Advertisement

A Supply Chain View on Certification Standards: Does Supply Chain Certification Improve Performance Outcomes?

  • Frank Wiengarten
  • George OnofreiEmail author
  • Paul Humphreys
  • Brian Fynes
Chapter
Part of the Measuring Operations Performance book series (MEOP)

Abstract

This paper aims to report the results of an empirical study, examining the perceived performance implications of quality, environmental and occupational health and safety certifications (i.e., ISO 9001, ISO 14001, and OHSAS 18001) at the supply chain level considering certifications of both the buyer and supplier. To assess the perceived performance implication of certifications at the supply chain level we collected survey data in Ireland from manufacturing plants. Our results indicate that certifications at the supply chain level lead to higher perceived performance outcomes for environmental certifications (i.e., ISO 14001) and occupational health and safety certifications (i.e., OHSAS 18001). However, our results could not confirm our hypothesis that quality certification (i.e., 9001) at the supply chain level leads to higher perceived quality performance. This study represents one of the first attempts to assess the impact of certifications on its intended performance dimensions at the supply chain level. The research takes into consideration different certifications at both the buyer’s and supplier’s plant.

Keywords

ISO 9001 ISO 14001 OHSAS 18001 Performance management Buyer and supplier certification 

References

  1. Abad J, Dalmau I, Vilajosana J (2014) Taxonomic proposal for integration levels of management systems based on empirical evidence and derived corporate benefits. J Clean Prod 78(1):164–173CrossRefGoogle Scholar
  2. Abad J, Lafuente E, Vilajosana J (2013) An assessment of the OHSAS 18001 certification process: objective drivers and consequences on safety performance and labour productivity. Saf Sci 60:47–56CrossRefGoogle Scholar
  3. Arimura TH, Darnall N, Ganguli R, Katayama H (2016) The effect of ISO 14001 on environmental performance: resolving equivocal findings. J Environ Manage 166:556–566CrossRefGoogle Scholar
  4. Arimura TH, Darnall N, Katayama H (2011) Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management. J Environ Econ Manage 61(2):170–182CrossRefGoogle Scholar
  5. Arimura TH, Hibiki A, Katayama H (2008) Is a voluntary approach an effective environmental policy instrument? A case for environmental management systems. J Environ Econ Manage 55(3):281–295CrossRefGoogle Scholar
  6. Bansal P, Roth K (2000) Why companies go green: a model of ecological responsiveness. Acad Manage J 43(4):717–736CrossRefGoogle Scholar
  7. Barla P (2007) ISO 14001 certification and environmental performance in Quebec’s pulp and paper industry. J Environ Econ Manage 53(3):291–306CrossRefGoogle Scholar
  8. Benner MJ, Veloso FM (2008) ISO 9000 practices and financial performance: a technology coherence perspective. J Oper Manage 26(5):611–629CrossRefGoogle Scholar
  9. Bernardo M, Casadesus M, Karapetrovic S, Heras I (2009) How integrated are environmental, quality and other standardized management systems? An empirical study. J Clean Prod 17(8):742–750CrossRefGoogle Scholar
  10. Blackman A (2012) Does eco-certification boost regulatory compliance in developing countries? ISO 14001 in Mexico. J Regul Econ 42(3):242–263CrossRefGoogle Scholar
  11. Boiral O, Henri JF (2012) Modelling the impact of ISO 14001 on environmental performance: a comparative approach. J Environ Manage 99:84–97CrossRefGoogle Scholar
  12. Bottani E, Monica L, Vignali G (2009) Safety management systems: performance differences between adopters and non-adopters. Saf Sci 47(2):155–162CrossRefGoogle Scholar
  13. Burgen S, Phillips T (2011) Zara Accused in Brazil Sweatshop Inquiry [Online]. Available: http://www.theguardian.com/world/2011/aug/18/zara-brazil-sweatshop-accusation [Accessed 22/04/2016]
