The Synergistic Impact of ISO9000 and TQM On Operational Performance and Competitiveness

International Journal of Quality & Reliability Management
The Synergistic Impact of ISO 9000 and TQM on Operational Performance and competitiveness
Mohamed A. Youssef, Eyad M. Youssef,
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To cite this document:
Mohamed A. Youssef, Eyad M. Youssef, "The Synergistic Impact of ISO 9000 and TQM on Operational Performance and
competitiveness", International Journal of Quality & Reliability Management, https://doi.org/10.1108/IJQRM-02-2016-0024
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The Synergistic Impact of ISO9000 and TQM on Operational
Performance and competitiveness
1. INTRODUCTION
The implementation and integration of Total Quality Management and ISO 9000 has
been a hot debate among academics and practitioners since early 1990’s. 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 900 complementary or a substitutes? Secondly, 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 for example
Lakhall (2014), Bernal et al (2015), Ong (2015), Georgiv (2015), Abusa and Gibson (2013),
Burli et al (2012), Askey and Dale (1994), Taylor (1995), Weston (1995), Carlesson and
Carlesson (1995), Idris et al (1996), Tsiotras and Gotmmani (1996), Mallak et al (1997), Meegan
and Taylor (1997), Terziovsky et al (1997), Brown et al (1998), Quazi and Padibjo (1998) , Lee
at 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 for example Martinez-Lorente et al (1999,
2001, 2004 and 2004b). The results and findings of Martinez-Lorente (2004b) motivated us to
2
develop and test a model for the synergistic impact of these two programs on operational
performance of manufacturing plants in two different economies.
Lakhall (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
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 (1) employees empowerment to develop work procedures,
(2) cooperation and collaboration among organizational units throughout the organization, and
(3) 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 that 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
does not happen overtime; it takes at least three to five years for TQM to produce an impact on
organizational performance, see for example 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 zero otherwise. TQM implementation was
3
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 2900 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 performance
among manufacturing plants with varying level of ISO 9000 / TQM synergy. Secondly, the paper
examines the impact of the size and the age of the plant on its effort towards achieving world
class manufacturing status. Finally, the paper seeks to explore if the synergy level would impact
the operational performance and company’s effort to achieve world class manufacturing status.
The reminder of this paper is organized as follows. First, relevant literature is 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 five of
this paper shows the statistical analyses for testing the main research hypotheses. The concluding
section of this paper discusses our findings and their implications for academics and
practitioners.
2. RELEVENT 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
4
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 exist a vast body of knowledge that sees the ISO 9000 as the
stepping stone for TQM and thus for continuous improvement. Table (1) below summarizes
some of the studies in this regard.
INSERT TABLE (1) JUST ABOUT HERE
The studies summarized on table (1) 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 (2002) 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 organizational success. ISO certification, from their perspective, should constitute the
beginning of the quality management journey.
Using structural equation modeling and data collected from more than 400 ISO 9000
certified manufacturing companies, Han and Ebrahimpour (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 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 Macadam and Jackson (2002) traced the organizational evolution from
ISO 9000 to TQM. The authors surveyed ninety leading brewing organizations with more than
1,000 barrels per year in the United Kingdom. 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 Lakhall (2014). Macadam and Jackson’s findings were also among the motivating
factors to conduct this study.
5
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 2900
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 (2004), 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 two by
three 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.
MartõÂnez-Lorente and MartõÂnez-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: (1) production costs; (2) fast delivery; (3) flexibility to change production volume and
adapt stocks; (4) rate of defectives; and (5) 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.
6
Agus and Sagir (2001) investigated the structural relationships among total quality
management, competitive advantage and financial performance. They conducted personal
interviews, and a questionnaire-based survey. The managers or CEOs of Malaysian
manufacturing 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.
Chong and Rundus (2004) examined the impact of TQM practices, and intensity of
market competition on organizational performance. They surveyed eighty-nine production and

