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A signalling framework for drivers of ISO 9000 certification in services and manufacturing

Giovanni Mangiarotti and Cesare Riillo

International Journal of Productivity and Quality Management, 2013, vol. 11, issue 3, 287-310

Abstract: This empirical study compares the drivers of ISO 9000 certification between services and manufacturing by adopting a signalling framework. The econometric analysis is based on a representative dataset for the service-intensive Luxembourgish economy, which provides original and relevant settings for the comparison. Probit model estimates show that ISO 9000 certification in services, unlike manufacturing, neither has quality signalling effects on the international market nor signals superior quality intangibles connected to innovation activities. The presence of co-terminality in services may explain the lack of effectiveness of ISO 9000 as a signalling device for service companies. The findings contribute to the debate on the general applicability of ISO 9000 across sectors, suggesting that services peculiarities should be considered for ISO 9000 customisation. Results also indicate that certification is not an effective quality signal in consumers markets and that it does not fill reputation gaps for newly established companies.

Keywords: ISO 9000; quality management; quality standards; quality certification; services; service sector; manufacturing industry; Community Innovation Survey; CIS; signalling; co-terminality; Luxembourg; probit model. (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:ids:ijpqma:v:11:y:2013:i:3:p:287-310