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International Journal of Quality & Reliability Management

The effect of the ISO 9001 quality management system on the performance of SMEs
Mehmet S#tk# #lkay Emre Aslan
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Mehmet S#tk# #lkay Emre Aslan, (2012),"The effect of the ISO 9001 quality management system on the
performance of SMEs", International Journal of Quality & Reliability Management, Vol. 29 Iss 7 pp. 753 -
778
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Quality
The effect of the ISO 9001 quality management
management system on the system
performance of SMEs
753
Mehmet Sıtkı İlkay
Department of Business Administration, Erciyes University, Received 22 December 2010
Kayseri, Turkey, and Revised 28 March 2011
Accepted 27 September 2011
Emre Aslan
Department of Business Administration, Gaziosmanpaşa University,
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Tokat, Turkey

Abstract
Purpose – The purpose of this study is to examine whether there is a difference between ISO 9001
certified and non-certified companies in terms of performance.
Design/methodology/approach – In order to determine the effect of certification on performance,
motivations for certification and companies’ quality practices have been considered as factors. A survey
was carried out with 255 small to medium-sized enterprises (SMEs) in Turkey. The differences between
certified and non-certified companies in terms of performance and quality practices were examined by
one-way analysis of variance (one-way ANOVA).
Findings – The results showed no statistically significant difference between certified and
non-certified companies in terms of performance. Certification showed no direct effect on
performance. Also it has been claimed that the quality practices of certified companies was higher
than those of non-certified companies, according to results it is showing a statistically significant
difference, in the 0.01 level of significance. However, higher quality practice does not necessarily mean
higher performance. Motivations for certification also affect performance; it was found that companies
that are internally motivated for certification have partially higher performance than companies
externally motivated.
Originality/value – To the authors’ knowledge, this is the first study examining the effect of the ISO
9001 quality management system on the performance of SMEs in Turkey.
Keywords ISO 9000, Quality management system, Quality management, Performance,
Performance management, SME, Small to medium-sized enterprises, Turkey
Paper type Research paper

1. Introduction
Ensuring quality does not only mean producing a product in a standardized manner; it
also requires continuously meeting expectations in changing conditions. Thus, quality
must be considered in a systematic way and quality of the system should be emphasized
rather than quality of the product. When a system is implemented that depends on
processes that provide good quality goods and services and that continuously improves
under changing conditions the output of the system also results in improved consistent
quality. International Journal of Quality
The most widely used method for implementing a system of this kind is the ISO & Reliability Management
Vol. 29 No. 7, 2012
9000 quality management systems standards. This standard proposes practices pp. 753-778
for companies to meet customer and legal requirements in a systematic way. It is q Emerald Group Publishing Limited
0265-671X
important to ensure a continuous and standardized approach to the concept quality. DOI 10.1108/02656711211258517
IJQRM ISO 9000 is a quality management system standard used by many organizations
29,7 worldwide, whether they are manufacturing or service, private or public. It is preferred
by many institutions whose objective is to implement, manage and improve their
operations regularly in accordance with customers’ needs and expectations. The aim of
this standard is to ensure the quality of systems in which goods and services are
produced.
754 ISO 9000 standards provide an institution with well-documented procedures to
follow in providing goods and services. These procedures define how the tasks should be
done, in this way guaranteeing goods and services that meet customer requirements
(Singels et al., 2001, p. 63). They do not guarantee product quality, but they only ensure
that a company has a set of procedures for quality management (Wayhan et al., 2002,
p. 217). They encourage product quality but cannot ensure it alone (Terziovski et al.,
1997, p. 1). Certification only means that an independent auditor certifies that a quality
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system has been implemented in accordance with general norms (Martinez-Costa and
Martinez-Lorente, 2003, p. 1179).
ISO 9000 documents the processes in a system and checks if they meet the guidelines
or not (Stevenson and Barnes, 2001, p. 46). The basic principles behind ISO 9000 are
formally defining customer requirements, making plans to meet them, checking if they
have been met or not, and taking action if abnormalities are determined (Schenkel, 2004,
pp. 1155-68).
The ISO 9000 standard is the most well-known and widely used quality management
system. Although it has different names in different countries, it has become the
international language for quality. Some American military (MIL-Q-9859) and NATO
(AQAP-1) standards are the origins for ISO 9000 (Gustafsson et al., 2001, p. 232). The
British Standards Institute’s BS 5750, the first commercial quality management
standard, was transformed with a few changes to the ISO 9000 international standard in
1987. This international standard was revised in 1994, but it was a minor revision. ISO
9000:2000 was published in December 2000, and it was a comprehensive revision
(Boulter and Bendell, 2002, p. 37).
ISO 9000 is the generic name for quality management standards. According to the
1994 version of the ISO 9000 family of standards, companies were to be certified with
ISO 9001, 9002 or 9003. However, in 2000 version, companies can only be certified
under ISO 9001 (Quazi and Jacobs, 2004, p. 515).
As a management standard, ISO 9000 proposes a general model that provides
companies with the means to implement and maintain a quality system. Being generic,
ISO 9000 can be implemented in any kind of institution regardless of its size, product or
sector. So small companies can implement it as well (Briscoe et al., 2005, p. 310).
Researchers, dealing with the effects of ISO 9000 on companies mention the lack of
studies in this field on SMEs and suggest research should be done on these kinds of
companies considering their importance in economies (Briscoe et al., 2005, p. 309;
Sharma, 2005, p. 170).
In the last decade the number of ISO 9000 certified companies has proliferated. The
increasing number of certified SMEs is the reason for this study. This study concerns
whether performance of the SMEs improved as a result of certification.
While SMEs constitute 96-99 percent of all businesses in Turkey and worldwide,
Turkey is behind the world in its share of SMEs in areas of employment, investment
and export (Akgemci, 2001, p. 17). Financial resources are the biggest obstacle
to SMEs certification. Unlike big companies, SMEs money and resources are very Quality
limited to help them during the certification period (Karapetrovic et al., 1997, p. 31).
This limitation causes SMEs to fall behind in applying quality improvement activities
management
(Gustafsson et al., 2001, p. 234). Depending on existing quality practices, small and even system
medium sized companies struggle to allocate resources during the one to two year-long
certification period (Puderbach and Brown, 1998, p. 1696). Therefore, SMEs need to
perform a cost-benefit analysis before applying for certification. 755
In this study, a survey was conducted asking 255 certified, seeking certification and
non-certified SMEs to determine the effect an ISO 9001 certificate had on business
performance. Previous studies on the effects of ISO 9001 and similar quality systems are
summarized in Section 2 of the study. In Section 3, performance measurement systems
are mentioned, the relation between ISO 9001, performance and factors effecting this
relation are examined. In Section 4 the method used in the study is described, and in
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Section 5, the results of the data analysis and hypothesis tests are discussed.

