Citation
Siaw, Ching Foon
(1998)
The Impact of ISO 9000 Certification to the Organization Performance.
[Project Paper Report]
Abstract
ISO 9000 Standards have become an important tool for an organization to
enhance its market share in both local and overseas market.
However, little empirical studies have been conducted to determine the impact of
ISO 9000 certification on the financial performance of the company.
In this study, a survey questionnaire has been designed to collect some
information from the quality assurance personnel through telephone interviews.
On the hand, company financial data was gathered to analyze the relationships
of the ISO 9000 certification and the company financial performance.
Descriptive statistics namely frequencies, percentage and mean were used in
describing the some of the finding. In addition, simple regression analysis was
carried out to analyze the significance of ISO 9000 certification on the financial
performance of the company.
Findings showed that the companies registered with ISO 9000 were mainly
driven by external forces, such as market trend and statutory requirements. The
study also found that the most quality assurance personnel perceived that they
gained all the benefits (competitive edge) after pursuing ISO 9000 certification.
However, the profitability ratio analysis did not support such conclusion. It
revealed that the business performance of a company have indicated a declining
trend instead of improvement after achieving ISO 9000 certification status.
This study also highlighted the necessity of Total Quality Management in a
company and the integration of both in order to achieve the ultimate goal of the
company.
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