Measuring the Impact of ISO 9001 on Employee and Customer Related Company Performance
Abstract
Purpose: According to ISO 9000:2015 “the primary focus of quality management is to meet customer requirements and to strive to exceed customer expectations”, where “a customer can be internal or external to the organization”. Internal customers refer to a company’s employees, while external customers are the buyers of a company’s products and services. Previous research has scrutinised the impact of ISO 9001 on company performance, without clear focus on the performance related to internal and external customers.
Methodology/Approach: The purpose of this paper is to measure the impact of ISO 9001 on the performance to internal and external customers using a survey that has been responded by 141 companies in the Republic of Serbia.
Findings: The results show that quality management system (QMS) certification to ISO 9001 enhances employee- and customer-related company performance, while certification incentives are found to influence this relationship.
Research Limitation/Implication: The data are gathered in only one specific country, although there are no reasons to think that the results could depend of the specific analysed region.
Originality/Value of paper: The main value of the article is to be one of the first ones to analyse, in any way, the impact of QMS on internal and external customers.
References
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Bekele, E. and Zewedie, S., 2017. The impacts of ISO 9001:2008 implementation on employees’ job satisfaction. Global Journal of Management and Business Research: Administration and Management, 17(3), pp.35-44.
Boiral, O., 2003. ISO 9000: Outside the iron cage. Organization science, [e-journal] 14(6), pp. 720-737. DOI: 10.1287/orsc.14.6.720.24873.
Boiral, O., Guillaumie, L., Heras, I. and Tayo Tene, C.V., 2018. Adoption and outcomes of ISO 14001: A systematic review. International Journal of Management Reviews, [e-journal] 20(2), pp.411-432. DOI: 10.1111/ijmr.12139.
Bravi, L., Murmura, F. and Santos, G., 2019. The ISO 9001:2015 quality management system standard: Companies’ drivers, Benefits and Barriers to Its Implementation. Quality Innovation Prosperity, [e-journal] 23(2), pp.64-82. DOI: 10.12776/qip.v23i2.1277.
Casadesus, M., Marimon, F. and Alonso, M., 2010. The future of standardised quality management in tourism: evidence from the Spanish tourist sector. The Service Industries Journal, [e-journal] 30(14), pp.2457-2474. DOI: 10.1080/02642060802712822.
Chountalas, P.T., Magoutas, A.I. and Zografaki, E., 2020. The heterogeneous implementation of ISO 9001 in service-oriented organizations. The TQM Journal, [e-journal] 32(1), pp.56-77. DOI: 10.1108/TQM-02-2019-0053.
Del Castillo-Peces, C., Mercado-Idoeta, C., Prado-Roman, M. and Del Castillo-Feito, C., 2018. The influence of motivations and other factors on the results of implementing ISO 9001 standards. European Research on Management and Business Economics, [e-journal] 24(1), pp.33-41. DOI: 10.1016/j.iedeen.2017.02.002.
Dias, A. and Heras, I., 2013. Efficiency of ISO 9001 in Portugal: A qualitative study from a holistic theoretical perspective. International Journal for Quality Research, [e-journal] 7(1), pp.31-62.
Dias, A. and Heras, I., 2016. ISO 9001 performance: A holistic and mixed-method analysis. Review of International Comparative Management, 17(2), pp. 136-163.
DiMaggio, P.J. and Powell, W., 1983. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, [e-journal] 48(2), pp.147-160. DOI: 10.2307/2095101.
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Gotzamani, K., 2010. Results of an empirical investigation on the anticipated improvement areas of the ISO 9001:2000 standard. Total Quality Management & Business Excellence, [e-journal] 21(6), pp.687-704. DOI: 10.1080/14783363.2010.483101.
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Heras-Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: Towards a research agenda on management system standards. International Journal of Management Reviews, [e-journal] 15, pp.47-65. DOI: 10.1111/j.1468-2370.2012.00334.x.
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Hernandez-Vivanco, A., Domingues, P., Sampaio, P., Bernardo, M. and Cruz-Cázares, C., 2019. Do multiple certifications leverage firm performance? A dynamic approach. International Journal of Production Economics, [e-journal] 218, pp.386-399. DOI: 10.1016/j.ijpe.2019.07.016.
Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser, W.E. and Schlesinger, L.A., 1994. Putting the service-profit chain to work. Harvard Business Review, 72(2), pp.164-175.
Holmemo, M.D.-Q., Rolfsen, M. and Ingvaldsen, J.A., 2018. Lean thinking: outside-in, bottom-up? The paradox of contemporary soft lean and consultant-driven lean implementation. Total Quality Management & Business Excellence, [e-journal] 29(1-2), pp.148-160. DOI: 10.1080/14783363.2016.1171705.