2. Literature
Many studies are available in the literature about certification’s benefits to companies
and its effects on performance. However, there is no consensus among them. While
some claim that certification has benefits and increases performance, others claim that
it has no benefits or effect on performance. A few conclude that it has a very limited
effect on performance.
Some studies in the literature are case studies which consider the quality management
practices of a single company (Barak et al., 2003; Staines, 2000; Elmuti and Kathawala,
1997). Although case studies are ideal for success stories, they do not actually prove that
quality certification improves performance. They only show it is possible (Heras et al.,
2002a, p. 72). Some research on the benefits of certification involving more than one
company asked what the direct benefits were. These studies were also defective because
they covered only certified companies did not compare them with non-certified companies
and did not ask about the benefits directly (Skrabec et al., 1997; Ofori and Gang, 2001;
Casadesus and Gimenez, 2000; Mezher and Ramadan, 1999; Withers and Ebrahimpour,
2001; Dissanayaka et al., 2001; McAdam and McKeown, 1999).
Another group of studies related to this subject tried to establish a cause-effect
relationship by asking questions about performance. These studies compared certified
and non-certified companies or before and after certification. In addition to studies
which analyze the relationship between ISO 9001 certification and performance, other
studies analyzing the relationship between TQM, quality practices and performance
also exist. These casual studies can be grouped under three classes according to their
results: certification has:
(1) a positive effect;
(2) a limited effect; or
(3) no effects on performance.

Some studies found certification had a positive effect on performance: in a study on


106 SMEs (Koc, 2007) certified companies were found to be better than non-certified in
terms of performance, manufacturing and competition parameters. Adherence to
ISO 9000 practices was claimed to improve SMEs’ performance (Bayati and Taghavi,
2007). Certification was said to affect performance positively (Gotzamani et al., 2007).
IJQRM The result of a study on manufacturing companies’ quality practices found certification
29,7 had positive effects on overall business performance (Eroglu, 2004). A study
of 146 companies’ stated that certified companies showed higher performance than
non-certified companies (Chow-Chua et al., 2003). In a study examining ISO 9000 and
TQM’s effect on performance, Sun determined that ISO certified companies exhibited
better performance in terms of defective products, customer complaints, profitability
756 and productivity. However, they showed limited effects on their position in the market
and competitiveness. In addition they showed no effect on employee satisfaction and
environmental protection (Sun, 2000). Another study found a significant difference
between ISO 9000 certified and non-certified companies (Ismail et al., 1998).
In some studies, ISO 9000 certification was also found to affect performance
positively. However, these studies used financial ratios or stock values to measure
performance. Sharma (2005) stated that there was a relationship between certification
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and improvement in financial performance. In a study about effects of certification on


financial performance, certified companies were determined to have better performance
than non-certified (Naser et al., 2004). Another study on certification’s effect on financial
performance analysed the stock value and financial ratios of a limited number of
companies. The stock exchange is said to react positively to certification. Financial
ratios seem to decrease in the year after certification, but after that, an increase in the
ratios has been observed. This is due to the high cost of certification. However, in the
long run, benefits exceed cost (Beirao and Cabral, 2002). Nicolau and Sellers (2002)
examined the reaction of the stock exchange to certification and found a positive reaction
in spite of abnormal movements having been observed on the day when certification was
announced to the stock exchange. Another study examining certification’s effect on
companies’ financial indicators found that, while certified companies’ rates of return
were 20 percent higher than non-certified one year before certification, it was 35 percent
two years after certification. This meant that certified companies increased their
financial performance compared to their own pre-certification and to that of other
non-certified companies (Haversjö, 2000). In a study examining the effect of certification
on companies’ stock values, it was found that the market reacts positively to the
certification of small companies, but not to certification of bigger companies. Two
reasons are suggested. First, investors do not attach much importance to certification of
big companies because they think big and well-known companies do not need to have an
external quality indicator. However, they perceive that small companies show their
commitment to long-term quality standards by seeking certification. Second, investors
think that the benefits and cost of certification for big companies are about the same, but
for small companies, the benefits will exceed costs in the long-term (Docking and Dowen,
1999). In a study examining the effect of certification on revenues and net income in
America, companies’ performance both before and after certification showed the
increase in revenue and net income was above average after certification was received as
compared to before certification (Puderbach and Brown, 1998).
Other studies found that ISO 9000 had a very limited effect of ISO 9000 on
performance. According to the model in one study, ISO 9000 installation was positively
related with ISO 9000 practices, practice was positively related to operating performance
and operating performance was positively related to overall performance. As a result it
was found that the implementation of ISO 9000 improved operating performance.
However, it was emphasized that this does not necessarily lead to better performance
(Naveh and Marcus, 2005). Wayhan et al. (2002) found ISO 9000 to have no effect on sales, Quality
equity and gross margin, and a very limited effect on return on assets. In another study management
between certified and non-certified companies a significant difference was found only in
terms of cash flow among 13 performance criteria (Terziovski et al., 1997). system
Some studies found certification had no effect on performance. In a study of
30 companies in Spain, fluctuations in stock values were analyzed from three days
before untill three days after the announcement of certification. However, no satisfactory 757
proof was found about the market’s positive reaction to certification (Martinez-Costa and
Martinez-Lorente, 2003). Another study found that ISO 9000 had no effect on
performance in terms of financial criteria (Tsekouras et al., 2002). From a financial
perspective, a study examining the effects of certification on companies’ stock value,
fluctuations in stock values were analyzed from two weeks before till two weeks after the
announcement of certification. However, any reaction to certification in the market was
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determined. According to Aarts and Vos (2001), stock market does not value the
certification result, but it values the certification process. In another study comparing
financial performance of certified companies with non-certified, Lima et al. (2000) did not
observe different performance levels between the two groups.
A study of 500 companies in four different countries (USA, Mexico, India, China)
found a significant difference between certified and non-certified companies in terms of
quality management practices and quality results (Rao et al., 1997). However, a study
in Singapore contradicts Rao et al. and found no difference between certified and
non-certified companies (Quazi et al., 2002). In a study where no difference was found
between certified and non-certified companies, it was stated that certification alone
cannot be a reason for performance improvement, and that motivation for certification
were significantly related with performance (Singels et al., 2001).
Only one research was found about the negative effects of ISO 9000 certification. In this
long-term study, the performance of companies was compared from three years before to
three years after certification. A loss in performance was determined rather than an
improvement. Also when certified and non-certified companies have been compared in the
same study, the performance of the certified companies was found to be worse than the
non-certified companies. Finally, it was found that, while certified companies showed
better performance than non-certified companies before certification, after certification
they fell behind the non-certified companies (Martinez-Costa and Martinez-Lorente, 2007).

