The effects of different aspects of ISO 9000 implementation on key supply chain management practices and operational performance

Daniel Indarto Prajogo, Baofeng Huo, Zhaojun Han

Research output: Contribution to journalArticleResearchpeer-review

47 Citations (Scopus)

Abstract

Purpose - The purpose of this paper is to propose and empirically test a model of different aspects of ISO 9000 implementation in terms of their relationships with three key supply chain (SC) management practices (internal processes, supplier relationships, and customer relationships). In addition, it aims to examine the relationship between the three key SC activities and operational performance. Design/methodology/approach - Data were collected from 321 middle and senior managers of ISO 9001 certified firms in Australia who were responsible for managing the quality systems in their organizations. The structural equation modelling (SEM) technique was employed using LISREL software to test the research model and the hypotheses in this study. Findings - The results show that advanced implementation of ISO 9000 is positively related to all three aspects of SC activities (internal, customer, and supplier process management), while supportive implementation is positively related to internal and customer process management. However, basic implementation has no direct influence on any SC management practices. The results also indicate that supplier and internal process management both have a positive effect on operational performance, while customer process management has no significant impact on operational performance. Practical implications - The results provide key insights for managers on the extent to which different aspects of the implementation of a quality management system would produce benefits for the organization within the SC context. Originality/value - Despite the central premises of ISO 9000, which are concerned with internal processes and SC management practices, only a few studies have examined this matter to date. The current study seeks to bridge this gap by examining the effect of ISO 9000 implementation on operational and SC management practices that, in turn, will predict the operational benefits within adopting firms.
Original languageEnglish
Pages (from-to)306 - 322
Number of pages17
JournalSupply Chain Management
Volume17
Issue number3
DOIs
Publication statusPublished - 2012

Cite this

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abstract = "Purpose - The purpose of this paper is to propose and empirically test a model of different aspects of ISO 9000 implementation in terms of their relationships with three key supply chain (SC) management practices (internal processes, supplier relationships, and customer relationships). In addition, it aims to examine the relationship between the three key SC activities and operational performance. Design/methodology/approach - Data were collected from 321 middle and senior managers of ISO 9001 certified firms in Australia who were responsible for managing the quality systems in their organizations. The structural equation modelling (SEM) technique was employed using LISREL software to test the research model and the hypotheses in this study. Findings - The results show that advanced implementation of ISO 9000 is positively related to all three aspects of SC activities (internal, customer, and supplier process management), while supportive implementation is positively related to internal and customer process management. However, basic implementation has no direct influence on any SC management practices. The results also indicate that supplier and internal process management both have a positive effect on operational performance, while customer process management has no significant impact on operational performance. Practical implications - The results provide key insights for managers on the extent to which different aspects of the implementation of a quality management system would produce benefits for the organization within the SC context. Originality/value - Despite the central premises of ISO 9000, which are concerned with internal processes and SC management practices, only a few studies have examined this matter to date. The current study seeks to bridge this gap by examining the effect of ISO 9000 implementation on operational and SC management practices that, in turn, will predict the operational benefits within adopting firms.",
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The effects of different aspects of ISO 9000 implementation on key supply chain management practices and operational performance. / Prajogo, Daniel Indarto; Huo, Baofeng; Han, Zhaojun.

In: Supply Chain Management, Vol. 17, No. 3, 2012, p. 306 - 322.

Research output: Contribution to journalArticleResearchpeer-review

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