Zaramding
Zaramding
Zaramding
www.emeraldinsight.com/0265-671X.htm
IJQRM
24,5 An empirical study of the motives
and benefits of ISO 9000
certification: the UAE experience
472
Walid Zaramdini
College of Business and Economics, UAE University, Al-Ain,
Received April 2005
Revised April 2006 United Arab Emirates
Abstract
Purpose – The aim of the paper is to analyze the different aspects of the motives and benefits of
certified ISO 9001: 2000 companies in the United Arab Emirates (UAE).
Design/methodology/approach – A total of 900 certified UAE companies were surveyed in April
2004 in UAE. The response rate was equal to 23.2 percent.
Findings – The paper finds that certified companies were more concerned by internal reasons like
improving processes or products than by external reasons like pressure from customers or imitation of
competitors. In addition, the certification process had generated more internal benefits than external
ones.
Research limitations/implications – These findings may indicate that the surveyed firms will
sustain their quality efforts as continuous improvement is one of the cornerstones of ISO 9001: 2000
standard. In April 2004, when this survey was conducted, the number of certified companies listed in
Dubai or in Abu Dhabi Stock Exchanges was still small. This limited the analysis of the certification’s
financial benefits.
Originality/value – This is one of the first papers trying to analyze the motives and benefits of ISO
9001: 2000 certified companies in the UAE. The selection of the motives and benefits were validated
through statistical analysis and the relationship between expected and perceived benefits was
discussed.
Keywords ISO 9000 series, Companies, United Arab Emirates
Paper type Research paper
Introduction
The ISO 9000 series of quality standards have been available in the marketplace for
nearly two decades. They serve as guidelines for any organization willing to establish
or improve its quality management system (QMS). Usually, when a company obtains
the ISO 9001: 2000 certificate, its business partners will be more confident in its QMS
(Stevenson and Barnes, 2001). Actually, the ISO 9000 standards are adopted in 154
countries and more than 670 000 ISO 9001: 2000 certificates have been issued
worldwide (ISO, 2004).
Some researchers investigated the “pros” and “cons” of the certification process
International Journal of Quality & (Stevenson and Barnes, 2001) or how the ISO 9000 helped companies in their total
Reliability Management quality management (TQM) journey (Magd and Curry, 2003; Sun, 1999). Other authors
Vol. 24 No. 5, 2007
pp. 472-491
q Emerald Group Publishing Limited
0265-671X
This work was financially supported by the Research Affairs at the UAE University under a
DOI 10.1108/02656710710748358 contract number: 01-03-4-11/4
studied the financial performances of the certified firms (Chow-Chua et al., 2003; Motives and
Häversjö, 2000; Tsekouras et al., 2002; Wayhan et al., 2002). benefits of
van der Wiele et al. (2005) provided an interesting classification of the research on
ISO 9000. They identified six major issues, namely: ISO 9000
(1) the relationship between ISO 9000 and TQM;
(2) perceptions about the benefits of ISO 9000;
473
(3) the relationship between ISO 9000 and organizational improvement;
(4) the usefulness of ISO 9000 for different sizes and types of organizations;
(5) the long-term effects of ISO 9000; and
(6) the motivation to implement ISO 9000.
Certain researchers investigated the state of ISO 9001: 2000 certification in the Arab
world. For example, Mezher (2000) studied the transition of 30 Lebanese firms from
ISO 9000 certification to TQM. A total of 32 Saudi manufacturing firms were surveyed
by Mezher and Ramadan (1999). They analyzed the costs and benefits linked with the
certification process. The main benefits perceived by Saudi firms were associated with
the improvement of customer service and firm’s efficiency. Similar results were found
by Magd et al. (2003). Egyptian companies were studied by Magd and Curry (2003).
The surveyed firms showed more interest towards internal operational benefits like
improvement in documentation or in the efficiency of the quality system. However,
some of these studies are just descriptive and do not include an in depth statistical
analysis.
We have noticed that among the Arab countries, the United Arab Emirates (UAE)
has the highest number of certified companies (about 900 certificates according to “The
ISO survey – 2004” (ISO, 2004)). The remaining top four positions are held by Egypt
(810 certificates), Saudi Arabia (394 certificates), and Morocco (296 certificates). The
UAE economy is heavily dependent on oil and natural gas export (it has about 10
percent of world oil reserves) and recently diversified its economy into the
manufacturing and services sectors. Dubai has become a Middle East hub for tourism
and trade businesses. However, the UAE has not been the subject of important
research regarding the ISO 9000 standards. This gave impetus to the following
research questions:
(1) What are the motivational and beneficial aspects of ISO 9001: 2000 certification
in UAE?
(2) What are the relationships between these two aspects?
