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

Abstract

PurposeThe study seeks to examine the effectiveness of implementing the ISO 9001 quality management system (QMS) on small and medium enterprises (SMEs) performance in Saudi Arabia. It explores ISO 9001 usefulness through the dimensions of continuous improvement, customer satisfaction focus and prevention of nonconformities. The study investigates two dimensions of firm performance's: operational performance and product/service quality.Design/methodology/approachThe study employs a quantitative method. A simple random sampling technique is used to collect study samples. A self-administered questionnaire is employed as the data collection tool. The study was based on 263 samples from SMEs in Saudi Arabia. Statistical analysis was carried out using SPSS/AMOS.FindingsPrevention of nonconformities, customer satisfaction focus and continues improvement had a positive significant correlation with operational performance and product/service quality. Moreover, the ISO 9001 QMS effectiveness construct showed a helpful and important correlation with the performance of the company.Originality/valueThe study offers empirical evidence to clarify ambiguous findings from past studies, as well as expounds knowledge on the effect of ISO 9001 on SMEs' performance through the lenses of operational performance and quality/service quality.