the influence of motivation and perceived benefits on...
TRANSCRIPT
The Influence Of Motivation And PerceivedBenefits On Implementation And Maintenance
Of ISO 9001:2000 Standard In SelectedOrganisations In Malaysia
byRoziana Othmane-mail : [email protected]
AbstractThis paper examines the influence ofmotivational factors for obtainingcertification and perceived benefitsmeasures on the ease of implementing andmaintaining ISO 9001:2000 qualitymanagement system. A survey wasconducted on organisations that hadobtained their ISO 9000 certification andstill continue with the implementation atthe time of the study through variouscertification bodies. Hypothesis that weretested using path analysis showed thatthere is a structural relationship betweeninternal perceived benefits with the ease ofimplementation and maintenance. It wasalso established that motivation is thesignificant predictor that influences thebenefits gained, and ISO 9000 standardsprovide a platform for a consistentorganisation-wide approach to continualimprovement.
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IntroductionThe awareness on importance of quality and having quality management system
for better organisational performance has been emphasised through the work of many
quality proponents. There was a growing awareness and acceptance on ISO 9000
quality management standards for establishing quality management systems amongorganisations in Malaysia. The number of certified organisations increasedcumulatively from 2022 in 2003, to 3249 in 2005 (as at June 2005) and growing at anannual rate of 51.2% in 2004. Continuous implementation and maintenance of quality
management system was essential to satisfy customers and to ensure enhancementof the system.
Companies obtained ISO 9000 certification in anticipation that it will bringsignificant benefits to them. It was proven by a number of empirical evidences that the
benefits reaped contributed mostly towards operation improvement and efficiency(Santos and Escanciano, 2002; Gotzamani and Tsiotras, 2002; Salleh and Goh, 2001;
and, Withers and Ebrahimpour, 2001). Recent study by Magd et at., 2003 have
examined the impact of ISO 9000 implementation on organisational performance andsuggested that the adoption of ISO 9000 was justified in terms of many benefitsassociated with its implementation.
ISO 9000 certification had become a basic competitive prerequisite for many
companies doing business in today's global economy (Delpha, 2002). According to
Santos and Escanciano (2002), future research will be necessary to analyse the effectsof ISO 9001:2000 so as to determine whether substantial improvements of a
commercial nature have been experienced. Although the study found that the benefit
gained was on internal efficiency, there was a tendency for firms to gain benefits ofexternal nature, such as improving their market share, image and competitive position,as these benefits contribute most to an organisation's approval of the ISO 9000
certification. Nwankwo (2000) supported that ISO 9000 standard led companies to a
continuous progression towards greater professionalism in their approach to maintain
successful market positions.
It is also believed that the present version of the standard (ISO 9001:2000) willovercome the limitations and disadvantages experienced with the earlier version of thestandard (ISO 9000:1994) in order to improve the competitive position of certifiedcompany. Santos and Escanciano (2002) however cited that there was no empiricalevidence to establish whether the most market-oriented certified companies obtainbetter results than those companies with lesser degree of market-orientation.
Another interesting issue that had been deliberated in many of the researchworks was whether the benefits or advantages reaped by the companies weretangible. From literatures, a number of explanations and definitions were given byresearchers with regards to what was meant by the benefits being tangible.Gotzamani and Tsiotras (2002) showed that motives for true quality improvement willresult with improvement in operations and product's quality. Stevenson and Barnes(2001) found that the evidence, needed to prove that real benefits from achievingcertification can be realised in a long term, was on an increasing trend. Casadesus andGimenez (2000) believed that the new ISO 9001:2000 will result in tangibleimprovement as its structure focuses on continual improvement and measurement ofcustomer satisfaction. In addition, findings from Salleh and Goh (2001) showed thatinternally-driven motives were perceived to be of greater beneficial outcomes of theimplementation of ISO 9000 quality management system.
Contrary to the earlier findings, Najmi and Kehoe (2001) cited that many
companies which had obtained ISO 9000 certification eventually experienceddiminishing business benefits. Their findings showed that those companies which didnot maintain and sustain its quality system will only experience illusional benefits.
Casadesus and Gimenez (2000) found that the benefits gained by most companieswere more focused on commercial value and quality image and did not relate to thereal improvement in quality. The benefits gained were also not real because of lack ofimprovements in the companies after a given period of time. Gotzamani and Tsiotras(2002) in their study revealed that many companies could get certified without havingto prove any business results. It was also found that the ISO 9000 standards led to aninappropriate emphasis, that it was bureaucratic or more paperwork rather than quality
improvement.