Thus, it would be interesting to conduct an empirical study on the motives and benefits
of ISO 9000 certified companies in UAE. The contributions of this study to the body of
knowledge related to ISO 9000 research are as follows:
.
An extensive review of the different motives and benefits that are linked with
ISO 9001: 2000 certification.
.
An empirical study of the motives and benefits of the certified UAE
organizations, where statistical analyses were performed (reliability and
validity tests, t-test of the means, principal components analysis and
correlation analysis).
IJQRM .
Certain motives can be considered as “expected benefits”. Then, the gaps
24,5 between these expected benefits and their associated “perceived” benefits were
analyzed.
The remaining part of the paper will be as follows: first, we review the previous
literature on motives and benefits of ISO 9001: 2000 certification. Next, we present the
474 research methodology followed by the survey results. After discussing the main
findings of the empirical research, we finally conclude by providing useful
recommendations for practitioners.
Benefits of certification
Different authors studied the benefits of ISO 9001: 2000 certification from the
viewpoint of quantitative financial performance (Chow-Chua et al., 2003; Häversjö,
Number Reasons Typea Sources
1 Top management decision I Brown et al. (1998), Carlsson and Carlsson (1996), Escanciano et al. (2001)
2 Improving product and/or service I Buttle (1997), Carlsson and Carlsson (1996), Ebrahimpour et al. (1997), Escanciano et al. (2001), Llopis
quality and Tari (2003), Poksinska et al. (2002), Singels et al. (2001)
3 Improving processes and procedures I Bryde and Slocock (1998), Carlsson and Carlsson (1996), Ebrahimpour et al. (1997), Escanciano et al.
(2001), Jones et al. (1997), Krasachol et al. (1998), Lee (1998)
4 Improving productivity and/or I Brown et al. (1998), Bryde and Slocock (1998) Carlsson and Carlsson (1996), Llopis and Tari (2003)
efficiency
5 Reducing incidents, rejections and I Carlsson and Carlsson (1996), Llopis and Tari (2003)
complaints
6 A step towards total quality I Brown et al. (1998), Bryde and Slocock (1998), Carlsson and Carlsson (1996), Escanciano et al. (2001)
management Krasachol et al. (1998), Llopis and Tari (2003)
7 Use it as a basis for internal costs I Buttle (1997), Carlsson and Carlsson (1996), Escanciano et al. (2001)
reduction
8 Improving communication within the I Ebrahimpour et al. (1997)
organization
9 Improving relationships between I Ebrahimpour et al. (1997)
employees and management
10 Use it as a promotional and/or E Brown et al. (1998), Escanciano et al. (2001), Jones et al. (1997), Singels et al. (2001)
marketing tool
11 Maintaining and/or increasing market E Bryde and Slocock (1998), Carlsson and Carlsson (1996), Escanciano et al. (2001), Krasachol et al.
share (1998), Singels et al. (2001)
12 Demand and/or pressure from E Bryde and Slocock (1998), Carlsson and Carlsson (1996), Ebrahimpour et al. (1997), Escanciano et al.
customers (2001), Jones et al. (1997), Krasachol et al. (1998), Lee (1998), Singels et al. (2001)
13 Competitive advantage E Brown et al. (1998), Bryde and Slocock (1998), Carlsson and Carlsson (1996), Ebrahimpour et al. (1997),
Escanciano et al. (2001), Jones et al. (1997), Krasachol et al. (1998), Lee (1998), Singels et al. (2001)
14 Requisite to compete in the sector E Brown et al. (1998), Escanciano et al. (2001), Jones et al. (1997), Lee (1998), Singels et al. (2001)
15 Our competitors are ISO 9001 certified E Ebrahimpour et al. (1997), Escanciano et al. (2001)
16 Direct entry to new market E Carlsson and Carlsson (1996), Escanciano et al. (2001), Singels et al. (2001)
17 Be role model to suppliers E Brown et al. (1998), Bryde and Slocock (1998)
18 Improving the organization’s public E Ebrahimpour et al. (1997), Escanciano et al. (2001), Jones et al. (1997)
image
19 Requested by the government E Carlsson and Carlsson (1996), Huarng et al. (1999), Singels et al. (2001)
a
Note: E for external and I for internal
certification
Motives of ISO 9000
ISO 9000
Motives and
475
Table I.
benefits of
IJQRM 2000; Tsekouras et al., 2002; Wayhan et al., 2002) or qualitative performances (Arauz
24,5 and Suziki, 2004; Brown et al., 1998; Bryde and Slocock, 1998; Buttle, 1997; Chow-Chua
et al., 2003; Escanciano et al., 2001; Huarng et al., 1999; Jones et al., 1997; Singels et al.,
2001). For example (Buttle, 1997) found that “improving efficiency”, “improving
awareness of procedural problems” and “better management control” were the top
three benefits perceived by the firms studied, followed by “using standard as a
476 promotional tool” and “increasing customer satisfaction”. (Escanciano et al., 2001)
found similar results where “better understanding of processes/responsibilities” and
“company image in the market improved” were considered as the most important
benefits.
