Determinants of the adoption ofISO9000 and its impact on firm performance
The ISO 9000 series of quality management systems standard has been widely applied all over the world since its introduction in 1987. By the end of 2013, ISO 9000 had been adopted by over 1,129,000 facilities in 189 countries. Both academics and practitioners are interest in understanding the determinants of adoption of ISO 9000, and the impact of the adoption of ISO 9000 on firm financial performance (Christmann & Taylor, 2006; Du, Yin, & Zhang, 2016; Fikru, 2014a, 2014b, 2016; Nakamura, Takahashi, & Vertinsky, 2001; Pekovic, 2010; Wu, Chu, & Liu, 2007).
In 2008, the National Bureau of Statistics of China conducted an Economic Census of the service firms. The descriptions of variables, the coding are shown in the table. The data is available in Moodle.
Table: Variables, their descriptions and coding
Description of the variable
Year the company certified
2004; 2005; 2006; 2007; 2008
0= not certified; 1=certified
Two digit industry code
58= storage and transportation;
74= business services
75= Research and Development
76= specialized technology services
77= technology exchange and promotion
Four digit industry code
Year of the founding of the company
Number of employees with master or doctor
Number of employees with bachelor
Number of employees with diploma
Number of employees with high school education
Number of employees with junior high school or below
Sales of the company
Profit of the company
Total asset of the company
Equity of the company
Capital from government
Capital from overseas
Capital from other sources
Return on sales
Return on assets
Percentage of overseas investment in the total investment
Overseas investment dummy
Age of the company
You are expected to work in groups and write a research report. When you work on your report, you need to use the dataset, and other sources such as journal articles. If you use website material, please pay attention to the quality of the material (e.g. government website or industry website etc.). There is no word limit for the report. For the number of references, there should be at least ten academic sources (journal articles, or books). It is encouraged to use more relevant, high quality, and up to date sources in the report.
Students have a high degree of flexibility in doing the research. The important thing is that the research should be well connected with the literature.
The required structure should be as following.
1. Executive Summary: Major findings and major recommendations
2. Introduction: Background (of the case); purpose (of this report); two to three research objectives for a study that you would seek to conduct; and format (of this report).
3. Write a short literature review of at least ten academic sources relevant to your topic. Any source including books, journal articles are acceptable, as long as they are relevant. You can also use a particular website for some information. If websites are used they will be in addition of the ten academic sources.
4. Describe the methodology and justify your choice.
5. Analyses and findings: Run some analysis to turn the data into useful information as follows:
a)Descriptive statistics:Sample characteristics will be described with descriptive analysis. This will include at least the following analysis: Frequency, percentage; Measures of central tendency; Measures of dispersion (variance, standard deviation)
b)Inferential statistics:Inferential statistics will be used to analyse relationship between variables. This will include at least the following analysis (Chi-square, Pearson’sr,t-test, ANOVA test).
6. Discussion and managerial advises: link your findings to extant literature. Advise the management about the usefulness of the findings.
7. Limitations and directions for future research. Suggestions of how the research can be improved.
8. Include a correctly constructed reference list of all sources used in the project, not just those used in the literature review section. Appendices also should be attached which will include all the analysis and graphs etc. that are not included in the body of the report.
Christmann, P., & Taylor, G XXXXXXXXXXFirm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation.Journal of International Business Studies, 37(6), XXXXXXXXXX.
Du, Y. Z., Yin, J. L., & Zhang, Y. L XXXXXXXXXXHow innovativeness and institution affect ISO 9000 adoption and its effectiveness: evidence from small and medium enterprises in China.Total Quality Management & Business Excellence, 27(11-12), XXXXXXXXXXdoi:10.1080/ XXXXXXXXXX1075874
Fikru, M. G. (2014a). Firm Level Determinants of International Certification: Evidence from Ethiopia.World Development, 64, XXXXXXXXXXdoi:10.1016/j.worlddev XXXXXXXXXX
Fikru, M. G. (2014b). International certification in developing countries: The role of internal and external institutional pressure.Journal of Environmental Management, 144, XXXXXXXXXXdoi:10.1016/j.jenvman XXXXXXXXXX
Fikru, M. G XXXXXXXXXXDeterminants of International Standards in sub-Saharan Africa: The role of institutional pressure from different stakeholders.Ecological Economics, 130, XXXXXXXXXXdoi:10.1016/j.ecolecon XXXXXXXXXX
Nakamura, M., Takahashi, T., & Vertinsky, I XXXXXXXXXXWhy Japanese firms choose to certify: A study of managerial responses to environmental issues.Journal of Environmental Economics and Management, 42(1), XXXXXXXXXXdoi:10.1006/jeem XXXXXXXXXX
Pekovic, S XXXXXXXXXXThe Determinants of ISO 9000 Certification: A Comparison of the Manufacturing and Service Sectors.Journal of Economic Issues (Taylor & Francis Ltd), 44(4), XXXXXXXXXXdoi:10.2753/JEI XXXXXXXXXX
Wu, S. Y., Chu, P. Y., & Liu, T. Y XXXXXXXXXXDeterminants of a firm's ISO 14001 certification: An empirical study of Taiwan.Pacific Economic Review, 12(4), XXXXXXXXXXdoi:10.1111/j XXXXXXXXXX00365.x