Impact of ISO 9001 certification on United States firms' financial performance
[Thesis]
;supervisor: Badar, M. Affan; Hayden, Michael A.
Indiana State University: United States -- Indiana
: 2013
162 Pages
Ph.D.
One of the greatest demands in our global economy that have compelled firms to invest increasingly in resources for the enhancement of their management practices is organizational competitiveness. Standards have played an increasingly important role in economic and market globalization. Studies on the financial impact of ISO 9001 on firms are still inadequate to make definitive conclusions on the financial impact of ISO 9001 on firms. Furthermore, there is no clear position on the financial benefits of ISO 9001 standard in literature. Therefore, the researcher investigated the impact of ISO 9001 certification on United States firms' financial performance for a period of five years including one-year prior to certification, year of certification, and three fiscal years after certification. A sample of 397 firms that had received ISO 9001 certification from 1991 to 2002 was examined. Certified-firm and non-certified-firm operating performances were examined over the same period based on the ratio of pre-tax operating income to total assets (EBITA/TA). Wilcoxon signed-rank test was used to test for significant differences in operating performance between the firms. There was significant improvement performance from prior year to year of certification. The certified firms performed better in the five-year period than the non-certified and the matched-control firms.