The economic impact of quality management systems in Portuguese certified companies: Empirical evidence

Purpose – Despite all the studies carried out in order to analyze the impact of quality management systems implementation and certification over companies' financial performance, conclusions reached so far have been of a contradictory nature. Some authors conclude that there is a positive relationship between ISO 9001 certification and companies' financial improvement, while others do not find evidence to support such a relationship. Overall, no consistent evidence could therefore be found in the literature concerning the ISO 9001 impact over companies' business financial performance. This work aims to provide a contribution in this area.Design/methodology/approach – Using a public database of Portuguese companies' financial information, this paper describes the results obtained from studying the economic impact of quality management systems, based on a statistical analysis.Findings – The results suggest that companies with higher financial performance do present a greater propensity to implement and cert...

[1]  Martí Casadesús,et al.  ISO 9000 Registration's Impact on Sales and Profitability: A Longitudinal Analysis of Performance Before and After Accreditation , 2002 .

[2]  Peter J. Brust,et al.  Quality and economics: Five key issues , 2002 .

[3]  S. Siegel,et al.  Nonparametric Statistics for the Behavioral Sciences , 2022, The SAGE Encyclopedia of Research Design.

[4]  M. Casadesus,et al.  ISO 9000 certification and the bottom line: a comparative study of the profitability of Basque region companies , 2002 .

[5]  Charles J. Corbett,et al.  Does ISO 9000 certification pay , 2002 .

[6]  Douglas C. Montgomery,et al.  Applied Statistics and Probability for Engineers, Third edition , 1994 .

[7]  H. V. D. Water,et al.  ISO 9000 series ‐ Certification and performance , 2001 .

[8]  Stephen George.  Bull or bear , 2002 .

[9]  Pedro Lopes Ferreira,et al.  Estatística multivariada aplicada , 2000 .

[10]  Juan Llopis,et al.  Development of a measure to assess quality management in certified firms , 2004, Eur. J. Oper. Res..

[11]  Joel D. Wisner,et al.  A Performance Assessment of the US Baldrige Quality Award Winners , 1994 .

[12]  Tan Boon Wan,et al.  Does ISO 9000 certification improve business performance , 2003 .

[13]  M. Terziovski,et al.  The Business Value of Quality Management Systems Certification , 1997 .

[14]  Bengt Klefsjö,et al.  Experiences from implementing ISO 9000 in small enterprises – a study of Swedish organisations , 2001 .

[15]  Ross L Chapman,et al.  Strategic quality management and financial performance indicators , 1997 .

[16]  Juan José Tarí,et al.  Quality tools and techniques: Are they necessary for quality management? , 2004 .

[17]  Kamal Naser,et al.  Impact of ISO 9000 registration on company performance: Evidence from Malaysia , 2004 .

[18]  Mark Pagell,et al.  A critical examination of the ability of ISO 9000 certification to lead to a competitive advantage , 1999 .

[19]  P. Sampaio,et al.  ISO 9001 certification research: questions, answers and approaches , 2009 .

[20]  Juan Luis Nicolau,et al.  The stock market's reaction to quality certification: Empirical evidence from Spain , 2002, Eur. J. Oper. Res..

[21]  M. S. Putterill,et al.  Empirical Analysis of Quality Improvement in Manufacturing , 1994 .

[22]  Charles J. Corbett,et al.  The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis , 2005, Manag. Sci..

[23]  A. Martinez-Lorente,et al.  Effects of ISO 9000 certification on firms' performance: A vision from the market , 2003 .

[24]  Pietro Romano.  ISO 9000: What is its Impact on Performance? , 2000 .

[25]  Katerina Gotzamani,et al.  The true motives behind ISO 9000 certification: Their effect on the overall certification benefits and long term contribution towards TQM , 2002 .

[26]  C. Voss,et al.  Quality management re-visited: a reflective review and agenda for future research , 2002 .

[27]  M. Ebrahimpour,et al.  Impacts of ISO 9000 registration on European firms: a case analysis , 2001 .

[28]  Iñaki Heras,et al.  Benefits of ISO 9000 implementation in Spanish industry , 2001 .

[29]  Germán Arana Landín,et al.  The impact of quality management in European companies' performance , 2006 .

[30]  Holger Luczak,et al.  Explorative study of the expected consequences for existing quality management systems due to the revision of ISO 9001 in certified companies in Germany , 2002 .

[31]  Lawrence M. Corbett,et al.  An international study of quality improvement approach and firm performance , 1997 .

[32]  G. Dwyer,et al.  Business excellence versus ISO 9000 in an Irish context – which delivers? , 2002 .

[33]  Ronald L. Jacobs,et al.  Impact of ISO 9000 certification on training and development activities: An exploratory study , 2004 .

[34]  Ed Vos,et al.  The impact of ISO registration on New Zealand firms’ performance: a financial perspective , 2001 .

[35]  Amrik S. Sohal,et al.  The longitudinal effects of the ISO 9000 certification process on business performance , 2003, Eur. J. Oper. Res..

[36]  Dennis Kehoe,et al.  An Evaluation of the Effects of Quality Improvement Activities on Business Performance , 1994 .

[37]  Gabriela Beirão,et al.  The reaction of the Portuguese stock market to ISO 9000 certification , 2002 .

[38]  Keah Choon Tan,et al.  Tools and Techniques of Quality Management: An Empirical Investigation of their Impact on Performance , 1999 .

[39]  Atul Gupta,et al.  Quality management practices of ISO vs non-ISO companies: a case of Indian industry , 2000, Ind. Manag. Data Syst..

[40]  Hesan A. Quazi,et al.  Impact of ISO 9000 certification on quality management practices: A comparative study , 2002 .

[41]  Paulo Sampaio,et al.  A classification model for prediction of certification motivations from the contents of ISO 9001 audit reports , 2010 .

[42]  Mile Terziovski,et al.  The link between total quality management practice and organisational performance , 1999 .

[43]  Victor B. Wayhan,et al.  ISO 9000 certification: The financial performance implications , 2002 .

[44]  Dimitris Skuras,et al.  Strategic orientation and financial performance of firms implementing ISO 9000 , 2004 .

[45]  John P.T. Mo,et al.  Strategy for the successful implementation of ISO 9000 in small and medium manufacturers , 1997 .

[46]  Gavin P.M. Dick,et al.  Does ISO 9000 accreditation make a profound difference to the way service quality is perceived and measured , 2002 .

[47]  Tord Häversjö,et al.  The financial effects of ISO 9000 registration for Danish companies , 2000 .

[48]  Louise Boulter,et al.  How can ISO 9000:2000 help companies achieve excellence? , 2002 .

[49]  Maling Ebrahimpour,et al.  Does ISO 9000 certification affect the dimensions of quality used for competitive advantage , 2000 .

[50]  Dimitris Skuras,et al.  Adoption of a quality assurance scheme and its effect on firm performance: A study of Greek firms implementing ISO 9000 , 2002 .

[51]  Juan José Tarí,et al.  Quality management results in ISO 9000 certified Spanish firms , 2002 .

[52]  Subhash Sharma.  Applied multivariate techniques , 1995 .

[53]  Marcelo Resende,et al.  Quality certification and performance of Brazilian firms: An empirical study , 2000 .

[54]  T. S. Lee,et al.  Quality/productivity practices and company performance in China , 2001 .

[55]  Stefan Lagrosen,et al.  The effects of quality management – a survey of Swedish quality professionals , 2005 .