Effects of ISO 9001 on Non-Financial and Financial Performance in the Organizations: A Review

Neyestani, Behnam

doi:10.2139/ssrn.2964208

Cited by 2 publications

(1 citation statement)

References 23 publications

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“…Unfortunately, regardless of all these researches clarifying the reason why full benefit of ISO certification is not attained, effect of QMS on performance remains controversial with a number of empirical studies alluding to nullity of ISO certification on performance (Nyakio Kibe & Wanjau, 2014). Empirical studies showed that the effect of ISO 9001 standard or organization's performance is inconsistent and unclear (Neyestani, 2017). Although improving production process has consistently attained positive result, customers' results and financial performance were inconclusive and unclear because organizations with different quality management context have significantly different performance outcomes.…”

Section: Introductionmentioning

confidence: 99%

Effect of ISO 9001 effectiveness on the performance of certified manufacturing firms in Laguna and Batangas

Manalansan¹

2022

IJRSM

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As company owners and top executives are still confused about what ISO 9001 may offer, this research study aimed to investigate if ISO 9001 effectiveness measured via the QMS rationale such as customer satisfaction focus, prevention of non-conformance and continuous improvement has significant effect on firms' performance through the determinants product quality, operational performance and business performance. The study utilized descriptive research design and convenience sampling technique covering 96 respondents from certified manufacturing firms in Laguna and Batangas. Responses were tallied and analyzed through linear regression analysis using SPSS version 20. Findings showed significant effect of ISO 9001 effectiveness on product quality, operational performance and business performance.The most essential findings noted in this research is the significant effect of ISO 9001 effectiveness and product quality on business performance contradicting previous empirical studies. An integral addition to the body of knowledge that addressed the controversial economic effect of ISO 9001. Generally, this paper depicted the significant effect of ISO 9001 on firms' performance when used effectively and optimally. As a matter of logic, an organization who struggles to demonstrate minimum compliance to QMS may not attain business excellence because ISO 9001 certification is not a guaranteed means for organizational survival. It is the firms' implementation effectiveness through objectives achievement that makes quality their best business plan.

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