Another important issue that had been brought forward by many researchers wasthe difficulties encountered before, during and after the implementation of ISO 9000
activities. Findings from Santos & Escanciano (2002), Escanciano et al. (2001), Dick
(2000) and Rissanen (2000) revealed that the earlier version of the standard (ISO
9000:1994) had created some problems with regards to extra burden and work due toexcessive paperwork, documentation and bureaucracy. Major problem faced by manyorganisations was related to the human resource aspects such as resistance to change,employee resentment, lack of understanding and information on technical matter,inexperience and fear (Awan and Bhatti, 2003; Amar and Mohd Zain, 2002; Escancianoet al, 2001; AI-Khalifa and Aspinwall, 2000; and Fuentes et al, 2000). The levels ofdifficulties in implementation were due to the incapability of the companies in fulfillingthe ISO standard requirements fully (Salleh and Goh, 2001 and Chin et al., 2000).
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However, Fuentes et al. (2000) and Lo and Humphreys (2000) found that most ofthe companies studied had difficulty in acquiring right consultants from externalsources. Besides facing limited resources, it was found that time and costs were theother obstacles in the implementation of ISO 9000. It was further explored that topmanagement support and involvement were vital to the success in getting
certification and ISO implementation (Withers & Ebrahimpour, 2001; AI-Khalifa &Aspinwall, 2000 and Fuentes et al., 2000). Despite the criticism of the standard, thepresent ISO 9000 standards have undergone revision and it was believed that the
certification was worth the difficulties experienced (Dick, 2000 and Rissanen, 2000).
Therefore, this study focused on identifying the organisational impediments or
difficulties faced by the certified companies in implementing the quality management
system according to ISO 9000 standard and established the structural relationships
with the motives of certification and the benefits gained by the certified companies.
The 1994 version was criticised, among other things, for putting too much stress
on documentation and records. Findings from Santos & Escanciano (2002), Escanciano
et al. (2001), Dick (2000) and Rissanen (2000) revealed that the earlier version of thestandard (ISO 9000:1994) had created some problems with regards to extra burdenand work due to excessive paperwork, documentation and bureaucracy. The levels of
difficulties in implementation were due to the incapability of the companies in fulfilling
the ISO standard requirements fully (Salleh and Goh, 2001 and Chin et al., 2000). Toovercome these problems, the new standard places far more emphasis on processesand results. However, this raised a question, "Will the improvements to the standard
really help to reduce variability in its implementation and maintenance and make the
implementation easier?"
Past studies had shown that researchers looked at factors such as motivational
factors (Marshall, 2002; Singles et al., 2001; Staines, 2000; Brown et al., 1998),perceived benefits factors (Lee et al., 1999; Koo et al., 1999; Leung and Chan, 1999)and implementation factors (Tang and Kam, 1999; Lipovatz et al., 1999) as separate
issues, and there was no effort to analyse these 3 variables simultaneously and study
their relationships. There were few attempts by Poksinska (2002) to analyse therelationship between motivation and benefits, and by Salleh and Goh (2001) to see thelinks between the reasons for seeking certification with degree of perceived difficultyand links between organisational factors (European market, ownership and paid upcapital) with degree of perceived difficulty. Further to this, limited literatures on therelationships of these variables and no effort to build the framework between these
factors had necessitated this study to fill in the gap.
Another gap observed in this study was the lack of references from local sourcesthat can be used in comparing and contrasting the issues and findings of this study.Although the references were mainly from referred journals and internationalpublications, the Malaysian context should be taken into consideration to generatebroad understanding of the issues being discussed and deliberated.
Empirical studies also showed that many barriers and general difficulties of ISO9000 certification (Santos & Escanciano, 2002; Escanciano et al., 2001; Dick, 2000;
Rissanen, 2000; Lipovatz et al., 1999; and, Quazi and Padibjo, 1998) occurred in
implementing ISO 9000 quality systems. Only few attempted to analyse the level ofdifficulty in implementing the clauses of ISO 9000 standards based on ISO 1994version, (Salleh and Goh, 2001 and Chin et al., 2000). Salleh and Goh (2001) went one
step further in testing the links between the degrees of perceived difficulty ofsatisfying the 20 requirements with five factors which were only confined todemographic or organisational factors. However, this study intended to fill theknowledge gap by looking at factors influencing the implementation and maintenanceof the ISO 9001:2000 standard based on 8 clauses in the standard. This study analysed
the relationships, which were not confined to the organisational factors only, but alsotook into account the motivations and perceived benefits that may have structuralrelationships with the ease of implementing and maintaining the ISO 9001:2000 systems.
To add clarity to the problem statement, the major aim of this study was toaddress the research question below:
"Is there any structural relationship between the ease of implementation andmaintenance of ISO 9001:2000 systems with motivational factors and perceived
benefits factors?"
This study intends to answer the following research objectives;
i) To find out the influence of motivations or motives for obtainingcertification on the ease of implementing and maintaining the ISO9001:2000 quality management systems;
ii) To find out the influence of perceived benefits from the implementationof ISO 9001:2000 certification on the ease of implementing andmaintaining the ISO 9001: 2000 quality management systems; and
iii} To find out the influence of motivations on the perceived benefits.
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The previous ISO 9000 quality management system standards (ISO 9000:1994}were officially replaced by the present version (ISO 9001:2000) on 15 November2000. It was believed that the present version will address the weaknesses andproblems faced in the implementation of the earlier version. Therefore, it wasexpected that this present version should perform better, as this upgraded standarddemands for more comprehensive improvement in the quality management system.
