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Why firms lose their ISO 9001 certification: evidence from Portugal
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Orientador(es)
Resumo(s)
More 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.
Descrição
Palavras-chave
Small and medium-sized enterprises Decertification Economic performance Event study ISO 9001
Contexto Educativo
Citação
Editora
Taylor & Francis