Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000

Achieving competitive advantage through implementing a replicable management standard: Installing... This paper investigates the effects of implementing the international standard ISO 9000 on measures of business and operating performance. Based on the literature and a case study we identified two stages in implementing ISO 9000—(1) Installation , which has two dimensions: (a) external coordination and (b) integration; and (2) Usage , which also has two dimensions: (a) in daily practice and (b) as a catalyst for change. The hypotheses were that installation of ISO 9000 is positively related to use of ISO 9000, and use of ISO 9000 is positively related to operating performance. In addition, use of ISO 9000 is positively related to business performance since operating performance is positively related to business performance. We used hierarchical linear models (HLM) to test our hypotheses and validated the results by comparing the longitudinal performance of ISO 9000 certified companies with four matched samples of companies that were not ISO 9000 certified. Our analysis indicated that while the installation stage was necessary to successfully implement ISO 9000, organizations achieved a distinct operating advantage from this replicable standard when they used it in daily practice and as a catalyst for change. These findings were based on responses to a survey of 1150 quality managers in 924 organizations, which was supplemented for about one-third of the organizations with longitudinal information from the Compustat database on the organizations’ business and operating performance. The validation indicated that implementing the ISO 9000 standard led to improved operating performance, but that this outcome did not necessarily or automatically yield better business performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Operations Management Elsevier

Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000

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Publisher
Elsevier
Copyright
Copyright © 2005 Elsevier B.V.
ISSN
0272-6963
DOI
10.1016/j.jom.2005.01.004
Publisher site
See Article on Publisher Site

Abstract

This paper investigates the effects of implementing the international standard ISO 9000 on measures of business and operating performance. Based on the literature and a case study we identified two stages in implementing ISO 9000—(1) Installation , which has two dimensions: (a) external coordination and (b) integration; and (2) Usage , which also has two dimensions: (a) in daily practice and (b) as a catalyst for change. The hypotheses were that installation of ISO 9000 is positively related to use of ISO 9000, and use of ISO 9000 is positively related to operating performance. In addition, use of ISO 9000 is positively related to business performance since operating performance is positively related to business performance. We used hierarchical linear models (HLM) to test our hypotheses and validated the results by comparing the longitudinal performance of ISO 9000 certified companies with four matched samples of companies that were not ISO 9000 certified. Our analysis indicated that while the installation stage was necessary to successfully implement ISO 9000, organizations achieved a distinct operating advantage from this replicable standard when they used it in daily practice and as a catalyst for change. These findings were based on responses to a survey of 1150 quality managers in 924 organizations, which was supplemented for about one-third of the organizations with longitudinal information from the Compustat database on the organizations’ business and operating performance. The validation indicated that implementing the ISO 9000 standard led to improved operating performance, but that this outcome did not necessarily or automatically yield better business performance.

Journal

Journal of Operations ManagementElsevier

Published: Dec 1, 2005

References

  • Why firms seek ISO 9000 certification: regulatory compliance competitive advantage?
    Anderson, S.W.; Daly, J.D.; Johnson, M.F.
  • Detecting abnormal operating performance: the empirical power and specification of test statistics
    Barber, B.M.; Lyon, J.D.
  • Detecting long-run abnormal stock returns: the empirical power and specification of test statistics
    Barber, B.M.; Lyon, J.D.
  • From ISO 9000 to total quality management a rough road
    Frehr, H.U.
  • Strategy implementation versus middle management self-interest
    Guth, W.D.; Macmillan, I.C.
  • Exploratory and confirmatory factor analysis: guidelines, issues and alternatives
    Hurley, A.E.; Scandura, T.A.; Schriesheim, C.A.; Brannick, M.T.; Seers, A.; Vandenberg, R.J.; Williams, L.J.
  • Tactics of implementation
    Nutt, P.C.
  • Selecting tactics to implement strategic plans
    Nutt, P.C.
  • Total quality management as competitive advantage: a review and empirical study
    Powell, T.C.
  • An evaluation of the effects of quality improvement activities on business performance
    Robin, M.; Dennis, K.

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