The features of the present standard require companies seeking ISO 9000certification to be more customer-focused. The companies are also required tomeasure and monitor the progress made in achieving both customer satisfaction andeffective communication. The standard also emphasises on continual improvement byurging the companies to frequently review the effectiveness and suitability of theirquality management system at planned intervals. The earlier version was criticised,among other things, for putting too much emphasis on documentations and records
(Caillibot, 2001). Hence, to overcome this, the new standard places more emphasis onprocesses and results.
Dick (2000) in his study found that companies often implement quality
management systems due to external pressures. This study intended to find outwhether the main motivation for companies in obtaining the certification was
externally driven, and that such motivational factors remained the same for thepresent standard.
The challenges introduced in the new version raised the question as to whetherthe benefits of ISO 9000:2000 standard were similar to the previous standard (ISO
9000:1994). The literature search showed that the benefits of ISO 9000:1994 were
more internally oriented and it is anticipated that the benefits of the new version will
be more towards addressing the external elements.
Many studies on the earlier version of the ISO standard also showed that manycompanies which obtained certification expected various improvements in theirorganisation. However, there was no clear indication whether the companiesexperienced the intended benefits. The perceived benefits gained were not realbecause it was usually tied up with a lack of improvement in the companies, after agiven period of time (Casadesus and Gimenez, 2000). Furthermore, companies couldget certified without having to prove any positive business results (Gotzamani andTsiotras, 2002).
What emerged from the various studies showed that an organisation which wasable to be certified with the earlier version of ISO 9000 standard did not mean that itwas truly committed to quality (Nwankwo, 2000) and the organisation was justimplementing it as the latest quality fad with no real benefits (Stevenson & Barnes,
2001). Many companies did not plan to implement improvement further from the
point of obtaining certification as they found that the difficulties in the maintenance ofthe areas required in the quality management system are insurmountable.
This study is an extension of the previous studies by looking at theimplementation factors, motivational factors and the perceived benefits factors
simultaneously while other researchers were looking at the issues separately. Notmuch research work focused on the factors influencing the implementation and
maintenance of quality management systems certified to ISO 9001:2000 standardshad been conducted to date. Findings from this study will add to the existing body ofknowledge of literatures on the relationships between motivations and maintenance ofISO 9001:2000 standard, and the relationships between perceived benefits and themaintenance of ISO 9001:2000 standard. Specifically, this study contributed to greater
understanding on the dimensions of critical issues in implementation and maintenance
of ISO 9001:2000 standard in Malaysia. Lastly, this study hoped to focus on how
companies could improve the existing approach and strategy of promoting the
development and capacity building required in the implementation of ISO 9001:2000
standard.
This study covers organisations that had obtained ISO 9000 certification and thosestill pursuing the implementation at the time of the study through various certificationbodies such as SIRIM QAS International, AOQC Moody and Cl International. Upon
inspection of the statistics compiled by the Department of Standard on number ofcertification issued for different sectors, the scope for the organisations to be includedin this research include all sectors and industries listed by the respective certificationbodies. It is important to note that SIRIM QAS International commanded close to 85%of the total certified organisations.
Literature ReviewRelationship between Motivation and Perceived Benefits
There were numerous efforts of studies conducted to link or relate the reasons forISO 9000 certification with the benefits perceived from such certification. Santos and
Escanciano (2002) analysed the reasons that led companies to be certified, and found
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that the reasons were related to the benefits obtained. Another supporting evidence
of this grounded theory was proven in the research conducted by Gotzamani andTsiotras (2002), which tested the relationship between certification motives and
benefits. The findings proved that the motives, which led companies to certification,were related with the overall benefits that companies gained from it. It was also foundthat the motivation for ISO 9000 certification was a significant and positive predictor
that influenced the benefits derived (Terziovski et al., 2002; Withers and Ebrahirnpour,2001). This was supported by studies by Poksinska et al. (2002) and Salleh and Goh(2001} which emphasised that there was a relationship between motivation and thedegree of perceived benefits and further concluded that the overall benefits which thecompanies gained from the standard showed dependency on motivation which
initiated the drive for the certification.
Past studies had proven that there were relationships between motivationalfactors and perceived benefits factors. As the findings were related to previousstandard, it is hoped that this study will prove likewise and could support thecontinuity of the same findings that were derived from the current standard in contextof the Malaysian environment.
The methods of analysis used by past studies were hypothesis testing bycorrelation analysis between motives and perceived benefits. This study also utilisedthe same analysis and went one step further in performing the path analysis to provethe structural relationships between these two factors.