operation managers, using a sample 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 and organizational performance. Furthermore, the
study confirmed that the higher the degree of 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, Llusar and Puig, (2001) studied the impact of TQM on firm’s performance.
They argue that TQM can generate competitive advantages by developing various programs
such as Customer focus (CF), Continuous improvement (CI), Employee fulfillment (EF), the
organization as a total system (TS). 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 advantage.
7
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 two to one.
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 5- 6 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
financial performance. A sample of 96 firms in the US manufacturing sector of which forty-eight
firms adopted ISO 9000 certification in the period from 1993 to 1994 and another forty-eight
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 advantage over the
non-adopting firms; another interesting finding that warrant our investigation of this issue.
8
Quazi, Hong, and Meng (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 none-certified firms.
A total of ninety-three valid responses were received, of which fifty-nine were ISO 900- certified
and thirty-four 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 (SME’s) enterprises. Analysis of variance was used to examine the relationship between
ISO 9000 certification and quality management practices based on the 8 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 (2001) examined the relationship between ISO 9000 certification and
total quality management implementation of a number Malaysian companies. A random sample
of 100 companies out of 905 firms, representing 11% of certified firms was selected. Of these
firms 53% were local companies and 47%, were foreign owned. The respondents were quality
managers and executives. About 16% of them were ISO 9001-certified and 84% 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 (2000) examined the relationships between: (1) total quality management
(TQM) practices and business performance, (2) ISO 9000 standards and TQM, and (3) between
employee involvement and TQM results. The study used cross-sectional mail survey and the
data were collected from the managers of one hundred Shanghai manufacturers companies. .
The survey was designed according to the Malcolm Baldrige Quality Award and covers the ten
dimensions of TQM. Analysis of variance (ANOVA) tests were used to examine the
relationships between TQM practices and business performance, between ISO 9000 standards
and TQM, 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
9
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 towards achieving World-Class Manufacturing (WCM) status. It also postulates that
(1) the TQM / ISO 900 synergy level impacts plant’s effort to achieve WCM status; (2) the
progress toward achieving WCM status impacts the operational performance; (3) the TQM/ISO
9000 synergy level impacts the operational performance; (4) the plant’s effort toward achieving
world-class manufacturing status and the integration of ISO 9000 and TQM positively impact
the operational performance of a manufacturing plant.
Operational performance is measured by quality management, inventory management,
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 plant to achieve world-
class manufacturing status as well as their impact on operational performance of a plant.
INSERT FIGURE (1) JUST ABOUT HERE
This model postulates that age and the size of the plant are contributing factors towards
achieving world-class manufacturing. 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 towards achieving world-class
manufacturing status.
H2 Age and size of the manufacturing plant will impact the plant’s effort
to integrate TQM / ISO 900 ( i.e. the synergy level)
H3 The level of integrating ISO 9000 and TQM has a direct positive
impact on the plant’s effort towards achieving world-class
H4 Progress towards Achieving world-class manufacturing status will

