Relationship of ISO 9001:2000 quality system certification with operational and business performance A survey in Australia and New Zealand-based manufacturing and service companies

Purpose – This research paper aims to explore the relationship between ISO 9000 certification and organisational performance by developing an ISO 9000 relationship model. Design/methodology/approach – A survey instrument was used for quantitative data collection based on a global survey in collaboration with the Anderson School of Business, UCLA. All items were measured on a five point modified Likert scale. The data were analysed statistically by means of Statistical Package for Social Scientists. Factor analysis was performed. Multiple regressions was used to test the hypotheses. Both validity and reliability of the measures were checked in order to reduce measurement error. Findings – The results show a positive and significant relationship between certification practices (implementation, organisational commitment and planning) with operational performance. However, the relationship between these practices with business performance was found to be positive but not significant of the variables we studied, organisational commitment to certification was found to be most strongly related to operational and business performance. Practical implications – The success of implementing ISO 9000 certification would be increased (operational and business performance) if it is well planned and implemented when the philosophical quality aspects of the organisation are coupled with employee training, periodic audits, corrective action and commitment at all levels of the organisation. Originality/value – This paper’s unique contribution to the literature is the rigorous research and analysis which statistically identify the best predictors for successful ISO 9000 implementation. The results demystify the confusion and contradictions which exist in the literature on the efficacy of ISO 9000 certification.