3. ISO 9000 and performance


3.1 Performance
Companies use performance measures for evaluating, controlling and improving their
processes, as they move toward realizing their goals and targets (Ghalayini and Noble,
1996, p. 63). A performance measurement system is a set of performance measures that
provides useful information to help managing, controlling, planning and realizing the
company’s operations. Information gathered from a performance measurement system
must be complete, relevant, timely and easily accessible by users. Moreover, these
measures must be designated so that they reflect the important factors affecting the
productivity of different processes (Tangen, 2005, p. 46). A performance measurement
system motivates the improvement process itself, besides bringing a quantitative
view to effects of quality improvement processes to the company (Najmi and Kehoe,
2001, p. 170).
IJQRM Criteria used to measure performance, can be divided into financial and non-financial.
29,7 While financial measures are used in some research (Sharma, 2005; Naser et al., 2004;
Heras et al., 2002a; Beirao and Cabral, 2002; Wayhan et al., 2002; Tsekouras et al., 2002;
Lima et al., 2000), in some only non-financial measures (Samson and Terziovski,
1999; Elmuti and Kathawala, 1997) and in some both financial and non-financial
measures (Naveh and Marcus, 2005; Yeung et al., 2003; Rahman, 2001; Singels et al.,
758 2001; Zhang, 2000; Terziovski et al., 1997; Mann and Kehoe, 1994) were used.
Performance measurement systems which rely on traditional financial data cannot
provide the required information for a company to remain competitive in today’s
environment. Financial indicators, shows how a company has performed in the past
(Najmi and Kehoe, 2001, p. 162). Although financial indicators have the advantage of
being certain and objective, they suffer from the fact that they are lagging indicators,
and they disregard less concrete factors like product/service quality, customer
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satisfaction, employee morale (Parker, 2000, p. 63).


As non-financial criteria like product quality, defects, customer satisfaction are
obtained by people working for the company, they are subjective (Sharma, 2005, p. 152).
At this point a problem occurs; financial measures are objective but insufficient, and
non-financial measures are sufficient but subjective.
It is not surprising that companies hesitate to give information about profitability,
return on investment, etc. To avoid this problem, an indirect approach needs to be used
during data collection. Instead of asking for specific numbers about a company’s
objective measures, questions such as “how good?” is the company in terms of
profitability, profit margins, etc. should be asked (Lopez et al., 2005, p. 153).
Therefore, managers and employees of these companies also need to be asked about
their (SMEs) objectives. Because it is difficult to get answers by asking directly, questions
should be asked indirectly. Consequently, the only alternative is to use a subjective
approach in matters concerning companies’ financial and non-financial measures.
In some studies that measure business performance by financial criteria, it is
recommended that performance should also be measured using non-financial criteria
as efficiency, productivity, market share, etc. (Lima et al., 2000, p. 147; Wayhan et al.,
2002, p. 229).
In order to compare companies, criteria used in performance measurement should
be as general as possible, appropriate for different sectors and not too detailed.
Moreover, detailed criteria may be unsuitable in research on SMEs from different
sectors. Not all companies may use such criteria, as they may be inappropriate to a
particular sector. Therefore, general, appropriate criteria must be used.
In this study, financial and non-financial criteria were used simultaneously to
measure performance. The Balanced Scorecard method (Kaplan and Norton, 1992) was
preferred as a framework to determining criteria. Balanced Scorecard method includes
financial measures, which give the results of previous performance and act as a
complement to operational measures regarding customer satisfaction, internal
processes and innovation and learning activities which are predictors of future
financial performance (Kaplan and Norton, 1992, p. 71).
The Balanced Scorecard answers four basic questions (Kaplan and Norton, 1992,
p. 72):
(1) How do customers see us? (customer perspective).
(2) What must we excel at? (internal perspective).
(3) Can we continue to improve and create value? (innovation and learning Quality
perspective). management
(4) How do we look to shareholders? (financial perspective). system
The Balanced Scorecard should be taken as a template, and new perspectives and criteria
must be added or discarded as necessary. “Balanced” means viewing performance from
different dimensions and perspectives. 759
3.2 ISO 9000 – performance relationship
In the literature there is no consensus on the relationship of ISO 9000 and performance.
While some claim that certification has benefits and increases performance, others
claim that it has no benefit and does no affect performance. Is ISO 9000 really
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worthless or is that an impression from malpractices or overly high expectations?


In order to derive benefit from ISO 9000, companies should consider the standard
not as a temporary solution but as a long-term investment which requires involvement
and continuous effort (McAdam and McKeown, 1999, p. 232). Certification is costly,
time-consuming and demanding in the short-term. A long-term view is required in
order to benefit from it (Stevenson and Barnes, 2001, p. 50).
Problems in presenting and implementing the standard (Conti, 2004, p. 666), and
short-term expectations (Tsekouras et al., 2002, p. 838) result in ISO 9000 not affecting
performance or the effect is misunderstood. Obtaining certification, but not fulfilling its
requirements will certainly not result in any benefit to the company. Moreover, after
getting and applying the certification, improvement should not be expected in financial
indicators in the short-term. These unrealistic expectations create the impression that
certification is worthless.
The benefits to be gathered from certification are fully related to how a company
wants to use it. If its aim is only to get a certificate and to enhance its image,
documentation and procedures will harm daily business processes and will not
contribute to improved performance (Sun, 2000, p. 177). Efforts to achieve ISO 9000
generally deviate from the real aim, and organizations miss the relationship between
ISO 9000 and total quality. In this situation efforts for certification are transformed into a
bureaucratic exercise. Not the standard itself but its initials are sought and its real aim
and benefits disappear (Tague, 1994, p. 24).
How can a “standard” which is the same for all companies give them competitive
advantage. If significant differences in practice are not considered, companies
become stereotyped. Differences in practice allow one company to benefit more than
another, so a standard aiming to make companies similar may result in differentiation
which provides a basis for competitive advantage (Naveh and Marcus, 2005, p. 24).
The quality system of a company is affected by its objectives, product, service, and
applications unique to it, and so one quality system differs from another
(Terziovski et al., 2003).
While fulfilling the requirements of ISO 9000 certification, companies need to derive
maximum benefit from the application to gain a competitive advantage. In this context a
standard is just an instrument, and every organization must set up its own strategy
(Ofori and Gang, 2001, p. 150). A company must combine ISO 9000 with total quality
philosophy, human resources and strategic management (Sun, 2000, p. 177). ISO 9000
is a valuable instrument for companies trying to develop a quality system.
IJQRM The real value of the certificate will be obtained when it becomes consistent with
29,7 companies’ strategic direction (Curkovic and Pagell, 1999, p. 65).
A quality management system increasingly focused on quality results in more time
to produce acceptable products, less time spent on rework, scrap and waste. These
improvements lower cost and increase sales depending on improved product quality,
on-time delivery and fewer customer complaints. All these quality benefits do not
760 happen automatically but, having quality certification is expected to increase the sales
opportunity, volume and profitability, so ISO 9000 certified companies are expected to
perform better (Heras et al., 2002b, p. 776; Naveh and Marcus, 2005, p. 11).
Generally a cause-effect relationship like the one described above exists between ISO
9000 and performance. This means that an ISO 9000 quality management system will
increase performance, so certified companies will perform better than non-certified.
However, the opposite must be considered as well whether high performing companies
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actually follow ISO 9000 certification guidelines.


