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- Determinants of expected performance after ISO 9001 certification withdrawalPublication . Candido, Carlos; Ferreira, Luís M. F. R.ISO 9001 certification impact on firm performance has been extensively researched. However, despite the high number of firms withdrawing from this certification, the impact of decertification has not received much research attention. This study contributes to filling this gap by analysing the factors that influence the expected performance after decertification (EPAD). The study reviews relevant literature and develops a structural equation model (PLS-SEM) with data from 231 certified organisations. Results reveal that the main factors influencing EPAD are external decertification motivations and internal certification benefits. Internal benefits have a U-shaped relationship with EPAD and external decertification motivations a positive linear relationship. Results show also a negative direct impact of external benefits on EPAD, which is counterbalanced and cancelled by a positive indirect impact from the same variable. Certification barriers and internal decertification motivations have no significant effect. This study is the first to identify and analyse the factors affecting EPAD and, as such, the study findings constitute innovative contributions to the literature. These findings have theoretical and practical implications for (1) the estimation of EPAD, (2) the decision to renew (or not) the certificate, and (3) further suggest that EPAD is a better predictor of decertification than past certification benefits.
- Why firms lose their ISO 9001 certification: evidence from PortugalPublication . Candido, Carlos; Coelho, Luís; Peixinho, RúbenMore than one million certified companies must choose, every three years, whether to renew or to withdraw from ISO 9001 certification. This paper investigates whether ISO 9001 decertification decision is driven by economic motivations. Using standard event-study methods, the paper looks into this question by comparing the abnormal performance of a sample of Portuguese firms that lose their certification with that of similar, non-event, firms. The paper finds no statistically significant differences in the economic performance of these two sets of firms in their post-ISO certification period. Such evidence suggests that economic underperformance is not the reason why companies are ISO decertifying and further suggests that the decision to decertify is economically irrelevant. The study advances possible explanations for this (ir)relevancy and puts forwards implications for theory and for the ISO 9001 governance system. The governance system must change in order to increase the economic benefits that organisations can expect to gain from ISO (re)certification. This is the first study assessing the impact of ISO 9001 certification on firms that subsequently lost the certificate.