WHY FIRMS SEEK ISO 9000 CERTIFICATION: REGULATORY COMPLIANCE OR COMPETITIVE ADVANTAGE?

Shannon W. Anderson · Marilyn F. Johnson

426 citations0/0 files storedProduction and Operations Management

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Quality and Management Systems Quality and Supply Management Management Systems and Quality Improvement

Abstract

Proponents of iso 9000 certification claim that it is a low‐cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality‐based competition explain the adoption decision.

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References

1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 1960The Problem of Social Cost 1973Job Market Signaling 1989Theory of Industrial Organization.1973Free Competition and the Optimal Amount of Fraud 1981The Role of Market Forces in Assuring Contractual Performance 1982Reputation and imperfect information 1985Standardization, Compatibility, and Innovation

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2001INTERNATIONAL DIFFUSION OF ISO 14000 CERTIFICATION 2005Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000 2008Linking supply chain strength to sustainable development: a country-level analysis 2003ISO 9000: Outside the Iron Cage 2007ISO 9000 practices and financial performance: A technology coherence perspective 2012Using private management standard certification to reduce information asymmetries in corrupt environments

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