ISO 9000 certification: The financial performance implications

Abstract

ISO 9000 certification has become an increasingly popular option for US firms seeking to improve their internal operations and competitive positions. The current study explores the relationship between ISO 9000 certification and financial performance. Most research in this area has been anecdotal in nature. The empirical studies that have addressed this relationship have not only been limited, but also have been largely contradictory. In an attempt to reconcile these conflicting results, a multivariate, repeated measures research design was utilized. Our results indicate that ISO 9000 certification has a very limited impact on financial performance, as measured by return on assets, however this effect dissipates quickly over time.