Similarly to the motives items list, each benefit item was classified according to its
internal or external most likely effect. Table II lists all the 20 benefits items collected
from different articles.
Research methodology
The collection of data was done through a questionnaire survey. The latter was mailed
to 900 UAE certified companies nationwide, in the beginning of April 2004,
accompanied with a return postage envelope. The companies’ addresses were collected
from different sources namely: Abu Dhabi Chamber of Commerce and Industry, Gulf
Oilfield Directory 2003 published by Arabian Publications (a publisher of professional
directories in UAE) and ISO Master Guide 2004-2005 published by Spear Publishing
(a marketing consulting company in Dubai). The list included companies operating in
different fields such as oil and gas, telecommunications, construction, information
technology, manufacturing and government agencies. Apart from the general
demographic questions that were asked (like size, field of operation, ownership, etc.),
the questionnaire survey included two sets of questions. One set is related to the
motivational aspects of the ISO 9001: 2000 certification and the second is related to the
benefits aspects. These questions were adapted from previous literature on the subject
as detailed in the preceding section.
A study group composed by three quality managers and two quality consultants,
who have an extensive experience in quality management within UAE firms, helped us
review the survey. In the light of their comments, the questionnaire was refined to
better adapt with the local culture. Evidently, the internal-external classification of the
question statements was not made apparent to the respondent. The questionnaire was
directly sent to the quality managers of the companies surveyed because it was an
important recommendation from the study group. Besides, many authors in similar
studies selected the quality manager as the most suitable person to answer their
questionnaires as he/she is usually the key person in coordinating the certification
process and is supposed to have had an extensive training in quality management
(Carlsson and Carlsson, 1996; Escanciano et al., 2001; Llopis and Tari, 2003). The Likert
scale of five points was used for evaluating every question statement. The scale was
assigned values from one to five to indicate agreement or disagreement with the
statement.
Out of 900 sent questionnaires, 220 were received. Among the 220 received
questionnaires, eleven were eliminated from subsequent analysis as they had
incomplete responses. Thus, the research is based on the data provided by 209
respondents, which leads to 23.2 percent response rate.
Number Benefits Typea Sources
1 Improved product and/or service I Arauz and Suziki (2004), Brown et al. (1998), Escanciano et al. (2001), Singels et al. (2001)
quality
2 Reduction in incidents, rejections and I Arauz and Suziki (2004), and Escanciano et al. (2001)
complaints
3 Increased productivity and/or I Buttle (1997), Dick (2000), Gotzamani and Tsiotras (2002), Häversjö (2000), Jones et al. (1997), Lee
efficiency (1998), Santos and Escanciano (2002)
4 Reduced internal costs I Arauz and Suziki (2004), Buttle (1997), Escanciano et al. (2001)
5 Improved profitability I Arauz and Suziki (2004), Buttle (1997), Dick (2000), Gotzamani and Tsiotras (2002), Häversjö (2000),
Jones et al. (1997), Lee (1998), Santos and Escanciano (2002)
6 Increased workforce motivation and I Buttle (1997), Brown et al. (1998), Escanciano et al. (2001), Gotzamani and Tsiotras (2002), McLachlan
retention (1996)
7 Employees become more quality aware I Brown et al. (1998), Chow-Chua et al. (2003), Dick (2000), Quazi and Padibjo (1998), Tsiotras and
Gotzamani (1996)
8 Improved processes and procedures I Arauz and Suziki (2004), Chow-Chua et al. (2003), Poksinska et al. (2002)
9 Elimination of redundancy or I Chow-Chua et al. (2003), McLachlan (1996)
unnecessary work
10 Better working environment I Escanciano et al. (2001)
11 Better customer service I Arauz and Suziki (2004), Buttle (1997)
12 Increased customer satisfaction E Arauz and Suziki (2004), Buttle (1997), Lee (1998), McLachlan (1996), Gotzamani and Tsiotras (2002),
Quazi and Padibjo (1998)
13 Reduction in the number of customer E Buttle (1997), Escanciano et al. (2001)
audits
14 Expansion to international markets E Chow-Chua et al. (2003), Brown et al. (1998), Buttle (1997)
15 Greater competitive advantage E Dick (2000), Gotzamani and Tsiotras (2002), McLachlan (1996), Quazi and Padibjo (1998)
16 Effective promotional and/or E Buttle (1997)
marketing tool
17 Improved market share E Brown et al. (1998), Dick (2000), Jones et al. (1997), McLachlan (1996), Santos and Escanciano (2002)
18 Suppliers’ quality improved E Escanciano et al. (2001)
19 Established and/or improved mutual E Arauz and Suziki (2004), Escanciano et al. (2001)
cooperation with suppliers
20 Organization’s image in the market E Chow-Chua et al. (2003), Tsiotras and Gotzamani (1996), Vloeberghs and Bellens (1996)
improved
Note: a E for external and I for internal
certification
Benefits of ISO 9000
ISO 9000
Motives and
477
Table II.
