With the rapidincrease in global competition, it has become mandatory for the organizationsto deliver high quality products and continually improve to survive. Among thevarious quality management approaches like lean management, Six Sigma, TQM, etc.being used by organizations to achieve these objectives, the most commonapproach is ISO-9001 Quality Management System (QMS). The ISO 9001 Standard wasintroduced in 1987 and as per ISO Survey Report of 2016 more than one millionorganizations have implemented this standard in 195 countries.
In order to makeit compatible with the rapidly changing requirements the standard has been revisedin the years 1994, 2000, 2008 and most recently in 2015. The standard supportsthe process base approach to develop, implement and enhance the effectivenessof a quality management system. It sets out the requirements of qualitymanagement system for an organization to demonstrate its capability to deliverproducts and services that fulfill customer and regulatory requirements and aimsto increase customer satisfaction.
Guidelines regarding procedure control anddocumentation for a QMS are provided to identify the gaps, streamline theoperations and keep a consistent level of quality in the company. The ISO 9001is a part of ISO 9000 standards series, published by the InternationalOrganization for Standardization (ISO). The series gives direction and tools tocompanies who want to make sure that their product and services consistentlyfulfill customer’s requirements. These standards provide guidelines to all theorganizations irrespective of their types and sizes for the implementation andoperation of effective quality management systems. The ISO 9000 family includesthe following four different standards: · ISO 9001:2015 states the requirements of quality managementsystem for an organization to demonstrate its capability to deliver productsand services that fulfill customer and regulatory requirements and aims toincrease customer satisfaction.· ISO 9000:2015specifies fundamentals of quality management systems and explains thevocabulary in the ISO 9000 family of standards. The fundamental understandingof the quality management in ISO standards has been developed. Moreover, it describeseight principles of quality management and the use of the process approach forcontinual improvement.
· ISO 9004:2009 provides guidelines on effectiveness andefficiency of a quality management system. It is quite helpful for theorganizations to increase the benefits gained from ISO 9001 and to continuallyimprove the performance of the organization. · ISO 19011:2011 provides guidelines for internal and externalauditing of quality management systems and environmental management systems. Itfurnishes information related to the audit programs, conduct of internal orexternal audit, and auditor competence. As mentionedabove, more than one million organizations in the world have acquired the ISO9001 certification. Although the standard has been adopted by large number oforganizations, however the question regarding achievement of expected benefitsremains under discussion.
To answer this question, impacts of ISO 9001certification have been studied by many researchers since the implementation ofthe standard. Unfortunately, there is still lack of consent regarding theimpacts of ISO 9001 certification even after 29 years of research. A number ofstudies have reported positive impact of ISO 9001 certification on differentperformance measures. For example; ISO 9001 acts as a catalyst for change andit is positively related to performance (Naveh & Marcus, 2005), it has positiveand significant impacts over the companies’ performance (Paulo, Pedro &Antonio, 2009). However, various studies have questioned these optimistic views.Many studies have abnegated the positive impacts of the ISO 9001 and highlightedthe negative effects that may arise by certification. For example, Yeung (2011) showed that certification has asignificant negative impact on return on assets, especially in the first twoyears. As per Olivier (2012), ISO 9001 certification does have the negativeimpacts like bureaucracy, cost of the system, superficial integration and lackof confidence.
Hence, there is a lack of agreement among researchers regardingthe relationship between ISO 9001 certification and the organizationalperformance. InPakistan, a few studies have been carried out regarding the impact of ISO 9001.For example, Salman and Raza explored the degree to which the practice of ISO9001:2000 are used in Searle Pakistan limited and Hayat and Ishaq have brieflyreviewed and analyzed different practices of ISO 9000 in three sports goodsfirms of Pakistan. However, these studies are based on very specific contextsthat cannot be generalized. The specific areas and sectors are not generallyrepresentative of whole population of certified organizations. Hence, there isa lack of research work on discovering the overall impact of ISO 9001 on thecertified organizations of Pakistan. Keeping inview the growth of ISO 9001 certification worldwide and its importance amongpractitioners, additional research is necessary to gain a generalizedunderstanding of the relationship between ISO 9001 certificate andorganizational performance in Pakistan.
