Do ISO Certifications Enhance Internationalization? The Case of Portuguese Industrial SMEs

Abstract

In the last decades, the academic literature has devoted considerable attention to the determinants of export performance. In result of those research efforts in identifying and examining the influence of such determinants, the literature presents a wide set of variables associated with higher levels of exports. This paper provides a contribution to that literature by trying to evidence the impact of firm certification—namely, in terms of the firm’s quality, environmental, and health and safety management systems—on export performance. The paper analyses an unbalanced sample of 1684 Portuguese industrial SMEs for the period 2010 to 2020, uses other determinants of internationalization as control variables, and explores the possibility of moderating effects on the certification–internationalization relationship. Two alternative econometric methods are employed: a random-effects model and a Tobit model. The results evidence the importance for firms, especially in the low or medium–low technology sectors, to have certain ISO certifications in order to further develop their export activities and increase their foreign acceptance, particularly in the European Union markets. Further, certification seems to reinforce the positive relation between firm size and internationalization.

The effectiveness of the implementation of ISO 9001 on SMEs performance: the case of an emerging economy

“…However, the present study focuses on continuous improvement, customer satisfaction and prevention of nonconformities. The selection of the three principles is based on the primary objective of ISO 9001, which is the establishment of a process that improves the effectiveness of a quality management system, meets customer requirements and improves customer satisfaction (Pacheco et al ., 2022). The efficiency of 9001 ISO development is determined by the level through which plans are met.…”

“…To et al (2018) argue that management entails relationships that lead to mutual advantages, engagement, a reasonable strategy of making decisions or evidence-based decisionmaking, and a process approach. The strategy relates to improvement, whereas the factual approach influences improvement through quality assurance tools (Pacheco et al, 2022).…”

“…The integration of an ISO 9001 QMS is not a straightforward task, but rather one that requires intensive capital and resources. Despite the considerable amount of commitment required in ISO 9001 implementation and the fact that the implementation is voluntary, multiple global organizations are always seeking ISO certification, which is an interesting observation (Pacheco et al ., 2022). ISO 9001 has been described as one of the most significant quality assurance programs in the last decades, most likely because it is the initial step in developing a quality-oriented organizational culture (Khan and Farooquie, 2016).…”

Firm certification and export performance: the case of the “SME Leader” label

“…Firm competition, peer and institutional pressures and the search for new markets and customers have increasingly compelled firms to devote attention to standards and third-party certifications (Aba et al. , 2015; Pacheco et al. , 2022).…”

“…With few exceptions (e.g. Anggarkasih and Resma, 2022; Pacheco et al. , 2022), the impacts and potential benefits of certifications to export performance have largely not been investigated.…”