With to make it compatible with the rapidly

With the rapid
increase in global competition, it has become mandatory for the organizations
to deliver high quality products and continually improve to survive. Among the
various quality management approaches like lean management, Six Sigma, TQM, etc.
being used by organizations to achieve these objectives, the most common
approach is ISO-9001 Quality Management System (QMS). The ISO 9001 Standard was
introduced in 1987 and as per ISO Survey Report of 2016 more than one million
organizations have implemented this standard in 195 countries. In order to make
it compatible with the rapidly changing requirements the standard has been revised
in the years 1994, 2000, 2008 and most recently in 2015. The standard supports
the process base approach to develop, implement and enhance the effectiveness
of a quality management system. It sets out the requirements of quality
management system for an organization to demonstrate its capability to deliver
products and services that fulfill customer and regulatory requirements and aims
to increase customer satisfaction. Guidelines regarding procedure control and
documentation for a QMS are provided to identify the gaps, streamline the
operations and keep a consistent level of quality in the company.

 

The ISO 9001
is a part of ISO 9000 standards series, published by the International
Organization for Standardization (ISO). The series gives direction and tools to
companies who want to make sure that their product and services consistently
fulfill customer’s requirements. These standards provide guidelines to all the
organizations irrespective of their types and sizes for the implementation and
operation of effective quality management systems. The ISO 9000 family includes
the following four different standards:

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·        
ISO 9001:2015 states the requirements of quality management
system for an organization to demonstrate its capability to deliver products
and services that fulfill customer and regulatory requirements and aims to
increase customer satisfaction.

·        
 ISO 9000:2015
specifies fundamentals of quality management systems and explains the
vocabulary in the ISO 9000 family of standards. The fundamental understanding
of the quality management in ISO standards has been developed. Moreover, it describes
eight principles of quality management and the use of the process approach for
continual improvement.

·        
ISO 9004:2009 provides guidelines on effectiveness and
efficiency of a quality management system. It is quite helpful for the
organizations to increase the benefits gained from ISO 9001 and to continually
improve the performance of the organization.

·        
ISO 19011:2011 provides guidelines for internal and external
auditing of quality management systems and environmental management systems. It
furnishes information related to the audit programs, conduct of internal or
external audit, and auditor competence.

 

As mentioned
above, more than one million organizations in the world have acquired the ISO
9001 certification. Although the standard has been adopted by large number of
organizations, however the question regarding achievement of expected benefits
remains under discussion. To answer this question, impacts of ISO 9001
certification have been studied by many researchers since the implementation of
the standard. Unfortunately, there is still lack of consent regarding the
impacts of ISO 9001 certification even after 29 years of research.

 

A number of
studies have reported positive impact of ISO 9001 certification on different
performance measures. For example; ISO 9001 acts as a catalyst for change and
it is positively related to performance (Naveh & Marcus, 2005), it has positive
and significant impacts over the companies’ performance (Paulo, Pedro &
Antonio, 2009). However, various studies have questioned these optimistic views.
Many studies have abnegated the positive impacts of the ISO 9001 and highlighted
the negative effects that may arise by certification. For example, Yeung  (2011) showed that certification has a
significant negative impact on return on assets, especially in the first two
years. As per Olivier (2012), ISO 9001 certification does have the negative
impacts like bureaucracy, cost of the system, superficial integration and lack
of confidence. Hence, there is a lack of agreement among researchers regarding
the relationship between ISO 9001 certification and the organizational
performance.

 

In
Pakistan, a few studies have been carried out regarding the impact of ISO 9001.
For example, Salman and Raza explored the degree to which the practice of ISO
9001:2000 are used in Searle Pakistan limited and Hayat and Ishaq have briefly
reviewed and analyzed different practices of ISO 9000 in three sports goods
firms of Pakistan. However, these studies are based on very specific contexts
that cannot be generalized. The specific areas and sectors are not generally
representative of whole population of certified organizations. Hence, there is
a lack of research work on discovering the overall impact of ISO 9001 on the
certified organizations of Pakistan.