Research on 400 certified and 400 non-certified companies found certified companies
performed better that non-certified in financial (sales growth and profitability) terms.
However, when the performance of certified companies was compared before and after
certification a difference was not observed. The performance of certified companies
before certification was also higher than non-certified (Heras et al., 2002b, p. 788). In this
case instead of claiming “ISO 9000 increases company performance” one must consider
if high performing companies tend to be certified in any case. In this research certified
companies were found to have higher performance than non-certified, and considering
that this was also before certification, one can conclude that high performing companies
achieved certification, but that certified companies did not have higher performance.
Here it must be noted that a number of studies have found no difference between certified
and non-certified companies. Moreover, in a framework of this kind of reverse
cause-effect relationship, it is hard to explain studies which find a difference between the
performance of companies before and after certification.
The explanatory power of a direct cause-effect relationship between ISO 9001 and
performance is weak. Even though certification is assumed to improve performance,
the cause of improvement is not certification itself but improved quality practices and
processes resulting from certification. Therefore, factors affecting the relationship
between ISO 9001 and performance must be considered when constructing a model.
ISO 9001 certification alone cannot improve performance. While analyzing
performance differences between companies, factors other than certification must also
be considered. Factors like reasons for certification and motivation for certification
may affect performance. A quality culture and practice is another factor. Consultancy
service during the certification period, senior management’s support and attitude,
employees’ attitude, company size, time since certification, expectations before
certification, strategic orientation of the company, etc. are other factors which affect the
certification-performance relationship (Buttle, 1997, p. 943; Terziovski et al., 2003,
p. 592; Dimara et al., 2004, p. 85; Naveh et al., 2004, p. 1843; Sharma, 2005, p. 167).
Taking all factors into consideration in one study is not possible. In this study,
motivations for certification and quality practices are considered as factors affecting
the relationship.
3.2.1 Motivation for certification. Most companies claim that their motivations for
certification are improving quality, satisfying customers, etc. However, these are not
usually the “real” motivators. External pressures, certified competitors, advertising Quality
needs are the real motivators behind most certification applications (Gotzamani and management
Tsiotras, 2002, p. 151).
The benefits of ISO 9000 can be classified into two groups: internal and external. system
Internal benefits such as an increase in productivity, improved efficiency, reduction in
cost and waste, better management control, clearly defined tasks and responsibilities
and an increase in employee motivation are related to the internal functions of the 761
organization. External benefits such as competitive advantage, increase in sales and
market share, opportunity for new markets, new customers, increasing customer
satisfaction, improvement in companies’ reliability and image are related to the
environment of the organization (Singels et al., 2001, p. 63). In this context, motivations
for certification can be similarly grouped as internal and external.
In some studies examining the relationship between certificate and performance,
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motivations for certification have been considered as a factor. In all these studies it is
claimed that internally motivated companies have higher performance than externally
motivated companies (Park et al., 2007, p. 42; Brown et al., 1998, p. 284; Withers and
Ebrahimpour, 2000, p. 440; Huarng et al., 1999, p. 1009; Terziovski et al., 2003, p. 594;
Martinez-Costa and Martinez-Lorente, 2003, p. 1181; Gotzamani and Tsiotras, 2002,
p. 166; Leung et al., 1999, p. 675; Atherton and Austin, 1996, p. 25; Escanciano et al.,
2001, p. 492; Jones et al., 1997, p. 658).
If ISO 9000 certification is only in response to external customer pressure, it is hard to
perceive what benefits the company would receive from the quality system (Brown et al.,
1998, p. 284). Companies motivated for certification by customer pressure are found to
benefit less (Leung et al., 1999, p. 675). Companies gain benefits of increased performance
when they aim to show their customers more than a paper (Martinez-Costa and
Martinez-Lorente, 2003, p. 1181). Furthermore, externally motivated companies may not
be interested in improving quality and processes which are the real purposes of the
certificate. However, internally motivated companies are already interested in the
continuous improvement of quality so they can perceive benefits more easily
(Escanciano et al., 2001, p. 492).
3.2.2 Quality practices. The key point in the relationship between ISO 9001 and
company performance is quality practices. It is not certification itself, which will
improve performance; it is the improved quality practices resulting from certification.
ISO 9000 standard is actually aimed at improving quality practices and business
processes. Although motivations for certification affect certification usage and so,
inturn quality practices, it is expected that ISO 9001 certification will affect companies’
quality practices and as a result, performance.
In studies examining the effects of ISO 9001 certification on companies’ quality
practices, the quality practices of certified companies were found to be higher than
those of non-certified companies (Rao et al., 1997, p. 342; Gupta, 2000, p. 451). The
opposite is also possible. In a study between certified and non-certified companies no
difference was found in terms of six critical factors of TQM (Rahman, 2001, p. 38).
The internal improvement that ISO 9000 provides to companies requires all business
activities to be in a continuous plan, control and documentation cycle. This cycle,
maintains regular calibration of measuring and test equipment, prevents the delivery of
nonconforming products and decreases the number of rejected products (Wilson et al.,
2003, p. 3). Product quality which is better than competitors, better process control,
IJQRM efficient quality management which improves with quality control will decrease defects
29,7 and reworks, reduce costs, depending on these sales and competitive advantage will
increase. All these factors result in better performance (Heras et al., 2002b, p. 776).

4. Methodology
This study was performed with a sample of 255 Turkish SMEs in order to analyze the effect
762 of the ISO 9001 Quality Management System on SMEs’ organizational performance. In this
study, first the differences in performance between the companies with and without ISO
9001 certification were examined. Then, the quality practices that affect certification and
the business performance relationship and motivation for having ISO 9001 certification
were investigated. Data obtained from questionnaires was analyzed using SPSS 10.0 for
Windows Statistical Package Program. In hypothesis tests, a one-way ANOVA was used to
determine the differences between the SMEs’ level of quality applications and performance.
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4.1 Sample
The sampling space of the research was all SMEs in Turkey. In this study, the SME
Information Network (KOBINET) database was used for selecting samples. The
KOBINET database contains more than 21,404 SME records. 1,000 SMEs were selected
from the database because of the difficulty of obtaining responses from SMEs.
An e-mail was sent to 892 SMEs. We were unable to communicate with 117 SMEs
owing to e-mail address errors. 255 usable questionnaires were received representing a
response rate of 32.9 percent.
The sectoral distribution of companies answering the survey is shown in Table I.
Companies working in the field of machinery equipment came in first place with
17.6, 11.8 percent with the metal industry/metal work sector followed. Services sector
included the media, advertising, architecture projects, transportation, IT, computer,
software and internet. Others included industrial ventilation, industrial refrigeration,
mining, medical devices, energy and rubber.
The size of responding companies by number of employees is shown in Table II.
40.8 percent of the companies employed fewer than ten employees, 33.3 percent of the
companies employed between ten and 49 employees, and 25.9 percent of the companies
employed more than 50 employees.

