Impact of ISO 9000 certification on firm performance: evidence from Brazil

Francisco Starke, Rangamohan V. Eunni, Nuno Manoel Martins Dias Fouto and Claudio Felisoni de Angelo

Management Research Review, 2012, vol. 35, issue 10, 974-997

Abstract: Purpose - The purpose of this paper is to investigate the impact of ISO 9000 certification on three dimensions of firm performance that are theoretically derived to have a relationship with the adoption of ISO 9000 standards, namely, sales revenue, cost of goods sold/sales revenue, and the asset turnover ratio (sales/total assets). Design/methodology/approach - Employing a panel data approach covering all publicly traded companies in Brazil that had adopted the ISO 9000 standards from 1995 to 2006, the authors investigate the impact of the certification on firm performance using three categories of economic regression models: the pooling of cutting data with ordinary least squares, the fixed effects and the random effects. Findings - ISO 9000 certification is found to be associated with an increase in sales revenues, decrease in cost of goods sold/sales revenue and increase in the asset turnover ratios of the certified firms. Research limitations/implications - The research findings suggest that companies large or small, irrespective of their capital structure (i.e. debt/equity) and cutting across industries will benefit from the adoption of ISO 9000 standards. However, the extent to which firms benefit from such adoption is likely to vary. Moreover, the generalizability of the research findings is limited by the size of the sample. Originality/value - The paper's chief contribution lies in the validation of the signaling theory in the context of business organizations and extending the domain of research on this topic to emerging markets generally.

Keywords: Brazil; Public companies; ISO 9000 series; Organizational performance; Sales turnover (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:mrrpps:v:35:y:2012:i:10:p:974-997

DOI: 10.1108/01409171211272697

Access Statistics for this article

Management Research Review is currently edited by Dr Jay Janney and Prof Lerong He

More articles in Management Research Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().