Husseini, S.A., Al-Shami, S.A., Fam, S.F. and Derei, S.A., 2018. Impact of ISO 9001: 2008 Certification on consumer satisfaction. Journal of Advanced Research in Dynamical & Control Systems, 10, pp.322-331.
International Organizational for Standardization (ISO), 2015. ISO 9000: Quality management systems - Fundamentals and vocabulary. Geneve: Switzerland.
International Organizational for Standardization (ISO), 2020. The ISO Survey. [online]. Available at: [Accessed 22 December 2021].
Kakouris, A.P. and Sfakianaki, E., 2018. Impacts of ISO 9000 on Greek SMEs business performance. International Journal of Quality & Reliability Management, [e-journal] 35(10), pp.2248-2271. DOI: 10.1108/IJQRM-10-2017-0204.
Karapetrovic, S., Casadesus, M. and Saizarbitoria, I.H., 2010. What happened to the ISO 9000 lustre? An eight-year study. Total Quality Management & Business Excellence, [e-journal] 21(3), pp.245-267. DOI: 10.1080/14783360903553149.
Kokkina, D., Chountalas, P.T. and Magoutas, A.I., 2020. Key antecedents and consequences of employee engagement: Empirical evidence from ISO 9001 certified organizations operating in the ICT sector. Calitatea: Acces la Success, 21(17), pp.59-71.
Kong, S.M., Gomez, C.P. and Hamid, Z.A., 2009. Benefits of ISO 9001:2000 certifications – Evidence from Malaysian construction industry. In: The Institution of Surveyors Malaysia, 13th Pacific Association of Quantity Surveyors Congress. Kuala Lumpur, Malaysia, 17-18 August 2009.
Kumar, P., Maiti, J. and Gunasekaran, A., 2018. Impact of quality management systems on firm performance. International Journal of Quality & Reliability Management, [e-journal] 35(5), pp.1034-1059. DOI: 10.1108/IJQRM-02-2017-0030.
Lushi, I., Mane, A., Kapaj, I. and Keco, R., 2016. A Literature Review on ISO 9001 standard. European Journal of Business, Economics and Accountancy, 4(2), pp.81-85.
Marshall, G.W., Baker, J. and Finn, D.W., 1998. Exploring internal customer service quality. Journal of Business & Industrial Marketing, [e-journal] 13(4/5), pp.381-392. DOI: 10.1108/08858629810226681.
Martínez, N.O., Carabel, T.C. and Del Castillo Feito, C., 2018. Legitimacy and reputation of organizations: Their relationship with management systems and financial performance. In: E. Díez-De-Castro and M. Peris-Ortiz, eds. 2018. Organizational Legitimacy. Cham: Springer. pp.141-157.
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McDermott, L.C. and Emerson, M., 1991. Quality and service for internal customers. Training & Development, 45(1), pp.61-64.
Melão, N.F. and Guia, S.M., 2015. Exploring the impacts of ISO 9001 on small- and medium-sized social service institutions: a multiple case study. Total Quality Management & Business Excellence, [e-journal] 26(3-4), pp.312-326. DOI: 10.1080/14783363.2013.822193.
Nabavi, V., Azizi, M. and Faezipour, M., 2014. Implementation of quality management system based on ISO 9001:2008 and its effects on customer satisfaction case study. International Journal of Quality & Reliability Management, [e-journal] 31(8), pp.921-937. DOI: 10.1108/IJQRM-04-2013-0064.
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Oliveira, G.S., Corrêa, J.E., Balestrassi, P.P., Martins, R.A. and Turrioni, J.B., 2019. Investigation of TQM implementation: empirical study in Brazilian ISO 9001-registered SMEs. Total Quality Management & Business Excellence, [e-journal] 30(5-6), pp.641-659. DOI: 10.1080/14783363.2017.1328273.
Othman, N.B., 2019. Quality management systems, employee satisfaction and motivational factors influence on employee performance in private higher education institutions in Malaysia. Ph.D. Thesis. Utara University.
Petnji Yaya, L.H., Marimon, F. and Casadesus, M., 2014. The revitalising effect of ISO 9001 on dissatisfied customers. Total Quality Management, [e-journal] 25(8), pp.856-864. DOI: 10.1080/14783363.2014.904567.
Pfau, B., Detzel, D. and Geller, A., 1991. Satisfy your internal customers. Journal of Business Strategy, [e-journal] 12(6), pp.9-13. DOI: 10.1108/eb039449.