Relationship between Perceived Benefits and Implementationand Maintenance of Quality Management System
Many research works had proven that the perceived benefits were associated
with the improvement in the firm's competitiveness (Santos and Escanciano, 2002}and the implementation and maintenance of ISO 9000 systems (Salleh and Goh, 2001;Chin et al., 2000). As the companies perceived the benefits in a right way, they wouldcontinuously progress towards maintaining successful market positions (Nwankwo,2000}; therefore companies could foresee the difficulties hence develop strongstrategies towards making the implementation easier. There were many authors whosaw that the most important benefits gained from ISO 9000 certification were
improved documentation and record management (Gunnlangsdottir, 2002; Amar and
Zain, 2002; Poksinska et al., 2002; Salleh and Goh, 2001; Chin et al., 2000). Failure to
foresee the perceived benefits could be a barrier that makes it difficult for a companyto implement and maintain a certified quality system.
In most studies, authors found that critical clauses in the maintenance of ISO
9000 system were related to corrective and preventive action, managementresponsibility, and documentation and data control (Salleh and Goh, 2001). This issupported by findings from Chin et al. (2000), who found that the important clauses
for ISO 9000 maintenance, which was referred as 'the maintenance triangle',comprised of management review, internal quality audit and corrective action.Awareness on the importance of ISO 9000 maintenance is crucial in a competitivecondition whereby firms are able to convert the attainment and continuousimprovement of quality into goals to guarantee long term survival. However, there isno study on whether there is an association between the level of perceived benefitsand level of perceived difficulty in implementing and maintaining the ISO system.
Past studies had proven that perceived benefits are associated with theimplementation and maintenance of the ISO 9000 systems. There was no studyconducted specifically on the relationship between internal perceived benefits withthe ease of implementation and maintenance. It was hoped that this study will provesignificantly that there is a structural relationship between perceived benefits andimplementation.
The methods of analysis used by past studies were hypothesis testing bycalculating the mean difference, t-test and percentage rating. This study also utilisedthe same analysis and went one step further in performing the path analysis to showthat there was structural relationships between the perceived benefits factors withthe ease of implementation and maintenance factors.
Relationship between Implementation and Maintenance ofQuality Management System, Motivation, and Perceived Benefits
Based on past studies, there was not much evidence to prove that the factors
namely, motivational and perceived benefits, had simultaneous structural relationships
with the implementation and maintenance of ISO 9001:2000 standard. Past studiesanalysed these factors separately but this study is an extension of the previousstudies; analysing the implementation and maintenance factors, organisational factors,
motivational factors and the perceived benefits factors simultaneously. This study
went one step further to fill the gap by proposing a conceptual framework, althoughthere were limited literatures on the relationships of these variables and no effort tobuild the framework between these factors.
The present standard requires companies seeking ISO 9000 certification to be
more customer-focused and they are required to measure and monitor the progressmade in achieving both customers' satisfaction. The standard also emphasises oncontinual improvement by urging the companies to frequently review theeffectiveness and suitability of their quality management system. It is anticipated that
this present version should perform better as the upgraded standard demands morecomprehensive and improvement in the quality management system and is perceivedas less difficult to be implemented. Based on the current needs of ISO 9001:2000standards, greater understanding on the dimensions of critical issues in
implementation and maintenance of ISO 9001:2000 standard is vital to the industries
in Malaysia.
Conceptual FrameworkThe operationalisation of a theory is done through developing a specific set of
dependent relationships that can be tested empirically. The purpose of a model is toconcisely provide a comprehensive representation of the relationships to be examined(Hair et al., 1998). To achieve a clear picture of the theory with clearly definedvariables, the model is then formalised in a path diagram or in a set of structuralequations. The path analysis is used to better portray the structural relationships.
Based on discussions in previous chapters, the study focused on three majorconsiderations. Firstly, the study aimed to test whether there is a structuralrelationship between motivational factors with the ease of implementing and
maintaining the quality management system. A framework was also developed to findout whether the perceived benefits factors have structural relationship with the ease
of implementing and maintaining the quality management system. Lastly, it was alsoto find out whether the motivational factors had structural relationship with the
perceived benefits.
Through these structural relationships, it was hoped that this study had proventhat as the motivation of the organisation to obtain the certification is high, they would
perceive the benefits in a more positive way and could foresee the difficulties inimplementing and maintaining it. Hence, the organisation will develop strongstrategies towards making the implementation and maintenance easier. On the other
hand, if the motivational level to obtain certification is low, organisations would fail to
perceive the benefits of the certification, and would eventually experience difficulties
in implementing and maintaining the ISO systems. The theoretical framework that
was developed to present a clear picture of this hypotheses is depicted in Figure 1.
Proposed Conceptual Framework
Independent Variable
MOTIVATIONALFACTORS
PERCEIVEDBENEFITS FACTORS
Dependent Variable
IMPLEMENTATION &MAINTENANCE OF QMS
HypothesesIn order to substantiate empirical evidence, the below main hypotheses weredeveloped and tested:
Hi: The motivational factors have positive relationship with the ease ofimplementing and maintaining the quality management systems;
H2: The perceived benefits factors have positive relationship with the ease ofimplementing and maintaining the quality management systems; and
Ha: The motivational factors have positive relationship with the perceived benefits.
