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The Synergistic Impact of ISO 9000 and TQM on Operational Performance and
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Article  in  International Journal of Quality & Reliability Management · April 2018

DOI: 10.1108/IJQRM-02-2016-0024

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IJQRM
35,3
614
Received 26 February 2016
Revised 28 October 2016
17 January 2017
Accepted 17 January 2017
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International Journal of Quality &
Reliability Management
Vol. 35 No. 3, 2018
pp. 614-634
© Emerald Publishing Limited
0265-671X
DOI 10.1108/IJQRM-02-2016-0024
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0265-671X.htm
QUALITY PAPER
The synergistic impact of ISO
9000 and TQM on operational
performance and competitiveness
Mohamed A. Youssef
The American University in the Emirates, Dubai, United Arab Emirates, and
Eyad M. Youssef
Delta State University, Cleveland, Mississippi, USA
Abstract
Purpose – The purpose of this paper is to examine the impact of integrating ISO 9000 and total quality
management (TQM) on operational performance of manufacturing organizations and their journey toward
achieving world-class manufacturing (WCM) status.
Design/methodology/approach – The authors used a conceptual model and its empirical validation based
on a sample of 2,961 responses from one developing and three developed economies. Univariate and
multivariate analyses were used to test five main hypotheses.
Findings – Plants that integrate ISO 9000 and TQM progressed faster toward achieving WCM status and
have better operational performance in terms of quality management, inventory management, time-based
performance, and competitiveness.
Research limitations/implications – The sample from the developing economy includes only
254 responses, while the one from the three developed economies includes 2,907 responses.
Practical implications – Findings of this study have many implications for both academic and
practitioners. These findings encourage practitioners to consider ISO 9000 and TQM as complementary,
not substitutes.
Social implications – Developing economies should follow the footsteps of developed economies in
considering quality as a competitive advantage in global markets.
Originality/value – The paper addresses in a unique and unprecedented way the synergistic impact of
ISO 9000 and TQM on operational performance. The study is the first in its kind to include responses
from both developing and developed economies. The development of the synergy index was never
addressed before.
Keywords Competitiveness, Synergy, Inventory management, Operational performance, ISO 9000,
Time-based performance
Paper type Research paper
1. Introduction
The implementation and integration of total quality management (TQM) and ISO 9000 has
been a hot debate among academics and practitioners since early 1990s. The issue of
integrating these two practices occupied a vast area of interest of operations and quality
management scholars around the world. The essence of this debate was twofold. First, are
TQM and ISO 9000 complementary or substitutes? Second, if the two programs complement
one another, which one should be implemented first? This paper takes this debate one step
further and argues that if the two programs were considered concurrently, their synergistic
impact on the operational performance of the manufacturing plant will be noticed. In a unique
and unprecedented way, our paper developed an index to measure the synergy of ISO 9000
and TQM. It further tests the impact of such synergy on the operational performance of
manufacturing plants operating in one developing and three developed economies.
Most of quality management literature in the 1990s focused on implementing ISO 9000
and TQM as either complementary or substitutes. Scholars who saw them as
complementary debated the issue of which of the two practices should precede the other
 (see, e.g. Lakhal, 2014; Ong et al., 2015; Abusa and Gibson, 2013; Burli et al., 2012; Askey ISO 9000
and Dale, 1994; Taylor, 1995; Weston, 1995; Idris et al., 1996; Mallak et al., 1997; Terziovski and TQM
et al., 1997; Brown et al., 1998; Quazi and Padibjo, 1998; Lee et al., 1999; Lipovatz et al.,
1999; Al-khalifa and Aspinwall, 2000; Sun, 2000). In addition, few studies examined the
combined impact of these two programs on some aspects of business performance in
different parts of the globe (see, e.g. Martinez-Lorente et al., 1999). The results and
findings of Martinez-Lorente motivated us to develop and test a model for the synergistic 615
impact of these two programs on operational performance of manufacturing plants in two
different economies.
Lakhal (2014) argued that there is no consensus in the quality management literature
about the relationship between ISO 9000 certification and the TQM implementation and that
the conflict in the literature is about which of these quality management programs should be
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considered first. There are two views on this issue. The first view advocates that ISO 9000 is
a pre-step to implementing TQM, while the second view perceives TQM as paving the way
for ISO 9000 certification. Based on data collected from 176 Tunisian companies in several
industries, Lakhal (2014) concluded that implementing ISO 9000 first before embarking on
TQM leads to better organizational performance, although implementing both practices will
directly impact the organizational performance.
Stanciu and Pascu (2014) explained that ISO 9000 works better within an organization
that adopted TQM principles such as employees empowerment to develop work procedures,
cooperation and collaboration among organizational units throughout the organization, and
developing and introducing standards to meet customer requirements. The authors
concluded that ISO 9000 complements TQM and that such relationship is essential for the
success of any quality management initiative.
Abusa and Gibson (2013) studied the implementation of TQM and its impact on
organizational performance in Libyan manufacturing organizations with or without ISO
9000 certifications. Their results showed that TQM is still in its infancy in the Libyan
manufacturing sector and that process management and top management support are the
most important TQM elements. Their study also found no significant differences in
organizational performance between the ISO 9000 and non-ISO 9000 certified companies.
The shortcoming of this study is twofold. First, the sample used in their analysis was
small (only 56 organizations); one cannot draw an accurate conclusion from such a small
sample. Second, their study did not include the time dimension of how long has it been
since the implementation of TQM. The benefits of TQM do not occur overtime; it takes at
least three to five years for TQM to produce an impact on organizational performance
(see, e.g. Youssef et al., 1996).
In this paper, we develop a synergy index based on the degree of the integration of ISO
9000 and TQM practices. ISO 9000 variable was operationalized as a zero-one variable,
with 1 indicating that the company is ISO 9000 certified and 0 otherwise. TQM
implementation was operationalized on a continuum that ranges from no implementation
at all to extensive implementation, with the middle of the continuum showing some
implementation. The sample used in developing the synergy index consisted of more than
2,900 responses from three North American countries (developed economies) and the
Kingdom of Saudi Arabia (developing economy). Comparing responses from these two
economies provides an international perspective on quality management practices
in different parts of the world and gives the readership of the quality management
journals a useful insight into how quality management practices are implemented in
different economies.
The main objective of this paper is threefold. First, it investigates the synergistic impact of
integrating ISO 9000 and TQM on the operational performance of manufacturing plants.
The paper, therefore, seeks to test if there are significant differences in the operational
 IJQRM performance among manufacturing plants with varying level of ISO 9000/TQM synergy.
35,3 Second, the paper examines the impact of the size and the age of the plant on its effort toward
achieving world-class manufacturing (WCM) status. Finally, the paper seeks to explore if the
synergy level would impact the operational performance and company’s effort to achieve
WCM status.
The remainder of this paper is organized as follows. First, relevant literature is
616 extensively reviewed to establish the legitimacy of our research question and the
importance of our contribution to the existing body of knowledge in this very important
area of scientific inquiry. Next, we present a conceptual model that shows the relationship
between ISO 9000/TQM synergy level and firm’s operational performance. In the
“Methodology” section, we elaborate on the research instrument, sample and data collection,
variables, and measurement. Section 5 of this paper shows the statistical analyses for
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testing the main research hypotheses. The concluding section of this paper discusses our
findings and their implications for academics and practitioners.