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Prajogo, D, Nair, A and Castka, P., 2022. The effects of external auditors and certification bodies on the operational and market-oriented outcomes of ISO 9001 implementation, IEEE Transactions on Engineering Management, [e-journal] 69(4), pp.1447-1458. DOI: 10.1109/TEM.2020.2982657.
Rodríguez-Antón, J.M. and Alonso-Almeida, M.M., 2011. Quality certification systems and their impact on employee satisfaction in services with high levels of customer contact. Total Quality Management, [e-journal] 22(2), pp.145-157. DOI: 10.1080/14783363.2010.529640.
Sakka, S., 2013. The impact of applying quality management system and environment standard on organization performance an application on SME's in Egypt. European Journal of Business and Management, 5(19), pp.82-86.
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Beck, N. and Walgenbach, P., 2003. ISO 9000 and formalization – how organizational contingencies affect organizational responses to institutional forces. Schmalenbach Business Review, [e-journal] 55, pp.293-320. DOI: 10.1007/BF03396680.
Beck, N. and Walgenbach, P., 2009. The economic consequences of ISO 9000 Certification in East and West German firms in mechanical engineering industry. Journal for East European Management Studies, [e-journal] 14(2), pp.166-185. DOI: 10.5771/0949-6181-2009-2-166.
Bekele, E. and Zewedie, S., 2017. The impacts of ISO 9001:2008 implementation on employees’ job satisfaction. Global Journal of Management and Business Research: Administration and Management, 17(3), pp.35-44.
Boiral, O., 2003. ISO 9000: Outside the iron cage. Organization science, [e-journal] 14(6), pp. 720-737. DOI: 10.1287/orsc.14.6.720.24873.
Boiral, O., Guillaumie, L., Heras, I. and Tayo Tene, C.V., 2018. Adoption and outcomes of ISO 14001: A systematic review. International Journal of Management Reviews, [e-journal] 20(2), pp.411-432. DOI: 10.1111/ijmr.12139.
Bravi, L., Murmura, F. and Santos, G., 2019. The ISO 9001:2015 quality management system standard: Companies’ drivers, Benefits and Barriers to Its Implementation. Quality Innovation Prosperity, [e-journal] 23(2), pp.64-82. DOI: 10.12776/qip.v23i2.1277.
Casadesus, M., Marimon, F. and Alonso, M., 2010. The future of standardised quality management in tourism: evidence from the Spanish tourist sector. The Service Industries Journal, [e-journal] 30(14), pp.2457-2474. DOI: 10.1080/02642060802712822.
Chountalas, P.T., Magoutas, A.I. and Zografaki, E., 2020. The heterogeneous implementation of ISO 9001 in service-oriented organizations. The TQM Journal, [e-journal] 32(1), pp.56-77. DOI: 10.1108/TQM-02-2019-0053.
Del Castillo-Peces, C., Mercado-Idoeta, C., Prado-Roman, M. and Del Castillo-Feito, C., 2018. The influence of motivations and other factors on the results of implementing ISO 9001 standards. European Research on Management and Business Economics, [e-journal] 24(1), pp.33-41. DOI: 10.1016/j.iedeen.2017.02.002.
Dias, A. and Heras, I., 2013. Efficiency of ISO 9001 in Portugal: A qualitative study from a holistic theoretical perspective. International Journal for Quality Research, [e-journal] 7(1), pp.31-62.
Dias, A. and Heras, I., 2016. ISO 9001 performance: A holistic and mixed-method analysis. Review of International Comparative Management, 17(2), pp. 136-163.
DiMaggio, P.J. and Powell, W., 1983. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, [e-journal] 48(2), pp.147-160. DOI: 10.2307/2095101.
Field, A., 2009. Discovering statistics using SPSS. 3rd ed. SAGE Publications Ltd.
Gotzamani, K., 2010. Results of an empirical investigation on the anticipated improvement areas of the ISO 9001:2000 standard. Total Quality Management & Business Excellence, [e-journal] 21(6), pp.687-704. DOI: 10.1080/14783363.2010.483101.
Hauser, J.R., Simester, D.I. and Wernerfelt, B., 1996. Internal customers and internal suppliers. Journal of Marketing Research, [e-journal] 33(3), pp.268-280. DOI: 10.1177/002224379603300302.
Heras-Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: Towards a research agenda on management system standards. International Journal of Management Reviews, [e-journal] 15, pp.47-65. DOI: 10.1111/j.1468-2370.2012.00334.x.
Heras-Saizarbitoria, I. and Boiral, O., 2015. Symbolic adoption of ISO 9000 in small and medium-sized enterprises: The role of internal contingencies. International Small Business Journal, [e-journal] 33(3), pp.299-320. DOI: 10.2139/ssrn.2219563.
