A triple analysis of ISO 9000 effects on company performance

TLDR

ISO 9000 certification is increasingly important for companies worldwide, yet studies on its impact on performance have produced contradictory results. This study aims to clarify ISO 9000’s impact on company performance by employing objective metrics and both cross‑sectional and longitudinal analyses. The authors analyzed data from 713 firms, comparing certified versus non‑certified companies and conducting a longitudinal assessment of certification outcomes. The study finds that while ISO 9000 can improve performance, it may also diminish benefits and profitability, indicating that compliance alone does not confer a competitive advantage.

Abstract

Purpose ISO 9000 certification has a growing importance for companies, mainly in Europe but also in other countries. Several papers have analysed the effects of ISO 9000 certification on company results, with contradictory conclusions. The purpose of this work is to clarify these possible effects. Design/methodology/approach This paper reports new findings on the topic following a study using data from 713 companies and using the two methodologies that have been applied in the scientific literature: the comparison of certified and non‐certified companies and a longitudinal study of the results of certification. Findings The data suggest that not only is ISO 9000 positive for companies but also it can actually reduce benefits and profitability. Practical implications Several reasons for these results can be suggested and constitute a critique of the almost compulsory character of ISO 9000 as a norm for performance in some markets. Companies should be aware that implementing ISO 9000 just for compliance does not constitute a competitive advantage. Originality/value This research uses objective measures of performance and combines two methodologies: the comparison between certified and non‐certified companies and a longitudinal analysis.