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IJQRM
27,7
756
Received July 2009
Revised November 2009
Accepted January 2010
International Journal of Quality &
Reliability Management
Vol. 27 No. 7, 2010
pp. 756-778
q Emerald Group Publishing Limited
0265-671X
DOI 10.1108/02656711011062372
Capitalising on ISO 9001 benefits
for strategic results
Borut Rusjan
Department of Management and Organisation, Faculty of Economics,
University of Ljubljana, Ljubljana, Slovenia, and
Milena Alič
Mercator, d.d., Ljubljana, Slovenia
Abstract
Purpose – The purpose of this paper is to identify and classify potential and verified benefits of
implementing quality management systems (QMSs) according to ISO 9000 standards.
Design/methodology/approach – The research is based on a comprehensive review of the relevant
literature, mostly articles relating to implementation of the ISO 9000 QMS and its impact on customer
satisfaction and business performance.
Findings – The literature adduces possible benefits of the effective implementation of the ISO 9000
QMS and searches for related support in published empirical research. The paper classifies the major
identified and empirically verified benefits into four groups in relation to the balanced scorecard (BSC)
approach to categorising company objectives. It also relates the potential benefits to specific standard
requirements and the pre-conditions that must be met in the implementation stage of the ISO 9001 in
order to attain these benefits.
Research limitations/implications – This study of the benefits has not focused on the standard
releases, so the benefits are not shown separately for each release. Besides, there is less research on the
latest releases (from 2000 and 2008) and thus perhaps none of their benefits has been recognised.
Practical implications – By discussing the standards’ requirements and the implementation
approaches and circumstances that may impact on the effectiveness of the introduced QMS, such as
motives for introducing the QMS and the strategic approach to its implementation, it tries to help
management build their QMS so that potential benefits are realised.
Originality/value – By aggregating the outcome of several research papers the paper paints a “big
picture” of the business benefits of effectively implementing the ISO 9000 QMS, which could be a step
towards further research and help management and practitioners in companies to develop their QMS.
Keywords Quality management, ISO 9000 series, Balanced scorecard
Paper type Literature review
1. Introduction
Quality management systems (QMS) help companies develop and maintain a proper
and stable level of quality of their products by controlling the production process and
other business processes supporting it. The ISO 9000 international quality standards
series (including the standards ISO 9001, ISO 9000 and ISO 9004) provides a
framework for such a management system (QMS). Besides, gaining an ISO 9001
certificate gives companies an opportunity to signal the quality of their business. The
standards are developing approximately every seven years and so are developing their
requirements and expected effects on business performance. In 2008 already the fourth
edition of them was issued (following editions in 1987, 1994 and 2000). The
requirements of the latest two editions of the ISO 9000 more strongly emphasise the
effective implementation of business processes. If properly understood and implemented, ISO 9001 benefits
these requirements bring less bureaucracy and provide a basis for innovative ways of
developing and using QMSs to achieve higher output quality and improvements in
business performance. In this way, the use of standards can help manufacturing and
service organisations to become effective competitors (Raisinghani et al., 2005).
The number of ISO 9001 certified companies has been growing constantly and by
the end of 2007 almost reached 1,000,000 (ISO, 2008a) worldwide. Most companies 757
choose ISO systems because they are forced by their business partners or by
government to do so. Many of these companies search for some economic benefits of
the systems they implement. Further, the new standards have become broader in scope
and allow companies more freedom, which does not automatically lead to more
effective systems. The changes to the standard and the large and still rising number of
its users imply a need to clarify the effects of the ISO 9000 within companies. Much
research was conducted on QMS systems and their effects on business performance in
the 1980s and 1990s, although there has been less research on the last two editions ISO
9001:2000 and ISO 9001:2008. Claims made in research issued before 2002 chiefly
address the effects of previous issues of the standard (before the ISO 9000:2000 was
issued), which is narrower in scope and gives less emphasis to implementing quality
management principles. With the issue of the ISO 9000:2000 requirements like
customer focus, process orientation and continuous improvement are emphasised and
hence more benefits are expected. Therefore, the benefits mentioned in the previous
research (related to older standards) are still relevant (Magd, 2008), but some more
benefits have also been detected in some later papers (Van der Wiele et al., 2005). It is
reported (Van der Wiele et al., 2005) that quality managers have a more positive
perception of the improvement that may be expected from the 2000 version compared
to the 1994 version. Since we suppose that the latest issues of the standard provide at
least the same (or even more) benefits than their older issues, we do not analyse the
effects of particular issues of the standard separately.
The paper presents comprehensive past research related to the impact of
implementing the ISO 9000 standard on company performance. Some past research
concluded there is a significant relationship between the implementation of systems for
quality management and a company’s performance, while other researchers concluded
this relationship is either weak or even non-existent. The purpose of our research is to
synthesise the positive effects of ISO 9000 implementation identified in conceptual and
empirical research and classify these positive effects in different groups of strategic
business benefits in line with the balanced scorecard (BSC) approach (Kaplan and
Norton, 1996). We ground our classification of the ISO QMS benefits on the BSC
approach based on the assumption that QMS objectives should be derived from
strategic goals. We have chosen the BSC for it is a well-known and accepted strategic
management approach to setting strategic goals and measuring results (the
achievement of goals). Therefore, assuming that ISO 9000 systems contribute to the
accomplishment of a company’s business goals where QMS objectives are linked to its
strategic goals, the same BSC goals classification can also be used for QMS objectives
and related benefits.
The research is carried out as a study of theoretical background and empirically
identified existing praxis by studying the literature encompassing previous conceptual
and empirical research on the benefits of ISO 9000 QMS implementation.
IJQRM 2. The relationship of standards to improved business performance
27,7 The core of the ISO 9000 QMS are the requirements enabling the PDCA (Plan, Do,
Check, Act) cycle. These are the requirements for establishing a quality policy and
quality objectives, identifying and documenting processes and tasks, determining
management responsibilities for their execution, analysing the results and taking
action to eliminate deficiencies and make improvements. Although requirements about
758 quality planning in the ISO 9001 standard (which sets the certification criteria) have no
explicit relationship with the business objectives, it is suggested that the quality policy
and objectives should be appropriate to a company’s purpose (ISO 9001, 2008, Ch. 5.3).
Therefore, we can expect that the effects of implementing the ISO 9000 QMS within an
organisation are related to its purpose and goals. Additional suggestions about linking
quality objectives to strategic goals (as a QMS improvement initiative) are found in
other guidance standards (non-obligatory for certification) like the ISO 9004 (ISO 9004,
2000, Ch. 5.1.1) which gives guidance on continuous improvement. The ISO 9004 also
suggests that an organisation seeking success should understand and satisfy the
current and future needs and expectations of present and potential customers and
end-users, as well as understand and consider those of other interested parties (ISO
9004, 2000, Ch. 5.2.2).
An important characteristic of the latest issues of the ISO 9000 standard (after the
year 2000) is thus that they give more emphasis to continuous improvement and on
meeting customers’ needs and achieving their satisfaction by introducing eight quality
management principles which can help companies achieve a better business and
financial performance (Hoyle and Thompson, 2001; Kaynak, 2003[1]; Gotzamani, 2005;
Valls and Vergueiro, 2006) as they are the principles of efficient companies (Waite et al.,
1998, p. 3) reflecting best management practices (Magd and Curry, 2003). The
supplemental standard to the ISO 9000 family – the ISO 10014 – also shows the
expected financial and economic benefits (ISO 10014, 2006, pp. V, 3-9) of the application
of these management principles. It gives some guidance on how to implement them and
how to analyse the level of their implementation.