n ¼ 255
f %

Food 22 8.6
Metal industry/metal works 30 11.8
Machinery, equipment 45 17.6
Textiles 22 8.6
Electricity, electronics 24 9.4
Construction, structure and products 23 9.0
Chemical/oil 13 5.1
Plastic, paper, packaging 14 5.5
Automotive and automotive supply industry 21 8.2
Table I. Furniture, wood work, wood products 18 7.1
Sectoral distribution Services 15 5.9
of companies Other 8 3.1
As seen in Table III, 43.5 percent of companies who answered the survey were ISO 9001 Quality
certified, 42.7 percent of the companies were not ISO 9001 certified and 13.7 percent of the management
companies were at the application stage of the ISO 9001 Quality Management System.
The percentages of the ISO 9001 certified and ISO 9001 non-certified companies answer system
the questionnaire were very close to each other.

4.2 Data collection 763


The survey method was used to collect data. Surveys were sent over the internet. The
survey consisted of three sections. In the first section, 24 questions were asked to
measure the companies’ level of quality applications. In the second section 20 questions
were asked to measure the companies’ performance. In the third and last section ten
questions were asked mainly about company information. In answers to the first and
second sections, a five-point Likert scale (definitely disagree, disagree, undecided,
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agree, absolutely agree) was used.


The statements in the first section of the survey were collected from studies in
literature (Anderson and Sohal, 1999, p. 869; Badri et al., 1995, p. 53; Jeng, 1998, p. 136;
Lee et al., 1999, p. 91; Sila and Ebrahimpour, 2005, p. 1148; Yeung et al., 2003, p. 562)
and the ISO 9001 standard items application checklist.
In this study, we chose the Balanced Scorecard as the performance measurement system
framework. The quad perspective of this method was taken as a template. Common criteria
would apply to different sectors were collected from different studies in the literature in line
with this perspective (Augustyn and Pheby, 2000, p. 383; Mann and Kehoe, 1994, p. 33;
Najmi and Kehoe, 2001, p. 166; Naveh and Marcus, 2005, p. 11; Sila and Ebrahimpour, 2005,
p. 1153; Singels et al., 2001, p. 66, Sun, 2000, p. 172; Terziovski and Samson, 2000, p. 147;
Terziovski et al., 1997, p. 14; Yeung et al., 2003, p. 565; Zhang, 2000, p. 135).

4.3 Hypotheses
H0. There is no difference between the performances of ISO 9001 certified and
non-certified companies.
Ha. There is a difference between the performances of ISO 9001 certified and
non-certified companies.

n ¼ 255
f %
Table II.
1-9 employees 104 40.8 Size of responding
10-49 employees 85 33.3 companies by number
50-249 employees 66 25.9 of employees

n ¼ 255
f %

ISO 9001 certified 111 43.5 Table III.


Not ISO 9001 certified 109 42.7 ISO 9000 certification
In application level 35 13.7 status of companies
IJQRM A quality management system focusing on quality results in more time to produce
29,7 acceptable products, less time spent on rework, scrap and waste. These improvements
lower cost and increase sales depending on improved product quality, on-time delivery
and fewer customer complaints. Having quality certification is expected to increase the
sales opportunity, volume and profitability, so ISO 9000 certified companies are
expected to perform better than non-certified companies (Heras et al., 2002b, p. 776;
764 Naveh and Marcus, 2005, p. 11). If the performance of the ISO 9001 certified companies
comes out higher than non-certified companies and the difference is also significant
( p-value lower than 0.05), the zero-hypothesis is rejected:
H 0. There is no difference between the quality practice levels of ISO 9001 certified
and non-certified companies.
Ha. There is a difference between the quality practice levels of ISO 9001 certified
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and non-certified companies.


ISO 9001 certification alone will not improve a company’s performance, but the practices
expected to develop in a company as a result of the ISO 9001 certification will. Therefore,
the performance of the companies which have ISO 9001 certificates but have not fulfilled
the requirements of the certification cannot be expected to be high. To determine the
effect of ISO 9001 certification on companies’ quality practice level, the differences
between ISO 9001 certified and non-certified companies in terms of quality practice
levels must be examined. In studies examining the effects of ISO 9001 certification on
companies’ quality practices, the quality practices of certified companies were found to
be higher than those of non-certified companies (Rao et al., 1997, p. 342; Gupta, 2000,
p. 451). Quality practice levels in certified companies are expected to be higher than those
in non-certified companies. So if the quality practice levels of the ISO 9001 certified
companies comes out higher than non-certified companies and the p-value is lower than
0.05 meaning the difference is significant, the zero-hypothesis is rejected:
H 0. There is no difference between the quality practice levels of companies with
ISO 9001 certification which are internally motivated and those that are
externally motivated.
Ha. There is a difference between the quality practice levels of companies with
ISO 9001 certification which are internally motivated and those that are
externally motivated.
Companies externally motivated for certification are found to benefit less (Leung et al.,
1999, p. 675). Companies gain benefits of increased performance when they aim to show
their customers more than a paper (Martinez-Costa and Martinez-Lorente, 2003, p. 1181).
Furthermore, externally motivated companies may not be interested in improving
quality and processes which are the real purposes of the certificate. However, internally
motivated companies are already interested in the continuous improvement of quality so
they can perceive benefits more easily (Escanciano et al., 2001, p. 492). The quality
practice levels of companies with ISO 9001 certification which are internally motivated
are expected to be higher than the certified companies which are externally motivated. If
there is no difference between ISO 9001 certified and non-certified companies in terms of
quality practice levels, companies’ motivation for receiving ISO 9001 certification should
be questioned. So if the quality practice levels of the internally motivated ISO 9001
certified companies comes out higher than externally motivated ISO 9001 certified Quality
companies and the difference is significant, the zero-hypothesis is rejected:
management
H0. There is no difference between the performances of companies with ISO 9001 system
certification which are internally motivated and those that are externally
motivated.
Ha. There is difference between the performances of companies with ISO 9001 765
certification which are internally motivated and those that are externally
motivated.
In some studies examining the relationship between certificate and performance,
motivations for certification have been considered as a factor. In all these studies it is
claimed that internally motivated companies have higher performance than externally
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motivated companies (Park et al., 2007, p. 42; Brown et al., 1998, p. 284; Withers and
Ebrahimpour, 2000, p. 440; Huarng et al., 1999, p. 1009; Terziovski et al., 2003, p. 594;
Martinez-Costa and Martinez-Lorente, 2003, p. 1181; Gotzamani and Tsiotras, 2002,
p. 166; Leung et al., 1999, p. 675; Atherton and Austin, 1996, p. 25; Escanciano et al.,
2001, p. 492; Jones et al., 1997, p. 658). The performance of companies with ISO 9001
certification which are internally motivated are expected to be higher than companies
which are externally motivated. If there is no difference between ISO 9001 certified and
non-certified companies in terms of performances, companies’ implementation of ISO
9001 Quality Management System should be questioned. So if the performance of the
internally motivated ISO 9001 certified companies comes out higher than externally
motivated ISO 9001 certified companies and the difference is significant, the
zero-hypothesis is rejected.

