Performance of an Organization after Implementing ISO 9000

Performance of an Organization
after Implementing ISO 9000

Introduction

The ISO 9000 is used to standardize the quality
management systems and it has been commonly
used across all parts of the world since 1987

More than 1,129,000 facilities in 189 countries
have implemented ISO 9000 by the end of 2013

Both academics and practitioners are interest in
understanding the determinants of adoption of
ISO 9000, and the impact of the adoption of ISO
9000 on firm financial performance

ISO Certification

92% of the
company is not
certified with ISO
9000 and only 8%
of the company
got ISO 9000
certification

Industry Type

About 47.6% of the
companies taken into
consideration are
related with Business
Services and 21% of
the companies taken
into consideration are
related with
specialized with
technology services

Foreign Direct Investment

97% of the
company said that
they did not
involve in any FDI
and only 3% of the
company said that
they had involved
in FDI

Research Hypothesis 1

In order to determine whether there exists any
significant relationship between age of the company and
ISO certification, we perform independent sample t test.

The value of t test statistic is – 6.624 and its
corresponding p – value is 0.000 < 0.05

The mean age of the company that got ISO certification
is 10.28 ± 9.144

The mean age of the company that didn’t get ISO
certification is 7.39 ± 6.815

On comparing the mean values, we see that the older
companies are keen in getting the ISO certification when
compared to that of less experienced companies

Research Hypothesis 2

In order to determine whether there exists any
relationship between profit operating over the
industry categories, we perform one way ANOVA.

The value of F test statistic is 9.354 and its
corresponding p – value is 0.000 < 0.05

Going through the mean plot, we see that the mean
profit operating is high for Tele communication
based company followed by software based
company

While other company’s record moderate profits
among them

Mean Plot

Research Hypothesis 3

In order to determine whether there exists any relationship
between revenue and foreign direct investment, we perform
independent sample t test

The value of t test statistic is – 4.071 and its corresponding p –
value is 0.000 < 0.05

The mean revenue of the company with FDI is 31044.36 ±
63819.72

The mean revenue of the company that didn’t get FDI is
11102.08 ± 31260.73

On comparing the mean values, we see that the companies
with FDI are getting higher sales when compared with the
companies that are running without FDI

Conclusion

About 92% of the company is not certified with ISO
9000

Only 8% of the company got ISO 9000 certification

About 47.6% of the companies taken into
consideration are related with Business Services

21% of the companies taken into consideration are
related with specialized with technology services

About 97% of the company said that they did not
involve in any FDI

Only 3% of the company said that they had involved in
FDI

Conclusion

The older companies are keen in getting the
ISO certification when compared to that of
less experienced companies

The mean profit operating is high for Tele
communication based company followed by
software based company

The companies with FDI are getting higher
sales when compared with the companies that
are running without FDI