benefits of
IJQRM Survey results
24,5 Table III presents a descriptive statistical analysis of the companies’ demographic
information. We note that most of the responding companies were from the private
sector and a great number of them have either a small size or a medium size. In
addition, the majority of the surveyed companies are operating in the service sector.
Most of the respondents have a long working experience in the quality field. We note
478 that 108 surveyed companies have acquired the ISO 9001: 1994 or ISO 9002:1994
certificate then acquired the ISO 9001: 2000 certificate, whereas 101 organizations are
newly accredited.
The data analysis uses reliability tests, validity tests, t-test of the means, factor
analysis and correlation analysis. All statistical analyses were performed by using
SPSS (Release 12.0.0).
Description Frequency
Company size
Small (no. of employees , 100) 78
Medium . 100 no. of employees , 500) 77
Large . 500 no. of employees , 2,000) 40
Very large (no. of employees . 2,000) 14
Ownership
Private 177
Government 15
Joint 17
Activities
Services 117
Manufacturing 89
Oil and gas 3
Respondents experience
, 2 years 15
. 2 years . . . , 5 years 47
. 5 years 134
Missing 13
No. of companies that shifted from
Table III. ISO 9001:94 to ISO 9001:2000 83
Description of ISO 9002:94 to ISO 9001:2000 25
respondents Newly accredited 101
The Cronbach’s alpha for the 20 benefits items equals 0.901 (higher than 0.6). An Motives and
internal consistency analysis was performed but has not led to a higher Cronbach’s benefits of
alpha value; hence all benefits items are considered important.
The validity analysis of the questionnaire instrument refers to the extent to which it ISO 9000
measures what it was intended to measure. In this study, two different types of validity
are considered: content validity and construct validity.
The first one, also called face validity, depends on to what extent the researchers 479
developed the measurement items to cover the content domain of the variable being
measured. Usually, it is subjectively judged by the researchers. As earlier presented in
Tables I and II, the motives and benefits items were carefully selected from an
extensive review of literature. Furthermore, the validity of the lists of motives and
benefits statements was confirmed by a panel of quality managers and consultants
during the preliminary testing stage.
The construct validity refers to what extent the questionnaire instrument measures
a theoretical construct or trait it was supposed to measure. Some authors adopted the
internal-external classification prior to their statistical analyses (Jones et al., 1997;
Escanciano et al., 2001; Yahya and Goh, 2001; Vloeberghs and Bellens, 1996). Others
used it when performing a principal component analysis (Arauz and Suziki, 2004;
Brown et al., 1998; Bryde and Slocock, 1998; Buttle, 1997; Huarng et al., 1999; Llopis
and Tari, 2003; Singels et al., 2001).
So, in this research, the classification of motives and benefits items into internal and
external categories is first adopted as a theoretical trait (Tables I and II). Then, a
confirmatory factorial analysis (principal components with varimax rotation) is
conducted. We fix the number of factors to two then we check if each motive or benefit
statement belongs to its initial category. In other words, an internal motive statement
should have a high loading on the internal factor and have a low loading on the
external factor. Tables IV and V confirm the construct-validity of the internal-external
aspects of the motives and benefits items, presented in Tables II and III, respectively.
However, in Table V, the benefit statement (increased customer satisfaction) should
have loaded higher on the external factor. This result could be explained by the fact
that the respondents have considered it as an internal benefit item; nevertheless, the
remaining benefit items followed the predicted classification of Table II.
The low cumulative variance explained in both confirmatory factorial analyses
(40.61 percent and 47.26 percent) suggests an increase in the number of factors as this
will be more suitable from a statistical point of view. This issue will be treated later in
the factorial analysis section.
Component
Benefits items Internal External
The motives items are listed in decreasing order by their mean score. All statements
turned out to be significant at 95 percent confidence level, except for the “demand
and/or pressure from customers” item. The most significant ones are “top management
decision”, “improving processes and procedures”, and “improving product/service
quality” showing a t-value of 39.54, 35.49 and 30.63, respectively. As shown in Table VI,
the first five positions were occupied by internal motives. The first external motive,
“improving the organization’s public image”, held the sixth position.