5. Results
To test the hypothesis for the differences between the performance of ISO 9001 certified
and non-certified companies, a one-way analysis of variance was used. The differences
between performance criteria averages of ISO 9001 certified and non-certified companies
are shown in Table IV. In terms of overall performance average, statistically significant
differences were not found between the ISO 9001 certified and non-certified companies.
So, H0 was accepted. We only found a statistically significant difference in the 0.05 level
of significance between ISO 9001 certified and non-certified companies in terms of
financial criteria ( p ¼ 0.009). Significant differences were not found in terms of internal
business criteria, customer criteria and innovation and learning criteria. Only under the
subsection “innovation and learning”, we found a statistical significant difference in the
0.05 significance level between ISO 9001 certified and non-certified companies in terms
of competitive position ( p ¼ 0.018).
To test the hypothesis for the difference between quality practice levels of ISO 9001
certified and non-certified companies, a one-way analysis of variance was used.
Companies at application stage were excluded. Differences between the quality
practice level averages of certified and non-certified companies are shown in Table V.
A statistically significant difference in the 0.01 level of significance was found between
certified and non-certified companies in terms of quality practice levels ( p ¼ 0.000).
H0 was therefore, rejected. We found statistically significant differences in the 0.01
level of significance in the subsections “top management leadership” ( p ¼ 0.004),
“quality system processes” ( p ¼ 0.000), “supplier relations” ( p ¼ 0.000),
IJQRM
Average of ISO 9001 Average of non-
29,7 certified (n ¼ 111) certified (n ¼ 109) p

Financial criteria 3.51 3.22 0.009 * *


Profitability 3.54 3.47 0.629
Turnover 3.63 3.26 0.006 * *
766 Market share 3.62 3.20 0.002 * *
Receivables turnover 3.33 2.98 0.026 *
Inventory turnover 3.43 3.18 0.081
Internal business criteria 3.66 3.71 0.608
Error, waste and re-processing costs 3.39 3.51 0.409
Capacity utilization rate 3.54 3.47 0.653
Defective product ratio 3.89 3.89 0.954
Manufacturing lead time 3.78 3.88 0.412
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Employee satisfaction level 3.70 3.78 0.495


Customer criteria 4.16 4.19 0.795
Number of complaints from
customers 4.14 4.15 0.897
Customer satisfaction level 4.23 4.22 0.878
The number of customers returning
products 4.26 4.25 0.964
On-time and full delivery 4.09 4.23 0.175
Response speed of technical service 4.10 4.08 0.824
Innovation and learning criteria 3.74 3.62 0.278
The success of offering new
products to market 3.73 3.68 0.713
Competitive position 4.07 3.79 0.018 *
Regular training for employees 3.71 3.47 0.097
Return of education 3.56 3.44 0.395
Table IV. Time and cost savings won by
Differences between
implementing new methods 3.64 3.73 0.517
ISO 9001 certified and
Overall average 3.77 3.68 0.308
non-certified companies
in terms of performance Note: Significant at: *p , 0.05 and * *p , 0.01

“process control-improvement” ( p ¼ 0.000). No statistically significant difference was


found in the subsections “customer orientation” and “human resource applications”.
The scale in Figure 1 was developed for determining the motivating factor behind
certification. According to the scale, companies which were 100 percent internally
motivated for certification would choose the “100” option on the left; Totally externally
motivated companies would choose “100” option on the right; if internal and
external motivation factors were equal, companies would choose “50” option in the
middle of the scale. If internal and external motivation factors are differently weighted, then
the related option was chosen. For example, the “70” option on the left means that, internal
motivation factors were weighted 70 percent and external 30 percent. Values used in the
analysis are marked under the scale. In this analysis, while totally internal motivation
factors have a value of “100”, totally external motivation factors have a value of “0”.
During the analysis, companies were grouped into two: 60 and over were internally
motivated, 40 and under were externally motivated. The difference between these two
groups was analyzed. Companies with a value of 50, meaning internal and external
Quality
Average of ISO 9001 Average of non-
certified (n ¼ 111) certified (n ¼ 109) p management
Top management leadership 4.32 4.04 0.004 * *
system
Providing resources to quality activities
by top management 4.45 4.15 0.005 * *
Quality policy constructed by top 767
management 4.46 4.19 0.012 *
Quality targets measurable on
departmental basis 4.21 3.77 0.000 * *
Top management’s review 4.15 4.06 0.449
Customer orientation 4.40 4.32 0.394
Collecting data on customer satisfaction 4.27 4.13 0.212
Investigation of data gathered from
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customers 4.46 4.41 0.576


Use of information as a tool for
improving products and services 4.45 4.43 0.774
Quality system processes 4.26 3.94 0.000 * *
Success rate control of quality targets 4.16 4.04 0.303
Capability of processes 4.01 3.81 0.094
Criteria of conformity/capability of
products 4.34 4.00 0.001 * *
Separation of inappropriate products 4.45 4.10 0.001 * *
Recording conformity results 4.33 3.76 0.000 * *
Human resources applications 4.11 4.02 0.339
Clear definition of job content 4.26 4.14 0.286
Clear definition of employees’ authority
and responsibilities 4.13 4.07 0.594
Capability of employee in terms of
education and skills 3.94 3.84 0.385
Supplier relations 4.21 3.82 0.000 * *
Criteria for supplier selection and
evaluation 4.13 3.78 0.005 * *
Criteria for purchasing 4.30 3.94 0.001 * *
Inspection and control in acceptance 4.20 3.73 0.000 * *
Process control and improvement 4.28 3.58 0.000 * *
Tools for review and measuring 4.28 3.31 0.000 * *
Calibration of measurement tools 4.36 3.10 0.000 * *
Measurement of products 4.30 3.44 0.000 * *
Analysis of data/information 4.18 3.56 0.000 * *
Table V.
Use of information in continuous
Differences between
improvement of quality 4.18 3.83 0.006 * *
ISO 9001 certified and
Corrective and preventive actions 4.37 4.22 0.183
non-certified companies
Overall average 4.27 3.91 0.000 * *
in terms of quality
Note: Significant at: *p , 0.05 and * *p , 0.01 practices

100 90 80 70 60 50 60 70 80 90 100
Figure 1.
100 90 80 70 60 50 40 30 20 10 0
Scale of motivation
Internal Internal and External External factors for certification
Factors Factors Equal Factors
IJQRM factors were equal, were excluded. Motivation factors for certification were asked, and
29,7 answers were used for confirming the answers in the scale.
A one-way analysis of variance was used in the hypothesis testing for determining
the difference between quality practice levels of companies which were internally and
externally motivated for certification (Table VI). Companies at the application stage for
certification were not included in the analysis. Internally motivated companies were
768 expected to have a quality practice level higher than externally motivated companies.
A statistically significant difference was not found between internally and externally