The proposed framework was expected to be a useful foundation on which furtherempirical research in the field of ISO 9000 systems can be further enhanced to assistcompanies in Malaysia in maintaining their certification. The framework had proven tothe companies that ISO 9001:2000 certification can add value to their organisations'overall performance. Four significant results were expected from the proven
theoretical framework such as:
a. The drive for ISO 9001:2000 certification was motivated primarily byquality considerations in internal factors.
b. The perceived benefits, especially internal factors, were proven to havepositive relationships with the ease of implementing and maintaining theISO 9001:2000 systems.
c. The motivational factor was a strong influence of the benefits that mightbe perceived by companies embarking on ISO 9001:2000 certifications.
Methodology
The descriptive research was chosen for this study to describe the factors
influencing the implementation and maintenance of ISO 9001:2000 standard in
Malaysia. The research sample chosen for the study included ISO 9001:2000 certified
companies in different sectors, obtained from SIRIM QAS database and directories of
other certifying bodies accredited to Department of Standard Malaysia (DSM). Five
hundred respondents were targeted as the sample size for this study. The sample,
which consisted of stratified samples, was selected using simple random sampling
according to distribution by sectors. This method was chosen to ensure that each
sector is represented in the sample. The data collection methods used was self
administered questionnaire; posted through mail, fax or email to companies.
The data was then analysed using SPSS version 13 and LISREL 8.72. The
descriptive analysis performed was frequency analysis and Cronbach's alpha, and
inferential analysis was conducted using Pearson Correlation Analysis and Structural
Equation Modeling/ Path Analysis.
Development of MeasuresBased on previous research, the measures developed were adopted and modified tosuit the needs of the study. The origins of the measures used are shown in Table 1.
Table 1 The Origins of Constructs
No. Construct Adopted From
1.2.
3.
Motivational Factors
Perceived Benefits Factors
Implementation andMaintenance of QMS
Poksinska et al. (2003) and Llopis and Tari (2003).
Poksinska et al. (2003) and Salleh and Goh (2001)
ISO 9001:2000 Standard
Source: Compiled by Author
The constructs were measured by looking precisely at each of the items and how
well they suited the study. Motivational factors were also considered as independent
variables in this study. The dimensions of motivational factors in this study wereadopted from Poksinska et al. (2003) and Llopis and Tari (2003). Poksinska et al. (2003)
studied the experiences from implementation of ISO 14000 in Sweden in comparison
with motives, benefits and key implementation factors of ISO 9000. Similarly, Llopisand Tari (2003) analysed the influence of internal motivation for seeking certification
with the level of quality management and performance in order to determine whetherinternal aspects are more important than external aspects. Some modifications andadditions was done to the variables classified by Poksinska et al. (2003} and Llopis andTari (2003) to suit the needs of this study and they were grouped into three classes.
The perceived benefits were tested in two stages. Firstly, the perceived benefitsas independent variable may have structural relationship with the dependent variable;that is, the ease of implementing and maintaining the quality management systems.Secondly, perceived benefits were considered as dependent variables. The influenceof organisational variables on motivation factors was assumed to have effect on theperceived benefits. The analysis was done to see whether direct relationship can beestablished between the motives of companies seeking certification and the types ofperceived benefits gained through ISO 9000 certification. In the operationalisation ofthe perceived benefits factor, the dimensions of these factors were adopted fromPoksinska et al. (2003) and Salleh and Goh (2001). Some modifications were done to
categorise the variables into two groups that represent specific and clear dimensionsto suit the needs of the study.
The dependent variable was a group of factors termed as the ease ofimplementation and maintenance factors. They were measured through a series ofstatements which indicate the level of difficulty that organisations experienced in theprocess of carrying out the activities that are related to ISO 9000 certification. Thedimensions of these factors were adopted from ISO 9001:2000 standard which was
used as a reference. This study defined the implementation process as starting fromthe process where the organisation prepared for adequacy audit until after getting the
certification and continuously improve the process.
Another three variables, namely motivational factors, perceived benefits factors
and implementation and maintenance factors, were analysed simultaneously to testthe hypotheses number 1, 2 and 3. It was believed that SEM provides the appropriate
and the most efficient estimation techniques for a series of separate multipleregression equations which were estimated simultaneously (Hair et al., 1998). In linewith the objective of the study to identify which independent variables predict eachdependent variable, the characteristic of SEM in developing structural model is themost suitable method in which path was developed to relate independent todependent variables and allow multiple relationships between these variables.
In comparison with the methodology used to analyse the motivational factors
which are inappropriate for this study, Poksinska et al. (2003) analysed their data usingfactor analysis and paired sample t-test whereas Llopis and Tari (2003) used clusteranalysis and also factors analysis. Besides these analysis, the method used byPoksinska et al. (2003) in analysing the perceived benefits factors were t-test for
paired sample whereas Salleh and Goh (2001) used average mean scores in analysing
this variable.
Results and DiscussionAmongst the response received, majority (56.6%) of the respondents were from
the manufacturing sector, followed by healthcare and construction both at 8.8%.