3. Pre-conditions of QMS implementation leading to improved business

performance
There is a wide range of empirical research related to the impact of implementing the
ISO 9000 QMS on the business performance of companies. Empirical results show that,
if the ISO 9000 standards are well applied (following standard criteria and principles),
they are expected to make a significant improvement to a company’s performance
(Singels et al., 2001) but, in fact, the identified benefits of QMS implementation vary
among companies. The research confirms that implementing the ISO 9000 QMS does
not automatically bring benefits to a company; instead, certain pre-conditions should
be met. Some important ones like motivation and a strategic approach are discussed
below.
Empirical research shows that the motivation for introducing the ISO 9001 coupled
with management support have an important effect on the actual results of
implementing the ISO 9001 (Gore (1994) in Heras et al., 2002; Taylor (1995) in Abraham
et al., 2000; Leung et al., 1999; Singels et al., 2001; Kaynak, 2003; Terziovski et al., 2003;
Jang and Lin, 2008). The impact of quality standards on a company’s competitiveness
and business performance is greater with those companies that were internally
motivated (improvement reasons) to gain ISO 9001 certification (Van der Wiele et al., ISO 9001 benefits
2001). Quality improvement, which represents one of the possible internal motives, has
been identified as the only factor that is substantially correlated with an overall
performance improvement (Gotzamani, 2007). On the contrary, the impact of the ISO
9001 on company performance is smaller in companies that were forced to introduce
the quality standard due to external pressure (marketing reasons). Strong management
commitment and support is also vital for introducing the ISO 9000 successfully 759
(resulting in a positive effect on company performance) (Porter and Tanner, 1996; Rao
et al., 1997; Leland, 2000; Sharma and Gadenne, 2001; Claver et al., 2002). Such
management support is more common where companies are internally motivated to
introduce the QMS.
Companies that are internally motivated to introduce the QMS strive to develop and
maintain an effective and efficient QMS and not to merely obtain the certificate. Such
companies are not only interested in formally meeting the requirements of the ISO
9001, which have to be satisfied in order to receive a certificate, but also in satisfying
the recommendations on continuous improvement set by the ISO 9004. These
recommendations are mainly important for this group of internally motivated
companies. Such companies are also interested in considering the basic quality
management principles, which represent the basis of the correct and effective
implementation of the ISO 9000 QMS (Alič, 2008, pp. 95-99). This means that
companies have to understand the spirit behind standard requirements (Cottman, 1995;
BVQI, 2001, pp. 4.3-4.4).
Besides an internal motivation to introduce the ISO 9001, and management
commitment and support, linking a company’s quality policy and quality objectives to
strategic objectives has a significant impact on the effects of implementing the ISO
9001 on company performance. Empirical research (Vloeberghs and Bellens, 1996; Rao
et al., 1997; Chapman et al., 1997; BVQI, 2001, p. 4.3, Dimara et al., 2004; Sharma and
Gadenne, 2002; Van der Wiele and Brown, 2002; Piskar, 2007) supports this claim,
showing that a QMS contributes to company performance through implementation of a
company’s vision and mission and of strategic goals associated with the two. In this
case, the QMS represents the implementation of a quality strategy that supports the
basic business strategy. Further the ISO 9004 mentions the relationship between the
quality and strategic objectives as a foundation for improving a company’s
performance.

4. Benefits of implementing a QMS

We have emphasised that a QMS can contribute to a company’s efficient performance
if it is effective and connected to its business strategy. The result is an effective QMS,
which enables organisational improvements, rationalisation, business improvements
(especially with a decrease in the cost of bad quality), and an increase in company
incomes that follow the improvements in product quality. Such a system contributes to
achievement of the business goals and an improvement in the overall organisational
performance.
Several authors have studied the motives and positive effects of QMS
implementation. In the rest of the paper we synthesise the ISO 9000 QMS
implementation benefits combining the potential benefits derived from the
requirements of the standard with the claimed motives and benefits derived from
IJQRM conceptual research, and with the empirically verified benefits of QMS implementation
27,7 identified through a literature review. Our synthesis is based on extensive international
and national research (surveys and case studies) from all over the world (Australia,
Belgium, Denmark, Egypt, Hong Kong, Malaysia, The Netherlands, Norway, Pakistan,
Spain, Singapore, Slovenia, Pakistan, the Republic of Ireland, the United Kingdom, the
USA etc).
760 Authors have already made several classifications of the benefits of implementing
the ISO 9000 QMS, such as:
.
internal or external (Lee, 1998; Fuentes et al., 2003);
.
in eight groups related to the eight quality management principles (Valls and
Vergueiro, 2006); and
. in groups (Vloeberghs and Bellens, 1996; Casadesús and Karapetrovic, 2005;
Thawesaengskulthai and Tannock, 2008) related to TQM models (such us
operational results, financial results, benefits for customers, benefits for
workers . . .).