2. Relevant literature
The quality management literature is replete with empirical studies on quality management
practices and programs; most notable are TQM and ISO 9000. These two programs were
studied, mainly in isolation of one another. One of the explanations to taking this approach in
managing quality is that the former is a North American-based program, while the latter is a
European-based one. In the past two decades, many North American plants started to
implement both programs. A debate in academic research outlets arose as to which program
should be implemented and if the two were considered, which one of the two should be the
starting point to pave the way for the other. There exists a vast body of knowledge that sees
the ISO 9000 as the stepping stone for TQM and thus for continuous improvement (CI). Table I
summarizes some of the studies in this regard.
The studies summarized in Table I motivated us to study the impact of both TQM and
ISO 9000 on operational performance of a sample of manufacturing plants operating in the
developed and developing economies.
Gotzamani and Tsiotras argued that ISO 9000 is a subset of TQM and their effective
implementation would lead to improvement in organizational performance. Furthermore,
TQM and ISO 9000 complement each other and they should be used in association to ensure

Study (year) Main finding of the study

Askey and Dale (1994) ISO 9000 is a good base on which to develop a TQM approach
Taylor (1995) From ISO 9000 to TQM
Weston (1995) ISO 9000 is a framework for TM and continuous improvement
Carlsson and Carlsson (1996)ISO 9000 is a step toward TQM
Idris et al. (1996) ISO 9000 is a logical and practical step toward TQM
Tsiotras and Gotzamani (1996)
Use ISO 9000 as an entry key to TQM
Meegan and Taylor ISO 9000 and TQM should be seen as complementary
Terziovski et al. (1997) ISO 9000 is a foundation on which to build a quality organization
Brown et al. (1998) ISO 9000 should precedes TQM
Quazi and Padibijo ISO 9000 provides a stepping stone to TQM
Lipovatz et al. (1999) ISO 9000 is the basis for achieving continuous quality improvement
Table I. Al-khalifa and Aspinwal (2000)
ISO 9000 is only the beginning of a continuous process improvement
ISO 9000/TQM Sun (2000) ISO 9000 and TQM are complementary and should be implemented in an
complementary integration with one another
or substitute Source: Summarized from Escanciaon et al.
 organizational success. ISO certification, from their perspective, should constitute the ISO 9000
beginning of the quality management journey. and TQM
Using structural equation modeling and data collected from more than 400 ISO
9000 certified manufacturing companies, Han et al. (2007) studied the relationship between
ISO 9000 and TQM and organizational effectiveness. They concluded that neither ISO 9000
nor TQM has a significant direct relationship with business performance. However, it was
found that ISO 9000 certification and TQM enhanced companies’ competitiveness and that 617
the two practices were found to have significant positive relationship. This interesting
finding has escalated our motivation to develop the synergy index of integrating the two
quality management practices.
The study by McAdam and Jackson (2002) traced the organizational evolution from ISO
9000 to TQM. The authors surveyed 90 leading brewing organizations with more than 1,000
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barrels per year in the UK. The study concluded that ISO 9000 is complementary to TQM and
that ISO had limited effect on the customer satisfaction, performance measurement, and
employee involvement. In addition, TQM can be successfully implemented when it is carried
out after ISO 9000 certification; a finding that was later confirmed by Lakhal (2014). Macadam
and Jackson’s findings were also among the motivating factors to conduct this study.
Our approach to integrating ISO 9000 and TQM is different from existing studies in
many aspects. First, our North American and Saudi samples contain more than
2,900 observations. Such a large sample increases our confidence in the validity of our
proposed model. Second, although our operationalization of the ISO 9000 variable was the
same as in Martinez, our TQM operationalization is quite different. Martinez operationalized
the implementation of TQM as a zero-one variable, while in our study we operationalized it
on a three-point continuum that ranges from no implementation to extensive
implementation, with the middle point of this continuum representing some degree of
implementation. Third, on a 2 × 3 matrix, we classified all possible combinations of
implementing ISO 9000 and TQM. The purpose of this classification was to group responses
based on the degree of implementation of both programs. This study seeks to examine the
impact of different combinations on the four main latent variables of operational
performance. The matrix is fully explained in the “Methodology” section.
Burli et al. (2012) investigated the interrelationship between TQM dimensions and
their combined influence on the results achieved in ISO 9000 certified engineering institutes
in India. The authors surveyed 216 faculty members from ISO 9000-2000 certified institutes
in the southern state of Karnataka in India. Their factor analysis of a list of quality
management statements produced ten factors of which the leadership and top management
were identified as the most important dimension for establishing a quality
management system.
Martinez-Lorente and Martinez-Costa (2004) examined the influence of TQM and ISO
9000 on the companies’ operational performance. They surveyed 1,950 of the biggest Spanish
industrial companies based on the annual sales turnover published by the organization
Fomento de la Produccion. To improve the validity of their results, they used objective as well
as subjective performance measurements. In the subjective measures, the authors asked
managers how their companies compare with their competitors in the following operational
indicators: production costs; fast delivery; flexibility to change production volume and adapt
stocks; rate of defectives; and cycle time. These measures were operationalized on a five-point
Likert-type scale. The objective measures were profitability on sales turnover and profitability
on employee number ratios. They concluded that companies implementing ISO 9000 and
TQM programs jointly did not demonstrate better results than those firms that apply either
system separately; a surprising but interesting finding.
Agus and Sagir (2001) investigated the structural relationships among TQM, competitive
advantage, and financial performance. They conducted personal interviews, and a
 IJQRM questionnaire-based survey. The managers or CEOs of Malaysian manufacturing
35,3 companies were asked to indicate the level of implementation of TQM practices and
the competitive advantage in their organizations. The authors concluded that TQM
practices have an indirect impact on financial performance through competitive advantage.
TQM has a strong effect on competitive advantage that led to a more significant effect on
financial performance.
618 Chong and Rundus (2004) examined the impact of TQM practices, and intensity of
market competition on organizational performance. They surveyed 89 production and
operation managers, using a sample that was drawn from a cross-section of Australia
manufacturing companies. They concluded that the higher the degree of
market competition, the more positive the relationship between customer focus (CF) and
organizational performance. Furthermore, the study confirmed that the higher the degree of
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market competition, the more positive the relationship between TQM practices of product
design and organizational performance.
York and Miree (2004) investigated the relationship between TQM and financial
performance, using a sample of Baldrige award winners and a second sample of state
quality award winning companies. The paper used three different sets of financial
performance measures and concluded that TQM-managed firms were strong performers
both before and after winning an award.
Ana Belen et al. studied the impact of TQM on firm’s performance. They argued that
TQM can generate competitive advantages by developing various programs such as CF, CI,
employee fulfillment, and the organization as a total system. Financial indicators such as
increase in sales or market share were used to measure firm’s performance.
Their sample was selected from companies operating in different industrial sectors
(businesses related to the tiles industry) and services (hotels, dealerships, and transport
companies). The researchers conducted personal interviews with quality managers or
company directors. A total of 231 valid responses were collected and analyzed using the
structural equation modeling approach. The authors concluded that TQM has a positive
impact on firm’s performance and on achieving multiple competitive advantages.
Wilson et al. (2003) examined the significance of the differences between costs and
benefits associated with ISO 9000 certification and stock performance of the Baldrige award
manufacturing firms. Data for the study were obtained from the ISO 9000 survey (1996)
which was conducted by Dun & Bradstreet Information Services. The survey contains
actual cost and benefit data as reported by almost 1,900 ISO 9000 registered companies.
Data for Baldrige award manufacturing firms were obtained for 23 winning manufacturing
companies and their stock performance was used as a measurement of their success.
The study concluded that the economic benefits of ISO 9000 certified companies depend on
the annual sales volume of a company. A firm with higher sales and income can better absorb
the cost of certifications. For the winners of Baldrige award, manufacturing firms, the study
concluded that the Baldrige award winners outperformed the S&P 500 by a ratio of 2:1.
Tsekouras et al. (2002) examined the effect of adopting ISO 9000 on firm’s performance.
A sample of 143 firms in the Greek manufacturing and service sectors, of which 76 firms
adopted ISO 9000 in the period 1989-1993 and 67 firms did not adopt ISO 9000, was analyzed.
To measure firm performance, the study used the four performance measures of profitability,
the growth of return on investment, the growth of returns on equity, the growth of leverage,
and the simple growth of equity. Results indicated that firms that adopt ISO 9000 were larger
companies, producing intermediate goods with higher leverage and less profitability than
their non-adopting firms. The impacts of adopting an ISO 9000 strategy on firm’s performance
with certain dimensions of profitability are not significant in a period of five to six years after
adoption. Results suggest that the adoption of an ISO 9000 quality assurance program is
beneficial in the long term and does not necessarily improve financial ratios immediately.
 Wayhan et al. (2002) investigated the relationship between ISO 9000 certification and ISO 9000
financial performance. A sample of 96 firms in the US manufacturing sector of which and TQM
48 firms adopted ISO 9000 certification in the period from 1993 to 1994 and other 48 firms
that were not ISO 9000 certified. To measure firm’s performance the study used financial
growth as measured by revenue and stockholder equity, and profitability as measured by
gross profit and ROA. A multivariate, repeated measures research design was utilized.
Results revealed that ISO 9000 adopting firms do not have a significant competitive 619
advantage over the non-adopting firms; another interesting finding that warrant our
investigation of this issue.
Quazi et al. (2002) examined the relationship between ISO 9000 certification and quality
management practices of several Singaporean companies. The study used cross-sectional
mail survey and data were collected from ISO 9000 certified and non-certified firms. A total
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of 93 valid responses were received, of which 59 were ISO 9000 certified and 34 were
non-certified firms. The sampled firms were operating in service industries as well as
construction and manufacturing sector. These firms are small- and medium-sized
enterprises. Analysis of variance (ANOVA) was used to examine the relationship between
ISO 9000 certification and quality management practices based on the eight constructs of
quality management practices listed by Rao et al. (1997). These constructs include
leadership, information and analysis, strategic quality planning, human resource
development, quality assurance, supplier relationships, customer orientation, and quality
results. The result reveals that the ISO certification does not have impact on quality
management practices.
Tanl and Gilbert examined the relationship between ISO 9000 certification and TQM
implementation of a number of Malaysian companies. A random sample of
100 companies out of 905 firms, representing 11 percent of certified firms, was selected.
Of these firms, 53 percent were local companies and 47 percent were foreign owned. The
respondents were quality managers and executives. About 16 percent of them were ISO 9001
certified and 84 percent were awarded ISO 9002 certification. The result showed that the ISO
certification has impact on TQM. However, it led to improving intra-firm communication and
satisfying customer needs. The results also showed that majority of respondents agreed that
there were some improvements in the work and product quality in their companies.
Chin et al. examined the relationships between: TQM practices and business
performance; ISO 9000 standards and TQM; and employee involvement and TQM
results. The study used cross-sectional mail survey and the data were collected from the
managers of 100 Shanghai manufacturers companies. The survey was designed according
to the Malcolm Baldrige Quality Award and covers the ten dimensions of TQM. ANOVA
tests were used to examine the relationships between TQM practices and business
performance, between ISO 9000 standards and TQM, and between employee involvement
and TQM practices. The findings of this study showed that firms implementing TQM have
better business results in terms of higher market share growth, higher profitability, and low
costs. The results also revealed that ISO 9000 certified firms did not lead to better TQM
practices and business performance than non-certified firms.

