Investigating the impact of implementation ISO 9000 on Inventory of Supply Chain

Document Type : Original Article

Author

Professor of Technology Management Faculty of Industrial and Systems Engineering Tarbiate Modares University. Email: rkazem@gmail.com

Abstract

اISO 9000 is an international quality management standard that introduced as key criteria for assessing suppliers, a possibility for international trade, and a requirement for government bids in many countries. Moreover, implementing this standard positively affected processes and internal communication in supply chain organizations. Inventory also plays an important role in cost management in supply chains. It seems that the implementation of this standard could improve inventory indexes in the supply chains. In this paper, 39 companies in the stock market of Iran were used to assess by two indexes of inventory return and inventory to working capital to recognize the effects of ISO 9000 on the supply chain. Results indicated that ISO 9000 had no positive effect on inventory turnover and just caused some minor improvement on inventory to capital turnover in the investigated companies.

Keywords


Barber, B. M., & Lyon, J. D. (1996). Detecting abnormal operating performance: The empirical power and specification of test statistics. Journal of financial Economics, 41(3), 359-399. https://doi.org/10.1016/j.trb.2017.04.003
Corbett, C. J., Montes-Sancho, M. J., & Kirsch, D. A. (2004). The financial impact of ISO 9000 certification in the US: an empirical analysis. UCLA, UCLA Anderson School of Management2004. https://doi.org/1063/j.trb.2005.10.88
Heras, I., Casadesus, M., & Dick, G. P. (2002). ISO 9000 certification and the bottom line: a comparative study of the profitability of Basque region companies. Managerial Auditing Journal. https://doi.org/1018/j.trb.2009.7.16
Kusumah, L. H., & Fabianto, Y. S. (2018). The differences in the financial performance of manufacturing companies in Indonesia before and after ISO 9000 implementation. Total Quality Management & Business Excellence, 29(7-8), 941-957. https://doi.org/1084/j.trb.2022.33.119
Lo, C. K., Yeung, A. C., & Cheng, T. C. E. (2009). ISO 9000 and supply chain efficiency: empirical evidence on inventory and account receivable days. International Journal of Production Economics, 118(2), 367-374. https://doi.org/1039/j.trb.2023.27.56
Montgomery, D. C., & Runger, G. C. (2018). Applied statistics and probability for engineers (p. 720). Hoboken, NJ: Wiley. https://doi.org/1018/j.trb.2003.30.43
Naveh, E., & Marcus, A. (2005). Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000. Journal of operations management, 24(1), 1-26. https://doi.org/1097/j.trb.2007.20.121
Sharma, D. S. (2005). The association between ISO 9000 certification and financial performance. The international journal of accounting, 40(2), 151-172. https://doi.org/1085/j.trb.2021.16.135
Sroufe, R., & Curkovic, S. (2009). An examination of ISO 9000: 2000 and supply chain quality assurance. Quality control and applied statistics, 54(5), 489-493. https://doi.org/1068/j.trb.2009.26.88
Terziovski, M., Power, D., & Sohal, A. S. (2003). The longitudinal effects of the ISO 9000 certification process on business performance. European Journal of operational research, 146(3), 580-595. https://doi.org/1081/j.trb.2015.17.79
Yeung, A. C., Cheng, T. E., & Chan, L. Y. (2004). From customer orientation to customer satisfaction: The gap between theory and practice. IEEE Transactions on Engineering Management, 51(1), 85-97. https://doi.org/1059/j.trb.2019.10.92
Kusumah, L. H., & Fabianto, Y. S. (2018). The differences in the financial performance of manufacturing companies in Indonesia before and after ISO 9000 implementation. Total Quality Management & Business Excellence, 29(7-8), 941-957. https://doi.org/1026/j.trb.2017.23.120
Lo, C. K., Yeung, A. C., & Cheng, T. C. E. (2009). ISO 9000 and supply chain efficiency: empirical evidence on inventory and account receivable days. International Journal of Production Economics, 118(2), 367-374. https://doi.org/1023/j.trb.2005.27.61
Montgomery, D. C., & Runger, G. C. (2018). Applied statistics and probability for engineers (p. 720). Hoboken, NJ: Wiley. https://doi.org/1033/j.trb.2008.29.131
Naveh, E., & Marcus, A. (2005). Achieving competitive advantage through implementing a replicable management standard: Installing and using ISO 9000. Journal of operations management, 24(1), 1-26. https://doi.org/1028/j.trb.2020.17.131
Sharma, D. S. (2005). The association between ISO 9000 certification and financial performance. The international journal of accounting, 40(2), 151-172. https://doi.org/1081/j.trb.2012.6.106
Sroufe, R., & Curkovic, S. (2009). An examination of ISO 9000: 2000 and supply chain quality assurance. Quality control and applied statistics, 54(5), 489-493. https://doi.org/1038/j.trb.2005.9.102
Barber, B. M., & Lyon, J. D. (1996). Detecting abnormal operating performance: The empirical power and specification of test statistics. Journal of financial Economics, 41(3), 359-399. https://doi.org/1040/j.trb.2007.11.60
CAPTCHA Image