have a direct positive impact on operational performance measured
10
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 2961 manufacturing plants. Two hundred and
Fifty-four plants were operating in one developing economy and 2707 plants were operating in
the three developed economies of the U.S., 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.
4.2.1 Quality management
Quality management performance was measured objectively by three observed variables.
Respondents were asked to report their finished-product 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-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 = (annual cost of goods sold / average on-hand total
inventory value).
11
2. Annual raw material turn rate = (annual cost of goods sold / average on-hand raw
material inventory vale).
3. WIP inventory turn rate = (annual cost of goods sold / average on-hand WIP
inventory value).
4. Annual finished goods inventory turns = (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: (1) manufacturing cycle time, (2) the changes in this cycle for the past three years, (3)
customer lead time for their primary product, (4) the change in customer lead time in the past
and plant’s on-time delivery rate, (5) 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 was operationalized as a categorical variable
with the following seven categories: (a) decreased more than 40%, (b) decreased 21 – 40%, (c)
decreased 1-20%, (d) stayed the same, (e) increased 1-20%, and (f) increased more than 20%.
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: (a) decreased more than 40%, (b) decreased 21 – 40%, (c)
decreased 1-20%, (d) stayed the same, (e) increased 1-20%, and (f) increased more than 20%.
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
12
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 variables was operationalized as a categorical
variable with the following categories: a) decreased more than 40%, (b) decreased 21 – 40%,
(c) decreased 1-20%, (d) stayed the same, (e) increased 1-10%, (f) increased 11-20%, and (g)
increased more than 20%. Respondents were asked to 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: (a) reduction in labor cost, (b) reduction
in capital expenditure, (c) improving process efficiency / throughput, (d) redesign the product,
(e) 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: (a) decreased more than 40%, (b) decreased 21 – 40%, (c)
decreased 1-20%, (d) stayed the same, (e) increased 1-10%, (f) increased 11-20%, and (g)
increased more than 20%. 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 (2) below 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 (2) 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 zero synergy. Respondents who were ISO 9000 certified with some TQM
implementation were classified as level one synergy. Finally, respondents who were ISO900
13
certified and have extensive implementation of TQM were classified as level two synergy. This
classification was used in subsequent analyses. In essence, the categories table 2 were utilized
to define the level on integration and to identify Level zero integration as reflecting the
nonexistence of both ISO 9000 and TQM. level zero integration also shows the existence of
either ISO 9000 or TQM as a standalone program. Level one 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 (2) shows, thirteen hundred and sixty-one plants (45.4%) of the total sample
have not been certified for ISO 9000. Of these plants, 442 (32.5%) do not have TQM, 692 (51%)
have some TQM implementation and 227 (17%) have extensive implementation of TQM. Of the
1572 ISO 9000 certified plants, only 279 (17.7%) plants have not embark on implementing
TQM while 1521(52.7%) have some implementation and 691(29.5%) have extensive
implementation.
5. ANALYSES
The analysis in this paper proceeded in the following order. First, the profiles of respondents
were examined in terms of the plant’s country of origin, age, size, and the degree of its progress
towards achieving world class manufacturing 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. Secondly,
we analyzed the impact of the plant‘s age and size on the progress towards achieving 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 towards achieving WCMS. The analysis strategy is depicted in
figure (2) below.
INSERT FIGURE (2) JUST ABOUT HERE
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 (3) shows that responses from the North American countries represent almost
92% of the total sample, with the lowest response rate from Mexico. The remaining 8% are
responses for Saudi Arabia.
14

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 ( µ 1= µ 2 = µ 3 = µ 4 ) versus the alternative hypothesis that at least one of the µ j is
different, was tested. Since the dependent variable was operationalized as a categorical variable,
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 the four participating countries, (Chi-square
value with three degrees of freedom = 77.442, P=0.000). the results also showed that the mean
rank scores for the four participating countries are 1430.6 for the USA, 1428.73 for Canada,
1631.72 for Mexico, and 1878.76 for Saudi Arabia.
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 (4) below. Table (4) shows that 75% of the
respondents are small manufacturers, 16% are large manufacturers, and almost 10% of
respondents not reporting the size of their manufacturing plants.
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
(Chi-square value with four degrees of freedom = 104.30 , P=0.000) . the results also showed
that the mean rank scores for the five categories of this variable are 1163.30 for respondents with
less than 100 employees , 1260.30 for respondents who have between 100 and 249 employees,
1411.37 for respondents who have between 250 and 499 employees, 1541.28 for respondents
who have between 500 and 999 employees, and 1611.65 for respondents who have more than
1000 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 five years to more than twenty years. Respondents were asked check the
category they belong to. As table (5) below indicates, 85% of the surveyed plants are eleven
15
years or older; one would expect that these plants may have advanced to WCM status than
younger plants. Table (5) also shows that only 13.5% are five years old or younger, while 86.5%
are ten years or older.
Kruskal Wallis H-Test was utilized to test if there are significant differences in the synergy level
of integrating ISO 9000 and TQM among plants with different age. Due to the way the
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. (Chi-square value with three degrees of freedom = 9.002 , P=0.029) . the
results also showed that the mean rank scores for the four categories of this variable are:
1284.04 for manufacturing plants that are less than 5 years of age, 1394.92 for manufacturing
plants that are between five and ten years of age , 1455.71 for manufacturing plants that are
between eleven and twenty years of age , 1471.26 for manufacturing plants with more than 20
years of age.
5.1.4 Progress towards achieving the WCM status

