MOTIVES AND BENEFITS OF ISO 9001 QUALITY MANAGEMENT SYSTEM: AN EMPIRICAL STUDY OF INDIAN SMEs

Abstract

The present study aims to investigate the motives and benefits of certification to ISO 9001 among Indian SMEs of manufacturing and service sectors. The main objective of this paper is to provide empirical evidence on SMEs’ motivation to pursue ISO 9001 quality management system (QMS) and the benefits they receive from being certified to ISO 9001. First, several studies about the benefits and motivations of QMS in various countries are reviewed, and then a questionnaire is sent to 800 ISO 9001 certified SMEs, representing both manufacturing and service sectors in India. Only 115 valid responses are processed and analysed. The survey findings indicate that majority of the SMEs meet the purpose and spirit of ISO 9001 for which it was designed and developed to bring the quality practices and culture into the organization and improve the operational and financial results of the organisations. However, the motives and benefits of certification have reported very weak association across SMEs of manufacturing and service sectors. In addition, ISO 9001 certification, widely regarded as a tool that improves the profits and motivates organisations to pursue it has found significant difference across manufacturing and service sectors SMEs.