Moreover, Motivational factors toobtain ISO 9001 certification are the primary determinants of the impact ofcertification on organizational performance. Many organizations do temporaryimprovement of systems to obtain the certification for the purpose advertisementand due to strong competition. Hence, they do not attain acceptable results andimprovements. Therefore, among the several factors, motives for adoption andimplementation process of ISO 9001 have received the most significant attention(Prajogo, 2011). Thisstudy will find the firms’ motivational factors to obtain the ISO 9001certification and the impact of this certification on organizationalperformance in Pakistan.
The studywill focus the project base and functional organizations, product and serviceindustry of small and large scale dispersed all over the Pakistan. Motivationsand impact of ISO 9001 certification will be studied on certified organizationsof Pakistan through a questionnaire developed by Corbett, Luca, and Pan (2003).Questionnaire will be sent to quality manager of each organization included inthe sample. Data obtained through questionnaire will be analyzed through SPSS.Reliability and validity of questionnaire will be calculated.
Descriptiveanalysis, regression, correlation and factor analysis will be performed usingSPSS. Conclusion will be drawn as a result of the analyses. 1.
1 ProblemStatement and Research Questions There has been an exponential growth in the number ofcertified organizations over the last two decades. However, as discussed abovethat the impact of ISO 9001 implementation on firm performance has remainedcontroversial as some studies showed the positive results while a number ofstudies have denied the positive impacts of the ISO 9001 implementation andhighlighted the negative effects that may arise by certification. Hence, lackof agreement exists among researchers regarding the relationship between ISO9001 certification and the organizational performance. Therefore the firstresearch question will determine the impact of ISO 9001 certification on firmperformance in Pakistan. What are theimpacts of ISO 9001 certification on Organizational Performance? Despite of the successes that may result from ISO 9001implementation, some of the registered companies may not be able to enhancetheir performance. Many companies due to strong competition and advertisement affairs,restrict themselves only to the temporary improvement of systems and obtainingthe certification. Hence, they do not achieve acceptable results as a result ofemploying this standard.
Therefore, company’s motivations to obtain ISO 9001certificate is regarded as one of the primary factors to determine the impactof this standard’s implementation. Therefore the second research question willfocus on motivation factors for achieving ISO 9001 certification: What are themotivation factors for ISO 9001 certification? 1.2 Objectivesof the Study Theobjective of this study is to investigate the factors which lead to ISO 9001certification and the impact of this certification on organizationalperformance in Pakistan. The study aimsto establish the following: · Determine the impact ofimplementation of the ISO 9001 standard on Organizational Performance inPakistan.· Determine the motivational factorsto obtain ISO 9001 certification.
1.3 Significanceof the Study Although there have been a number ofstudies related to impact of ISO 9001 on organization performance but still thereal benefits of certification remain controversial. Moreover, as describedearlier, there is a lack of research work on discovering the overall impact ofISO 9001 on the certified organizations of Pakistan. Given theimportance of ISO 9001 among practitioners, and its significance in operationsmanagement research, additional study is necessary to gain a generalizedunderstanding of the relationship between ISO 9001 certificate and organizationalperformance in Pakistan. The study will not only a contribution towardsresearch work, it will also act as a tool for management to decide whether toadopt this standard or not. This study will focus the project base andfunctional organizations, product and service industry of small and large scaledispersed all over the Pakistan, thus, providing overall impact and motivationof ISO 9001 implementation. 1.
4 Sequenceof study The dissertation starts with the introduction of theISO 9001 Quality Management System, highlighting the research gaps,significance, research questions and objectives of the study. Second chapterdiscusses the literature regarding impact and motivation of ISO 9001certification in international context as well as with respect to Pakistan. Thirdchapter presents the research framework of the study with justification andresearch model. Chapter four discusses the research methodology for analyzingimpact of certification on organizational performance and motivation forcertification. It includes the research design, sample design, instrumentselection, data analysis techniques and software used for analysis. Nextchapter presents the results related to impact of ISO 9001 certification onorganizational performance and motives for the certification. Chapter sixdiscusses the results obtained regarding impact of ISO 9001 certification andits motives in Pakistan.
It also includes the implications, limitations andfuture research required regarding the subject. Chapter seven provides the listof references and the last chapter includes the appendices.