Internally motivated Externally motivated


(n ¼ 38) (n ¼ 26) p
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Top management leadership 4.45 4.13 0.065


Providing resources to quality activities by
top management 4.57 4.34 0.156
Quality policy constructed by top
management 4.57 4.30 0.110
Quality targets measurable on departmental
basis 4.31 4.11 0.369
Top management’s review 4.34 3.76 0.016 *
Customer orientation 4.43 4.20 0.148
Collecting data on customer satisfaction 4.42 4.07 0.069
Investigation of data gathered from customers 4.47 4.19 0.149
Use of information as a tool for improving
products and services 4.39 4.34 0.765
Quality system processes 4.29 4.13 0.271
Success rate control of quality targets 4.34 3.80 0.005 * *
Capability of processes 4.00 3.88 0.611
Criteria of conformity/capability of products 4.42 4.19 0.164
Seperation of inappropriate products 4.39 4.53 0.342
Recording the conformity results 4.31 4.26 0.804
Human resources applications 4.22 3.87 0.053
Clear definition of job content 4.31 4.03 0.164
Clear definition of employees’ authority and
responsibilities 4.28 3.80 0.039 *
Capability of employee in terms of education
and skills 4.07 3.76 0.141
Supplier relations 4.33 3.98 0.052
Criteria for supplier selection and evaluation 4.28 3.76 0.014 *
Criteria for purchasing 4.36 4.11 0.168
Inspection and control in acceptance 4.34 4.07 0.190
Process control and improvement 4.37 4.23 0.366
Tools for review and measuring 4.44 4.26 0.322
Calibration of measurement tools 4.39 4.53 0.382
Measurement of products 4.31 4.38 0.691
Analysis of data/information 4.23 4.03 0.335
Use of information in continuous
Table VI. improvement of quality 4.34 3.92 0.041 *
Difference between Corrective and preventive actions 4.50 4.26 0.187
internally and externally Overall average 4.35 4.11 0.094
motivated companies in
terms of quality practices Note: Significant at: *p , 0.05 and * *p , 0.01
motivated companies in the 0.05 level of significance. H0 was accepted. Regarding Quality
quality practices sub-titles, none of them were found to be statistically significant.
In the hypothesis testing to determine the difference between performance of
management
internally and externally motivated companies, we use a one-way analysis of variance system
was used (Table VII). Companies at the application stage for certification were excluded.
Internally motivated companies were expected to perform higher than externally
motivated ones. No statistically significant difference was found between internally and 769
externally motivated companies, in terms of overall performance average, in the 0.05
level of significance. H0 was accepted. A statistically significant difference was found in
the subsections “internal business” ( p ¼ 0.038) and “customer” ( p ¼ 0.012), in the 0.05
level of significance.

6. Conclusion
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There is no consensus about the effect of ISO 9001 certification on performance. While
some claim that certification has benefits and increases performance, others claim that
it has no benefit or effect on performance. However, the consensus among most studies
is that there is a need for further research on this subject.

Internally motivated Externally motivated


(n ¼ 38) (n ¼ 26) p

Financial criteria 3.52 3.43 0.638


Profitability 3.47 3.46 0.959
Turnover 3.57 3.50 0.745
Market share 3.65 3.69 0.889
Receivables turnover 3.39 3.03 0.217
Inventory turnover 3.52 3.46 0.797
Internal business criteria 3.78 3.46 0.038 *
Error, waste and re-processing costs 3.60 3.00 0.016 *
Capacity utilization rate 3.50 3.38 0.614
Defective product ratio 4.02 3.73 0.183
Manufacturing lead time 3.97 3.73 0.251
Employee satisfaction level 3.81 3.50 0.147
Customer criteria 4.26 3.93 0.012 *
Number of complaints from customers 4.23 3.88 0.007 * *
Customer satisfaction level 4.28 4.07 0.123
The number of customers returning
products 4.31 3.92 0.012 *
On-time and full delivery 4.26 3.84 0.028 *
Response speed of technical service 4.23 3.92 0.124
Innovation and learning criteria 3.82 3.62 0.273
The success of offering new products to
market 3.68 3.80 0.584
Competitive position 4.13 4.07 0.785
Regular training for employees 3.86 3.57 0.244
Return of education 3.63 3.42 0.380
Time and cost savings won by Table VII.
implementing new methods 3.81 3.23 0.017 * Difference between
Overall average 3.85 3.61 0.077 internally and externally
motivated companies in
Note: Significant at: *p , 0.05 and * *p , 0.01 terms of performance
IJQRM To determine the relationship between ISO 9000 and performance, factors affecting the
29,7 relationship need to be considered. Many factors such as motivation for certification,
quality practices, consultancy service during the certification period, senior
management’s support and attitude, employees’ attitude, company size, time since
certification and strategic orientation of the company affect the certification-performance
relationship. In this study, motivation for certification and quality practices were
770 considered as factors that affected the relationship.
First we examined whether a significant difference existed between the performance
of ISO 9001 certified and non-certified companies. However, no statistically significant
difference was found in terms of overall performance average. The only significant
difference between certified and non-certified companies we did find was in terms of
financial criteria, a subsection of performance, in the 0.01 level of significance. Actually we
expected certified companies to improve themselves primarily in internal business
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processes and customer criteria, and then that these improvements would affect financial
measures. However, the situation was opposite. When financial criteria were examined, we
found certified companies were significanly better especially at turnover and market share.
This may have resulted from the use of the certificate as an advertising and sales tool.
In order to examine the reasons why ISO 9001 certification did not have an effect on
performance, we had to determine if the certificate had any effect on the quality
practices of the company. Motivation for certification also had to be considered as a
factor affecting quality practices and performance of certified companies.
We found a statistically significant difference between certified and non-certified
companies in terms of quality practice average in the 0.01 level of significance. The quality
practices of ISO 9001 certified companies was higher than non-certified companies
participating in the survey. This result is similar with some studies in the literature
(Chow-Chua et al., 2003, p. 936; Rao et al., 1997, p. 342; Gupta, 2000, p. 451). Moreover,
a somewhat strong correlation was determined between quality practice and performance
(r ¼ 0.643). Although we found a correlation between quality practice and performance,
the quality practice of certified companies was found to be higher than non-certified in the
0.01 level of significance, we found no significant difference between certified and
non-certified companies in terms of performance. This can be explained by the fact that
quality practices of certified companies were higher than non-certified. However, it was
not high enough to affect performance. Furthermore, while some subsections of quality
practice showed a significant difference between certified and non-certified companies,
some did not. This may have affected the certification and performance relationship.
Motivation for certification is also a key factor affecting the performance of certified
companies. In the literature it is claimed that companies which are motivated internally
have higher performance than companies which are motivated externally (Brown et al.,
1998, p. 284; Withers and Ebrahimpour, 2000, p. 440; Huarng et al., 1999, p. 1009;
Terziovski et al., 2003, p. 594; Martinez-Costa and Martinez-Lorente, 2003, p. 1181;
Gotzamani and Tsiotras, 2002, p. 166; Leung et al., 1999, p. 675; Atherton and Austin,
1996, p. 25; Escanciano et al., 2001, p. 492; Jones et al., 1997, p. 658). Nevertheless, we
found no statistically significant difference between companies motivated internally
and externally in terms of performance average, in the 0.05 level of significance.
However, the p-value was approximate (0.077), and there were significant differences in
some subsections of performance. These strengthen the probability that motivation
factors affect performance.
In conclusion, a direct relation could not be found between ISO 9001 certification and Quality
performance. The explanatory power of a model proposing a direct relationship between management
ISO 9001 and performance is weak. Because certification does not have an effect on
performance, the quality practices of certified companies were found to be higher than system
non-certified. Also quality practices and performance were correlated. However, certified
companies’ higher quality practice does not necessarily mean higher performance.
Moreover, motivation factors for certification were found to have a partial effect on 771
performance. Motivation factors were determined as the other reason for the
non-difference between certified and non-certified companies.
An alternative for SME’s after certification would be investigating how efficient and
in what level ISO 9001 requirements are done. In subjects that performance improvement
has not been observed, system practice activities need to be continuously improved. In
other words if no improvement in performance is observed after certification, then the
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system is so-called certified and this is the case for most SME’s in Turkey. In this case the
system needs to be applied efficiently in order to improve performance.
In this study, motivation factors for certification and quality practices were considered
to be the main factors that affect the certification-performance relationship. However,
there are many factors affecting this relationship. Models considering other factors like
consultancy service during the certification period, senior management’s support and
attitude, employees’ attitude, company size, time since certification and strategic
orientation of the company may be better for examining the certification-performance
relationship for further researches. Also new researches may focus on the reasons why no
improvement is observed on some subjects, while expected.