Respondents were asked to report their progress towards achieving the WCM status. This
variable was operationalized on a 4-point continuum as table (6) below shows.
Table (6) shows that only 5.1% of the sample have fully achieved the WCM status, while
almost 86% of the surveyed plants have made some to significant progress towards aching that
stats. About 7.1% of the respondents reported that their plants have made no progress towards
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
towards achieving world-class manufacturing 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 towards achieving world-class
manufacturing status, (Chi-square value with three degrees of freedom = 269.416, P=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, 1328.40 for manufacturing plants that have
made some progress towards achieving world class manufacturing status, 1661.27 for
16
manufacturing plants that have made significant progress towards achieving world class
manufacturing status, and 1909.60 for manufacturing plants that have fully achieved the world
class manufacturing 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 towards achieving world-class manufacturing status. To determine the impact
of age and size of the responding manufacturing plants on their efforts to achieve world – calss
manufacturing status , ordinal logistics regression was used where the dependent variable is
achieving world – class manufacturing status and the independent variables are the age and size
of the manufacturing plant. Model fitting statistics showed that this relationship is significant
(P=0.000) with a -2 loglikelihood of 262.52, a chi-squre of 60.33 and 7 degrees of freedom. The
small P-value from the logistics regression test would lead us to conclude that at least one of the
regression coefficients of the model is not equal to zero. In addition, Wald test statistics for the
predictor size of less than 100 employees is 36.134, with associated P-vale 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 manufacturing plant. Model fitting statistics showed that this relationship is
significant (P=0.000) with a -2 loglikelihood of 203.873, a chi-square of 41.769 and 7 degrees of
freedom, P=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 zero. In addition, Wald
test statistics for the predictor size of less than 100 employees is 57.728, with associated P-vale
of 0.000, for the remaining predictor sizes of this variable are (44.079 ,P= 0.0001), (11.731,
p=0.001), (1.484, P=0.223) respectively.
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 towards achieving world-class manufacturing status. This hypothesis
was tested using ordinal logistics regression where the dependent variable is achieving world –
class manufacturing status and the independent variable the synergy level of integrating ISO
9000 and TQM. Model fitting statistics showed that this relationship is significant (P=0.000)
17
with a -2 logliklihood of 81.615, a chi-squre 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 zero. In addition, Wald test statistics for the predictor
synergy level zero is 254.129, with associated P-vale of 0.0001. for the predictor synergy level
one the Wald statistic is 74.269 and its associated P-value = 0.0000. the parameter for synergy
level 3 was set to zero
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.
5.2.3 Progress towards WCM status and Operational Performance (H4)