However, for the “Demand and/or pressure from customers” statement, we cannot
reject the null hypothesis, in other words the respondents have not considered it as an
important reason for seeking the ISO 9001: 2000 certification. The “Direct entry to new
markets (like EU community)” presented a significant negative t-value. Hence, the
usually advanced argument that firms seek the certification for accessing the European
markets is not the case in UAE. The “Requested by the government” motive item
scored the lowest mean value. In fact, it was included in the questionnaire for testing
the consistency of the respondents’ answers (the UAE government does not impose on
public or private organizations the possession of ISO 9001: 2000 certificate).
Table VII presents the mean, standard deviation and t-values results for the 20
benefit statements. The first four important benefits are associated with internal
operational issues like processes, procedures and product/service quality. The internal
benefit statements like “improved processes and procedures”, “employees become
more quality aware” and “improved product and/or service quality” showed significant
positive t-values. The “Reduction in the number of customer’s audits” benefit
statement held the last position in Table VII.
IJQRM
Item name Type Mean Rank Std dev. t-value
24,5
Improved processes and procedures I 4.28 1 0.612 30.17 *
Employees become more quality aware I 4.20 2 0.584 29.60 *
Improved product and/or service quality I 4.16 3 0.664 25.19 *
Better customer service I 4.11 4 0.645 24.89 *
482 Organization’s image in the market improved E 4.07 5 0.714 21.71 *
Increased customer satisfaction E 4.06 6 0.712 21.48 *
Effective promotional and/or marketing tool E 4.00 7 0.806 17.85 *
Reduction in incidents, rejections and complaints I 3.99 8 0.693 20.65 *
Increased productivity and/or efficiency I 3.79 9 0.774 14.73 *
Better working environment I 3.73 10 0.717 14.75 *
Greater competitive advantage E 3.71 11 0.907 11.28 *
Elimination of redundancy or unnecessary work I 3.60 12 0.815 10.60 *
Improved market share E 3.47 13 0.809 8.38 *
Established and/or improved mutual cooperation
with suppliers E 3.45 14 0.796 8.25 *
Suppliers’ quality improved E 3.45 15 0.860 7.64 *
Improved profitability I 3.39 16 0.772 7.35 *
Increased workforce motivation and retention I 3.36 17 0.786 6.69 *
Reduced internal costs I 3.34 18 0.835 5.96 *
Expansion to international markets E 3.22 19 1.092 2.91 *
Reduction in the number of customer audits E 3.09 20 0.972 1.28
Table VII.
Benefits Note: * Indicates that the corresponding p-value is lower than 0.05
(motives – benefits)
Paired samples t-test
ISO 9000
Motives and
Table VIII.
483
benefits of
IJQRM Although the externally oriented pairs (8 and 9) had a non-significant t-value and
24,5 presented a negative mean difference, they seem to show the usefulness of the
certification (their mean value are significantly greater than four). The remaining pairs
5 and 7 are disregarded from this analysis as they showed non-significant mean
differences along with relatively low respective mean values.
Correlation analysis
Between each motive factor and benefit factor, a bi-variate Pearson correlation was
carried out and the results were reported in Table XI. Let us use 0.4 as a cut-off point
when considering the existence of a correlation between two factors. By examining
Table XI, the following cases emerge:
Motives and
Varimax rotated loading
Operational Following Human Supplier benefits of
Item name improvement competitors resources relationship ISO 9000
Improving productivity and/or
efficiency 0.816
Improving processes and 485
procedures 0.771
Improving product and/or service
quality 0.757
Reducing incidents, rejections and
complaints 0.689
Use it as a basis for internal costs
reduction 0.600
Requisite to compete in the sector 0.807
Our competitors are ISO 9001
certified 0.793
Use it as a promotional and/or
marketing tool 0.690
Competitive advantage 0.565
Improving communication within
the organization 0.772
Improving relationships between
employees and management 0.741
Maintaining and/or increasing
market share 0.565
Be role model to suppliers 0.616
Top management decision 0.576
A step towards total quality
management 0.576
Improving the organization’s public Table IX.
image 0.551 Rotated component
Eigenvalue 2.98 2.61 2.00 1.62 matrix for the motives
Cumulative variance explained (%) 18.68 35.05 47.6 57.76 items
.
The highest correlation coefficient is equal to 0.566 and shows that the motive
factor “following competitors” is significantly correlated with the benefit factor
“marketing”. Both factors have in common certain items like “promotion
effectiveness” and “competitive advantages”.
.
Similar to the above analysis, the motive factor “operational improvement” and
the benefit factor “profitability” have a significant moderate correlation (the
correlation coefficient is equal to 0.435). The above-mentioned factors have three
similar variables in common like: “improving productivity and/or efficiency”
which has a higher loading on the “operational improvement” factor, and
“improved productivity and/or efficiency” which has a higher loading on
“profitability” benefit factor (see Tables IX and X).