3. The conceptual model and research hypotheses

The proposed model in this paper postulates that the size and age of the plant impact its
progress toward achieving WCM status. It also postulates that the TQM/ISO 9000 synergy
level impacts plant’s effort to achieve WCM status; the progress toward achieving WCM
status impacts the operational performance; the TQM/ISO 9000 synergy level impacts the
operational performance; and the plant’s effort toward achieving WCM status and the
integration of ISO 9000 and TQM positively impact the operational performance of a
manufacturing plant.
 IJQRM Operational performance is measured by quality management, inventory management,
35,3 time-based-related variables, and competitiveness. Quality and inventory are measured by
three observed variables each, while the time-based performance and competitiveness are
measured by four observed variables each. Moderating variables such as the size and the
age of the plant are measured by number of employees and time since the plant started,
respectively. These variables are used to test their impact on the efforts of a manufacturing
620 plant to achieve WCM status as well as their impact on operational performance of a plant.
This model postulates that age and the size of the plant are contributing factors toward
achieving WCM. The hypotheses advanced in this paper, therefore, read:
H1. The age and size of the manufacturing plant will have a positive impact on the
plant’s effort toward achieving WCM status.
H2. Age and size of the manufacturing plant will impact the plant’s effort to integrate
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TQM/ISO 9000 (i.e. the synergy level).

H3. The level of integrating ISO 9000 and TQM has a direct positive impact on the
plant’s effort toward achieving WCM status.
H4. Progress toward achieving WCM status will have a direct positive impact on
operational performance measured by competitiveness, inventory management, and
time-based activities.
H5. The level of integrating ISO 9000 and TQM will have a direct positive impact on
operational performance of competitiveness, inventory management, and time-based
activities.

4. Methodology
4.1 Sample and data collection
Data for this study were collected from 2,961 manufacturing plants. In total, 254 plants were
operating in one developing economy and 2,707 plants were operating in the three developed
economies of the USA, Canada, and Mexico. The data were collected using a questionnaire
designed and tested by the IndustryWeek and PriceWaterhouse. Operational performance
variables were measured objectively. Respondents were assured that the numbers they report
will be kept strictly confidential and will not be revealed to other respondents.

