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What are the impacts of implementing ISOs on the competitiveness of manufacturing industry in China?

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  • Yeung, Godfrey
  • Mok, Vincent

Abstract

Based on the proposed 'PIE' analytical framework, this paper argues that the preparation, implementation and evaluation of international standards (ISOs) affect the competitiveness of (foreign-financed) export-oriented manufacturing industry in southern and southeastern China, both in the short- and long-term. During the period of preparation, the decision to adopt ISOs is mainly driven by market demand and/or by the decisions of established competitors. Negative effects due to the diversion of scarce resources and institutional resistance to change during the period of transitional implementation are offset by the overall enhancement of the firm's productivity in the long run. 'Tailoring for the external audit' and 'second-best' practices are two strategies commonly employed by Chinese firms to lower the transaction costs involved in ISO audits.

Suggested Citation

  • Yeung, Godfrey & Mok, Vincent, 2005. "What are the impacts of implementing ISOs on the competitiveness of manufacturing industry in China?," Journal of World Business, Elsevier, vol. 40(2), pages 139-157, May.
    • Handle: RePEc:eee:worbus:v:40:y:2005:i:2:p:139-157
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    1. Godfrey Yeung, 2002. "WTO Accession, the Changing Competitiveness of Foreign-financed Firms and Regional Development in Guangdong of Southern China," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 627-642.
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    Cited by:

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    2. Lijun Tang & Victor Gekara, 2020. "The Importance of Customer Expectations: An Analysis of CSR in Container Shipping," Journal of Business Ethics, Springer, vol. 165(3), pages 383-393, September.
    3. Heras-Saizarbitoria, Iñaki & Boiral, Olivier, 2019. "Faking ISO 9001 in China: An exploratory study," Business Horizons, Elsevier, vol. 62(1), pages 55-64.
    4. Lamin, Anna & Livanis, Grigorios, 2020. "Do third-party certifications work in a weak institutional environment?," Journal of International Management, Elsevier, vol. 26(2).
    5. Thomas Dietz & Janina Grabs & Andrea Estrella Chong, 2021. "Mainstreamed voluntary sustainability standards and their effectiveness: Evidence from the Honduran coffee sector," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 333-355, April.
    6. Isabel Maria Bodas Freitas & Michiko Iizuka, 2008. "Standards compliance as an alternative learning opportunity under globalization in Latin America," SPRU Working Paper Series 172, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. Isabel Maria Bodas Freitas & Michiko Iizuka, 2012. "A multi-level analysis of the diffusion of standards compliance in Latin America," Grenoble Ecole de Management (Post-Print) hal-01487512, HAL.
    8. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    9. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
    10. Cubie L.L. Lau & Zinette Bergman & Manfred Max Bergman, 2019. "Environmental Protection and Corporate Responsibility: The Perspectives of Senior Managers and CxOs in China," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    11. Jose García-Quevedo & Effie Kesidou & Ester Martínez-Ros, 2018. "Inter-industry differences in organisational eco-innovation: a panel data study," Working Papers 2018/07, Institut d'Economia de Barcelona (IEB).
    12. Elisabet Garrido & Consuelo González & Raquel Orcos, 2020. "ISO 14001 and CO2 emissions: An analysis of the contingent role of country features," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 698-710, February.
    13. Yujuan Guo & Abe P. L. Jong & Andy C. L. Yeung, 2018. "Quality management and international trade: institutionalization of quality standards and performance outcomes in China," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-10, December.
    14. Goedhuys, Micheline & Sleuwaegen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," International Business Review, Elsevier, vol. 25(6), pages 1344-1355.
    15. Iñaki Heras‐Saizarbitoria & German Arana & Olivier Boiral, 2016. "Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 545-559, December.
    16. Guoyou Qi & Saixing Zeng & Xiaodong Li & Chiming Tam, 2012. "Role of Internalization Process in Defining the Relationship between ISO 14001 Certification and Corporate Environmental Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(3), pages 129-140, May.
    17. Jose García‐Quevedo & Effie Kesidou & Ester Martínez‐Ros, 2020. "Driving sectoral sustainability via the diffusion of organizational eco‐innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1437-1447, March.
    18. Konstantinos Iatridis & Effie Kesidou, 2018. "What Drives Substantive Versus Symbolic Implementation of ISO 14001 in a Time of Economic Crisis? Insights from Greek Manufacturing Companies," Journal of Business Ethics, Springer, vol. 148(4), pages 859-877, April.
    19. Bodas Freitas, Isabel Maria & Iizuka, Michiko, 2012. "Openness to international markets and the diffusion of standards compliance in Latin America. A multi level analysis," Research Policy, Elsevier, vol. 41(1), pages 201-215.

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