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Adoption of ISO9001 through supply chain in Vietnam : impacts of FDI and product-related environmental regulation

Author

Listed:
  • Iguchi, Hakaru
  • Arimura, Toshi H.
  • Michida, Etsuyo

Abstract

The objective of the present study is to examine the determinants of ISO 9001 certification, focusing on the effect of Product-related Environmental Regulations on Chemicals (PRERCs) and FDI using the answers to several questions in our Vietnam survey conducted from December 2011 to January 2012. Our findings suggest that PRERCs may help with the improvement in quality control of Vietnamese firms. If Vietnamese manufacturing firms with ISO 9001 certification are more likely to adopt ISO 14001, as well as firms in developed countries, our results indicate that the European chemical regulations may assist in the reduction of various environmental impacts in Vietnam. In addition, we found that FDI promotes the adoption of ISO 9001. If FDI firms in Vietnam certify ISO 14001 after the adoption of ISO 9001, as in the case of Malaysia and the developed economies, FDI firms may also be able to improve environmental performance as a result of ISO 14001.

Suggested Citation

  • Iguchi, Hakaru & Arimura, Toshi H. & Michida, Etsuyo, 2015. "Adoption of ISO9001 through supply chain in Vietnam : impacts of FDI and product-related environmental regulation," IDE Discussion Papers 497, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper497
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    References listed on IDEAS

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    1. Arimura, Toshi H. & Hibiki, Akira & Katayama, Hajime, 2008. "Is a voluntary approach an effective environmental policy instrument?: A case for environmental management systems," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 281-295, May.
    2. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    3. Terlaak, Ann & King, Andrew A., 2006. "The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 579-602, August.
    4. Joseph A Clougherty & Michał Grajek, 2008. "The impact of ISO 9000 diffusion on trade and FDI: A new institutional analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 613-633, June.
    5. Oliver Masakure & Spencer Henson & John Cranfield, 2009. "Standards and export performance in developing countries: Evidence from Pakistan," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(3), pages 395-419.
    6. Kanittha Tambunlertchai & Andreas Kontoleon & Madhu Khanna, 2013. "Assessing participation in voluntary environmental programmes in the developing world: the role of FDI and export orientation on ISO14001 adoption in Thailand," Applied Economics, Taylor & Francis Journals, vol. 45(15), pages 2039-2048, May.
    7. Grolleau, Gilles & Mzoughi, Naoufel & Pekovic, Sanja, 2012. "Green not (only) for profit: An empirical examination of the effect of environmental-related standards on employees’ recruitment," Resource and Energy Economics, Elsevier, vol. 34(1), pages 74-92.
    8. John Hudson & Philip Jones, 2003. "International trade in 'quality goods': signalling problems for developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 999-1013.
    9. Arimura, Toshihide & Iguchi, Hakaru & Michida, Etsuyo, 2014. "Product-related environmental regulation and voluntary environmental actions : impacts of RoHS and REACH in Malaysia," IDE Discussion Papers 454, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    Cited by:

    1. Phuong Anh Nguyen, 2015. "Issues and Challenges in the Establishment of Continuous Improvement in Vietnam," International Journal of Business and Social Research, LAR Center Press, vol. 5(10), pages 10-21, Octomber.
    2. Phuong Anh Nguyen, 2015. "Issues and Challenges in the Establishment of Continuous Improvement in Vietnam," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(10), pages 10-21, Octomber.

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    More about this item

    Keywords

    Vietnam; International trade; Environmental protection; Foreign investments; Business enterprises; ISO 9001; FDI; Product-related Environmental Regulation;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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