These classifications are close to ours, but none of them is identical to the BSC
classification, which is applied in our research.
The BSC approach divides business objectives into four groups regarding four
perspectives:
(1) customer;
(2) process;
(3) learning and development; and
(4) financial.

We assume that an effectively implemented QMS can contribute to improving a

company’s performance by affecting all four groups of the company’s objectives.
However, the benefits in the fourth group (financial perspective) are largely just a
consequence of the attained benefits from the first three groups. Each group of ISO
9000 QMS implementation benefits is discussed separately according to the BSC
approach in the next four subsections.

4.1 Benefits related to the customer perspective

The ISO 9001 requirements concerning a customer focus (Ch. 5.2), product realisation
(Ch. 7) and improvement (Ch. 8.5) as well as the associated quality management
principles are an important basis for expected QMS implementation benefits (see
Table I) resulting in improved customer satisfaction.
The ISO 9001 requirements and related expected benefits are also reflected in the
claimed and detected motives for introducing the ISO 9000 QMS. Many authors have
identified external (customer-related) motives for implementing an ISO 9000 QMS,
such as:
.
Demands of the external environment: almost all authors investigating motives
for implementing an ISO 9000 QMS (Awan and Bhatti, 2003) have identified this
kind of external motive (demands/requirements of customers, inspectors,
legislation and regulation; companies’ desire to enjoy a good public reputation
 due to having a certificate and thus signalling effective quality management ISO 9001 benefits
practices) which have also been empirically confirmed (Vloeberghs and Bellens,
1996; Anderson et al., 1999; Tarı́ and Molina, 2002; Gotzamani, 2007; Magd,
2008). In fact, several companies expect to be “rewarded” by the environment for
just gaining a certificate (Fuentes et al., 2003).
.
Customer benefits and related motives leading to a company’s better financial
performance: most of the analysed authors (Carlsson and Carlsson, 1996; Porter 761
and Tanner, 1996, pp. 163-164; Buttle, 1997; Jones et al., 1997; Stahl and Grigsby,
1997; Krasachol et al., 1998; Lee, 1998; Sun, 1999; Singels et al., 2001; Douglas
et al., 2003; Llopis and Tari, 2003; Magd and Curry, 2003; Piskar, 2003, pp. 30,
69-70; Mathews, 2005; Gotzamani, 2007; Magd, 2008) have identified such
motives (better product quality, better customer satisfaction, better competitive
position, maintaining and increasing market share) which have also been
empirically confirmed in their research.

Similar benefits as those presented above in relation to the standard requirements and
motives for introducing an ISO have been emphasised by researchers analysing ISO
results. Both benefits important for the customer and resulting benefits for the
company can be found. Examples of benefits for customers are:
.
Ho (1999) emphasises the better applicability of products and services; the saving
of time as no repeated control is needed; higher reliability built upon product
quality; less time spent on searching for new suppliers and choosing them; thus
lower costs for customers and greater customer satisfaction.
.
Mathews (2005) claims that the major benefits of purchasing from ISO
9000-certified companies include better, assured and consistent product and
service quality; prompt and speedy supply (shorter delivery lead time); in this
way there are fewer complaints and a better image for the company. Improved
response to customer complaints is seen as the most significant positive change
in performance demonstrated by certified companies.

Examples of customer-related benefits for the company and its performance which
have been identified are:
(1) Better supplier selection (Magd and Curry, 2003).

Support in the ISO 9001 standard Support in the ISO 9000 standard
Requirements chapter of Description of the Quality management
the standard requirements principles Expected benefits

5.2, 5.4.1, 5.6.3, 6.1, 6.2,
6.3, 6.4, 7.2, 7.4, 7.5.1,
7.5.2, 7.5.4, 7.5.5, 7.6,
8.2.1, 8.2.4, 8.3
Customer focus, Quality 1. Customer focus; Expected and stable
objectives, Resource 6. Continual quality of products and
management, Product improvement; services, fewer non- Table I.
realisation, Customer 8. Mutually conformities of delivered List of ISO 9000
satisfaction, Monitoring beneficial supplier goods and fewer requirements and related
and measurement of relationships complaints received possible (expected)
product, Control of non- from customers, benefits from the
conforming product customer satisfaction customer perspective
IJQRM (2) Consistent and improved product quality (Awan and Bhatti, 2003; Magd and
27,7 Curry, 2003; Mathews, 2005) and improved service quality (Magd and Curry,
2003) based on their continuous improvement (Karapetrovic and Willborn, 2001).
(3) Fewer customer complaints (Awan and Bhatti, 2003).
(4) A faster response to customer demands as an outcome of improvements in
processes related to customers (Burrill, 1999), more harmonious and effective
762 co-operation with clients (Karapetrovic and Willborn, 2001).
(5) Better communication and relationships with customers and suppliers,
documenting customer needs (Valls and Vergueiro, 2006), a better fit with
current customers’ expectations or the identification of new commercial
opportunities (Fuentes et al., 2003).
(6) Increased customer satisfaction (BVQI, 2001, pp. 4.3-4.4; Awan and Bhatti, 2003;
Douglas et al., 2003; Mathews, 2005).
(7) An enhanced company image and reputation and the improved confidence of
customers, both leading to marketing benefits:
.
through improved product quality, productivity and effectiveness ((Grobler,
1995; Rabinovitz, 1998; Ho, 1999; Geraedts et al., 2001; Heras et al., 2002;
Ballantyne, 2005, pp. 20-52; Mathews, 2005);
.
an increase in the credibility of the service and the workers vis-á-vis the
customers (Valls and Vergueiro, 2006);
.
as a result of mouth-to-mouth promotion through satisfied customers
(Burrill, 1999); and
.
by using an ISO certificate as a promotional tool (BVQI, 2001, pp. 4.3-4.4;
Karapetrovic and Willborn, 2001; Magd and Curry, 2003; Fuentes et al.,
2003).
(8) No need for customer audits which are costly for customers (because it is
assumed that their requirements are met).
(9) Customer loyalty (BVQI, 2001, pp. 4.3-4.4).
(10) Increased confidence in the quality services (Karapetrovic and Willborn, 2001)
and a stronger reputation in the eyes of all stakeholders (Douglas et al., 2003).
(11) An improvement in company competitiveness (Karapetrovic and Willborn,
2001) as QMS is used as managerial tool (Taylor, 2004) and quality products are
being delivered (BVQI, 2001, pp. 4.3-4.4).
(12) Higher prices that customers are willing to pay for better products (Calingo,
1996; Burrill, 1999).
(13) Winning more agreements/contracts, increased sales through new customers,
longer contracts with existing customers (Awan and Bhatti, 2003; Douglas et al.,
2003; Mathews, 2005), increased exports (Magd and Curry, 2003), attracting new
customers and simplified negotiations because of the ISO certificate attained
(Karapetrovic and Willborn, 2001).
(14) An expanding market share: Calingo (1996) claims that an improvement in
product quality has a stronger relationship with increases in market share than
does the price.
The above list of benefits from the literature review can be synthesised to form two ISO 9001 benefits
main groups of benefits related to the customer perspective:
(1) Basic:
.
a – improved supplier selection;
.
b – improvement in product and service quality;
.
c – fewer non-conformities of delivered goods and thus fewer complaints 763
received; and
.
d – improved communication and relationships with customers and
suppliers.
(2) Consequential:
.
e – improved customer satisfaction;
.
f – improved image of the company;
.
g – the retention of existing customers and acquisition of new ones; and
.
h – an increased volume of sales.

