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Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers

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Author Info
David I. Levine () (Haas School of Business, University of California,)
Michael W. Toffel () (Harvard Business School, Technology and Operations Management Unit)

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Abstract

Several studies have examined how the ISO 9001 Quality Management System standard predicts changes in organizational outcomes such as profits. This is the first large-scale study to explore how employee outcomes such as employment, earnings, and health and safety change when employers adopt ISO 9001. We analyzed a matched sample of nearly 1,000 companies in California. ISO 9001 adopters subsequently had far lower organizational death rates than a matched control group of non-adopters. Among surviving employers, ISO adopters had higher growth rates for sales, employment, payroll, and average annual earnings. Injury rates declined slightly for ISO 9001 adopters, although total injury costs did not. These results have implications for organizational theory, managers, and public policy.

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Publisher Info
Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 09-018.

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Length: 45 pages
Date of creation: Aug 2008
Date of revision: Jul 2009
Handle: RePEc:hbs:wpaper:09-018

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Related research
Keywords: ISO 9001; quality management; standards; occupational health and safety; wages; labor; empirical; California;

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References listed on IDEAS
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  1. Levine, David I, 1992. "Can Wage Increases Pay for Themselves? Tests with a Production Function," Economic Journal, Royal Economic Society, vol. 102(414), pages 1102-15, September. [Downloadable!] (restricted)
  2. Barber, Brad M. & Lyon, John D., 1996. "Detecting abnormal operating performance: The empirical power and specification of test statistics," Journal of Financial Economics, Elsevier, vol. 41(3), pages 359-399, July. [Downloadable!] (restricted)
  3. Easton, George S & Jarrell, Sherry L, 1998. "The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation," Journal of Business, University of Chicago Press, vol. 71(2), pages 253-307, April. [Downloadable!] (restricted)
  4. David K. Levine & Aldo Rustichini, 2000. "Introduction," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(2), pages 213-215, April. [Downloadable!] (restricted)
  5. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April. [Downloadable!] (restricted)
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  6. Sharma, Divesh S., 2005. "The association between ISO 9000 certification and financial performance," The International Journal of Accounting, Elsevier, vol. 40(2), pages 151-172. [Downloadable!] (restricted)
  7. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  8. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. David Fairris & Mark Brenner, 2001. "Workplace Transformation and the Rise in Cumulative Trauma Disorders: Is There a Connection?," Journal of Labor Research, Transaction Publishers, vol. 22(1), pages 15-28, January. [Downloadable!] (restricted)
  10. McGuire, Stephen J. & Dilts, David M., 2008. "The financial impact of standard stringency: An event study of successive generations of the ISO 9000 standard," International Journal of Production Economics, Elsevier, vol. 113(1), pages 3-22, May. [Downloadable!] (restricted)
  11. Paul Adler & Barbara Goldoftas & David I. Levine, 1997. "Ergonomics, employee involvement, and the Toyota production system: A case study of NUMMI's 1993 model introduction," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 50(3), pages 416-437, April.
  12. Mark D Brenner & David Fairris & John Ruser, 2002. "'Flexible' Work Practices and Occupational Safety and Health: Exploring the Relationship Between Cumulative Trauma Disorders and Workplace Transformation," Working Papers wp30, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
  13. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August. [Downloadable!] (restricted)
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