Within the manufacturing sector, the main portion came from the electrical andelectronic industry (25%) and followed by the chemical industry (19%). In terms of
ownership, 61% of respondents were from local organisations and 22% was from
majority local organisations. This was followed by 12% from foreign companies andlastly 5% from Government agencies.
A total of 37 (32.7%) of the respondents exported their products or services to
various market destinations. Majority of the exports were to ASEAN countries, a40.5% of the total number that exported their products or services. Majority of therespondents (36.3%) were from large companies with number of employees from 151to 500. This was followed by larger and mostly multinational companies at 28.3% and
medium-sized companies at 24.8%. Only about 10.6% of the respondents were fromsmall companies. About 38.1% of total respondents had been certified to ISO systemfor less than 5 years and only 15% had been certified to the ISO 9000 system for
more than 10 years.
Model ValidationThe path analysis was used to better portray the inter-relationships. The proposed
conceptual framework in Figure 2 was developed through three main hypotheses and
later extended into a pictorial portrayal of the relationships to see the structural
relationships between implementation and maintenance with motivation and perceived
benefits.
The analysis was done using LISREL 8.72 and four important findings were
revealed. Firstly, there was a positive relationship between perceived benefits and
implementation. Path diagram showed that there was a relationship between internal
perceived benefits with the ease of implementation and maintenance. However, therewas no past study specifically on the relationship of these two factors. There were
only studies proving that the perceived benefits are associated with the
implementation and maintenance of the ISO 9000 systems (Santos and Escanciano,2002; Gunnlangsdottir, 2002; Amar and Zain, 2002; Poksinska et al., 2002; Dissanayaka
et al., 2001; Salleh and Goh, 2001; Chin et al., 2000; Nwankwo, 2000). It was observed
in past studies that as the companies perceived benefits in the right way, they could
foresee the difficulties and hence developed strong strategies towards making the
implementation easier. On the other hand, failure to foresee the perceived benefits
could be a barrier that makes it difficult for the company to implement and maintain a
certified quality system.
Secondly, it was found that internal motivation factors influenced the internal
perceived benefit factors. It can be concluded that motivation factors were thesignificant and positive predictors that influence the benefits derived (Terziovski et al.,
2002 and Withers and Ebrahimpour, 2001). This finding was also supported by the
study conducted by Poksinska et al. (2002) which cited that internal perceived benefits
showed dependency on internal motivation factor and this further substantiated Salleh
and Goh (2001) who emphasised that there was a link between reasons for seeking
certification and the degree of perceived benefits.
Thirdly, it was found that the external motivations influenced the externalperceived benefits. This finding was supported by Poksinska et al. (2002) who foundthat motive on "corporate image" (market related reasons) showed a relationship with
benefits of "improved corporate image".
Lastly, the path analysis revealed that external motivation factors, regulatorymotivation factors and external perceived benefit factors had no direct influence on the
ease of implementation and maintenance of ISO 9001:2000 standard. There was alsono past study on such relationship; between motivation factors and implementation
and maintenance of ISO 9001:2000 standard.
Dependent Variable
a. Implementation and Maintenance
Independent Variable
Internal Motivation + ExternalMotivation + Regulatory Motivation
b. Implementation and Maintenance Internal Perceived Benefits +External Perceived Benefit
c. Internal Perceived Benefits andExternal Perceived Benefits
Internal Motivation + ExternalMotivation + Regulatory Motivation
The proposed path model in Figure 2 was tested using LISREL 8.72. The purpose
of developing the path diagram was to estimate the strength of each relationshipdepicted in the path diagram. It calculated the strength of the relationships using a
correlation or covariance matrix as the input.
The analysis was conducted using correlation coefficient matrix as it provided a
more conservative estimates of the significance of coefficients which were used as
the input to run the model fit test- A model was derived after the test and estimation
process was run. The path model derived from the analysis is shown in Figure 3 and
Figure 4.
Proposed Path Model
IndependentVariable
InternalMotivation
DependentVariable
Implementation &Maintenance
igure 3 I Path Model of Determinants of Implementation and Maintenance
Mot - reg
-0.11
Implementation &Maintenance
-0-09
^^ Path Model of Significant Determinants of ImplementationFigure 41H and Maintenance
0.55t = 6.85
Implementation &Maintenance
Significant at 0.05 level (t = ± 1.96)
Referring to the LISREL output, three structural equations were estimated and
showed significant relationship as follows:
a. Implementation and Maintenance
= 0.34* perceived benefits (internal) with R2 = 0.064 and t = 2.59
b. Perceived Benefits (internal)
= 0.55* motivation (internal) with R3 = 0.33 and t = 6.85
c. Perceived Benefits (external)
= 0.53* perceived benefits (internal) + 0.37* motivation (external} with
R2 = 0.51 and t = 7.64 and t = 4.33 for respective coefficients.