The remaining values of Table XI, although significant, do not lead to a particular
interpretation.
IJQRM
Varimax rotated loading
24,5 Human Product
Item name resources quality Marketing Suppliers
Benefits factors
Motives factors Profitability Human resources Product quality Marketing Suppliers
Discussion
Five out of the six most important reasons that motivated UAE firms in seeking ISO
9001: 2000 certification are associated with internal issues. So, the certification process
is believed to lead to a better quality in: processes, procedures and products. This result
highly corroborates with the studies of: Buttle (1997), Carlsson and Carlsson (1995),
Llopis and Tari (2003) and Poksinska et al. (2002). The remaining reason is related to
the improvement of the organization’s public image, an outcome found as well by:
Arauz and Suziki (2004), Escanciano et al. (2001), Huarng et al. (1999) and Llopis and
Tari (2003). In fact, acquiring a quality certificate through a third party accreditation
agency can be used by the certified firm as an objective evidence of the high standard Motives and
of its QMS. Therefore, caring about their public image does not necessarily mean that benefits of
the responding firms acquired the ISO 9000 certificate for just impressing their
stakeholders. ISO 9000
The top benefits perceived by the surveyed firms illustrate again the
internal-external duality. Similar results were observed in the studies of: Brown et al.
(1998), Buttle (1997), Chow-Chua et al. 2003), Escanciano et al. (2001), and Magd et al. 487
(2003). It seems that the UAE firms are satisfied with the ISO 9001: 2000 certification as
they have realized their expected benefits.
Comparing 19 motives and 20 benefits items is difficult due to their intrinsic
differences. For example the “top management decision” motive statement has no
counterpart in the benefits list. However, the relationship between the motives and
benefits items can be studied through a principal component analysis. Four motives
factors were determined and named as: “operational improvement”, “following
competitors”, “human resources improvement” and “supplier relationship”. Also five
benefits factors were determined and named as: “profitability”, “human resources”,
“product quality”, “marketing” and “suppliers”. We note that the motives and benefits
factors, determined in this study, are similar to the ones listed in the papers of: Arauz
and Suziki (2004); Buttle (1997); Huarng et al. (1999); Llopis and Tari (2003) and Singels
et al. (2001). After conducting the factorial analysis, we performed a correlation
analysis between the motives and benefits factors. We found that the external motive
factor “following the competitors” presented a significant moderate correlation with
the external benefit factor “marketing”. A similar result was also found between the
internal motive factor “operational improvement” and the external benefit factor
“profitability”.
The relationship between the motives and benefits was further investigated by
analyzing the mean differences between the expected-perceived pairs of motives and
benefits. The analysis revealed two results:
(1) A little “disappointment” was observed by the respondents relative to the
improvement of the internal operational aspects like: productivity or product
quality.
(2) A “satisfactory” performance was noticed by the firms relative to marketing
and public image issues.
In other words, the responding firms met some of their external goals and to a lesser
degree their internal ones. Although the internal goals have been met moderately, they
still represent an important achievement because they scored above four on a five-point
Likert scale. Besides, improving the efficiency of the firm or its product quality cannot
be based solely on ISO 9001: 2000 certification. It seems that the managers have
over-emphasized the outcomes of ISO 9000. This could explain why certain
discrepancies have emerged between certain expected and perceived benefits.
Conclusions
The state of implementation of ISO 9000 in different countries is reported in many
academic articles. However, relative to the Arab world, a paucity of research does exist.
In this paper, we have studied the motives and benefits of ISO 9001: 2000 certified
firms in the UAE through a large-scale questionnaire survey. In fact, the UAE has the
IJQRM highest number of certified firms among the Arab countries and their contact
24,5 addresses are readily available from different databases. Logically, studying the
motives and benefits will not only explain why the number of certifications in UAE is
high, but also can provide the non certified firms with useful information which can
lead them to join the ISO 9000 movement. The response rate is equal to 209 out of 900
contacted organizations. Different manufacturing and service firms have answered our
488 survey and most of them present a medium or small size. More than half of the
responding firms have moved from the ISO 9001/9002/9003: 1994 to the ISO 9001: 2000
version of the standard.
Our findings suggest that the certified firms have adopted the right approach when
seeking ISO 9000 certification because they have focused on the potential internal
benefits. As a consequence of that, the certified firms have improved their business
performances. The UAE present one of the most competitive economic environment in
the region, therefore the UAE firms are keen to implement a reliable quality
management system. The ISO 9000 certification can help them in achieving their
quality targets so this can justify the high number of certified firms in UAE. The link
between the motives and benefits was analyzed by performing different statistical
techniques and revealed a significant moderate correlation between motives and
benefits factors.