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IJQRM Appendix. Survey questions
29,7
1.1 Quality Practices
Strongly Strongly
Disagree Disagree Neutral Agree Agree
Top Management Leadership
776 In our company top management provides the O O O O O
resources to quality-related activities
Our company has a quality policy created by top O O O O O
management
In our company measurable quality objectives are O O O O O
established on the basis of business units
In our company top management regularly review O O O O O
quality related activities
Customer Orientation
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Our company collects information about customer


perception of the customer’s requirements, requests O O O O O
and needs
In our firm data gathered from customer is O O O O O
investigated
In our firm of information is used as a tool for O O O O O
improving products and services
Quality System Processes
In our company success rate of quality targets are O O O O O
controlled
In our company capability of processes are O O O O O
investigated
In our company criteria of conformity/capability of O O O O O
products are determined
In our company inappropriate products are O O O O O
separated for preventing misuse or delivery
In our company conformity results are recorded O O O O O
Human Resources Applications
In our company job contents are clearly defined O O O O O
In our company authority and responsibilities of
O O O O O
employees are clearly defined
In our company employees affecting quality are O O O O O
capable in terms of education and skills
Supplier Relations
In our company criteria for supplier selection and O O O O O
evaluation are determined
In our company criteria for purchasing are O O O O O
determined
In our company inspection and control is implicated O O O O O
during acceptance
Process Control and Improvement
In our company we have tools for review and O O O O O
measuring
In our company measurement tools are calibrated O O O O O
periodically
In our company product characteristics are O O O O O
measured for conformity
In our company data collected from measurements are O O O O O
analyzed
In our company information is used in continuous O O O O O
improvement of quality
In our company corrective and preventive actions are O O O O O
done
Quality
1.2 Performance management
Strongly Strongly
Disagree Disagree Neutral Agree Agree system
Financial Criteria
Our company is in a good condition in terms of O O O O O
profitability
Our company is in a good condition in terms of
turnover
O O O O O 777
Our company is in a good condition in terms of O O O O O
market share
In our company receivables turnover is high O O O O O
In our company inventory turnover rate is high O O O O O
Internal Business Criteria
In our company error, waste and re-processing O O O O O
costs are low
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In our company capacity utilization rate is high O O O O O


In our company the defective product rate is low O O O O O
In our company product delivery time is low O O O O O
In our company employee satisfaction level is high O O O O O
Customer Criteria
In our company the number of complaints from O O O O O
customers is low
In our company customer satisfaction level is high O O O O O
In our company the number of the customer O O O O O
returning the product is low
Our company carries out deliveries on time and in O O O O O
full
In our company response rate of the technical O O O O O
service is high
Innovation and Learning Criteria
Our company's success in putting new products on O O O O O
the market is high
Our company's competitive position is good O O O O O
In our company affairs trainingare given to O O O O O
employees regularly
The contribution of education to our company is O O O O O
high
In our company as a result of application new O O O O O
methods provided time and cost savings
1.3 Demographic questions
The company’s city: ………………
The company’s sector: ……………..
Number of employees your company: …………….
Does your company have ISO 9001:2000 Quality Management System Certificate?
OYes O No O At the application stage
Please indicate which reasons that you have received ISO 9001:2000 certificateon thefollowing scale:
If you received the certificatefor entirely internal reasons choose 100% option the left side. If you
received the certificate for entirely external reasons, choose 100% option on the right side. Bothe
qually important reasons in the middle 50% of the option, if you have the weight of different reasons,
mark the appropriate option. For example, 70% of the internal causes, external cause’s weightare 30%.
100 90 80 70 60 50 60 70 80 90 100

100 90 80 70 60 50 40 30 20 10 0
Internal Internal and External External
Factors Factors Equal Factors
IJQRM About the authors
Dr Mehmet Sıtkı İlkay graduated from Erciyes University Faculty of Economics and
29,7 Administrative Sciences Department of Business Administration in 1984. He received his
MBA degree from the Institute of Social Sciences at Erciyes University in 1987. He also received his
MS degree in Industrial and Management Engineering from Rensealer Polytechnic Institute
Graduate School in 1993. He received his PhD degree from the Institute of Social Sciences at
Ankara University in 1996. He has been working as an Assistant Professor at Erciyes University.
778 He has also been working as a consultant for manufacturing companies. Mehmet Sıtkı İlkay is the
corresponding author and can be contacted at: ilkay@erciyes.edu.tr
Emre Aslan graduated from Ege University, Faculty of Economics and Administrative
Sciences Department of Business in 2004. He received his MBA degree from the Institute of
Social Sciences at Erciyes University. He is working as a Research Assistant at the Department
of Business in Gaziosmanpaşa University and still ongoing with his Doctoral education at
Erciyes University.
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