Results of several surveys and case studies (see Table II) support all of the identified
benefits. As the table shows, an improvement in product/service quality is empirically
the most supported within this group of benefits.

4.2 Benefits related to the perspective of internal processes

This group of possible and expected benefits is based on the ISO 9001 requirements
(Ch. 4-8) ensuring the running of a PDCA (Plan-Do-Check-Act) circle. The implemented
requirements can result in improvements in organising the work and lead to
well-organised and effective business processes (see Table III).
The motives for implementing an ISO 9000 QMS can be associated with the
standard requirements and the related expected possible benefits. Companies reveal
the following kind of (internal) motives related to their internal processes and
operational performance:
.
improved organisation (simplified and standardised processes), control and
effectiveness of the work: most of the motives identified in the reviewed papers
belong to this group, although some authors claim and the empirical research
confirms (Vloeberghs and Bellens, 1996; Sun, 1999; Fuentes et al., 2003; Piskar,
2003, p. 195) that external motives (from the previous section) prevail somewhat
over the internal.

The literature studying ISO results also mentions similar benefits related to
operational performance (the perspective of internal processes):
.
clearer, standardised and simplified work procedures by means of developed and
improved documentation (Magd and Curry, 2003; Valls and Vergueiro, 2006);
.
an improved administrative system among different functional departments; a
reduced amount of paperwork and bureaucracy with better documentation
control (Karapetrovic and Willborn, 2001; Awan and Bhatti, 2003); the
elimination of tasks and bureaucratic routines that do not add value to the QMS
(Valls and Vergueiro, 2006);
IJQRM
Empirically confirmed QMS benefits
27,7 related to the customer perspective
1. Improved supplier selection
2. Improvements in product and service
mix
764
3. Improvement of product and service
quality, quality focus, brand image
4. Improvements in meeting regulations
requirements
5. Improvement in meeting the customers
requirements; the condition for being
present in the market, the ability to be
considered for tenders
6. A decrease in customer complaints
7. Improved communication with
customers
8. Better co-operation with suppliers
9. Customer satisfaction
10. Improved image of the company,
an internationally recognised QMS
Table II. certificate
List of empirically
confirmed QMS positive
effects on the customer 11. Environmental protection
perspective of business 12. Improved public relations
performance
Supported
Reference item
Magd and Curry (2003); Magd (2008) a
Leland (2000); Magd and Curry (2003); b
Singels et al. (2001); Van der Wiele et al.
(2001)
Peach, 1994 in Douglas et al. (2003); Brown b
and Van der Wiele, 1995 in Casadesús and
Karapetrovic (2005); Vloeberghs and
Bellens (1996); Mo and Chanl (1997) in
Awan and Bhatti (2003); Leung et al.
(1999); Ho (1999); Sharma and Gadenne
(2001); Van der Wiele et al. (2001, 2005);
Chow-Chua et al. (2003); Douglas et al.
(2003); Magd and Curry (2003);
Karapetrovic and Willborn (2001); Llopis
and Tari (2003); Casadesús and
Karapetrovic (2005); Mathews (2005);
Piskar (2003, p. 193, 2007); Magd (2008)
Singels et al. (2001) c
Singels et al. (2001); Van der Wiele et al. c
(2001); Pivka (2002); Casadesús and
Karapetrovic (2005);
Lee (1998); Leung et al. (1999); Sun (1999); c
Awan and Bhatti (2003); Casadesús and
Karapetrovic (2005); Piskar (2007)
Sharma and Gadenne (2001); Karapetrovic d
and Willborn (2001); Piskar (2003, p. 193);
Casadesús and Karapetrovic (2005)
Sharma and Gadenne (2001); Claver et al. d
(2002); Casadesús and Karapetrovic (2005)
Brown and Van der Wiele, 1995 in e
Casadesús and Karapetrovic (2005); Mo
and Chanl (1997) in Awan and Bhatti
(2003); Lee (1998); Van der Wiele et al.
(2001, 2005); Chow-Chua et al. (2003); Magd
and Curry (2003); Piskar (2003, p. 193,
2007); Casadesús and Karapetrovic (2005);
Magd (2008); Thawesaengskulthai and
Tannock (2008)
Vloeberghs and Bellens (1996); Awan and f
Bhatti (2003); Chow-Chua et al. (2003);
Magd and Curry (2003); Piskar (2003, p.
193); Thawesaengskulthai and Tannock
(2008); Magd (2008)
Claver et al. (2002) f
Magd and Curry (2003) f
(continued)
 ISO 9001 benefits
Empirically confirmed QMS benefits Supported
related to the customer perspective Reference item

13. Improved confidence (trust), retention
and loyalty of customers
14. Attracting new customers
15. Increased sales volume, better export
possibilities, expanding market share
16. Increased customer profitability
Vloeberghs and Bellens (1996); Ho (1999); g
Leung et al. (1999); Awan and Bhatti
(2003); Piskar (2003, p. 193); Mathews
(2005); Van der Wiele et al. (2005); Piskar 765
(2007)
Lee (1998); Leung et al. (1999); Van der g
Wiele et al. (2005)
Mo and Chanl (1997) in Awan and Bhatti h
(2003); Lee (1998); Ho (1999); Singels et al.
(2001); Awan and Bhatti (2003); Chow-
Chua et al. (2003); Magd and Curry (2003);
Van der Wiele et al. (2005); Piskar (2007);
Magd (2008); Thawesaengskulthai and
Tannock (2008)
Buzzell and Wiersema (1981); Piskar (2007) h Table II.