4.2 Variables and measurements

As outlined in Figure 1, operational performance in this study is measured by the four latent
variables of quality management, inventory management, time-based performance, and
manufacturing competitiveness; each was measured by a number of observed variables.

H5

The level of
TQM and ISO
9000 integration
H3
Operational performance:
Progress toward • Quality management
achieving world-class H4 • Inventory management
H2 manufacturing • TB performance
• Competitiveness

H1

Figure 1. Plant’s age and

The conceptual model size
 4.2.1 Quality management. Quality management performance was measured objectively ISO 9000
by three observed variables. Respondents were asked to report their finished-product and TQM
first-pass quality yield as a percentage of the primary product. They were also asked to
report their plant’s scrap and rework cost and the warrantee cost; each was measured as a
percentage of sales.
4.2.2 Inventory management. Inventory management is measured by the four observed
variables of plant’s total inventory turn rate, raw material inventory turn rate, work-in- 621
process inventory turn rate, and finished goods inventory turn rate. Respondents were
asked to report these inventory turn rates in their plants. They were advised, in the
questionnaire, to calculate these inventory turns per the following formulae:
(1) Annual total inventory turn rate ¼ (annual cost of goods sold/average on-hand total
inventory value).
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(2) Annual raw material turn rate ¼ (annual cost of goods sold/average on-hand raw
material inventory vale).
(3) WIP inventory turn rate ¼ (annual cost of goods sold/average on-hand WIP
inventory value).
(4) Annual finished goods inventory turns ¼ (annual cost of goods sold/average on-
hand finished goods inventory value).
Respondents were asked to report these values from the plant’s records. They were assured
that these numbers will be kept strictly confidential and will not be made available to any of
the other respondents.
4.2.3 Time-based performance. Time-based performance is objectively measured by the
following five observed variables: manufacturing cycle time, the changes in this cycle for the
past three years, customer lead time for their primary product, the change in customer lead
time in the past and plant’s on-time delivery rate, and the plant’s on-time delivery rate.
Respondents were asked to report these values from their plant’s records.
For manufacturing cycle time, respondents were asked to report their plant’s
manufacturing cycle time, in days or hours, for their primary product. This cycle time is
defined as the time from the start of plant production to the completion of the product. Changes
in manufacturing cycle time for the past three years were operationalized as a categorical
variable with the following seven categories: decreased more than 40 percent, decreased 21-40
percent, decreased 1-20 percent, stayed the same, increased 1-20 percent, and increased more
than 20 percent. Respondents were asked to check one of these categories.
For customer lead time, respondents were asked to report their plant’s standard
customer lead time, in days. Customer lead time is defined as the time from order entry to
shipment. Change in customer lead time in the past three was operationalized as a
categorical variable with the following categories: decreased more than 40 percent,
decreased 21-40 percent, decreased 1-20 percent, stayed the same, increased 1-20 percent,
and increased more than 20 percent. Respondents were asked to check one of these
categories. For plant’s on-time delivery rate, respondents were asked to report the
percentage of deliveries that were made on time.
4.2.4 Manufacturing competitiveness. Manufacturing competitiveness is measured here
by the following four observed variables: change in per unit manufacturing cost, plant’s cost
reduction strategy, change in total production output, and value of shipment per employee.
For change in per unit manufacturing cost, respondents were instructed to exclude
from this cost the cost of purchased materials. This variable was operationalized as a
categorical variable with the following categories: decreased more than 40 percent,
decreased 21-40 percent, decreased 1-20 percent, stayed the same, increased 1-10 percent,
 IJQRM increased 11-20 percent, and increased more than 20 percent. Respondents were asked to
35,3 check one of these categories. As before, they were assured that these numbers will be
kept strictly confidential and not to be shared with any other respondent.
To address cost efficiency, competitors may use variety of cost reduction strategies.
Respondents were given a list of cost reduction strategies and were asked to choose one or
more of the following strategies. Among these strategies are: reduction in labor cost,
622 reduction in capital expenditure, improving process efficiency/throughput, redesign the
product, and reduce material process. Respondents were also given the choice of reporting
that they do not have any cost reduction strategy.
One of the cost efficiency and competitiveness variables in this study was the change in
production output (unit volume). This variable was operationalized as a categorical
variable with the following seven categories: decreased more than 40 percent, decreased
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21-40 percent, decreased 1-20 percent, stayed the same, increased 1-10 percent, increased
11-20 percent, and increased more than 20 percent. Respondents were asked to check one
of these categories. For the value of shipment per employee, respondents were asked to
report the dollar value of these shipments. They were instructed to include all employees,
not just direct labor.

4.3 The development of the synergy index

Table II shows the classification of respondents in groups, based on whether or not they are
ISO 9000 certified and the extent to which TQM has been implemented.
Table II was further used to classify the ISO 9000/TQM synergy level. Respondents
with neither TQM nor ISO implementation and those who have either of the two programs
were classified as level 0 synergy. Respondents who were ISO 9000 certified with
some TQM implementation were classified as level 1 synergy. Finally, respondents who
were ISO 9000 certified and have extensive implementation of TQM were classified as
level 2 synergy. This classification was used in subsequent analyses. In essence,
the categories (Table II) were utilized to define the level on integration and to identify
level 0 integration as reflecting the nonexistence of both ISO 9000 and TQM. Level 0
integration also shows the existence of either ISO 9000 or TQM as a standalone program.
Level 1 of the integration reflects the existence of ISO 9000 and some implementation of
TQM. Finally, level 2 of integration reflects the existence of ISO 9000 and extensive
TQM implementation.
As Table II shows, 1,361 plants (45.4 percent) of the total sample have not been certified
for ISO 9000. Of these plants, 442 (32.5 percent) do not have TQM, 692 (51 percent) have
some TQM implementation, and 227 (17 percent) have extensive implementation of TQM.
Of the 1,572 ISO 9000 certified plants, only 279 (17.7 percent) plants have not embark
on implementing TQM while 1,521 (52.7 percent) have some implementation and 691
(29.5 percent) have extensive implementation.

TQM implementation
No implementation Some implementation Extensive implementation Total

ISO 9000 certification No Group 1: n ¼ 442 Group 2: n ¼ 692 Group 3: n ¼ 227 1,361
Synergy level 0 Synergy level 0 Synergy level 0
Table II. Yes Group 4: n ¼ 279 Group 5: n ¼ 829 Group 6: n ¼ 464 1,572
Cross-tabulation: ISO Synergy level 0 Synergy level 1 Synergy level 2
9000 By TQM for the Total 721 1,521 691 2,933**
entire sample Note: **Please note that the total sample size is 2,961, with 28 missing values
 5. Analyses ISO 9000
The analysis in this paper proceeded in the following order. First, the profiles of respondents and TQM
were examined in terms of the plant’s country of origin, age, size, and the degree of its
progress toward achieving WCM status. The analysis was taken one step further and
examined if there are any statistically significant differences in the level of integrating ISO
9000 and TQM among the different categories of each of these demographic variables.
Second, we analyzed the impact of the plant’s age and size on the progress toward achieving 623
WCM as well as its impact of synergy level on the plant’s effort to achieve WCM status.
Finally, we tested if there are significant differences in operational performance among
respondents with varying levels of synergy and different degree of progress toward
achieving WCMS. The analysis strategy is depicted in Figure 2.
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5.1 Profile of respondents

