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Do multiple certifications leverage firm performance? A dynamic approach

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  • Hernandez-Vivanco, Alfonso
  • Domingues, Pedro
  • Sampaio, Paulo
  • Bernardo, Merce
  • Cruz-Cázares, Claudio

Abstract

In a dynamic environment where organizations are continuously exposed to change, being robust, strong and competitive is a major managerial task. The aim of this article is to study the impacts of adopting multiple certifications on firm performance, by considering the dynamics involved in this process. A sample of 247 Portuguese firms that had adopted multiple certifications by 2015 encompassing the ISO 9001, ISO 14001 and OHSAS 18001 standards were studied by means of a longitudinal analysis. Their historical certification records were matched with their performance indicators to create a panel dataset from 2007 to 2015. The research into the causal effects of the certifications on firm performance was based on a panel dynamic approach, namely the system generalized method of moments. The following three combinations show consistent leverage on firm performance: ISO 9001, ISO 9001 + ISO 14001 and ISO 9001 + ISO 14001 + OHSAS 18001. Being ISO 9001 the common factor of these combinations and also the first standard adopted by most firms, results suggest that it might be a relevant driver towards improving firm performance. This research reveals new insights in this field by analyzing a changing environment where firms can be expected to certify dynamically according to the requirements of different standards.

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  • Hernandez-Vivanco, Alfonso & Domingues, Pedro & Sampaio, Paulo & Bernardo, Merce & Cruz-Cázares, Claudio, 2019. "Do multiple certifications leverage firm performance? A dynamic approach," International Journal of Production Economics, Elsevier, vol. 218(C), pages 386-399.
    • Handle: RePEc:eee:proeco:v:218:y:2019:i:c:p:386-399
    DOI: 10.1016/j.ijpe.2019.07.016
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    3. Xin Chen & Na Wang, 2023. "From green to gold? A test of the innovation incentive and performance improvement effect of enterprise voluntary environmental management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8005-8029, August.
    4. Hernandez-Vivanco, Alfonso & Bernardo, Merce, 2023. "Management systems and productive efficiency along the certification life-cycle," International Journal of Production Economics, Elsevier, vol. 266(C).
    5. Zubizarreta, Mikel & Arana-Landín, Germán & Siguenza, Waleska & Cuadrado, Jesús, 2024. "Forest certification and its impact on business management and market performance: The key role of motivations," Forest Policy and Economics, Elsevier, vol. 166(C).
    6. Fukuyama, Hirofumi & Tsionas, Mike & Tan, Yong, 2023. "Dynamic network data envelopment analysis with a sequential structure and behavioural-causal analysis: Application to the Chinese banking industry," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1360-1373.
    7. Luis Fonseca & Filipe Carvalho & Gilberto Santos, 2023. "Strategic CSR: Framework for Sustainability through Management Systems Standards—Implementing and Disclosing Sustainable Development Goals and Results," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    8. Damla Durak Uşar, 2024. "Impact of ISO Certifications on Corporate Financial Performance: Evidence from Istanbul Stock Exchange-Listed Manufacturing Companies," Sustainability, MDPI, vol. 16(16), pages 1-29, August.
    9. Dominik Zimon & Peter Madzik & Robert Sroufe, 2020. "The Influence of ISO 9001 & ISO 14001 on Sustainable Supply Chain Management in the Textile Industry," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    10. Alexis Ioannidis & Konstantinos J. Chalvatzis & Leonidas C. Leonidou & Zhiteng Feng, 2021. "Applying the reduce, reuse, and recycle principle in the hospitality sector: Its antecedents and performance implications," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3394-3410, November.
    11. Louis Maximilian Ronalter & Merce Bernardo & Javier Manuel Romaní, 2023. "Quality and environmental management systems as business tools to enhance ESG performance: a cross-regional empirical study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9067-9109, September.
    12. Juan José Tarí & José F. Molina‐Azorín & María D. López‐Gamero & Jorge Pereira‐Moliner, 2021. "The association between environmental sustainable development and internalization of a quality standard," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2587-2599, July.
    13. Izabela Simon Rampasso & Geraldo Pereira Melo Filho & Rosley Anholon & Robson Amarante de Araujo & Gilson Brito Alves Lima & Luis Perez Zotes & Walter Leal Filho, 2019. "Challenges Presented in the Implementation of Sustainable Energy Management via ISO 50001:2011," Sustainability, MDPI, vol. 11(22), pages 1-12, November.
    14. Frederick Kibon Changwony & Anthony Kwabena Kyiu, 2024. "Business strategies and corruption in small‐ and medium‐sized enterprises: The impact of business group affiliation, external auditing, and international standards certification," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 95-121, January.
    15. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.

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