A comparative study of TQM practice and organisational performance of SMEs with and without ISO 9000 certification

TLDR

A recent report indicated that quality philosophy and standards have not effectively reached the core of Australia’s 780,000 SMEs. This study empirically examines differences in TQM implementation and organisational performance between Western Australian SMEs with and without ISO 9000 certification. A 36‑item questionnaire based on the Australian Business Excellence framework was developed, validated, and used to self‑assess TQM practices. Results revealed no significant difference in TQM implementation or organisational performance between ISO 9000‑certified and non‑certified SMEs, aligning with findings from large Australian organisations.

Abstract

Recently, a highly credible report suggested that the quality philosophy and quality standards have not effectively reached the core of Australia’s commercial base – 780,000 small and medium enterprises (SMEs). Drawing on this critical finding, this study aims at providing empirical evidence on the differences in total quality management (TQM) implementation and organisational performance of SMEs in Western Australia, with and without ISO 9000 certification. Using the criteria of the Australian Business Excellence (ABE) framework as a guide, a questionnaire with 36 items was developed, checked for reliability and validity and applied to create a self‐assessment measure of TQM practices. The results showed that there was no significant difference between SMEs with and without ISO 9000 certification with respect to TQM implementation and organisational performance. This result concurs with the findings of studies conducted in the context of large organisations in Australia.