Support in the ISO 9001 standard Support in the ISO 9000 standard
Requirements Quality
chapter of the Description of the management
standard requirements principles Expected benefits

4.1, 4.2, 5.4, 5.5, 5.6, General QMS requirements, 4. Process Well-organised and
6, 7.5.3, 8 Requirements regarding approach; effective business processes
documentation, Planning, 5. System approach (clear and documented work
responsibility, Authority to management; procedures and
and communication, 3. Involvement of responsibilities, planned Table III.
Management review, people objectives, assured List of ISO 9000
Resource management, resources, measured and requirements and related
Identification and analysed results, actions for possible (expected)
traceability, Measurement, improvements taken) benefits from the
analysis and improvement perspective of internal
processes

.
the strengthening of leadership, improved planning and prioritisation of tasks
and activities, optimisation of the use of available resources (Valls and
Vergueiro, 2006);
.
a better definition of jobs, clear assignation of responsibilities and jobs (Fuentes
et al., 2003); improved management of the site’s resident staff; reduced
management attention required for routine matters and supervision (Awan and
Bhatti, 2003);
.
implemented and improved operational and management control and
supervisory mechanisms including internal and external audits (Karapetrovic
and Willborn, 2001; Douglas et al., 2003), better control of subcontractors (Awan
IJQRM and Bhatti, 2003), systemic and objective monitoring of the quality of all
27,7 products and services implemented and implemented quality tools to detect,
prevent and correct failures (Valls and Vergueiro, 2006);
.
system approach and process improvement (Mathews, 2005) such as an
improved design process (Awan and Bhatti, 2003);
.
a decrease in the inventory of raw materials and finished products as an upshot
766 of a more stable and predictable production process (Burrill, 1999);
.
improved delivery accuracy (Fuentes et al., 2003);
.
a decrease in the number of deficiencies (Fuentes et al., 2003), less scrap and
reduced wastage of materials, decrease in time needed for rework Grobler, 1995;
Rabinovitz, 1998; Ho, 1999; Geraedts et al., 2001; Heras et al., 2002; Awan and
Bhatti, 2003; Douglas et al., 2003; Ballantyne, 2005, pp. 20-52);
.
avoiding repeated control by customers Grobler, 1995; Rabinovitz, 1998; Ho,
1999; Geraedts et al., 2001; Heras et al., 2002; Awan and Bhatti, 2003; Ballantyne,
2005, pp. 20-52) and multiple second-party audits which are costly for the
company BVQI (2001, pp. 4.3-4.4); and
.
improved productivity and effectiveness Grobler, 1995; Calingo, 1996;
Rabinovitz, 1998; Ho, 1999; Geraedts et al., 2001; Heras et al., 2002; Ballantyne,
2005, pp. 20-52) such as shorter lead-time, increased certainty of achieving
contract requirements and deadlines (Awan and Bhatti, 2003), improved delivery
accuracy (Fuentes et al., 2003).
Following the literature review the claimed benefits related to the internal processes
perspective can be grouped in the two groups of benefits:
(1) Basic:
.
a – improved clarity of the procedures (identified and documented
processes, clear task responsibilities, results recorded);
.
b – improved quality planning, control and decision making;
. c – improved processes; and
.
d – a rework and scrap decrease and an improvement in handling them.
(2) Consequential:
.
e – a decrease in external auditing and need for customer control over the
process;
.
f – higher productivity; and
. g – an improvement in process effectiveness.

The reviewed empirical research (see Table IV) supports all of the identified benefits.
All the basic benefits of that group have strong support. Among consequential
benefits, higher productivity is the most frequently mentioned.

4.3 Benefits related to the learning and development perspective

This group of expected benefits is based on the standard requirements – especially
requirements for assuring proper worker capabilities (Ch. 6.2.2) and continuous
improvement (Ch. 8.5) (see Table V).
 ISO 9001 benefits
Empirically confirmed QMS benefits Supported
related to the process perspective Reference item

1. Improvements in clarity of procedures Manchester Business School (1995) in a

– improved documentation (documents Douglas et al. (2003); Porter and Tanner
and records), clear work instructions (1996); Vloeberghs and Bellens (1996); 767
Leung et al. (1999); Sharma and Gadenne
(2001); Chow-Chua et al. (2003); Magd and
Curry (2003); Piskar (2003, p. 193); Magd
(2008); Thawesaengskulthai and Tannock
(2008)
2. Visible company’s organisational Vloeberghs and Bellens (1996); Van der a
structure, clearly defined Wiele et al. (2001); Chow-Chua et al. (2003);
responsibilities, organisational Douglas et al. (2003); Casadesús and
consistency Karapetrovic (2005); Magd (2008)
3. Quality planning – setting quality Claver et al. (2002) b
objectives
4. Improvement of key management Brown and Van der Wiele, 1995 in b
functions, effective leadership Casadesús and Karapetrovic (2005); Awan
and Bhatti (2003); Van der Wiele et al.
(2005)
5. Improved control over processes Leland (2000); Ho (1999); Karapetrovic and b
Willborn (2001); Llopis and Tari (2003);
Singels et al. (2001); Pivka (2002)
6. Improved management control Van der Wiele et al. (2001, 2005) b
7. Improved control over subcontractors Leung et al. (1999); Awan and Bhatti (2003) b
and suppliers
8. Decision making based on facts Claver et al. (2002) b
9. Improvements in work organisation Vloeberghs and Bellens (1996); Sharma c
and work conditions: and Gadenne (2001); Ho (1999);
emphasis on procedural and Karapetrovic and Willborn (2001); Singels
standardised work, less et al. (2001); Pivka (2002); Awan and Bhatti
improvisation, increased (2003); Chow-Chua et al. (2003); Casadesús
co-ordination between different and Karapetrovic (2005); Magd (2008);
functional or departmental areas Thawesaengskulthai and Tannock (2008)
10. Improved information technology Piskar (2003, p. 193) c
support
11. Increased capability of processes and Leung et al. (1999) c
higher production quantities
12. Improved task capability for Awan and Bhatti (2003) c
international operations
13. Reduced process variation and created Devos et al. (1996) in Awan and Bhatti d
process stability (2003); Thawesaengskulthai and Tannock
(2008)
14. Improvements in handling product Devos et al. (1996), Mo and Chan (1997) in d
deficiencies and decrease in work Awan and Bhatti (2003); Lee (1998); Sun
interruptions, scrap and defect rate, (1999); Sharma and Gadenne (2001); Ho Table IV.
shorter response time, reduced rework (1999); Leung et al. (1999); Singels et al. List of empirically
(2001); Awan and Bhatti (2003); Chow- confirmed QMS positive
Chua et al. (2003); Casadesús and effects on the internal
Karapetrovic (2005) processes perspective of
(continued) business performance
IJQRM Empirically confirmed QMS benefits Supported
27,7 related to the process perspective Reference item