5.1.1 Country in which the plant operates. The variable named “country” was created to
distinguish responses from the four countries. Table III shows that responses from the
North American countries represent almost 92 percent of the total sample, with the lowest
response rate from Mexico. The remaining 8 percent are responses for Saudi Arabia.
Kruskal-Wallis H-test was used to test if there are statistically significant differences in
synergy level of integrating ISO 9000 and TQM among the four participating countries. In
essence, the null hypothesis (μ1 ¼ μ2 ¼ μ3 ¼ μ4) vs the alternative hypothesis that at least one
of the μj is different was tested. Since the dependent variable was operationalized as a

(5.1) Profile of respondents (5.2) Testing the main research hypotheses

World-class
H1, H2 TQM /ISO 9000 H3 manufacturing
• Country (5.1.1) synergy and status and
• Size of the plant (5.1.2) operational operational
• Age of the plant (5.1.3) performance performance
• Progress towards WCM (5.1.4)

We also tested if there are any H5 H4

significant differences in
TQM/ISO 9000 synergy
• Quality management
level based on these factors
(H1, H2) • Inventory management
• Time-based performance
• Competitiveness Figure 2.
Analysis strategy
Note: Numbers in parentheses refers to section number in the text

Frequency % Valid (%) Cumulative (%)

USA 2,347 79.3 79.3 79.3

Canada 291 9.8 9.8 89.1
Mexico 69 2.3 2.3 91.4 Table III.
Saudi Arabia 254 8.6 8.6 100.0 Country in which the
Total 2,961 100.0 100.0 plant operates
 IJQRM categorical variable, the rank-based nonparametric statistics test of Kruskal-Wallis H-test was
35,3 used to test this hypothesis. The results showed that there was a statistically significant
difference in the synergy level of integrating ISO 9000 and TQM among the four participating
countries (χ2 value with three degrees of freedom ¼ 77.442, p ¼ 0.000). The results also showed
that the mean rank scores for the four participating countries are 1,430.6 for the USA, 1,428.73
for Canada, 1,631.72 for Mexico, and 1,878.76 for Saudi Arabia.
624 5.1.2 Size of the plant. The size of the plant was measured by number of employees.
Respondents were asked to report the number of employees in their manufacturing facility.
This variable was operationalized as a categorical variable, as indicated in Table IV.
Table IV shows that 75 percent of the respondents are small manufacturers, 16 percent are
large manufacturers, and almost 10 percent of respondents not reporting the size of their
manufacturing plants.
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Once again, the rank-based nonparametric statistics test of Kruskal-Wallis H-test was
used to test this hypothesis. The results showed that there was a statistically significant
difference in the synergy level of integrating ISO 9000 and TQM among manufacturing
plants with different sizes (χ2 value with four degrees of freedom ¼ 104.30, p ¼ 0.000).
The results also showed that the mean rank scores for the five categories of this variable are
1,163.30 for respondents with less than 100 employees; 1,260.30 for respondents who have
between 100 and 249 employees; 1,411.37 for respondents who have between 250 and
499 employees; 1,541.28 for respondents who have between 500 and 999 employees; and
1,611.65 for respondents who have more than 1,000 employees.
5.1.3 Years since startup (age). The age of the plant was operationalized by using time
since plant startup time, with categories ranging from less than 5 years to more than
20 years. Respondents were asked to check the category they belong to. As Table V
indicates, 85 percent of the surveyed plants are 11 years or older; one would expect that
these plants may have advanced to WCM status than younger plants. Table V
also shows that only 13.5 percent are five years old or younger, while 86.5 percent are ten
years or older.

Frequency % Valid (%) Cumulative (%)

Less than 100 430 14.5 16.0 16.0

100-249 1,211 40.9 45.1 61.1
250-499 572 19.3 21.3 82.5
500-999 266 9.0 9.9 92.4
Table IV. 1,000 or more 205 6.9 7.6 100.0
Profile 6: how many Total 2,684 90.6 100.0
employees are at this Missing: system 277 9.4
plant location? Total 2,961 100.0

Frequency % Valid (%) Cumulative (%)

Less than 5 years 127 4.3 4.3 4.3

5-10 years 272 9.2 9.3 13.6
11-20 years 614 20.7 21.0 34.6
Table V. More than 20 years 1,912 64.6 65.4 100.0
Profile 5: how many Total 2,925 98.8 100.0
years has it been since Missing: system 36 1.2
plant start-up? Total 2,961 100.0
 Kruskal-Wallis H-test was utilized to test if there are significant differences in the synergy ISO 9000
level of integrating ISO 9000 and TQM among plants with different age. Due to the way the and TQM
dependent variable was operationalized, the rank-based nonparametric statistics test of
Kruskal-Wallis H-test was used to test this hypothesis. The results showed that there was a
statistically significant difference in the synergy level of integrating ISO 9000 and TQM
among respondent with varying age (χ2 value with three degrees of freedom ¼ 9.002,
p ¼ 0.029). The results also showed that the mean rank scores for the four categories of this 625
variable are: 1,284.04 for manufacturing plants that are less than 5 years of age; 1,394.92 for
manufacturing plants that are between five and ten years of age; 1,455.71 for manufacturing
plants that are between 11 and 20 years of age; and 1,471.26 for manufacturing plants with
more than 20 years of age.
5.1.4 Progress toward achieving the WCM status. Respondents were asked to report
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their progress toward achieving the WCM status. This variable was operationalized on a
four-point continuum as Table VI shows.
Table VI shows that only 5.1 percent of the sample have fully achieved the WCM
status, while almost 86 percent of the surveyed plants have made some to significant
progress toward achieving that status. About 7.1 percent of the respondents reported that
their plants have made no progress toward achieving WCM status. Kruskal-Wallis H-test
was used to test if there are any statistically significant differences in the synergy level
among plants with varying degree of progress toward achieving WCM status. The results
showed that there was a statistically significant difference in the synergy level of
integrating ISO 9000 and TQM among manufacturing plants with a varying degree of
progress toward achieving WCM status (χ2 value with three degrees of freedom ¼ 269.416,
p ¼ 0.000). The results also showed that the mean rank scores for the four categories of
this variables are 957.39 for manufacturing plants with no progress at all, 1,328.40 for
manufacturing plants that have made some progress toward achieving WCM status,
1,661.27 for manufacturing plants that have made significant progress toward achieving
WCM status, and 1,909.60 for manufacturing plants that have fully achieved the
WCM status.

