Best Article Review

Question

Please read article: “THE EFFECT OF CERTIFICATION WITH THE ISO 9000 QUALITY MANAGEMENT STANDARD: A SIGNALING APPROACH” and write your review in 275 words.

Please don’t exceed 300 words. The article is attached.

Answer

Article Review: The Effect of Certification with the ISO 9000 Quality Management Standard: A Signaling Approach

The article highlights the controversial issue of the impact of ISO 9000 standards on firms’ performance, competitiveness, and operational routine. The author postulates that despite the substantial literature available on these criteria, most of them remain unstudied, and that is why most organizations are yet to embrace them. The few empirical studies that have been conducted reveal that the adoption of ISO standards has some associated benefits that improve the operational performance of those organizations that have been certified (Terlaak & King, 2006). Nonetheless, Terlaak and King (2006) advance the argument that there is no valid reason as to why organizations should go through the distress and expense of obtaining certification when uncertainty still exists in regards to its role and function apart from creating a competitive advantage. The notion that there is no need to seek certification merely to gain operational benefit is backed up by the longitudinal surveys which indicate that there is either a negative relationship or no positive correlation between certification and business performance.

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            Meanwhile, the article supports the theory that certification with a relevant management standard divulges the desirable organizational attributes that may be hidden in addition to providing a competitive advantage. To support this idea, an 11-year panel of 19,713 US manufacturing companies was reviewed, and the results showed that the ISO 9000 standards stimulate growth. This predicament is attributed to the fact that there are varying conditions under which buyers have difficulties in acquiring information from suppliers. As such, this creates the ideal state that instigates competition since consumers are exposed to a variety of vendors. Finally, the article affirms that the majority of the benefits accrued from certification are of internal rather than external nature. For instance, the ISO 9000 standards provide a structure that is centered on providing quality which ultimately guarantees the excellence of all other aspects of the company’s operations.

References

Terlaak, A. & King, A. A. (2006). The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach. Journal of Economic Behavior & Organization60(4), 579-602.

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