  14. Campos LM, de Melo Heizen DA, Verdinelli MA, Miguel PAC (2015) Environmental performance indicators: a study on ISO 14001 certified companies. J Clean Prod 99:286–296CrossRefGoogle Scholar
  15. Chang J.I. and Liang C.L. (2009), “Performance evaluation of process safety management systems of paint manufacturing facilities”, Journal of Loss Prevention in the Process Industries, Vol. 22 No., pp. 398–402Google Scholar
  16. Castka P, Balzarova M (2008) The impact of ISO 9000 and ISO 14000 on standardisation of social responsibility—an inside perspective. Int J Prod Econ 113(1):74–87CrossRefGoogle Scholar
  17. Chatzoglou P, Chatzoudes D, Kipraios N (2015) The impact of ISO 9000 certification on firms’ financial performance. Int J Oper Prod Manage 35(1):145–174CrossRefGoogle Scholar
  18. Chen CC (2005) Incorporating green purchasing into the frame of ISO 14000. J Clean Prod 13(9):927–933CrossRefGoogle Scholar
  19. Chiarini A (2012) Designing an environmental sustainable supply chain through ISO 14001 standard. Manage Environ Qual Int J 24(1):16–33CrossRefGoogle Scholar
  20. Choi T, Fan D, Lo CK (2012) A tough pill to swallow? The impact of voluntary occupational health and safety management system on firms’ financial performance in fashion and textiles industries. J Fashion Market Manag: Int J 16(2):128–140Google Scholar
  21. Choi TY, Hong Y (2002) Unveiling the structure of supply networks: case studies in Honda, Acura, and DaimlerChrysler. J Oper Manage 20:469–493CrossRefGoogle Scholar
  22. Cole RE (1998) Learning from the quality movement: what did and didn’t happen and why? Calif Manage Rev 41(1):43–73CrossRefGoogle Scholar
  23. Corbett CJ, Montes-Sancho MJ, Kirsch DA (2005) The financial impact of ISO 9000 certification in the United States: AN empirical analysis. Manage Sci 51(7):1046–1059CrossRefGoogle Scholar
  24. Curkovic S, Melnyk S, Handfield R, Calantone R (2000) Investigating the linkage between total quality management and environmentally responsible manufacturing. IEEE Trans Eng Manage 47(4):444–464CrossRefGoogle Scholar
  25. Curkovic S, Sroufe R (2011) Using ISO 14001 to promote a sustainable supply chain strategy. Bus Strategy Environ 20(2):71–93CrossRefGoogle Scholar
  26. Darnall N, Jolley GJ, Handfield R (2008) Environmental management systems and green supply chain management: complements for sustainability? Bus Strategy Environ 17(1):30–45CrossRefGoogle Scholar
  27. De Vries HJ, Bayramoglu DK, van der Wiele T (2012) Business and environmental impact of ISO 14001. Int J Qual Reliab Manage 29(4):425–435CrossRefGoogle Scholar
  28. Dick G (2000) ISO 9000 certification benefits, reality or myth? The TQM Mag 12(6):365–371CrossRefGoogle Scholar
  29. Dick GP, Heras I, Casadesús M (2008) Shedding light on causation between ISO 9001 and improved business performance. Int J Oper Prod Manage 28(7):687–708CrossRefGoogle Scholar
  30. ESB (2016) ESB Supplier Charter (online). Available: https://www.esb.ie/docs/default-source/procurement/esb-supplier-charter. Accessed 11 Apr 2016
  31. Fernández-Muñiz B, Montes-Peón JM, Vázquez-Ordás CJ (2009) Relation between occupational safety management and firm performance. Saf Sci 47(7):980–991CrossRefGoogle Scholar
  32. Fernández-Muñiz B, Montes-Peón JM, Vázquez-Ordás CJ (2012a) Occupational risk management under the OHSAS 18001 standard: analysis of perceptions and attitudes of certified firms. J Clean Prod 24:36–47CrossRefGoogle Scholar
  33. Fernández-Muñiz B, Montes-Peón JM, Vázquez-Ordás CJ (2012b) Safety climate in OHSAS 18001-certified organisations: antecedents and consequences of safety behaviour. Accid Anal Prev 45:745–758CrossRefGoogle Scholar
  34. Gray JV, Anand G, Roth AV (2015) The influence of ISO 9000 certification on process compliance. Prod Oper Manage 24(3):369–382CrossRefGoogle Scholar
