Financial Performance of Chinese Firms after Adoption of ISO 9000

Running Head: RESEARCH AND STATISTICAL METHODS FOR BUSINESS
Research and Statistical Methods for Business
Name of the Student
Name of the University
Author Note

1RESEARCH AND STATISTICAL METHODS FOR BUSINESS
Executive Summary
The present report investigates the financial performance of Chinese firms before and after the
adoption ISO 9000 quality standard. Information for the analysis was collected by the statistical
bureau of China in 2008. Previous studies on the subjects provides mixed response for the
adoption of the quality standard. It has been found that firms from all over the world have gained
financially due to the adoption of ISO 9000. From the present study we find that adoption of ISO
9000 has led to an increase in sales and profits of the organizations. In addition, it is also found
that the increase in financial performance is irrespective of the industry type.

2RESEARCH AND STATISTICAL METHODS FOR BUSINESS
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Background..................................................................................................................................3
Purpose........................................................................................................................................3
The report hypothesis..................................................................................................................3
Format and methodology.............................................................................................................3
Literature review..............................................................................................................................3
Methodology description and justification of existing data-set.......................................................6
Hypotheses:..................................................................................................................................6
Analyses and findings......................................................................................................................6
Discussion and managerial advises.................................................................................................9
Limitations and directions for future research.................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3RESEARCH AND STATISTICAL METHODS FOR BUSINESS
Introduction
Background
The ISO 9000 series of quality standards were first published in 1987. The initial quality
standard was christened ISO 9000:1987. The intent of the organization was to frame rules for
quality of products and services with special reference to trade between two organizations or
countries. The standards have evolved over time (Nally, 2016).
Purpose
The purpose of the study is to investigate the adoption of ISO 9000 by organizations in
China. The information has been collected from service industries in China in 2008.
The report hypothesis
 Adoption of ISO certification improves the revenue of the industry
 Adoption of ISO certification improves the operating profit of the industry
Format and methodology
In order to investigate the information collected by Chinese National Bureau of statistics
previous literature is studied. Previous information on the benefits of adoption of ISO
certification is used as a secondary resource. The primary data collected by China is initially
investigated through the use of descriptive statistics. Further investigation into the data uses
inferential statistics. MS Excel is used for the statistical analysis.
Literature review
ISO 9000 are a series of standards intended to improve the quality management of
organizations. The standards provide a guideline to organizations to improve the quality and
service of its products. Research done by Chatzoglou, Chatzoudes, & Kipraios (2015), suggests
that the improvement in quality of products and services has a direct relation to the financial
performance of an organization.
Zhu, Cordeiro, & Sarkis (2013) studied the adoption of ISO 9000 standards in China.
They found that implementation of the standard was a consequence of both national as well as
international pressure. They found that factors like sales, environmental regulation and industrial
practices lead to the adoption of the standard.
Wang & Sarkis (2013), in their article “Investigating the relationship of sustainable
supply chain management with corporate financial performance” investigated the relation of
financial performance and supply chain activities of firms. They investigated financial
performance of 500 companies from USA from information in Bloomberg. The researchers
found that implementation of ISO 9000 has a positive relation with financial performance of the
organizations.
Adoption of ISO 9000 certification may lead to an increase in the number of contracts
with both domestic and international players (Javorcik & Sawada, 2018). Moreover, the
performance of the firm may also increase due to the continuous improvement feature of ISO
9000. In addition, due to increase in the number of contacts of the organization the firm gets
increased business links. The increased business links puts pressure of the organization to
improve the quality of products and services.