The ISO 9000 quality management (QM) standard, a key approach to implementing QM in organizations, also has many supply chain management (SCM) concepts associated with it. In this paper, we assess the extent to which organizations can use the standard to develop a SCM focus. Specifically, we extracted the relevant SCM practices from the ISO 9000 standard (internal organizational processes, relationships with suppliers and relationships with customers), and related these to business performance of firms through a direct effects model. The empirical data to test this model was obtained from a sample of 416 manufacturing plants in Australia that are registered to the standard. The results of this study provide evidence to suggest that firms do derive significant benefits from SCM related practices contained within ISO 9000, and that these practices affect performance by acting through internal organizational processes. The relationships were subjected to tests for sensitivity to several moderating factors. From these analyses, it is apparent that unfavorable business environmental conditions make it difficult to realize such benefits. We also found that the length of temporal experience (with the standard) did not appear to make a difference in terms of benefits obtained. Finally, it appears that smaller plants find it easier to realize the benefits of these practices than their larger counterparts. These sensitivity test results suggest that the utility of the standard is not universal. We see these results as a reality check for managers in modifying their expectations from certification and application of the standard. In sum, the findings indicate an important potential role for the use of the ISO 9000 standard beyond that of just promoting quality assurance at the plant level.
[...] (2006) "Supplier management and its relationship to buyers' quality management", Supply chain Management: An International Journal, Vol 11, No pp. 148-159. Fynes, B., Burca, S., and Voss, C. (2005) "Supply chain relationship quality, the competitive environment and performance", International Journal of Production Research, Vol 43, No 16, pp. 3303-3320. Flynn, B. and Flynn, E.J. (2005) "Synergies between supply chain management and quality management: Emerging implications", International Journal of Production Research, Vol 43, No 16, pp. 3421-3436. Lin, C., Chow, W.S., Madu, C.N., Kuei, C.H., and Yu, P.P. [...]
[...] As such, they cannot expect to be insulated from such factors based on use of supply chain practices incorporated in an ISO 9000 standard. In this sense, we see this as a reality check for managers in modifying their expectations from the standard. Further, micro/small organizations appear to find the approach more applicable than their larger counterparts. This is probably because small organizations view the standard in strategic terms and place greater value in their investment in the standard. Larger organizations, on the other hand, are more likely to view the standard in functional terms for the purposes of facilitating transactional activities. [...]
[...] In particular, it suggests that at this level of operation, the only way relationships with trading partners in the supply chain can alter the performance of the plant is through the 14 effect they have on operational processes within the plant whether these be related to better planning, scheduling, processing systems or inventory management practices. Secondly, insignificant direct effects could be due to the mismatch in measurement metrics. The business performance construct involves mostly financial metrics. These most closely reflect measures of performance within the plant and best captures aspects related to internal organizational practices. [...]
[...] To develop a better understanding of ISO 9000's ability to generate supply chain orientation in firms, we selected three factors and tested their moderating effect on the SCM practices performance relationships. These factors are business environmental conditions, length of time since registration was obtained and organization size. Business Environmental Conditions It has long been recognized that there is a link between the external environment in which firms operate and their behaviors and actions. This link is particularly strong in the use of ISO 9000. [...]
[...] (2004) "The Financial Impact of ISO 9000 Certification in the US: An Empirical Analysis", Manuscript., Vol. Bendell, T. and Boulter, L. (2004) "ISO 9001:2000 - A Survey of Attitudes of Certified Firms", International Small Business Journal, Vol 22, No pp. 295-316. Boiral, O. (2003) "ISO 9000: Outside the Iron Cage", Organization Science, Vol 14, No pp. 720-737. Guler, I., Guillen, M., and Macpherson, J. (2002) "Global Competition, Institutions, and the Diffusion of Organizational Practices: The International Spread of ISO 9000 Quality Certificates", Administrative Science Quarterly, Vol 47, No pp. [...]
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