A Study on the Impacts of ISO 9000 Certification on Firmms Financial Performance in Malaysia

Abstract

Purpose - The purpose of this study is to examine the impacts of ISO 9000 certification on firm’s financial performance in Malaysia. Design/methodology/approach - The data for this quantitative study were gathered from 100 companies. Quality managers were used as key respondent the reliability and the validity of the questionnaire were thoroughly examined. The results are based on regression analysis and equation modelling by using SPSS software. Then, the data will be analysed in the relationship of each construct using the structural equation modelling approach. Findings - The findings of the study provide strong evidence that an ISO 9000 implementation is highly associated with improvements in overall financial performance is quality awareness, productivity, the better execution of business operation, market share, customer satisfaction and sales revenues support were found to be the determinants impacts of ISO 9000 certification on firm’s financial performance. Research limitations/implications - The authors performed the survey only at Malaysia using convenience sampling method. Hence, the research results may not be generalized to other contexts. Given this, in order to test the stability of the findings in other contexts, a replication research is important to be performed in the future. Originality/value - The paper proposes an enhanced conceptual framework that examines vital issues concerning the successful implementation of ISO 9000, thus, providing valuable outcomes for decision makers and academics. This study found that the framework could explain better each variable which has a relationship with the impacts of ISO 9000 certification on firm’s financial performance. Paper type - Research Paper