This research can be continued in the following two areas: First, the outcomes of
this empirical study can represent an important reference when investigating the
long-term benefits of ISO 9001: 2000 certification in UAE. A similar approach was
adopted by Terziovskiet al. (2003, 1999), who studied the effects of ISO 9000
certification on Australian companies. Second, it will be interesting to study the impact
of ISO 9001: 2000 certification on the financial performances of the certified UAE firms.
Finally the ISO 9001: 2000 certification is just the first step in the quality ladder.
Indeed, the UAE certified firms should continue their efforts relentlessly in order to
attain and sustain organizational excellence (Dale and Lascalles, 1997).
References Motives and
Arauz, R. and Suziki, H. (2004), “ISO 9000 performance in Japanese industries”, Total Quality benefits of
Management, Vol. 15 No. 1, pp. 3-33.
ISO 9000
Brown, A., van der Wiele, T. and Loughton, K. (1998), “Smaller enterprises’ experiences with ISO
9000”, International Journal of Quality & Reliability Management, Vol. 15 No. 3, pp. 273-85.
Bryde, D. and Slocock, B. (1998), “Quality management systems certification: a survey”,
International Journal of Quality & Reliability Management, Vol. 15 No. 5, pp. 467-80. 489
Buttle, F. (1997), “ISO 9000: marketing motivations and benefits”, International Journal of Quality
& Reliability Management, Vol. 14 No. 9, pp. 936-47.
Carlsson, M. and Carlsson, D. (1996), “Experiences of implementing ISO 9000 in Swedish
industry”, International Journal of Quality & Reliability Management, Vol. 13 No. 7,
pp. 36-47.
Chow-Chua, C., Goh, M. and Wan, T.B. (2003), “Does ISO 9000 certification improve business
performance?”, International Journal of Quality & Reliability Management, Vol. 20 No. 8,
pp. 936-53.
Dale, B.G. and Lascalles, D.M. (1997), “Total quality management adoption: revisiting the levels”,
The TQM Magazine, Vol. 9 No. 6, pp. 418-28.
Dick, G.P.M. (2000), “ISO 9000 certification benefits: reality or myths?”, The TQM Magazine,
Vol. 12 No. 6, pp. 365-71.
Ebrahimpour, M., Withers, B.E. and Hikmet, N. (1997), “Experiences of US and foreign-owned
firms: a new perspective on ISO 9000 implementation”, International Journal of Production
Research, Vol. 35 No. 2, pp. 569-76.
Escanciano, C., Fernández, E. and Vásquez, C. (2001), “Influence of ISO 9000 certification on the
progress of Spanish industry towards TQM”, International Journal of Quality & Reliability
Management, Vol. 18 No. 5, pp. 481-94.
Gotzamani, K.D. and Tsiotras, G.D. (2002), “The true motives behind ISO 9000 certification –
their effect on the overall certification benefits and long term contribution towards TQM”,
International Journal of Quality & Reliability Management, Vol. 19 No. 2, pp. 151-69.
Häversjö, T. (2000), “The financial effects of ISO 9000 registration for Danish companies”,
Managerial Auditing Journal, Vol. 15 Nos 1/2, pp. 47-52.
Huarng, F., Horng, C. and Chen, C. (1999), “A study of ISO 9000 process, motivation and
performance”, Total Quality Management, Vol. 10 No. 7, pp. 1009-25.
International Standards Organization (ISO) (2004), “The ISO survey – 2004”, available at: www.
iso.org/iso/en/prods-services/otherpubs/pdf/survey2004.pdf
Jones, R., Arndt, G. and Kustin, R. (1997), “ISO 9000 among Australian companies: impact of time
and reasons for seeking certification on perceptions of benefits received”, International
Journal of Quality & Reliability Management, Vol. 14 No. 7, pp. 650-60.
Krasachol, L., Willey, P.C.T. and Tannock, J.D.T. (1998), “The progress of quality management in
Thailand”, The TQM Magazine, Vol. 10 No. 1, pp. 40-4.
Lee, T.Y. (1998), “The development of ISO 9000 certification and the future of quality
management: a survey of certified firms in Hong Kong”, International Journal of Quality
& Reliability Management, Vol. 15 No. 2, pp. 162-77.
Llopis, J. and Tari, J.J. (2003), “The importance of internal aspects in quality improvement”,
International Journal of Quality & Reliability Management, Vol. 20 No. 3, pp. 304-24.
McLachlan, V.N. (1996), “In praise of ISO 9000”, The TQM Magazine, Vol. 8 No. 3, pp. 21-3.
