Impact of ISO 9001 certification on firms financial operating performance

Purpose – The purpose of this paper is to investigate the impact of ISO 9001 certification on US firms’ financial operating performance for a period of five years including one-year prior to certification, year of certification, and three fiscal years after certification. Design/methodology/approach – The paper is based on an examination of a sample of 397 firms that had received ISO 9001 certification from 1991 to 2002. Certified-firm, non-certified-firm, and matched-control-firm operating performances were examined over the same period based on the ratio of pre-tax operating income to total assets (EBITA/TA). Wilcoxon signed-rank test was used to test for significant differences in operating performance among the certified, non-certified, and matched-control firms. Findings – The paper concludes that there was significant improvement performance from prior year to year of certification. The certified firms performed better than the non-certified firms. The certified firms also performed better than the ...

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