The Reasons for Decertification of ISO 9001: Financial Aspects

Abstract

<p><strong>Purpose:</strong> The purpose of this paper is to analyse the financial performance of organizations that give up their QMS (Quality Management System) according to ISO 9001 certification. Different reasons found for the cancellation of ISO 9001 certification were taken into consideration. The decrease in certification of ISO 9001 standard is, during the past few years, noticeable in many countries. Therefore, there is a need to analyze the phenomena.</p><p><strong>Methodology/Approach:</strong> The study analyses financial performance of organizations and reasons of ISO 9001 certificates cancellation based on 99 Polish organizations, which gave up certification in years 2012 and 2013. The reasons of certificate cancelation were obtained from the quality managers of studied organizations. Financial performance was estimated on the basis of the ROA indicator value.</p><p><strong>Findings:</strong> The results show that in the studied organizations, there is a big group of companies that had financial problems. There were 28.8% of organizations that did not have profits at all, and 32.9% with a financial performance, calculated according to ROA indicator value, lower than the average for the industry in which studied organizations were operating. Surprisingly, there is no evident correlation between the reasons of ISO 9001 decertification and financial performance of these organizations.</p><p><strong>Research Limitation/implication:</strong> The data cover Polish organizations that give up ISO 9001 certification, and they were obtained only from one certification body. Survey data concerning the decision of decertification cover only a two-year period of time.</p><strong>Originality/Value of paper:</strong> The findings of our study might be helpful for the managers of organizations and certification bodies as well as for the researchers to describe the effectiveness of activities related to QMS implementation, certification and cancellation.

Stock price reaction on ISO 9001 certification announcement: evidence from Indonesia

“…Meanwhile Aba et al (2016) concluded that certified companies are better than non-certified companies. Kafel and Simon (2017) found different research results from previous studies that the ISO 9001 certified company has nothing to do with financial performance. Furthermore, Hendricks and Singhal (1996) and Hendricks and Singhal (2001) who examined ISO on long-term stock reactions.…”

Decertification in quality-management standards by incrementally and radically innovative organizations

“…These decertification decisions by individual organizations aggregate to detectable macro-level trends. For instance, worldwide certifications of ISO 9001 decreased for the first time in 2011 (Kafel and Simon, 2017). Mastrogiacomo et al (2021) further highlight that the European diffusion of ISO 9001 reached its highpoint in 2010 at 530,039 certifications and has steadily decreased in subsequent years to only 387,836 certifications in 2017; in fact, 2017 exhibited a downward trend in certifications for all the world's regions except 'East Asia and the Pacific'.…”

¿Son los establecimientos hoteleros y de restauración fieles a las certificaciones de los sistemas de gestión de calidad?

“…Los motivos de que la ISO 9001 haya dejado atrás la fase de crecimiento puede estar en el abandono de las certificaciones, pero también en las barreras de entrada o en la reducción del atractivo para las restantes empresas no certificadas (Zimon y Dellana, 2019;Simon y Kafel, 2018;Cândido et al, 2019;Kafel y Simon, 2017;Sansalvador y Brotins, 2015). Profundizando en ese ámbito, otros trabajos analizan el impacto que tienen sobre las empresas la cancelación de esta certificación (Alič, 2014;Cândido et al 2016).…”