Heras-Saizarbitoria, I., Arana, G. and San Miguel, E., 2010. An analysis of the main drivers for ISO 9001 and other isomorphic metastandards. Review of International Comparative Management, 11(4), pp.562-574.
Heras-Saizarbitoria, I., Boiral, O. and Allur, E., 2018. Three decades of dissemination of ISO 9001 and two of ISO 14001: Looking back and ahead. In: I. Heras-Saizarbitoria. eds. 2018. ISO 9001, ISO 14001, and New Management Standards, Measuring Operations Performance. Cham: Springer. pp.1-15.
Hernandez-Vivanco, A., Domingues, P., Sampaio, P., Bernardo, M. and Cruz-Cázares, C., 2019. Do multiple certifications leverage firm performance? A dynamic approach. International Journal of Production Economics, [e-journal] 218, pp.386-399. DOI: 10.1016/j.ijpe.2019.07.016.
Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser, W.E. and Schlesinger, L.A., 1994. Putting the service-profit chain to work. Harvard Business Review, 72(2), pp.164-175.
Holmemo, M.D.-Q., Rolfsen, M. and Ingvaldsen, J.A., 2018. Lean thinking: outside-in, bottom-up? The paradox of contemporary soft lean and consultant-driven lean implementation. Total Quality Management & Business Excellence, [e-journal] 29(1-2), pp.148-160. DOI: 10.1080/14783363.2016.1171705.
Husseini, S.A., Al-Shami, S.A., Fam, S.F. and Derei, S.A., 2018. Impact of ISO 9001: 2008 Certification on consumer satisfaction. Journal of Advanced Research in Dynamical & Control Systems, 10, pp.322-331.
International Organizational for Standardization (ISO), 2015. ISO 9000: Quality management systems - Fundamentals and vocabulary. Geneve: Switzerland.
International Organizational for Standardization (ISO), 2020. The ISO Survey. [online]. Available at:
Kakouris, A.P. and Sfakianaki, E., 2018. Impacts of ISO 9000 on Greek SMEs business performance. International Journal of Quality & Reliability Management, [e-journal] 35(10), pp.2248-2271. DOI: 10.1108/IJQRM-10-2017-0204.
Karapetrovic, S., Casadesus, M. and Saizarbitoria, I.H., 2010. What happened to the ISO 9000 lustre? An eight-year study. Total Quality Management & Business Excellence, [e-journal] 21(3), pp.245-267. DOI: 10.1080/14783360903553149.
Kokkina, D., Chountalas, P.T. and Magoutas, A.I., 2020. Key antecedents and consequences of employee engagement: Empirical evidence from ISO 9001 certified organizations operating in the ICT sector. Calitatea: Acces la Success, 21(17), pp.59-71.
Kong, S.M., Gomez, C.P. and Hamid, Z.A., 2009. Benefits of ISO 9001:2000 certifications – Evidence from Malaysian construction industry. In: The Institution of Surveyors Malaysia, 13th Pacific Association of Quantity Surveyors Congress. Kuala Lumpur, Malaysia, 17-18 August 2009.
Kumar, P., Maiti, J. and Gunasekaran, A., 2018. Impact of quality management systems on firm performance. International Journal of Quality & Reliability Management, [e-journal] 35(5), pp.1034-1059. DOI: 10.1108/IJQRM-02-2017-0030.
Lushi, I., Mane, A., Kapaj, I. and Keco, R., 2016. A Literature Review on ISO 9001 standard. European Journal of Business, Economics and Accountancy, 4(2), pp.81-85.
Marshall, G.W., Baker, J. and Finn, D.W., 1998. Exploring internal customer service quality. Journal of Business & Industrial Marketing, [e-journal] 13(4/5), pp.381-392. DOI: 10.1108/08858629810226681.
Martínez, N.O., Carabel, T.C. and Del Castillo Feito, C., 2018. Legitimacy and reputation of organizations: Their relationship with management systems and financial performance. In: E. Díez-De-Castro and M. Peris-Ortiz, eds. 2018. Organizational Legitimacy. Cham: Springer. pp.141-157.
Martínez-Costa, M., Martínez-Lorente, A.R. and Choi, T.Y., 2008. Simultaneous consideration of TQM and ISO 9000 on performance and motivation: an empirical study of Spanish companies. International Journal of Production Economics, [e-journal] 113(1), pp.23-39. DOI: 10.1016/j.ijpe.2007.02.046.
McDermott, L.C. and Emerson, M., 1991. Quality and service for internal customers. Training & Development, 45(1), pp.61-64.