  35. Grimm JH, Hofstetter JS, Sarkis J (2014) Critical factors for sub-supplier management: A sustainable food supply chains perspective. Int J Prod Econ 152(1):159–173CrossRefGoogle Scholar
  36. Gualandris J, Kalchschmidt M (2014) Customer pressure and innovativeness: their role in sustainable supply chain management. J Purch Supply Manage 20(2):92–103CrossRefGoogle Scholar
  37. Gualandris J, Kalchschmidt M (2016) Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust. Int J Prod Res 54(8):1–17CrossRefGoogle Scholar
  38. Guler I, Guillen MF, Macpherson JM (2002) Global competition, institutions, and the diffusion of organizational practices: the international spread of the ISO 9000 quality certificates. Adm Sci Q 47(2):207–232CrossRefGoogle Scholar
  39. Han SB, Chen SK, Ebrahimpour M (2007) The impact of ISO 9000 on TQM and business performance. J Bus Econ Stud 13(2):1–23Google Scholar
  40. Handfield R, Sroufe R, Walton S (2005) Integrating environmental management and supply chain strategies. Bus Strategy Environ 14(1):1–19CrossRefGoogle Scholar
  41. Hohnen P, Hasle P (2011) Making work environment auditable—a ‘critical case’ study of certified occupational health and safety management systems in Denmark. Saf Sci 49:1022–1029CrossRefGoogle Scholar
  42. Hora M, Bapuji H, Roth AV (2011) Safety hazard and time to recall: The role of recall strategy, product defect type, and supply chain player in the US toy industry. J Oper Manage 29(7–8):766–777CrossRefGoogle Scholar
  43. Huo B, Han Z, Prajogo D (2014) The effect of ISO 9000 implementation on flow management”. Int J Prod Res 52:6467–6481CrossRefGoogle Scholar
  44. Hutcheson G, Sofroniou N (1999) The multivariate social scientist: introductory statistics using generalized linear models. Sage Publications, Thousand OaksCrossRefGoogle Scholar
  45. Hwang I, Radhakrishnan S, Su L (2006) Vendor certification and appraisal: implications for supplier quality. Manag Sci 52(10):1472–1482CrossRefGoogle Scholar
  46. ISO Central Secretariat (2009a) Selection and use of the ISO 9000 family of standards. http://www.iso.org/iso/iso_9000_selection_and_use-2009.pdf. 22 Sept 2015
  47. ISO Central Secretariat (2009b) Environmental management – The ISO 14000 family of international standards. http://www.iso.org/iso/theiso14000family_2009.pdf. 22 Sept 2015
  48. King AA, Lenox MJ, Terlaak A (2005) The strategic use of decentralized institutions: Exploring certification with the ISO 14001 management standard. Acad Manag J 48(6):1091–1106CrossRefGoogle Scholar
  49. Klassen R, Vachon S (2003) Collaboration and evaluation in the supply chain: the impact on plant-level environmental investment. Prod Oper Manage 12(3):336–352CrossRefGoogle Scholar
  50. Kline P (1979) Psychometrics and psychology. Acaderric Press, LondonGoogle Scholar
  51. Koplin J, Seuring S, Mesterharm M (2007) Incorporating sustainability into supply management in the automotive industry—the case of the Volkswagen AG. J Clean Prod 15(11–12):1053–1062CrossRefGoogle Scholar
  52. Krause DR, Handfield RB, Tyler BB (2007) The relationships between supplier development, commitment, social capital accumulation and performance improvement. J Oper Manage 25:528–545CrossRefGoogle Scholar
  53. Lafuente E, Bayo-Moriones A, García-Cestona M (2010) ISO-9000 certification and ownership structure: effects upon firm performance. Br J Manage 21(3):649–665CrossRefGoogle Scholar
  54. Lam PT, Chan EH, Chau C, Poon C, Chun K (2011) Environmental management system vs green specifications: how do they complement each other in the construction industry? J Environ Manage 92:788–795CrossRefGoogle Scholar
  55. Lambert DM, Cooper MC (2000) Issues in supply chain management. Ind Mark Manage 29:65–83CrossRefGoogle Scholar
  56. Lee AH, Kang HY, Hsu CF, Hung HC (2009) A green supplier selection model for high-tech industry. Expert Syst Appl 36(4):7917–7927CrossRefGoogle Scholar
