WHY FIRMS SEEK ISO 9000 CERTIFICATION: REGULATORY COMPLIANCE OR COMPETITIVE ADVANTAGE?

WHY FIRMS SEEK ISO 9000 CERTIFICATION: REGULATORY COMPLIANCE OR COMPETITIVE ADVANTAGE? Proponents of iso 9000 certification claim that it is a low‐cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality‐based competition explain the adoption decision. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Production and Operations Management Wiley

WHY FIRMS SEEK ISO 9000 CERTIFICATION: REGULATORY COMPLIANCE OR COMPETITIVE ADVANTAGE?

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Publisher
Wiley
Copyright
© 1999 Production and Operations Management Society
ISSN
1059-1478
eISSN
1937-5956
DOI
10.1111/j.1937-5956.1999.tb00059.x
Publisher site
See Article on Publisher Site

Abstract

Proponents of iso 9000 certification claim that it is a low‐cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality‐based competition explain the adoption decision.

Journal

Production and Operations ManagementWiley

Published: Mar 1, 1999

References

  • Total Quality Management: A Literature Review and an Agenda for Future Research
    Ahire, Ahire; Landeros, Landeros; Golhar, Golhar
  • An Instrument for Measuring the Critical Factors of Quality Management
    Saraph, Saraph; Benson, Benson; Schroeder, Schroeder

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