5.2 Testing the main research hypotheses

5.2.1 Size/Age and WCM status hypothesis (H1). We postulate that age and size of the
manufacturing plant will have a positive impact on the plant’s effort toward achieving
WCM status. To determine the impact of age and size of the responding manufacturing
plants on their efforts to achieve WCM status, ordinal logistics regression was used where
the dependent variable is achieving WCM status and the independent variables are the
age and size of the manufacturing plant. Model fitting statistics showed that this
relationship is significant (p ¼ 0.000) with a −2 log likelihood of 262.52, a χ2 of 60.33, and
seven degrees of freedom. The small p-value from the logistics regression test would lead

Frequency % Valid (%) Cumulative (%)

1. No progress 210 7.1 7.2 7.2

2. Some progress 1,479 49.9 50.5 57.7 Table VI.
3. Significant progress 1,089 36.8 37.2 94.8 How much progress
4. Fully achieved 151 5.1 5.2 100.0 has the plant made
Total 2,929 98.9 100.0 toward achieving
Missing: system 32 1.1 world-class
Total 2,961 100.0 manufacturing status?
 IJQRM us to conclude that at least one of the regression coefficients of the model is not equal to 0.
35,3 In addition, Wald test statistics for the predictor size of less than 100 employees is 36.134,
with associated p-value of 0.0001.
5.2.2 Size/Age and ISO 9000/TQM synergy hypothesis (H5). Ordinal logistics regression
was used to test this hypothesis, where the dependent variable is the synergy level of
integrating ISO 9000 and TQM and the independent variables are the age and size of the
626 manufacturing plant. Model fitting statistics showed that this relationship is significant
(p ¼ 0.000) with a −2 log likelihood of 203.873, a χ2 of 41.769, and 7 degrees of freedom,
p ¼ 0.094. The p-value from the logistics regression test would lead to the conclusion that at
least one of the regression coefficients of the model is not equal to 0. In addition, Wald test
statistics for the predictor size of less than 100 employees is 57.728, with associated p-value
of 0.000, for the remaining predictor sizes of this variable Wald test statistics, respectively,
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are: 44.079, p ¼ 0.0001; 11.731, p ¼ 0.001;and 1.484, p ¼ 0.223.

5.2.3 The synergy level and WCMS hypothesis (H3). This hypothesis stated that the level
of integrating ISO 9000 and TQM has direct positive impact on the plant’s effort toward
achieving WCM status. This hypothesis was tested using ordinal logistics regression where
the dependent variable is achieving WCM status and the independent variable the synergy
level of integrating ISO 9000 and TQM. Model fitting statistics showed that this relationship
is significant (p ¼ 0.000) with a −2 log likelihood of 81.615, a χ2 of 25.357, and 4 degrees of
freedom. The small p-value from the logistics regression test led us to conclude that at least
one of the regression coefficients of the model is not equal to 0. In addition, Wald test
statistics for the predictor synergy level 0 is 254.129, with associated p-value of 0.0001.
For the predictor synergy level 1, the Wald statistic is 74.269 and its associated
p-value ¼ 0.0000. The parameter for synergy level 3 was set to 0.
Indeed there are many other factors (literature supports this assertion) other than just
integrating ISO 9000 and TQM that might impact plants’ efforts to achieve WCM status.
Early attempts to explain the factors that influence the achievement of WCM status
included, among other things, the management of inventory, the time-based performance,
and quality management approaches.

5.3 Progress toward WCM status and operational performance (H4)

In this part of the analysis, we test the impact of progress toward achieving WCM status on
operational performance, as measured by quality management, inventory management,
time-based performance, and competitiveness. Since the dependent variables of operational
performance were measured on an interval scale, parametric one-way ANOVA is
appropriate for this part of the analysis with no violations of the ANOVA assumptions.
5.3.1 WCM status and quality management hypothesis (H4.1). Here, we postulate that
progress toward achieving WCM status impacts plant’s finished-product first-pass yield,
scrap and rework, and cost of warrantee. No significant differences were found in product
first-pass yield (F ¼ 3.753, p ¼ 0.011). However, significant differences were found among
plants with various stages of progress toward achieving WCM status in scrap and rework
(F ¼ 1.673, p ¼ 0.171), and cost of warranty (F ¼ 0.394, p ¼ 0.758), respectively.
5.3.2 WCM status and inventory management hypothesis (H4.2). Here, we
hypothesized that progress toward achieving WCM status impacts inventory turns.
Since the dependent variable is operationalized as a continuous variable (interval scale),
one-way ANOVA was the appropriate test to use. One-way ANOVA indicates that no
significant differences were found in plant’s annual total inventory turns (F ¼ 1.369,
p ¼ 0.251), plant’s total annual raw materials turns (F ¼ 0.270, p ¼ 0.847), work in progress
inventory (F ¼ 0.243, p ¼ 0.866), and plant’s annual finished goods turn rates (F ¼ 1.875,
p ¼ 0.132). Table VII shows these results.
 Sum of squares df Mean square F Sig.
ISO 9000
and TQM
What is the plant’s annual Between groups 9,315.526 3 3,105.175 1.369 0.251
total inventory turn rate?
Within groups 4,862,537.061 2143 2,269.033
Total 4,871,852.586 2146
What is the plant’s annual Between groups 14,102.715 3 4,700.905 0.270 0.847
raw materials turn rate? 627
Within groups 34,339,260.554 1973 17,404.592
Total 34,353,363.269 1976
What is the plant’s annual Between groups 410,800.050 3 136,933.350 0.243 0.866
work-in-process (WIP)
inventory turn rate?
Within groups 980,447,617.883 1742 562,828.713
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Total 980,858,417.933 1745

What is the plant’s annual Between groups 77,966.079 3 25,988.693 1.875 0.132 Table VII.
finished goods turn rate? ANOVA (world-class
Within groups 25,119,693.616 1812 13,862.966 manufacturing status
Total 25,197,659.695 1815 by inventory turns)

5.3.3 WCM status and time-based performance hypothesis (H4.3). This hypothesis
postulates that manufacturing plants with different levels of progress toward achieving
WCM status are more likely to: have shortened their manufacturing cycle time,
have improved their manufacturing cycle time over the past three years, have shorten
their customer lead time, have improved their customer lead time over the past three
years, and have enhanced their plant on-time delivery. Kruskal-Wallis H-test was to test if
there are significant differences in any or all of the above five variables among
manufacturing plants with varying stages of progress toward achieving WCM status
(Table VIII).
The analysis showed that significant differences do exist in manufacturing cycle time,
change in manufacturing cycle time over the past three years, change in plant’s customer lead
time over the past three years, and plant’s on-time delivery rate. However, no significant
differences were found in change in customer lead time for plant’s primary product.
5.3.4 WCM status and competitiveness hypothesis (H4.4). Competitiveness was measured
by: change in per unit manufacturing cost in the past three years (Comp.1), primary cost
reduction strategies (Comp.2), change in production output (Volume) in the past three years
(Comp.3), and the approximate dollar value of shipments per employee for the most recent
fiscal year (Comp.4).
Kruskal-Wallis H-test was used to test if there are statistically significant differences in
competitiveness among respondents with varying degree of progress toward achieving
WCM status.
As Table IX shows, significant differences were found in all of the four competitiveness
variables.