15. Less control by customers needed over Leung et al. (1999) e

the process
16. Improved worker productivity Mo and Chan (1997) in Awan and Bhatti f
768 (2003); Seddon (1998); Sun (1999); Sharma
and Gadenne (2001); Ho (1999); Magd and
Curry (2003); Stahl and Grigsby (1997);
Leung et al. (1999); Singels et al. (2001);
Weiler (2004); Frost (2005); DTI (2005);
Pivka (2002); Awan and Bhatti (2003);
Magd (2008)
17. Shorter production time, shorter Leung et al. (1999); Magd and Curry (2003); g
delivery period, meeting the delivery Casadesús and Karapetrovic (2005)
date
18. Improved process effectiveness Leung et al. (1999); Piskar (2003, pp. 3-6); g
Table IV. Awan and Bhatti (2003)

Support in the ISO 9001 standard Support in the ISO 9000 standard
Requirements
chapter of the Description of the Quality management
standard requirements principles Expected benefits

6.2.1, 6.2.2, 7.2.2, Human resources – 3. Involvement of Workers’ learning and

8.5.1 competence, Training and
awareness, Review of
requirements related to the
product, Continual
improvement
4.2.3, 4.2.4, 5.1, 5.4, Documentation
5.5.1, 5.5.3 requirements, Management
commitment, Planning,
Responsibility, authority
and communication
Table V.
List of ISO 9000
requirements and related 5.3, 5.6.3, 7.3, 8.1, Quality policy, output of a
possible (expected) 8.4, 8.5 management review,
benefits regarding the Design and development,
learning and Measurement, analysis and
development perspective improvement
people development, properly
6. Continual skilled workers
improvement
2. Leadership Mission, vision and
3. Involvement of objectives known and
people accepted among the
7. Factual approach workers, Workers well-
to decision making informed (good internal
communication and
exchange of information),
Workers motivated and
committed to their work,
Good relationships among
workers
6. Continual Elimination of causes of
improvement realised deficiencies,
7. Factual approach business improvements
to decision making
 The literature reports different learning and development related (internal) motives ISO 9001 benefits
for implementing an ISO 9000 QMS, such us:
.
an improvement in employee morale and personal accountability for job
performance as a result of employees understanding their role in the total process
(Zhang, 2000);
.
improved internal communication (Awan and Bhatti, 2003); and
769
. an internal improvement of the organisation’s products and processes (Anderson
et al., 1999; Gotzamani, 2007; Magd, 2008).

The literature review has shown several benefits of implementing the QMS related to
the learning and development perspective. They are similar to the motives and
expected benefits mentioned above:
. improved training of all involved (Karapetrovic and Willborn, 2001; Valls and
Vergueiro, 2006), transfer of know-how and individual experiences within the
company (BVQI, 2001, pp. 4.3-4.4; Valls and Vergueiro, 2006), identification of
natural talents and leaders (Valls and Vergueiro, 2006);
.
employee involvement (Mathews, 2005) and improvement in their communication
between various departments of the company (Awan and Bhatti, 2003);
.
improved team spirit and team-work (Awan and Bhatti, 2003; Valls and
Vergueiro, 2006) by cutting out the “blaming mentality” and allowing employees
to focus on problem solving (Devos et al. (1996) in Awan and Bhatti, 2003);
.
enhanced development of quality management (Magd and Curry, 2003) such as
continuous improvement of operational control (Karapetrovic and Willborn, 2001);
.
improved workforce motivation (Magd and Curry, 2003) and employee morale
(Karapetrovic and Willborn, 2001; Awan and Bhatti, 2003) as they are working
more effectively (BVQI, 2001, pp. 4.3-4.4);
.
improved personal job satisfaction (Awan and Bhatti, 2003);
.
ensured personnel loyalty and decreased fluctuation of man power (through a
“built in” system for identification and satisfying training requirements) (BVQI,
2001, pp. 4.3-4.4);
.
a change in the organisational culture, reduced stress among workers (as they
clearly know what the company expects from them) (Valls and Vergueiro, 2006);
.
establishment of a culture of continuous improvement, including the use of quality
tools to detect, prevent and correct failures (Valls and Vergueiro, 2006); and
. building a competitive advantage by continuous improvements in processes
related to customers (Burrill, 1999) and by continuous improvements in the
service (Karapetrovic and Willborn, 2001) and product quality (Mathews, 2005).

The results of the literature review yield the following groups of benefits related to the
learning and development perspective:
(1) Basic:
.
a – increased qualification of employees for the implementation of work
tasks;
IJQRM .
b – increased transfer and dissemination of knowledge among employees;
27,7 .
c – improved communication and relationship among employees;
.
d – commitment to a quality and better work morale; and
.
e – continuous improvement in quality management.
(2) Consequential:
770 .
f – improved work motivation and satisfaction of the employees; and
.
g – innovations and building of a competitive advantage.