In this part of the analysis we test the impact of progress towards achieving world class
manufacturing 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.
5.2.3.1 WCM status and Quality Management Hypothesis (H4.1)
Here, we postulate that progress towards 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=3.753, P = 0.011). However, significant differences were found
among plants with various stages of progress towards achieving world class manufacturing status
in scrap and rework (F=1.673, P= 0.171), and cost of warranty (F= .394, P = 0.758)
respectively.
5.2.3.2 WCM status and inventory Management Hypothesis (H4.2)
Here, we hypothesized that progress towards 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= 1.369, P=.251). plant’s
total annual raw materials turns (F=.270 , P=.847). work in progress Inventory (F=.243,
18
P=.866), and plant’s annual finished goods turn rates (F=1.875, P=.132). Table (7) below shows
these results.
5.2.3.3 WCM status and time-based performance Hypothesis (H4.3)
This hypothesis postulates that manufacturing plants with different levels of progress towards
achieving world class manufacturing status are more likely to: (1) have shortened their
manufacturing cycle time, (2) have improved their manufacturing cycle time over the past three
years. (3) have shorten their customer lead time, (4) have improved their customer lead time over
the past three years, and (5) 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 towards achieving world class
INSERT Table (8) JUST ABOUT HERE
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 , plant’s on time delivery rate. However, no significant differences were
found in change in customer lead-time for plant’s primary product
5.2.3.4 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 towards achieving WCM
status
As table (9) shows, significant difference were found in all of the four competitiveness
variables.
5.2.4 Synergy and Operational Performance Hypotheses (H5)
19
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.
5.2.4.1 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 analysis of variance 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=2.886 and P = .05). No significant differences were found in scrap and rework costs
(F= 1,787 and P= .1) and warrantee cost (F= 0827 and P = .437). One might surmise that
although many these manufacturing plants are more than 20 years old and that they have
achieved a moderate degree progress towards achieve world class manufacturing status, the scrap
and warrantee costs of their products did not vary regardless of the level of TQM / ISO 9000
integration.
5.2.4.2 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 (a) raw material, (b) WIP, (c) finished good inventory, and (d) the total
inventory turns; the independent variable is the synergy level of integration ISO 9000 and TQM.
The results of ANOVA analysis indicate, significant differences were only found in plant’s
annual total inventory turns (F=3.448, P=.032). No significant differences were found in plant’s
total inventory turns (F=1.447, P=.215). Work In Progress Inventory (F=.909, P=.403), and
plant’s annual finished goods turn rates (F=.215, P=.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.
5.2.4.3 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
20
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: (1) have shortened their manufacturing cycle time, (2) have
improved their manufacturing cycle time over the past three years. (3) have Shorten their
customer lead time, (4) have improved their customer lead time over the past three years, and (5)
have enhanced 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/ISO9000 synergy in: (1) manufacturing cycle time (F=3.725, P = .024 ), (2) change in
manufacturing cycle time(F=9.734, P = .000 ) , (3) plant’s customer lead time(F=6.347, P =
.002 ) , (4) change in customer lead time (F=3.478, P = .031 ) , and (5) plant’s on time
delivery(F=3.900, P = .020 ) . Since the ISO 9000 / TQM synergy level have 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.
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% of the respondents have
experienced a decrease in the manufacturing cycle time by 1 to more than 40% while 19.8% of
the responding manufacturing plants have no change in the manufacturing cycle time. Finally,
8.4% 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
5.2.4.4 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 re-work, less
defects, more productivity and efficiency, and of course better quality products; These translate
21
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 Analysis of Variance, ANOVA indicated that no statistically significant
differences among respondents with varying levels of TQM/ISO 9000 synergy in the following
variables: (a) change of manufacturing costs (F= 7.507 and P = .001), (b) in plant's primary cost
reduction initiative (F= 3.83, P= .034), and in dollar value shipment per employee (F=15.053, P
= .000). However, significant differences were found in production volumes (F = 2.641, P =
0.071) among these respondents.
6. Discussion and Conclusion
Quality management, inventory management, time-based performance, and competitiveness, are
the hallmark of a world class manufacturing 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 2961
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
manufacturing organization’s journey toward achieving a world-class manufacturing status.
Second, 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 economies proofed the point that
quality is universally accepted as the main route to compete in global markets.
22
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 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 a manufacturing
organizations and enhance their competitive advantage. The findings are useful and have
implications for both academics and practitioners; they also suggest that such integration is
necessary for continuous improvement 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 towards achieving
World-Class manufacturing 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 world-class manufacturing 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 a 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 ISO9000 and
TQM will facilitate the management efforts to continuous improvement programs and
strategize about their organization’s competitive advantage.
23
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26
Figure (1)
The Conceptual Model
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
Plant’s Age and

Size
28
Figure ( 2 )
ANALYSIS STRATEGY
(5.1) Profile of respondents (5.2) Testing the main research hypotheses
TQM /ISO 9000 WORLD Class

• Country (5.1.1) synergy and manufacturing
• Size of the Plant(5.1.2) H1, 2 Operational H3 Status and
• Age of the Plant (5.1.3) Performance Operational
• Progress towards WCM(5.1.4) Performance
We also tested if there are any

significant differences in
TQM / ISO 9000 synergy H5 H4
level based on these factors
(H1,2) • Quality Management
• Inventory Management
• Time-based performance
• Competitiveness
Hint: Numbers in ( ) refers to section number in the text