 

Keeping in
view the growth of ISO 9001 certification worldwide and its importance among
practitioners, additional research is necessary to gain a generalized
understanding of the relationship between ISO 9001 certificate and
organizational performance in Pakistan. Moreover, Motivational factors to
obtain ISO 9001 certification are the primary determinants of the impact of
certification on organizational performance. Many organizations do temporary
improvement of systems to obtain the certification for the purpose advertisement
and due to strong competition. Hence, they do not attain acceptable results and
improvements. Therefore, among the several factors, motives for adoption and
implementation process of ISO 9001 have received the most significant attention
(Prajogo, 2011). This
study will find the firms’ motivational factors to obtain the ISO 9001
certification and the impact of this certification on organizational
performance in Pakistan.

 

The study
will focus the project base and functional organizations, product and service
industry of small and large scale dispersed all over the Pakistan. Motivations
and impact of ISO 9001 certification will be studied on certified organizations
of Pakistan through a questionnaire developed by Corbett, Luca, and Pan (2003).
Questionnaire will be sent to quality manager of each organization included in
the sample. Data obtained through questionnaire will be analyzed through SPSS.
Reliability and validity of questionnaire will be calculated. Descriptive
analysis, regression, correlation and factor analysis will be performed using
SPSS. Conclusion will be drawn as a result of the analyses.

 

 

 

 

 

 

 

 

 

1.1             
Problem
Statement and Research Questions

 

There has been an exponential growth in the number of
certified organizations over the last two decades. However, as discussed above
that the impact of ISO 9001 implementation on firm performance has remained
controversial as some studies showed the positive results while a number of
studies have denied the positive impacts of the ISO 9001 implementation and
highlighted the negative effects that may arise by certification. Hence, lack
of agreement exists among researchers regarding the relationship between ISO
9001 certification and the organizational performance. Therefore the first
research question will determine the impact of ISO 9001 certification on firm
performance in Pakistan.

 

What are the
impacts of ISO 9001 certification on Organizational Performance?

 

Despite of the successes that may result from ISO 9001
implementation, some of the registered companies may not be able to enhance
their performance. Many companies due to strong competition and advertisement affairs,
restrict themselves only to the temporary improvement of systems and obtaining
the certification. Hence, they do not achieve acceptable results as a result of
employing this standard. Therefore, company’s motivations to obtain ISO 9001
certificate is regarded as one of the primary factors to determine the impact
of this standard’s implementation. Therefore the second research question will
focus on motivation factors for achieving ISO 9001 certification:

 

What are the
motivation factors for ISO 9001 certification?

 

1.2             
Objectives
of the Study

 

The
objective of this study is to investigate the factors which lead to ISO 9001
certification and the impact of this certification on organizational
performance in Pakistan.  The study aims
to establish the following:

 

·                   
Determine the impact of
implementation of the ISO 9001 standard on Organizational Performance in
Pakistan.

·                   
Determine the motivational factors
to obtain ISO 9001 certification.

 

1.3             
Significance
of the Study

 

Although there have been a number of
studies related to impact of ISO 9001 on organization performance but still the
real benefits of certification remain controversial. Moreover, as described
earlier, there is a lack of research work on discovering the overall impact of
ISO 9001 on the certified organizations of Pakistan.

Given the
importance of ISO 9001 among practitioners, and its significance in operations
management research, additional study is necessary to gain a generalized
understanding of the relationship between ISO 9001 certificate and organizational
performance in Pakistan. The study will not only a contribution towards
research work, it will also act as a tool for management to decide whether to
adopt this standard or not. This study will focus the project base and
functional organizations, product and service industry of small and large scale
dispersed all over the Pakistan, thus, providing overall impact and motivation
of ISO 9001 implementation.

 

1.4             
Sequence
of study

 

The dissertation starts with the introduction of the
ISO 9001 Quality Management System, highlighting the research gaps,
significance, research questions and objectives of the study. Second chapter
discusses the literature regarding impact and motivation of ISO 9001
certification in international context as well as with respect to Pakistan. Third
chapter presents the research framework of the study with justification and
research model. Chapter four discusses the research methodology for analyzing
impact of certification on organizational performance and motivation for
certification. It includes the research design, sample design, instrument
selection, data analysis techniques and software used for analysis. Next
chapter presents the results related to impact of ISO 9001 certification on
organizational performance and motives for the certification. Chapter six
discusses the results obtained regarding impact of ISO 9001 certification and
its motives in Pakistan. It also includes the implications, limitations and
future research required regarding the subject. Chapter seven provides the list
of references and the last chapter includes the appendices.

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