Abstract
The present study aims to investigate the motives and benefits of certification to ISO 9001 among Indian SMEs of manufacturing and service sectors. The main objective of this paper is to provide empirical evidence on SMEs’ motivation to pursue ISO 9001 quality management system (QMS) and the benefits they receive from being certified to ISO 9001. First, several studies about the benefits and motivations of QMS in various countries are reviewed, and then a questionnaire is sent to 800 ISO 9001 certified SMEs, representing both manufacturing and service sectors in India. Only 115 valid responses are processed and analysed. The survey findings indicate that majority of the SMEs meet the purpose and spirit of ISO 9001 for which it was designed and developed to bring the quality practices and culture into the organization and improve the operational and financial results of the organisations. However, the motives and benefits of certification have reported very weak association across SMEs of manufacturing and service sectors. In addition, ISO 9001 certification, widely regarded as a tool that improves the profits and motivates organisations to pursue it has found significant difference across manufacturing and service sectors SMEs.
Highlights
Over the last 15 years, there has been a rapid growth of ISO 9001 certificates in the developing countries in general and India in particular
Several studies about the benefits and motivations of quality management system (QMS) in various countries are reviewed, and a questionnaire is sent to 800 ISO 9001 certified small and medium size organisations (SMEs), representing both manufacturing and service sectors in India
A random sample of 800 companies was selected from a list of about 1500 ISO 9001 certified manufacturing and service organisations that were recorded in the database of the Ministry of Micro, Small & Medium Enterprises (MSME) who had applied for certification fee reimbursement scheme initiated by the government of India
Summary
Over the last 15 years, there has been a rapid growth of ISO 9001 certificates in the developing countries in general and India in particular. The ever growing number of ISO 9001certificates makes India one of the top ten countries in the world. With 41,016 ISO 9001 certificates, according to ISO Survey 2014, India ranks fifth in terms of the number of certified organisations among 188 countries (Table). The number of ISO 9001certified organisations across Asia where developing countries are in the majority is continuously increasing (Figure 2). This growing number of ISO 9001certified organisations in developing countries has raised concerns among the quality practitioners and policy makers about the quality and credibility of the certification.
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