Adoption of ISO 9000 in China

Running head: ADOPTION OF ISO 9000 IN CHINA 1
Adoption of ISO9000 and its Relationship with other Factors in China’s Service Industry
Name
Institution

ADOPTION OF ISO 9000 IN CHINA 2
Adoption of ISO 9000 and its Relationship with other Factors in China’s Service Industry
Executive Summary
Purpose – The purpose of this paper is to investigate adoption of ISO 9000 certification and
its relationship with other factors in China’s service industry. Methodology – data was
obtained from National Bureau of Statistics of China for the Economic Census of 2008.
Pearson correlation coefficient, Chi-square test, independent samples t-test and ANOVA was
performed on the four variables from the original dataset (Sales volume, certification status,
industry, capital from overseas, and number of employees). Findings – The results indicate
that ISO 9000 certified firms have high sales volume, number of employees and capital from
foreign countries. Research limitations/implications – Managers in the China service industry
need to have their firms certified to improve performances. Future studies should consider
time series aspect of the research problem.

ADOPTION OF ISO 9000 IN CHINA 3
Table of Contents
Executive Summary...................................................................................................................2
Table of Contents.......................................................................................................................3
Introduction..............................................................................................................................4
Background Information.....................................................................................................4
Purpose of the Report..........................................................................................................5
Research Hypothesis............................................................................................................5
Objective of Report..............................................................................................................6
Report Format......................................................................................................................6
Literature Review.....................................................................................................................6
Methodology.............................................................................................................................9
Data........................................................................................................................................9
Analysis Approach................................................................................................................9
Analysis and Findings............................................................................................................10
Descriptive Analysis...........................................................................................................10
Inferential Statistics............................................................................................................11
Pearson Correlation Coefficient....................................................................................11
Chi-square Test of Association......................................................................................12
Test of difference in Mean (Student t-test)...................................................................12
Analysis of Variance (ANOVA).....................................................................................13
Discussion and Managerial Advices.....................................................................................14
Limitation and Future Research...........................................................................................15
References................................................................................................................................16

ADOPTION OF ISO 9000 IN CHINA 4
Introduction
Background Information
The first interest of the International Standardization Organization (ISO) was in
regulating the measurement of activities in various industries in an economy. However, in
carrying out the original mandate the Iso took its cue from these standards and decided to the
first edition of ISO 9000 series in 1987. Moreover, the series has become the most popular
quality management standards adopted by many organizations across the world’s economic
regions. Even though the series has been regularly used as a marketing tool by various
successful organizations, a debate on its impact on the organizational performance has
existed since its introduction in 1987. Several researches have been carried out with the aim
of investigating the impact of ISO 9000 on the performance of firms in various parts of the
world including China (Zeng, Phan & Matsui, 2015; Molina et al.,2015). Majority of these
studies conclude that there exist a positive and significant relationship between
implementation of quality management systems and the performance of organisations.
Therefore, this research report is interested in investigating the adoption of ISO9000 and its
relationship with other factors in China’s service industry.
Quality management (QM) is a business practice with the potential of benefiting
companies. Several empirical studies have shown that successful implementation of QM has
a positive and effective influence on the performance of a firm (Shahin & Dabestani, 2011;
Parast, Adams & Jones, 2011; Zeng, Phan & Matsui, 2015; Molina et al.,2015; O’Neill,
Sohal & Teng, 2016; Obeidat et al.,2016). Establishments that implement quality
management practices focuses on the provision of more value to the customers through
improving the efficiency of their processes. Incessant betterment of production process
accompanied by high quality product result in increased revenue (caused by product
reliability) and lower costs (as a results of efficient process). Additionally, satisfied customers