1987. "The strategic role of product quality." Journal of Marketing 51 (October): 31-44. Juran, J.M. 1974. The quality control handbook. Third edition. New York, NY: McGraw-Hill. REFERENCE . 1995. A history of managing for quality: The evolution, trends, and future directions of managing
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for quality. Milwaukee, WI: ASQC Quality Press. Lederer, Phillip J and Seung-Kyu Rhee. 1995. "Economics of total quality management." Journal of Operations Management 12 (June): 353-367. Merrill, Peter. 1995. "ISO 9000: On the road to total quality." CMA Magazine 69 (May): 21- 24. Papps, Ivy. 1995. "Evaluation of performance, monitoring costs and quality management." International Journal of Quality and Reliability, 12 (3): 49-56. Peach, R.W. 1997. The ISO 9000 handbookp. Third edition. Chicago, Il.: Irwin Professional Publishing. Powell, Thomas C. 1995. "Total quality management as competitive advantage: A review and empirical study." Strategic Management Journal 16 (January): 1537 REFERENCE Reed, Richard, David Lemak and Joseph C. Montgomery. 1996. "Beyond process: TQM content and firm performance." Academy of Management Review 1 (January): 17S202. Reimann, Curt W. and Harry S. Hertz.1996. "The Baldrige Award and ISO 9000 registration compared." Journal for Quality and Participation 19 January/February): 12-19. Russo, Michael .V. and Paul A Fouts. 1997. "A resource-based perspective on corporate environmental performance and profitability." Academy of Management Journal 40 (June): 534559. Struebing, Laura.1996. "Survey finds ISO registration is market driven." Quality Progress 29 (March): 23. REFERENCE Terziovski, Mile, Danny Samson and Douglas Dow. 1995. "The impact of ISO 9000 certification on customer satisfaction." Asia Pacific Journal of Quality Management 4 (2): 66- 68. Uzumeri, Mustafa V. 1997. "ISO 9000 and other metastandards: Principles for management practice?" The Academy of Management Executive 11 (February): 21-36. REFERENCE Venkatraman, N. and Vasudevan Ramanujam. 1986. "Measurement of business performance in strategy research: A comparison of approaches." Strategic Management Journal 11 (October): 801-814. Wall Street Journal. 1992. "Business Bulletin: Not many U.S. firms." September 17, A: 1. 1996. "Business Bulletin: International Standards." November 14, A: 1. REFERENCE Wenmoth, Bryan A. and David J. Dobbin. 1994. "Experience with implementing ISO 9000." Asia Pacific Journal of Quality Management 3 (3): 9-27. Zuckerman, Amy. 1997. International standards
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desk reference: Your passport to world markets. New York, NY: AMACOM. Author Affiliation Bret L. Simmons Assistant Professor of Business Administration University of Alaska, Fairbanks Author Affiliation Margaret A. White Associate Professor of Management Oklahoma State University
Source: Journal of Managerial Issues, Fall 1999, Vol. 11 Issue 3, p330, 14p Item: 511135814
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The Relationship Between ISO 9000 and Business Performance-Does Registration Really Matter

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The Relationship Between ISO 9000 and Business Performance-Does Registration Really Matter

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