* Significant at 0.05 level (t = +1.96)
Hypothesis Testing
The hypothesis number 1, 2 and 3 were tested using Structural Equation Model (SEM)
based on correlation matrix as input and the hypothesis were further analysed by
breaking down into respective sub-hypothesis. The relationships established from the
path analysis and the subsequent testing results are summarised in Table 2.
Table 2 Summary of Hypothesis and Sub-hypothesis Testing Results
o
No. Main/ Description Supported/Sub Hypothesis Not Supported
1.
2.
3.
Main hypoHI
Sub hypoHla
Hlb
Hie
Main hypoH2
Sub hypoH2a
H2b
Main hypoH3
H3a
H3b
H3c
H3d
H3e
H3f
The motivation has positive relationship with theease of implementing and maintaining the qualitymanagement systems
The internal motivation has positive relationship withthe ease of implementing and maintaining the qualitymanagement systems
The external motivation has positive relationship withthe ease of implementing and maintaining the qualitymanagement systems
The regulatory motivation has positive relationshipwith the ease of implementing and maintaining thequality management systems
The perceived benefits have positive relationshipwith the ease of implementing and maintaining thequality management systems
The internal perceived benefits have positiverelationship with the ease of implementing andmaintaining the quality management systems
The external perceived benefits have positiverelationship with the ease of implementing andmaintaining the quality management systems
The motivation has positive relationship with theperceived benefits.
The internal motivation has positive relationship withthe internal perceived benefits.
The external motivation has positive relationship withthe internal perceived benefits.
The regulatory motivation has positive relationshipwith the internal perceived benefits.
The internal motivation has positive relationship withthe external perceived benefits.
The external motivation has positive relationship withthe external perceived benefits.
The regulatory motivation has positive relationshipwith the external perceived benefits.
Not Supported
Not Supported
Not Supported
Supported
Not Supported
Supported
Not Supported
Not Supported
Not Supported
Supported
Not Supported
Reasons for Significant ResultsBased on the results of path analysis, the fit statistics were: Chi-Square=1.47, df
=2, p=0.48, with an adjusted GFI of 0.95, GFI of 1.00 and a RMSEA of 0.00. The sub-hypothesis number H2a was supported by the findings which showed that there wasa relationship between internal perceived benefits with the ease of implementationand maintenance. Although there was no past study which specifically found therelationship between these two factors, this study had proven a new finding. The paststudies had proven that perceived benefits were associated with the implementationand maintenance of the ISO 9000 systems (Santos and Escanciano, 2002;Gunnlangsdottir, 2002; Amar and Zain, 2002; Poksinska et al., 2002; Dissanayaka etal., 2001 ;Salleh and Goh, 2001; Chinetal., 2000; Nwankwo, 2000). It was observed inpast studies that as the companies perceived benefits in the right way, they couldforesee the difficulties and hence developed strong strategies towards making theimplementation easier. On the other hand, failure to foresee the perceived benefitscould be a barrier that makes it difficult for the company to implement and maintain acertified quality system.
The findings also supported the sub-hypothesis number H3a where it found thatthe internal motivation factors influenced the internal perceived benefit factors. Thisfinding concluded that motivation factors were the significant and positive predictorthat influenced the benefits derived (Terziovski et al., 2002 and Withers andEbrahimpour, 2001). This finding was also supported by the study conducted byPoksinska et al. (2002) which cited that internal perceived benefits showeddependency on internal motivation factor and this was further substantiated by Sallehand Goh (2001) who emphasised that there was a link between reasons for seekingcertification with the degree of perceived benefits.
The results from path analysis also supported the sub-hypothesis number H3e; thatthe external motivations influenced the external perceived benefits. This finding wassupported by Poksinska et al., 2002 who found that motive on "corporate image" (marketrelated reasons) showed a relationship with benefits of "improved corporate image".
Reasons for Insignificant ResultsThe results showed that for eight out of eleven sub-hypotheses, there was
insufficient statistical evidence to conclude that there are positive relationshipsbetween the independent constructs with the corresponding dependent constructs.
Three motivational factors, which were internal motivation, external motivation
and regulatory motivation, had no direct influence on the implementation andmaintenance of ISO systems. This could be due to the fact that these motivationfactors were indirect causes for the implementation for ISO 9000. The motivational
factors seemed to have direct influences on perceived benefits factors. The reasonwhy companies went for certification was due to the fact that they mainly perceivedthe benefits that they would experience. This is supported by studies made by Sallehand Goh (2001) and Poksinska et al. (2002) that showed the benefits perceived weremainly caused by the motives or reasons, which finally led the companies to go forcertification.
There was insufficient statistical evidence to establish a positive relationshipbetween external perceived benefits and the implementation and maintenance of ISO9000 systems. This could be due to the respondents' background in terms of marketdestination, where about 40.5% of the respondents that export their products orservices were targeted to ASEAN countries. On the other hand, the respondents thatexport to other foreign markets which imposed stricter requirements especially USA
and European made up only 10.8% and 13.5% respectively.
