Correlation between QMS Characteristics and Financial Results of Organizations
DOI:
https://doi.org/10.37886/Keywords:
quality management system, business performance, survey, ISO 9001, SlovenijaAbstract
Research Question (RQ): Several authors’ researches explore relationships between characteristics of quality management systems (QMS) and business results of organizations. Research on relationships between QMS practice and organizational business results may serve as bases for improving the theoretical approach to QMS as well as for improving operational quality management systems in organizations.
Purpose: In the article, we analyse the impact of QMS characteristics on organizational business, or which are impacts between individual QMS characteristics, or how the difference between required and actual QMS characteristics reflect on financial business results in Slovenian organizations.
Method: To answer the above mentioned questions, the research of QMS characteristics was conducted that based on surveying quality system managers and directors of Slovenian organizations that have certified QMS. In this framework, relationships between QMS characteristics and business results were explored, and between individual QMS characteristics elements.
Results: In the article, the most interesting findings of the correlations’ research are presented. It is interesting that among all the ISO 9004:2009 quality management principles, in Slovenian organizations only some elements show positive correlation coefficient with organizational business results.
Organization: This research will contribute to improved understanding of individual QMS characteristics and their impact on organizational business results.
Society: This article explains relationships between QMS characteristics in organizations in Slovenian society. Knowing these relationships is of a great importance in improving QMS in Slovenian organizations and by this, in improving efficiency of QMS in individual organizations and the society as a whole.
Originality: The research presented is the first analysis of QMS characteristics based on the original model for analysing characteristics and impacts to QMS characteristics, and correlations between QMS characteristics and business results of Slovenian organizations.
Limitations / further research: The research was conducted between June 2014 and April 2015 in Slovenian business environment. It would be interesting to perform the research also in other social environments.
References
AJPES (2016) Agency for Public Legal Records and Related Services, JOLD - Public publication of annual reports, http://www.ajpes.si/;access 5/2016.
Alič, M. (2014) Impact of ISO 9001 certification cancellation on business performance: a case study in Slovenian organisations. Total Quality Management & Business Excellence, 25(7–8): 1-22.
Alič, M. (2012) Giving up management system certification: a potential early warning signal? Organizacija, 45(2), 59–74.
Bogataj, V., Škulj, G., Sluga, A. (2015) The study of characteristics of quality management systems in Slovenian organizations: a report (in Slovene). University of Ljubljana, Faculty of Mechanical Engineering.
Bogataj, V., Škulj, G., Bračun, D., Sluga, A. (2017) Relationships between the characteristics of the quality management system and business results in Slovenian organizations. The 9th International Working Conference Total Quality Management Advanced and intelligent Approaches, Proceedings, 78-86.
Chang, D.S., Lo, L.K. (2005) Measuring the relative efficiency of a firm’s ability to achieve organizational benefits after ISO certification. Total Quality Management, 16(1):57–69.
Delić, M., Radlovaćki, V., Kamberović, R., Maksimović, R., Pečujlija, M. (2014) Examining relationship between quality management and organisational performance in transitional economies, Total Quality Management & Business Excellence, 25(4):367–382.
Godnič, B., Vodopivec, R. (2017) Globalization and integration processes in Europe. Revija za univerzalno odličnost, mar. 2017, jear. 6, nr. 1, page. 1-10.
Gotzamani, K. (2010) Results of an empirical investigation on the anticipated improvement areas of the ISO 9001:2000 standard. Total Quality Management & Business Excellence, 21(6):687–704.
Heras-Saizarbitoria, I., Casadesu´s, M., Marimón, F. (2011) The impact of ISO 9001 standard and the EFQM model: The view of the assessors. Total Quality Management & Business Excellence, 22(2):197–218.
Karapetrovic, S., Casadesus, M., Heras-Saizarbitoria, I. (2010) What happened to the ISO 9000 lustre? An eight-year study. Total Quality Management and Business Excellence 21(3):245–267.
Martínez-Costa, M., Choi, T.Y., Martínez, J.A., Martínez-Lorente, A.R. (2009) ISO 9000/1994, ISO 9001/2000 and TQM: The performance debate revisited. Journal of Operations Management, 27(6):495–511.
Martínez-Costa, M., Martıínez-Lorente, A.R., Choi, T.Y. (2008) Simultaneousconsideration of TQM and ISO 9000 on performance and motivation: An empirical study of Spanish companies. International Journal of Production Economics, 113(1):23–39.
Martínez-Lorente, A.R., Martínez-Costa, M. (2004) ISO 9000 and TQM: Substitutes or complementaries? An empirical study in industrial companies. Int. Journal of Quality and Reliability Management, 23(3):260–276.
McAdam, R., McKeown, M. (1999) Life after ISO 9000: An analysis of the impact of ISO 9000 and total quality management on small business in Northern Ireland. Total Quality Management, 10(2): 229–241.
Nair, A., & Prajogo, D. (2009) Internalisation of ISO 9000 standards: The antecedent role of functionalist and institutionalist drivers and performance implications. International Journal of Production Research, 47(16): 4545–4568.
Pipan, K. K., Soković M. (2012) Business excellence in Slovenian companies International Conference on Quality. ICQ 2012. Belgrade: 311-317
Recker, J., Rosemann, M., Indulska, M., Green, P. (2009) Business process modeling – a comparative analysis. Journal of the Association for Information Systems, 10(4):333–363.
Sampaio, P., Saraiva, P., Rodrigues, A.G. (2009) An analysis of ISO 9000 data in the world and the European Union. Total Quality Management & Business Excellence, 20(12):1303–1320.
Soković, M., Jovanović, J., Krivokapić, Z., Vujović, A. (2009) Basic quality tool in continuous improvement process, Journal of Mechanical Engineering, 55(5): 1-9.
Terziovski, M., Power, D., Sohal, A. S. (2003) The longitudinal effects of the ISO 9000 certification process on business performance. European Journal of Operational Research, 146(3):580–595.
Terziovski, M., Samson, D., Dow, D. (1997) The business value of quality management systems certification. Evidence from Australia and New Zealand. Journal of Operations Management, 15(1): 1–18.
Závadský,J., Závadská, Z. (2014) Utilisation of business process models in managerial practice: An empirical study in Slovak companies certified to the ISO 9001 standard, Total Quality Management & Business Excellence, 25(4):319–337.
Yeung, A.C.L., Lee, T.S., & Chan, L.Y. (2003) Senior management perspectives and ISO 9000 effectiveness: An empirical research. International Journal of Production Research, 41(3):545–569.