  57. Levine DI, Toffel MW (2010) Quality management and job quality: how the ISO 9001 standard for quality management systems affects employees and employers. Manage Sci 56(6):978–996CrossRefGoogle Scholar
  58. Lo CK, Pagell M, Fan D, Wiengarten F, Yeung AC (2014) OHSAS 18001 certification and operating performance: the role of complexity and coupling. J Oper Manage 32:268–280CrossRefGoogle Scholar
  59. Lo CK, Wiengarten F, Humphreys P, Yeung AC, Cheng T (2013) The impact of contextual factors on the efficacy of ISO 9000 adoption. J Oper Manage 31:229–235CrossRefGoogle Scholar
  60. Lund-Thomsen P, Lindgreen A (2014) Corporate social responsibility in global value chains: where are we now and where are we going? J Bus Ethics 123(1):11–22CrossRefGoogle Scholar
  61. Maloni MJ, Brown ME (2006) Corporate social responsibility in the supply chain: an application in the food industry. J Bus Ethics 68(1):35–52CrossRefGoogle Scholar
  62. Marshall D, McCarthy L, McGrath P, Claudy M (2016) Going above and beyond: How sustainability culture and entrepreneurial orientation drive social sustainbility supply chain practice adoption. Supply Chain Manage Int J 20(4):434–454CrossRefGoogle Scholar
  63. Melnyk SA, Sroufe RP, Calantone RJ (2003) A model of site-specific antecedents of ISO 14001 certification. Prod Oper Manage 12(3):369–385CrossRefGoogle Scholar
  64. Meyer JW, Rowan B (1977) Institutionalized organizations: formal structure as myth and ceremony. Am J Sociol 83(2):340–363CrossRefGoogle Scholar
  65. Montabon F, Sroufe R, Narasimhan R (2007) An examination of corporate reporting, environmental management practices and firm performance. J Oper Manage 25(5):998–1014CrossRefGoogle Scholar
  66. Morris PW (2006) ISO 9000 and financial performance in the electronics industry. J Am Acad Bus 8(2):227–235Google Scholar
  67. Nawrocka D, Brorson T, Lindhqvist T (2009) ISO 14001 in environmental supply chain practices. J Clean Prod 17(16):1435–1443CrossRefGoogle Scholar
  68. Nishitani K, Kaneko S, Fujii H, Komatsu S (2012) Are firms’ voluntary environmental management activities beneficial for the environment and business? An empirical study focusing on Japanese manufacturing firms. J Environ Manage 105:121–130CrossRefGoogle Scholar
  69. Norrman A, Jansson U (2004) Ericsson’s proactive supply chain risk management approach after a serious sub-supplier accident. Int J Phys Distrib Logist Manage 34(5):434–456CrossRefGoogle Scholar
  70. Nunnally JC (1978) Psychometric theory. McGraw Hill, New YorkGoogle Scholar
  71. OHSAS Project Group (2011) Results of the survey into the availability of OH&S standards and certificates, up until 2009-12-31. http://ohsas18001expert.com/wp-content/uploads/2011/05/2009-OHSAS-Certificates-Survey-Results.pdf. Assessed on 07 Feb 13
  72. Pagell M, Shevchenko A (2014) Why research in sustainable supply chain management should have no future. J supp chain manag 50(1):44–55Google Scholar
  73. Pagell M, Wu Z, Wasserman ME (2010) Thinking differently about purchasing portfolios: an assessment of sustainable sourcing. J Supply Chain Manage 46(1):57–73CrossRefGoogle Scholar
  74. Podsakoff PM, MacKenzie SB, Lee J, Podsakoff NP (2003) Common method bias in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88(5):879–903CrossRefGoogle Scholar
  75. Potoski M, Prakash A (2005) Covenants with weak swords: ISO 14001 and facilities’ environmental performance. J Policy Anal Manage 24(4):745–769CrossRefGoogle Scholar
  76. Prajogo D, Huo B, Han Z (2012) The effects of different aspects of ISO 9000 implementation on key supply chain management practices and operational performance. Supply Chain Manage Int J 17(3):306–322CrossRefGoogle Scholar
  77. Psomas EL, Pantouvakis A, Kafetzopoulos DP (2013) The impact of ISO 9001 effectiveness on the performance of service companies. Manage Serv Qual Int J 23(2):149–164CrossRefGoogle Scholar
