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The business value of quality management systems certification. Evidence from Australia and New Zealand
Author(s) -
Terziovski Milé,
Samson Danny,
Dow Douglas
Publication year - 1997
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/s0272-6963(96)00103-9
Subject(s) - certification , business , quality assurance , total quality management , quality management system , quality management , explanatory power , sample (material) , quality (philosophy) , accounting , marketing , operations management , business administration , management , engineering , economics , philosophy , chemistry , epistemology , chromatography , service (business)
ISO 9000 certification is one of the most popular quality assurance systems in the world. Despite its overwhelming popularity, there is considerable confusion and frustration surrounding the role and business value of ISO 9000 certification. A review of the literature revealed a major gap in research in this area of quality/operations management. The purpose of this study is to test the strength of the relationship between ISO 9000 certification and organisational performance in the presence and absence of a total quality management (TQM) environment. Our analysis is primarily of a large random sample of manufacturing companies in Australia and New Zealand. The central finding is that ISO 9000 certification is not shown to have a significantly positive effect on organisational performance in the presence or absence of a TQM environment. This supports the view that on average ISO 9000 certification has little or no explanatory power of organisational performance.