Valuation of the option of abandoning ISO 9001 certification: an empirical study in Spain

Sansalvador, Manuel E.; Brotons, José M.

doi:10.1080/14783363.2014.929231

Cited by 17 publications

(17 citation statements)

References 39 publications

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“…This paper supplements the scant research addressing ISO certification withdrawal and, in a novel contribution to the literature, disputes the idea that firms' decision to decertify is driven by economic reasons (Lo & Chang, 2007;Sansalvador & Brotons, 2015). In particular, this paper's results show that ISO firms that are subsequently decertified exhibit a level of post-certification performance as measured by ROA, ROS and growth of sales that is comparable to that of companies that do not undergo the same decertification event.…”

Section: Implications For Theorymentioning

confidence: 53%

“…The author concludes that termination of ISO 9001 certification may be viewed as an early external signal of possible future problems in the organization. Sansalvador & Brotons (2015) take a different approach and try to uncover the value of the put option that abandoning ISO certification represents. In particular, after reviewing the literature, Sansalvador & Brotons (2015) conclude that not all companies benefit from certification because 'there are different levels of internalization of the standards, which affects how companies implement them, and ultimately, firms' results'.…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

“…The empirical evidence on the specific reasons justifying the increasing number of withdrawals is, however, scant. In particular, only four academic articles, searchable in research databases, look into somewhat related issues (Lo & Chang, 2007;Alič, 2014;Sansalvador & Brotons, 2015;Cândido, Coelho & Peixinho, 2016). These studies point to the fact that decertification occurs when firms do not experience a certain economic benefit upon their ISO 9001 certification.…”

Section: Introductionmentioning

confidence: 99%

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Why firms lose their ISO 9001 certification: Evidence from Portugal

Cândido

Coelho

Peixinho

2019

Total Quality Management & Business Excellence

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More than one million certified companies must choose, every three years, whether to renew or to withdraw from ISO 9001 certification. This paper investigates whether ISO 9001 decertification decision is driven by economic motivations. Using standard event-study methods, the paper looks into this question by comparing the abnormal performance of a sample of Portuguese firms that lose their certification with that of similar, non-event, firms. The paper finds no statistically significant differences in the economic performance of these two sets of firms in their post-ISO certification period. Such evidence suggests that economic underperformance is not the reason why companies are ISO-decertifying and further suggests that the decision to decertify is economically irrelevant. The study advances possible explanations for this (ir)relevancy and puts forwards implications for theory and for the ISO 9001 governance system. The governance system must change in order to increase the economic benefits that organizations can expect to gain from ISO (re)certification. This is the first study assessing the impact of ISO 9001 certification on firms that subsequently lost the certificate.

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Section: Implications For Theorymentioning

confidence: 53%

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Why firms lose their ISO 9001 certification: Evidence from Portugal

Cândido

Coelho

Peixinho

2019

Total Quality Management & Business Excellence

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“…There is asymmetry in the diagnosis of the information necessary to obtain good practices. However, rigid and linear processes exclude small companies that do not have the scale gain of large companies from the standardization and execution of complex activities [6,35]. Therefore, the learning process should be simple and cohesive, so that all involved have similar knowledge to classify actions according to the appropriate evidence in advance.…”

Section: Evaluation Of Sustainable Freight Transportmentioning

confidence: 99%

Methodological Proposal for Recognition Systems in Sustainable Freight Transport

2021

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Establishing a recognition system for sustainable freight transport is a process of change that requires the commitment of those involved and application of good practices. The pressures from consumers and competitors do not allow greater engagement with economic, social, and environmental aspects, and the maintenance stages require a long-term effort to obtain credibility, because the participation of external members of society in the evaluation contributes to reduce the influences and uncertainties of the recognition criterion. In light of the difficulties of establishing a green supply chain, we propose a method with multiple approaches with an emphasis on fuzzy logic. The purpose is to reduce the indecision of judgment, to debug the qualitative variables and to reduce interference from competitors. The procedure was applied to six companies that have carbon reduction programs, but we found that firms with a core business in transport had greater success in the transition to low carbon operations than contractors or shippers. The certification levels allowed visual contact between consumers and the company, making it possible to monitor sustainability actions in freight transportation operations and the competitiveness to achieve higher labeling levels.

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“…While the literature seems to generally support the value of ISO 9001 certification to all organizations, including smaller firms, there appears to be little that examines the instance of organizational abandonment of the certification. In fact, a review of the literature shows a lack of treatment on the subject of impacts to the firm from ISO 9001 abandonment (Sansalvador and Brotons, 2015). It would seem to be a concern to managers in organizations considering certification, and at smaller firms in particular, to appreciate the trajectory of ISO 9001 certification, subsequent abandonment, and the potential ramifications of abandonment.…”

Section: Literaturementioning

confidence: 99%

A longitudinal exploratory study of ISO 9001 certification abandonment in small- and medium-sized enterprises

Zimon

Dellana

2019

IJQRM

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Purpose The purpose of this paper is to explore the expectations for ISO 9001 certification in a group of small- and medium-sized enterprises, then to assess the reasons for their subsequent abandonment of the certification and the long-term impacts of that decision. Design/methodology/approach Data for this study come from longitudinal case studies involving a series of questionnaires, in-depth on-site interviews and informal conversations with top managers of 22 firms in the heating technology service industry in Poland. The research process was conducted in three stages. The first stage occurred in the Summer of 2008 in which a broad analysis was conducted of the impact of ISO 9001 certification on the functioning of the organizations. The second stage was conducted in 2012, to gather the information about the organizations that subsequently abandoned their ISO 9001 certification. The third stage was carried out in 2016 to examine the longer-term impact of ISO 9001 certification abandonment in these organizations. Findings The main motivation for study participants obtaining ISO 9001 certification centred around market visibility and gaining new customers rather than on lowering operating costs or improving quality. Managers also expected certification to improve organization documentation. The decision to abandon certification had to do with lack of time for improvement efforts and questionable cost-benefit that could lead to higher prices. Certification was considered unnecessary to achieve the goals of the organization. In retrospect, only a small percentage (20 per cent) of small- and medium-sized enterprises in the sample group felt that abandoning ISO 9001 certification was largely the correct decision. A majority (53 per cent) thought it was largely a regrettable decision. Research limitations/implications The research is based on a limited number of case studies for smaller organizations in one purchasing group in industry rather than on a large cross-section of different organizations sizes and types. Therefore, the ability to draw statistical inferences is limited and the results may not generalize to other settings. However, this appears to be one of the few studies of its kind on voluntary abandonment of the certification. Practical implications It is important for business managers to understand not only the reasons supporting initial certification, but the rationale that organizations cite for abandonment of the certification and the long-term impacts of that decision. Originality/value A study of voluntary ISO 9001 certification abandonment appears to be relatively absent in the literature. This research opens a new area of research into the assessment of potential consequences of abandoning the certification.

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Valuation of the option of abandoning ISO 9001 certification: an empirical study in Spain

Cited by 17 publications

References 39 publications

Why firms lose their ISO 9001 certification: Evidence from Portugal

Why firms lose their ISO 9001 certification: Evidence from Portugal

Methodological Proposal for Recognition Systems in Sustainable Freight Transport

A longitudinal exploratory study of ISO 9001 certification abandonment in small- and medium-sized enterprises

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