  78. Qi G, Zeng S, Yin H, Lin H (2013) ISO and OHSAS certifications: how stakeholders affect corporate decisions on sustainability. Manage Decis 51:1983–2005CrossRefGoogle Scholar
  79. Qi Y, Zhao X, Sheu C (2011) The impact of competitive strategy and supply chain strategy on business performance: the role of environmental uncertainty. Decision Sci 42(2):371–389Google Scholar
  80. Rosenzweig ED, Roth AV (2004) Towards a theory of competitive progression: evidence from high‐tech manufacturing. Prod Oper Manag 13(4):354–368Google Scholar
  81. Sharma DS (2005) The association between ISO 9000 certification and financial performance. Int J Account 40(2):151–172CrossRefGoogle Scholar
  82. Shin H, Collier DA, Wilson DD (2000) Supply management orientation and supplier/buyer performance. J oper manag 18(3):317–333Google Scholar
  83. Singh PJ, Power D, Chuong SC (2011) A resource dependence theory perspective of ISO 9000 in managing organizational environment. J Oper Manage 29:49–64CrossRefGoogle Scholar
  84. Srivastav AK (2011) ISO 9000 as an organisation development intervention. TQM J 23(3):313–325CrossRefGoogle Scholar
  85. Staw BM, Epstein LD (2000) What band wagons bring: effects of popular management techniques on corporate performance, reputation, and CEO pay. Adm Sci Q 45(3):523–556CrossRefGoogle Scholar
  86. Starke F, Eunni RV, Manoel Martins Dias Fouto N, Felisoni de Angelo C (2012) Impact of ISO 9000 certification on firm performance: evidence from Brazil. Manage Res Rev 35(10):974–997CrossRefGoogle Scholar
  87. Testa F, Rizzi F, Daddi T, Gusmerotti NM, Frey M, Iraldo F (2014) EMAS and ISO 14001: the differences in effectively improving environmental performance. J Clean Prod 68:165–173CrossRefGoogle Scholar
  88. Vachon S, Klassen RD (2006) Green project partnership in the supply chain: the case of the package printing industry. J Clean Prod 14:661–671CrossRefGoogle Scholar
  89. Vanpoucke E, Vereecke A, Boyer KK (2014) Triggers and patterns of integration initiatives in successful buyer–supplier relationships. J Oper Manage 32:15–33CrossRefGoogle Scholar
  90. Vinodkumar M, Bhasi M (2011) A study on the impact of management system certification on safety management. Saf Sci 49(3):498–507CrossRefGoogle Scholar
  91. Weick K, Sutcliffe K, Obstfeld D (1999) Organizing for high reliability: processes of collective mindfulness. Res Organ Behav 21:23–81Google Scholar
  92. Westphal JD, Gulati R, Shortell SM (1997) Customization or conformity? An institutional and network perspective on the content and consequences of TQM adoption. Adm Sci Q 42(2):366–394CrossRefGoogle Scholar
  93. Wiengarten F, Pagell M, Fynes B (2013) ISO 14000 certification and investments in environmental supply chain management practices: identifying differences in motivation and adoption levels between Western European and North American companies. J Clean Prod 56:18–28CrossRefGoogle Scholar
  94. Wilhelm MM, Blome C, Bhakoo V, Paulraj A (2016) Sustainability in multi-tier supply chains: Understanding the double agency role of the first-tier supplier. J Oper Manage 41:42–60CrossRefGoogle Scholar
  95. Zobel T (2013) ISO 14001 certification in manufacturing firms: a tool for those in need or an indication of greenness? J Clean Prod 43:37–44CrossRefGoogle Scholar
  96. Zutshi A, Sohal AS (2004) Adoption and maintenance of environmental management systems: critical success factors. Manage Environ Qual Int J 15(4):399–419CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Frank Wiengarten
    • 1
  • George Onofrei
    • 2
    Email author
  • Paul Humphreys
    • 3
  • Brian Fynes
    • 4
  1. 1.Department of Operations, Innovation and Data SciencesESADE Business SchoolSant CugatSpain
  2. 2.School of BusinessLetterkenny Institute of TechnologyLetterkennyIreland
  3. 3.Department of Management and LeadershipUlster University Business SchoolNewtownabbeyUK
  4. 4.School of BusinessUCD Smurfit Graduate Business SchoolBlackrockIreland

Personalised recommendations