29
Table (1)
ISO 9000 / TQM complementary or Substitute
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
Carlesson and Carlesson ISO 9000 is a step towards TQM
(1996)
Idris et al (1996) ISO 9000 is a logical and practical step toward TQM
Tsiotras and Gotzamani Use ISO 9000 as an entry key to TQM
(1996)
Meegan and Taylor ISO 9000 and TQM should be seen as complementary
(1997)
Terziovsky at el (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
(1998)
Lipovatz et al (1999) ISO 9000 is the basis for achieving continuous quality
improvement
Al-Khalifa and Aspinwal ISO 9000 is only the beginning of a continuous process
(2000) improvement.
Sun (2000) ISO 9000 and TQM are complementary and should be
implemented in an integration with one another.
Source: Summarized from : Escanciaon et al (2001)

30
Table (2)
Cross tabulation: ISO9000 By TQM for the entire sample
Count
TQM Implementation Total

No Some Extensive
implementation implementation implementation
Group 1: n=442 Group2: n=692 Group3: n=227
No 1361
ISO9000 Synergy Level Zero Synergy Level Zero Synergy Level Zero
Certification Group4: n=279 Group5: n=829 Group6: n=464
Yes 1572
Synergy Level Zero Synergy Level One Synergy Level Two
Total 721 1521 691 2933**
** Please note that the total sample size is 2961, with 28 missing values
31
Table (3)
Country in which the Plant operates
Frequency Percent Valid Percent Cumulative
Percent
USA 2347 79.3 79.3 79.3
Canada 291 9.8 9.8 89.1
Mexico 69 2.3 2.3 91.4
Saudi Arabia 254 8.6 8.6 100.0
Total 2961 100.0 100.0
32
Table (4)
Profile 6: How many employees are at this plant location?
Percent
Less than 100 430 14.5 16.0 16.0
100-249 1211 40.9 45.1 61.1
250-499 572 19.3 21.3 82.5
500-999 266 9.0 9.9 92.4
1,000 or more 205 6.9 7.6 100.0
Total 2684 90.6 100.0
Missing System 277 9.4
Total 2961 100.0
33
Table (5)
Profile 5: How many years has it been since plant start up?
Percent
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
More than 20 years 1912 64.6 65.4 100.0
Total 2925 98.8 100.0
Total 2961 100.0
34
Table (6)
How much progress has the plant made toward achieving world-class manufacturing
status?
Percent
1. No progress 210 7.1 7.2 7.2
2. Some progress 1479 49.9 50.5 57.7
3. Significant
1089 36.8 37.2 94.8
progress
4. Fully achieved 151 5.1 5.2 100.0
Total 2929 98.9 100.0
Total 2961 100.0
35
Table (7)
ANOVA (World-class Manufacturing Status BY Inventory turns)
Sum of Mean
Squares df Square F Sig.

