Factors of ISO 9000 and Impact on Company Performance (BUACC 5931)

This report investigates the adoption of ISO 9000 by service firms in China, examining its relationship with various factors and its impact on company performance. The study utilizes data from the National Bureau of Statistics of China's 2008 Economic Census, focusing on variables such as certification year, industry code, employee numbers, education levels, revenue, profit, and assets. The research aims to determine correlations between these factors and ISO 9000 adoption, as well as assess the impact on financial performance. The methodology involves descriptive and inferential statistical analysis of data collected from questionnaires distributed to service firm managers. Findings reveal correlations among firm factors and highlight the importance of skilled employees. The report concludes with recommendations for companies to pursue ISO 9000 certification to improve product quality and maximize profits.

Introduction to ISO 9000
• ISO is the standard international organization that help the companies
by providing them with the managerial guidelines to improve the
quality of their goods and services in order to meet the desires of the
customers, this was according to Boiral (2012).
• By 2013, over 189 countries had had companies operating being
certified by ISO 9000. the total number of companies was found to be
1,129,000 firms in the world.
• Both small and big businesses are trying to the level of their capacity
to ensure that they get certified by ISO 9000 so they can enjoy the
benefits associated with it.

Report research objectives
• This report was developed to meet the below objectives regarding
adoption of ISO 9000 by the firms:
1. To determine the correlation existing within factors in the firm as a
result of registration with ISO 9000.
2. To evaluate the impacts of ISO 9000 adoption in the firms’ financial
performance

Report research questions
• This report was guided by the following research questions in attempt
to meet the aforementioned research objectives.
1. Is there correlation existing within factors in the firm as a result of
registration with ISO 9000?
2. What are the impacts of ISO 9000 adoption in the firms’ financial
performance?

Literature reviews
• ISO 9000 can be measured indirectly through determining the
performance of the firms financially by engaging proper abstractive
framework, this was according to Hoyle, D. (2017).
• External perspective emerged as the most important and enjoyed benefit
firms get from certification with ISO 9000 as enhanced by the assessment
of implementation of effects of ISO Georgiev, S., & Georgiev, E. (2015).
• Adopting ISO 9000 subsequently in the business enterprise were with the
aim of creating development within the firms and facilitating them to
enjoy optimum profits compared to when they existed without
certification which would lead them make low profits Carter, M. R., Cheng,
L., & Sarris, A. (2016).

Methodology
• The data used in the report were as a result of census carried out by
the National Bureau of Statistics of China covering from 2008.
• Data collection tool that was used was the questionnaire in gathering
data which was supplied to the managing directors and managers of
service firms.
• The population of the service firms reached out by census was 5717
service firms.
• Descriptive and inferential statistics were applied in the analysis of the
census data.

Results and findings
• The smallest firm had the lowest number of 11 employees as the
highest number was 969 employees.
• Majority of employees of the service firms were low skilled with their
level of education attained being high school or below
• Almost all the factors within the firms were correlated with some
posting strong positive correlation and some weak negative and
positive correlation as well.

Conclusion and advise
• Since the results showed that most of the employees were low
skilled, the department in charge of hiring manpower is advised to
consider absorbing skilled employees who are highly knowledgeable
• Not all the companies censured had been certified with ISO 9000 and
therefore managers of the respective companies that had not been
certified with ISO 9000 were advised to do so their firms could enjoy
benefits associated with ISO 9000 such as production of improved
quality products and maximum profits.

References
Boiral, O. (2012). ISO 9000 and organizational effectiveness: A systematic review. Quality Management
Journal, 19(3), 16-37
Georgiev, S., & Georgiev, E. (2015). Motivational factors for the adoption of ISO 9001 standards in Eastern
Europe: the case of Bulgaria. Journal of Industrial Engineering and Management (JIEM), 8(3), 1020-1050.
Hoyle, D. (2017). ISO 9000 Quality Systems Handbook-updated for the ISO 9001: 2015 standard: Increasing the
Quality of an Organization’s Outputs. Routledge.