Adoption of ISO9000 and its Relationship with other Factors in China’s Service Industry

Adoption of ISO9000 and its Relationship with other Factors in
China’s Service Industry
Name:
Date: 4th October 2018

Executive summary
The main aim of this study was to identify the relationship between Adoption of ISO9000 with
other factor players in China’s service industry. Analysis of the data from the National Bureau of
Statistics of China gave the following main results;
 The profit made by the ISO9000 certified companies was higher than that of the non-
ISO9000 certified companies
 The sales made by the ISO9000 certified companies was higher than that of the non-
ISO9000 certified companies
 Only a very small proportion (8%, n = 460) of the companies studied have so far
undergone ISO9000 certification.
Based on the above key findings, the following recommendations are made;
 There is need for an intensive national drive and sensitization of various companies to
undergo ISO9000 certification.
 The government to put strict and adequate measures for companies being registered to
ensure they are ISO9000 certified so as to ensure quality of service offered to the citizens

Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Literature Review............................................................................................................................5
Motivations for Adoption of ISO Standards................................................................................5
Research Questions..........................................................................................................................6
Research Hypothesis........................................................................................................................7
Description of the methodology......................................................................................................8
Results..............................................................................................................................................8
Descriptive Analysis....................................................................................................................8
Inferential Analysis....................................................................................................................11
Discussion and managerial advises...............................................................................................16
Limitations and directions for future research...............................................................................17
References......................................................................................................................................17

Introduction
The ISO 9000 series of quality management systems standard has been widely applied all over
the world since its introduction in 1987. By the end of 2013, ISO 9000 had been adopted by over
1,129,000 facilities in 189 countries. Both academics and practitioners are interested in
understanding the relationship between adoption of ISO 9000, and other factors (Christmann &
Taylor, 2006; Du, Yin, & Zhang, 2016; Fikru, 2014a, 2014b, 2016; Nakamura, Takahashi, &
Vertinsky, 2001; Pekovic, 2010; Wu, Chu, & Liu, 2007).
In 2008, the National Bureau of Statistics of China conducted an Economic Census of the service
firms. The descriptions of variables, the coding are shown in the table. The data is available in
Moodle.
As an indication of universal quality framework, ISO9000 certification has been embraced by an
ever increasing number of business enterprises. In the last few years, there have been over half a
million certified companies in both America and Europe, and China has had an excess of
390,000 certified companies. It has pulled in attention of many scholars as to whether
certification has positive or negative impact on the performance of the companies. This paper
examines the ISO9000 certification impact on company's market performance basing on the
Chinese companies. Considering ISO9000 affirmation as an occasion, a confirmation impact
model will be set up by methods for the occasion ponder strategy, which takes irregular return
rate as a fundamental marker to gauge the ISO9000 accreditation impact on Chinese market
execution in various occasion times.