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Do multiple certifications leverage firm performance? A dynamic approach

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  • Hernandez-Vivanco, Alfonso
  • Domingues, Pedro
  • Sampaio, Paulo
  • Bernardo, Merce
  • Cruz-Cázares, Claudio

Abstract

In a dynamic environment where organizations are continuously exposed to change, being robust, strong and competitive is a major managerial task. The aim of this article is to study the impacts of adopting multiple certifications on firm performance, by considering the dynamics involved in this process. A sample of 247 Portuguese firms that had adopted multiple certifications by 2015 encompassing the ISO 9001, ISO 14001 and OHSAS 18001 standards were studied by means of a longitudinal analysis. Their historical certification records were matched with their performance indicators to create a panel dataset from 2007 to 2015. The research into the causal effects of the certifications on firm performance was based on a panel dynamic approach, namely the system generalized method of moments. The following three combinations show consistent leverage on firm performance: ISO 9001, ISO 9001 + ISO 14001 and ISO 9001 + ISO 14001 + OHSAS 18001. Being ISO 9001 the common factor of these combinations and also the first standard adopted by most firms, results suggest that it might be a relevant driver towards improving firm performance. This research reveals new insights in this field by analyzing a changing environment where firms can be expected to certify dynamically according to the requirements of different standards.

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  • Hernandez-Vivanco, Alfonso & Domingues, Pedro & Sampaio, Paulo & Bernardo, Merce & Cruz-Cázares, Claudio, 2019. "Do multiple certifications leverage firm performance? A dynamic approach," International Journal of Production Economics, Elsevier, vol. 218(C), pages 386-399.
    • Handle: RePEc:eee:proeco:v:218:y:2019:i:c:p:386-399
    DOI: 10.1016/j.ijpe.2019.07.016
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    4. Ferreira, Luís M.F.R. & Cândido, Carlos J.F., 2021. "Factors influencing firm propensity for ISO 9001 withdrawal: Evidence on decertification tendency and antecedents," International Journal of Production Economics, Elsevier, vol. 233(C).
    5. Dominik Zimon & Peter Madzik & Robert Sroufe, 2020. "The Influence of ISO 9001 & ISO 14001 on Sustainable Supply Chain Management in the Textile Industry," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
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