ConclusionBased on the path analysis, the study had proven new findings that there was a
structural relationship between internal perceived benefit and the ease ofimplementation and maintenance of ISO 9001:2000 standard. This finding showedthat when the benefits reaped from the certification was internalised and perceived in
a right way by the organisation, they would foresee the difficulties hence developed
efforts to further improve and thereby making the implementation and maintenance of
ISO 9001:2000 standard easier.
The findings also supported the last hypothesis which found that the internal
motivation factors influenced the internal perceived benefit factors whereas theexternal motivations influenced the external perceived benefits. The findingssupported past studies that concluded motivation factors were the significant andpositive predictor that influence the benefits derived.
The findings of this study added to the existing body of knowledge of literatureson the relationships between motivations and maintenance of ISO 9001:2000
standard, and the relationships between perceived benefits and the maintenance ofISO 9001:2000 standard. Specifically, this study contributed to current understanding
on the issues and practices related to ISO 9001:2000 certification in Malaysianindustries. This study also created a greater understanding on the dimensions of criticalissues in implementation and maintenance of ISO 9001:2000 standard.
Even though some of the ideas expressed in this conceptual framework weresimilar to other past researches, this study added value to the overall concept byintegrating these various concepts and past theories to provide more extensive andcomprehensive picture of those relationships. The validity and reliability of this studywere tested empirically. It could be concluded that the theoretical framework of thisstudy could provide a useful foundation on which further empirical research in thefield of ISO 9000 systems can be further built and enhanced.
Secondly, from industries' perspectives, this study provided an insight to furtherunderstand the current issues and practices of the implementation of the ISO9001:2000 standard. It emphasised on the importance of ISO 9000 and its potential togrow further. The industries should take the initiatives to examine areas which wereclaimed in the study as difficult to implement and maintain. Such information from thisstudy was also important and could be used by the certification bodies in Malaysia tofind ways and means to formulate plans in assisting companies to maintain theircertification and realising its long term benefits. This implication supported the viewby Laszlo (2000) that there are potential difficulties that lie ahead for thoseorganisations that aspire to fulfill the requirements of this new version of ISO9001:2000, unless they recognise that there is a cultural gap between the newapproaches required as compared to the previous 1994 version. Therefore, in fulfillingthe requirements of 1509001:2000, companies need approaches that are gearedtowards deeper understanding in applying the principles of quality management thusadopting these principles in the evaluation of management techniques.
Lastly, from practitioners' perspectives, this study was hoped to trigger somethought that the next review of the standard could consider those areas that weredifficult to be implemented by companies. The consultancy approach should addressthe areas that were difficult to be implemented and maintained, so that appropriateassistance could be offered to companies to encourage them in getting certification.
There were some issues and practices that should be addressed as a way toimprove further the study in this area, for the benefit of any future studies. Thefindings of the study were only applicable within the next few years as a new versionof ISO 9000 is expected to be introduced within the next two years. This will triggersimilar or advanced study to be carried out to provide new insight on the practices bythe industries
Lack of literatures in areas of ease of implementation also suggested that morestudies in similar areas should be carried out to establish the relationships with factorssuch as perceived benefits and motivations. Besides, the proposed conceptualframework in this study could be tested extensively to derive better results.
It was claimed that the ease of implementation of ISO 9001:2000 system couldresult in better outcome or performance of the companies that implement the systemThe companies will gain more insights on the benefits to give them focus and motivationin maintaining the system. This study only identified factors affecting the ease ofimplementation of the system. Hence, future research would need to be carried out toexamine how the factors contribute towards better performance of the companies
The importance of quality management lies in the culture of an organisation itself,in which it must be embedded in their culture to foster a climate for open cooperationand teamwork among the employees. However, the ability of an organisation to changeand improve continuously depends on its willingness to adapt to the principles of qualitymanagement. The 2000 version of ISO 9000 was introduced to replace ISO 9001:1994,with new look and new scope as to overcome the criticism and weaknesses found inearlier version. The most significant change in 2000 version is where it serves as a basisfor benchmarking an organisation's quality management system.
New emphasis has been given in ISO 9001:2000 standards which foundachievement of customer satisfaction as an explicit requirement in the standard. In
order for the organisation to identify and review customer requirements, management's
responsibility is crucial to ensure that the customer requirements are met Hence, theorganisation further needs to measure and monitor its customer satisfaction.
Among the weaknesses and problems that organisations faced in implementingthe activities related to ISO 9000 in earlier version was too much emphasis ondocumentation and records. With the introduction of ISO 9001:2000 standard, it ishoped that the standard would enable the implementation to be carried out with easeand effective way and less difficult in fulfilling the requirements of the standard.
The findings of this study is hoped to provide in a great length the understanding
of the issues and challenges in the implementation and maintenance of ISO
9001:2000 standard. Hence, the organisation could improve its existing approach andstrategy in addressing the need to demonstrate its capability to achieve customersatisfaction. The organisation could also find ways to improve its development andcapacity building required in the implementation of ISO 9001:2000 standards.
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