Critical factors of effective implementation of IT-enabled ISO-9000 QMS

Abstract

Purpose Although aligning information technology (IT) with quality management (QM) is a popular concept, it has not yet been properly, theoretically and empirically grounded. Therefore, the purpose of this paper is to identify critical factors for the effective implementation (CFEI) of IT-enabled ISO-9000 quality management system (QMS). Design/methodology/approach The primary field data were collected through a questionnaire survey of 381 small and medium enterprises (SMEs) in India. Exploratory factor analysis and confirmatory factor analysis were applied to check the reliability and validity of the data collected. First, using pattern matrix, 48 items (extracted from relevant literature) representing CFEI of IT-enabled ISO-9000 QMS were grouped into six latent variables (eigenvalue⩾1). Second, to test the relationship among CFEI, firm performance and competitive positioning, six hypotheses were formulated and tested using structural equation modelling (SEM) procedure. Findings The study results found that identified CFEI of IT-enabled ISO-9000 QMS, i.e. “strategic attributes” (β=0.517), “tactical attributes” (β=0.323), “operational attributes” (β=0.281), “organisational infrastructure and processes” (β=0.231), “system knowledge” (β=0.194), “alignment of system with firm’s strategy” (β=0.230), have a significant effect (p<0.05) on the successful implementation of ISO-9000 QMS. The critical factors are found to have a direct and positive impact on the firm’s performance. Study results found that the critical factors do not directly affect the firm’s competitive positioning (β=−0.097), but they do so indirectly through customer satisfaction (β=0.627) and operational performance (β=0.482). Originality/value The proposed model provides critical factors to align IT system with ISO-9000 QMS which is highly required mainly for SMEs. The study will provide a mean by which small manufacturing firms can counter the effects of increasing global competition.