The Effect of New and Renewable Energy Equipment KS Certification Requirements on the Performance of Firms

Abstract

New and Renewable Energy Equipment Certification program has been integrated into the KS (Korean Industrial Standards) certification system as of July 29, 2015. This study is to determine whether the KS certification requirement has had a positive effect on corporate performance (e.g. quality improvement, financial result, customer satisfaction) within those that had already acquired the New and Renewable Energy Equipment KS certification. As a result, among the requirements for the KS certification, quality management, product management, and product testing have a positive impact on product quality improvement, and product testing has shown a positive influence on customer satisfaction. Although requisite for the KS certification did not have a significant effect on financial outcome such as increase in revenue, it has shown to have positive consequence to some extent on those firms that newly obtained the certification.