IJQRM Magd, H. and Curry, A. (2003), “ISO 9000 and TQM: are they complementary or contradictory to
each other?”, TQM Magazine, Vol. 15 No. 4, pp. 244-56.
24,5
Magd, H., Kadasah, N. and Curry, A. (2003), “ISO 9000 implementation: a study of manufacturing
companies in Saudi Arabia”, Managerial Auditing Journal, Vol. 18 No. 4, pp. 313-22.
Malhotra, N. (2004), Marketing Research, Pearson Education, Englewood Cliffs, NJ.
Mezher, T. (2000), “The transformation of Lebanese firms from ISO 9000 certified to TQM”,
490 Quality Assurance, Vol. 8 No. 1, pp. 37-56.
Mezher, T. and Ramadan, H. (1999), “The costs and benefits of getting the ISO 9000 certification
in the manufacturing sector in Saudi Arabia”, Quality Assurance, Vol. 6 No. 2, pp. 107-22.
Poksinska, B., Dahlgaard, J.J. and Antoni, M. (2002), “The state of ISO 9000 certification: a study
of Swedish organizations”, The TQM Magazine, Vol. 14 No. 5, pp. 297-306.
Quazi, H.A. and Padibjo, S.R. (1998), “A journey toward total quality management through ISO
9000 certification – a study on small- and medium-sized enterprises in Singapore”,
International Journal of Quality & Reliability Management, Vol. 15 No. 5, pp. 489-508.
Santos, L. and Escanciano, C. (2002), “Benefits of the ISO 9000:1994 system: some considerations
to reinforce competitive advantage”, International Journal of Quality & Reliability
Management, Vol. 19 No. 3, pp. 321-44.
Singels, J., Ruël, G. and van de Water, H. (2001), “ISO 9000 series certification and performance”,
International Journal of Quality & Reliability Management, Vol. 18 No. 1, pp. 62-75.
Stevenson, T.H. and Barnes, F.C. (2001), “Fourteen years of ISO 9000: impact, criticisms, costs,
and benefits”, Business Horizons, May-June, pp. 45-51.
Sun, H. (1999), “The patterns of implementing TQM versus ISO 9000 at the beginning of the
1990s”, International Journal of Quality & Reliability Management, Vol. 16 No. 3, pp. 201-14.
Terziovski, M., Power, D. and Sohal, A.S. (2003), “The longitudinal effects of the ISO 9000
certification process on business performance”, European Journal of Operational Research,
Vol. 146 No. 3, pp. 580-95.
Terziovski, M., Sohal, A. and Moss, S. (1999), “Longitudinal analysis of quality management
practices in Australian organizations”, Total Quality Management, Vol. 10 No. 6,
pp. 915-26.
Tsekouras, K., Dimara, E. and Skuras, D. (2002), “Adoption of a quality assurance scheme and its
effect on firm performance: a study of Greek firms implementing ISO 9000”, Total Quality
Management, Vol. 13 No. 6, pp. 827-41.
Tsiotras, G. and Gotzamani, K. (1996), “ISO 9000 as an entry key to TQM: the case of Greek
industry”, International Journal of Quality & Reliability Management, Vol. 13 No. 4,
pp. 64-76.
van der Wiele, T., van Iwaarden, J., Williams, R. and Dale, B. (2005), “Perceptions about the ISO
9000 (2000) quality system standard revision and its value: the Dutch experience”,
International Journal of Quality & Reliability Management, Vol. 22 No. 2, pp. 101-19.
Vloeberghs, D. and Bellens, J. (1996), “Implementing the ISO 9000 standards in Belgium”, Quality
Progress, Vol. 29 No. 6, June, pp. 43-8.
Wayhan, V.B., Kirche, E.T. and Khumawala, B.M. (2002), “ISO 9000 certification: the financial
performance implications”, Total Quality Management, Vol. 13 No. 2, pp. 217-31.
Yahya, S. and Goh, W-K. (2001), “The implementation of an ISO 9000 quality system”,
International Journal of Quality & Reliability Management, Vol. 18 No. 9, pp. 941-66.
Further reading Motives and
Casadesús, M. and Giménez, G. (2000), “The benefits of implementation of the ISO 9000 standard: benefits of
empirical research in 288 Spanish companies”, The TQM Magazine, Vol. 12 No. 6,
pp. 432-41. ISO 9000
Conti, T. (2000), “Vision 2000: positioning the new ISO 9000 with respect to total quality
management models”, Total Quality Management, Vol. 10 Nos. 4 and 5, pp. S454-64.
Withers, B. and Ebrahimpour, M. (1996), “An examination of ISO 9000 registration practices of 491
American, German and Japanese firms operating in the USA”, International Journal of
Quality & Reliability Management, Vol. 13 No. 7, pp. 8-22.