What is the plant's annual total inventory Between Groups 9315.526 3 3105.175 1.369 .251
turn rate? Within Groups 4862537.061 2143 2269.033
Total 4871852.586 2146
What is the plant's annual raw-materials turn Between Groups 14102.715 3 4700.905 .270 .847
rate? Within Groups 34339260.554 1973 17404.592
Total 34353363.269 1976
What is the plant's annual work-in-process Between Groups 410800.050 3 136933.350 .243 .866
(WIP) inventory turn rate? Within Groups 980447617.883 1742 562828.713
Total 980858417.933 1745
What is the plant's annual finished goods Between Groups 77966.079 3 25988.693 1.875 .132
turn rate? Within Groups 25119693.616 1812 13862.966
Total 25197659.695 1815
36
Table (8)
Kruskal Wallis Test (WCM status and time-based performance)
Ranks
How much progress has the plant Chi Degrees Asumymp
made toward achieving world- Mean Square of Significanc
class manufacturing status? N Rank Freedom e
What is the manufacturing cycle time for a No progress 187 1400.61 37.891 3 0.000
typical finished product? (hours) Some progress 1337 1381.77
Significant progress 976 1236.42
Fully achieved 126 1056.90
Total 2626
How has manufacturing cycle time changed No progress 192 1760.83 66.639 3 0.000
over the last three years? Some progress 1396 1401.38
Total 2769
For primary products what is the plant's No progress 185 1326.55 4.406 3 0.221
customer lead-time (order-entry to shipment)? Some progress 1343 1335.67
(days) Significant progress 969 1285.44
Total 2621
How has customer lead-time changed over the No progress 190 1668.63 43.202 3 0.000
past three years? Some progress 1371 1357.13
Total 2704
What is the plant's on-time delivery rate? No progress 185 1114.96 57.064 3 0.000
Some progress 1336 1253.79
Total 2651
a. Kruskal Wallis Test
b. Grouping Variable: Profile 1: How much progress has the plant made toward achieving world-class manufacturing
status?
37
Table (9)
Kruskal Wallis Test (WCM status and time-based performance)
Ranks
How much progress has Chi Degrees Asump
the plant made toward Square of Signific
achieving world-class Mean Freedm ance
manufacturing status? N Rank
How have per-unit manufacturing costs at this No progress 193 1732.27 61.158 3 0.000
plant, excluding purchased materials, changed in Some progress 1384 1375.74
the last three years? Significant progress 1008 1272.61
Total 2719
In the last six months, which one of the following No progress 196 1453.11 9.212 3 0.027
has been the plant's primary cost reduction Some progress 1416 1353.03
initiative? Significant progress 1034 1438.23
Total 2786
How has total production output (unit volume) at No progress 192 1141.87 41.792 3 0.000
this plant changed in the last year? Some progress 1404 1333.39
Total 2757
For this plant what is the approximate dollar value No progress 148 828.31 37.339 3 0.000
of shipments per employee for the most recent Some progress 1042 969.31
fiscal year?
Total 2019
a. Kruskal Wallis Test
b. Grouping Variable: Profile 1: How much progress has the plant made toward achieving world-class manufacturing
status?
38
Biographic Note: Eyad M. Youssef

Dr. Eyad M. Youssef is an Assistant Professor of Marketing and International Business in the department of Marketing. College of
Business of Delta State University of Mississippi. He received a B.s in Chemistry from Norfolk State University, an MBA and Ph.D.
degrees in Business Administration, majoring in Marketing and International Business, from Old Dominion 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.
Mohamed A. Youssef received a B.Com and a pre-MBA degrees in Business Administration from Cairo
University in Egypt, an MBA in Operations Research from Baruch College of the CUNY, an M. Phil in Business,
and a PhD 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, IMDS, International Journal of Corporate Communication and Industrial
Engineering. His published paper have received more than 1860 citations.
Table (1)
ISO 9000 / TQM complementary or Substitute
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
Carlesson and Carlesson ISO 9000 is a step towards TQM
(1996)
Idris et al (1996) ISO 9000 is a logical and practical step toward TQM
Tsiotras and Gotzamani Use ISO 9000 as an entry key to TQM
(1996)
Meegan and Taylor ISO 9000 and TQM should be seen as complementary
(1997)
Terziovsky at el (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
(1998)
Lipovatz et al (1999) ISO 9000 is the basis for achieving continuous quality
improvement
Al-Khalifa and Aspinwal ISO 9000 is only the beginning of a continuous process
(2000) improvement.
Sun (2000) ISO 9000 and TQM are complementary and should be
implemented in an integration with one another.
Source: Summarized from : Escanciaon et al (2001)
Table (2)
Cross tabulation: ISO9000 By TQM for the entire sample
Count
TQM Implementation Total

