Internalisation of ISO 9000 standards: the antecedent role of functionalist and institutionalist drivers and performance implications†

Abstract

This study presents an investigation of the relationship between motivation for ISO 9000 certification and internalisation of practices underlying ISO 9000 standards. We use the theoretical lenses of resource-based view and institutional theory to develop our research hypotheses linking motivation with internalisation of ISO 9000 standards. These theories also provide a cogent means to understand the findings from the study. Further, the study presents the performance implications of internationalisation of ISO 9000 standards. A path model is developed that link motivation, internalisation of ISO 9000 standards and performance. Survey data from 281 ISO 9001 certified manufacturing and service organisations in Australia is used to test the research hypotheses of the study. The results suggest that internalisation of practices underlying ISO 9000 standards is affected by functionalist and institutionalist drivers. We find that internalisation of ISO 9000 standards is positively associated with operational performance, and operational performance, in turn, is positively associated with business performance. A closer examination by splitting the sample between high and low performing firms reveals that internalisation of ISO 9000 standards is associated with both functionalist and institutionalist motives in low performing firms, whereas only functionalist driver influence the internalisation of ISO 9000 standards in high performing firms. We offer theoretical and managerial implications of our findings. †Both authors contributed equally to the paper.