Melão, N.F. and Guia, S.M., 2015. Exploring the impacts of ISO 9001 on small- and medium-sized social service institutions: a multiple case study. Total Quality Management & Business Excellence, [e-journal] 26(3-4), pp.312-326. DOI: 10.1080/14783363.2013.822193.
Nabavi, V., Azizi, M. and Faezipour, M., 2014. Implementation of quality management system based on ISO 9001:2008 and its effects on customer satisfaction case study. International Journal of Quality & Reliability Management, [e-journal] 31(8), pp.921-937. DOI: 10.1108/IJQRM-04-2013-0064.
Nair, A. and Prajogo, D., 2009. Internalisation of ISO 9000 standards: the antecedent role of functionalist and institutionalist drivers and performance implications. International Journal of Production Research, [e-journal] 47(16), pp.4545-4568. DOI: 10.1080/00207540701871069.
Neyestani, B. and Juanzon, J.B.P., 2017. ISO 9001 standard and organization’s performance: A literature eeview. International Journal of Advanced Multidisciplinary Research, [e-journal] 4(2), pp.6-13. DOI: http://doi.org/10.22192/ijamr.2017.04.02.002.
Oliveira, G.S., Corrêa, J.E., Balestrassi, P.P., Martins, R.A. and Turrioni, J.B., 2019. Investigation of TQM implementation: empirical study in Brazilian ISO 9001-registered SMEs. Total Quality Management & Business Excellence, [e-journal] 30(5-6), pp.641-659. DOI: 10.1080/14783363.2017.1328273.
Othman, N.B., 2019. Quality management systems, employee satisfaction and motivational factors influence on employee performance in private higher education institutions in Malaysia. Ph.D. Thesis. Utara University.
Petnji Yaya, L.H., Marimon, F. and Casadesus, M., 2014. The revitalising effect of ISO 9001 on dissatisfied customers. Total Quality Management, [e-journal] 25(8), pp.856-864. DOI: 10.1080/14783363.2014.904567.
Pfau, B., Detzel, D. and Geller, A., 1991. Satisfy your internal customers. Journal of Business Strategy, [e-journal] 12(6), pp.9-13. DOI: 10.1108/eb039449.
Prajogo, D., 2011. The roles of firms’ motives in affecting the outcomes of ISO 9000 adoption. International Journal of Operations & Production Management, [e-journal] 31(1), pp.78-100. DOI: 10.1108/01443571111098753.
Prajogo, D, Nair, A and Castka, P., 2022. The effects of external auditors and certification bodies on the operational and market-oriented outcomes of ISO 9001 implementation, IEEE Transactions on Engineering Management, [e-journal] 69(4), pp.1447-1458. DOI: 10.1109/TEM.2020.2982657.
Rodríguez-Antón, J.M. and Alonso-Almeida, M.M., 2011. Quality certification systems and their impact on employee satisfaction in services with high levels of customer contact. Total Quality Management, [e-journal] 22(2), pp.145-157. DOI: 10.1080/14783363.2010.529640.
Sakka, S., 2013. The impact of applying quality management system and environment standard on organization performance an application on SME's in Egypt. European Journal of Business and Management, 5(19), pp.82-86.
Sfreddo, L.S., Vieira, G.B.B., Vidor, G. and Santos, C.H.S., 2021. ISO 9001 based quality management systems and organisational performance: a systematic literature review. Total Quality Management & Business Excellence, [e-journal] 32(3-4), pp.389-409. DOI: 10.1080/14783363.2018.1549939.
Singh, V., Kumar, A. and Singh, T., 2018. Impact of TQM on organisational performance: The case of Indian manufacturing and service industry. Operations Research Perspectives, [e-journal] 5, pp.199-217. DOI: 10.1016/j.orp.2018.07.004.
Statistical Office of the Republic of Serbia, 2021. Statistical Yearboook of the Republic of Serbia. Statistical Office of the Republic of Serbia. Serbia, Belgrade.
Sweis, R.J., Saleh, R.A., Sharaireh, Y. and Moarefi, A., 2019. An investigation of the satisfaction of project managers and team members: A comparative study between ISO 9001-certified and non-ISO 9001-certified project based companies in Jordan. International Journal of Quality & Reliability Management, [e-journal] 36(5), pp.708-734. DOI: 10.1108/IJQRM-03-2018-0071.
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Authors
Milovanović, V., Paunović, M., & Casadesus, M. (2023). Measuring the Impact of ISO 9001 on Employee and Customer Related Company Performance. Quality Innovation Prosperity, 27(1), 79–102. https://doi.org/10.12776/qip.v27i1.1808
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