The results of the reviewed empirical research (see Table VI) support all of the
identified benefits. Employees’ commitment to quality and continuous improvement
are perceived as the most frequently noticed ones.

4.4 Financial benefits

There are no direct requirements for gaining financial benefits in the ISO 9001
standard, but these benefits can be attained by realising the “customer focus” (Ch. 5.2)
and “improvement” (Ch. 8.5) requirements and the underlying quality management
principles. Empirical research has confirmed that companies most concerned about
their customers can improve their competitive position and financial results (revenue,
yield etc) (Tarı́ and Molina, 2002).
The literature review highlights the following financial motives for implementing
an ISO 9000 QMS:
.
to reduce liability risks and insurance cost (Haversjo (2000) in Awan and Bhatti,
2003); and
.
to improve financial performance and thus efficiency: these motives (lower
costs, higher incomes, higher profitability, company growth) were mentioned
by only some authors (Carlsson and Carlsson, 1996; Sun, 1999; Awan and
Bhatti, 2003; Fuentes et al., 2003; Llopis and Tari, 2003; Piskar, 2003, p. 70;
Magd, 2008). Decreasing costs is the most frequently mentioned motive within
this group of researchers.

Authors have recognised the following benefits of implementing the QMS for a
company’s financial performance:
.
reduced operating costs through a reduction in design failures and reworks
(Awan and Bhatti, 2003; Fuentes et al., 2003 – upon a literature review), better
organisation of work (Burrill, 1999), reduction of quality costs and increased
efficiency (Karapetrovic and Willborn, 2001; Douglas et al., 2003) achieved as a
result of enhancing prevention versus correction (BVQI, 2001, pp. 4.3-4.4);
.
added value (Karapetrovic and Willborn, 2001), higher profit margins, sales per
employee (Douglas et al., 2003) as quality products are being delivered (BVQI,
2001, pp. 4.3-4.4);
.
better financial planning and control (Mathews, 2005); and
.
increased control of costs and expenses and reduced costs of rework and waste
(Valls and Vergueiro, 2006).
 ISO 9001 benefits
Empirically confirmed QMS benefits
related to the learning and development Supported
perspective Reference item

1. Increased qualification of employees Ho (1999); Karapetrovic and Willborn a

for the implementation of work tasks (2001); Sharma and Gadenne (2001);
Kostman and Schiemann (2005); Mathews 771
(2005)
2. Better transfer and dissemination of Ho (1999); Magd (2008) b
knowledge among employees
3. Improved communication and Trebar and Brun (1993); Lee (1998); Leung c
relationship among employees, fewer et al. (1999); Sharma and Gadenne (2001);
staff conflicts Claver et al. (2002); Magd and Curry (2003);
Magd (2008)
4. Enhancing team work, improved team Lee (1998); Leung et al. (1999); Claver et al. c
spirit (2002); Casadesús and Karapetrovic (2005);
5. Improved worker awareness of Brown and Van der Wiele (1995) in d
problems and commitment to quality Casadesús and Karapetrovic (2005); Van
and improvement der Wiele et al. (2001); Awan and Bhatti
(2003); Chow-Chua et al. (2003); Douglas
et al. (2003); Magd and Curry (2003); Magd
(2008)
6. Involvement of all employees in Ho (1999); Sharma and Gadenne (2001); d
meeting quality objectives Claver et al. (2002); Casadesús and
Karapetrovic (2005); Mathews (2005);
Thawesaengskulthai and Tannock (2008)
7. Improved work morale and Mo and Chan (1997) in Awan and Bhatti d
commitment to the company (2003); Claver et al. (2002); Karapetrovic
and Willborn (2001); Porter and Tanner
(1996); Pivka (2002); Piskar (2003, p. 193)
8. QMS development on the basis of Mo and Chan (1997) in Awan and Bhatti e
continuous improvement (2003); Magd and Curry (2003); Llopis and
Tari (2003); Van der Wiele et al. (2005);
Magd (2008); Thawesaengskulthai and
Tannock (2008)
9. Provided rewards and recognition for Thawesaengskulthai and Tannock (2008) f
the work of the employees
10. Improved work motivation and Ho (1999); Singels et al. (2001); Magd and f
satisfaction of the employees Curry (2003); Piskar (2003, p. 193);
Mathews (2005); Magd (2008)
11. Better social standing of employees and Karapetrovic and Willborn (2001); Claver f
employment stability et al. (2002)
12. Decreased absence and fluctuation of Leung et al. (1999); Chow-Chua et al. (2003); f
employees Van der Wiele et al. (2005)
13. Enhancing business improvements, Porter and Tanner (1996); Krasachol et al. g Table VI.
more improvement suggestions (1998); Leung et al. (1999); Karapetrovic List of empirically
developed by employees (workers) and Willborn (2001); Sharma and Gadenne confirmed QMS positive
resulting in process optimisation and (2001); Claver et al. (2002); Casadesús and effects on the learning
better product/service quality Karapetrovic (2005); Frost (2005); DTI and development
(2005); Mathews (2005); perspective of business
Thawesaengskulthai and Tannock (2008) performance
IJQRM These benefits lead to the following:
27,7 .
improved efficiency of the QMS (Grobler, 1995; Rabinovitz, 1998; Ho, 1999;
Geraedts et al., 2001; Heras et al., 2002; Awan and Bhatti, 2003; Magd and Curry,
2003; Ballantyne, 2005, pp. 20-52) as a contribution to improved company
performance including the attainment of business goals and thus a contribution
to improved efficiency (shown in, for example, higher profitability);
772 .
improved efficiency (Taylor, 2004), profitability of the company (BVQI, 2001,
pp. 4.3-4.4; Mathews, 2005) and higher profit per employee than the industry
average (Douglas et al., 2003): However, profitability has not been affected much
by certification itself (Mathews, 2005); and
.
maximised yields (Karapetrovic and Willborn, 2001).

