A Study of The Correlation of The ISO-9000 Quality Control Program on The Financial Results of Information Technology Companies Who Have Achieved ISO-9000 Certification

• Main Author: Williams, John W.
• Published: NSUWorks 2001
• Subjects: Computer Sciences
• Online Access: http://nsuworks.nova.edu/gscis_etd/925

In Europe, the ISO·9000 series of standards has become the entry barrier for companies doing business with the Economic Union (EU). Given the globalization of international trade, a large percentage of American companies are incurring additional expenses in seeking ISO-9000 quality registration as both a symbol of their commitment to quality and quality products and as a method to enhance productivity. This research examined the research question" To what extent does a company becoming ISO 9000 certified improve their financial performance in the years immediately after certification?" To address this question two research hypotheses and two null hypotheses were developed. The first null hypothesis was "there is no significant difference between ISO 9000 certified companies and non-ISO 9000 certified companies, on a set of financial performance indicators considered simultaneously, over the five year period prior to certification. The first research hypothesis was "There is a significant difference between ISO 9000 certified companies and non-ISO 9000 certified companies, on a set of financial performance indicators considered simultaneously, over the five year period prior to certification. The second null hypothesis was "There is no significant difference between ISO 9000 certified companies and non-ISO 9000 certified companies, on a set of financial performance indicators considered simultaneously, during the three year period after becoming certified." The second research hypothesis was "There is a significant difference between ISO 9000 certified companies and non-ISO 9000 certified companies, on a set of financial performance indicators considered simultaneously, during the three year period after becoming certified." Results from analysis concluded that the first null hypothesis was rejected; there was a significant difference at the multivariate level across the groups in the five-year period immediately preceding ISO -- 9000 certification. More significantly, the second null hypothesis was not rejected. There was not enough evidence to conclude that a significant difference exists in the four-year financial performance indicators between the selected software companies that are ISO 9000 Certified compared with those selected software companies that are not ISO 9000 Certified.