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Summary of article ‘Relationships among ISO 9001, competitive dimensions and profitability’ 1. Introduction The rising demand for ISO 9001 certification and its impact on quality improvement made it crucial to analyze and understand the relationship between ISO 9001, competitive dimensions and profitability…
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Download file to see previous pages However whether obtaining ISO 9001 certificate and the registration process efforts impact or benefit competitiveness and profitability need to be critically analyzed. The aim of the present paper is to summarize the article written by Han, Sim and Ebrahimpour (222) for the International Journal Services and Operations Management, titled “Relationships among ISO 9001, competitive dimensions and profitability” to understand and bring light on this perspective. 2. Summary of the article The main purpose of Han, Sim and Ebrahimpour (222) article is “to better understand the relationships among ISO 9001 certification, competitive dimensions and profitability by focusing on two major industries in the USA”. The research was conducted using survey questionnaire. 2.1 Background and Hypothesis The authors introduced their article by stressing upon the ISO 9001 certification importance and its impact on improvement of quality. They also stated that significant discipline is needed in ISO 9001 implementation and its principles ensure that output consistency can be improved by procedures that are well planned and documented, resulting in achieving the goals of quality improvement and reduction of cost easily. ...
However as customers’ needs are dynamic so is the world class manufacturing company’s operations strategy. Thus authors have conducted an empirical research to also understand the present relationship between registration efforts of ISO 9001 and firm’s profitability and its four competitive dimensions. After conducting a thorough past literature review Han, Sim and Ebrahimpour (224) tested nine hypothesis that are illustrated using the below figure The nine hypothesis tested in this research are listed below “H1 ISO 9001 registration efforts have a positive effect on quality. H2 ISO 9001 registration efforts have a positive effect on cost reduction. H3 ISO 9001 registration efforts have a positive effect on flexibility. H4 ISO 9001 registration efforts have a positive effect on dependability. H5 ISO 9000 registration efforts have a positive effect on profitability H6 Quality has a positive effect on profitability H7 Cost reduction has a positive effect on profitability H8 Flexibility has a positive effect on profitability” (Han, Sim and Ebrahimpour 225-226) Figure 1: Theoretical model – Relationships among ISO 9001, Competitive dimensions and profitability (Han, Sim and Ebrahimpour (227) 3. Research Design and Methodology The research was conducted using a questionnaire and sample was selected with due process for the survey. The questionnaire was developed based on literature review and later reviewed for content validation by external judges. The survey was tested for “clarity, relevance and technical accuracy” by the collaborative program in Massachusetts and all facets of the survey were commented upon (Han, Sim and Ebrahimpour, ...Download file to see next pagesRead More
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