The claimed benefits from the literature review related to the achievement of economic
goals and improved financial performance can be synthesised to form the following
groups of benefits:
(1) Basic:
.
a – decreased cost – based on a decrease in scrap, material wastage and
customer complaints, improvements of processes, their effectiveness and
product quality and thus a decrease in operational costs; and
. b – increased income – based on improved products and services.
(2) Consequential:
.
c – improved profitability; and
.
d – improved owner satisfaction.

The reviewed empirical research (see Table VII) supports all of the identified benefits.
There is some more evidence confirming cost savings compared to evidence
confirming higher incomes as a result of implementing an ISO 9000 QMS.

5. Conclusion
The paper has discussed the benefits of implementing the ISO 9000 QMS in relation to
standard requirements and important factors (such as motivation for implementation,
management support and strategic approach), which must be considered and assured
when implementing the ISO 9001 in order to achieve those benefits.
Based on our analysis of published research we may conclude that the ISO 9000
QMS affects all four groups of a company’s objectives defined in the BSC approach.
The basis for attaining benefits related to all four groups of company objectives is
given in the requirements of the ISO 9001 and ISO 9004 standards themselves as well
as in the underlying quality management principles. Further, the motives and benefits
of implementing an ISO 9000 QMS related to all four groups of objectives, such as
assuring the satisfaction of customers, effective process implementation, employee and
business development and positive financial effects through lower cost, higher income,
higher profit and return on assets have been reported in the literature. Finally, benefits
associated with all four groups of objectives have also been empirically confirmed.
Potential and actual benefits identified through our research have also been claimed
in the latest reports of national and international certification bodies (Tobon, 2009).
 ISO 9001 benefits
Empirically confirmed QMS benefits Supported
related to the financial perspective Reference item

1. Decrease in actual and potential
damage due to identified non-
conformities (actual and potential costsLeung et al. (1999); BVQI (2001, pp. 4.3-4.4);
or loss of income)
2. Savings and a decrease in operational Ho (1999); Leung et al. (1999); Karapetrovic
costs resulting from a continuous
improvement of the QMS
3. Higher incomes, sales per employee
and asset turnover resulting from
better product quality and from
signalling the quality by a certificate and Willborn (2001); Foster and Jonker
4. Improved performance/efficiency,
profitability, return on investment
Porter and Tanner (1996); Stahl and a
Grigsby (1997); Seddon (1998); Lee (1998);
Sharma and Gadenne (2001); Karapetrovic
and Willborn (2001); Singels et al. (2001);
773
Awan and Bhatti (2003); Chow-Chua et al.
(2003); Magd and Curry (2003); Dimara
et al. (2004); Thawesaengskulthai and
Tannock (2008)
a
and Willborn (2001); Foster and Jonker
(2003); Van der Wiele et al. (2005); Dimara
et al. (2004); Mathews (2005)
Buzzell and Wiersema (1981); Devos et al. b
(1996) in Awan and Bhatti (2003); Ho
(1999); Leung et al. (1999); Karapetrovic
(2003); Van der Wiele et al. (2005); Dimara
et al. (2004); Weiler (2004); Mathews (2005);
Thawesaengskulthai and Tannock (2008)
Buttle (1996b) in Douglas et al. (2003); c, d
Devos et al. (1996) in Awan and Bhatti
(2003); Porter and Tanner (1996); Leung
et al. (1999); Ho (1999); Sun (1999);
Karapetrovic and Willborn (2001); Singels
et al. (2001); Alič (2003); Awan and Bhatti Table VII.
(2003); Chow-Chua et al. (2003); Douglas List of QMS positive
et al. (2003); Piskar (2003, p. 193); Foster effects on financial
and Jonker (2003); Dimara et al. (2004); performance upon a
Taylor (2004); Magd (2008); review of the previous
Thawesaengskulthai and Tannock (2008) empirical research

However, a concern remains of how to stimulate companies to develop and maintain

their QMS in such a way that the mentioned benefits are attained (Muir, 2009).
Similarly to our findings, the certification bodies emphasise that what matters is
defining clear business goals of a company and using the QMS to achieve specific
business objectives linked to them (Moritomo, 2009).
Therefore, by confirming our initial assumption that the ISO 9001 QMS has an
impact on all four groups of strategic objectives, we have also confirmed the need to
appropriately integrate the QMS system into the strategic planning of the company.
The standard itself requires the introduction of ISO as a strategic decision (ISO, 2008b,
p. v) of the company, but the question that remains is how to clearly connect ISO 9001
implementation with the business strategy: how should the ISO 9001 receive the
appropriate input from the business strategy, implement part of the business strategy,
and then feed its output results achieved through implementation of ISO-related levers
back as the planning input of a new business strategy decision-making cycle. We may
conclude that further research is needed on the important theoretical and empirical
IJQRM research question dealing with integration of the ISO 9000 into the strategic
27,7 management of companies.
The ISO 9000 standard is developing every few years and hence its evolution may
affect the benefits of its implementation. In this study the benefits of different releases
of the ISO 9000 have not been shown separately. We assume that newer releases of the
standard include at least the same possible benefits as the older ones. Since there is less
774 research related to the latest releases of the standard (from 2000 and 2008), some
possible new benefits of these releases may not have been recognised or emphasised.
Accordingly, further research is called for on ISO 9000 benefits based on the recently
released standard – the ISO 9001:2008.

Note
1. An extensive review of previous work and an empirical research confirms that different
quality principles directly or indirectly affect the performance of a company.

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Further reading
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About the authors

Borut Rusjan received MSc and PhD degrees from the University of Ljubljana. He is Associate
Professor in Operations Management. His research interest focus is on operations strategy and
the application of quality management systems (ISO 9000) and business excellence models
(EFQM model). He has published more than ten papers in refereed journals including: Total
Quality Management & Business Excellence, International Journal of Operations & Production
Management, European Journal of Operational Research. He is a member of the editorial review
board of the Quality Management Journal.
Milena Alič received MSc and PhD degrees from the University of Ljubljana. She received the
2008 Emerald/EFMD Outstanding Doctoral Research Award for her research “Contribution of
the ISO 9001 Internal Audit to the Achievement of Business Goals: the case of the Company
Mercator”. She works for Mercator, the biggest Slovenian retailing company, as a project leader
in the development and maintenance of quality management systems. Milena Alič is the
corresponding author and can be contacted at: milena.alic@mercator.si

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