5.4 Synergy and operational performance hypotheses (H5)

In this part of the analysis, we test the impact of integrating TQM and ISO 9000 on the
operational performance in terms of quality, inventory management, time-based
performance, and competitiveness. Once again, since the dependent variables of
operational performance are measures on an interval scale, parametric one-way ANOVA
is the appropriate technique to use.
 IJQRM Ranks
35,3 How much progress has
the plant made toward
achieving world-class Mean Asumymp
manufacturing status? n rank χ2 df significance

What is the manufacturing cycle time for No progress 187 1,400.61 37.891 3 0.000
628 a typical finished product? (hours)
Some progress 1,337 1,381.77
Significant progress 976 1,236.42
Fully achieved 126 1,056.90
Total 2,626
How has manufacturing cycle time No progress 192 1,760.83 66.639 3 0.000
changed over the last three years?
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Some progress 1,396 1,401.38

Significant progress 1,041 1,283.68
Fully achieved 140 1,459.66
Total 2,769
For primary products what is the plant’s No progress 185 1,326.55 4.406 3 0.221
customer lead time (order entry to
shipment)? (days)
Some progress 1,343 1,335.67
Significant progress 969 1,285.44
Fully achieved 124 1,220.31
Total 2,621
How has customer lead time changed No progress 190 1,668.63 43.202 3 0.000
over the past three years?
Some progress 1,371 1,357.13
Significant progress 1,009 1,280.52
Fully achieved 134 1,398.93
Total 2,704
What is the plant’s on-time delivery rate? No progress 185 1,114.96 57.064 3 0.000
Some progress 1,336 1,253.79
Significant progress 1,002 1,432.13
Table VIII.
Kruskal-Wallis test Fully achieved 128 1,553.93
(WCM status and Total 2,651
time-based Note: Profile 1: how much progress has the plant made toward achieving world-class manufacturing
performance) status?

5.4.1 Synergy and quality management hypothesis (H5.1). To test this hypothesis, we
postulate that the integration level of TQM and ISO 9000 impacts the quality variables of
finished-product first-pass yield, scrap and rework, and cost of warranty. One-way
ANOVA was used, where these three variables are the dependent variables and the
synergy level of integrating TQM and ISO 9000 is the independent variable. The results of
one-way ANOVA indicated that significant differences were found in finished-product
first-pass yield (F ¼ 2.886, p ¼ 0.05). No significant differences were found in scrap and
rework costs (F ¼ 1.787, p ¼ 0.1) and warrantee cost (F ¼ 0.827, P ¼ 0.437). One might
surmise that although many of these manufacturing plants are more than 20 years old and
that they have achieved a moderate degree progress toward achieving WCM status,
the scrap and warrantee costs of their products did not vary regardless of the level of
TQM/ISO 9000 integration.
5.4.2 Synergy and inventory management hypothesis (H5.2). To test this hypothesis, we
postulate that the synergy level of integrating ISO 9000 and TQM impacts inventory turns,
one-way ANOVA was utilized, where the depend variables are the inventory turns of raw
 Ranks
ISO 9000
How much progress and TQM
has the plant made
toward achieving
world-class Mean Asump
manufacturing status? n rank χ2 df significance

How have per unit manufacturing costs at No progress 193 1,732.27 61.158 3 0.000 629
this plant, excluding purchased materials,
changed in the last three years?
Some progress 1,384 1,375.74
Significant progress 1,008 1,272.61
Fully achieved 134 1,318.58
Total 2,719
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In the last six months, which one of the No progress 196 1,453.11 9.212 3 0.027
following has been the plant’s primary cost
reduction initiative?
Some progress 1,416 1,353.03
Significant progress 1,034 1,438.23
Fully achieved 140 1,389.07
Total 2,786
How has total production output (unit No progress 192 1,141.87 41.792 3 0.000
volume) at this plant changed in the last year?
Some progress 1,404 1,333.39
Significant progress 1,025 1,460.96
Fully achieved 136 1,566.91
Total 2,757
For this plant what is the approximate No progress 148 828.31 37.339 3 0.000
dollar value of shipments per employee for
the most recent fiscal year?
Some progress 1,042 969.31
Significant progress 748 1,087.51
Fully achieved 81 1,149.69
Total 2,019 Table IX.
Notes: aKruskal-Wallis test; bgrouping variable: Profile 1: how much progress has the plant made toward WCM status and
achieving world-class manufacturing status? competitiveness

material, WIP, finished good inventory, and the total inventory turns; the independent
variable is the synergy level of integration ISO 9000 and TQM. The results of ANOVA
analysis indicate that significant differences were only found in plant’s annual total
inventory turns (F ¼ 3.448, p ¼ 0.032), no significant differences were found in plant’s total
inventory turns (F ¼ 1.447, p ¼ 0.215), work in progress inventory (F ¼ 0.909, P ¼ 0.403),
and plant’s annual finished goods turn rates (F ¼ 0.215, p ¼ 0.807). In essence, we can infer
that regardless of the level of the synergy that results from integrating ISO 9000 and TQM,
participating plants do not differ in their management of raw materials, WIP, and finished
goods inventory turn rates.
5.4.3 Synergy and time-based hypothesis (H5.3). Since mid-1990s, time has emerged as a
performance metric for companies and the supply chains to which they belong. These
companies and their supply chains have come to realize that competing based on time will
definitely impact their operational and financial performance. They have also realized that
companies that are first to market build customer loyalty and increase their market share.
This hypothesis postulates that manufacturing plants with higher synergy levels are more
likely to: have shortened their manufacturing cycle time, have improved their
manufacturing cycle time over the past three years, have shorten their customer lead
 IJQRM time, have improved their customer lead time over the past three years, and have enhanced
35,3 their plant on-time delivery.
One-way ANOVA was used to test if there are significant differences in any or all of the
above five variables among manufacturing plants with different ISO 9000/TQM synergy.
The analysis showed that significant differences do exist among respondents with
varying levels of TQM/ISO 9000 synergy in: manufacturing cycle time (F ¼ 3.725,
630 p ¼ 0.024), change in manufacturing cycle time (F ¼ 9.734, p ¼ 0.000), plant’s customer
lead time (F ¼ 6.347, p ¼ 0.002), change in customer lead time (F ¼ 3.478, p ¼ 0.031), and
plant’s on-time delivery (F ¼ 3.900, p ¼ 0.020). Since the ISO 9000/TQM synergy level has
such an impact on-time-based performance, one can surmise that organizations with
higher level of this synergy are indeed time-based competitors and use time as a
performance metric in their plants.
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For change in manufacturing cycle time over the past few years, frequency analysis was
further conducted to see if these manufacturing plants continue their efforts to be time-
based competitors. Frequency analysis showed that more than 71.8 percent of the
respondents have experienced a decrease in the manufacturing cycle time by 1 to more than
40 percent while 19.8 percent of the responding manufacturing plants have no change in the
manufacturing cycle time. Finally, 8.4 percent of these manufacturing plants have
experienced an increase in the manufacturing cycle time. Since these changes were reported
over three years’ period, manufacturing plants that integrated the TQM ISO 9000 and
taking all measures to be compete on the bases of time. Hence their time-based performance
distinguished them from their counter parts.
5.4.4 Synergy and competitiveness hypothesis (H5.4). Over the past three decades, quality
and operations management literature has confirmed that managing quality impacts the
efficiency and competitiveness of a manufacturing plant. It goes without saying that
effective management of quality results in less scrap, less rework, less defects, more
productivity and efficiency, and of course better quality products; these translate to higher
efficiency and better bottom line. This part of the study examines the synergistic impact of
integrating TQM and ISO 9000 on company’s competitiveness. Competitiveness was
measured by the following four observed variables: change in per unit manufacturing cost
in the past three years, primary cost reduction strategies, change in production output
(Volume) in the past three years, and the approximate dollar value of shipments per
employee for the most recent fiscal year.
One-way ANOVA indicated that no statistically significant differences among
respondents with varying levels of TQM/ISO 9000 synergy in the following variables:
change of manufacturing costs (F ¼ 7.507, p ¼ 0.001), in plant’s primary cost reduction
initiative (F ¼ 3.83, p ¼ 0.034), and in dollar value shipment per employee (F ¼ 15.053,
p ¼ 0.000). However, significant differences were found in production volumes (F ¼ 2.641,
p ¼ 0.071) among these respondents.

