Does ISO 9000 certification improve business performance?

Abstract

This paper examines the issue of ISO 9000 certification and its perceived benefits for Singapore based companies. Using an empirical approach, the paper seeks to ascertain if certification has indeed improved the performance for listed and non-listed companies. The results from a survey of 146 firms suggest that while certification leads to better overall financial performance, non-listed certified firms experience better documentation procedures, higher perceived quality of products or services, and more effective communication among employees than listed certified firms. Some problems encountered in certification include the failures to establish adequate monitoring programs, to follow set procedures and to carry out appropriate management reviews of the new system as well as unclear authorisation. © MCB UP Ltd.