Impact of ISO 9001 Certification on the Projects' Success of Large-scale (AAA) Construction Firms in the Philippines

Abstract

The general purpose of this study is to investigate the effects of ISO 9001 certification on project success, and its main criteria into large-scale construction companies in Metro Manila, Philippines. For this aim, the research was conducted an in-depth literature review for identifying the main variables first. Subsequently, a survey questionnaire was designed, and distributed randomly among 67 managers working in ISO 9001:2008- certified projects of large-scale construction firms. Then the descriptive and inferential statistics analysis employed, in order to find the results and conclusions. Finally, the findings revealed that ISO 9001 certification can significatly affect the construction project success and its main criteria, except time lenght of projects in Metro Manila, Philippines.

ISO 9001 Standard and Organization's Performance: A Literature Review

“…From Table 1, it can be observed that these empirical studies were carried out between 2002 and 2017. The reason that this research was selected and focused only on empirical studies after 2000 because ISO was upgraded ISO 9001 in 2000, from a quality assurance tool to an effective quality management technique with a tested structure based on PDCA cycle, which gives possibility to this standard in improving the performance of the organizations continuously [21], [8]. Furthermore, most of the studies were accomplished within manufacturing sector in different countries.…”

“…This result is also consistent with view of Han et al [4], who noted that it is not surprising to find from the studies that ISO 9001 standard efforts do not affect customer issues directly, because an organization which has ISO 9001, is often expected to promote customer's satisfaction and consistently provide product or service that meets customer and regulatory requirements [14], but in fact, it does not guarantee that ISO 9001 always improves quality performance of the organizations for satisfying customers [24]. Similarly, Neyestani & Juanzon [21] stated that the reasons of the majority of the construction companies for being an ISO 9001-certified firm are to become eligible in tendering of government and international projects, and also achieving its competitive advantages as a marketing tool. Thus, they often neglect to use ISO 9001 properly with the aim of obtaining performance excellence and its multiple advantages.…”

“…However, the review of these 19 research papers indicated that the results of the empirical studies in this area were conflicted and mixed results, as presented in Table 1. Some studies reported that ISO 9001 has a significant impact on customer's issues [21], [24], [26], [1], while others found there is no significant relationship between this quality management standard and customer perspective in the organizations [17], [11], [4], [31]. This result is also consistent with view of Han et al [4], who noted that it is not surprising to find from the studies that ISO 9001 standard efforts do not affect customer issues directly, because an organization which has ISO 9001, is often expected to promote customer's satisfaction and consistently provide product or service that meets customer and regulatory requirements [14], but in fact, it does not guarantee that ISO 9001 always improves quality performance of the organizations for satisfying customers [24].…”

“…Similarly, the review of 19 selected studies highlighted that the majority of the empirical studies found the direct and significant impact of ISO 9001 on measures of internal process perspective [14], [6], [21], [24], [18], [12], [29], [11], [27], [1]. While Martínez-Lorente and Martínez-Costa [16], MartinezCosta et al [17]; Han et al [4], Martínez-Costa and Martínez-Lorente [15] claimed that there was no relationship between this standard and internal process of the organizations.…”

“…This standard is a "generic standard" for all organizations, regardless of their size and field of activity. Its intention is to satisfy customers' requirements [21], [13]. Today ISO 9001 is widely adopted by different sectors in 188 countries, according to the latest ISO "survey of certifications" [7], the number of total ISO 9001-certified organizations was about 1,138,155 certificates by 2014.…”