The Effect of ISO 9001 Certification on Financial Performance: A Systematic Review

Abstract

Due to the high cost of the certification, many decision-makers dwell on the gain of maintaining an ISO 9001 as well as the financial benefits this certification will bring on their businesses. For this, quality management systems (QMS) standards are obtaining a growing attention in management. As such, many authors have investigated the advantages of implementing ISO 9001 and its effect on the financial performance of companies.

Our research aims to ascertain the effect of ISO 9001 QMS certification on the financial performance of the companies and to develop a research model on the relationship between the two components. To obtain a better understanding, this study records various empirical research related to the two, namely, ISO 9001 certification and firms' financial performance, in an attempt to ascertain the link between them through a systematic literature review from 41 empirical studies done around different countries, covering the period of 2000-2021.

The main findings about the impact of ISO 9001 certification on firms' financial performance are not consistent. Some studies attempted to show the positive effects, some report neutral or mediated impact, and many authors do not confirm it. However, many variables directly factor in the QMS of the companies, and consequently indirectly affect their financial performance.

For further research, evaluating the financial cost of ISO certification can help to measure the real financial impact and investigate if ISO registration can really yield financial gain.

JEL Classification: L15, L25

Paper type: Theoretical Research