No Some Extensive
implementation implementation implementation
Group 1: n=442 Group2: n=692 Group3: n=227
No 1361
ISO9000 Synergy Level Zero Synergy Level Zero Synergy Level Zero
Certification Group4: n=279 Group5: n=829 Group6: n=464
Yes 1572
Synergy Level One Synergy Level One Synergy Level Two
Total 721 1521 691 2933**
** Please note that the total sample size is 2961, with 28 missing values
Table (3)
Country in which the Plant operates
Percent
USA 2347 79.3 79.3 79.3
Canada 291 9.8 9.8 89.1
Mexico 69 2.3 2.3 91.4
Saudi Arabia 254 8.6 8.6 100.0
Total 2961 100.0 100.0
Table (4)
Profile 6: How many employees are at this plant location?
Percent
Less than 100 430 14.5 16.0 16.0
100-249 1211 40.9 45.1 61.1
250-499 572 19.3 21.3 82.5
500-999 266 9.0 9.9 92.4
1,000 or more 205 6.9 7.6 100.0
Total 2684 90.6 100.0
Total 2961 100.0
Table (5)
Profile 5: How many years has it been since plant start up?
Percent
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
More than 20 years 1912 64.6 65.4 100.0
Total 2925 98.8 100.0
Total 2961 100.0
Table (6)
How much progress has the plant made toward achieving world-class manufacturing
status?
Percent
1. No progress 210 7.1 7.2 7.2
2. Some progress 1479 49.9 50.5 57.7
3. Significant
1089 36.8 37.2 94.8
progress
4. Fully achieved 151 5.1 5.2 100.0
Total 2929 98.9 100.0
Total 2961 100.0
Figure (1)
The Conceptual Model
H5
The Level of
TQM and ISO
9000 Integration
H3
Operational Performance:
Progress toward • Quality Management
achieving World-Class H4 • Inventory
H2 manufacturing Management
• TB performance
H1
Plant’s Age and

Size
Figure ( 2 )
ANALYSIS STRATEGY
(5.1) Profile of respondents (5.2) Testing the main research hypotheses
TQM /ISO 9000 WORLD Class

H1, 2 synergy and H3 manufacturing
• Country (5.1.1) Operational Status and
• Size of the Plant(5.1.2) Performance Operational
• Age of the Plant (5.1.3) 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 • Inventory Management
(H1,2) • Time-based performance
• Competitiveness
Hint: Numbers in ( ) refers to section number in the text

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operationalized on a continuum that ranges from no implementation at all to extensive

The quality management literature is replete with empirical studies on quality

market competition on organizational performance. They surveyed eighty-nine production and

3. The conceptual Model and Research Hypotheses

INSERT FIGURE (1) JUST ABOUT HERE

H4 Progress towards Achieving world-class manufacturing status will

by competitiveness, inventory management, and time-based

Time-based performance is objectively measured by the following five observed

Manufacturing competitiveness is measured here by the following four observed

any other respondent.

5.1 Profile of respondents

INSERT TABLE (3) JUST ABOUT HERE

INSERT TABLE (5) JUST ABOUT HERE

5.1.4 Progress towards achieving the WCM status

5.2 Testing the main research Hypotheses

5.2.3 Progress towards WCM status and Operational Performance (H4)

Al-khalifa, K. N. and E. M. Aspinwall. 2000. "The development of total quality management in

Burli, Shivakumar; Virupaxi Bagodi, and Basavaraj Kotturshettar 2012, Benchmarking: an

Carlsson, M. and D. Carlsson. 1996. "Experiences of implementing ISO 9000 in Swedish

Ford, Mathew W. 2014 , “Supply Chain management and environmental uncertainty: A

Martinez-Lorente, A. R. and M Martinez-Costa. 2004. “ISO 9000 and TQM: Substitutes or

Martinez-Lorente AR, Dewhurst F, and Gallego-Rodriguea. (2000). Relating TQM, Marketing

quality management and sustainable competitive Advantage: A resource-based view.” Total

York K. M. and C. E. Miree. 2004. “Causation or covariation: an empirical re-examination of the

Plant’s Age and

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

TQM /ISO 9000 WORLD Class

We also tested if there are any

Hint: Numbers in ( ) refers to section number in the text

Study (Year) Main Finding of the study

Source: Summarized from : Escanciaon et al (2001)

TQM Implementation Total

Squares df Square F Sig.

Biographic Note: Eyad M. Youssef

Study (Year) Main Finding of the study

Source: Summarized from : Escanciaon et al (2001)

TQM Implementation Total

Plant’s Age and

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

TQM /ISO 9000 WORLD Class

We also tested if there are any H5 H4

Hint: Numbers in ( ) refers to section number in the text

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