Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000 |
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| Institution: | 1. Technion–Israel Institute of Technology, Faculty of Industrial Engineering and Management, Haifa 32000, Israel;2. University of Minnesota, Carlson School of Management, Minneapolis, MN 55455, USA;1. IE Business School - IE University, Maria de Molina 12-5, 28006 Madrid, Spain;2. W.P. Carey School of Business, Arizona State University, Tempe, AZ 85287-4706, United States;1. College of Business, Florida State University, Tallahassee, FL, 32306, USA;2. Department of Supply Chain Management, Rutgers Business School of Newark and New Brunswick, Newark, NJ, 07102, USA;3. C.T. Bauer College of Business, University of Houston, Houston, TX, 77204, USA;4. College of Commerce, National Chengchi University, Taipei, 11605, Taiwan;1. College of Business Oregon State University, 443 Austin Hall, Corvallis, OR 97331, USA;2. Wesley J. Howe School of Technology Management, Stevens Institute of Technology, Hoboken, NJ 07030, USA;1. Department of Supply Chain Management, Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR 72701, USA;2. Department of Supply Chain Management, W.P. Carey School of Business, Arizona State University, Tempe, AZ 85287, USA;3. Korea University Business School, anam-5Ga, Seongbuk, Seoul 136-701, Republic of Korea;4. Department of Marketing, W.P. Carey School of Business, Arizona State University, Tempe, AZ 85287, USA;1. Alliance Manchester Business School, The University of Manchester, Booth Street West, Manchester M15 6PB, UK;2. Ivey Business School, Western University, 1255 Western Rd., London, Ontario, N6G 0N1, Canada |
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| 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. |
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