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Effects of ISO 9001 on Non-Financial and Financial Performance in the Organizations: A Review

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  • Neyestani, Behnam

Abstract

The main purpose of this paper was to specify the impact of ISO 9001 on financial and non-financial performance. For this aim, a comprehensive literature review was carried out on the scholarly published studies, which investigated empirically the effects of ISO 9001 standard on the organization's performance in different sectors. Subsequently, the ISO 9001 studies identified and selected carefully that were relevant to the objectives and criteria of the study with the aim of achieving the results and making conclusions. The analysis of the results of the empirical studies uncovered that ISO 9001 significantly affected production process (internal business process), while this standard was not correlated with the indicators of innovation and learning perspective at significant level. Furthermore, the systematic review of the existing literature provided enough evidence that the effectiveness of ISO 9001 on customer's results and financial performance were unclear and contradictory.

Suggested Citation

  • Neyestani, Behnam, 2017. "Effects of ISO 9001 on Non-Financial and Financial Performance in the Organizations: A Review," MPRA Paper 76799, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76799
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    References listed on IDEAS

    as
    1. Neyestani, Behnam, 2016. "Impact of ISO 9001 Certification on the Projects' Success of Large-Scale (AAA) Construction Firms in the Philippines," MPRA Paper 76604, University Library of Munich, Germany.
    2. Neyestani, Behnam & Juanzon, Joseph Berlin P., 2017. "Effects of ISO 9001 Standard on Critical Factors of Project Management in Construction Industry," MPRA Paper 76602, University Library of Munich, Germany.
    3. Neyestani, Behnam & Juanzon, Joseph Berlin P., 2016. "Developing an Appropriate Performance Measurement Framework for Total Quality Management in Construction, and other Industries," MPRA Paper 76601, University Library of Munich, Germany, revised 30 Nov 2016.
    4. Md. Mazharul Islam & M.A. Karim & Essam Mohammed Habes, 2015. "Relationship between quality certification and financial & non-financial performance of organizations," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 119-132, Special I.
    5. Martinez-Costa, Micaela & Martinez-Lorente, Angel R. & Choi, Thomas Y., 2008. "Simultaneous consideration of TQM and ISO 9000 on performance and motivation: An empirical study of Spanish companies," International Journal of Production Economics, Elsevier, vol. 113(1), pages 23-39, May.
    6. Neyestani, Behnam & Juanzon, Joseph Berlin P., 2017. "Impact of ISO 9001 Standard on the Quality Costs of Construction Projects in the Philippines," MPRA Paper 76797, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ISO 9001 Certification; Quality Management System (QMS); Balanced Scored (BSC); Financial Performance; Non-Financial Performance; Organization's Performance.;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects

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