An Examination of the Economic Benefits of ISO 9000 and the Baldrige Award to Manufacturing Firms

Abstract: This article reviews the financial data of manufacturing companies who are ISO 9000 certified and the winners in the manufacturing category of the Malcolm Baldrige National Quality Award to examine whether the benefit of receiving ISO 9000 certification or winning the Baldrige award is economically attractive. A comparison of costs versus benefits associated with obtaining ISO 9000 registration is performed for ISO 9000, while stock performance is examined for the Baldrige winners. Results show that the economic success reported by companies who received ISO 9000 certification and Baldrige awards may be exaggerated and that this success certainly cannot be guaranteed. Recommendations for further study are presented.