6. Discussion and conclusion

Quality management, inventory management, time-based performance, and
competitiveness are the hallmark of a WCM organization. This paper addresses in a
unique and unprecedented way, an empirically derived synergy index for integrating ISO
9000 and TQM principles and practices. The development of this index is based on a large
sample of 2,961 responses from manufacturing plants operating in one developing and three
developed economies.
The motivation for our study is manifold. First, we subscribe to the long-standing view
that TQM and ISO 9000 are not substitutes and should not be treated as such. They are
complementary to one another, regardless of which one should be implemented first.
 Proper strategies for the implementation of TQM and ISO 9000 programs will facilitate the ISO 9000
manufacturing organization’s journey toward achieving a WCM status. Second, and TQM
manufacturing organizations operating in developed economies have utilized quality as
one of their main competitive priorities; developing economies are following pursuit in this
direction. An emerging economy such as that of the Kingdom of Saudi Arabia started to
place heavy emphasis on quality management in their manufacturing and service
organizations. The comparison made here between the developed and developing 631
economies proofed the point that quality is universally accepted as the main route to
compete in global markets.
This paper postulates that the integration of TQM and ISO 9000 will produce a
synergistic impact on plant’s operational performance, as measured by quality
management, inventory management, and competitiveness. This paper investigated if
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there are significant differences in quality management, inventory management, time-based

performance, and competitiveness among manufacturing organizations with varying levels
of TQM and ISO 9000 synergy. It also investigated the impact of manufacturing plant size
and age on plants’ operational performance. The analysis of the results confirms the long-
standing view that the integration of ISO 9000 and TQM impacts the operational
performance of manufacturing organizations and enhances their competitive advantage.
The findings are useful and have implications for both academics and practitioners; they
also suggest that such integration is necessary for CI efforts.
The take home message of these findings is multifaceted. First, quality management,
inventory management, time-based performance, and competitiveness should
always be the driving forces for manufacturing organizations’ efforts in their journey
toward achieving WCM status. Second, time-based competitors should take
innovative approach to managing their inventory, given the appropriate environmental
scanning and the design and implementation of agile manufacturing strategies in order to
deal with the accelerated changes in business environment. Third, competing in
global markets should be based on speed and agility to respond the ever changing
customer needs. Taking an integrative approach to managing quality will facilitate
this process.
The implications of our study for academics and practitioners are many. The study
encourages the integration of ISO 9000 and TQM in order to achieve multiple competitive
advantages and speed the progression toward achieving WCM status. Implementing either
of the two quality management programs is a step in the right direction for emerging
economies. However, these two quality management programs are complementary rather
than substitutes of one another. Yet, there is a need for more local and regional studies in
different parts of the globe to support this hypothesis. Young researchers should embark on
similar studies in different parts of the world. For practitioners, the integration of ISO 9000
and TQM will facilitate the management efforts to CI programs and strategize about their
organization’s competitive advantage.

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Further reading
Ana Belen, E.T., Wan Carlas, B.L. and Puig, V.R. (2002), “Measuring the relationship between total
quality management and sustainable competitive advantage”, Total Quality Management,
Vol. 12 No. 8, pp. 932-938.
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perspective”, Quality Management Journal, Vol. 22 No. 4, pp. 54-64.
Garcia-Bernal, J. and Ramirez-Aleson, M. (2015), “Why and how TQM leads to performance
improvement”, Quality Management Journal, Vol. 22 No. 3, pp. 23-37.
Georgiev, S. and Georgiev, E. (2015), “Motivational factors for the adoption of ISO 9001 standards in
Eastern Europe: the case of Bulgaria”, Journal of Industrial Engineering and Management, Vol. 8
No. 3, pp. 1020-1050.
Gilbert, L.T. and Sia, L. (2001), “ISO 9000: the answer for total quality management implementation?
The Malaysian case”, Total Quality Management, Vol. 12 No. 2, pp. 223-229.
Lee, C.Y. and Lee, H.-H. (2015), “The integrated relationship among organizational learning, TQM, and
firm’s business performance: a structural equation modeling approach”, International Business
Research, Vol. 8 No. 5, pp. 43-54.
Martinez-Lorente, A.R., Dewhurst, F. and Gallego-Rodriguea, A. (2000), “Relating TQM, marketing and
business performance: an exploratory study”, International Journal of Production Research,
Vol. 38 No. 14, pp. 3227-3246.
Tena, A.B.E., Llusar, J.C.B. and Puig, V.R. (2001), “Measuring the relationship between total quality
management and sustainable competitive advantage: a resource-based view”, Total Quality
Management, Vol. 12 Nos 7/8, pp. 932-938.

About the authors

Mohamed A. Youssef received a BCom Degree and a pre-MBA Degree in Business Administration
from Cairo University in Egypt, an MBA Degree in Operations Research from Baruch College of the
CUNY, an MPhil Degree in Business, and a PhD Degree in Operations Management both from the City
University of New York. His published papers have appeared in numerous reputable journals such as
IJOPM, IJQRM, IJTM, IJFMS, TQM and Business Excellence, Journal of Manufacturing Management,
 IJQRM IMDS, and International Journal of Corporate Communication and Industrial Engineering.
35,3 His published papers have received more than 1860 citations. Mohamed A. Youssef is the
corresponding author and can be contacted at: mohamed.youssef@aue.ae
Dr Eyad M. Youssef is an Assistant Professor of Marketing and International Business in the
Department of Marketing and Finance, College of Business of Frostburg State University. He received
a BS Degree in Chemistry from Norfolk State University, an MBA Degree and a PhD Degree in
Business Administration, majoring in Marketing and International Business, from Old Dominion
634 University. He teaches Marketing and International Business courses in the Business Department.
His research interests are in the fields of consumer behavior, customer satisfaction, quality
management, research methodology, cross-culture research, and international business. He has
published a number of articles in the area of quality management practices and consumer behavior.
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